Factors Affecting Employees Performance

Science Series Data Report Vol 4, No.
6;Jun 2012
Factors Affecting Employees’ Performance: Evidence

From Pakistan
Dr.Imran Naseem, (Supervisor)
Assistant Professor, Department of Management Sciences,
COMSATS Institute of Information Technology, Abbottabad, Pakistan,
drimran@ciit.net.pk
0923335216334
Amna Sikandar,
Department of Management Sciences, COMSATS Institute of Information Technology,
Abbottabad, Pakistan,
sfskaaa@gmail.com
Nazish Hameed
Abbottabad, Pakistan.
diaishere@yahoo.com
Ruqia Khan,
Abbottabad, Pakistan.
Nainajadoon96@yahoo.com
Abstract
Now a day’s organizations are keenly concerned with employee comfort needs for
increased performance. This study measure the impact of favorable working
environment, good office design and motivations on employees’ performance. The main
objective of study is to find out the relationship between above mentioned variables and
employees’ performance. For this purpose data was collected from different
organizations in Hazara division. Findings of study shown that favorable workplace
environment, good office design and high motivations increase employees’ performance.
Keywords: Workplace Environment; Office Design; Motivations
141 SSDR@SCIENCERECORD.COM
Electronic copy available at: http://ssrn.com/abstract=2152328

Science Series Data Report Vol 4, No. 6;Jun 2012
1. Introduction
An Organization is a tool used by people to coordinate their actions to obtain something
they desire or value (R.Jones). We need to study organization because of many reasons
for example its structural complexity, interrelationship of their component groups and
their relationship with the external environment. By this we can reach the total
effectiveness of the organizational system, strategies to control its component elements
and its goals. To organize and coordinate activities and organizational functions we need
management. Management is the act of getting people together to accomplish desired
goals and objectives using available resources efficiently and effectively.
Human resource is the back bone of any organization. Human resource is most valuable
asset. Proper utilization of human resource can lead organization from bottom to top.
Therefore human resource study is a focus of researchers and special concern of
management. Human resource performance is affected by many factors positively as well
as negatively. For example workplace environment, training and development, job
satisfaction, job stress, motivation, leadership style, organizational structure,
organizational culture employee’s personality traits etc.
All organizations are concerned to find out the ways through which high level of
employee’s performance can be achieved. Researchers concluded that employee
performance is positively correlated with motivational level and also affected by
workplace environment and office design. Many efforts are done to find out strategies to
increase motivational level, favorable workplace environment and effective office design.
Human resource performance can be increase by putting efforts to factors that enhance
the employees’ motivational level, creativity, job satisfaction and comfort workplace
environment. Organizations are mainly concern with providing peaceful environment,
satisfying basic needs, increasing socio-economic status, etc.
Electronic copy available at: http://ssrn.com/abstract=2152328

There are three main categories that covers the key factors that effects employees’
performance.
1. The factors that are driven by procedures, protocols and management

requirements (workplace environment) (masterstudies.net).
2. The factors that arise from premises and office or factory design.
3. Factors those increase or decrease employees’ motivations to their work/job and

affect their performance.
Quality of workplace environment is very influential on employee’s performance.

Researches proves that environment greatly influence the speed of working, mental
ability, actions, utilization of intellectual abilities. A survey carried out on 2000
employees to find out the impact of workplace environment on employees’ productivity
showed that favorable work environment has a positive effect on productivity
(masterstudies.net). How well the workplace engages an employee impacts their level of
motivation to perform. This then influences that employee’s, error rate, level of
innovation, collaboration with other employees, absenteeism and how long they stay in
the job. Performance feedback, role congruity, defined processes, workplace incentives,
supervisor support, mentoring, opportunity to apply, goal setting and organizational
culture these entire factors effect workplace environment (Workplace environment).
Office design includes temperature, light, noise, furniture, air quality, comfort and
communication, stress free environment all these effects the level of innovation, error
rate, team collaboration, employee’s performance, speed of work and creativity
(Workplace environment).so many organizations not give importance to the office design
because office design required both time and money so these organizations still stuck
with boring, unattractive and ultimately unproductive office design. Good office design
can make a big difference in employees’ satisfaction, attraction, motivation and retention.
As a result all these things increase employees’ performance.
The study by the commission for Architecture and the Built Environment and the British
Council for offices has found even simple things such as good lighting and having
adequate daylight can reduce absenteeism by 15 percent and increase productivity by
between 2.8 percent and 20 percent (Al-Anzi N. m., 2009).
Only skills and favorable workplace environment is not enough for employees’ effective
performance. It is also very important to motivate employees for increasing their
performance. Motivations play vital role to increases or decreases performance of
employees that overall effects organizational performance.
Motivation is literally the desire to do things. It's the difference between waking up
before dawn to pound the pavement and lazing around the house all day. It's the crucial
element in setting and attaining goals and researches shows that one can influence his
own levels of motivation and self-control (basics).Pay, achievement, job security, job
satisfactions, recognition, advancement, job enrichment, decisional participation,
authority, rewards, health insurance etc. all these factors can motivate employees’ and
increase their performance.
1.1 The problem Statement

