CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
Working environment plays an
important role towards the employees ‘performance. Working environment is
argued to impact immensely on employees’ performance either towards negative or
the positive outcomes (Chandrasekar, 2001). In the world, there are
international organizations who debate the rights of employee. Most people
spend fifty percent of their lives within indoor environments, which greatly
influence their mental status, actions, abilities and performance (Dorgan,
1994). Better outcomes and increased productivity is assumed to be the result
of better workplace environment. Better physical environment of office will boost
the employees and ultimately improve their productivity. Various literature pertains
to the study of multiple offices and office buildings indicated that the
factors such as dissatisfaction, cluttered workplaces and the physical
environment are playing a major role in the loss of employees’ productivity
(Carnevale, 1992; Clements-Croome, 1997). In the 1990’s, the factors of work
environment had changed due to the changes in several factors such as the
social environment, information technology and the flexible ways of organizing
work processes (Hasun & Makhbul, 2005). When employees are physically and
emotionally fit will have the desire to work and their performance outcomes
shall be increased. Moreover, a proper workplace environment helps in reducing
the number of absenteeism and thus can increase the employees’ performance
which leads to increased productivity at the workplace (Boles et al.,2004). As the Economic and Social
Council reported in 2007, global economic growth is increasingly failing to
create the kinds of new and better jobs that can lead to a reduction in
poverty. Despite high and sustained economic growth in many developing
countries, unemployment is rising, a large proportion of the labour force is
working below poverty level wages, and the majority of non-agricultural
employment is situated in the informal economy. It is of little surprise that
in recent years there has been a shift of focus from a singular interest in
economic growth to an enlarged concern with improving the quality of work.
Governments from across Africa have forcefully called for action to overcome
these challenges. The African Union Extraordinary Summit on Employment and
Poverty Alleviation in Africa (Ouagadougou, 2004) overwhelmingly endorsed the
ILO’s Decent Work Agenda with an emphasis on the creation of quality jobs. The
Government of the United Republic of Tanzania supports this Pan-African call
for the integration of employment growth and improved quality of work, as
reflected in its National Strategy for Growth and Reduction of Poverty
2005–2010 and its National Employment Policy of 2008.
1.2 STATEMENT
OF THE PROBLEM
Noble (2009) states that more
attention should be paid in identifying and dealing with working environment
because when employee have negative perception to their environment they
sometimes suffer from chronic stress. Opperman, (2002) stated that, working
environment means those processes, systems, structures, tools or conditions in
the workplace that impact favorably or unfavorably individual performance. The
working environment also includes policies, rules, culture, resources, working
relationships, work location, internal and external environmental factors, all
of which influence the ways that employee perform their job functions.
This study is designed to examine the
impact of working environment on employee’s Setraco Nigeria Ltd. Uturu Quarry
Site.
Through
this study the employer will get to know how its work environment impacts
greatly on the employee’s level of motivation and performance. A well designed
office signals the values and objectives of the organization and the use of
design in office interior communicates an organization values and identity.
Office design therefore should be one of the factors in affecting employee’s
productivity. Employee’s morale is often interrelated when it comes to productivity
in the work environment.
1.3 OBJECTIVES
OF THE STUDY
The
study will investigate whether perceived promotional opportunities will make
employees stay with the company and whether money is the main motivating
factor. Furthermore, the following objectives will also be given attention:
1. To
highlight some internal factors that impact on productivity.
2. To
ascertain the extent of effect of work environment on employee performance.
3. To
highlight what motivates employee in the organization
4. To
identify better means of inducing higher employee productivity to enhance job
satisfaction.
5.
To
identify challenges associated with provision of good working environment for
Setraco staff.
1.4 RESEARCH
QUESTIONS
1.
What
are the major factors that mainly keep employees in the firm?
2.
What
are the internal factors that impact on employees’ productivity?
3.
To
what extent does work environment affect employees’ productivity?
4. What
better means could be adopted in inducing higher employee productivity so as to
enhance job satisfaction?
5. What
are the challenges associated with the provision of good working environment
for Setraco staff?
1.5 SIGNIFICANCE OF THE
STUDY
This study will explore the effect of
internal environment on employee productivity and the make-up of what constitutes
a good internal environment in the company used as a case study. It is intended
to be of interest to the top management in the service companies who would find
the study very essential as a guide in structuring the internal environment and
make it a better place, putting all the necessary facilities in place to
enhance efficiency and also increase the level of job productivity.
1.6 SCOPE OF THE STUDY
The
study is not designed to cover the service firms in Nigeria but is limited to
Setraco Plc. Efforts have been specifically made to find out how the effect of
internal environment affects the job performance of staff of Setraco Company
Plc for this purpose; the study covers the entire management cadre.
1.7 LIMITATION OF THE STUDY
This
study is limited to Setraco Company of Nigeria Plc Ebonyi state due to time and
logistics constraints, which made extensive coverage of service or even
manufacturing firms difficult.
1.8 DEFINITION
OF TERMS
Internal Environment: An
organization's internal environment is composed of the elements within the
organization, including current employees, management, and especially corporate
culture, which defines employee behavior. Although some elements affect the
organization as a whole, others affect only the manager.
Productivity: Productivity describes
various measures of the efficiency of production. A productivity measure is
expressed as the ratio of output to inputs used in a production process, i.e.
output per unit of input.
Employee: Employee definition, a person
working for another person or a business firm for pay.
Organization: An organization or organization
is an entity comprising multiple people, such as an institution or an
association, that has a collective goal and is linked to an external
environment.