i
THE IMPACT OF WORKING ENVIRONMENT ON EMPLOYEES’
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
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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
on employees’ performance, the case of Institute of Finance Management in Dar es
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.
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ACKNOWLEDGEMENT
I would like to express my deepest gratitude to the Almighty God for blessing me with
good health, wisdom and passion to persist in fulfillment of the master’s programme in
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.
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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 working environment on employees’
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
distraction, supervisor’s interpersonal relationship with subordinates, presence of job
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.
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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
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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
2.3.3 Maslow’s Hierarchy 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
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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
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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
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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
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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
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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
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LIST OF FIGURES
Figure 2.1 Maslow’s theory hierarchy needs ................................................................... 13
Figure 2.2: Conceptual Framework.................................................................................. 25
Figure 4. 1: Supervisor’s rating on communication ........................................................ 46
Figure 4.2: Supervisor’s rating on planning and organizing ........................................... 47
Figure 4.3: Supervisor’s rating on directing and coordinating ........................................ 48
Figure 4.4: Supervisor’s rating on job/technical knowledge ........................................... 49
Figure 4.5: Supervisor’s rating on interpersonal relationship .......................................... 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 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).
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 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
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 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.
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
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.
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.
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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 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 employees work.
Brenner (2004) was of the opinion that “the ability to share knowledge
throughout organizations depends on how the work environment is designed to enable
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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 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 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’s productivity.
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2.2.2 Employee Performance
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 their performance.
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.
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2.3 Theoretical Literature Review
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 Lambert 1972).
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 respective workplaces.
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.
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2.3.1 Goal-setting Theory
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).
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2.3.2 Expectancy Theory
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).
2.3.3 Maslow’s Hierarchy of Needs Theory
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
13
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
about themselves - this is often measured by the extent of success and/or challenge at
14
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).
2.3.4 Frederick Herzberg's Theory
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, motivated employees
2. High Motivation/Low Hygiene: Motivated employees who love the work but
have lots of Complaints
3. Low Motivation/High Hygiene: Bored employees punching a clock for a Pay
check
4. Low Motivation/Low Hygiene: Total mess of bored, unhappy employees.
15
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 and fulfillment.
2.3.5 McGregor Theory X and Theory Y
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.
16
2.3.6 Working Environment Factors that Affect Employees Performance
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 explained below.
2.3.6.1 Supervisor Support
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).
17
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).
2.3.6.2 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 of workflow.
2.3.6.3Physical 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
an ergonomic workplace for every each of the employees. By having this ergonomic
18
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.
2.3.6.4 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).
19
2.3.6.5 Workplace Incentives
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.
2.4 Empirical Analysis
This empirical analysis attempts to discuss various studies on working environment
which has impact on employee performance. These studies will be categorized as
empirical analysis in the world, empirical analysis in Africa and empirical analysis in
Tanzania.
2.4.1 Empirical Analysis in the World
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
20
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
21
cannot be optimal, if the conditions of work environment are not favorable. Improved
work environment enhances employee’s productivity.
2.4.2 Empirical Analysis in Africa
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 componentseconomic, social and political, the
technological dimension being part of the economic componentmeaning 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
of companies (Pritchett,2005). To survive in the 21century, institutions in Africa must
22
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 work environment.
2.4.3 Empirical Analysis in Tanzania
Job satisfaction plays a vital role for any organization to achieve its goals and missions.
It is not a new subject since it captured the attention of many scholars for many
decades. It refers to the degree or level of contentment (Agho et al, 1993) or discontent
of an employee regarding his/her work in general. It is a mental attitude and perception
of the work (Hussin, 2011) that may eventually create the intention to join an
organization, stay or leave the job. Employees have their own needs, interests,
preferences, choices, feelings and wishes which make them comfortable and feel that
23
they are in a right place in accordance to their capabilities, and that the job will be the
source of satisfying their needs and expectations.
According to a report by Sumra (2005), several areas of interest on teachers’ status in
Tanzania have been identified. These areas can be examined to understand the
contextual national situation of teachers in government-owned schools in Tanzania. It
is through this national contextual situation that analysis can be done to examine the
factors that affect government school teachers’ job satisfaction and performance. These
factors have been categorized as working conditions and living conditions.
Generally the living and working condition of teachers are poor and not promising for
better employees’ performance as well as students’ academic achievements. This
means the higher the satisfaction, the higher the employees’ performance. It implies
that, if other factors remain constant then satisfaction is directly proportional to
performance. This relationship suggests that, if the working and living conditions of
teachers will be improved, it is likely that their satisfaction level will also increase their
performance. Motivation has a direct influence on job performance (Inayatullah
&Jehangir, 2012). When employees are motivated positively it is a catalyst for higher
performance. Moreover, there is a statistically strong relationship between the attitude
of employees and the satisfaction with the reward they expect as a return of their
performance. An employee’s positive attitude increases his/her satisfaction level. There
is also a direct relationship between leadership and performance (Adeyemi, 2010 cited
by Inayatullah & Jehangir, 2012). Good leadership catalyzes high employees’
performance. Some literatures cited by Agho et all, (1993) shows that there is a positive
24
relationship between job satisfaction and productivity, but also other scholars like
Inayatullah & Jehangir (2012) assert that employees motivation increase productivity.
To achieve high levels of employee productivity, organizations must ensure that the
physical environment is conducive to organizational needs facilitating interaction and
privacy, formality and informality, functionality and cross-disciplinarily. Consequently,
the physical environment is a tool that can be leveraged both to improve business
results (Mohr, 1996) and employee well-being (Huang, Robertson and Chang, 2004).
