EFFECTS OF WORK ENVIRONMENT ON EMPLOYEES’ PERFORMANCE IN THE CASE STUDY OF HABESHA BREWERIES S.C.

Abstract

The study was sought to investigate the effect of work environment on employees performance in case of Habesha Breweries S.C... Thus, the independent variables to be included physical work environment (workspace Layout, office furniture, Toilet & washing facilities and workload), Social work environment (motivations, Participative leadership style and organizational culture) and Administrative work environment (training, performance appraisal system and HR recruitment & selection practice) and whereas the dependent variable is employees performance. The study used close ended questionnaires. Both descriptive and explanatory research design was applied. Finally, the data that obtained from the respondents Data from questionnaires was analyzed through both descriptive and inferential statistics using SPSS software version 25 (Statistical Package for Social Science). The descriptive statistics ( minimum, maximum, mean and standard deviation) which helped the researcher to examined the general level of employee performance and the selected determinant factors of performance. The findings are, The average mean value for Physical work environment is 2.90, with a standard deviation of 1.2203, The average mean value for social work environment is 3.01, with a standard deviation of 1.1444, and The average mean value for administrative work environment is 2.79, with a standard deviation of 1.0817, all these indicating that most respondents have below average preferences. Moreover, regression coefficient table indicate that all the three variables has positive and significant impact on employee performance. Therefore, its recommended that physical work environment specially the work place layout such as seating arrangement of chair, table, e.t.c should be suitable and arrange in a proper way, there must have well clean toilet and washing room, the factory should also avoid overcrowding in the work place, also Transparency should add in corporate culture that enhances employee trust, commitment, and performance. through sharing results, involving in decision-making, and encouraging face-to-face communication. The company should have transparent and accountable reward and promotion guidelines. The factory should have to revise motivational package like; salary, allowances, overtime, promotional and recognition practice. Furthermore, HR recruitment positively impacts employee performance by placing new employees in divisions based on ability and skill.