IMPACT OF OFFICE ENVIRONMENT ON THE JOB PERFORMANCE OF OFFICE WORKERS

CHAPTER TWO

LITERATUREREVIEW

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.

Conceptual Definitions

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

Workingenvironment

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 with the employee’s activities and performance. Working environment is the sum of the interrelationship that exists within the employees and the environment in which the employeeswork.

Brenner (2004) was of the opinion that “the ability to share knowledge throughout organizations depends on how the work environment is designed toenable organizations to utilize work environment as if it were an asset. This helps organizations to improve effectiveness and allow employees to benefit from collective knowledge”. In addition, he argued that working environment designed to suit employee’s satisfaction and free flow of exchange of ideas is a better medium of motivating employees towards higherproductivity.

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 with whom employees relates, team and work groups, interactional issues, the leadership and management. This environment is designed in such a way that encourages informal interaction in the work place so that the opportunity to share knowledge and exchange ideas could be enhanced. This is a basis to attain maximum productivity. Organizational environment include systems, procedures, practices, values and philosophies. Management has control over organizational environment. Measurement system where people are rewarded on quantity, hence workers will have little interest in helping those workers who are trying to improve quality. Thus, issues of organizational environment influence employee’sproductivity.

EmployeePerformance

Sinha (2001) stated that employees’ performance is depending on the willingness and also the openness of the employees itself on doing their job. He also stated that by having this willingness and openness of the employees in doing their job, it could increase the employees’ productivity which also leads to the performance.

Stup (2003) also explained that to have a standard performance, employers have to get the employees task to be done on track as to achieve the organization goal or target. By having the work or job done on track, employers could be able to monitor their employees and help them to improve theirperformance.

Furthermore, a reward system should be implemented based on the performance of the employees. This is to motivate the employees in order to perform more on their task.

There are several factors that being described by Stup (2003) towards the success of the employees’ performance. The factors are such as physical work environment, equipment, meaningful work, performance expectation, feedback on performance, reward for good or bad system, standard operating procedures, knowledge, skills and attitudes.

Franco et al (2002) defined performance that relies on internal motivation but presence of internal factors such as necessary skills, intellectual capacity and resources to do the job clearly have an impact. As a consequence employers are supposed to provide appropriate working conditions in order to make sure the performance of employees meet the required standards.

Theoretical LiteratureReview

Employees' performance has been established to be directly related to employees' motivation. This assertion was corroborated by different management theories since the works of Frederick Taylor on 'The Principle of Scientific Management' in 1911and Henry Gantt on 'Works, Wages and Profits' in 1913. Modern employees' motivation management methods have evolved over time which discredited Taylor's" differential piece rate -work" and Gantt's "task and bonus wage" systems. The modern employees' motivation management methods are employees' oriented and are more effective (Gardner and Lambert1972).

Maslow (1943) said that people work to survive and live through financial compensation, to make new friends, to have job security, for a sense of achievement and to feel important in the society, to have a sense of identity, and most especially to have job satisfaction. All employees that have job satisfaction are high performers in their respectiveworkplaces.

Taylor (1911) opined that the most important motivator of workers is salary and wages when he said that "non-incentive wage system encourages low productivity". He said that if employees receive the same wage irrespective of their individual contribution to the goal, they will work less and that employees think working at a higher rate means fewer employees may be needed which discourages employees to work more (Gardner and Lambert 1972).

Basing on those explanations, this study indicates that the success of any organization largely depends on the motivation of its employees.

Goal-settingTheory

The goal-setting theory had been proposed by Edwin Locke in the year 1968. This theory suggests that the individual goals established by an employee play an important role in motivating him for superior performance. Skills required include the ability to engage employees in mutual goal setting clarify role expectations and provide regular performance feedback. Time and energy will also need to be given to providing relevant performance incentives, managing processes, providing adequate resources and workplace training.It also advice that in order to drive the organization to peak performance managers and supervisors must put out front the human face of their organization. Principle here is the human-to-human interaction through providing individualized support and encouragement to each and every employee (Salaman et al, 2005).