Ensuring adequate facilities are provided to employees is critical to generating greater
employee commitment and productivity. The provision of inadequate equipment and
adverse working conditions has been shown to affect employee commitment and
intention to stay with the organization.
2.5 Research Gap
In the review of the literature, theoretical and empirical studies like Sumra
(2005),Brenner (2004), Sekar (2011), (Harter et al., 2002) have been addressed
especially on how working environment relate and affect employee performance as it is
practiced in various areas in theworld. It is the quality of the employee’s workplace
environment that most impacts on their level of motivation and subsequent
performance. How well they engage within the organization, especially with their
immediate environment, influences to a great extent their error rate, level of innovation
and collaboration with other employees and absenteeism. Also most employees leave
their organization because of the relationship with their immediate supervisor or
manager.
25
However the gap identified from theoretical and empirical analysis is that, management
must take an active role in not only defining the physical environment of the workplace
and making it conducive for workers but also alter the management style to suit the
employees. This refers to changing aspects like ethics, behavior, commitment,
professionalism, drive and interpersonal relations in employees for the better
performance. Also principals of management that dictate how, exactly, to maximize
employee productivity center around two major areas of focus: personal motivation and
the infrastructure of the work environment. Therefore from the above explanations,
this study aims to determine the impact of working environment on employees’
performance at the Institute of Finance Management in Dar es Salaam.
2.6 Conceptual Framework
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
Working Environment Factors
Dependent
Independent Variables Dependent Variable
Job Aid
Supervisor
Support
Physical work
environment
Work
incentives
Performance
feedback
26
2.7 Theoretical Framework
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 that individual.
2.7.1 Job Aid and Employee Performance
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.
2.7.2 Supervisor Support and Employee Performance
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).
27
2.7.3 Physical Work Environment and Employee Performance
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).
2.7.4 Work Incentives and Employee Performance
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.
28
2.7.5 Performance Feedback and Employee Performance
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).
29
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
This chapter describes the methods that were used to gather the data relevant to
the study. It contains the research design, population, sample size and sampling
technique, sampling procedure and explains the method and procedures for data
collection, analysis and interpretation of the research findings.
3.2 Research Design
Research design refers to a plan which shows the strategy of an inquiry thought
appropriate to the research (Kothari, 2004). For the purpose of this study, descriptive
research design was used. The descriptive design describes phenomena as they exist. It
issued to identify and obtain information on the characteristics of a particular problem
or issue. Descriptive research design was selected because it has the advantage of
producing good amount of responses from a wide range of people. Also, this design
provides a meaningful and accurate picture of events and seeks to explain people’s
perception and behavior on the basis of the data collected. The advantage with this
design is that it helps to find views as they are in their natural setting.
3.3 Study Area
The study area of this research was at The Institute of Finance Management in Dar es
Salaam. This study aimed to target human resource management officers who are
responsible on employee’s performance management and the employees. The Institute
of Finance Management in Dar es Salaam was selected due to its geographical location
30
and the existed factors that employees are encounter in attaining their job. Therefore,
this study expects to get more useful information for the subject matter to pave a way
for the management on how to overcome those challenges so that to enhance
employees performance by improving their working environment.
3.4 Population of the Study
A population is any group of individuals that has one or more characteristics in
common and that are of interest to the researcher (Creswell, 2005).Therefore, the target
population of this study included human resources officers, head of departments,
directors who manage human resources and staff members. The total population size at
institute of finance management is 320 employees which includes teaching and non-
teaching staffs.
3.5 Sample Size and Sampling Techniques
3.5.1 Sample Size
Kothari, (2004) defines sample as small group of respondents drawn from a population
about which a researcher is interested in getting the information so as to arrive at a
conclusion. This study selected respondents who are responsible on employee’s
performance management and employees themselves (staff members). Respondents
help the researcher plans and to generalize the findings (Best & Kahn, 2006).In this
study, a sample of 50 respondents of both teaching and non-teaching employees were
used by answering questionnaires for the purpose of getting the findings of the study. A
sample of 50respondentswere selected out of 320 employees because they considered
to represent and having vital information for the study by virtue of their positions.
31
Sekaran (2010) stated that, in research investigations involving several hundreds or
thousands of elements, it would be practically impossible to collect data from, or test,
or examine every element. Even if it were possible, it would be prohibitive in terms of
time, cost and other human resources. That’s why sampling to make a research feasible.
A breakdown of the sample is presented in Table 3.1
Table 3.1: Sample Composition of the Study
Participants
Target Population Size
Sample Size
Human resources officers
4
4
Head of departments
40
10
Directors
15
5
Staff members
261
31
TOTAL
320
50
Source: Researcher
3.5.2 Sampling Techniques
In this study random sampling technique was used in collecting data. Creswell, (2005)
defined random sampling as a subset of individuals that are randomly selected from a
population .The goal is to obtain a sample that is representative of the larger
population. Random sampling technique was adopted in getting the respondents to
answer the questionnaires. Kothari, (2004) says that sampling technique is used
because it guarantees desired representation of the relevant sub groups.
3.6 Data Collection Methods
In this study both primary and secondary data were used as methods of data collection.
Primary data are those data which have been collected for the first time such as
questionnaire while secondary data are those data that has been collected by someone
else and exist somewhere (Kothari 2004).
32
3.6.1 Primary Data
Primary data is original and collected for the first time by the researcher. It is gathered
through questionnaire and interviews. By using primary data as the method, we collect
data during the course of doing experiment in experimental research (Kothari 2004). In
this study data was gathered through questionnaire and interviewing the management
and employees at the Institute of Finance Management. The reason of using primary
data as a method of data collection is simply involves observation and questionnaire
which enable the researcher to gather information which could not be easily obtained.
