Contents
Chapter 1 Introduction Show
Chapter 2 Literature Review
Chapter 3 Research Methodology
Chapter 4 Research Findings
Chapter
5 Conclusion and Discussions
References List of Figures
List of Tables
List of Figures
Executive SummaryAt present, there are so many companies that are operating in intense competitive environment. In such a hostile environment retaining the existing employees is an issue when all the competitors are trying to distract the employees by offering them attractive compensation, healthy workplace environment and lot more. The question of how to retain the existing employees is answered by attractive compensation, friendly leadership, balance between work-life conflicts and healthy work environment build a sense of belongingness among employees which prevents them to switch from one organization to another and subsequently improves their job performance which is very central for even and effective operation of an organization. This study on Factors Affecting Employee Performance looks into this phenomenon by seeking empirical justification in this regard considering the compensation, leadership, work-life conflicts and working conditions as main contributory factors towards employees’ job performance. Moreover, it was postulated that compensation (Taseema and Soeters, 2006), leadership (Cummings and Schwab, 1973) and working conditions (Yesufu, 1984) have a constructive impact on employee job performance whereas work-life conflicts (Lee and Hui, 1999) have negative association with job performance. A combination of the research philosophies is used for this research. The questionnaire was used to collect the quantitative data from the respondent. The scales used in the study were adopted from past research and were based on 5 point likert scale. A pilot test was conducted as to check the reliability of the scales using Cronbach’s Alpha which entailed that the scales being used in the study are reliable. Both the primary and secondary data and sources of information have been used for this research. Convenience sampling technique was used to collect the data and 240 questionnaires were distributed among the respondents. Out of which 200 were received back (Response rate = 83%) which are used in the data analysis. Frequencies, means and standard deviations along with correlations and regression are used for the final analysis. The analysis of the research entails that service quality and price perceptions have a positive impact on the customer satisfaction and that in turn has a strong positive impact on the customer loyalty. No significant demographic differences were found for the variables of customer satisfaction and loyalty. Differences with regard to the mobile operators were although evident. The marketers in the telecommunication sector must adopt customer focused strategy by stressing on service quality and improving pricing perceptions of the services provided. Moreover, the operators in the telecommunication sector need to develop a strong competitive edge in order to succeed in the market. The analysis entails that all the variables of the study prevail in corporate zone. Moreover, factors such as compensation and leadership had a significant positive impact on employee job performance where as work-life conflicts had a significant but negative association with job performance. Only the correlation among working conditions and employee job performance was found to be insignificant . In regression analysis model summary specifies that 66.3% of the variation in the dependent variable i.e. employee performance is accounted for by this model which is quite good. ANOVA tells goodness of fit of the overall model. In view of the findings, it is suggested that organizations must consider factors i.e. attractive compensation, friendly leadership, balance between work-life conflicts and healthy work environment to improve employees’ job performance which is a critical success factor for organizations to survive and compete in today’s competitive and dynamic corporate environment effectively. Key Words: Factors Affecting Employee Performance, Work-life conflicts, Leadership, Working conditions, Compensation, Corporate Sector, Performance level. [sociallocker id=”35370″] CHAPTER 1 IntroductionEmployee PerformanceEmployee performance is an important building block of an institute and factors which lay the foundation for high performance must be investigated by the organizations. Since every organization cannot progress by one or two individual’s effort, it is combined effort of all the members of the organization. Performance is a major multidimensional concept aimed to achieve results and has a strong link to strategic targets of an organization. Administrators at all the ranks have to participate their efforts and make maximum use of their abilities which sometimes are produced under control or without it. However, there are several hopes from administrators functioning for a business. Employee growth is one of the most important functions of Human Resource Management. Employee growth means to extend the abilities of an individual employee and organization as a whole so; hence employee development contains individual or employee and overall growth of the employee as when employees of the organization would develop the organization, organization would be more prosper and the employee performance would increase . Therefore, there is a direct link among Employee growth and Employee Performance. As when workers would be more urbanized, they would be more conten with the job, more devoted with the job and the performance would be increased. When employee performance would increase, this will lead to the organization efficiency. Employee Performance means employee production and efficiency as a result of employee growth. Employee performance will impinge on the organization’s performance. The various organizations think people are the main source for providing them the competitive advantage and therefore the organization’s performance increase. According to Collis and Montgomery, 1995 employees play an important role in organizational success. Employees’ performance has a positive relationship with organization performance. The major drawback takes place in organization is that when managers believe that their organizations are constantly working at the highest level of effectiveness, or that they do not need effort of their employees. However the excellent working of the workforce at all level of organization is the major influence on organization’s performance. Individual’s productivity has an impact on organization’s goals therefore it’s essential that each employee should be managed. Performance is essential to us as people and organizations. Employees are the asset for the organization. Organizations have learned the importance of these people in the organization without them the organization’s objectives could not accomplish. Every organization is evaluated by its accomplishment. The word performance is used extensively in all fields of administration. Employee growth is the major role in Human Resource Management. Employee development to enhance the capabilities of the all employees so when employees of the organization would develop the organization would be more flourished and the employee performance would increase ( ElenaP. 2000). When employees are satisfied with the organization they will show more productivity towards organization. There are five customs that affect on employee performance:
Working ConditionsOrganizations cannot afford to waste the potential of employees to get the spirited advantage. There are several factors that impact on employee performance. There are key factors in the employee’s workplace environment that impact greatly on their level of enthusiasm and performance. The workplace’s environment affects employee confidence, output and commitment – both positively and negatively. It is not just coincidence that new programs addressing lifestyle changes, work/life balance, health and fitness – previously not considered significant payback – are now primary considerations of potential employees, and common practices among the most admired corporation. In order to stimulate workers, firms have executed a number of routines such as performance based pay, employment protection agreements, practices to help balance work and family, as well as various forms of information sharing. In addition to motivation, workers need the skills and ability to do their job effectively. And for many companies, training the worker has become an important key into the production procedure. The quality of the employee’s workplace environment highly affects the level of employee’s motivation and following performance. How well they engage with the organization, especially with their immediate environment, influences to a great extent their error rate, level of innovation and partnership with other employees, absenteeism and, finally, how protracted they continue in the work. The main purpose of this research is to find out link among office design and productivity .For this purpose, 200 employees of Project Management were contacted and studied. The results of this research shows that workplace arrangement play an important part in for organization’s success.. Comfortable office designs encourage the employees and enhance their performance to a large extent. A large amount of people used their lives within internal atmosphere, which significantly manipulate their intellectual condition, procedures, aptitudes and efficiency (Sundstrom, 1994). Healthier infrastructure helps in improved product and better efficiency. improved substantial environment of organization will enhance the workers and finally recover their efficiency. A variety of previous studies concern to the research of various organizations and infrastructure pointed out that the dynamics like frustration; disordered organizations and the substantial atmosphere are playing a most important part in the failure of employees’ efficiency (Carnevale 1992, Clements-Croome 1997). Every place of work has distinctive equipments and spatial provisions, illumination and high temperature measures and diverse rank of sounds. The principle of this research is to evaluate the influence of the office design aspects on employees’ productivity. The previous studies shows that excellent office design has a constructive influence on employees’ efficiency and the similar hypothesis is being experienced in the offices here in Lahore. This research will seek to locate the special effects of office design on employees’ efficiency. There are other aspects that when shared offer an additional dominant determinant of employee performance. When the further features are mislaid or thinned, the worker does moves toward to job merely for a salary. In this case, the employee is physically present at job, but mentally absent from job and parting their brain remote the gateway. LeadershipA leader is the one who gives life to an organization; he takes care that purpose of an organization for which it was made is fulfilled; in short, a leader who is capable is one who is able to move the organization to the direction he imagines and sets. By having certain leadership competencies and skills, a leader should have ability to adapt different leadership styles and behaviors to achieve organizational goals and objectives. At the individual level, leaders who are able to persuade, stimulate and direct employees will often be rewarded by devotion and performance of their employees (Mosadegh & Yarmohammadian 2006). Good and effective leaders matter to the overall performance and well-being of the organization and its members; they also matter to other stakeholders of the organization, such as the customers and the society at large. In other words, effective leadership is a corner stone in life, in general, and in achieving organizations’ success, in particular. Leadership is a central feature of organizational performance. This is an essential part of management activities of people and directing their efforts towards the goals and objectives of the organization. There must be an appropriate form of behavior to enhance performance. Leadership might be viewed in terms of the role of the leaders and their ability to achieve effective performance from others. Akinboye (2005) defines leadership as leaders inducing followers to act for certain goals that represent the values and the motivations, the wants and needs, the aspirations and expectations of both leaders and followers. The most important dependent variable in industrial and organizational psychology is job performance. According to Keller (2006), your employees will give you their best if you have good expectations from them. If people feel that employers are not appreciating them for their good performance then they will feel de motivated. If an employer is not giving feedback on a good performance it will create a communication gap and ultimately the employee will feel overlooked and his performance will be declining. Employee motivation is one of the approaches of administrators to improve job efficiency among staff in businesses. Motivation is a basic psychological process. Encouraging is the management process of influencing actions based on the knowledge of what make people tick (Luthans, 1998). Luthans (1998) declares that motivation is the process that provokes, strengthens, guides, and maintains behavior and performance. That is, it is the process of stimulating people to action and to achieve a desired task. One way of inspiring people is to utilize effective motivation, which makes workers feel satisfied with and devoted to their jobs. There are other incentives as well other than money which can serve as motivators. However, in order to observe a valuable work performance in an organization, work motivation may not be the only main factor as laid by (Luthans, 1998). Leadership is significantly important at all levels in the organization. A leader works genuinely for his employees and the organization. Effective leadership and good management promote team work and help to achieve individual and group goals. Leaders have to keep up performance, sustaining existing performance while keeping eyes on performance indicators, leaders encourage creativeness and modernism, risk taking and skills for future development. Performance of all employees has to be sustained and boost up their confidence. A leader plays an important role in enhancing employee performance and sensation of the organization. Time administration on the side is the expansion of exercises and apparatus that raise a business time-efficiency. It is the talent to supervise and organize time (Webb, 2006). It instructs a number of manners that intend to enhance the productivity of a person in receiving the effects completed which require to be done. The most familiar analysis expression at work is time administration. It affects productivity and returns. As opined by Wood 2005, time administration at job is considerable for the accomplishment of any business and this entirely influence employees’ performance and the company’s finish artifact. To