Majority of organization don’t care of workplace environment, good office design and
employees’ motivations. People working in these organizations not satisfied with their
job and not fell comfort to do their work in better way. So it is difficult for them to give
their best performance. Thus performance of employees decreases due to the unfavorable
workplace environment, uncomforted office design and lack of motivations. This study
examines the factors that contribute to decrease and increase employees’ performance.
Like factors that lead a workplace environment unfavorable and poor office design
effects, impact on employee’s performance negatively and decrease their performance.
While motivations, motivate employees and increase their performance.
2. Literature Review
To utilize human resources in a planned manner is very necessary for organization to

achieve its goals.
Researchers worked on so many factors to check that which factor effect employee’s
performance. A psychological state strongly predicts the outcome of actual performances.
Many facts of knowledge and skill development are very much interrelated. And for this
purpose survey from employees of 8 firms have done. Only one member of research
team was there to administer the confidential questionnaire and the focus of survey was
to capture employee perception about Work place. Questions were about performance
capacities of employees, Knowledge and skill development climate, and work place
foundation factors. One heading was more skills (my skills are more than to perform my
present job) loaded positively. Other two headings were do better (if I get more training
about my job, I can perform well then present) (I must have the knowledge about more
factors that affect employees performance) And these factors are labeled negative. The
resulting latent variable need to learn new skill is consequently interpreted means
employees believe that no more skill is needed and they said they can perform better in
their jobs by more training and knowledge (William N.Cooke).
The work place in which employees work today is constantly changing and diverse.
Employees are living in a world of growing economy and have very less job
opportunities. From different organizations 2000 employees have surveyed. According to
result 90% employees believed that quality of the work place have affect on the attitude
of employees and to increase the productivity of work. Good design of office increases
employee’s performance. More personnel control and relaxed environment for employees
in an organization provide them the environment which fulfill the needs of employees
and enhanced their productivity. Comfortable office designs motivate the employees and
increase their performance. Better physical environment of office will motivate the
employees. Factors like dissatisfaction and physical environment play very important role
in performance abilities of employees. Organizations that focus on these factors are more
able to achieve performance goals.
In employees driven organizations groups are responsible for the innovation. Recent
research shows three things have impact on the abilities of groups of qualified person’s
.and all the three factors are related to environment in which employee operates. The five
factors which effect employee performance are Attitude, head, health, downsizing and
outsourcing, technology and tools (Al-Anzi N. m.2009).
The environment of workplace has effect on employee performance both in a positive

and negative way. In industrial sector the work place environment is unsafe and
unhealthy because they have poorly designed workstations, uncomfortable furniture, lack
of ventilation, less lighting, great noise, very less safety measures etc. People work in
these places often remains ill and therefore performance activity of these employees is
affected. So performance is decreased because of environment of work place.
Employee’s performance also depend that how much they are involved with their work
place especially with the environment of organization, and from how much time they are
in job. To create a work environment in which employees are productive is essential to
increase profits for the organization, corporation or small business. There is positive
relationship between work, workplace environment and the tools of work; workplace
becomes an integral part of work itself. Management that tell how to increase employees’
performance focus on two major areas personal motivation and the infrastructure of the
work environment (Chandrasekar, 2011).
Research shows the characteristics associated with a good workplace, health and safety
environment and the effect of such environment on employee’s performance, both in
terms of total productivity and mean wage. Data from three independent sources is
merged to investigate: what is the effect of good work place on productivity of
organization and the wages of firms. The main factors are the proportion of managers and
the work environment offered to all the workers. The first factor might suggest that
involvement of high management is essential while the second tell the role the
employee’s awareness in enhancing workplace conditions. Once we control for industry,
regional and firm age effects, the work environment dimension accounting for a
compensating wage is the internal climate at the workplace. The work environment
related factors that contribute to enhance the firm productivity are having problems
related to "Internal climate" and “repetitive work", both with relatively large
contributions to enhancing the productivity of firms (James L.perry).
An organizational culture that has employee involvement and a sense of ownership and
responsibility is very important for the management of work place. This gives a feeling
that all employees are empowered within the workplace. Proponents of workplace
diversity have long touted the benefits of group diversity for a number of organizational
outcomes however, the relationship has not been consistently found (e.g., Webber &
Donahue, 2001).
Organizational culture has consistent relationships with performance of organization. A

relationship is found between culture of organization and firm performance and
organizational culture and customer satisfaction. The diversity of work place has
organizational performance but that effect is seen through a high Involvement
organizational culture. This research and other researchers work call into question the
assumption that national differences outweigh organizational culture in diversity
management practices (Gerhard and Fang 2005).
Found within Hofstadter’s data that country of origin explained a small amount of
variance in respondents’ values and that organization differences accounted for more
variance than did country. The culture and habits of a nation is important to consider the
international human resource management, the analyses results suggest that the culture of
the organization is much more important to consider for effectively managing diversity
(M.Guidroz).
In performance evaluation the combination of some variables such as age, gender,