3.6.2 Secondary Data
Secondary data are those data that are already available and were collected from
secondary sources of data such as journals, books, newspapers, websites, publications
and other documents available in libraries including research reports from distinguished
academicians (Kothari 2004).In this study secondary data collected by going through
various documents like books, journals, websites which are relevant to the theme of the
study for the purpose of gathering information.
3.7 Data collection tools
According to Creswell (2005) no single technique or instrument may be considered to
be adequate in itself in collecting valid and reliable data. Therefore two major tools
were used to obtain adequate and reliable information for this study. These include
interviews and questionnaires of both structured and semi-structured nature. This study
used data collection tools which involve observation, interview and questionnaires.
33
3.7.1 Questionnaire
According to Kothari (2004), a questionnaire is a method of collecting data which uses
a set of questions for collecting data. In this method data are collected with the help of
questions. Through this method, selected respondents of this study had to answer
questions on their own and bring back to the researcher. Both structured and semi
structured questions were used in helping the researcher to get answers and relevant
information from respondent.
3.7.2 Observation
Kothari (2004) stated that, observation method allows the researcher to observe how
respondents conduct their day-to-day and how those activities relate to job
performance. In this study, the method was used in order to assess employee’s working
environment and the availability of resources for their job performance within the
organization. The observation helped to collect nonverbal responses from the
respondents. This was done through the use of checklist.
3.7.3 Interview
The interview method of data collection involves presentation of oral verbal stimuli and
replying in term of oral-verbal responses. This method is used through personal
interview and if possible telephone interview (Kothari 2004). In this study personal
interview was used which required a person known as interviewer(researcher) by
asking questions in face to face contact to the interviewee(respondents). The reason for
using interview as a method of collecting data was that, more depth information can be
obtained. Interview used open ended questions from which respondents were able to
discuss issues of interests in details.
34
3.8 Reliability and Validity of Data
Best and Kahn(2006) define validity as the quality of a data gathering instrument or
procedure that enables it to measure what is supposed to measure. In justifying the
validity of this study, number of steps was taken. First, the use of random sample and
convenience sample provided the study with rich information that enabled the
generalization of finding to wider populations. Second, the data collection methods
through the use of questionnaire and interview ensured excellent results.
Reliability on the other hand, is the degree of consistency that the instrument or
procedure demonstrates (Best and Kahn 2006).In this study reliability was achieved by
measuring consistent results from the respondents. Reliability of data was assured
through information collected from relevant respondents with specific attention to key
issues related to working environment and employees performance, factors which
hindering employees performance, proper wording of instructions and logical
arrangement of questions that were asked.
3.9 Data Analysis
Data from the answered questionnaires in this study was analyzed by using
percentages. The collected data was checked for consistency and then frequencies and
percentages used to show responses of the distribution. The results were presented in
tables and chart form. The software used for analysis of the findings was Statistical
Package for Social Sciences (SPSS).
35
CHAPTER FOUR
PRESENTATION OF FINDINGS, ANALYSIS AND DISCUSSION
4.1 Introduction
This chapter covers the analysis and interpretation of the various data collected through
the use of questionnaires and interview as per objectives of the study. The overall
number of employees at Institute of Finance Management is three hundred and twenty
(320). The sample of 50 employees was taken and fifty (50) questionnaires were
printed and distributed to respondents/employees for the purpose of collecting data.
The total number of questions was 23 and below is the analysis of the collected data.
4.2 Findings and Data Analysis
4.2.1 Gender of Respondents
The study involved gender distribution of respondents in order to answer the
questionnaires provided as shown on the table.
Table 4.1: Gender of Respondents
Respondents
Frequency
Percent
Valid
percent
Cumulative
percent
Female
24
48.0
48.0
48.0
Male
26
52.0
52.0
100.0
Total
50
100.0
Source: Researcher
Table 4.1 above depicts that 52% and 48 % of respondents of male and female
respectively answered the questionnaires distributed.
36
4.2.2 Rank of Respondents
The rank of respondents in this study was used in order to answer the distributed
questionnaires.
Table 4.2: Rank of Respondents
Respondents
Frequency
Percent
Valid
percent
Cumulative
percent
Junior staffs
25
50.0
50.0
50.0
Senior staffs
25
50.0
50.0
100.0
Total
50
100.0
100.0
Source: Researcher
From the table4.2, the junior staff of the organization makes up 50% of the employees
who responded the distributed questionnaires. The remaining 50% make up the senior
staff.
4.2.3 Age of Respondents
In this study, age of the respondents was considered to be important in finding the
impact of working environment on employees’ performance at institute of finance
management.
Table 4.3 : Age of Respondents
Respondents
Frequency
Percent
Valid
percent
Cumulative
percent
20-30 years
14
28.0
28.0
28.0
31-40years
20
40.0
40.0
68.0
41-50 years
13
26.0
26.0
94.0
50 and above
3
6.0
6.0
100.0
Total
50
100.0
100.0
Source: Researcher
The 31-40 year group constituted 40% of respondents and was highest number of
respondents followed by 20-30 with 28% and then the 40-50 which made up 26% of
37
the respondents. The lowest number of respondents was within the 50 and above which
made 6% of employees.
4.2.4Physical Working Environment
Physical working environment in this study have been considered as one of the factors
towards employees’ performance as responded by employees through distributed
questionnaires.