administer time successfully and refrain from anxiety are very important aspects to be successful in life. It has been exposed Wood, 2005 that most forceful and successful people are those who can brilliantly administer their time. Time has to be accurately handled for accomplishment to be achieved in life and place of work. Successful time supervision abilities are the realistic methods that have facilitated most important people in organization; community service arrive at the climax of their profession. It shows how to recognize and focus on actions that provide one the utmost productivity. Time administration proceedings help to save time and assist employees job smarter. CompensationAccording to various researchers there is a positive relationship between HR practices and employee performance (Gould-Williams, 2003; Tessema and Soeters, 2006) and organizational productivity (Qureshi, Akbar, Khan, Sheikh and Hijazi, 2010). HR plays an important role which may be a basis of competitive advantage. Previous researches have recognized that HRM practices play an important role in manipulating the employee performance (Shahzad, Bashir, and Ramay, 2008; Tassema and Soeters, 2006). In developing countries there are some confronts which limits and influence the role of HR practices in manipulating the organization and employee performance. Importance of HR practices in under developed countries have been recognized by Anakwe (2002). There are many variables which are included in HR practices but in this research work three HR practices are included which are compensation, promotion and performance evaluation. The main reason of selecting these three practices is based on fact represented by Shahzad et al. (2008) that in under developed countries physiological requirements (compensation, promotion and performance evaluation) have significant influence on employee performance. Compensation processes are based on compensation philosophies and approaches which are developed and supervised to give and sustain suitable types and levels of financial compensation (Bob, 2011). Armstrong (2005) argued that compensation management is a vital part of human resource management and it move toward organization’s performance. It leads to design, implementation of compensation that are geared to the enhancement of organization and employee’s productivity. Compensation engages a compensation structure in which employees who shows more productivity are paid more than the regular employee performance. Armstrong (2005) claims that compensation involves polices and approaches that intend to compensate the employees reasonably, fairly and time after time in accordance with their worth of the organization. Compensation values and goals must represent the whole culture and strategic policies of the organization. When employees are paid well their performance towards organizational productivity is increased. Performance evaluation and promotion practices are usually based on standard criteria, actions and strategies and executed by capable and skilled employees of the organization. Employee perception about the equality of these practices counts a lot. Promotion is the acknowledgement of employees’ efforts and his obligation to work. Every employee wants to receive rewards for his good performance. Pakistan is an under developed country. There is a need to make a atmosphere where people take plan to make HRM practices more clear. The final aim of all these practices should be improvement in performance of both employees and organization. ConflictConflict is major hazard for the workforce. In every business conflict is a reality of life. Conflict happening within a team and divisions of the organization. Task conflict is one aspect of intra group. It means discrepancy within member of a team relating in difference in ideas and views. Conflict is essential to the life and dynamics of teams. Task conflict and performance form the positive aspect of relationship. Workplace conflict is undoubtedly a costly proposition for all organizations. Some costs are clear and other costs are hidden. Clear cost are persists to rise such as when employee reply angrily instead of politely. Hidden cost effects on making decision. In conflict is a natural and unavoidable outcome for the organization. Organizational conflict arises when goals and ideas are different with each other. And in result of such conflict they irritate each other to obtain their goals. When resources are limited and freedom is not available conflict arises. Conflict is a part of organization’s life it occurs between individuals, between individual and the group. There are two kinds of conflict that are horizontal and vertical conflict. Horizontal conflict occur between individuals of the same level and vertical conflict occur in groups of different level. Work family conflict means a inter role conflict that arises due to irreconcilable roles in work and family area. Work- family conflict has two aspects: work to family conflict (WFC) shows organizational issues interrupting family unit and family to work conflict (FWC) shows personal issues disrupt work. Employee is most valuable asset for the organization since all belongings are reliant on individuals for their suitable consumption. Employee turnover is main problem for the organization and its main reason is work family conflict. As a result organizations are developing family friendly policies for their employees to keep them. Work family stability is the most budding perception in the ground of industry and in the world. Businesses are demanding to diminish such types of conflict for the organization’s progress. Work family conflict arises when employee cannot make a balance between his/her work and family. Most organizations assumed that elastic scheduling exercises and they turned into more family sociable for the reason that elastic job planning are universal mechanism of family approachable human resource strategies. Stress is also important element influencing the employee performance. In previous research it shows that stress had a negative impact on employee performance. Flexible scheduling also helps in reducing the stress. When conflict arises the performance of the employees are affected. It has a negative relationship with employee performance. Problem StatementToday, the major concern of corporate organizations is to enhance employees’ job performance in order to get the desired results from them, and this is becoming more challenging and difficult due to competitive nature of corporate environment. Existing literature indicates that factors such as attractive compensation, friendly leadership, balance between work-life conflicts and healthy work environment build a sense of belongingness among employees which prevents them to switch from one organization to another and subsequently improves their job performance which is very important for smooth and effective functioning of an organization. The main object of this research work was to find the influence of factors such as compensation, leadership, work-life conflicts and working conditions on employee job performance. Therefore, the study was aimed to investigate the association of (a) compensation with employee job performance, (b) leadership with employee job performance, (c) work-life conflicts with employee job performance and (d) working conditions with job performance of employees working in corporate zone. Objectives of Study
The major objective of the research work is to originate and ascertain the aspects that have influence on Employee performance.
