AN APPRAISAL OF THE EFFECT OF CONDITIONS OF SERVICE ON EMPLOYEES’ PERFORMANCE IN SELECTED SMES
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 (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
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 thee mployees’ performance
which leads to increased productivity at the workplace (Boles et al.2004).
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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 ILO’s Decent Work Agenda with an emphasis 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
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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
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 employees’ 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
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. It is therefore
important to find out the impact of working environment on employees’ performance at
this institute which will provide knowledge and measures to other public institutions in
Tanzania.
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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
employees’ performance at the Institute of Finance Management in Dar es Salaam.
1.3.2 Specific Objectives
i. To determine the contribution of performance feedback on employees’
performance.
ii. To assess the use of job aid towards employees’ performance.
iii. To determine whether physical work environment has influence on
employees’ performance.
iv. To examine whether supervisor support contribute towards employees’
performance.
1.3 Research Questions
i. How does performance feedback improve employees’ performance?
ii. How can job aid enhance employees ‘performance?
iii. What are the physical work environments that add towards employees’
performance?
iv. Which contribution does a supervisor has towards employees’
performance?
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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 throw more light on factors affecting employee’s performance as 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.
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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.
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