experience, observation time and interpersonal affect has considered in determining the
performance of employees, no investigation has indicated the influence of workplace
conditions on job performance. This study tells the effects of job characteristics (physical
efforts and job grade), and working conditions (environmental conditions and hazards)
with experience and education level on task performance and contextual performance.
154 employees in 18 teams participated in this study. Seven criteria for task performance
and 16 for contextual performance were used to measuring employee performance. The
results tell that there were relationships between employee performance both job grade
and environmental conditions. Poor workplace conditions (physical efforts,
environmental conditions, and hazards) result in decreasing employee performance
consisted of following organization rules, quality, cooperating with coworkers to solve
the problems. Unpleasant working conditions in workshops have different effects on
every job performance indicators. Training program designed to improve job
performance of the employees working under bad work performance conditions must
focus on organizational rules in terms of occupational health and safety (Kahva, 2006).
A racial micro aggression is the real experience in the workplace. The employees of color
perceived the occurrence of racial micro aggressions as both conscious visible and
invisible events. Further, those racial micro aggressions occurred as part of personal
interactions with managers, co-workers, and clients. The employees of color have mixed
feelings about the benefit of reporting racial micro aggressions, and believe that reporting
does not change the climate of work place. Experience of racial micro aggressions affects
the health and workplace performance of employees in various ways. Effect is in the
form of stress with related emotions. Hearing about the effects of racial micro
aggressions on friends and co-workers within the workplace increases stress of employee.
Employees feel that their response to racial micro aggressions might negatively affect
how others perceive them in the workplace. The study indentified a few racial ways in
which employees cope with racism in the workplace, however some methods support
ignoring the racism and using resources outside the workplace to handle their stress. The
experience of racial micro aggressions occurs through policies and procedures of work
place related to opportunities of hiring and promotion. The employees felt that their
workplace climate requires them to "act white," thus forcing them to "tone down".
Cultural base is predominantly white female, thus influenced by the white female
perspective that differs from diverse cultural affects of employees of color. Management
is not educated very much about to recognize the existence of racism. Those involved in
creating a positive work environment with a safe cultural climate i.e managers and co-
workers, may have benefits from increased competency of culture. Cultural competency
requires an understanding of the dynamics of difference as well as increasing self-
awareness, increasing knowledge of the other person's culture and adapting professional
skills to the conflict situation for informed resolution (L.Hunter, 2011).
Workplace recreations have a good effect on employee performance. When recreation is

well planned then it can significantly contribute to higher levels of employees’
commitment for the organization. It plays a key role in bonding among employees and
with customers. Recreational activities provide an opportunity for socialization and
strengthening among workers and customers as well as for skills development e.g.
leadership, interaction and communication which are essential in providing effective
service delivery. By offering recreation facilities to employees, organizations can help to
increase the productivity of employees by meeting their physical and psychological needs
which decreases the rate of absenteeism, sick leaves and medical costs. This shows more
working hours by the healthy employees due to more concentration; lead to improved
organizational efficiency and profitability (Mokaya, 2012).
A meta-analytic review of all adequately designed field and laboratory research on the
factors to motivate performance is reported. Of approximately 600 studies, 45 qualified.
The overall average effect of all incentive programs in all work settings and on all work
tasks was a 22% profit. Team-directed incentives had a superior effect on performance
compared to individually-directed incentives. This effect was not affected by the location
of the study (business, government, or school), the competitive structure of the incentive
system (programs where only the highest performers get incentives versus programs
where everyone who increased performance receives incentives), the type of study either
laboratory experiment or a field study or the performance outcome i.e. quality, quantity
or both. In these studies, money was found to result in higher performance gains than
nonmonetary, tangible incentives (gifts travel). More research is needed on the relative
cost-benefit of cash and gift incentives, and the way different types of tangible incentives
are selected. Longterm programs show greater performance than shorter-term programs
did. Explanations based on cognitive psychological principles accompany each of the
analysis (J.Condly, 2003).
The paper investigates the impact of motivation and work stress on job performance
among frontline employees in the banking sector. Based on the findings related to
Motivation, it seems that the most important driver of bank employees’ job performance
is the satisfaction of higher order needs such as the Growth needs refer to the employee
needs of self-esteem and self-actualization related needs involving respect/fellowship
from peers and/or relationship with supervisors do not seem to have any significant
impact on job performance. Work-Stress has inverse relationship with job performance
respect for them in order to be able to perform well in their jobs. Job specific
characteristics such as fringe benefits do not play a major role in driving job performance
of employees, either. Regarding employees’ existence needs, this study has also found
that the satisfaction of existence needs (pay) is not an influential factor of job
performance. In fact, this seems to be (partially) in line with Herzberg’s view that pay is a
hygiene factor (rather than a motivator) that prevents employees from feeling dissatisfied.
Satisfaction of one’s personal growth needs is the most important driver of a bank
employee’s performance in his/her job; the evidence also suggests that this performance
is badly affected by employees’ stress levels experienced, while there is no major
difference between male and female bank employees or even bank type (public vs.
private) in terms of stress experienced. The foregoing empirically established causal
relationship has managerial implications involving the development of relevant HR
policies and practices in a banking context. Bearing the above findings in mind, the
greater emphasis is given in motivating employees rather than stressing them.
Specifically, banks need to invest in programs that aim to develop a cohesive
organizational culture where employees are motivated primarily by rewarding them based
on growth scheme offering appropriate training and development programs to satisfy
employees’ professional career growth needs giving importance to a healthier working
environment where work stress is effectively controlled across the organization. It is
important to reexamine bank practices that may contribute to increasing work stress
(Kakkos, 2011).
The research study has shown that management can use different tactics strategies and
policies to motivate employees in work settings, but different tactics, strategies and
policies have a different motivational impact on different people. A motivation strategy
may enhance motivation in one way but diminish in other. It is important to see the
uniqueness of the present situation and the diversity of the concerned group .It is the
work of management to see different alternatives about the situation. There is direct
relationship between rewards and employee work motivation. The change in rewards
given to employees changes the work motivation and performance of employees. Better
the rewards, the higher the levels of motivation and greater levels of employee.
According to employees, the rewards were not according to needs. The rewards received
from the organization were not up to their needs. Promotion process was very slow and
the recognition was informal. Informal recognition has to be changed to formal
recognition. Rewards are given to the employees at one level rather than according to the
performances of individuals. Some of the employees have taken low rewards awarding
activity. It is observed that rewards should be given to employees who deserve at once.
The prompt rewards to employees may motivate them and improve their performance.
The reward should be given in a kind of ceremony to an employee and announced
properly to motivate other employees. The lack of communication is the main barrier in
Employee’s motivation. One employee complained that rewards are not announced on
time, thus the motivation effectiveness suffers. It is suggested to communicate reward to
employees in proper ceremony on time, so that they are motivated. The interviewers
suggested that the rewards should be based on objective criteria of performance. The low
level employee’s have the difference in salary, facilities, loans etc (Khan, 2010).
The success of any organization depends on the ability of managers to provide a

