EFFECT OF BUSINESS ENVIRONMENT ON EMPLOYEE PRODUCTIVITY (A CASE STUDY OF PIPELINE AND PRODUCT MARKETING COMPANY)

ABSTRACT

Many enterprises limit their productivity enhancement of employees to the acquisition of skills. However, about 86% of productivity problems reside in the business environment of organizations. The business environment has effect on the performance of employees, the type of business environment in which employees operate determines the way in which the company prospers. The objective of the study is to analyze the impact of business environment on the future workers productivity, primary data were used for this study that was gathered through structured questionnaires with close ended questions, simple percentage was used to test the research hypothesis. The results of simple percentage indicate that employee’s productivity problems are within the business environment. Conducive business environment stimulates creativity of workers, improvement in work environment and bad working condition contributes to low productivity of employees.

TABLE OF CONTENTS

Title page

Certification         ---      ---      ---      ---      ---      ----     ---      ---                i

Dedication ---      ---      ---      ---      ---      ----     ---      ---                ii

Acknowledgement         ---      ---      ---      ---      ---      ---                iii

Table of Contents          ---      ---      ---      ---      ---      ----     ---                iv

Abstract      ---      ---      ---      ---      ---      ----     ---      ---                vi

CHAPTER ONE: INTRODUCTION

1.1            Background to the study         ---      ---      ---      ---      ---      ---      1       

1.2            Statement of the Problem        ---      ---      ---      ---      ---      ---      2

1.3            Research Questions       ---      ---      ---      ---      ---      ---      3

1.4            Objective of the Study---         ---      ---      ---      ----     ---      ---      3

1.5            Scope of the Study---     ---      ---      ---      ----     ---      ---      4

1.6            Significances of the Study---    ---      ---      ---      ---      ---      4       

1.7            Limitation of the study---        ---      ---      ---      ----     ---      ---      4

1.8            Operational Definitions of Terms --- ---      ---      ---      ---      5

CHAPTER TWO: LITERATURE REVIEW

2.1     Concept of Human Resource  Management-        ---      ----     ---      8

2.2      Types of Business Environment --- ---      ---      ---      ---      14

2.3     General Effect of Business/Work Environment ---                 ---      15

2.4     Factors that Influence Employees’ Productivity ---       ---      ---      17

2.5     Strategic Initiatives to Improve Work Place Environment ---  19

CHAPTER THREE: RESEARCH METHOD

3.1     Research Design---         ---      ---      ---      ---      ---      ---      22

3.2     Population of the Study ---      ---      ---      ---      ---      ---      22

3.3     Sample/Sampling Techniques ---      ---      ---      ---      --       23

3.4     Instrumentation ---         ---      ---      ---      ---      ---      ---      ---      24

3.5     Method of Data Collection --- ---      ---      ---      ---      ---      24

3.6     Method of Data Analysis        ---      ---      ---      ---      ---      ---      25

CHAPTER FOUR: DATA PRESENTATION ANALYSIS AND INTERPRETATION

4.1     Data Presentation ---      ---      ---      ---      ---      ---      ---      26

4.2     Discussion of Findings ---      ---      ---      ---      ---                33

CHAPTER FIVE: SUMMARY CONCLUSION AND RECOMMENDATIONS

5.1     Summary--- ---      ---      ---      ---      ---      ---      ---                35 

5.2     Conclusion ---      ---      ---      ---      ---      ---      ---                36

5.3     Recommendations         ---      ---      ---      ---      ---      ---                36

References                                                                                

Appendix 

CHAPTER ON

INTRODUCTION

1.1            Background to the Study

Brenner (2004) assert that the ability of employees within an organization to share knowledge throughout the system depends on the conjunctions of their business environment. However, the survey revealed that corporate executives from various industries disclosed that many organizations do not fully leverage their physical work environment to enable increase collaboration, innovation and improve work effectiveness. It is also observed that employees tend to be more productive in a well-fortified business environment.

More so, the quality of comfort derivable from business environment determines the level of satisfaction and productivity of workers. Workers productivity cannot be optimal if conditions of business environment are not favourable.

Improved business environment will enhance employee productivity for example; standard health facilities will protect the lives of the workers in case of any hazard on the job they have some assurance of some income. This assured income tends to minimize any inhibitory fears of the workers devoting themselves fully to their work. 

The theme of this research lies on the fact that both management and workers of enterprises are less considerate of work environment as having a great influence on productivity of workers as resulting from workers view of low productivity may stem from poor pay system, absence of fringe benefits, inappropriate leadership style, wrong job location, unfavorable organizational change.

