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THE IMPACT OF WORKING ENVIRONMENT ON EMPLOYEES i

THE IMPACT OF

PERFORMANCE: THE CASE OF INSTITUTE OF FINANCE MANAGEMENT

IN DAR ES SALAAM REGION

CHRISTABELLA P. BUSHIRI

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER IN HUMAN RESOURCES

MANAGEMENT OF THE OPEN UNIVERSITY OF TANZANIA.

2014 brought to you by COREView metadata, citation and similar papers at core.ac.ukprovided by Digital Library of Open University of Tanzania

ii

CERTIFICATION

The undersigned certifies that he has read and hereby recommends for acceptance by the Open University of Tanzania a dissertation titled The impact of working environment Salaam in partial fulfillment of the requirements for degree of Masters in Human

Resources Management (MHRM).

_________________________________

Dr. Salum S. Mohamed

(Supervisor) _________________________________ Date iii

COPYRIGHT

No part of this dissertation may be reproduced, stored in any retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the author or the Open University of

Tanzania in that behalf.

iv

DECLARATION

I, Christabella Peter Bushiri do hereby declare that this dissertation is my own original work and that it has not been presented and will not be presented to any other University for a similar or any other degree award. _________________________________

Signature

_________________________________ Date v

DEDICATION

I dedicate this dissertation to my family especially my late father Peter Raphael Bushiri who passed away before he saw the results of his good work. He was always a source of inspiration and a mentor in serious life situations. Also my dedication goes to my lovely mother Theopista K. Bushiri, my lovely husband Mwesiga W. Barongo and my lovely brother Douglas P. Bushiri for being supportive when I struggled to ensure that this work is complete. vi

ACKNOWLEDGEMENT

I would like to express my deepest gratitude to the Almighty God for blessing me with Human Resources Management. I am grateful to my supervisor Dr.Salum S. Mohamed from the Open University of Tanzania for his support and guidance during preparation of this dissertation.I would like to extend my heartfelt acknowledgements for assistance I received from the senior and junior staffs at Institute of Finance Management who have guided me through this dissertation. Finally, special thanks should be directed to my husband Mwesiga Wilson Barongo for his support and encouragement from the first day I joined Masters of Human Resources Managementprogramme to completion of this dissertation. He deserves heartfelt thanks. vii

ABSTRACT

Organizations must step outside their traditional roles and comfort zones to look at new ways of working. They have to create a work environment where people enjoy what they do, feel like they have a purpose, have pride in what they do, and can reach their potential. The study aimed to assess the impact of work performance at Institute of Finance Management in Dar es Salaam Region. For the purpose of this study, descriptive research design was used. Simple random sampling technique was respectively used to select the respondents for the study. Respondents for this study were fifty (50) made up of twenty-five (25) senior staff and twenty-five (25) junior staff. Structured questionnaires were used for data collection. The study findings indicate that, organization working environment had an impact on members as far as respondents are concerned. The study also revealed that employees will improve their performance if the problems identified during the research are tackled by the management. The problems are flexibility of working environment, work noise aid, the use of performance feedback and improve of work incentives in the organization so that to motivate employees to perform their job. In conclusion based on the findings the study recommended that, the organization needs to have periodic meetings with employees to air their grievances to management and serve as a motivating factor to the employees. Management should find ways and means of communicating their goals and strategies to their employees in order to achieve what the organization is in business for, its mission and vision. viii

TABLE OF CONTENTS

CERTIFICATION .......................................................................................................... II

COPYRIGHT ................................................................................................................. III

DECLARATION ........................................................................................................... IV

DEDICATION ................................................................................................................. V

ACKNOWLEDGEMENT ............................................................................................ VI

ABSTRACT .................................................................................................................. VII

TABLE OF CONTENTS ............................................................................................ VIII

LIST OF FIGURES ..................................................................................................... XV

CHAPTER ONE .............................................................................................................. 1

1.0 INTRODUCTION ...................................................................................................... 1

1.1 Background to the Study ............................................................................................. 1