motivating environment for its employees. Manager must know the nature of each
employee and how to motivate each individually. By understanding employees' needs,
managers can understand what rewards can motivate them. The goal of most companies
is to benefit from positive employee behavior in the workplace by promote a win–win
situation for the company and its workers. The MARS model of Individual Behavior is an
excellent medium for creating the win-win relationship between the employer and
employees to understand motivation.
MARS Model of individual behavior explain individual behavior as a result of internal

and external factors or influences acting together The name of the model is an acronym
of the four major factors that affect employee performance i.e. Motivation, Abilities, Role
perception and Situational Factors. Individual values, personality, perceptions, attitudes,
and stress form a basis on which the factors interact. These factors are very much
interrelated in organizations. Unless all of the elements of the MARS model are satisfied,
employee behavior and performance will be affected and negatively impacted. For
example, enthusiastic and employee with high motivation level who is skilled in running
the work (ability), and understands the job duties (roles perception) well, will not be able
to perform their job well if there is a lack of sufficient resources .
2.1 Defining Performance

The accomplishment of a given task measured against preset known standards of
accuracy, completeness, cost, and speed (performance).
2.2 Defining Workplace Environment
Circumstances, influences, stresses, and competitive, cultural, demographic, economic,

natural, political, regulatory, and technological factors (called environmental factors) that
effect the survival, operations, and growth of an organization (Al-Anzi N. M., 2009).
2.3 Defining Office Design

In BNet Business Dictionary (2008) Office design is defined as “the arrangement of
workspace so that work can be performed in the most efficient way” (Rising, 2008).
2.4 Defining Motivation

Motivation defines as the driving force behind an action and the motivation can be
considered the state of having encouragement to do something.
2.5 Relation between workplace environment and employees’

performance
Workplace environment has a direct impact on the organization’s financial and non-
financial performance. Not only pay packages increase employees’ performance,
researches show that workplace environment is also a very important factor that affects
employees’ performance. Surveyed by Robert Half International Inc. shows that
workplace environment is the most critical factor in keeping an employee satisfied.
According to his survey report in 1993, only 9% employees said that the workplace
environment was an important factor in keeping employees satisfied while other critical
factors include the importance of praise and recognition, and compensation each was
28% of those surveyed. Six years ago praise and recognition was 47% of those surveyed
and only 4% say that promotions are a big factor in keeping employees satisfied,
compared with 26% who said that in 1993. Furthermore, the importance of compensation
and benefits was 28% while in the 1993 survey it was 7% (Al-Anzi N. M., 2009).
Research shows that engaging in recreation activities at workplace environment were
relax mind (82.3%), reduce stress (62.9%), increase confidence and self-esteem (59.7%),
and improve health (53.2%). Workplace recreation has a positive effect on employee
performance because due to this job satisfaction increases (92%), quality of service and
customer satisfaction increases (72%) and enhanced productivity increases (77.5%)