Consequently, the issue arises as to which type of business environment be maintained by an enterprise in order to enhance workers productivity. The research will center on workers’ productivity, conductive work environment, eradicates the problem of psychological pains of the workers, stress, ill health of workers etc.   

1.2             Problem of the Statement

The work place environment in a majority of industry is unsafe and unhealthy, these includes poorly designed workstations, unsuitable furniture, lack of ventilation, inappropriate lighting, excessive noise, insufficient safety measures in fire emergencies and lack of personal protective equipment. People working in such environment are prone to occupational disease and it impacts on employee’s performance. Thus productivity is decreased due to the work place environment; it is a wide industrial area where the employees are facing a serious problem in their work place like environmental and physical factors. So it is difficult to provide facilities to increase their performance level. 

1.3            Research Questions

1.               What are the possible effects of some identified factors in the external work environment on workers’ productivity?

2.               To what extent are factors in the internal work environment perceived as having adverse effects on productivity?

3.               How important are some specifically named facilities in the work environment to enhancing workers’ productivity?

4.               To what extent do factors in the workers place of residence have effect on their productivity?

1.4            Objectives of the Study

To be precise, this project work will seek fulfill the below listed objectives.

1                     To understand relationship between the employees and their business environment.

2                     To analyze workplace factors affecting the employees’ performance.

3                     To suggest the measures to improve the working conditions for better performance.

4                     The proper presents the analysis of the working environment of different public sector organizations and the research done to understand the performance level of the employees due to the work environment.

5                     Also attempt has been made to identify the motivational factors to attain the target due to the widespread.

In the establishment of public sector organizations, the study has been carried out with one public sector organization.  

1.5     Scope of the Study

This project aims at suggesting few interactions to provide better work environment of pipeline and product marketing company and any other organizations which is the outcome of the in-depth analysis of the work environment.

1.6     Significance of the Study

The rate at which organizations are folding up is increasing, so many strategies, management theories have been adopted but yet no positive result has been made. Managers have failed to realize the environment in influencing the performance of the employees.This project work will enlighten managers on the importance of this project topic.

1.7     Limitation of the Study

The researcher encountered a limitation in regards to availability of information; this is due to the institutions working ethics. It was difficult to get access to vital information since it was treated as confidential and the targeted respondents number was not attained since some employees were no leave inadequate funds and availability of time also become a limitation.

1.8     Operational Definition of Terms

Environment: This refers to all forces influencing negatively or positively the and development of an organization.

Business Environment: It is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business for example, a health and safety regulation is an external factor that influences the internal environment of business operation. Additionally, some external factors are beyond your control, a business organization cannot exist in a vacuum, it need living persons, natural resources and places and things to exist. The sum of all these factors and forces is called the business environment.

Micro Environment/Internal Environment of Business: Micro environment comprises of the factors in the immediate environment of the company that affect the performance of the company it includes the suppliers, competitors, pressure groups and the general public. Supplier form an important factor of the micro environment of business as the importance of reliable sources of supply are obvious, suppliers include the financial labour impute, stakeholders, bankers and other similar organizations that supply money to the organization are also deemed as suppliers. Managers always strive to ensure a steady flow of inputs of the lowest price; customers are also important factors in the internal environment of business. The customers or the clients absorb the output of an organization and a business exists to meet the demand of the customers. 

Customers could be individuals, industries, government and other institutions, labour force is also an important part of the internal environment of business. Other than these, the business associates, competitions, regulatory agencies and the marketing intermediaries are also a part of the micro business environment.

Macro Environment/External Environment of Business: The forces and institution outside of the organization that can potentially affect the performance of the organization that come under the external environment of Business, the macro environment of business consists of the economic, demographic, natural, cultural and political forces. The external environment of business is often categorized into the economic environment, political and government environment, social cultural environment and the international environment.

Environment: This is a location where a task is completed, when pertaining to a place of employment, the work environment involves the physical geographical location as well as the immediate surroundings of the workplace such as a construction site or office building. Typically involves other factors relating to the place of employment such as the quality of the air, noise level, and

Additional parts and benefits of part-time or full-time under a contact of employment, whether oral or written, express or implied and has recognized rights and duties, also called worker.

Productivity can be defined as a measure of the efficiency of a person, machine, factory, system, etc in converting inputs into useful outputs. Productivity is computed by dividing average output per period by the total costs incurred or resolves (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency. Employee productivity sometimes referred to as workforce productivity is an assessment of the efficiency of a worker or group of workers.

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