A Study On The Impact of Work Environmen PDF

A STUDY ON THE IMPACT OF WORK ENVIRONMENT ON EMPLOYEE
PERFORMANCE
Ms. BINDU ANTO OLLUKKARAN

Assistant Professor, Westfort Higher Education Trust,
Thrissur
E – Mail: [email protected]
DR. RUPA GUNASEELAN

Associate Professor, School of Management and Entrepreneurship Development,
Bharathiar University
E- Mail: [email protected]
ABSTRACT
A work environment can be identified as the place that one works, which means the
milieus around a person. It is the social and professional environment in which a
person is supposed to interact with a number of people. The work environment has a
significant impact upon employee performance and productivity. This study aims to
provide the vital information regarding the work environment factors which have an
influence on employee performance. Creating a work environment in which employees
are productive is essential to increase profits for the organization and businesses as
well. In short the work place becomes an integral part of the work itself. Businesses
must step outside their traditional roles to create a work environment where employees
enjoy what they do, have pride in what they do, can reach their potential. The
respondents surveyed were the employees of the manufacturing companies. Total
number of employees surveyed is 100. The study shows how the work environment in
this organization is affecting the employee performance.
Key Words
Work Environment, Social, Professional, Employee Performance, Participative

Management, Productivity, Interpersonal Relationship, Safety and Security, Rewards,
Training and Development, Employee Welfare, Monetary Benefits, Supervision,
Advancement.
A Study on The Impact of Work Environment on Employee Performance
- Ms. Bindu Anto Ollukkaran and Dr. Rupa Gunaseelan
INTRODUCTION development of Organization plans

such as the allocation of responsibilities
A work environment can be identified at all levels of the organization,
as the place that one works, which definition of job descriptions and the
means the milieus around a person. It is degree of access to the management and
the social and professional environment administrative support needed to
in which a person is supposed to complete their tasks; Working patterns,
interact with a number of people. The shift-working, break times, absence or
work environment has a significant holiday cover; and Health and safety
impact upon employee performance and policies, including the provision of
productivity. By work environment we training, development of safe working
mean those processes, systems, practices and the adequate supply of
structures, tools or conditions in the protective clothing and equipment. In
workplace that impact favorably or today’s competitive business
unfavorably individual performance. environment, management cannot
The work environment also includes afford to waste the potential of their
policies, rules, culture, resources, workforce. The key factors in work
working relationships, work location, place environment impact greatly on
and internal and external environmental employee’s level of motivation and
factors, all of which influence the ways their performance. The workplace
those employees perform their job environment set in place impacts
functions. employee morale, productivity and
performance– both positive and
It is the quality of the employee’s negative. And if the circumstances are
workplace environment that most not good it will be affecting the
impacts on the level of employee’s performance of the employees in the
motivation and subsequent form of delay in work completion,
performance. How well they engage frustration, affect on personal growth
with the organization, especially with etc.
their immediate environment,
influences to a great extent their error In an effort to motivate employees,
rate, level of innovation and organizations have implemented
collaboration with other employees, performance based pay, practices to
absenteeism and, ultimately, how long help balance both work and family and
they stay in the job. various forms of information sharing.
Management’s new challenge is to
The environment that people are create a work environment that attracts
required to work in can have a keeps and motivates its workforce.
significant impact on their ability to According Patterson the development
undertake the tasks that they have been and validation of a multidimensional
asked to do. This can affect measure of organizational climate, the
productivity and employee health and Organizational Climate Measure
well-being. The key factors fall into (OCM), based upon Quinn and
two categories, those that are driven by Rohrbaugh's Competing Values model.
procedures, protocols and management The Competing Values model,
requirements and the factors that arise developed in series of articles and
from premises, office or factory design. studies by Quinn and colleagues
Management driven factors include the proposes that organizational
Namex International Journal of Management Research 71 Vol. 2, Issue No. 2, July – December 2012.
effectiveness criteria in the literature STATEMENT OF THE PROBLEM