(Mokaya, 2012).
2.5.1 Factors that effects workplace environment

Factors that effects workplace environment includes
Goal-setting
If the employees feel that they are very important figure of organization, it greatly
enhances their performance. This can be done informally between the employee and their
immediate supervisor or as part of an organization’s formal performance management
process.
Performance feedback
Performance appraisal is very important for keeping productive environment. It includes
feedback about good as well as poor performance of employees.
Role congruity
The role that the employee is required to perform is consistent with their expectations on
joining the organization and any subsequent training. The organization’s role
expectations are consistent with tasks allocated by the employee’s immediate supervisor.
Defined processes
For effective performance employees should know very clearly that what they have to do
and how to do. They should know each and every step of their task.
Supervisor support
Supporting and positive attitude of immediate supervisor with employees create favorable
workplace environment and encourage employees that directly affects their performance
(Chandrasekar, 2011).
Technology and Tools

Technology play very important role in any organization to achieve its goals. Due to
technology organization can save both time and money. All methods of improving
employee productivity are great, but they're useless without the right technology and
tools. Without up to date technology and tools employees cannot work effectively. Up to
date technology in the workplace environment is very important for effective
performance of employees (Al-Anzi N. M., 2009).
Communication system
At the workplace environment, a formal communication system promotes trust among the
employees, increase knowledge sharing concept and encourages better team work and
relationship that increase their performance.
2.6 Relation between office Design and employees’ performance

Most people spend 50% of their lives within their workplace environments, which greatly
affect their mental status, actions, abilities and performance (Sundstrom, 1994). Better
outcomes and increased performance is assumed to be the result of better workplace
environment. Better physical environment of office will boosts the employees and
improve their performance. Research shows that factors such as dissatisfaction, cluttered
workplaces and the physical environment are playing a major role in the loss of
employees’ performance (Carnevale, 1992).
Hughes surveyed 2000 employees from different organizations in 2007. He reported

results of this survey showed that nine out of ten believed that a good office design
affects the attitude of employees and increases their performance. (Huges, 2007).
2.6.1 Factors that affect office design

These factors include furniture, light, noise, temperature and Spatial arrangements.
Furniture
Office furniture including desks chairs, the filing system, shelves, drawers, etc. play an
important role in the proper functioning of any office and the performance and the
efficiency of the employees. If office furniture is uncomfortable and not user friendly
then employees’ working style and efficiency gets hampered that lead to the decrease
their performance as well as health problems. Comfortable office furniture motivated

employee to give his best.
Noise
Noise in office disturbs the employees during working time. Due to noise from
construction projects, vehicular traffic, airports, noise in occupational setting or noise of
simultaneous conversations etc employees’ cannot concentrate on their work properly so
noise affect their performance and efficiency.
Light
Proper lighting in office has impact on employees’ health, the brightness of office light
effects alertness, concentration, and task performance while insufficient lighting can
make a workplace uncomfortable and distracting.
Temperature
Office temperature has impact on employees’ performance. In high temperature
employees’ fell tiredness due to increase their body temperature as a result performance
decreases. Similarly low temperature decrease efficiency due to cooler body heat and
shivering. World Health Organization recommends a maximum working temperature is
24ºC and minimum working temperature is 16ºC (Al-Anzi N. M., 2009).
Spatial arrangements
The actual physical layout of an office is extremely important to enhance employees’
satisfaction towards the space and facilities provided to do the job that lead to increase
their performance.
2.7 Relation between Motivations and employees’ performance

Motivation is a driving force to accomplish any task. Motivation can be intrinsic or
extrinsic. Intrinsic motivation can be defined as inner force to attain some goal where as
extrinsic motivations are based on external sources or incentives. Level of motivations
has direct impact on employees’ performance rate. Along with an employee’s abilities,
knowledge and skills, motivation is a important factor which contributes to employee’s

performance. Research shows that the positive reinforcement improved performance
from 45% to 95%. This is because the regular feedback and recognition gave the
employees the psychological feeling that strongly and positively influenced their
performance (ROBINSON, 2004).
2.7.1 Types of Motivation

There are so many types of motivation that motivate employees to do better.
Achievement Motivation
Need for achievement is present in every human being, it is a core element of human
personality. Though there are individual differences in the level of achievement
motivation but no body without it. An individual having high level of achievement
motivation is willing to go as far as possible and face all the difficulties and hurdle that
come in a way to achieve his goal.
Incentive motivation
It is human nature that the behaviors that are followed by positive reinforcement will
become strengthened. So, financial or non-financial incentives motivate employees to
work efficiently. If an employee know that accomplishment of certain task will give him
benefit then he will tray his best to complete that task.
Fear motivation
Fear and punishment also motivate employees to do their work properly. If someone
disobey certain policies, does not follow a set of prescribed behavior, do not complete
work in time etc then he\she faced punishment. So, due to punishment fear employees do
their work on time and according to description (types of motivation).
3. Research Methodology
The purpose of the study is to find out the relationship between workplace environment,
office design, motivations and employees’ performance and the impact of these factors
on employees’ performance.
3.1 Objectives
The objectives of the study include:
The purpose of this study is to examine the relationship between level of

motivation and employees’ performance.
To analyze the key factors in the workplace environment that impact on
employees’ performance and productivity.
To analyze impact of office design on employees’ performance.
To study the factors that contributes to enhancement of employees’ motivations
3.2 Hypotheses
H1: There is positive correlation between good office design and employees performance.
H2: Employee performance is positively correlated with favorable workplace environment.
H3: Increased motivations of employees’ directly correlate to increase their performance.
3.3 Variables
Study includes both dependent and independent variables.
3.3.1 Independent Variables