Employee performance is a major multidimensional construct aimed to achieve results and has a strong link with planned goals of an organization (Abbas and Yaqoob, 2009). Performance is the key multi character factor intended to attain outcomes which has a major connection with planned objectives of the organization (Sabir et al. 2012).

Employees ‘goals achievement in this theory is by creating of work environment attractive, comfortable, satisfactory and motivating to employees so as to give them a sense of pride and purpose in what they do. How working environment is designed and occupied affects not only how people feel, but also their work performance, commitment to their employer, and the creation of new knowledge in the organization (Taiwo, 2009).

ExpectancyTheory

The most widely accepted explanations of motivation have been propounded by Victor Vroom. His theory is commonly known as expectancy theory. The theory argues that the strength of a tendency to act in a specific way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual to make this simple. Expectancy theory says that an employee can be motivated to perform better when there is a belief that the better performance will lead to good performance appraisal and shall result into realization of personal goal in form of some reward future events. The theory focuses on three things efforts and performance relationship, performance and reward relationship, rewards and personal goal relationship (Salaman et al,2005).

This theory is based on the hypothesis that individuals adjust their behavior in the organization on the basis of anticipated satisfaction of valued goals set by them. In order for employees to perform in this theory is by making sure each employee's workplace goals and values are aligned with the organization's mission and vision is important for creating and maintaining a high level of motivation. That can lead to higher productivity, improve employee performance, reduce the chances of low employee morale, encourage teamwork and instill a positive attitude during challenging times (Salaman et al,2005).

Maslow’s Hierarchy of NeedsTheory

Abraham Maslow defined need as a physiological or psychological deficiency that a person feels the compulsion to satisfy. This need can create tensions that can influence a person's work attitudes and behaviors. Maslow formed a theory based on his definition of need that proposes that humans are motivated by multiple needs and that these needs exist in a hierarchical order. His premise is that only unsatisfied need can influence behavior; a satisfied need is not a motivator (Ramlall,2004).

Figure 2.1 Maslow’s theory hierarchy needs

Source: Ramlall, S. (2004)

A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy basic needs (e.g. food, shelter).Once these physiological needs have been satisfied, they are no longer a motivator. The individual moves up to the next level. Safety needs at work could include physical safety (e.g. protective clothing) as well as protection against unemployment, loss of income through sickness etc).Social needs recognize that most people want to belong to a group. These would include the need for love and belonging (e.g. working with colleague who supports you at work, teamwork, communication).Esteem needs are about being given recognition for a job well done. They reflect the fact that many people seek the esteem and respect of others. A promotion at work might achieve this. Self- actualization is about how people think aboutthemselves-thisisoftenmeasuredbytheextentofsuccessand/orchallengeat work (Ramlall, 2004).One should also take care that employees don’t just work for financial incentives. One should create an environment where employees like to come to work because they enjoy their jobs hence increase performance. Incentives also motivate the employees when you want them to go that extra mile to achieve your targets. Maslow's model has great potential appeal in the business world. The message is clear - if management can find out which level each employee has reached, then they can decide on suitable rewards (Ramlall, 2004).

Frederick Herzberg'sTheory

Herzberg's theory concludes that certain factors in the workplace result in job satisfaction, but if absent, they don't lead to dissatisfaction but no satisfaction. The factors that motivate people can change over their lifetime, but "respect for me as a person" is one of the top motivating factors at any stage of life. He distinguished between motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction, and hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not motivate if present, but, if absent, result in demonization. The theory is sometimes called the "Motivator-Hygiene Theory" and/or "The Dual Structure Theory." Herzberg described four basic states that could occur:

1. High Motivation/High Hygiene: Perfect state of happy, motivatedemployees

1. High Motivation/Low Hygiene: Motivated employees who love the work but have lots ofComplaints
2. Low Motivation/High Hygiene: Bored employees punching a clock for a Pay check
3. Low Motivation/Low Hygiene: Total mess of bored, unhappyemployees.

