Organizations must step outside their traditional roles and comfort zones to look at new ways of working. They have to create a work environment where people enjoy what they do, feel like they have a purpose, have pride in what they do, and can reach their potential. The study aimed to assess the impact of working environment on employees’ performance at Institute of Finance Management in Dar es Salaam Region. For the purpose of this study, descriptive research design was used. Simple random sampling technique was respectively used to select the respondents for the study. Respondents for this study were fifty (50) made up of twenty-five (25) senior staff and twenty-five (25) junior staff. Structured questionnaires were used for data collection.

The study findings indicate that, organization working environment had an impact on members as far as respondents are concerned. The study also revealed that employees’ will improve their performance if the problems identified during the research are tackled by the management. The problems are flexibility of working environment, work noise distraction, supervisor’s interpersonal relationship with subordinates, presence of job aid, the use of performance feedback and improve of work incentives in the organization so that to motivate employees to perform their job.

In conclusion based on the findings the study recommended that, the organization needs to have periodic meetings with employees to air their grievances to management and serve as a motivating factor to the employees. Management should find ways and means of communicating their goals and strategies to their employees in order to achieve what the organization is in business for, its mission and vision.












Background to the Study1

Statement of the Research Problem2

Research Objectives4

General Objective4

Specific Objectives4

1.3 Research Questions 4

Significance of the Study5

Scope of the Study5

Organization of the Study6




Conceptual Definitions7

Working Environment7

Employee Performance9

Theoretical Literature Review10

Goal-Setting Theory11

Expectancy Theory12

Maslow’s Hierarchy of Needs Theory12

Frederick Herzberg's Theory14

Mcgregor Theory X and Theory Y15

Working Environment Factors that Affect Employees Performance16

Supervisor Support16

Job Aid17

Physical Work Environment17

Performance Feedback18

Workplace Incentives19

Empirical Analysis19

Empirical Analysis in the World19

Empirical Analysis in Africa21

Empirical Analysis in Tanzania22

Research Gap24

Conceptual Framework25

Theoretical Framework26

Job Aid and Employee Performance26

Supervisor Support and Employee Performance26

Physical Work Environment and Employee Performance27

Work Incentives and Employee Performance27

Performance Feedback and Employee Performance28




Research Design29

Study Area29

Population of the Study30

Sample Size and Sampling Techniques30

Sample Size30

Sampling Techniques31

Data Collection Methods31

Primary Data32

Secondary Data32

Data Collection Tools32




Reliability and Validity of Data34

Data Analysis34




Findings and Data Analysis35

Gender of Respondents35

Rank of Respondents36

Age of Respondents36

Physical Working Environment37

Workplace Noise Distraction38

Employee Performance Feedback38

Communication of organization Goals and Strategies39

Job Aid40

Employee Recognition as Individual41

Communication between Employees42

Employee Career Advancement43

Employee Relationship with Supervisor43

Employee Job Security in the Organization44

Clear Definition of Task45

Supervisor’s Rating on Communication46

Supervisor’s Rating on Planning and Organizing46

Supervisor’s Rating on Directing and Coordinating47

Supervisor’s Rating on Job/Technical Knowledge48

Work Incentives towards Employee Performance50

Length of Working Period52

Referral of a Friend to Work with the Organization52

Fairly Treatment of Rewarding Employees53

Discussion of the Findings54




Summary of the Main Findings57

Implications of the Findings57



Limitations of the Study60

Suggested Area for Further Study61




Table 3.1:  Sample Composition of the Study 31

Table 4.1: Gender of Respondents 35

Table 4.2: Rank of Respondents 36

Table 4.3 : Age of Respondents 36

Table 4. 4: Physical Working Environment 37

Table 4.5 : Workplace Noise Distraction 38

Table 4.6: Employee Performance Feedback 39

Table 4.7: Communication of Organization Goals and Strategies 40

Table 4.8: Job Aid 40

Table 4.9: Employee Recognition as Individual 41

Table 4.10: Communication between Employees 42

Table 4.11: Employee Career Advancement 43

Table 4.12: Employee Relationship with Supervisor 44

Table 4.13: Employee Job Security in the Organization 44

Table 4.14: Clear Definition of Task 45


Figure 2.1 Maslow’s theory hierarchy needs 13

Figure 2.2: Conceptual Framework 25

Figure 4. 1:  Supervisor’s rating on communication 46

Figure 4.2:  Supervisor’s rating on planning and organizing 47

Figure 4.3: Supervisor’s rating on directing and coordinating 48

Figure 4.4: Supervisor’s rating on job/technical knowledge 49

Figure 4.5: Supervisor’s rating on interpersonal relationship 50

Figure 4.6:  Work incentives towards employee performance 51

Figure 4.7: Length of working period 52

Figure 4.8: Referral of a friend to work with the organization 53

Figure 4.9: Fairly treatment of rewarding employees 54



Background to the Study

Working environment plays an important role towards the employees ‘performance. Working environment is argued to impact immensely on employees’ performance either towards negative or the positive outcomes (Chandrasekar2001).In the world, there are international organizations who debate the rights of employee. Most people spend fifty percent of their lives within indoor environments, which greatly influence their mental status, actions, abilities and performance (Dorgan, 1994). Better outcomes and increased productivity is assumed to be the result of better workplace environment. Better physical environment of office will boosts the employees and ultimately improve their productivity. Various literature pertain to the study of multiple offices and office buildings indicated that the factors such as dissatisfaction, cluttered workplaces and the physical environment are playing a major role in the loss of employees’ productivity (Carnevale 1992,Clements- Croome 1997).

