WORK ENVIRONMENT AND EMPLOYEE PRODUCTIVITY IN    SELECTED MANUFACTURING FIRMS IN RIVERS STATE

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Abstract

This study examined the impact work environment on employee productivity in selected manufacturing firms in Rivers State. The main objective of the study is to determine if management styles relates to employee productivity in manufacturing firms in Rivers State, to determine if working condition relates to employee productivity in manufacturing firms in Rivers State and to determine if work life balance relates to employee productivity in manufacturing firms in Rivers State. The population of the study was made up of 120. The sample size of 92 respondents was drawn using the Taro Yemen formula. The question was used to collect information from the respondents The simple percentage was used to analyse the research question Finding of the study examined the relationship between work environment and employee productivity, thus it is recommended that organization should map out programme for provision of good work environment to increase productivity and of promoting occupational safety and health of workers, the management should ensure that there is adequate and proper improvement of working environment of employee’s so as to enhance their morale to work efficiently and effectively and the work environment of the Indorama Petrochemical has positive impact on the productivity of its employees so the current must be maintained for the employees to be continued to be productive for Indorama Petrochemical.

Table of Contents

`Title Page       i

Cover Page      i

Declaration      iii

Certification    iv

Dedication      v

Acknowledgements    vi

Abstract          vii

Table of Contents       viii

List of Tables  x

List of Figures xi

CHAPTER 1   1

INTRODUCTION     1

1.1 Background of the Study 1

1.2 Statement of the problem 3

1.3 Purpose/Objectives of the Study………………………………….…………4

1.4 Research Questions           4

1.5 Significance of the Study 5

1.6 Research Hypotheses        4

1.7 Scope/Limitations of the Study:   Error! Bookmark not defined.

1.8 Definition of Terms:         6

CHAPTER 2   8

LITERATURE REVIEW      8

2.1 Conceptual Framework     8

2.1.1 Work Environment        8

2.1.2 Dimensions of Work Environment        12

2.1.3 Concept of Employee Productivity       15

2.1.4 Measures of Employee Productivity      19

2.1.5Relationship between Working Environment and Employee Productivity        21

2.3 Empirical Framework        28

CHAPTER 3   30

RESEARCH METHODOLOGY      30

3.1 Research Design   30

3.2 Population of the Study    30

3.3 Sample Size Determination           31

3.4 Sampling Techniques        32

3.5 Method of Data Collection           32

3.6  Method of Data Analysis            33

3.7 Questionnaire Design        34

3.7       Reliability and Validity          34

CHAPTER 4   36

DATA PRESENTATION AND ANALYSIS          36

4.1       Data Collection and Presentation      36

4.2 Data Analysis        36

4.4 Discussion of Findings     42

CHAPTER 5   44

SUMMARY, CONCLUSION AND RECOMMENDATIONS      44

5.1 Summary   44

5.2 Conclusion            44

5.3 Recommendations            45

References      46

Appendix I      55

Appendix II    56

List of Tables

Table 4.1 Questionnaires Administration and Retrieval         36

Table 4.2: show age bracket of respondents   36

Table 4.3: Showing sex of respondents          37

Table 4.4: Showing academic qualification    37

Table 4.5: Marital status          38

Table 4.6: Management Style and Employee Productivity of Indorama       38

Table 4.7: Working Condition and Employee Productivity in Indorama       39

Table 4.8: Worklife Balance and Employee Productivity in Indorama          39

Table 4.10: Contingency Table           40

List of Figures

Fig. 2.1: A Conceptual Framework showing the relationship between Work environment and employee productivity………………………………………..8

CHAPTER 1

INTRODUCTION

1.1 Background of the Study

Employee Productivity is a measure of the quantity and quality of work done, considering the cost of the resources used.   The more productive an organization, the better its competitive advantage, because the costs to produce its goods and services are lower.  Better productivity does not necessarily mean more is produced; perhaps fewer people (or less money or time) was used to produce the same amount. McNamara (2003) further states that, results are usually the final and specific outputs desired from the employee.  Results are often expressed as products or services for an internal or external customer, but not always.   They may be in terms of financial accomplishments, impact on a community; and so whose results are expressed in terms of cost, quality, quantity or time. He further notes that measuring productivity involves determining the length of time that an average worker needs to generate a given level of production. Work environment is one construct that can enhance employee productivity.

Work environment can be identified as the place that one works. Hay, (2007) contends that work environment includes a friendly, well-designed, safe physical space, good equipment and effective communication, which will improve productivity. Well-designed and organized offices and work areas make significant differences to how people feel about their work. Working environment can give some depressing messages about how much the organization value employees and the standards it expects from them (Armstrong & Murlis, 2007). A satisfied, happy and hardworking employee is biggest asset of any organisation.

Lambert et al. (2001) found that environmental factors are important determinant of job satisfaction. The level of salary, promotion, appraisal system, climate management, and relation with co-workers are the very important factors. Creating better and higher performing workplace requires an awareness of how workplace impacts behaviour and how behaviour itself drives workplace performance (Armstrong & Murlis, 2007). Today’s work environment is different, diverse and constantly changing. The combination of factors has created an environment where the business needs its employees more than the employees need the business. It is the quality of the employee’s work environment that most impacts on the level of employee’s motivation and subsequent productivity. In today’s competitive business environment, organizations can no longer afford to waste the potential of their workforce (Hughes, 2007). Therefore, most organisations are making all possible efforts to make work environment more comfortable, safe and healthy. Comfortable office design motivates the employees and increases their performance to a large extent.

