Share:


Impact of workplace environment on employee performance: mediating role of employee health

    Iqra Hafeez   Affiliation
    ; Zhu Yingjun Affiliation
    ; Saba Hafeez Affiliation
    ; Rafiq Mansoor Affiliation
    ; Khaliq Ur Rehman   Affiliation

Abstract

Purpose – Purpose of current study is to explore, impact of workplace environment i.e Physical Environmental Factors and Behavioral Environmental Factors on employee productivity (EP) through mediating role of employee health (EH).


Research methodology –  This study adopted questionnaire survey method and data was collected from 250 employees working in software houses in Pakistan. Data has been analysed using SPSS and AMOS software. Reliability and correlation analysis was performed by using SPSS while; path analysis was performed using AMOS.


Findings – Results revealed that one unit variance in PEF incorporates 35% change in EH, 33% change in EH is caused by one unit increase in BEF and one unit increase in EH leads to 80% increase in EP. Physical and Behavioural Environmental Factors are positively affecting EH and EH is positivity affecting EP. Results of the study revealed that: employee health is mediating the relationship between workplace environment factors and employee performance.


Research limitations – We used working Environment factors to determine employee health; future studies can consider compensation practices, insurance plans and health benefits by the organisation, a large sample or increased number of mediating variables can be used. The current study has adopted cross-sectional design while future studies can consider longitudinal design.


Practical implications – Organisations must maintain a better environment in order to enhance employee productivity as, employee performance and workplace environment have direct and positive relationship, employees productivity and physical as well as behavioural environment are linked through employee health.

Keyword : Physical Environment Factors (PEF), Behavioural Environment Factors (BEF), Employee Health (EH), Employee Performance (EP), IT Industry

How to Cite
Hafeez, I., Yingjun, Z., Hafeez, S., Mansoor, R., & Rehman, K. U. (2019). Impact of workplace environment on employee performance: mediating role of employee health. Business, Management and Economics Engineering, 17(2), 173-193. https://doi.org/10.3846/bme.2019.10379
Published in Issue
Nov 26, 2019
Abstract Views
16911
PDF Downloads
12587
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Agarwala, T. (2003). Innovative human resource practices and organisational commitment: An empirical investigation. International Journal of Human Resource Management, 14(2), 175-197. https://doi.org/10.1080/0958519021000029072

Ahmed, R., Vveinhardt, J., Ahmad, N., & Mujeeb, M. (2014). The business outsourcing in telecommunication industry: case of Pakistan. Transformations in Business & Economics, 13(32B), 760-779.

Awan, A. G., & Tahir, M. T. (2015). Impact of working environment on employee’s productivity: A case study of banks and insurance companies in Pakistan. European Journal of Business and Management, 7(1), 329-345.

Aziz, I., Kumar, R., Rathore, A., & Lal, M. (2015). Working environment and job satisfaction among health professional working at a tertiary care hospital of Pakistan. Journal of Ayub Medical College Abbottabad, 27(1), 201-204.

Bell, E. E. (2008). Exploring employee perception of the work environment along generational lines. Performance Improvement, 47(9), 35-45. https://doi.org/10.1002/pfi.20032

Bentler, P. M., & Bonett, D. G. (1980). Significance tests and goodness of fit in the analysis of covariance structures. Psychological Bulletin, 88(3), 588. https://doi.org/10.1037/0033-2909.88.3.588

Bhatti, K. (2018). The mediation model of interrelationships among 4 C’s of work environment, employee performance and organisational performance in Pakistani organisations. Asia Proceedings of Social Sciences, 2(3), 176-180.

Cecilia Eberendu, A., Okon Peter Akpan, E., C. Ubani, E., & Ahaiwe, J. (2018). A Methodology for the categorisation of software projects in Nigeria based on performance. Asian Journal of Research in Computer Science, 1(4), 1-9. https://doi.org/10.9734/ajrcos/2018/v1i424758

Chandrasekar, K. (2011). Workplace environment and its impact on organisational performance in public sector organisations. International Journal of Enterprise Computing and Business Systems, 1(1), 1-19.

Chotikamankong, K. (2019). Using WBL as ODI to improve work environment and well-being of employee. International Research E-Journal on Business and Economics, 3(1), 1-17.

Cook, K. S., Cheshire, C., & Gerbasi, A. (2006). Power, dependence and social exchange. Stanford University Press.

Cottini, E., & Ghinetti, P. (2012). Working conditions, lifestyles and health: University of Aarhus, Department of Economics.