Table 4. 4: Physical Working Environment
Responses
Frequency
Percent
Valid percent
Cumulative percent
Very bad
11
22.0
22.0
22.0
Bad
10
20.0
20.0
46.0
Moderate
13
26.0
26.0
68.0
Good
8
16.0
16.0
52.0
Very good
8
16.0
16.0
100.0
Total
50
100.0
100.0
Source: Researcher
Majority of the employees from the table 4.4 which constitute 26% described their
physical working environment towards performance as moderate to influence them to
stay in the office and work comfortable. 22% of the employees said the physical
working environments very bad for them stay in the office and work comfortable.20%
of the employees describe the physical working environment towards performance as
bad for them stay in the office and work comfortable while 16% of employees said
their physical working environment is good and the remaining 16% of employees was
very good for them and work comfortable. Majority of employees agree that there
exists a strong relation between physical working environment and motivation for them
to perform. This shows that it is the responsibilities of the organization to provide
friendly working environment which will influence employees to work comfortable and
perform their job.
38
4.2.5 Workplace Noise Distraction
The table 4.5 explained the presence of how noise distractions at the working place
affected employees’ performance.
Table 4.5 : Workplace Noise Distraction
Responses
Frequency
Percent
Valid
percent
Cumulative
percent
Strongly disagree
5
10.0
10.0
20.0
Disagree
15
30.0
30.0
30.0
Agree
11
22.0
22.0
52.0
Strongly agree
19
38.0
38.0
100.0
TOTAL
50
100.0
100.0
Source: Researcher
From the table 4.5,38% of employees are strongly agree that presence of noise
distractions at the working place affects their performance negatively while30% of the
employees disagree that the noise at their workplace distracts them. 22% of employees
agree that the noise distractions at the working place affect their performance. The
remaining 10% of employees strongly disagree that noise at their work place distracts
them. Workplace noise distraction has impact on employees’ performance as resulted
to uncomfortable and loosing employees’ concentration in performing their task.
4.2.6 Employee Performance Feedback
The following responses explained how employees performance feedback applied by
supervisor towards employees performance.
39
Table 4.6: Employee Performance Feedback
Responses
Frequency
Percent
Valid
percent
Cumulative
percent
Always
8
16.0
16.0
16.0
Usually
10
20.0
20.0
40.0
Sometimes
16
32.0
32.0
68.0
Rarely
8
16.0
16.0
32.00
Never
7
14.0
14.0
100.0
Not sure
1
2.0
2.0
Total
50
100.0
100.0
Source: Researcher
As shown from the table 4.6, 32% of the employees said they are sometimes receiving
performance feedback from their supervisor, followed by 20% who said they are
usually get performance feedback from their supervisor. 16% of the employees said
they are rarely getting performance feedback from supervisor and another 16% said
they are always receive performance feedback whereas 14% said they are never receive
their performance feedback and lastly 2%not sure on receiving performance feedback
from the supervisor. Employee performance feedback contributes on employee
performance because it consists of both positive feedback on what the employee is
doing right as well as feedback on what requires improvement.
4.2.7 Communication of Organization Goals and Strategies
The table 4.7 described the importance of communication of organization goals and
strategies towards employees’ performance.
40
Table 4.7: Communication of Organization Goals and Strategies
Responses
Frequency
Percent
Valid
percent
Cumulative
percent
Strongly disagree
6
12.0
12.0
50.0
Disagree
6
12.0
12.0
38.0
Agree
18
36.0
36.0
86.0
Strongly agree
20
40.0
40.0
100.0
Total
50
100.0
Source: Researcher
From the table 4.7, 40% of the employees said they strongly agree the organization
communicates its goals and strategies to them. 36% of the employees also said they
agree that, the organization’s goals and strategies are communicated to them. Also 12%
of the employees disagree that goals and strategies of organization are communicated
to them. Another 12% of the employees said they strongly disagree that the
organization’s goals and strategies are communicated to them. Communication of
organization goals and strategies helps the employees to achieve what the organization
is in business for and fulfill its organization mission and vision.
4.2.8 Job Aid
The following response explained the presence of job aid at the organization which
contribute son employees’ job performance.
Table 4.8: Job Aid
Response
Frequency
Percent
Valid percent
Cumulative percent
Strongly disagree
5
10.0
10.0
20.0
Disagree
5
10.0
10.0
36.0
Agree
15
30.0
30.0
52.0
Strongly agree
25
50.0
50.0
100.0
Total
50
100.0
100.0
Source: Researcher
41
The table 4.8 defines that, 50% of the employees are strongly agree that the presence of
job aid at the organization will contribute much in their job performance.30% of thee
Employees agree on the presence of job aid at the organization will contribute their job
performance while 10% of the employees are disagree on the use of job aid to enhance
performance. Another 10% of the employees strongly disagree on the presence of job
aid being the factor of their performance. The presence of job aid at the organization
supports employees to perform and plan for the development, made their work to be
easier and help to minimize error rates.
4.2.9 Employee Recognition as Individual
Employee recognition as individual was considered to be important factor towards
employee performance. The following were the response.
Table 4.9: Employee Recognition as Individual
Response
Frequency
Percent
Valid percent
Cumulative percent
Always
8
16.0
16.0
16.0
Usually
10
20.0
20.0
36.0
Sometimes
16
32.0
32.0
68.0
Rarely
8
16.0
16.0
84.0
Never
7
14.0
14.0
98.0
Not sure
1
2.0
2.0
100.0
Total
50
100.0
100.0
Source: Researcher
As shown from table 4.9 that, 32% of the employees said they are sometimes
recognized as individual, followed by 20% who said they are usually recognized as
individuals in the organization. 16% of the employees said they are rarely recognized
as individuals and another 16% said they are always recognized as individuals whereas
14% said they are never recognized as individuals by the organization. 2% said they
not sure if they are recognized as individuals in the organization or not. Being not
42
recognized as individual has negative impact on employees performance because of no
feeling exist between them and the organization which occasionally demoralize them as
they cannot air their views.