In order to attain the main objective of the research work the secondary objectives are: The most important goal of this study is to recognize the following targets that are:
Research Questions
Development of HypothesisThe development of hypothesis is very essential. The acceptance or rejection of hypothesis shows the importance of research work. There are lot of variables that can affect the employees performance like self recognition, advancement, opportunities, training etc . After reviewing the previous work and different variables I have constructed the following hypothesis in my study. The hypothesis being tested in this study are as follows: H1= Work-life conflicts affect the employee job performance. H2= Leadership affect the employee job performance. H3= Working conditions affect the employee job performance. H4= Compensation affect the employee job performance. Theoretical Framework of Study:In this study, it has been conceptualized that factors such as leadership, compensation, conflicts and working conditions have significant impact on performance level of employees working in corporate zone. I considered leadership, compensation, conflicts and working conditions as independent variables whereas employee job performance as dependent variable. The conceptual framework for the study is as follows:
 |
Comparison of Original and Adopted Scale | ||
| Original Scale | Adopted Scale | |
Work- Life Conflicts | ||
| 1 | The demands of my work interfere with my home and family life. | The demands of my work interfere with my home and family life. |
| 2 | The amount of time my job takes up makes it difficult to fulfill family responsibilities. | The amount of time my job takes up, makes it difficult to fulfill family responsibilities. |
| 3 | Things I want to do at home do not get done because of the demands my job puts on me. | Things I want to do at home do not get done because of the demands my job puts on me. |
| 4 | My job produces strain that makes it difficult to fulfill family duties. | My job produces strain that makes it difficult to fulfill family duties. |
| 5 | Due to work-related duties, I have to make changes to my plans for family activities. | Due to work-related duties, I have to make changes to my plans for family activities. |
Leadership | ||
| 6 | My immediate boss acts friendly with members of the group. | The head of my organization keeps friendly relation with group members to keep their morale high. |
| 7 | My immediate boss sets standards of performance for group members. | The head of my organization sets bench mark for the performance of individuals. |
| 8 | My immediate boss helps others feel comfortable in the group. | The head of my organization is a problem solver and has ability to do so . |
| 9 | My immediate boss provides criteria for what is expected of the group | While assigning the task, it is the responsibility of leader to make the criteria expected from the group members that will help them to be clear on their part. |
| 10 | My immediate boss encourages group members to do quality work. | The leader usually encourages the member who are performing up to the mark. |
| 11 | My immediate boss behaves in a predictable manner toward group members. | The leader is able to foresee and pre-empts any alarming situation. |
| Working Conditions | ||
| 12 | My furniture is comfortable enough so that I can work without getting tired till 5pm. | My furniture is comfortable enough so that I can work without getting tired all the day. |
| 13 | The physical conditions at work influence my productivity. | The physical conditions at work influence my productivity. |
| 14 | My work space has many noise distractions. | My work space has many noise distractions. |
| 15 | I am able to control temperature or airflow in my office. | I am able to control temperature or airflow in my office. |
| 16 | Number of windows in my work area complete my fresh air and light need. | Number of windows in my work area complete my fresh air and light need. |
| 17 | My office is open enough to see my colleagues working. | My office is open enough to see my colleagues working. |
| 18 | I receive enough opportunity to interact with other employees on a formal level | I receive enough opportunity to interact with other employees on a formal level. |
| 19 | My work space serves multipurpose functions for informal and instant meetings. | My work space serves multipurpose functions for informal and instant meetings. |
| 20 | My job requirements are clear | My job requirements are clear. |
Compensation | ||
| 21 | Presence of attractive compensation system. | My organization provides me with attractive compensation system. |
| 22 | Presence of salary that encourages better performance. | It keeps me motivated to perform at my level best when my organization gives me better salary. |
| 23 | Performance evaluation has a lot to do with my salary. | The way my organization evaluates my performance directly affect my salary. |
| 24 | The basis for payment for example overtime payment is reasonable. | The basis for payment is reasonable. |
| 25 | Provision of priority to merit in promotion. | My organization gives promotion on the basis of merit. |
| 26 | Performance evaluation is considered important task by superiors. | I really appreciate that my superiors gives importance to performance evaluation to maintain the standard of organization. |
| 27 | The promotion process and procedures used by my employer are fair. | The promotion process and procedure used by my employer are fair. |
