CHAPTER ONE

INTRODUCTION

 1.1 BACKGROUND TO THE STUDY

Work environment plays an important role towards the employee’s productivity, Working environment is argued to impact immensely on employee’s productivity either towards negative or the positive outcomes (Chandrasekar, 2001) Humans are influenced by certain activities around their habitat or working environment. A work environment can be identified as the place that one works, which means the milieus around a person. It is the social and professional environment in which a person is supposed to interact with a number of people. Hay Group (2007), A working environment is a place where people work together for the purpose of achieving organizational goals, it can also define as the location where task is completed, work environment includes physical geographic location as well as the internal environment factors like the quality of air, noise level, a friendly well-designed physical space, good equipment and effective communication, other external factors include the legal system, political factors, custom and traditions of the stakeholders which affect employees productivity. Well-designed and organized offices and work areas make significant differences to how people feel about their work.

Work environment can give some depressing messages about how much the organization value employees and the standards it expects from them (Armstrong andMurlis, 2007) Effective workplace communication is a key to cultivation of success and professionalism (Canadian Centre for Communication, 2003). A company that communicates throughout the workplace in an effective manner is more likely to avoid problems with completing the daily procedures, and less likely to have a problem with improper occurrence and will generate a stronger morale and a more positive attitude towards work. When employees communicate effectively with each other, productivity will increase because effective communication means less complains and more work getting done (Quilan, 2001). A satisfied, happy and hardworking employee is the biggest asset of any organization. Effective work environment encourage the happy employee with their job that ultimately influence the growth of an organization as well as growth of an economic. Lambert et al. (2001) found that environmental factors are important determinant of job satisfaction. The level of salary, promotion, appraisal system, climate management, relation with co-workers are the very important factors in Creating better and higher productivity, workplace requires an awareness of how workplace impacts behavior and how behavior itself drives workplace performance (Armstrong and Murlis, 2007)

Management’s new challenge is to form an environment that attracts, retain and motivate its workforce. The responsibility lies with managers and supervisors at all levels of the organization. They have to create a working environment where people enjoy what they do, feel like they have a purpose, have pride in what they do and can reach their potentials. The work environment affects employee’s morale, productivity and engagement- both positively and negatively. In an effort to motivate workers, firms have put into practice a number of activities such as performance based pay, employee involvement, recruiting agreements, practices to help balance work and family life as well as various forms of information sharing, (Chandraseker, 2011). 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 performance. In today’s competitive business environment, organizations can no longer afford to waste the potential of their workforce (Hughes, 2007). Therefore, most government organizations are making all possible efforts to make work environment more comfortable, safe and healthy.

This research title the effect of work environment on employees productivity is based on NTACCUL, a financial institution in Bamenda II and III over the last 20years micro finances has gain a lot of interest as an instrument of poverty alleviation and economic growth promotion especially in the developing world .the fascination with micro finance derives from the fact that the provision of financial services can contribute to poverty reduction and passed the test of sustainability at the same time ( carlton mandroff, obara, reiter and rhyne 2001) .however micro finance has sometime disappointed its supporters ,only few of the microfinances inaugurated have been able to achieve sustainability and meet expectations of its clients (Dokulilova, Jandal & Zeteck, 2009) this prompted the researcher to carry out this study on how far work environment will affect employees productivity in this institutions from or to meet its expectation of alleviating poverty by providing quality services to its customers.

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). 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 in the workplace that impact favorably or unfavorably individual productivity. The working environment also includes policies, rules, culture, resources, working relationships, work location, internal and external environmental factors. It is the value of the work environment that influences greatly on the worker’s inspiration and productivity (Hughes, 2007). In recent time’s competitive corporate environment have created a situation where companies cannot tolerate to misuse the abilities of their staff (Armstrong and Murlis, 2007). For that reason, micro financial companies have to do their possible best to create a comfortable, safe and healthy work environment if productivity is a priority.

This study is design to examine effect of working environment on employee’s productivity in NTACCUL in Bamenda II and III. Through this study the employer will get to know how its work environment effect greatly on the employee’s level of productivity. It is therefore important to find out the effect of work environment on employee’s productivity at NTACCUL in Bamenda II and III which will provide knowledge and measures to other Micro Financial institutions.

1 .3 RESEARCH QUESTIONS

One cannot fully appreciate improvements made in science, knowledge, or technology without some understanding of the conditions inside which these growths happened (Salkind, 2003). In an effort to evaluate how work surroundings factors such as productivity feedback, job aids such as computers and biometric registration, and physical work environment can be successfully used to stimulate workers’ Productivity in Bamenda II and III micro finance institutions. The subsequent questions will specify what the researcher wishes to investigate on.

1.3.1 Main Research Question

What is the effect of work environment on employee’s productivity of NTACCUL in Bamenda II and III?

1.3.2 Specific research questions

i). To what extent does physical work environments affect employee’s productivity in NTACCUL?

ii). How does productivity feedback affect employee’s productivity in NTACCUL?

iii). what is the effect of job aid on employees productivity in NTACCUL?

1.4 OBJECTIVES OF THE STUDY

To attend the objective of this research the following specific objectives are design.

i). To determine the effect of physical work environment on employee’s productivity in NTACCUL.

ii).To determine the contribution of productivity feedback on employee’s productivity in NTACCUL.

iii). To examine the extent to which job aid affects employees productivity of NTACCUL