can best be understood when organized
along fundamental dimensions- The work environment has a significant
flexibility versus control and internal impact upon employee performance and
versus external orientation. In the study productivity. Work environment means
of Parker, meta-analytic procedures those processes, systems, structures,
were used to examine the relationships tools or conditions in the workplace that
between individual-level impact favorably or unfavorably
(psychological) climate perceptions and individual performance. The work
work outcomes such as employee environment also includes policies,
attitudes, psychological well-being, rules, culture, resources, working
motivation, and performance. Review relationships, work location, and
of the literature generated 121 internal and external environmental
independent samples in which climate factors, all of which influence the ways
perceptions were measured and that employee perform their job
analyzed at the individual level. These functions.
studies document considerable
confusion regarding the constructs of It is widely accepted that the work
psychological climate, organizational environment has an impact - positive or
climate, and organizational culture and negative - on employee performance.
reveal a need for researchers to use The work environment strongly
terminology that is consistent with their influences the extent to which
level of measurement, theory, and employees are engaged in their work
analysis. The meta-analytic findings and committed to the organization.
indicate that psychological climate, Disengaged workers produce mediocre
operationalized as individuals' results; highly engaged workers
perceptions of their work environment, produce extraordinary results. So it is
does have significant relationships with necessary to study the impact of the
individuals' work attitudes, motivation, work environment in an organization on
and performance. Structural equation the performance of its employees.
modeling analyses of the meta-analytic
correlation matrix indicated that the OBJECTIVES OF THE STUDY
relationships of psychological climate
with employee motivation and To assess the impact of work
performance are fully mediated by environment on employee performance.
employees' work attitudes. Despite the To identify the factors influencing the
number of published individual-level employee performance.
climate studies that we found, there is a
need for more research using RESEARCH METHODOLOGY
standardized measures so as to enable
analyses of the organizational and A research design is a conceptual
contextual factors that might moderate structure within which the research
the effects of psychological climate would be conducted. The research
perceptions. Finally, we argue for a design adopted here is descriptive
molar theory of psychological climate research. The major purpose of the
that is rooted in the psychological descriptive research is description of the
processes by which individuals make state of affairs as it exists; usually
meaning or their work experiences. includes surveys and fact-finding
enquiries. The main goal of this type of
research is to describe the data and analysis refers to a special kind of ratio
characteristics about what is being in making comparison between two or
studied. The study was conducted more data and to describe the relation
among employees in manufacturing between the data. Percentage can also
sector. Sampling is that part of be used to compare relative items, the
statistical practice concerned with the distribution of two or more series of
selection of an unbiased or random data.
subset of individual observations within
a population of individuals intended to VARIABLES USED FOR THE
yield some knowledge about the STUDY
population of concern. The sampling
technique used here is Random A concept which can take different
sampling. The sample size taken for the quantitative values is called variable. It
study is 100. Collection of information can be quantitative or qualitative. This
is called as data. Data is of two types. research was studied keeping the
Primary data are those which are dependent variable as employee
collected afresh and for the first time, performance. Then independent
and thus happen to be original in variables were analyzed based on how
character. The questionnaire was found it affects the climate variable.
to be the suitable research instrument to
collect the primary data from the DEPENDENT VARIABLE
employees. The rating scale used is 5
point likert scale. The sources of A dependent variable is a variable that
secondary data are books, magazines, depends or is a consequence of another
journals, news papers and other variable. In this research the dependent
websites. The percentages analysis is variable is employee performance.
used for the study. Simple percentage
DEFINITION OF INDEPENDENT VARIABLES
INTERPERSONAL An interpersonal relationship is the nature of interaction that

RELATIONSHIPS occurs between two or more people.
Participative management, however, involves more than
PARTICIPATIVE allowing employees to take part in making decisions. It also
MANAGEMENT involves management treating the ideas and suggestions of
employees with consideration and respect
The purpose of standardization or formalization is to make a
FORMALIZATION person in an organization independent, whereby the interaction
AND between the individuals in the organization is minimum. The
STANDARDIZATION people work on the basis of rules, procedures, systems,
guidelines and policies
Training and development is the field which is concerned with
TRAINING AND
organizational activity aimed at bettering the performance of
DEVELOPMENT
individuals and groups in organizational settings.
Direct compensation refers to monetary benefits offered and
MONETARY
provided to employees in return of the services they provide to
BENEFITS
the organization.
The state of having good sense and sound judgment. This
OBJECTIVITY AND
means Judgment based on observable phenomena and
RATIONALITY
uninfluenced by emotions or personal prejudices
The act of advancing, or the state of being advanced;