Danielsson, C. B., & Bodin, L. (2008). Office type in relation to health, well-being, and job satisfaction among employees. Environment and Behaviour, 40(5), 636-668. https://doi.org/10.1177/0013916507307459

Dozie Ilozor, B., Love, P. E., & Treloar, G. (2002). The impact of work settings on organisational performance measures in built facilities. Facilities, 20(1/2), 61-67. https://doi.org/10.1108/02632770210414308

Earle, H. A. (2003). Building a workplace of choice: Using the work environment to attract and retain top talent. Journal of facilities Management, 2(3), 244-257. https://doi.org/10.1108/14725960410808230

Eisenberger, R., Fasolo, P., & Davis-LaMastro, V. (1990). Perceived organisational support and employee diligence, commitment, and innovation. Journal of Applied Psychology, 75(1), 51-59. https://doi.org/10.1037/0021-9010.75.1.51

Ellison Schriefer, A. (2005). Workplace strategy: What it is and why you should care. Journal of Corporate Real Estate, 7(3), 222-233. https://doi.org/10.1108/14630010510631081

Emerson, R. M. (1976). Social exchange theory. Annual Review of Sociology, 2(1), 335-362. https://doi.org/10.1146/annurev.so.02.080176.002003

Fadlallh, A. W. (2015). Impact of job satisfaction on employees performance an application on faculty of science and humanity studies university of Salman Bin Abdul-Aziz-Al Aflaj. International Journal of Innovation and Research in Educational Sciences, 2(1), 26-32.

Gberevbie, D. E. (2010). Strategies for employee recruitment, retention and performance: Dimension of the Federal civil service of Nigeria. African Journal of Business Management, 4(8), 1447-1456. Goerg, S. J. (2015). Goal setting and worker motivation. IZA World of Labor. https://doi.org/10.15185/izawol.178

Gorin, S. S., Badr, H., Krebs, P., & Das, I. P. (2012). Multilevel interventions and racial/ethnic health disparities. Journal of the National Cancer Institute Monographs, 2012(44), 100-111. https://doi.org/10.1093/jncimonographs/lgs015

Grzywacz, J. G., & Bass, B. L. (2003). Work, family, and mental health: Testing different models of work–family fit. Journal of Marriage and Family, 65(1), 248-261. https://doi.org/10.1111/j.1741-3737.2003.00248.x

Gunaseelan, R., & Ollukkaran, B. (2012). A study on the impact of work environment on employee performance. Namex International Journal of Management Research, 71.

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152. https://doi.org/10.2753/MTP1069-6679190202

Hasan, A., Moin, S., & Pasha, M. (2019). Prediction of personality profiles in the Pakistan software industry – A study. Psych, 1(1), 320-330. https://doi.org/10.3390/psych1010022

Haynes, B. P. (2007). Office productivity: a shift from cost reduction to human contribution. Facilities, 25(11/12), 452-462. https://doi.org/10.1108/02632770710822562

Haynes, B. P. (2008a). An evaluation of the impact of the office environment on productivity. Facilities, 26(5/6), 178-195. https://doi.org/10.1108/02632770810864970

Haynes, B. P. (2008b). The impact of office layout on productivity. Journal of Facilities Management, 6(3), 189-201. https://doi.org/10.1108/14725960810885961

Hedge, A. (1982). The open-plan office: A systematic investigation of employee reactions to their work environment. Environment and Behaviour, 14(5), 519-542. https://doi.org/10.1177/0013916582145002

Hui, C. H., & Triandis, H. C. (1985). The instability of response sets. Public Opinion Quarterly, 49(2), 253-260. https://doi.org/10.1086/268918

Imran, R., Fatima, A., Zaheer, A., Yousaf, I., & Batool, I. (2012). How to boost employee performance: investigating the influence of transformational leadership and work environment in a Pakistani perspective. Middle-East Journal of Scientific Research, 11(10), 1455-1462.

Iqbal, A. (2008). Organizational climate and employees’ commitment: a study of the Pakistani knitwear industry. In Estableciendo puentes en una economía global (p. 32). Escuela Superior de Gestión Comercial y Marketing, ESIC.

Joshi, A., & Sarda, N. L. (2011, September). Do teams achieve usability goals? evaluating goal achievement with usability goals setting tool. In IFIP Conference on Human-Computer Interaction (pp. 313-330). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-23774-4_26

Kamarulzaman, N., Saleh, A., Hashim, S., Hashim, H., & Abdul-Ghani, A. (2011). An overview of the influence of physical office environments towards employee. Procedia Engineering, 20, 262-268. https://doi.org/10.1016/j.proeng.2011.11.164

Kaur, N., & Sood, S. K. (2015). Cognitive decision making in smart industry. Computers in Industry, 74, 151-161. https://doi.org/10.1016/j.compind.2015.06.006

Kelloway, E. K., Weigand, H., McKee, M. C., & Das, H. (2013). Positive leadership and employee wellbeing. Journal of Leadership &Organisational Studies, 20(1), 107-117. https://doi.org/10.1177/1548051812465892

Kiyatkin, L., & Baum, J. R. (2012, July). Linking human capital and organizational performance: the impact of employee health behaviors. In Academy of Management Proceedings, 2012(1), 17659. https://doi.org/10.5465/AMBPP.2012.17659abstract

Kundu, S. C., & Gahlawat, N. (2016). Effects of employee retention practices on perceived firm and innovation performance. International Journal of Innovation and Learning, 19(1), 25-43. https://doi.org/10.1504/IJIL.2016.073287

Leblebici, D. (2012). Impact of workplace quality on employee’s productivity: case study of a bank in Turkey. Journal of Business, Economics, 1(1), 38-49.