1. Workplace environment
2. Office design
3. Motivations
3.3.2 Dependent Variable

1. Employees’ performance
3.4 Conceptual framework
Based on the literature review, the relationship between workplace environment, office
design, motivations and employees’ performance can be conceptualized and depicted in
Figure (1). The relationship is defined in such a way that the set of factors impact on an
employee, which increased or decreased performance rate of that employee.
3.4.1 Overall conceptual framework
Figure 1: Dependent and independent variables

3.4.2 Conceptual Framework of Workplace Environment
Figure 2: Workplace Environment and employees, performance
3.4.3 Conceptual Framework of Office Design
Figure 3: Office design and employees' performance

3.4.4 Conceptual Framework of motivation
Figure 4: Motivations and employees' performance
3.5 Research Design

Field survey was chosen as research design and data was collected through self
administered questionnaires. Inferential statistic was used to analyze the data. SPSS
(Statistical Package for Social Sciences) used to analyze the data. Correlation model and
Regression model were used to determine the relationship between variables.
The study examined office workers from government and private sector organization.
Data was collected from different offices in Hazara Devision (Abbottabad, Havalian,
Mansehra, Huripur).
The effect of good workplace environment, office design and motivations was checked
on employees’ performance.
3.5.1 Population
The study covers most of employees from government and private sector organization in
Hazara Division. A questionnaire was administered consist of three sub scales from
which one was about to check the impact of workplace environment on employees’
performance, second was about impact of good office design and third was affect of
motivations on employees performance.
3.5.2 Sampling
Convenient sampling technique was used to gather the data. 200 employees were taken as
a sample from different organizations located in Hazara Devision (Abbottabad, Havalian,
Mansehra, Huripur).
4. Results
Table 1
4.1 Correlation between workplace environment factors and employees’

performance
Workplace No of Mean Std.Deviation Pearson Significance
Environment Response Correlation(r) (2_tailed)
Factors
Goal setting 200 6.74 2.47 .711** .000
Performance 200 6.55 2.31 .738** .000

feedback
Role congruity 200 6.57 2.29 .092 .195
Define process 200 7.07 2.13 .587** .000
Supervisor 200 6.54 2.54 .758** .000

support
Technology 200 5.59 1.98 .223** .001
Communication 200 6.61 2.12 .535** .000
r is Pearson correlation coefficient

*.Correlation is significant at the 0.05 level (2-tailed)
**.Correlation is significant at the 0.01 level (2-tailed)
Table 2
4.2 Correlation between Office Design factors and employees’

performance
Office Design No of Mean Std.Deviation Pearson Significance
Factors Response Correlation(r) (2_tailed)
Furniture 200 5.55 2.12 .142* .045
Noise 200 5.99 2.15 .067 .343
Light 200 6.20 2.23 .559** .000
Temperature 200 5.63 2.04 .386** .000
Spatial 200 5.45 2.20 -.002 .982

arrangement

Table 3
4.3 Correlation between Motivation factors and employees’

performance
Motivation No of Mean Std.Deviation Pearson Significance
Factors Response Correlation(r) (2_tailed)
Achievement 200 6.50 2.51 .785** .000
Incentive 200 6.42 2.18 .650** .000
Fear 200 5.90 1.81 .340** .000

Table 4
4.4 Correlation between Workplace environment, Office Design,

Motivations and employees’ performance
Factors No of Mean Std.Deviation Pearson Significance
Response Correlation(r) (2_tailed)
Workplace 200 45.68 12.46 .826** .000

Environment
Office Design 200 28.81 7.65 .398** .000
Motivations 200 18.82 4.70 .760** .000

Table 5
4.5 Regression Results of Model
Model Summary
Adjusted R Std. Error of the

Model R R Square Square Estimate
1 .620a .384 .381 12.63372

b
2 .810 .656 .652 9.46762
3 .841c .707 .702 8.76413
a. Predictors: (Constant), Office_design, Workplace_environment,