| 28 | I am satisfied with my bonuses received by my employer. | I am satisfied with monetary benefits received from my organization. |
Employee Job Performance | ||
| 29 | Employees are highly committed. | Employees are highly committed. |
| 30 | Employees feel pride on being a part of this company. | Employees feel pride on being a part of this company. |
| 31 | Employees take care for each other. | Employees take care for each other. |
| 32 | Employees are ready for sacrifices for betterment of the company. | Employees are ready for sacrifices for betterment of the company. |
| 33 | Employees work like being a part of a family. | Employees work like being a part of a family. |
| 34 | Employees have friendly relationship with each other. | Employees have friendly relationship with each other. |
| 35 | Teamwork is preferred over individual tasks. | Teamwork is preferred over individual tasks. |
| 36 | Employees view themselves as independent individuals who have to tolerate others around them. | Employees view themselves as independent individuals who have to tolerate others around them. |
3.6 Sampling
Sampling is a method by means of which a part of the whole population is selected as representative and data is collected from that selected sample and the results theoretically are applicable to the whole of the population. If the population is of small size then whole of the population could also be studied and the results then would be more reliable as there would be no probability of sampling error (Saunders, et al, 2009). The population in this study are the managerial and non-managerial employees. The population is quite large so sampling would be a good choice to save time and cost.
Convenience sampling is used in this research study. Out of total 240 questionnaires only 200 yielded a valid response which is used in the final analysis of the study.
3.7 Data Validity
Saunders, et al (2009) provided that data validity refers to the purpose the data serve to get the goals of the research work. If the data collected is in line with the aims of the research work then the data composed would be valid. To ensure the validity of the data collected, the constructs used in the questionnaire were adopted from various past researches (i.e. scales of leadership, compensation, conflicts, working conditions and employee job performance were adopted from Northouse, 2001; Tessema, & Soeters, 2006; Netemeyer, Boles, and McMurrian, 1996; Moos, 1994; Javorski & Kohli, 1993.respectively) and the variables used in the study are the most relevant to investigate the phenomenon under consideration.
3.8. Data Reliability
Reliability of the data is its consistency over time. Saunders, et al. (2009) provided that the data would be reliable if the same instruments yielded the same data when data is collected by another person at another time. To solve the issue of the reliability, the author requested the respondent to answer the questions being true and fair and according to best of their knowledge. Apart from this, the author took special care to design the research, collect the data and analysis process. Moreover Reliabilities of the scales being tested (using Cronbach’s Alpha) which were .74, .80, .78, .64 and .75 for leadership, compensation, conflicts, working conditions and employee job performance respectively.
3.9. Generalizabilty
The aim of many of the researches is sort out findings which are generalized able to the other organizations and situations. This not only enhances the value of the research but also provide practical justification to the research process. The gneralizabilty of the study largely depends upon the accuracy and health of the selected sample. It the sample selected is a true representative of the whole population then the study would be more generalizeable (Bryman and Bell, 2007). Researcher in this research did every precaution to tale right sample by adopting a systematic procedure so that sampling error could be avoided.
3.10 Analysis
The data collected is analysed to draw conclusion and test the hypothesis and solve the research questions. This research uses quantitative data which is easily analysable using statistical tools and techniques. SPSS was used to analyse the data. The demographic information is analysed using the frequencies while variables descriptive in shape of mean and standard deviation would be provided to see the strength of prevalence of the variable used in the study. In the last correlation analysis would be conducted to establish relationships among variables and see the significance of the relationship between variables.
CHAPTER 4
Research Findings
The major intention of this research work was to inspect the impact of various constructs such as compensation, leadership, work-life conflicts and working conditions on performance level of employees in Lahore. Findings obtained by conducting the questionnaire surveys may be of significant importance both in contributing to the literature and in terms of corporate sector are concerned.
4.1. Findings and Interpretations
Findings of the study can be explained with the help of different tables which show the results in an appropriate form. Table 4.1 illustrates the mean, median, mode and standard deviation scores of the variables of the study Tables 4.2 to 4.6 describe the frequency and percentage distribution on the opinion of employees working in different companies of Lahore on variables of the study. Tables 4.7 to 4.12 illustrate the data on demographic characteristics of the respondents. Whereas table 4.13 describes the Pearson Correlation between dependent and independent variables of the research study.