SCOPE FOR
progression; improvement; furtherance; promotion to a higher
ADVANCEMENT
place or dignity; as, the advancement of learning.
Supervision is an intervention that is provided by a senior
SUPERVISION member of a profession to a junior member or members of that
same profession.
Welfare includes anything that is done for the comfort and
EMPLOYEE
improvement of employees and is provided over and above the
WELFARE
wages.
SAFETY AND The condition of being protected from or unlikely to cause
SECURITY danger, risk, or injury
DATA ANALYSIS AND INTEPRETATION
CHART No. 1. INTERPERSONAL RELATIONSHIP
60.0%
Percent
40.0%
61.0%
20.0%
24.0%
12.0%
0.0% 3.0%
STRONGLY DISAGREE NEUTRAL AGREE
DISAGREE
Q1
INTEPRETATION
The above table shows the responses of to the above statement. There is no
the employees towards the statement response for ‘Strongly agree’. Since
that the employees in the organization most of the employees are agreeing
are friendly. Out of the 100 respondents with the statement we can conclude that
61% agree, 24% have neutral opinion, there is good interpersonal relationship
12% disagree and 3% strongly disagree in the organization.
CHART No. 2. IMPACT OF INTERNPERSONAL RELATIONSHIP ON

EMPLOYEE PERFROMANCE
50.0%
40.0%
Percent
30.0%
43.0%
20.0%
33.0%
10.0%
12.0%
6.0% 6.0%
0.0%
STRONGLY DISAGREE NEUTRAL AGREE STRONGLY
DISAGREE AGREE
Q2
INTEPRETATION:
The above table shows the responses of to the above statement. There is no
the employees towards the statement response for ‘Strongly agree’. Since
that the employees in the organization most of the employees are agreeing
are friendly. Out of the 100 respondents with the statement we can conclude that
61% agree, 24% have neutral opinion, there is good interpersonal relationship
12% disagree and 3% strongly disagree in the organization.
CHART NO. 3 - PARTICIPATIVE MANAGEMENT

40.0%
30.0%
Percent
20.0%
33.0%
25.0%
10.0% 21.0% 21.0%
0.0%
DISAGREE
Interpersonal
Q3 Relationship
INTEPRETATION
The above table shows the responses of 21% disagree and 21% ‘Strongly
the employees towards the Participative disagree.’ There is no response for
management. Out of 100 respondents ‘strongly agree’.
25% agree, 33% have a neutral opinion,
CHART No. 4. IMPACT OF CONSULTATIVE APPROACH ON EMPLOYEE

PERFORMANCE
40.0%
30.0%
Percent
20.0% 40.0%
28.0%
10.0%
17.0%
15.0%
0.0%
DISAGREE
Interpersonal
Namex International Journal of Management Research 75Relationship
Q4 Vol. 2, Issue No. 2, July – December 2012.
INTEPRETATION:
The above table shows the responses of 28% agree, 40% have a neutral opinion,
the employees towards the impact of 17% disagree and 15% ‘Strongly
consultative approach on employee disagree.’ There is no response for
performance. Out of 100 respondents ‘strongly agree’.
CHART No. 5. FORMALIZATION AND STANDARDIZATION

50.0%
40.0%
Percent
30.0%
48.0%
20.0%
27.0%
10.0%
17.0%
6.0%
0.0% 2.0%
DISAGREE AGREE
Interpersonal
Q5 Relationship
INTEPRETATION:
The above table shows the responses of neutral opinion, 27% disagree and 6%
the employees towards the statement ‘Strongly disagree.’
that the rules and regulations in the
organization are followed without any
change. Out of 100 respondents 2%
strongly agree, 17% agree, 48% have
CHART No. 6 – IMPACT OF FORMALIZATION AND STANDARDIZATION

ON EMPLOYEE PERFORMANCE
40.0%
30.0%
Percent
20.0%
37.0%
29.0%
10.0% 20.0%
12.0%
2.0%
0.0%
DISAGREE AGREE
Interpersonal
Q6 Relationship
INTEPRETATION:
The above table shows the responses of performance. Out of 100 respondents
the employees towards the statement 2% strongly agree, 29% agree, 37%
that there is an impact of formalization have neutral opinion, 20% disagree and
and standardization on employee 12% ‘Strongly disagree.’
CHART No. 7 – TRAINING AND DEVELOPMENT