Motivations
b. Dependent Variable: Performance
Model Sum of Squares df Mean Square F Sig.
1 Regression 19701.899 1 19701.899 123.437 .000a
Residual 31602.976 198 159.611
Total 51304.875 199
2 Regression 33646.601 2 16823.301 187.685 .000b
Residual 17658.274 197 89.636
Total 51304.875 199
3 Regression 36250.128 3 12083.376 157.315 .000c
Residual 15054.747 196 76.810
Total 51304.875 199
c. Predictors: (Constant), Office_ design, Workplace_environment, Motivations
d. Dependent Variable: Performance
5. Discussion
Our first hypothesis was that there is positive correlation between good office design and
employees performance which is approved by looking on correlation values (.398**) it
gets clear that there is positive correlation between good office design and employees’
performance. Office design factors including light (.559**), temperature (.386**) and
furniture (.148*) has great affects on employees’ performance.
The second hypothesis was that employee performance is positively correlated with
favorable workplace environment which is approved by looking on correlation values
(.826**). Its values show that workplace environment has very strong effects on
employees’ performance. Supervisor support (.758**), goal setting (.711**) and
performance feedback (.738**) has very strong effects while define process (.587) and
communication (.535**) and technology (.223**) has also strong effects on employees’
performance. Role congruity (.092) has also effects.
Our third hypothesis was that increased motivations of employees’ directly correlate to
increase their performance which is approved with correlation value (.760**).results
show that achievement motivation (.785**) has very strong effects while incentive
(.650**) and fear motivation (.340**) also have strong effects.
The coefficient of determination R.square=.384 for workplace environment,

R.square=.656 for office design and Rsquare=.707 for motivation. Converting the
R.square value to percentage it comes to be approximately 38% for workplace
environment, 66% for office design and 71% for motivations. From these percentages it
is concluded that 38% of variability of employees’ performance is accounted for by the
variables of workplace environment, 66% for office design and 71% for motivations in
this model. It shows that motivations have great affects on employees’ performance,
office design and workplace environment also have great affects on employees’
performance.
5.1Conclusion
Workplace environment, good office design and motivation are directly related to
employees’ performance. If all these factors present in organization then performance of
employees of that organization will be good enough. It is concluded that for getting best
performance from the employees all these factors should be increases.
5.2 Limitations
There are certain factors which are realized and identified as weak points or limitations of
the present study. These points are important to mention for the consideration of further
research. Present research is limited for covering only few cities (Havelian, Abbottabad,
Mansehra and Haripur). Few factors study in this study demographic variable is not study
in this research. Similarly, this study could be nationwide if sample encompasses students
from different provinces of Pakistan. Generalizability of findings could be improved by
enlarge sample size.
5.3 Recommendations
Farther studies can be done on more vast and large samples. Many other factors can be
measured which affect employee performance. Demographic factors can also be studied
to find out diversity. Male and female can be compared in farther studies. Likewise
government and non-government employees’ performance can be evaluated.
Bibliography
(n.d.). Retrieved from masterstudies.net:
www.masterstudies.net/.../workplace%20environment%20& ...
Al-Anzi, N. m. (2009). masterstudies. Retrieved from masterstudies.net:

Al-Anzi, N. M. (2009). workplace environment. Retrieved from masterstudies.net:

basics. (n.d.). Retrieved from psychologytoday:

http://www.psychologytoday.com/basics/motivation
Carnevale. (1992). Physical setting of work. public productivity and management review
, 423-436.
Chandrasekar, D. K. (2011). Workplace environment and its impact on organizational

performance in public sector organizations. international journal of enterprise computing
and business systems , vol.1 1-19.
Huges. (2007). Office design is pivotal to employee productivity. Sandiego source the
daily transcript .
J.Condly, S. (2003).
Kahva. (2006).
Kakkos, N. (2011).
Khan, K. U. (2010).
L.Hunter. (2011).
M.Guidroz, A. (n.d.).
Mokaya, S. O. (2012).
Mokaya, S. O. (2012). Effects of workplace recreation on employee performance.

international journal of humanities and social science , 176-183.
performance. (n.d.). Retrieved from businessdictionary.com:

http://www.businessdictionary.com/definition/performance.html
R.Jones, g. Organizational Theory,Design and Change.
Rising. (2008). Home. Retrieved from BNet Bussines Dictionary:

http://www.handbagsales.net/result/BNET+Business+Dictionary
ROBINSON, E. I. (2004). HE IMPLICATION OF ADEQUATE MOTIVATION ON

WORKERS PRODUCTIVITY IN AN ORGANISATION. 15-40.
Sundstrom, T. (1994). office noise,satisfaction and performance,environment and

behavior. 195-222.
types of motivation. (n.d.). Retrieved from citehr.com: http://www.citehr.com/35175-

different-types-motivation.html
Workplace environment. (n.d.). Retrieved from businees performance:

http://www.businessperform.com/workplace-training/workplace_environment.html
QUESTIONNAIRE
Organization Name________________________________________________________
Position____________________
Gender_______________
Age____________
Tick the option which is best suited you.
I I
Q.No Questions strongly I agree I am I strongly
agree neutral disagree disagree
1 My boss perceives me as an important
employee for organization.
2 Of an on I give my suggestion in decision
process.
3 If I do good work, I appreciated by my boss.
4 Often I am given information about my

good and bad performance.
5 My seniors give me clear instruction about
what I have to do.
6 The organization clearly describes its goal
and strategies.
7 My expectation about task or duty is fulfill
after joining the organization.
8 My task in organization is according to my
expertise.
9 My boss is cooperative with me.
10 My immediate supervisor involves me in

