Factors of Work Place Environment Affecting Employee Job Performance in

the Banking Sector

Masters of Management Sciences

Thesis Proposal

Author
Umair Butt
FA 19-MMS-009
Session 2019-2021

Supervisor
()

MUST Business School

Mirpur University of Science and Technology
 Contents
Introduction ..................................................................................................................................... 3

Problem Statement ...................................................................................................................... 4

Objectives ................................................................................................................................... 5

Significance of Study .................................................................................................................. 5

Research Design.............................................................................................................................. 6

Research Model .......................................................................................................................... 6

Hypothesis................................................................................................................................... 6

Methodology ............................................................................................................................... 7

Population and Samples .............................................................................................................. 7

Data Analysis .............................................................................................................................. 8

Conclusion ...................................................................................................................................... 8

References ....................................................................................................................................... 9
Introduction
The impact of the office environment on employee performance is significant. The
variables of the working environment have a significant influence on the workers' performance,
either positively or negatively. The most significant dependent variable in industrial and
organizational psychology is employee performance. Some essential application must be used to
enhance the performance of the personnel (Khuong & Tien, 2013).

The workers' productivity, health and safety, comfort, ability to concentrate, level of job
satisfaction, and overall morale may be directly influenced by the physical aspects of their place
of employment. Essential aspects of a workplace to take into consideration include the building's
design and age, the layout of the workplace and workstations, the quality of furniture and
equipment, the amount of space available, the temperature, ventilation, lighting, noise, vibration,
and radiation levels, and the air quality (Agbozo et al., 2017).

Elton Mayo laid the groundwork for the concept of job satisfaction among workers by
conducting a study at the Western Electric Company's Hawthorne site in Chicago during the late
1920s and early 1930s (Bendix & Fisher, 1949). This research laid the basis for the concept of job
happiness among workers. The outcomes of the research indicated that the feelings of workers
may have an effect on the working practises they engage in. In addition to psychological
considerations, the primary underpinnings of work happiness, also known as job satisfaction, and
employee productivity are social connections.

Job satisfaction has become a cornerstone in boosting productivity in the workplace. Every
business's primary objective is to maximize its employees' output to achieve its objectives. One of
the most significant factors that determines how satisfied and inspired workers are by their jobs is
the conditions in which they work. According to (Strong et al., 1999), social, organisational, and
physical elements serve as the incentive for tasks and activities, hence influencing the performance
of employees. The environment at work has a significant effect on how productive workers are.
The job satisfaction rate is the most crucial empirical indication that working conditions are
deteriorating in a business.

Employees may be seen as inner consumers in any financial organisation, and their needs
must be met if the satisfaction of external customers is to be maintained. Successful financial
organisations can only maintain their dominant position by ensuring employee happiness and then
motivating them to continuously grow (Human Resources, n.d.). The workspace is the second
location for workers who spend over 40 hours each week at work. In this study, the researcher
analysed the meanings of work happiness and productivity in order to integrate aspects that impact
their interrelationships in achieving authoritative goals (5 Ways to Achieve Nurse Job Satisfaction
| NurseChoice, n.d.).

The workplace's physical environment is the setting in which human beings can function
optimally in their jobs. This particular working environment consists of the temperature, lighting,
and ventilation, among other elements. Clearly, the idea that distraction is the factor that has the
most substantial adverse effect on perceived productivity is supported by office design, which
creates a physical environment that influences the behaviour of office occupants. Interactions at
the workplace, on the other hand, have the most beneficial influence on one's impression of their
own level of productivity (Al Horr et al., 2016). Lighting in the office may relate to either natural
light or artificial light. When compared to artificial light, natural light is a cost-free resource that
streams into the workplace via windows or skylights.

On the other hand, artificial light is the form of light that is manufactured and fashioned by
humans (Sarode & Shirsath, 2014). Desks, seats, shelves, and drawers are the primary components
of office furniture. Other components include the file system. It is becoming more common for
office machines such as computers, printers, photocopiers, and plotters, among others, to be seen
as fundamental instruments for improving work performance (Asante, 2012).

Problem Statement
In today's fast-paced and competitive corporate world, a firm must maintain a healthy
working environment in everyone's best interest. Many other things need to be addressed; thus,
managers shouldn't simply concentrate on the workers' salaries to improve their performance since
many other things need to be considered. An organization with a reputation for being an excellent
workplace will have a comparative advantage in competition. The researchers have identified
many aspects of the physical environment of the workplace, including the office layout, the
lighting, the furniture, and the equipment that is present in the workplace. Because office workers
often spend a significant amount of time inside their buildings, the office surroundings in which
they work may have an effect on their health.
Objectives
The purpose of this research is to determine which aspects of a physical workplace
environment (including office layout, lighting, furniture, and equipment) are most important to
employees working in the banking industry, as well as to determine whether or not there is a
correlation between those aspects of a physical workplace environment and employee
performance.