50.0%
40.0%
Percent
30.0%
44.0%
20.0%
26.0% 24.0%
10.0%
6.0%
0.0%
DISAGREE
Interpersonal
Q7 Relationship
INTEPRETATION:
The above table shows the responses of disagree.’ There is no response for
the employees towards the statement of ‘strongly agree’. Since most of the
training and development in the employees are disagreeing with the
organization. Out of 100 respondents, statement it is possible to conclude that
24% agree, 26% have neutral opinion, the training facilities are less in this
44% disagree and 6% ‘Strongly organization.
CHART No. 8 – IMPACT OF TRAINING FACILITIES ON EMPLOYEE

PERFORMANCE
50.0%
40.0%
Percent
30.0%
20.0% 42.0%
29.0%
24.0%
10.0%
3.0% 2.0%
0.0%
DISAGREE AGREE
Interpersonal
Q8 Relationship
INTEPRETATION:
The above table shows the responses of agree, 29% have neutral opinion, 24%
the employees towards the statement of disagree and 3% ‘Strongly disagree.’
impact of training facilities on Most of the employees agree that if
employee performance. Out of 100 training facilities are available it will
respondents, 2% strongly agree, 42% improve their current performance.
CHART No. 9 – MONERARY BENEFITS

50.0%
40.0%
Percent
30.0%
45.0%
20.0%
33.0%
10.0%
15.0%
7.0%
0.0%
DISAGREE
Interpersonal
Q9 Relationship
INTEPRETATION
strongly disagree. There is no response
The above table shows the responses of for ‘strongly agree’. The monetary
the employees towards the statement of benefits are not attractive in this
monetary benefits. Out of 100 organization as most of the employees
respondents, 7% agree, 33% have are disagreeing with the statement.
neutral opinion, 45% disagree and 15%
CHART No. 10. – IMPACT OF CURRENT PAY SYSTEM ON EMPLOYEE

PERFORMANCE
50.0%
40.0%
Percent
30.0%
20.0% 42.0%
32.0%
10.0%
18.0%
6.0%
0.0% 2.0%
DISAGREE AGREE
Interpersonal
Q10Relationship
INTEPRETATION
agree, 32% have neutral opinion, 42%
The above table shows the responses of disagree and 18% ‘Strongly disagree.’
the employees towards the statement of Since the current pay system is not
impact of current pay system on attractive there is no positive effect on
employee performance. Out of 100 employee performance.
respondents, 2% strongly agree, 6%
CHART No. 11 - OBJECTIVITY AND RATIONALITY

40.0%
30.0%
Percent
20.0%
38.0%
32.0%
10.0% 19.0%
9.0%
2.0%
0.0%
DISAGREE AGREE
Interpersonal
Q11Relationship
INTEPRETATION
The above table shows the responses of 2% strongly agree, 19% agree, 38%
the employees towards the statement of have neutral opinion, 32% disagree and
objectivity and Rationality in the 9% ‘Strongly disagree.’
organization. Out of 100 respondents,
CHART No. 12 – IMPACT OF OBJECTIVITY AND RATIONALITY ON

EMPLOYEE PERFROANCE
60.0%
50.0%
40.0%
Percent
30.0%
51.0%
20.0%
24.0%
10.0% 19.0%
6.0%
0.0%
STRONGLY DISAGREE DISAGREE NEUTRAL AGREE
Interpersonal
Q12 Relationship
INTEPRETATION:
The above table shows the responses of respondents 24% agree, 51% have
the employees towards the statement of neutral opinion, 19% disagree and 6%
impact of objectivity and Rationality on strongly disagree. There is no response
employee performance. Out of 100 for ‘strongly agree’.
CHART No. 13 – SCOPE FOR ADVANCEMENT

