The Impact Of Conditions Of Service On Employees’ Performance In Selected Small And Medium Scale Enterprises

Project and Seminar Material for Business Administration and Management BAM

Abstract

This study examined the Impact of Conditions of Service on Employees’ Performance in Selected Small and Medium Scale Enterprises. The study employed survey research design and sampled of three hundred and two respondents, three hundred and two copies of questionnaires were distributed and only two hundred and fifty copies retrieved. Data were presented and analyzed using simple percentage method and tables. Hypotheses formulated were tested using chi-square and Pearson Product Moment Correlation Analysis respectively. The result of finding revealed that conditions of service significantly affect on employees’ performance in small and medium enterprises. It was also revealed that conditions of service significantly affect on employees’ performance in small and medium enterprises. It was also revealed that conditions of service significantly affect on job satisfaction. The study concluded that employees’ performance is a function of motivation. This means that employees performance is influenced greatly or to a large extent by motivation. The study recommended amongst others that the management of small and medium enterprises should work towards achieving the positive effects rather than negative. Efforts should be made by the management of small and medium enterprises in Calabar Municipality to occasionally stimulate conditions of services by encouraging divergent views and rewarding workers for outstanding performance.

Chapter One

Introduction

1.1 Background of the Study

Any organization that wishes to succeed in achieving it aims and objectives has to maintain a good working condition so as to achieve its goals. Intrinsic factors is the incentives attached to one’s job that is what influences the manager within the job, and this include achievement, recognition, the work itself, responsibility promotion and possibility for personal growth, while extrinsic are the environmental condition attached to one’s work element that contribute or motivated the manger e.g. interpersonal relationship with colleagues and subordinates.

According to Armstrong (2009) well being at work exist when people are happy with their work, what they do, how they are treated and how they get on with others. The well-being of an office staff depends on the working staff depends on the working condition provided by the employers. The feeling of satisfaction and happiness arises from the work, and the work environment. In case study reported by Ahazu (1985), it shows that when Nigeria is observed in his traditional practices, is seen to be very much committed and to be very industrious or hardworking as to when it comes to the work environment where he appears to be iron challenge or he feel highly uncommitted and is not as hand working as he normally will feel at his traditional workplace.

Noble (2003) states that more attention should be paid in identifying and dealing with working conditions because when office secretaries have Negative perception to their work environment they sometime suffer from chronic stress.

This study was guided by the end factor model advanced by Frederick Herzberg (1950s) this theory is divided into two (motivational and maintenance factors) maintenance factor is also known as the (hygiene factor) such as working condition and job security. So working absence of maintenance bring high negative feelings and their presence on neutral state.Working conditions are created by the interaction of office manager and include psychological as well as physical working condition.

1.2 Statement of the Problem

In the world today, there are organization when debate on the right of their staff most people spend fifty percent of their lines within indoor environments, which greatly influence their mental status, actions, abilities and performance. Better outcomes and increase performance is assembled to be the result of better workplace environment. Better physical environment of office boost staffs and ultimately improve their performance.

Literature pertain to the study of multiple offices and office buildings indicates that the factors such as dissatisfaction; clustered workplace and the physical environment are playing a major role in the loss of office staffs performance, (Carnesville 1992). Therefore, the problem that this study addressed the impact of conditions of service on employees’ performance in selected small and medium scale enterprises.

1.3 Objective of the Study

The aim of the study is to investigate the impact of conditions of service on employees’ performance in selected small and medium scale enterprisesr; the objectives of the study are as follows:

To determine if organizational terms of employment has any impact on employee productivity.
To examine whether the physical work environment affect employee performance.
To find out if employee appraisal, training and development encourage high employee performance.
To find out if welfare scheme for employees trigger employee for high productivity.

1.5 Research Questions

The following research questions are formulated to guide the researcher;

Does organizational terms of employment has any impact on employee productivity?
Does the physical working environment affect employee performance?
Does employee appraisal, training and development encourage high employee performance?
Does welfare scheme and work schedule for employees trigger employee for high productivity?

