THE EFFECT OF WORK ENVIRONMENT ON EMPLOYEES PERFORMANCE CASE STUDY AT BANK OF ABYSSINIA

Abstract

This research is conducted to study the effects of work environment variables on employees’ performance in the case of Bank of Abyssinia. The study was conducted on 215 samples of the head office organs and six convenience branches. Both quantitative and qualitative research approaches were used using non-random sampling method of Judgmental sampling. Both questionnaires and interview are used as data instruments. The questionnaire response rate was 93% and they are encoded and inserted to SPSS for reliability of the data which has got a cronbach’s alpha coefficient of 0.875 and hence enable to undertake further analysis. The highest mean value on each sub-dimensions of the work environment goes to physical environment which indicates the least satisfaction value perceived by the respondents is the physical environment. The second is social environment and the relative better perception by the employees is to the psychological environment. The overall employee performance level has a mean value 2.53 which is nearer to neutral. Correlation analysis was also conducted to determine the relationship of working environment components and employee performance and the findings revealed that high correlation to the psychological and social variables so indicates much more effort and should be done by the management on the physical work environment sub-dimensions to increase the employee morale and performance.