Herzberg's research proved that people will strive to achieve 'hygiene' needs because they are unhappy without them, but once satisfied the effect soon wears off - satisfaction is temporary. Then as now, poorly managed organizations fail to understand that people are not 'motivated' by addressing 'hygiene' needs. People are only truly motivated by enabling them to reach for and satisfy the factors that Herzberg identified as real motivators, such as achievement, advancement, development, etc., which represent a far deeper level of meaning andfulfillment.

McGregor Theory X and TheoryY

McGregor has developed a theory of motivation on the basis of hypotheses relating to human behavior. According to him, the function of motivating people involves certain assumption about human nature. Theory X and Y are two sets of assumptions about the nature of people. THEORY X considers individuals who dislike work and avoid it where possible, individuals who lack ambition dislike responsibility and prefer to be led, and individuals who desire security. The management implications for Theory X workers were that, to achieve organizational objectives, a business would need to impose a management system of coercion, control and punishment. THEORY Y considers effort at work as just like rest or play, ordinary people who do not dislike work. Depending on the working conditions, work could be considered a source of satisfaction or punishment, individuals who seek responsibility (if they are motivated). The management implications for Theory X workers are that, to achieve organizational objectives, rewards of varying kinds are likely to be the most popular motivator. The challenge for management with Theory Y workers is to create a working environment (or culture) where workers can show and develop their creativity.

Working Environment Factors that Affect EmployeesPerformance

An attractive and supportive working environment provide conditions that enable employees to perform effectively, making best use of their knowledge, skills and competences and the available resources in order to provide high-quality of organization service. Basing on this study the factors are explainedbelow.

SupervisorSupport

A supervisor is also known as a person with an experience leader, a person who can solve problem and also the role model at the first level of organizational management (Adair, 1988; Nijman, 2004). Therefore, as an experience leader, the supervisors had always being involved in conducting a training program. The training program that is being conducted are such as establishing the objectives, selecting the trainer, developing a lesson plans, selecting the program method and techniques that is being used, preparing the materials, scheduling the program and also conduct a training needs analysis (Adair, 1988; Elangovan & Karakowsky 1999). Rabey, (2007) stated that, a supervisor could be a trainer to the employees, as the trainer will assist the employees in getting their job done by guiding employees on the operational process especially when it comes to a new operational procedure. A supervisor support could lead to the employees’ performance but there is a case that the supervisor had failed in supporting their employees. For example, the miscommunication between employees and the supervisor in term of delivering the information or process on the job to the employees (Harris et. al.,2000). In order to gain the employees performance, both party in between the employees and supervisor needs to play their part which is to commit with the relationship. If full commitment is given, it will leads to positive result to the performance from the employees (Blau, 1964).

Job Aid

Rossett and Gauier (1991) stated that, the purpose of job aid is to direct and guide as to enlighten the employees performance. Job aid also helps in order to support the employees’ performance. An example of a military performance had been reviewed by (Duncan 1985) regarding the military reliance on job aids between 1958 and 1972 which is significant and positive contribution toward the military performance. He also stated that based on the results of military analysis, job aid saved money without jeopardizing employees work performance. There are three ways to increase performance based on the job aid (Cavanaugh, 2004). The first way is through the external support which means that the employees need to take leave from work and look for the source as for their reference to their job. The second way is through the extrinsic support. An extrinsic support means that the job aid is being given within the system itself. As for the third way, it is called the intrinsic support. An intrinsic support is an insider or software that is being used as for the efficiency ofworkflow.

Physical Work Environment

Physical working environment can result a person to fit or misfit to the environment of the workplace. A physical work environment can also be known as an ergonomic workplace. Researches on the workplace environment need to be done in order to get anergonomicworkplaceforeveryeachoftheemployees.Byhavingthisergonomic physical workplace at their workplace, it will help employees from not getting the nerve injury (Cooper & Dewe,2004).