4.2.10 Communication between Employees
The responses from the table 4.10 described how employees are given opportunity to
interact with other employees on a formal level towards their job performance.
Table 4.10: Communication between Employees
Responses
Frequency
Percentage
Valid percent
Cumulative percent
Strongly disagree
6
12.0
12.0
12.0
Disagree
4
8.0
8.0
20.0
Neither agree
2
4.0
4.0
24.0
Agree
17
34.0
34.0
58.0
Strongly agree
21
42.0
42.0
100.0
Total
50
100.0
100.0
Source: Researcher
From the table 4.10, 42% of the employees strongly agree that they receive enough
opportunity to interact with other employees on a formal level. On the other hand, 34%
of the employees said they agree that the organization gives them the opportunity to
interact with other employees while 12% said they strongly disagree that they are
allowed to interact with their fellow colleagues on a formal level. 8% of employees
said they disagree that the organization allows them to interact with other employees
and 2% says that they neither agree nor disagree that the organization allows them to
interact with other employees on a formal level. Communication between employees
promotes trust and loyalty among them and encourages better team work and
relationship shows communication system at the workplace which resulted in employee
performance.
43
4.2.11 Employee Career Advancement
In table 4.11 there were response on employee career advancement in the organization.
Table 4.11: Employee Career Advancement
Responses
Frequency
Percent
Valid
percent
Cumulative
percent
Strongly disagree
4
8.0
8.0
8.0
Disagree
10
20.0
20.0
28.0
Neither agree
4
8.0
8.0
36.0
Agree
20
40.0
40.0
76.0
Strongly agree
12
24.0
24.0
100.0
Total
50
100.0
100.0
Source: Researcher
Majority of the employees from table 4.11 which representing 40% said they agree to
have a clear path for career advancement in the organization while 24% said they
strongly agree to have a clear path for career advancement.20% of the employees said
they disagreed to have a clear path of career advancement in the organization whereas
8% said they neither agreed nor disagreed of having clear path of career advancement.
8% of the employees on other hand said they strongly disagreed to having a clear path
for career advancement. By having clear path for career advancement in the
organization helps in employee performance by working comfortable and increase
organization productivity.
4.2.12Employee Relationship with Supervisor
The responses in table 4.12 described the employee relationship with supervisor
towards job performance.
44
Table 4.12: Employee Relationship with Supervisor
Responses
Frequency
Percent
Valid percent
Cumulative percent
Very bad
3
6.0
6.0
16.0
Bad
2
4.0
4.0
28.0
Moderate
6
12.0
12.0
48.0
Good
25
50.0
50.0
68.0
Very good
14
28.0
28.0
100.0
Total
50
100.0
100.0
Source: Researcher
From the table 4.12, 50% of the employees said to have a good relationship with their
supervisor, whereas 28% said to have a very good relationship with their supervisor.
12% of employees said to have moderate relationship with their supervisor while 6%
said to have very bad relationship with their supervisor and remaining 4% of
employees have bad relationship with their supervisor. Employee relationship with
supervisor contributes on job performance because a supervisor act as advocate for
employees by gathering and distributing the resources needed by the employees which
provide positive encouragement for a job well done.
4.2.13 Employee Job Security in the Organization
The following were the response regarding the presence of employee job security in the
organization towards their performance.
Table 4.13: Employee Job Security in the Organization
Responses
Frequency
Percent
Valid percent
Cumulative percent
Very bad
0
0
0
0
Bad
0
0
0
0
Moderate
15
30.0
30.0
75
Good
25
50.0
50.0
100.0
Very good
10
20.0
20.0
Total
50
100.0
100.0
Source: Researcher
45
From the table 4.13 the majority of employees who represent 50% describe to have
good job security within the organization whereby 30% described their job security in
the organization as moderate. The remaining 20% said their job security in the
organization is very good in their staying. Employee job security in the organization
contributes on employee performance because it plays a vital role in attract, keep and
motivate them to perform their assigned task.
4.2.14 Clear Definition of Task
The following were the response on employees’ clear definition of task.
Table 4.14: Clear Definition of Task
Responses
Frequency
Percent
Valid
percent
Cumulative
percent
Strongly disagree
3
6.0
6.0
6.0
Disagree
2
4.0
4.0
10.0
Neither agree
6
12.0
12.0
22.0
Agree
14
28.0
28.0
50.0
Strongly agree
25
50.0
50.0
100.0
Total
50
100.0
100.0
Source: Researcher
From the table 4.14, 50% of the employees strongly agree to have the clear definition
of task at their workplace whereas 28% agree to have clear definition of task. 12%
neither agree nor disagree to clear definition of their task at their work place. 6% also
strongly disagree to the clear definition of task and the remaining 4% disagree to the
clear definition of task at their working place. Clear definition of task motivates
employees to perform their job effectively and to achieve organization goals.
46
4.2.15 Supervisors Rating on Communication
A supervisor has contribution on employee performance. The following were the
response from employees on rating their supervisor on communication towards their
job performance.
