CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter presents a review of available literature in the area of study that
is employee benefits on job performance. In general, the review is conceptualized
under the objectives of the study and focuses primarily on employee short term
employee benefits, insurance benefits, and retirement benefits and their relationship
with job performance. These were considered the pillars of the study.

Job Perfoemance

The history of workplaces and especially industrial workplaces is a well-

established field within the social history of labour, labour movement and
industrialisation. In some ways, it is a classical field of historical investigation;
founded in the social turn of historical science in the 1960s and 1970s, it lost its
momentum in the 1980s. Coming along with the concurrent debate about the death
of labour history, research on the history of workplaces was then widely neglected
(Burgmann, 1991). Since the establishment of social history as the dominant concept
in historiography, the discussion on industrial workplaces took place within this
methodological framework for the next two or three decades. A special challenge for
the history of workplaces arose with the establishment of ‘everyday history’ in the
1980s and 1990s. Nevertheless, industrial-workplace conditions were still not
considered as structural elements as important as wages, working hours or the rate
of labour unionisation. It remained a place where class struggle became visible but
was not a locomotive force of modernisation nor a specific focus for historians
(Judith and Lars, 2013).

According to Campbell (2013) performance is related to that which the

individual that is hired do in fulfilling his / her duties and the activities that can be
examined and measurable are reflected. An organization needs high performance of
its employees, so as to meet its goal and be able to achieve competitive advantage
(Frese, 2012). According to business dictionary employee performance is the job
related activities expected of a worker and how well those activities were executed.
The organization success depends on the employee performance. Therefore, it is
important for a manager to create a well – rounded approach to managing and
coaching its workforce. The workplace environment plays a crucial role for the
employees. Nowadays employees may have a large number working alternatives,
then the environment in the workplace becomes a critical factor for accepting and/or
keeping the jobs. The quality of environment in the workplace may simply determine
the level of employee motivation, subsequent performance and productivity (Journal
of Business, Economics & Finance Vol.1 2012)

In Nigeria, employee performance of executing agencies or public enterprises is

limited to budget monitoring and annual performance evaluation; however, experts
are of the view that there is no link between employee performance and financial
data (Pollitt and Bouckaert, 2004). In South Africa, for example, recent developments
in the way employees are managed in organizations have brought about the need to
seriously consider employees as major stakeholders in organizations (Tchapchet et
al, 2014).

Meanwhile, the idea of workplace environment is considered by scholars to be

the sum of the interrelationships that exists within the employees and the
environment in which they work (Kohun, 2012). Heath (2016) opine that this
environment involves the physical location as well as the immediate surroundings,
behavioral procedures, policies, rules, culture, resources, working relationships, work
location, all of which influence the ways employees perform their work. The quality of
the workplace environment impacts on employees’ performance and subsequently
influences the organization competiveness. This is base on the argument that human
effort in organization is indispensable; as it constitutes to the overall performance of
any organisation (Chika and Dominic, 2017).

BENEFITS

According to Brundson, (2012), employee benefits have been regarded mainly

as a retention tool or, originally, as a moral obligation for employers. This concept
has however evolved to more than a retention tool; triggered by the industrial
revolution; employers recognize the need to attract, retain and motivate their
employees in order to meet their objectives. This is affirmed by (Bergman and
Scarpello, 2001) who state that employers may find themselves at a disadvantage in
the labor market if they do not offer competitive benefit packages. This movement is
witnessed all over the world. For example, across sub-Saharan Africa, 80% of
companies provide some form of medical care to its employees, and also look at
other benefits and remuneration strategies like performance based bonuses (Mercer,
2012).

According to Hameed et al., (2013), an employee is a key element of the

organization. Organizations need to endeavor to have their employee benefits
streamlined towards making sure that they motivate their staff to achieve
organizational goals by attaining a good employee performance. Thus, the rationale
behind the choice of this study was to empirically establish the relationship between
insurance, retirement and short term employee benefits on quality of work, quantity
of work, timely accomplishment of tasks(meeting deadlines), due diligence in duty
execution(meeting targets) as well as effectiveness and cost of services at NEC. The
findings of this study are hoped to contribute positively to the field of employee
benefits at NEC and other similar organizations. This will eventually help NEC to
realize the full potential of their workforce. In the long run, problems such as poor
quality of work being done or tasks not being accomplished on time due to employee
benefits not being met will be minimized.