Furthermore, McCoy and Evans (2005) stated that the elements of working environment need to be proper so that the employees would not be stressed while getting their job done. In their article, they also stated that the physical element plays an important role in developing the network and relationship at workplace. Result of the employees’ performance can be increased from five to ten percent depending on the improvement of the physical workplace design at their workplace (Brill,1992).

Further, Amir (2010) mentions elements that related to the working environment. There are two main elements which are the office layout plan and also the office comfort. Amir (2010) also stated that a physical workplace is an area in an organization that is being arranged so that the goal of the organization could be achieved.

Performance Feedback

Performance feedback is an information exchange and conflict resolution process between the employee and supervisor. This consists of both positive feedback on what the employee is doing right as well as feedback on what requires improvement. Managers and supervisors will need to be comfortable with working with the whole range of workplace factors that influence employee performance. While the supervisor gives his/her feedback and requirements, the employee enables to give his her feedback regarding his/her requirements. Although this process is formal, it could be managed informally by gaining closer relations for two sides (Chandrasekar, 2011).

WorkplaceIncentives

The organization determines what motivates its employees and sets up formal and informal structures for rewarding employees behaving in the way required. Rewards may consist of a mix of internal rewards, such as challenging assignments, and external rewards, such as higher compensation and peer recognition (Chandrasekar, 2011). Performance of professional employees is poor not only due to working environment factors but also due to lack of human resource management aspect such as recognition of employees who performs well, poor working condition, absence of performance appraisal system and poor feedback on performance outcome .Therefore significant changes in promotions, compensation and benefits helps in keeping employees satisfied and in turn increases production.

EmpiricalAnalysis

This empirical analysis attempts to discuss various studies on working environment which has impact on employee performance.

Historically, the job satisfaction-performance linkage has been primarily discussed by theorists from the Socio-technical and Human Relations schools of thought. According to the Socio-technical approach (Emery & Trist, 1960), organizational performance depends on congruence between the technical and social structures of the organization. Building on this notion, the Human Relations perspective posits that satisfied workers are productive workers (Likert, 1961; McGregor, 1960). Thus, organizational productivity and efficiency is achieved through employee satisfaction and attention to employees’ physical as well as socio-emotional needs. Human relations researchers further argue that employee satisfaction sentiments are best achieved through maintaining a positive social organizational environment, such as by providing autonomy, participation, and mutual trust (Likert, 1961). Based on this logic, employee satisfaction is believed to influence the development of routine patterns of interaction within organizations. Through mutual interactions, employees develop relationships with co-workers that also prescribe behavioral expectations and influence behaviors (e.g,norms or informal standards of acceptable behavior).

For example, an unhappy employee could be prevented from lowering their performance by control mechanisms (e.g., standards of measurement, supervisory influence); however, widespread dissatisfaction among employees could lead to a strike or sabotage that might hinder an organization’s effectiveness. Alternatively, dissatisfied employees might choose to maintain performance levels (due to control mechanisms) but neglect to inform supervisors of important information that, over time, would result in lower organizational effectiveness or efficiency. Thus, employees’ job satisfaction sentiments are important because they can determine collaborative effort (Harter et al., 2002).Brenner (2004) asserted that the ability of employees within an organization to share knowledge throughout the system depends on the conditions of their work environment. Some employees tend to be more productive in a well facilitated work environment. More so, the quality of comfort variable from work environment determines the level of satisfaction and productivity of workers. Workers productivity cannot be optimal, if the conditions of work environment are not favorable. Improved work environment enhances employee’s productivity.