1.2 Statement of the Research Problem ............................................................................. 2

1.3 Research Objectives ..................................................................................................... 4

1.3.1 General Objective...................................................................................................... 4

1.3.2 Specific Objectives.................................................................................................... 4

1.3 Research Questions ...................................................................................................... 4

1.5 Significance of the Study ............................................................................................. 5

1.6 Scope of the Study ....................................................................................................... 5

ix

1.7 Organization of the Study ............................................................................................ 6

CHAPTER TWO ............................................................................................................. 7

2.0 LITERATURE REVIEW .......................................................................................... 7

2.1 Introduction .................................................................................................................. 7

2.2 Conceptual Definitions ................................................................................................ 7

2.2.1 Working Environment ............................................................................................... 7

2.2.2 Employee Performance ............................................................................................. 9

2.3 Theoretical Literature Review.................................................................................... 10

2.3.1 Goal-Setting Theory ................................................................................................ 11

2.3.2 Expectancy Theory.................................................................................................. 12

of Needs Theory .................................................................... 12

2.3.4 Frederick Herzberg's Theory ................................................................................... 14

2.3.5 Mcgregor Theory X and Theory Y ......................................................................... 15

2.3.6 Working Environment Factors that Affect Employees Performance ..................... 16

2.3.6.1 Supervisor Support ............................................................................................... 16

2.3.6.2 Job Aid ................................................................................................................. 17

2.3.6.3 Physical Work Environment ................................................................................ 17

2.3.6.4 Performance Feedback ......................................................................................... 18

2.3.6.5 Workplace Incentives ........................................................................................... 19

x

2.4 Empirical Analysis ..................................................................................................... 19

2.4.1 Empirical Analysis in the World ............................................................................. 19

2.4.2 Empirical Analysis in Africa ................................................................................... 21

2.4.3 Empirical Analysis in Tanzania .............................................................................. 22

2.5 Research Gap ............................................................................................................. 24

2.6 Conceptual Framework .............................................................................................. 25

2.7 Theoretical Framework .............................................................................................. 26

2.7.1 Job Aid and Employee Performance ....................................................................... 26

2.7.2 Supervisor Support and Employee Performance .................................................... 26

2.7.3 Physical Work Environment and Employee Performance ...................................... 27

2.7.4 Work Incentives and Employee Performance ......................................................... 27

2.7.5 Performance Feedback and Employee Performance............................................... 28

CHAPTER THREE ....................................................................................................... 29

3.0 RESEARCH METHODOLOGY ........................................................................... 29

3.1 Introduction ................................................................................................................ 29

3.2 Research Design ......................................................................................................... 29

3.3 Study Area .................................................................................................................. 29

3.4 Population of the Study .............................................................................................. 30

3.5 Sample Size and Sampling Techniques ..................................................................... 30

xi

3.5.1 Sample Size ............................................................................................................. 30

3.5.2 Sampling Techniques .............................................................................................. 31

3.6 Data Collection Methods ........................................................................................... 31

3.6.1 Primary Data ........................................................................................................... 32

3.6.2 Secondary Data ....................................................................................................... 32

3.7 Data Collection Tools ................................................................................................ 32

3.7.1 Questionnaire .......................................................................................................... 33

3.7.2 Observation ............................................................................................................. 33

3.7.3 Interview ................................................................................................................. 33

3.8 Reliability and Validity of Data ................................................................................. 34

3.9 Data Analysis ............................................................................................................. 34

CHAPTER FOUR .......................................................................................................... 35

4.0 PRESENTATION OF FINDINGS, ANALYSIS AND DISCUSSION ................ 35

4.1 Introduction ................................................................................................................ 35

4.2 Findings and Data Analysis ....................................................................................... 35

4.2.1 Gender of Respondents ........................................................................................... 35

4.2.2 Rank of Respondents .............................................................................................. 36

4.2.3 Age of Respondents ................................................................................................ 36