In the 1990’s, the factors of work environment had changed due to the changes in several factors such as the social environment, information technology and the flexible ways of organizing work processes (Hasun & Makhbul, 2005). When employees’ are physically and emotionally fit will have the desire to work and their performance outcomes shall be increased. Moreover, a proper workplace environment helps in reducing the number of absenteeism and thus can increase thee mployees’ performance which leads to increased productivity at the workplace (Boles et al.2004).

As the Economic and Social Council reported in 2007, global economic growth is increasingly failing to create the kinds of new and better jobs that can lead to a reduction in poverty. Despite high and sustained economic growth in many developing countries, unemployment is rising, a large proportion of the labour force is working below poverty level wages, and the majority of non-agricultural employment is situated in the informal economy. It is of little surprise that in recent years there has been a shift of focus from a singular interest in economic growth to an enlarged concern with improving the quality of work. Governments from across Africa have forcefully called for action to overcome these challenges. The African Union Extraordinary Summit on Employment and Poverty Alleviation in Africa (Ouagadougou, September 2004) overwhelmingly endorsed the ILO’s Decent Work Agenda with an emphasis on the creation of quality jobs. The Government of the UnitedRepublic of Tanzania supports this pan-African call for the integration of employment growth and improved quality of work, as reflected in its National Strategy for Growth and Reduction of Poverty 2005– 2010 and its National Employment Policy of 2008.

Statement of the Research Problem

Noble (2009) states that more attention should be paid in identifying and dealing with working environment because when employee have negative perception to their environment they sometimes suffer from chronic stress. Opperman (2002) stated that, working environment means those processes, systems, structures, tools or conditions inthe workplace that impact favorably or unfavorably individual performance. The working environment also includes policies, rules, culture, resources, working

relationships, work location, internal and external environmental factors, all of which influence the ways that employee perform their job functions.

This study is designed to examine the impact of working environment on employee’s performance at the institute of finance management. This is the public institution which operates at the center of Dar es Salaam city with about 9000 students and 320 employees. The problem identified which made to undergo this research is based on the physical work environment which mostly affect employees’ performance. The institute is located in an area of 4 acres which is small compared to the number of students and employees. This resulted to lack of enough offices for employees to do their work effectively, noise which cause discomfort depending on the task they are given and the environment of the place they are working.

Through this study the employer will get to know how its work environment impacts greatly on the employee’s level of motivation and performance. A well designed office signals the values and objectives of the organization and the use of design in office interior communicates an organization values and identity. Office design therefore should be one of the factors in affecting employee’s productivity. Employee’s morale is often interrelated when it comes to productivity in the work environment. It is therefore important to find out the impact of working environment on employees’ performance at this institute which will provide knowledge and measures to other public institutions in Tanzania.

Research Objectives

This research will be guided by the following study objectives

General Objective

The general objective of this study is to assess the impact of working environment on employees’ performance at the Institute of Finance Management in Dar es Salaam.

Specific Objectives

i. To determine the contribution of performance feedback on employees’ performance.

ii. To assess the use of job aid towards employees’ performance.

iii. To determine whether physical work environment has influence on employees’ performance.

iv. To examine whether supervisor support contribute towards employees’ performance.

Research Questions

i. How does performance feedback improve employees’ performance?

ii. How can job aid enhance employees ‘performance?

iii. What are the physical work environments that add towards employees’ performance?

iv. Which contribution does a supervisor has towards employees’ performance?

Significance of the Study

It is anticipated that the findings of the study will pave way for the authorities of the institute of finance management to accept the variable that affects employees’ working environment and their performance at the organization. Such an acceptance could be utilized to improve on the working conditions of employees. It will also visualize that the findings of this study will enable the organization to know how to address issues concerning the employees and its working environment and to consider office design as an important factor in increasing employees’ performance.

It will therefore serve as a reference material for future researches in this area. Also, the results will throw more light on factors affecting employee’s performance as far as their environments are concerned. The study is expected to provide knowledge and measures to improve the working environment of employees for better performance in public institution specifically at the Institute of Finance Management in Dar es Salaam Region.

Scope of the Study

The study will focus on employees at the Institute of Finance Management. This is the public institution which operates at the city center of Dar es Salaam Region with about 9000 students and about 320 employees. This study will find out how working environment has a significant impact upon employee performance and productivity.

Organization of the Study

The study will be structured into five chapters. Chapter one will deal with introduction, statement of research problem, research objectives and significance of the study. Chapter two will consist of literature review which will comprise of conceptual definitions, theoretical review, empirical analysis and conceptual frame work. Chapter three will contain the research methodology which comprise of the research design, study area, research population, sampling design, and data collection methods. Chapter four will highlight the presentation and interpretation of data as well as discussing of findings. Chapter five will contain the summary of the study, recommendations and conclusions.



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