Table 4.1: Mean, Median, Mode and Standard Deviation scores of Dependent and Independent Variables of the Study (n=200)
Table 4.2: Frequency and Percentage Distributions on the Opinion of employees working in different companies operating in Lahore on work-life conflicts (n=200)
Table 4.2 illustrates the frequency and percentage distribution on the opinion of employees working in different companies operating in Lahore on work-life conflicts. Findings indicate that two hundred employees participated in the survey of which 75 (37.5%) agree and 12 (6%) strongly agree that corporate companies provide them flexible working schedule so that conflicts between their professional and social life may not arise. Eighty six (43%) employees provided that neutral opinion which was marked as indifferent (don’t know) in the questionnaire. However, 25 (12.5%) employees disagree and very few of the subjects strongly disagree on the construct of work-life conflicts. Therefore, majority of the employees agree on the prevalence of the construct work-life conflicts in their respective organizations. These findings can also be seen in the following figure.
Table 4.3: Frequency and Percentage Distributions on the Opinion of employees working in different companies operating in Lahore on leadership (n=200)
Table 4.4: Frequency and Percentage Distributions on the Opinion of employees working in different companies operating in Lahore on working conditions (n=200)
Table 4.5: Frequency and Percentage Distributions on the Opinion of employees working in different companies operating in Lahore on Compensation (n=200)
Table 4.6: Frequency and Percentage Distributions on the Opinion of employees working in different companies operating in Lahore on employee job performance (n=200)
Table 4.7: Frequency and Percentage Distributions on gender of the subjects (n=200)
Table 4.8: Frequency and Percentage Distributions on marital status of the subjects (n=200)
Table 4.9: Frequency and Percentage Distributions on qualification of the subjects (n=200)
Table 4.10: Frequency and Percentage Distributions on designation of the subjects (n=200)
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Table 4.11: Frequency and Percentage Distributions on age of the subjects (n=200)
Table 4.12: Frequency and Percentage Distributions on experience of the subjects (n=200)
Table 4.13: Pearson Correlation between dependent and independent variables of the study (n=200)
| Employee Job Performance | ||
| Work-Life Conflicts | Pearson Correlation | -.147* |
| Sig. (2-tailed) | .037 | |
| Leadership | Pearson Correlation | .198** |
| Sig. (2-tailed) | .005 | |
| Working Conditions | Pearson Correlation | .094 |
| Sig. (2-tailed) | .184 | |
| Compensation | Pearson Correlation | .157* |
| Sig. (2-tailed) | .026 |
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed)
Table 4.13 provides the Pearson’s correlation coefficient between independent (work-life conflicts, leadership, working conditions and compensation) and dependent (employee job performance) variables of the study which is found using the SPSS 19. The findings indicate that constructs of leadership, working conditions and compensation have positive association with job performance of employees working in different companies of Lahore. The construct of work-life conflicts has a weak correlation with employee job performance as provided by its correlation coefficient i.e. -.147 (sig < .05), thus i accept H1 which postulates that work-life conflicts have significant and negative impact on employee job performance. On the other hand, constructs of leadership and compensation yielded positive and significant correlation coefficients of .198 (sig < .01) and .157 (sig <.05) respectively which lead me to accept H2 and H4 which confirms that there exists a positive and significant association of leadership and compensation with employee job performance but the relationship between working conditions and employee job performance is found insignificant as provided by its correlation coefficient i.e. .094, thus we reject H3 which specifies that working conditions have an impact on employee job performance. There is insignificant association between working conditions and employee job performance. Overall findings are in conformity with the literature of previously done similar studies i.e. friendly and cooperative leadership and attractive compensation significantly boost employees’ morale and enable them to deliver superior job performance. On the other hand, imbalance between personal and professional life due to non-flexibility of working schedule leads to work-life conflicts which pour some stress on employees and as a result their performance tends to decline. The only finding which is not in conformity with the previous literature is the insignificant association of working conditions with employee job performance and this may be due to couple of reasons i.e. many of the previous researches on this construct have been done in developed countries and we done this research study in a developing country where workplace environment is entirely different from developed countries on religious, cultural and other grounds. Moreover, due to the underdeveloped nature of the Pakistan, employees may be more motivated towards other factors such as attractive compensation and monetary benefits, that’s why working conditions seem to have less importance in influencing job performance of employees working in corporate sector.
CHAPTER 5
Conclusions and Recommendations
This part of the study entails the conclusion, provide recommendations and acknowledge the limitations of the study on Factors Affecting Employee Performance conducted.
5.1 Conclusion
The goal of this research work is to solve the problems faced by private companies due to various organizational factors which significantly influence the employees’ job performance. In order to achieve this objective, the study identifies the factors that have significant impact employees’ motivation level and that in turn improve employees’ job performance. Authors originated so as to employees’ work performance is influenced through various organizational issues like employees’ perceptions regarding the workplace environment, organizational conflicts, compensation practices and leadership styles of their immediate bosses.