4.2.4 Physical Working Environment .............................................................................. 37

4.2.5 Workplace Noise Distraction .................................................................................. 38

xii

4.2.6 Employee Performance Feedback ........................................................................... 38

4.2.7 Communication of organization Goals and Strategies ............................................ 39

4.2.8 Job Aid .................................................................................................................... 40

4.2.9 Employee Recognition as Individual ...................................................................... 41

4.2.10 Communication between Employees .................................................................... 42

4.2.11 Employee Career Advancement ............................................................................ 43

4.2.12 Employee Relationship with Supervisor ............................................................... 43

4.2.13 Employee Job Security in the Organization .......................................................... 44

4.2.14 Clear Definition of Task ....................................................................................... 45

4.2.15 Supervisors Rating on Communication ............................................................... 46

4.2.16 Supervisors Rating on Planning and Organizing ................................................. 46

4.2.17 Supervisors Rating on Directing and Coordinating ............................................. 47

4.2.18 Supervisors Rating on Job/Technical Knowledge ............................................... 48

4.2.20 Work Incentives towards Employee Performance ................................................ 50

4.2.21 Length of Working Period .................................................................................... 52

4.2.22 Referral of a Friend to Work with the Organization ............................................. 52

4.2.23 Fairly Treatment of Rewarding Employees .......................................................... 53

4.3 Discussion of the Findings ......................................................................................... 54

CHAPTER FIVE ............................................................................................................ 56

xiii

5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS ............................ 56

5.1 Introduction ................................................................................................................ 56

5.2 Summary of the Main Findings.................................................................................. 57

5.3 Implications of the Findings ...................................................................................... 57

5.4 Conclusion ................................................................................................................. 59

5.5 Recommendations ...................................................................................................... 59

5.6 Limitations of the Study ............................................................................................. 60

5.7 Suggested Area for Further Study .............................................................................. 61

REFERENCE ................................................................................................................. 62

APPENDICES ................................................................................................................ 69

xiv

LIST OF TABLES

Table 3.1: Sample Composition of the Study ................................................................. 31

Table 4.1: Gender of Respondents ................................................................................... 35

Table 4.2: Rank of Respondents ...................................................................................... 36

Table 4.3 : Age of Respondents ....................................................................................... 36

Table 4. 4: Physical Working Environment ..................................................................... 37

Table 4.5 : Workplace Noise Distraction ......................................................................... 38

Table 4.6: Employee Performance Feedback................................................................... 39

Table 4.7: Communication of Organization Goals and Strategies ................................... 40

Table 4.8: Job Aid ............................................................................................................ 40

Table 4.9: Employee Recognition as Individual .............................................................. 41

Table 4.10: Communication between Employees ............................................................ 42

Table 4.11: Employee Career Advancement ................................................................... 43

Table 4.12: Employee Relationship with Supervisor ....................................................... 44

Table 4.13: Employee Job Security in the Organization.................................................. 44

Table 4.14: Clear Definition of Task .............................................................................. 45

xv

LIST OF FIGURES

Figure 2.1 ................................................................... 13

Figure 2.2: Conceptual Framework.................................................................................. 25

........................................................ 46 ........................................... 47 ........................................ 48 ........................................... 49 .......................................... 50

Figure 4.6: Work incentives towards employee performance ........................................ 51

Figure 4.7: Length of working period ............................................................................. 52

Figure 4.8: Referral of a friend to work with the organization ........................................ 53

Figure 4.9: Fairly treatment of rewarding employees ..................................................... 54