1.5 Research Hypothesis

HO: Organizational terms of employment has any impact on employee productivity

1.6 Significance of the Study

The outcome of this study may provide useful and tangible information for office managers on ways to improve the performance of employee. In addition the completion of the research will also increase the volume of empirical literature in the subject area in the field of OTM in particular and management in general.Also, the result of this study will add the managers and business organization to understand the merit and the demerit of working condition on the performance office manager. With the aid of the above, the management will be able to adopt and adapt a favourable working atmosphere which will enhance effective, efficient and increase performance which in turn will increase employees productivity.

1.7 Scope of the Study

This study examined the Impact of Conditions of Service on Employees’ Performance in Selected Small and Medium Scale Enterprises. The study is however delimited to selected SME’s in Abeokuta.

1.8 Limitation of the Study

This study was constrained by a number of factors which are as follows:

Just like any other research, ranging from unavailability of needed accurate materials on the topic under study, inability to get data Financial constraint , was faced by the researcher ,in getting relevant materials and in printing and collation of questionnaires. Time factor: time factor pose another constraint since having to shuttle between writing of the research and also engaging in other academic work making it uneasy for the researcher

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

The aim of the study is to investigate the impact of conditions of service on employees’ performance in selected small and medium scale enterprisesr; the study determined if organizational terms of employment has any impact on employee productivity. It examined whether the physical work environment affect employee performance. It find out if employee appraisal, training and development encourage high employee performance.

The study employed survey research design and sampled of three hundred and two respondents, three hundred and two copies of questionnaires were distributed and only two hundred and fifty copies retrieved. Data were presented and analyzed using simple percentage method and tables. Hypotheses formulated were tested using chi-square.

5.2 Conclusion

A condition of employment refers to something that both the employee and employer agree to at the beginning of a worker’s employment. Examples of items that might be brought up when discussing conditions of employment include dress code, number of vacation days, hours worked each day, break policies, work-related responsibilities and number of sick days. These conditions can also encompass certain benefits such as retirement plans and health insurance coverage. A condition may also include a contract that states that an employee is given employment for a certain length of time so long as the employee does not violate the terms of the contract. Workers with more valuable workplace skills are more likely to be able to negotiate better employment conditions. Employees who are healthy and happy with their work are a important resource in a successful company. It is vital for the company to make sure that the operational environment and conditions give the correct surroundings for employees to achieve maximum performance in their work. Apart from the individual distress concerned, work-related harms and weakness price money in the form of weaken quality, efficiency losses, and bigger employee turnover and unwell leave. Everyone desires to do a high-quality job. So it is necessary to make the best possible surroundings for this to be attained.

Conclusively, The result of finding revealed that conditions of service significantly affect on employees’ performance in small and medium enterprises. It was also revealed that conditions of service significantly affect on employees’ performance in small and medium enterprises. It was also revealed that conditions of service significantly affect on job satisfaction. The study concluded that employees’ performance is a function of motivation. This means that employees performance is influenced greatly or to a large extent by motivation.

5.3 Recommendation

From the findings of the study, the folloing recommendations were made:

Small and Meduim enterprises should see increase/prompt payment as a motivation factor, that can increase productivity in the organization.
Small and Meduim enterprises should use employee inputs as a criteria for promotion of workers, because most of these workers in government are idle.
Small and Meduim enterprises should make the working environment conducive, so that the workers, can see their working environment as their second home.
Small and Meduim enterprises should adopt management by objective in which employee should be part in decision making of the organization so that all hands will be on deck
The structure of the organization should be restructure so that there will be cordial relationship between the employees and employer.
Working conditions should be improved and sustainable to enhance performance.
Management should be sensitive to the difference in needs and values among the employee. Every individual is unique and will respond differently to attempts to motive him or her.
Management should be sensitive to employees, complaints about low pay and unchallenging work. Too often management delude lxxx them into thinking that employees dissatisfaction can be lessened by painting work area piping in music, giving out a few more words of praise, or giving people longer work breaks.

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