The Effect of Work Environment On Employee Productivity
The Effect of Work Environment On Employee Productivity
The Effect of Work Environment On Employee Productivity
Lauban MPA-1C
I. Introduction
A. Supervisor support
E. Adequate workload
III. Conclusion
IV. Recommendation
V. References
Abstract
faced by employees are related to working environment. The level of productivity can be
basic objective of this study is to measure the effect of working environment on productivity
of employees. The organization like banks and insurance companies is selected for
conducting this research study. A closed ended questionnaire was developed to get feedback
from target audience and different statistical methods were used to derive results from the
collected data. It was observed that the factors like supervisor support, relation with co-
workers, training and development, attractive and fast incentives and recognition plans,
adequate work load at work place are helpful in developing a working environment that has
I. Introduction
Environment literally means surroundings and all those things that impact human
being during the life time are collectively known as environment. A working environment is
the environment where people work together for achieving organization objectives. It means
systems, processes, structures and tools and all those things which interact with employees
and affect in positive or negative ways on employees performance. It can also be defined as
the location where a task is completed. When studying place of employment, the work
involves other factors relating to the place of employment such as the quality of the air, noise
level and additional perks and benefits of employment such as having Muslim Prayer Room,
considered dynamic sector both for the employees and employers as well. Now performing
job in banks and insurance companies are becoming challenging. A banking job is considered
a job full of stress. A lot of mental exercise is involved while working in a bank. Moreover
most of the people perform their jobs in banks and insurance companies by sitting in front of
computer terminals. The organizations are now taking measures to convert computer
monitors in LCDs and by adopting ergonomic design in surroundings of the work place for
human comfort. Due to diversification of scope and increase in range of products in banks
and insurance companies, the challenges are increasing in these professions. So in this
situation conducive working environment plays a pivotal role in keeping employees cool and
contented. That is the reason apparent office design and working environment is developed in
such a way that motivates employees to put their best efforts to generate optimum
productivity. As banking sector and insurance companies are categorized among the services
effectiveness, and core competencies for attracting and retaining potential customers and for
rendering quality of services to the customers. So for this reason direct and indirect factors
related to job satisfaction are given great importance so that the employees are able to put
on their job properly. In describing relation between HRD climate and performance Mohanty,
Susmitaparija and Ghansyamsahu (2012) found that a positive relation exists between HRD
climate and employee performance and any change in working climate impacts on
performance. Similarly working environment also impacts on job satisfaction as studied by
Bakotic and Babic (2013) that employees prefer to work in working environment that is less
risky. Similarly office design also impacts on performance environmental factors are source
of motivation by employees as pointed out by Amina and Shehla (2009). Mokaya et al.
(2013) found that factors like working conditions, remuneration and promotions play
important role for employees’ level of job satisfaction. Ollukkaran and Gunaseelan (2003)
found that how well employees engage with their working environment, it will have positive
impact on employees’ performance level. Smrita et al. (2010) found that the development of
good culture in the organization affects employees’ level of motivation. Mcguire and Mclaren
(2007) found that a working environment has a strong impact on employee’s well-being and
develops interaction, collaboration and innovation and increase job satisfaction. In studying
the impact of indoor environment, Roelofsen (2007) found that indoor environment has great
impact on job performance and level of performance can be increased from 5 to 15 percent
because of improving working conditions. Work place level also impacts on employees stress
as according to Vischer (2006) that a good working environment will lead to better fit
between work space and employees and results in improving behavior and stress related
according to Berg (1999) job and overall working environment has substantial effect on
worker’s views about companies to help balancing work and family life. In describing factors
leadership coherence, transparency develop a good working environment and a good working
environment leads to increase organization productivity.Yasin Sheikh Ali et al. (2013) found
that the productivity of employees will increase by keeping working conditions and working
environment up to certain threshold level and subsequently will decrease if work load will
increase from above certain threshold level .Haynes(2008) found that the behavior
components of working environment have more impact than the physical components of
working environment and in the environment where level of interaction is high, supports
creativity and transfer of transactional knowledge. Sehgal (1995) found that office design
play vital role in increasing employees’ productivity level. It has been observed by the
scholars that the work place environment contributes to 24% in job satisfaction. It increases
through developing good working environment. Arokiasamy (2013) found that the factors
like compensation, rewards, job security and working environment increase level of
commitment and sense of belonging with the organization. Noah and Steve 2012) found that
Training and
Development
Good Relation Incentives and
with Recognition
Coworkers Plans
The figure indicated the impact of factors that were selected to represent working
with job knowledge. It also means the extent of value given by supervisor to employee
Good Relations with coworkers: Relation with coworkers includes relation with employees
who are at the same hierarchical level and have no authority over one another.