60.0%
50.0%
40.0%
Percent
30.0%
57.0%
20.0%
32.0%
10.0%
8.0%
3.0%
0.0%
DISAGREE
Interpersonal
Q13Relationship
INTEPRETATION
57% disagree and 3% ‘Strongly
The above table shows the responses of disagree.’ There is no response for
the employees towards the statement of ‘strongly agree’. The response of the
scope for advancement in the employees towards the statement shows
organization. Out of 100 respondents that there are not much career
32% agree, 8% have neutral opinion, opportunities in this organization.
CHART No. 14 – IMPACT OF PROMOTION OPPORTUNITIES ON

EMPLOYEE PERFORMANCE
60.0%
50.0%
40.0%
Percent
30.0%
57.0%
20.0%
10.0% 20.0%
12.0%
9.0%
0.0% Impact of Promotion Opportunities
STRONGLY DISAGREE NEUTRAL
2.0%
on
AGREE STRONGLY
DISAGREE AGREE
employee
Interpersonal
performance
Q14Relationship
INTEPRETATION
The above table shows the responses of disagree and 9% ‘Strongly disagree.’
the employees towards the statement of As per the response of employees
impact of promotion opportunities on promotion opportunities are not open to
employee performance. Out of 100 everybody in the organization, so that
respondents, 2% strongly agree, 20% there is no much positive impact on
agree, 12% have neutral opinion, 57% employee performance.
CHART No. 15 - SUPERVISION

50.0%
40.0%
Percent
30.0%
45.0%
20.0%
30.0%
10.0% 19.0%
6.0% Supervision
0.0%
DISAGREE
Interpersonal
Q15Relationship
INTEPRETATION
strongly disagree. There is no response
The above table shows the responses of for ‘strongly agree’.
the employees towards the statement of
Supervision in the organization. Out of
100 respondents 30% agree, 45% have
neutral opinion, 19% disagree and 6%
CHART No. 16 – IMPACT OF SUPERVISION ON EMPLOYEE

PERFORMANCE
40.0%
30.0%
Percent
20.0% 40.0%
36.0%
10.0%
18.0%
6.0%
0.0%
STRONGLY NEUTRAL AGREE STRONGLY
DISAGREE AGREE
Interpersonal
Q16Relationship
INTEPRETATION
The above table shows the responses of 18% strongly agree, 36% agree, 40%
the employees towards the statement of have neutral opinion, and 6% strongly
impact of Supervision on employee disagree. There is no response for
performance. Out of 100 respondents ‘Disagree’.
CHART No. 17 - EMPLOYEE WELFARE

40.0%
30.0%
Percent
20.0%
37.0%
34.0%
27.0%
10.0%
2.0%
0.0%
DISAGREE NEUTRAL AGREE STRONGLY AGREE
Interpersonal
Q17 Relationship
INTEPRETATION
The above table shows the responses of opinion, and 27% Disagree. There is no
the employees towards the statement of response for ‘Strongly Disagree’. Since
employee welfare in the organization. most of the employees are agreeing
Out of 100 respondents 2% strongly with the statement, the organization is
agree, 37% agree, 34% have neutral providing good welfare facilities.
CHART No. 18 – IMPACT OF REWARDS AND RECOGNITION ON

EMPLOYEE PERFORMANCE
50.0%
40.0%
Percent
30.0%
45.0%
20.0%
28.0%
10.0%
18.0%
9.0%
0.0%
DISAGREE
Interpersonal
Q18Relationship
INTEPRETATION employee performance. Out of 100

respondents, 18% agree, 45% have
The above table shows the responses of neutral opinion, 28% Disagree and 9%
the employees towards the statement of strongly disagree. There is no response
impact of rewards and recognition on for ‘Strongly agree’.
.
CHART N). 19 – SAFETY AND SECURITY

40.0%
30.0%
Percent
20.0% 40.0%
35.0%
10.0%
16.0%
9.0%
0.0%
DISAGREE
Interpersonal
Q19Relationship
INTEPRETATION
The above table shows the responses of the employees towards the statement of safety
and security in the organization. Out of 100 respondents, 40% agree, 35% have neutral
opinion, 16% Disagree and 9% strongly disagree. There is no response for ‘Strongly
agree’. From this table it is understood that most of the employees are agreeing with the
safe working conditions provided by the organization.
CHART No. 20 – IMPACT OF JOB SECURITY ON EMPLOYEE
PERFORMANCE
50.0%
40.0%
Percent
30.0%
48.0%
20.0%
10.0% 19.0% 19.0%