1

CHAPTER ONE

1.0 INTRODUCTION

1.1 Background to the Study

Working environment plays an important role towards the . Working environment is argued to impact immensely on performance either towards negative or the positive outcomes (Chandrasekar2001).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 boosts the employees and ultimately improve their productivity. Various literature pertain 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 employeesClements- Croome 1997). , 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 e 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 thee formance which leads to increased productivity at the workplace (Boles et al.2004). 2 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, September 2004) overwhelmingly endorsed the ILOemphasis on the creation of quality jobs. The Government of the UnitedRepublic 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 Research 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 inthe workplace that impact favorably or unfavorably individual performance. The working environment also includes policies, rules, culture, resources, working 3 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 performance at the institute of finance management. This is the public institution which operates at the center of Dar es Salaam city with about 9000 students and 320 employees. The problem identified which made to undergo this research is based on the physical work environment which mostly affect performance. The institute is located in an area of 4 acres which is small compared to the number of students and employees. This resulted to lack of enough offices for employees to do their work effectively, noise which cause discomfort depending on the task they are given and the environment of the place they are working. Through this study the employer will get to know how its work environment impacts . 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 often interrelated when it comes to productivity in the work environment. It is therefore important to find out the this institute which will provide knowledge and measures to other public institutions in

Tanzania.

4

1.3 Research Objectives

This research will be guided by the following study objectives

1.3.1 General Objective

The general objective of this study is to assess the impact of working environment on inance Management in Dar es Salaam.

1.3.2 Specific Objectives

i. To determine the contribution of performance feedback on performance. ii. To assess the use of job aid towards performance. iii. To determine whether physical work environment has influence on performance. iv. To examine whether supervisor support contribute towards performance.

1.3 Research Questions

i. How does performance feedback improve performance? ii. How can job aid enhance em? iii. What are the physical work environments that add performance? iv. performance? 5

1.5 Significance of the Study

It is anticipated that the findings of the study will pave way for the authorities of the institute of finance management to accept the variable that affects employees working environment and their performance at the organization. Such an acceptance could be utilized to improve on the working conditions of employees. It will also visualize that the findings of this study will enable the organization to know how to address issues concerning the employees and its working environment and to consider office design as an important factor in increasing employees performance. It will therefore serve as a reference material for future researches in this area. Also, the results will s far as their environments are concerned. The study is expected to provide knowledge and measures to improve the working environment of employees for better performance in public institution specifically at the Institute of Finance Management in Dar es Salaam

Region.

1.6 Scope of the Study

The study will focus on employees at the Institute of Finance Management. This is the public institution which operates at the city center of Dar es Salaam Region with about

9000 students and about 320 employees. This study will find out how working

environment has a significant impact upon employee performance and productivity. 6

1.7 Organization of the Study

The study will be structured into five chapters. Chapter one will deal with introduction, statement of research problem, research objectives and significance of the study. Chapter two will consist of literature review which will comprise of conceptual definitions, theoretical review, empirical analysis and conceptual frame work. Chapter three will contain the research methodology which comprise of the research design, study area, research population, sampling design, and data collection methods. Chapter four will highlight the presentation and interpretation of data as well as discussing of findings. Chapter five will contain the summary of the study, recommendations and conclusions. 7

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Introduction

This literature review attempts to discuss the various literature related to working environment which has impact on employee performance. The discussion also identifies gaps left by other researchers of similar studies. However, this study attempts to fill those gaps so that the write-up can contribute to a new body of knowledge in the academic world. Through this review, literature is re-packaged and analyzed as a way of bringing new insights into the problem studied.

2.2 Conceptual Definitions

This subsection provides definitions of key concepts such as working environment and employee performance from various sources.

2.2.1 Working environment

Kohun (1992), defines working environment as an entirely which comprises the totality of forces, actions and other influential factors that are currently and, or potentially contending wit and performance. Working environment is the sum of the interrelationship that exists within the employees and the environment in which the employees work. Brenner (2004) was of the opinion share knowledge throughout organizations depends on how the work environment is designed to enable 8 organizations to utilize work environment as if it were an asset. This helps organizations to improve effectiveness and allow employees to benefit from that working environment designed to of ideas is a better medium of motivating employees towards higher productivity. Opperman (2002) defines working environment is a composite of three major sub- environments: the technical environment, the human environment and the organizational environment. Technical environment refers to tools, equipment, technological infrastructure and other physical or technical elements. The technical environment creates elements that enable employees perform their respective responsibilities and activities. The human environment refers to peers, others withquotesdbs_dbs29.pdfusesText_35
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