The multi-mediation analysis will also be carried out as part of this research to examine
the supporting role that workers' commitment and the capacity of employees to strive for
accomplishment play in the relationship between employees' working environment and their
performance.

Significance of Study
Past research on the influence of the office environment on employee performance has
been conducted at several organizational levels. However, this has not been researched among the
dedication and drive of financial institution employees. Therefore, it raised various issues to
discuss, such as whether or not it affects the efficiency of banking sector workers.
Research Design
Research Model

Mediating Factor

Employe Commitment

Physical Work Place Employe Performance

Environment

Achievement Striving
Ability

• Office Layout
• Lighting
• Furniture and Equipment

Hypothesis
H1: There is a relationship between office layout, lightening, furniture and equipment, and
employees' performance

H2: Employee workplace environment positively and significantly affects employee

performance.

H3: Employee workplace environment significantly affects employees' commitment.

 H4: Employee workplace environment significantly affects employees' achievement-
striving ability.

H5: Employee commitment significantly mediates the relationship between employee

workplace environment and employee performance.

H6: Achievement striving significantly mediates the relationship between employee

workplace environment and employee performance.

Methodology
A questionnaire of 5 questions on demography, workplace layout, lighting, furniture and
equipment, and mediation function of employee commitment and success striving capacity will be
developed from many sources.

There is an immediate need to find facilitators who might enhance the link between the
workplace environment and the performance of workers in order to finish the job given to analyse
the influence of the workplace environment on the performance of employees. Due to this need,
the subsequent study will focus on the function that worker devotion and the ability of employees
to strive for successes play as mediators.

Population and Samples

For the purpose of this investigation, we will be collecting data from the participants using
a method known as cross-sectional research. Survey research is one of the most prevalent
applications of this research methodology; nevertheless, the researchers had previously conducted
their investigations using a cross-sectional study design (Saqib et al., 2017; Wu et al., 2022).

At this context, instructors working in academic establishments will be contacted for their
input. The respondents in this study were chosen based on the findings of earlier research, in which
academic teaching staff members were contacted for the purpose of data collecting to investigate
the influence of their employment environment (Abun, 2021).

As a consequence of this, and in accordance with the suggestions made by the sample size
requirements, I will hand out a total of four hundred questionnaires to the respondents.
Data Analysis
In this project, I will use a multi-variate data analysis tool to evaluate the hypotheses via
structural equation modeling (SEM). In order to accomplish this goal, the method known as partial
least square (PLS), which is applied via Smart PLS, will be used (Ali et al., 2018). The complicated
nature of research frameworks and models is handled quite capably by this piece of software. In
addition to this, clever PLS is able to make accurate predictions even with a limited sample size,
and it performs very well when dealing with limited sample sizes (Hair Jr et al., 2021). Last but
not least, it is better at dealing with non-normal data, and the problem of normalcy is one that
Smart PLS handles quite well. The evaluation of SEM will be based on two different approaches
or methods: the first will use the measurement model, and the second will use the structural model
(Hair et al., 2019).

Conclusion
The study's results will help the company respond appropriately to any difficulties that
occur inside the workplace. The company will also be able to take into account the aesthetics of
the workplace as a means of boosting output. The office's physical setting is crucial to maintaining
productivity among workers. Organizations need to give careful attention to the physical
environments in which personnel execute their duties if they are to achieve their goals and increase
efficiency.

It will become apparent during mediation that the positive work environment encouraged
employees to give their all and strive for greater heights, which in turn enhanced productivity. As
a result, this will occur. To be more specific, the culture of an organisation has the ability to boost
workers' drive for success, and people in general have a high tolerance for stress and a swift
recovery rate after setbacks. Similarly, a positive workplace encourages dedication from workers
by creating an atmosphere where they feel valued and appreciated. Loyalty to a firm usually
develops naturally out of an employee's dedication to their job. Since people perform better on the
job when they have a sense of loyalty to their company, it stands to reason that cultivating a sense
of loyalty among workers may boost productivity. Because dedicated workers are more invested
in the success of their company, they will be able to bring their A-game to their work.
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