12.0%
0.0% 2.0%
DISAGREE AGREE
Interpersonal
Q20Relationship
INTEPRETATION management has to look into the

grievances and complaints of the
The above table shows the responses of employees on observable phenomena
the employees towards the statement of which are influenced by emotions or
impact of job security on employee personal prejudices. Promotions have to
performance. Out of 100 respondents, be given according to their experiences
2% strongly agree, 48% agree, 19% and performance.
have neutral opinion, 19% Disagree and
12% strongly disagree. As per the CONCLUSIONS
statement most of the employees are
agreeing that there is job security in the The workplace environment impacts
organization. employee morale, productivity and
engagement - both positively and
FINDINGS AND SUGGESTIONS negatively. The work place
environment in a majority of industry is
The employees are agreeing that the unsafe and unhealthy. These includes
employees in the organization are poorly designed workstations,
friendly. This means that there is good unsuitable furniture, lack of ventilation,
interpersonal relationship exist in the inappropriate lighting, excessive noise,
organization. The employees are insufficient safety measures in fire
disagreeing that there is scope for emergencies and lack of personal
advancement in the organization. This protective equipment. People working
means that, since there is no adequate in such environment are prone to
promotion opportunity in the occupational disease and it impacts on
organization it has less impact on employee’s performance. Thus
employee performance. Moreover productivity is decreased due to the
Training facilities, monetary package, workplace environment. It is the quality
impact of rewards and recognitions, of the employee’s workplace
safe working conditions, job security environment that most impacts on their
will influence the employee level of motivation and subsequent
performance. In order to improve the performance. How well they engage
performance management can consult with the organization, especially with
the employees before decision making their immediate environment,
to seek their suggestions. In order to influences to a great extent their error
rectify that the management has to rate, level of innovation and
encourage their employees to collaboration with other employees,
experiment new methods and try out absenteeism and ultimately, how long
creative ideas which will results a they stay in the job.
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A STUDY ON THE IMPACT OF WORK ENVIRONMENT ON EMPLOYEE

Ms. BINDU ANTO OLLUKKARAN

DR. RUPA GUNASEELAN

Work Environment, Social, Professional, Employee Performance, Participative

INTRODUCTION development of Organization plans

effectiveness criteria in the literature STATEMENT OF THE PROBLEM

DEFINITION OF INDEPENDENT VARIABLES

INTERPERSONAL An interpersonal relationship is the nature of interaction that

The act of advancing, or the state of being advanced;

DATA ANALYSIS AND INTEPRETATION

CHART No. 1. INTERPERSONAL RELATIONSHIP

CHART No. 2. IMPACT OF INTERNPERSONAL RELATIONSHIP ON

CHART NO. 3 - PARTICIPATIVE MANAGEMENT

CHART No. 4. IMPACT OF CONSULTATIVE APPROACH ON EMPLOYEE

CHART No. 5. FORMALIZATION AND STANDARDIZATION

CHART No. 6 – IMPACT OF FORMALIZATION AND STANDARDIZATION

CHART No. 7 – TRAINING AND DEVELOPMENT

CHART No. 8 – IMPACT OF TRAINING FACILITIES ON EMPLOYEE

CHART No. 9 – MONERARY BENEFITS

CHART No. 10. – IMPACT OF CURRENT PAY SYSTEM ON EMPLOYEE

CHART No. 11 - OBJECTIVITY AND RATIONALITY

CHART No. 12 – IMPACT OF OBJECTIVITY AND RATIONALITY ON

CHART No. 13 – SCOPE FOR ADVANCEMENT

CHART No. 14 – IMPACT OF PROMOTION OPPORTUNITIES ON

CHART No. 15 - SUPERVISION

CHART No. 16 – IMPACT OF SUPERVISION ON EMPLOYEE

CHART No. 17 - EMPLOYEE WELFARE

CHART No. 18 – IMPACT OF REWARDS AND RECOGNITION ON

INTEPRETATION employee performance. Out of 100

CHART N). 19 – SAFETY AND SECURITY

10.0% 19.0% 19.0%

INTEPRETATION management has to look into the

Bank Managers in Haryana”, during Early Employment’,

Schieman, Ried, 2008, “Job Authority Joseph, J. and S. P. Deshpande: 1997,

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