Africa today suffers from some aspects of economic, social and political underdevelopment, but that the most salient characteristic is their poverty (Kamoche, 1997).The argument can thus be made that improving work habits in African institutions can contribute to Africa’s "graduation from poverty and vulnerability to well-being and security and development” (Bibangambah 2002). That is development measured in terms of its three components—economic, social and political, the technological dimension being part of the economic component—meaning the process of enhancement of capacity to effectively and adequately meet people's needs (UNDP, 1999). Africa’s incapacitation or lack of capacity to address the needs of her people or affect desired and appropriate urban and rural management practices is indicative of the criticality of capacity and capacity enhancement defined by the right work habits of the working actors. Poor work habits’ adverse impaction productivity and growth is not a new discovery (Pritchett,2005).The argument has been made that effective development requires high standards of ethical and performance behaviors, particularly in relation to national governance and major development projects (World Bank, 1999). The wave of globalization now requires agencies of governments and companies in other parts of the world including African nations to conduct their business in an environment characterized by speed and being connected (World Bank, 1981). The development and retention of intellectual capital determines the competitive advantage ofcompanies(Pritchett,2005).Tosurviveinthe21century,institutionsinAfricamust be disposed to constant change and be adaptable to identify with leading people strategies and practices that correlate with excellent financial performance and adopt effective benchmarking practices against leading practices in participating sectors (Drucker, 1993; Senge, 1990).

As suggested by Govindarajulu (2004), in the twenty-first century, businesses are taking more strategic approach to environmental management to enhance their productivity through improving the performance level of the employees. It is evident in the research findings of Patterson et al., (1997) that the more satisfied workers are with their jobs the better the company is likely to perform in terms of subsequent profitability and particularly productivity. Sekar (2011) argues that the relationship between work, the workplace and the tools of work, workplace becomes an integral part of work itself. The management that dictate how, exactly, to maximize employee productivity center around two major areas of focus: personal motivation and the infrastructure of the workenvironment.

ConceptualFramework

Based on the literature review, the relationship between working environment and employee performance can be conceptualized and depicted in Figure 2.2.

Figure 2.2: Conceptual Framework

Source: Researcher

TheoreticalFramework

Theoretical framework attempts to give explanation of the variables as considered in the conceptual framework. The relationship is defined in such a way that the set of factors impact on an individual, which in turn determine the final outcome in terms of increased or decreased performance of thatindividual.

Job Aid and EmployeePerformance

A job aid is the external aid to an individual. The purpose of this job aid is to support the work activity (Rossett & Gauier-Downes, 1991).Being one of the working environment factors for employee performance, job aid is being used to guide the job performance in real time. This means that by having this job aid it will support the employees to perform and plan for the development so that it can be used as to obtain the optimal use for performance. Job aid made work to be easier and help minimize error rates. These can include templates, guides, models and checklists.

Supervisor Support and EmployeePerformance

Immediate supervisors act as advocates for employees, gathering and distributing the resources needed by the employees for them to be able to do a good job and providing positive encouragement for a job well done. As the working environment factor, supervisor interpersonal role is important to encourage positive relations and increase self-confidence of the employee and in return improve employee performance (Blau, 1964).

Physical Work Environment and EmployeePerformance

Physical factors in the workplace such as poor layout or overcrowding can lead to common types of accident such as tripping or striking against objects. There are also some other factor that could affect the employees performance such as noise which will cause discomfort on the employees and thus reduce the employees’ productivity. An employee could be affected depending on the task they are given and also the environment of the place they are working. By having a good environment, the employees could apply their energy and their full attention to perform work (Vischer, 2007).

Work Incentives and EmployeePerformance

Work incentive for increasing employee performance is often thought to be based on salary and promotion. In addition, a motivating work environment must be the one in which employees are treated fairly. No matter what level of input a particular worker has in relation to the business processes as a whole, it is essential for a manager to give each employee a sense of playing a dynamic, integral role in something much larger. Indeed, engendering loyalty is a key element of motivating workers and thereby increasing the overall productivity and employee performance .Therefore the organization determines what motivates its employees and sets up formal and informal structures for rewarding them as the working environment factor which enhances performance.

Performance Feedback and EmployeePerformance

Performance feedbacks are regular feedback to employees’ information on how they are performing. This should consist of both positive feedback on what the employee is doing right as well as feedback on what requires improvement. The feedback needs to be as objective as possible and delivered with the appropriate interpersonal and conflict resolution skills. It can be a mix of both informal feedback and feedback delivered as part of a formal performance management cycle (Chandrasekar,2011).