In the practice of human resource management, performance of employees are prioritized in the exploration within the idea of healthy workplace environment, balance between work & real life conflicts, appropriate compensation practices and friendly organizational leadership. The positive impact of these factors on employees’ job performance is widely advocated in the literature. Evidences entail that healthy workplace environment makes the employees motivated and enhances their job satisfaction and performance. On the other hand, heavy workloads coupled with imbalance between work and real life conflicts significantly decreases employees’ job performance. As far as the compensation practices are concerned, it has been witnessed that if employees think their employers are offering them a good compensation then their motivation level increases and in result their performance to work is also increase. Similarly, efficient and friendly leadership motivates the employees towards the achievement of individual as well as organizational goals and subsequently improves their job performance. So focus of the management of a particular organization should be on proper and efficient use of these factors to improve productivity and overall organizational performance. The relationships found in this study are important one for their practical implications. Moreover, these findings are in conformity with the existing literature therefore justifiable up to great extent.
It has been witnessed that in today’s market-driven system, employees are not completely loyal to their respective employers. Today, all they need is the quality of benefits such as healthy workplace environment and appropriate compensation which satisfy their requirements effectively. Hence the major need of today’s organizations is to find the ways to create satisfied and loyal customer base that can’t be eroded even in the face of severe competition. Therefore, these organizations must consider various antecedents of superior job performance in order to have happy and loyal employee-base which is very much important for the success of the company.
5.2 Suggestions
This study is more practical than theoretical as it intends to solve a problem of immediate concern which the corporate companies are facing. The following recommendations are put forward in this regard:
- The company could provide healthy workplace environment to the workforce as this concept has the potential which can win the hearts of the employees and the companies could effectively snatch the market share pie from the jaw of its competitors through improved productivity and performance.
- An organization’s success mainly depends on actively utilizing of human resources and employees serve as asset for the organization. There should be friendly leadership in the organization which motivates the employees towards the achievement of individual as well as organizational goals through affective communication.
- An organization could build healthy relationship with its workforce through the provision of appropriate compensation practices. Thus the organizations applying this concept must make it possible that employees feel that they are paid well. Moreover to remain in touch with the employees, frequent surveys regarding the employees’ opinions and expectations must be done to know the pulse of the workforce and respond accordingly.
- Employees could be provided cooperative and friendly leadership to make them more motivated and committed towards their respective financial institutions and subsequently to improve their job performance.
- Individualized approach could be adopted by analyzing the demographic trends in the industry. The focus should be to provide the maximum value to the employees on individual level and demographic trends could reveal the significant patterns which the organization could exploit and take benefits from in order to make the employees happy and improve their job performance.
- The corporate companies could provide attractive compensation and monetary incentives to the workforce as this concept has the potential which can win the hearts of the employees and motivate them to deliver superior job performance; and in this way organizations could effectively snatch the market share pie from the jaw of its competitors through improved productivity and performance.
- Organizations could also provide flexible working hours free from various organizational pressures in order to reduce the work and real life conflicts which may significantly enhance the employees’ as well as overall organizational performance and productivity.
5.3 Research Limitations
This research has been concocted for eight companies of corporate sector of Lahore, to which it applies well. It can also be generalized to the whole corporate sector of Lahore or even Pakistan especially in rural areas. But, further from that this research would have limited value. This study also might not be applicable to the sectors other than corporate sector.
This study on Factors Affecting Employee Performance considers just four factors which have influence on employees’ job performance i.e. workplace environment, organizational conflicts, leadership style and compensation practices. The current research study was performed as one-shot study in which we collected the data at single point in time and therefore may be affected through a few regency concerns. Although all the proposed hypothesis were supported on prior research studies and evidences shown in the previous literature, it is not possible to explain causal relationships among the variables of the study due to the absence of a longitudinal research design. Hence, the findings of the study are not an evidence for explaining causal relationships among variables. The entity of study of the current research was the individual employee.
No comparison was made among different small and large companies as well as some of the demographic characteristics of the sample population. Any variability in these factors may have affected the findings of this study. Target population of the study was white collar employees with higher qualifications.
Much of the research on the phenomenon has been conducted in developed countries (Grover & Crooker, 1995; Scandura & Lankau. 1997). A significant and effective contribution will be made to the development of human resource management literature by conducting the research across cultures. This study may be of significant importance both in contributing to the literature and in terms of banking sector is concerned. One of the most important strategies for corporate companies of today must be the provision of attractive compensation, friendly leadership, balance between work and life along with healthy workplace environment in order to keep the employees happy and motivated which subsequently enable the workforce to develop personage as well as develop overall efficiency and productivity of the organizations.
5.4 Suggestions for Future Research
The following recommendations for future research are put forward in this regard:
- Future research could be conducted in other sectors as well in order to simplify the results of this study.
- Future research could be done by taking other variables such as advancement opportunities and self recognitions which also have significant influence on employees’ job performance. Although much work has been done on the subject but still many dimensions of the phenomenon are still unknown. Above discussed factors in relation to job performance being the social phenomenon cannot be predicted in full.
- Future research could be done on longitudinal basis to have more detailed information about the phenomenon.