Figure 4. 1: Supervisors rating on communication
Source: Researcher
The figure 4.1 described that, 32% of the employees rated their supervisor’s
communication skills as been good towards their job performance while 24% rated
their supervisor as very good in terms of communication. 20% of employees said their
supervisor’s communication towards their job performance is average and 18% of
employees rated their supervisor as excellent in terms of communication. The last 6%
of employees said they are poor with their communication skills. In order to gain the
employees performance, both employees and supervisor needs to play their part of
relationship commitment that leads to positive result to the performance.
4.2.16 Supervisors Rating on Planning and Organizing
A good supervisor needs to be competent in planning and organizing at the working
place. The responses in figure 4.2 explained how employees rated their supervisor on
planning and organizing at their working place.
6%
20%
32%
24%
18%
Poor
Average
Good
Very good
Excellent
47
Figure 4.2: Supervisors rating on planning and organizing
Source: Researcher
As shown from the figure 4.2, 30% of employees rated their supervisor being good in
terms of planning and organizing at their workplace towards performance whereas 26%
responded by saying their supervisor rate in planning and organizing towards their
performance is average. 22% said that their supervisor contribution towards their job
performance is very good in planning and organizing while 20% rated their supervisor
as excellent when it comes to planning and organizing. Lastly is 2% of employees who
rated their supervisor are poor. Supervisor’s ability on planning and organizing helps in
getting their job done by guiding employees on operational process.
4.2.17 Supervisors Rating on Directing and Coordinating
The following were the response from employees on rating their supervisor on
directing and coordinating towards their job performance.
2%
26%
30%
22%
20%
Poor
Average
Good
Very good
Excellent
48
Figure 4.3: Supervisors rating on directing and coordinating
Source: Researcher
Majority of employees from the figure 4.3 represent 40% rated average to their
supervisor when it comes to directing and coordinating towards their job performance.
30% of employees responded by saying their supervisor are very good in directing and
coordinating activities and as such they feel very much comfortable working with them
while 30% of the employees who responded said their supervisor are good with
directing and coordinating. Supervisor’s competence on directing and coordinating
contribute on employees’ performance if the supervisor is having a very good
communication skill especially during directing and coordinating on the training
program, the employees will probably increase their competency and job performance.
4.2.18 Supervisors Rating on Job/Technical Knowledge
The responses from figure 4.4 described how employees rated their supervisor on
job/technical knowledge towards their job performance.
0%
40%
30%
30%
0%
Poor
Average
Good
Very good
Excellent
49
Figure 4.4: Supervisors rating on job/technical knowledge
Source: Researcher
The figure 4.4 described that, 54% of employees responded by saying their supervisor
are very good in job/technical knowledge towards performance. 20% of employees also
responded by saying their supervisor have good job/technical knowledge towards
performance whereas 18% said their supervisor are excellent with their job. The
remaining 8% of employees rated their supervisor being average in terms of
job/technical knowledge towards job performance. Supervisor’s job/technical
knowledge has contribution on employee performance because a supervisor is regarded
as an experience leader who can solve employee problems by establishing objectives,
selecting program method and techniques which leads to positive result to the
performance from employee.
4.2.19 Supervisors Rating on Interpersonal Relationship
The following were the employees’ response on rating their supervisor on interpersonal
relationship towards their job performance.
50
Figure 4.5: Supervisors rating on interpersonal relationship
Source: Researcher
From the figure 4.5, 32% of employees responded by rating their supervisor’s
interpersonal relationship is good at the working place. 26% of employees rated their
supervisor being very good in terms of their interpersonal relationship while 16% rated
their supervisor as excellent in interpersonal relationship. Some of the employees said
their supervisor interpersonal relationship is poor at the working which represent 14%
of employees whereas 12% said their supervisor’s interpersonal relationship is average
towards job performance. Supervisor’s interpersonal relationship contributes on
employees’ performance in terms of delivering the information or process on the job to
the employees at the working place. If full commitment is given, it leads to positive
result to the performance from the employees.
4.2.20 Work Incentives towards Employee Performance
Work incentives were also considered to be the important factor towards employees’
performance in this study. The following were the response from employees on how
work incentives contribute towards their job performance.
14%
12%
32%
26%
16%
Poor
Average
Good
Very good
Excellent
51
Figure 4.6: Work incentives towards employee performance
Source: Researcher
As shown from the figure 4.6, 50% of employees were strongly agree that work
incentives in the organization will motivate them and hence employee performance.
Then 28% of employees agreed on work incentives being as the motivation factor for
them to perform.12% of employees are neither agreed on work incentives being the
factor for them to perform while 6% of employees were strongly disagree on work
incentives as the motivation factor for performance. The remaining 4% of employees
disagreed on work incentives as a factor of employee performance. Work incentives
have impact on employee performance because by having the work or job done on
track, employers could be able to monitor their employees and help them to improve
their performance. 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.
6
4
12
28
50
0
10
20
30
40
50
60
Strongly
disagree
Disagree
Neither agree
Agree
Strongly agree
52
4.2.21 Length of Working Period
In this study length of working period was also considered towards employee’s
performance as presented in the figure 4.7.
Figure 4.7: Length of working period
Source: Researcher
Majority of employees as shown from the figure 4.7 according to them have worked
with the organization for a period of 2-5 years representing 50%, followed by 20% of
employees who have worked with the organization within the period of 6 month-
2years. 18% of the employees have worked with the organization for a period of 5-10
years and 8% have worked with the organization over 10 years. 4% of the remaining
respondents have worked with the organization for less than 6 months. Length of
working period on employee performance is determined by person’s ability to perform
also including the opportunity and willingness to perform as well.
4.2.22Referral of a Friend to Work with the Organization
The following were the response from employees regarding their referral of a friend to
work with the organization.