planning and decision.
11 I have advance equipment at my workplace.
12 Organization provides proper tools and

technology for performing task.
13 There is formal communication system in
my workplace.
14 There is encouraging environment to
discuss ideas and issues.
15 Employees’ involvement in goal setting and
planning can increase their performance.
16 Feedback about my work improves my

performance.
17 If the task is not according to my expertise
it will decrease my performance.
18 Clearly defined objectives speedup the
Performance.
19 Supervisor’s positive attitude increases my
performance.
20 Availability of advance technology increase
employees’ performance.
21 Efficient communication system in
organization increases its employees’
performance.
22 My furniture is so comfortable that I can
easily work till late hours.
23 Physical environment (furniture and setting
arrangements) in my office is good enough.
24 Sound proof offices are best for good work.
25 My workplace environment is quiet and

calm.
26 My office providing good lighting, so I can
work without burden on my eyes.
27 Enough natural light comes in to my office.
28 The overall temperature of my office in

winter is warm enough.
29 The overall temperature of my office in
summer is cool enough.
30 My office is large enough.
31 My office has sufficient space for storage

and display important material.
32 Comfortable furniture influences my
performance.
33 Sufficient lighting in office increase
performance rate.
34 Noisy and disrupting environment decrease
the employees’ performance.
35 Suitable temperature in the office increase
employees’ performance.
36 Good spatial arrangement increase
employees’ performance rate.
37 My friends often say I am ambitious.
38 I work hard to attain my goals.
39 Financial and non-financial incentives

motivate me for work.
40 There are effective promotional
opportunities in organization.
41 In our organization employees work
because of fear of boss.
42 I complete my tasks in time to avoid

punishment.
43 Achievement motivations increase
employees’ performance rate.
44 Incentives motivation plays an important
role to increase employees’ performance.
45 Fear of boss directly influences the
performance level of employees.

Factors Affecting Employees Performance

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Factors Affecting Employees Performance

Uploaded by

Copyright:

Available Formats

Science Series Data Report Vol 4, No.

Factors Affecting Employees’ Performance: Evidence

Keywords: Workplace Environment; Office Design; Motivations

Electronic copy available at: http://ssrn.com/abstract=2152328

Electronic copy available at: http://ssrn.com/abstract=2152328

1. The factors that are driven by procedures, protocols and management

3. Factors those increase or decrease employees’ motivations to their work/job and

Quality of workplace environment is very influential on employee’s performance.

1.1 The problem Statement

To utilize human resources in a planned manner is very necessary for organization to

The environment of workplace has effect on employee performance both in a positive

Organizational culture has consistent relationships with performance of organization. A

In performance evaluation the combination of some variables such as age, gender,

Workplace recreations have a good effect on employee performance. When recreation is

The success of any organization depends on the ability of managers to provide a

MARS Model of individual behavior explain individual behavior as a result of internal

2.1 Defining Performance

2.2 Defining Workplace Environment

Circumstances, influences, stresses, and competitive, cultural, demographic, economic,

2.3 Defining Office Design

2.4 Defining Motivation

2.5 Relation between workplace environment and employees’

customer satisfaction increases (72%) and enhanced productivity increases (77.5%)

2.5.1 Factors that effects workplace environment

Technology and Tools

2.6 Relation between office Design and employees’ performance

Hughes surveyed 2000 employees from different organizations in 2007. He reported

2.6.1 Factors that affect office design

their performance as well as health problems. Comfortable office furniture motivated

2.7 Relation between Motivations and employees’ performance

knowledge and skills, motivation is a important factor which contributes to employee’s

2.7.1 Types of Motivation

The purpose of this study is to examine the relationship between level of

H2: Employee performance is positively correlated with favorable workplace environment.

H3: Increased motivations of employees’ directly correlate to increase their performance.

3.3.1 Independent Variables

3.3.2 Dependent Variable

3.4 Conceptual framework

3.4.1 Overall conceptual framework

Figure 1: Dependent and independent variables

Figure 2: Workplace Environment and employees, performance

3.4.3 Conceptual Framework of Office Design

Figure 3: Office design and employees' performance

Figure 4: Motivations and employees' performance

3.5 Research Design

4.1 Correlation between workplace environment factors and employees’

Goal setting 200 6.74 2.47 .711** .000

Performance 200 6.55 2.31 .738** .000

Role congruity 200 6.57 2.29 .092 .195

Define process 200 7.07 2.13 .587** .000

Supervisor 200 6.54 2.54 .758** .000

Technology 200 5.59 1.98 .223** .001

Communication 200 6.61 2.12 .535** .000

r is Pearson correlation coefficient

4.2 Correlation between Office Design factors and employees’

Furniture 200 5.55 2.12 .142* .045

Noise 200 5.99 2.15 .067 .343

Light 200 6.20 2.23 .559** .000

Temperature 200 5.63 2.04 .386** .000

Spatial 200 5.45 2.20 -.002 .982

r is Pearson correlation coefficient

4.3 Correlation between Motivation factors and employees’

Achievement 200 6.50 2.51 .785** .000