Working condition benefits have been claimed by those using a linear causal
model. The frequently used or at least assumed model posits that strategic Human
Resource Management leads to a human resources management system designed
to increase employee skills, motivation and job design. This results in increased
discretionary effort and access to employee tacit knowledge which, in turn, improves
operational performance, profitability and stock market value. Research into specific
labour practices and positive enterprise-level outcomes based on this more or less
explicit model has been subject to stringent criticism, which we use as part of our
own apparatus in evaluating the research we review. The critique in question is long-
standing and centers on several aspects of previous research: its tendency to
assume causal relationships; the assumption that their direction is from the practices
to positive outcomes; the way that outcomes are narrowly defined if indeed they are
clearly defined at all; the lack of specification of the mechanisms that lead to the
outcomes; the attempt to find a “universal” paradigm for success that will apply to
any company rather than a “best fit” one where specific practices are most effective
for particular organizations (Wright and Gardner, 2000). Moreover, it cannot be
assumed that maximization of profit is the sole or even main objective function of
SMEs from owner/managers’ viewpoints; nor that they allocate high proportions of
their time to maximization of performance. Non-monetary components are also
significant. It has increasingly been argued by researchers examining companies,
including Small and Medium Enterprises (SMEs), in the developing world that “quiet
life” preferences and orientations towards the firm that prioritize direct control are
also important considerations (Bandiera et el, 2012).

RELATED STUDIES

Some studies looked into job satisfaction and performance at work of shift
workers. Job satisfaction is also usually reflected in employees’ complaints.
Dissatisfied employees experience more psychological distress and physical health
problems (De Castro 2008). With respect to job performance, Alfaro et al. (2005)
reported in their thesis that among phone bankers in a banking call center, job
performance ratings significantly vary between shifts. The study noted that majority
of phone bankers did not comply with call handling criteria and significant factors
related to work performance include civil status, previous work experience in a
similar field, average duration of sleep, feelings of fatigue associated with work
duration and rest period, work environment and motivation

Chika and Dominic (2017) investigated on the effect of work environment on

employee productivity using Edo City Transport Service whether inadequacy of the
various conditional factors can affect productivity of employee. To achieve the study
objectives, secondary data were collected and analyzed as well. From the research
findings, if good office environment is provided for employees, it will go a long way to
enhance their morale and performance. Also, if office is neat, noiseless, properly
arranged well lighted and ventilated, employees will feel a sense of belonging and
this will make them to work efficiently and effectively. Good physical working
environment inspires workers to spend more time in their various offices, employees
responded emotionally better towards the provision of good office environment by
not absenting themselves unnecessarily from work, lateness to work and other
negative attitude will be drastically reduced. Good working environment increase
individual output therefore leading to growth of the organization. Based on the
research study findings, the researcher recommended the followings: The
organization should map out programme for provision of good work environment to
increase productivity and of promoting occupational safety and health of workers.

Khaled and Haneen (2017) investigated the influence of work environment on

job performance. An engineering company was taken as a case study with a sample
size of 85 employees. A quantitative methodology implying a cross-sectional survey
was used to satisfy the study objectives in addition to the literature review. Different
dimensions were examined in relation to the work environment factors, including
noise; temperature; air; light and colour; space and employers’ satisfaction. The
collected data was analysedusing (SPSS, Version 22). Findings revealed that the
situational constrains constituted of factors such as noise, office furniture, ventilation
and light, are the major work environment conditions that have negative impact on
job performance and should gain more attention. It is suggested that employers
should take initiatives to motivate employees by improving their work environment.
As employees are motivated, their job performance will increase, and they will
achieve the desired outcomes and goals of the job.

BENEFITS

According to a study conducted by Frankford (2013) there is a direct link

between employee benefit and productivity of an employee. *inceemployees
performances influence output of an organization then one canclearly see that
good or bad employee benefit practices will go a long way inincreasing productivity
or not. $t has been said so far that given thetechnological and material inputs and a
given capacity of the worker thewill to work materially affects the productivity of the
workers and thereforeof the enterprise.

According to Wayne. F. Cascio (2012) “Compensation which includes direct

cash payment indirect payments in the form of employee benefits and incentivesto
motivate employees to strive for higher levels of productivity is a criticalcomponent of
the employment relationship. "ompensation affected byforces as diverse as labor
market factors. "ollective bargaining governmentlegislation and top management
philosophy regarding pay and benefitsB "ompensation may be defined as money
received for the performance of work plus many kind of benefits and services that
organizations providetheir employee.

CONCLUSION

In conclusion, the of motivation factors have a strong influence on job

satisfaction resulting in any positive feelings that accompany human, who is trying to
keep this state as long as possible, which leads to further efforts.

Job Performance represents one of the most complex areas facing today’s
managers when it comes to managing their employees. Many studies have
demonstrated an unusually large impact on the job performance on the motivation of
workers, while the level of motivation has an impact on productivity, and hence also
on performance of business organizations. There is a considerable impact of the
employees’ perceptions for the nature of his work and the level of overall job
satisfaction.
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