53
Figure 4.8: Referral of a friend to work with the organization
Source: Researcher
From the figure 4.8, 44% of the employees answered by saying they will definitely
refer a friend to work with the organization whereas 40% said they will probably
recommend a friend to work with the organization. 10% of the employees on the other
hand said they are not sure if they will recommend a friend to the organization and 6%
said they will probably not refer a friend to work with the organization. Organization
has to provide friendly working environment which attract and influence employees to
work comfortable and perform their job effectively as a means of referral of a friend to
work with the organization.
4.2.23 Fairly Treatment of Rewarding Employees
In this study fairly treatment of rewarding employees was also considered towards
employees’ performance as presented in the figure 4.9.
54
Figure 4.9: Fairly treatment of rewarding employees
Source: Researcher
The figure 4.9 describe that, 36% of the employees said to some extent the organization
has fairly treatment on rewarding employees who perform well. 26% of employees
responded by saying there is mostly fairly treatment on rewarding performers while
20% of employees said there is always fairly treatment on rewarding employees who
perform well.14% of the employees responded by saying there is often fairly treatment
on rewarding performers and the remaining 4% said the organization is not at all fair on
treatment for rewarding employees who performs well. The organization needs to
determine what motivates its employees by setting up formal and informal structures
for rewarding which enhances employees’ performance.
4.3 Discussion of the Findings
Findings show that almost 50% of employees agreed that there exists a strong relation
between physical working environment and motivation for them to perform. This
shows that it is the responsibilities of the organization to provide friendly working
environment which will influence employees to work comfortable and perform their
55
job. By having a good environment, the employees could apply their energy and their
full attention to perform workVischer, (2007).
Cummings and Schwab (1973) mentioned the connection between leadership behavior
and employees performance. It is further supported by Maritz (1995)who reported that
effective leadership behavior facilitates the attainment of the subordinate’s desires,
which then results in effective performance. A finding shows that 32% of respondents
agreed with the thinking that their head of department communicate effectively which
is supported by Salacuse (2007) who indicates that leaders are now required to lead by
negotiation, they need to communicate effectively by appealing to the interests of the
followers. 40% of respondents agreed on employees’ participation in meetings and
sharing ideas. The findings are supported by Cassar(1999) that employee participation
and involvement in decision making have a positive association with positive work
attitudes and employee commitment. 40% of the respondents agreed with the statement
that good communication environment at work place is necessary to improve
performance”. Findings are supported by Chen (2011) who found that there are positive
relationships between organizational communication, organizational commitment and
job performance. Kotter, (1988) noted that effective organizational communication
promotes productivity.
Findings show that 32% of respondents rated their supervisor interpersonal relationship
at the working place as good. 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).
56
CHAPTER FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This section contains the major findings that came out of the study and the conclusion
drawn. It covers conclusion and recommendations areas for further study.
The study investigated the impact of working environment on employees’ performance
at Institute of Finance Management in Dar es Salaam region. It sought to find out
whether working environment can influence employee’s performance at the institute.
Descriptive sample survey was used to carry out the study. This was because the study
was intended to measure the respondents’ views about the issue. Sampling technique
was respectively used to select the respondents for the study. In all, Fifty 50
respondents comprising Twenty Five (25) Junior staff and Twenty Five (25) Senior
staff were involved in the study. The research instrument that was used in the data
gathering was a questionnaire. To give direction to the study, the following research
questions were asked, how does performance feedback improve employees’
performance? How can job aid enhance employees’ performance? What are the
physical work environments that add towards employees performance? Which
contribution does a supervisor has towards employees’ performance? The data gathered
were analyzed using SPSS. It was found out that most factors that comprise workplace
influence employee’s behavior. This is however the working environment affects the
employee in one way or the other and employees play a very crucial role in an
organization like Institute of Finance Management.
57
5.2 Summary of the Main Findings
The study revealed that the organization working environment had an impact on
members as far as respondents are concerned. The study found that, the organization
needs to improve its physical working environment so that to influence employees to
stay in the office, work comfortable and perform their job. The study also revealed that
employees are sometimes not recognized as individuals i.e. no feeling exist between
them and the organization and this occasionally demoralize them as they cannot air
their views. Through this study it revealed that employees’ performance depended
much on the presence of job aid at the organization. This means by having 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. It was also found that, the
organization to some extent has fairly treatment on rewarding employees who perform
well. The study also revealed that employee’s 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 distraction, supervisor’s
interpersonal relationship with subordinates, presence of job aid, the use of
performance feedback and improve of work incentives in the organization so that to
motivate employees to perform their job.
5.3 Implications of the Findings
In order to improve the performance, management can consult the employees before
decision making to seek their suggestions. In order to rectify that the management has
to encourage their employees to experiment new methods and try out creative ideas
which will results a positive impact on their performance. The management has to
58
organize more training and development programs for improving the performance of
employees. Since most of the employees are not satisfied with the monetary benefits,
the management has to consider this as a serious issue and try to give more salaries
according to their years of experience as well as improving their physical working
environment. The management has to look into the grievances and complaints of the
employees on observable phenomena which are influenced by emotions or personal
prejudices. Promotions have to be given according to their experiences and
performance. The management must take an active role in not only defining the
physical environment of the workplace and making it conducive for workers but also
alter the management style to suit the employees. This refers to changing aspects like
ethics, behaviour, commitment, professionalism, drive and interpersonal relations in
employees for the better. Supervisors must reduce the tendency to micromanage and
instead display that they have confidence in the ability of their team members and trusts
them to do their work efficiently. If the supervisor treats his subordinates as
professionals then there is no reason that they should not behave in that way. Such an
attitude promotes trust and loyalty among the employees and encourages better
teamwork among them. Besides, they develop a sense of ownership towards the
organization. Creating a work environment in which employees are productive is
essential to increased profits for organization, corporation or small business. Principals
of management that dictate how, exactly, to maximize employee productivity center
around two major areas of focus: personal motivation and the infrastructure of the work
environment which have influence on employees’ performance.