Hughes (2007) in a survey reported that nine out of ten workers believed that quality of work environment affects the attitude of employees and increases their productivity. Chandraseker (2011) also confirm that unsafe and unhealthy workplace environment in terms of poor ventilation, inappropriate lighting, excessive noise affect workers productivity and health. Hameed and Amjad (2009) in a survey of 31 bank branches showed that comfortable and ergonomic office design motivates the employees and increased their performance substantially. According to Abdulla et al. (2010), environmental factors represent the immediate job environment that contains skills required to perform a job, authority, autonomy, relationship with supervisors and co-workers and other working conditions. It is important for the employer 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 organisation and the use of design in office interior communicates an organisation values and identity. There is a great need for standard of working condition; it received legal backing by 1963 law and act of parliament which made it mandatory for all business organizations to provide the minimum standard of interest that will enhance the performance of employees as an objective. From the foregoing, the study seeks to examine the relationship between work environment and employee productivity in manufacturing firms in Rivers State.

1.2 Statement of the problem

            Employees use about 50 percent of their existence within work environments, which extremely affect their status of mind, aptitudes, and actions in addition to their performance (Sundstrom, 1994). Notwithstanding, the environment in the workplace of most organizations are insecure and harmful to one’s health (Perry & Porter, 1982). These comprises poor air circulation, poor personal protective equipment, inappropriate furniture, inadequate security measures in fire emergencies (absence of fire extinguishers), unnecessary noise, unfitting lighting and poorly designed workplaces. In recent time’s competitive corporate environment have created a situation where companies cannot tolerate to misuse the abilities of their staff (Armstrong & Murlis, 2007). There is important evidence that productivity advancement in Nigerian organizations has not kept pace with the growths discovered in developed countries (Killefer & Mendonca, 2006). The difficulty is that encouraging local workers is not an easy task in the mist of poor working condition. Most employees have a status for sluggishness and indolent due to their poor work environment (Wilson, 1989; Wright, 2001) and managers’ cannot do much to resolve the issue because of the firm. How managers can inspire their staff is considered to be one of the big challenges of Management” (Behn, 1995). The above situation can adversely affect organizational productivity and for that, there is need for immediate attention.

It requires a completely diverse method than what was used some years back to retain and motivate workers currently. Worker’s wellbeing and confidence are regularly consistent with respect to efficiency in the work environs. There is important evidence that productivity advancement has not kept pace with the growths discovered in the developed world (Killefer & Mendonca, 2006). The above situation can adversely affect employee productivity.

1.3       Objectives of the Study

The objective of the study is to examine the relationship between work environment and employee productivity. Specific term, the study is aimed at;

1.         To determine if management styles relates to employee productivity in manufacturing firms in Rivers State.

2.         To determine if working condition relates to employee productivity in manufacturing firms in Rivers State.

3.         To determine if work life balance relates to employee productivity in manufacturing firms in Rivers State.

1.4  Research Questions

The following questions will help to reconcile issues in this study

1.         To what extent does management style relates to employee productivity in manufacturing firms in Rivers State?

2.         To what extent does working condition relates to employee productivity in manufacturing firms in Rivers State?

3.         To what extent does work life balance relates to employee productivity in manufacturing firms in Rivers State?

1.5 Research Hypotheses

H01: To determine if management styles relates to employee productivity in manufacturing firms in Rivers State.

H02: To determine if working condition relates to employee productivity in manufacturing firms in Rivers State.

H03: To determine if work life balance relates to employee productivity in manufacturing firms in Rivers State.

1.6 Significance of the Study

Many people in an organization try to attain a higher level safety or job security in their place of work. And this study when completed should be of immense help to different organization and individuals. It will help to highlight the effect of work environment on the productivity of employees in Indorama Petrochemicals, so that the management will look into the problems with a view to make an improvement on its environment. It will enable the management to create minimum standard of good working environment for workers to achieve optimum productivity.

1.7 Scope/Limitations of the Study:

The study is delimited under the following heading: content scope, geographical scope and unit of analysis.

The study is intended to enlighten management that to create monetary incentive alone cannot motivate employees to better productivity without the provision of good environment under which they operate. Moreover, it will assist to uphold or testify the idea that good environment is very important and indispensable to growing needs of workers. It will also be beneficial to prospective students who will need some information contained in this work to guide their research work which is related to the present study.

Content Scope: The content scope of this study involves on investigation to ascertain the relationship between work environment and employee productivity The study consists of two variables work environment and employee productivity. Work environment is measured by management style, working condition and work life balance while the dependent variable is Employee productivity measure by effectiveness, efficiency and goal achievement.

Geographical Scope: This study is delineated  in Port Harcourt with special reference to Indorama Petrochemicals, Port Harcourt, Rivers State.

Unit of Analysis: The unit of analysis is both senior and junior staff of Indorama Petrochemicals, Port Harcourt at the time of the study.

 (i) The time constraint’s the time frame provision for this study was short.

(ii) Financial Constraints. Usually, a study of this nature involved some level of expenditure therefore; finance was also a limiting factor.

(iii) Inability to access the entire population of the study. Lastly, poor measurement instrument.

1.8 Definition of Terms:

Effectiveness: The degree to which something is successful in producing a desire result.

Efficiency:  this is the ability to avoid wasting material, energy, effort, money and time in doing something.

Employee productivity: It is an assessment of the efficiency of a worker or group of workers.

Employee: A person employee for wages or salaries, especially at non excutive level.

Management Style: Management style is the particular way manager goes about accomplishing these objective.

Profitability: The degree to which a business or activities yield profit or financial gain.

Work Environment: this involves the physical geographical location as well as the immediate surroundings of the workplace, such as a construction site or office building.

Worker Condition: It refers to the working environment and all existing circumstance affecting labour in the work place including job hour, physical aspect, legal right and responsibilities.

Worklife Balance:  this is a method which helps employees of an organization to balance their personal and professional lives

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