Mattson, E., Melder, J. D., & Horowitz, J. (2016). Workplace environment and the likelihood to participate in deviant behaviour. Sentience, 14, 24-26.

Mbembati, N. A., Mwangu, M., Muhondwa, E., & Leshabari, M. M. (2008). Performance indicators for quality in surgical and laboratory services at Muhimbili national hospital (MNH) in Tanzania. East African Journal of Public Health, 5(1), 13-16. https://doi.org/10.4314/eajph.v5i1.38971

McGuire, D., & McLaren, L. (2009). The impact of physical environment on employee commitment in call centres: The mediating role of employee well-being. Team Performance Management: An International Journal, 15(1/2), 35-48. https://doi.org/10.1108/13527590910937702

Mokaya, S. O., Musau, J. L., Wagoki, J., & Karanja, K. (2013). Effects of organisational work conditions on employee job satisfaction in the hotel industry in Kenya. International Journal of Arts and Commerce, 2(2), 79-90.

Mwendwa, P., McAuliffe, E., Uduma, O., Masanja, H., & Mollel, H. (2017). The impact of supportive supervision on the implementation of HRM processes; a mixed-methods study in Tanzania. Health Systems and Policy Research, 4(1), 1-9.

Naharuddin, N., & Sadegi, M. (2013). Factors of workplace environment that affect employees performance: A case study of Miyazu Malaysia. International Journal of Independent Research and Studies, 2(2), 66-78.

Peterson, T. O., & Beard, J. W. (2004). Workspace technology’s impact on individual privacy and team interaction. Team Performance Management: An International Journal, 10(7/8), 163-172. https://doi.org/10.1108/13527590410569887

Pitt-Catsouphes, M., Kossek, E. E., & Sweet, S. (2015). The work and family handbook: multi-disciplinary perspectives and approaches. Taylor & Francis. https://doi.org/10.4324/9780203885383

Ramlall, S. (2003). Organisational application managing employee retention as a strategy for increasing organisational competitiveness. Applied HRM Research, 8(2), 63-72.

Raziq, A., & Maulabakhsh, R. (2015). Impact of working environment on job satisfaction. Procedia Economics and Finance, 23, 717-725. https://doi.org/10.1016/S2212-5671(15)00524-9

Ronald, A. (2003). Reader of the purple sage: Essays on western writers and environmental literature. University of Nevada Press.

Samaranayake, V., & Gamage, C. (2012). Employee perception towards electronic monitoring at work place and its impact on job satisfaction of software professionals in Sri Lanka. Telematics and Informatics, 29(2), 233-244. https://doi.org/10.1016/j.tele.2011.08.003

Shahzad, F. (2014). Impact of organisational culture on employees’ job performance: An empirical study of software houses in Pakistan. International Journal of Commerce and Management, 24(3), 219-227. https://doi.org/10.1108/IJCoMA-07-2012-0046

Shahzad, F., Iqbal, Z., & Gulzar, M. (2013). Impact of organisational culture on employees job performance: An empirical study of software houses in Pakistan. Journal of Business Studies Quarterly, 5(2), 56.

Sharma, J., Dhar, R. L., & Tyagi, A. (2016). Stress as a mediator between work–family conflict and psychological health among the nursing staff: Moderating role of emotional intelligence. Applied Nursing Research, 30, 268-275. https://doi.org/10.1016/j.apnr.2015.01.010

Sullivan, J., Baird, G., & Donn, M. (2013). Measuring productivity in the office workplace (Final Report). Centre for Building Performance Research, University of Wellington, Wellington, New Zealand.

Thobaben, M., & Woodward, W. (1996). Workplace security for home health care employees. Journal of Home Health Care Practice, 8(6), 58-65. https://doi.org/10.1177/108482239600800611

Tucker, L. R., & Lewis, C. (1973). A reliability coefficient for maximum likelihood factor analysis. Psychometrika, 38(1), 1-10. https://doi.org/10.1007/BF02291170

van der Voordt, T. J. (2004a). Costs and benefits of flexible workspaces: work in progress in The Netherlands. Facilities, 22(9/10), 240-246. https://doi.org/10.1108/02632770410555959

Van Der Voordt, T. J. (2004b). Productivity and employee satisfaction in flexible workplaces. Journal of Corporate Real Estate, 6(2), 133-148. https://doi.org/10.1108/14630010410812306

Vimalanathan, K., & Babu, T. R. (2013). Impact of environment ergonomics on the productivity of office workers. Australian Journal of Basic and Applied Sciences, 7(4), 366-374.