59
5.4 Conclusion
Working environment plays a vital role in motivating employees to perform their
assigned job. Since money is not a sufficient motivator in encouraging the workplace
performance required in today’s competitive business environment. The ability to
attract, keep and motivate high-performance is becoming increasingly important in
today’s competitive organizational environments. The study also revealed that
employee’s will improve their performance if the problems identified during the
research are tackled by the management. At the end of the research, it was realized that
the employee’s working environment find themselves in affect their productivity
greatly. Therefore it is the responsibilities of the organization to provide friendly
working environment which will influence employees to work comfortable and
perform their job.
5.5 Recommendations
Based on the results of findings, the following are recommendations for future
implementation.
Periodic meetings with employees to air their grievances to management to serve as a
motivating factor to the employees. Managers should also be counseled on their
relationships with their subordinates.
The organization should have a good program in place for their employees work life
balance as this can be a great factor to motivate and retain them.
60
Management should try as much as possible to build a work environment that attracts,
retain and motivate its employees so that to help them work comfortable and increase
organization productivity.
Employers should make available adjustable and flexible furniture to all workers in
order to make them more comfortable. This in the long run keeps the employees
healthy.
Employers should have in place a good working condition for their employees in order
to boost their morale and made them more efficient. An example is making their
benefit programs to suit 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.
5.6 Limitations of the Study
This study looked at employees working at Institute of Finance Management in Dar es
Salaam Region regarding the impact of working environment and their job
performance. However the limitations could be considered as an opportunity for future
research on the effect of work environment and performance of employees in different
units. It may also include both public and private sectors.
61
5.7 Suggested area for Further Study
The study explored only impact of working environment on employees’ performance at
Institute of Finance Management. Therefore, other researchers should conduct study in
other companies or institutions including those located up country. Also further study
should aim to explore advantages which the organizations reap on improving working
environment.
62
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APPENDICES
THE IMPACT OF WORKING ENVIRONMENT ON EMPLOYEES
PERFORMANCE: THE CASE OF INSTITUTE OF FINANCE MANAGEMENT
IN DAR ES SALAAM.
INSTRUCTIONS:
Please READ each question carefully.
ENCIRCLE the option you think best suits you.
Encircle only ONE option for each question.
Name :( optional)…………………..Designation:………………….Sex ……………….
Date…………………
Statement
Very bad
Bad
Moderate
Good
Very good
1
How would you describe
your office building
spaceinfluence you to
stay in the office and
work comfortably?
1
2
3
4
5
2
How would you describe
your relationship with
fellow workers?
1
2
3
4
5
3
How would you describe
your relationship with
1
2
3
4
5
70
your supervisor?
4
What is the level of
feedback that you
receive from your
supervisor?
1
2
3
4
5
5
How would you describe
your job security in this
organization?
1
2
3
4
5
5. Due to overall office environment can you complete your daily tasks easily?
1. Not at all
2. To some extent
3. Often
4. Mostly
5. Always
6. Do you feel that employees are recognized as individuals?
1. Always
2. Usually
3. Sometimes
4. Rarely
5. Never
6. Not sure
7. Would you refer a friend to apply for a job at this organization?
1. Definitely
2. Probably
3. Not sure
4. Probably not
71
5. Definitely not
8. My job requirements are clear
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
9. I have a clear path for career advancement.
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
10. Does the organization clearly communicate its goals and strategies to me?
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
11. How would you rate your Supervisor in each of the following areas? Please assign
a rating on a scale from 1 to 5, where 1 represents ‘Poor’ and 5 represents ‘Excellent’.
72
Poor Average Good Very Good Excellent
Communication 1 2 3 4 5
Planning and organizing 1 2 3 4 5
Directing and coordinating 1 2 3 4 5
Job/Technical knowledge 1 2 3 4 5
Interpersonal relationship 1 2 3 4 5
THANK YOU FOR YOUR PARTICIPATION’
73
INTERVIEW QUESTIONS FOR RESEARCH STUDY
THE IMPACT OF WORKING ENVIRONMENT ON EMPLOYEES
PERFORMANCE: THE CASE OF INSTITUTE OF FINANCE MANAGEMENT
IN DAR ES SALAAM.
Name :( optional)…………………..Designation……………….….Sex ……………….
Date……………………………………..
1. For how long have you been working at Institute of Finance Management?
2. What are your roles and responsibilities for the Institute to attain its goals?
3. Do you think the working environment at this organization influence you to
work comfortably and perform well?
4. From your experience, does the organization goal have anything to do with your
job performance?
5. Which work incentives from the organization helps you in job performance?
6. How does your supervisor contribute in job performance?
7. From your experience, do you think there is fairly treatment of rewarding
employees who performs well?
8. What will be your recommendation about the working environment to enhance
job performance?
9. Does performance feedback applied in this organization to help in performance
maintenance?
10. What can you say about leadership style from your supervisor and the whole
organization as far as working environment and job performance is concern?
11. How would you describe your relationship with other workers?
12. How does open and free communication from your supervisor applied on job
performance?
THANK YOU FOR YOUR PARTICIPATION’