ABSTRACT

The importance of the working environment of any organization to a very large extent determines performance of employees in that organization which in turn determines the success of such organization. This study is intended to explore the effects of internal environment of job performance and the make-up of what constitutes an internal environment in the company used as a case study. There are various factors that determine an internal environment such as leadership styles, cash flow position, government legislature and motivation. The employees’ performance on the jobs is basically a function of two variables; one is the individual’s ability to perform the job, and secondly, the motivation that encourages or drives him to use this ability in the actual performance of the job. It is widely assumed that motivating persons who posses high ability will lead to greater increase in performance and productivity. There was a decline of staff turnover in the company under study, who left in search of better working environment in terms of better promotion. Policy, better remuneration and better working conditions. This has reduced the performance of some workers as well as their productivity and efficiency. This led to finding out if incentives such as bonuses are attractive enticement to workers and also to find out if salaries paid in the company under study are considered attractive when compared to other manufacturing companies. Both primary and secondary methods of data collection were used for this study. The population was determined, sample drawn and questionnaires designed for data collection. Data was collected, analyzed and interpreted. The study therefore recommends that, the work environment should be made conducive and improved in terms of nature of supervision, boss-employees relationship, and employee-employee relationship and most important in terms of motivation.

TABLE OF CONTENT

Title Page                                                                         i

Approval Page                                                                  ii

Certification                                                                     iii

Dedication                                                                       iv

Acknowledgment                                                             v

Abstract                                                                         viii

Table of Contents                                                             ix

CHAPTER ONE: INTRODUCTION

1.1   Background of the Study                                         1

1.2   Brief History of Unilever Nigeria Plc                         8

1.3   Statement of Problem

1.4   Objective of the Study

1.5   Significance of Study                                                       11

1.6   Scope of the Study                                                   12

1.7   Limitations of the Study                                          12

1.8   Research Questions                                                 13

1.9   Research Hypothesis                                                       14

1.10 Definition of Terms                                                  15

References                                                               17

CHAPTER TWO: LITERATURE REVIEW

2.0   Introduction                                                             18

2.1   Historical Background                                             18

2.1.1 The notion and the Value of Work                          19

2.2   Theoretical Framework                                            19

2.2.1 Why Do Men Work                                                  19

2.2.2 What is Work Environment                                     21

2.2.3 Determinant of Work Environment                         23

2.2.4 Leadership/Managing Style                                    23

2.2.5 Motivation and Productivity                                    25

2.2.6 Job Enlargement and Enrichment                          34

2.2.7 The concept of Job Satisfaction                              35

2.2.8 Operationalizing Job Satisfaction                           36

2.2.9 Job Satisfaction and Employee’s Performance                37

2.3   Cashflow Position                                                    39

2.4  Government Legislation/Policies                              40

        References                                                               41

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction                                                               42

3.1 Research Design                                                                42

3.2 Identification of Population                                                42

3.3 Method and sources of Data                                      43

3.3.1 Primary Data                                                           43

3.3.2        Secondary Data                                                      43

3.4 Questionnaire Design                                                        44

3.5  Questionnaire Assumptions                                     45

3.6  Data Analysis                                                            45

3.7 Limitation of the Research Methodology                    47

3.8 Restatement of Research Questions and

Research Hypothesis                                                       48

References                                                               49

CHAPTER FOUR: INTRODUCTION

4.1   Data Presentation                                                    50

4.2   Analysis of Questionnaire                                                50

4.3   Test of Hypothesis                                                   61

CHAPTER FIVE: SUMMARY, RECOMMENDATION AND CONCLUSION

• Summary of Major Findings                                    72
• Recommendations                                                   76
• Conclusion                                                              77

Bibliography                                                           80

Questionnaire                                                         82

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Man wherever he is, be it at home, school or even the company he keeps is always influenced by his internal environment.  The reason being that he is easily assimilated into the totality of his environment.

Generally, internal environment refers to one’s immediate surroundings including water, air, land in which one lives that influence one’s life.  But for the purpose of this research, internal environment here shall be referred to as elements within the work environment, such as working environment, management style, inter- relationship amongst staff and motivational factors – incentives, salary increase and opportunity to develop oneself. These have effects on the overall performance of an employee.

An improved work environment will result in a reduction in a number of complaints and absenteeism and will bring an increase in productivity, Roelofson (2002).

Employee makes critical difference between success and failure. The effectiveness with which organizations manage, develop, motivate and engage the willing contribution of the employees will enable them to capitalize on their expertise most efficiently. There is a link between people management and business performance. According to Roelofson one of the fundamental human requirements is work environment that allows people to perform their work optimally under comfortable condition.

People are beginning to be conscious of the fact that to be happy and cheerful in one’s work place, some conditions must be present even with little pay. For example, not withstanding whatever is provided for a seamstress for her job, if there is no machine, all that is provided comes to naught. Again, when a librarian is provided for a noisy environment, he will not carry out his work effectively because the environment suitable for effective library function is quietness and orderliness. Similarly, an Accountant who deals with figures will be annoyed if he is sharing a calculator with four staff members. Also, the secretary is looked upon as human machine, trained with the responsibility of taking note of what others may regard as minor and making suggestions based on records available. To effectively carry out these and other functions, the secretary needs a ‘hightech’ office where some electronic machines will complement his/her human ability.

In an employment situation, the employee promises to live up to expectation.  The employer expects nothing less. But the point is: has the employer provided a work environment that will facilitate the effective discharge of the employees’ assigned duties? Most employers keep complaining of poor returns from employee without taking out time to find out why the new employer has not performed beyond what the former one was able to do.

If an organization provides its employees with better work and most conducive working environment they can perform exceptionally well, and companies can capitalize on their enhanced productivity in the shape of cost reduction, which will ultimately contribute awards rich profits. The relationship between employee attitudes and company performance, as suggested by Patterson et’ al., (1997), is highly correlated. They suggested that managers of organizations who are eager to promote productivity and Profitability should pay close attention to the attitudes of their employees in order to make them more positive.

THE EFFECTS OF INTERNAL ENVIROMENT ON EMPLOYEE AND BUSINESS PERFORMANCE

The internal environment has the biggest effect on employee performance and productivity. As a result of that, businesses are taking a more strategic approach to environmental management to enhance their productivity through improving the performance level of the employees.  Govindarajulu (2004)

It is evident in the research findings of Patterson et’al, (2004) that the more satisfied workers are with their internal environment the better the company is likely to perform in terms of subsequent profitability and productivity and vice versa.

Many managers and supervisors labour under the mistaken impression that the level of employee performance on the job is only proportional to the size of the employee’s pay packet.  Although this may be true in a minority of cases.  Numerous employee surveys have shown by and large this to be untrue.  In fact, salary increases and bonuses for performance in many instances, have a very limited short-term effect.  The extra money soon comes to be regarded not as an incentive but as an “entitlement”.

There are other factors that when combined provide a positive effect on employee performance and productivity. When these other factors are missing or diluted, the employee comes to work only for a paycheck.  In this case, the employee is present at work in body only, leaving their mind outside the gate.  Business Performance Pty Ltd (2006)

The key factors and how each can be utilized by supervisors and managers to boost performance are:

Goal- setting