Training and development: Training means the planned and systematic modification of
behavior through learning events, activities and programs which result in the participants
achieving the levels of knowledge, skills, competencies and abilities to carry out their work
effectively.
Attractive, fast incentive and recognition plan: Monetary and non-monetary benefits plans
Adequate work load: It is intensity of work assignment or the amount of work performed by
the employees.
From a result that was observed is that Supervisor Support helpful in developing a
working environment that leads to increase in employees’ productivity. The results are in line
with Leblebici (2012) who argued that the supervisor support is helpful in increasing level of
productivity of the employees. Good relations with coworkers were helpful in developing an
environment that increased employees productivity The results are also proved from
Ollukkaran and Gunaseelan (2012), who pointed out that good relations with coworkers
a working environment that will improve employees’ productivity. Same results indicated by
Ollukkaran and Gunaseelan (2012), who proved that training and development is helpful in
increasing employees’ performance in the study of “Impact of Working environment on
Employee Performance”. Similarly good incentives, rewards and recognition plans are also
employees productivity as endorsed. The results are also validated by Condly et.al (2003)
who found that incentives plan can significantly increase performance when they are
carefully implemented. We have also found that adequate work was helpful in increasing
level of productivity in the organization. Similar results were described by Ali et.al (2013),
who explained that positive relationship existed between employees’ productivity and work
load in presence of good working conditions. The working environment also impact on
employees’ level of productivity. The results are in line with Ajala (2012), who argued that a
organization.
III. Conclusion
From the above analysis we have reached the conclusion that working environment is
helpful increasing employees’ level of productivity. Factors like supervisor support, good
relation with co-workers, training and development, attractive and fast incentives and
recognition plans and adequate work load are helpful in developing a working environment
that has positive impact on employees’ level of productivity in the organization. The results
also support our proposed model that was developed for conducting research study in banks
and Insurance Companies in multiple cities of Southern Punjab in Pakistan. The results also
maintained.
III. a. Practical Implications
As the employees play important role in the progress of banks and insurance
companies and a lot of time and resources require to train and retain the employees and to
crucial issue faced by banks and insurance companies. The study has highlighted the
importance of supervisor support, good relation with coworkers, training and development,
incentive and recognition plans and adequate workload at the work place. The findings
IV. Recommendations
3. The management must develop a win- win approach in the organization and try to develop
4. The organizations must initiate continuous training programs for line managers on
5. Efforts must be made to keep employees always motivated. For this reason organizations
must offer good incentives and recognition plans to achieve organization’s goals.
6. There should be strong job rotation policy implemented specially in the banks to enrich
8. The organizations must offer good benefits plans for low level employees to keep them
contented.
9. The organizations must encourage and arrange daily physical exercise facilities for
10. The organizations must regularly review the salaries and wage structure of the employees
and ensure that they are commensurate with the skills and experiences of the employees and
11. The organizations must implement strong internal controls to save organizations from
12. The organizations must develop strong job security plans to enhance employees
13. The organization must also get feedback from the employees to find out what kind of
ways can be adopted to get them motivated. This will also give them a sense of feelings that
14. The organizations must open ways of communications between management and
employees. This will help organizations to generate suggestions that will help in improving
15. The organizations must offer counseling to resolve domestic and job related issues.
16. The organizations must encourage employees to develop new methods and experiment
organization goals.
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