THE EFFECT OF INTERNAL ENVIRONMENT ON EMPLOYEE PERFORMANCE: A CASE STUDY OF VITAL PRODUCTS LIMITED

ABSTRACT

This work was intended to explore the effects of internal environment on job performance and the make-up of what constitutes an internal environment in the company under study and examines the relationship between the workplace physical conditions and employee’s productivity. The workplace environment plays a crucial role for the employees. Nowadays employees may have a large number working alternatives, then the environment in workplace becomes a critical factor for accepting and/or keeping the jobs. The quality of environment in workplace may simply determine the level of employee’s motivation, subsequent performance and productivity. How well employees get along with the organization influence the employee’s error rate, level of innovation and collaboration with other employees, absenteeism and ultimately time period to stay in the job. With a chi square calculated value of 49.5 the researcher concluded that Provision of modern office equipment impact on workers performance, thus she recommends analysis could be extended by investigating the gender differences towards the effects of workplace environment and productivity survey.

TABLE OF CONTENTS

Title page –      –      –      –      –      –      –      –      –      i

Approval page –      –      –      –      –      –      –      –      ii

Certification page   –      –      –      –      –      –      –      iii

Dedication      –      –      –      –      –      –      –      –      iv

Acknowledgement  –      –      –      –      –      –      –      v

Abstract  –      –      –      –      –      –      –      –      –      vi

Table of contents    –      –      –      –      –      –      –      vii

CHAPTER ONE:

Introduction

1.1  Background of the study –      –      –      –      –      1

1.2  Statement of the problems    –      –      –      –      5

1.3  Objectives of the study –      –      –      –      –      7

1.4  Research questions –      –      –      –      –      –      7

1.5  Research hypothesis      –      –      –      –      –      8

1.6  Significance of the study –      –      –      –      –      9

1.7  Scope of the study –      –      –      –      –      –      9

1.8  Limitation of the study   –      –      –      –      –      10

• Definition of terms  –      –      –      –      –      –      10

References      –      –      –      –      –      –      –      13

CHAPTER TWO:

Literature Review

2.0  Introduction   –      –      –      –      –      –      –      14

2.1  The concept of internal environment     –      –      14

2.2  Profile of vital foods limited   –      –      –      –      17

2.3  Conceptual framework  –      –      –      –      –      19

2.4  Theoretical framework    –      –      –      –      –      20

2.5  Government legislation/policies     –      –      –      24

2.6  Cashflow position   –      –      –      –      –      –      25

2.7  Employee performance and internal environment 25

Reference –      –      –      –      –      –      –      –      44

CHAPTER THREE:

Research design and methodology

3.1    Research design    –      –      –      –      –      –      46

3.2    Sources of data    –      –      –      –      –      –      46

3.3     Population of the study       –      –      –      –      –      47

3.4     Sample size determination –      –      –      –      47

3.5  Method of data analysis  –      –      –      –      –      51

Reference –      –      –      –      –      –      –      –      53

CHAPTER FOUR

Data Presentation and Analysis     

4.1    Data presentation and interpretation   –        –        –        –        54

4.2  Analysis of research questions       –      –      –      –      54

4.3  Test of hypothesis –      –      –      –      –      –      62

CHAPTER FIVE    

Summary of Findings, Conclusion and Recommendations

5.1 Summary of Findings      –      –      –      –      –      –      68

5.2  Conclusion      –      –      –      –      –      –      –      69

5.3  Recommendation    –      –      –      –      –      –      72

Bibliography    –      –      –      –      –      –      –      73

Appendix –      –      –      –      –      –      –      –      76

Questionnaire  –      –      –      –      –      –      –      77

CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND OF THE STUDY

An organization is a complex entity made up of different systems and subsystems and these multiple systems need to be governed and led. Modern management is a process of creating, multiplying, distributing, preserving and perpetuating wealth and these can be also regarded as the five missions of management (Heady 1991).

People design results, accomplish results and deliver results and smart managers need to wire their result accomplishment model around people. There is need to make people knowledgeable, empowered, motivated and primed to achieve organizational objectives. Managers must explore their people to volunteer their hidden skills, emotions, talents, ambitions, and enthusiasm. Any manager who cannot get along well with his people can never achieve great results. A lonely manager can never accomplish great results.

Internal environment refers to one’s immediate surroundings. That phenomenon that makes up man’s existence including water, air, land in which one lives that influences one’s life.

In this research work, the researcher will peruse internal environment as it relates to factors that affect workers productivity and performance inherent within the organizational confines, such as management style, organizational environment, staff relationship, motivational factors-salary increase and opportunity to develop oneself. It has been established that an improved internal environment affords the organization better chances of increased performance, efficiency and productivity.

For desired results to come, line supervision is critical and managers must be available to task people and task stations. Managers need to lend that helping hand of success and result achievement. The ‘blame game’, the ‘shouting game’, and ‘I fire you’ games can never get desired results. They only intimidate task people.

The organizations’ personnel make critical difference between success and failure. The effectiveness with which organizations manage, develop, motivate and engage the willing contribution of the employees will enable them to capitalize on their expertise most efficiently. There is a link between people management and business performance.

An organization that provides its employees with better work and most conducive working environment will expect them to perform exceptionally well, and as well capitalize on their enhanced productivity in the shape of cost reduction, which will ultimately contribute to maximum return on investment. Patterson et’al (1997), suggest that the relationship between employee attitudes and company performance, is highly correlated. They suggested that managers of organizations who are eager to promote productivity and profitability should pay close attention to the attitudes of their employees in order to make them more positive.

In recent times there has been an increased consciousness of the fact that to be happy and cheerful in one’s work place, some conditions must be present even with little pay.

An employer expects nothing less from an employee than to leave up to expectation of contributing maximum input to organizational productivity. The employer amidst her expectation is saddled with the responsibility of providing a conducive environment that engenders that level of productivity she demands from the employee. The internal environment also exerts considerable pressure on human resource management. The internal environment comprises those factors that affect an organization’s human resources from inside the organization’s boundaries.

From the forgoing the researcher is geared towards unravelling the effects of internal environment on employee performance using Vital Products Limited as a case study.

1.2  STATEMENT OF THE PROBLEMS