- Future researches might hold at group levels to gather more authentic and actual information regarding the phenomenon as compared to individual level target population. However, difficulties in taking a sample large enough for significant results should be measured when carrying out the study on Factors Affecting Employee Performance at a advanced stage of examination.
- Future research could also consider small and large companies for comparison in order to have more insights about the phenomenon.
- Future research could also be done by including the lower level employees in the target respondents as they might better understand and subsequently responded to different questions asked in the questionnaire with minimum errors as compared to managerial level employees.
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Dear Sir/Madam I am a student of Masters. The objective of this questionnaire is to find out the factors affecting performance level of employees. The information that you will provide me will only be used for academic purpose and the identity will remain anonymous.
Factors Affecting Employee Performance Questionnaire
SECTION A
Demographics (Please tick any one option)
Gender Male Female
Marital Status Single Married
Qualification Bachelors Masters ACMA Chartered Accountant
Anyother —————-
Job Designation ————————
Age (in years) ————————
Experience (in years) —————-
SECTION B
Each respondent could rate each item on a 5 point likert scale where 1= Strongly Disagree 2= Disagree 3= Neutral 4= Agree 5= Strongly Agree
| 1 | The demands of my work interfere with my home and family life. | 1 | 2 | 3 | 4 | 5 |
| 2 | The amount of time my job takes up, makes it difficult to fulfill family responsibilities. | 1 | 2 | 3 | 4 | 5 |
| 3 | Things I want to do at home do not get done because of the demands my job puts on me. | 1 | 2 | 3 | 4 | 5 |
| 4 | My job produces strain that makes it difficult to fulfill family duties. | 1 | 2 | 3 | 4 | 5 |
| 5 | Due to work-related duties, I have to make changes to my plans for family activities. | 1 | 2 | 3 | 4 | 5 |
| 6 | The head of my organization keeps friendly relation with group members to keep their morale high | 1 | 2 | 3 | 4 | 5 |
| 7 | The head of my organization sets bench mark for the performance of individuals. | 1 | 2 | 3 | 4 | 5 |
| 8 | The head of my organization is a problem solver and has ability to do so . | 1 | 2 | 3 | 4 | 5 |
| 9 | While assigning the task, it is the responsibility of leader to make the criteria expected from the group members that will help them to be clear on their part. | 1 | 2 | 3 | 4 | 5 |
| 10 | The leader usually encourages the members who are performing upto the mark. | 1 | 2 | 3 | 4 | 5 |
| 11 | The leader is able to foresee and pre-empts any alarming situation. | 1 | 2 | 3 | 4 | 5 |
| 12 | My furniture is comfortable enough so that I can work without getting tired all the day. | 1 | 2 | 3 | 4 | 5 |
| 13 | The physical conditions at work influence my productivity. | 1 | 2 | 3 | 4 | 5 |
| 14 | My workspace has many noise distractions. | 1 | 2 | 3 | 4 | 5 |
| 15 | I am able to control temperature or airflow in my office. | 1 | 2 | 3 | 4 | 5 |
| 16 | Number of windows in my work area complete my fresh air and light need. | 1 | 2 | 3 | 4 | 5 |
| 17 | My office is open enough to see my colleagues working. | 1 | 2 | 3 | 4 | 5 |
| 18 | I receive enough opportunity to interact with other employees on a formal level. | 1 | 2 | 3 | 4 | 5 |
| 19 | My workspace serves multipurpose functions for informal and instant meetings. | 1 | 2 | 3 | 4 | 5 |
| 20 | My job requirements are clear. | 1 | 2 | 3 | 4 | 5 |
| 21 | My organization provides me with attractive compensation system. | 1 | 2 | 3 | 4 | 5 |
| 22 | It keeps me motivated to perform at my level best when my organization gives me better salary. | 1 | 2 | 3 | 4 | 5 |
| 23 | The way my organization evaluates my performance directly affect my salary. | 1 | 2 | 3 | 4 | 5 |
| 24 | The basis for payment is reasonable | 1 | 2 | 3 | 4 | 5 |
| 25 | My organization gives promotion on the basis of merit. | 1 | 2 | 3 | 4 | 5 |
| 26 | I really appreciate that my superiors gives importance to performance evaluation to maintain the standard of organization. | 1 | 2 | 3 | 4 | 5 |
| 27 | The promotion process and procedure used by my employer are fair. | 1 | 2 | 3 | 4 | 5 |
| 28 | I am satisfied with monetary benefits received from my organization. | 1 | 2 | 3 | 4 | 5 |
| 1 | Employees are highly committed. | 1 | 2 | 3 | 4 | 5 |
| 2 | Employees feel pride on being part of this company. | 1 | 2 | 3 | 4 | 5 |
| 3 | Employees take care for each other. | 1 | 2 | 3 | 4 | 5 |
| 4 | Employees are ready for sacrifices for betterment of the company. | 1 | 2 | 3 | 4 | 5 |
| 5 | Employees work like being a part of a family. | 1 | 2 | 3 | 4 | 5 |
| 6 | Employees have friendly relationship with each other. | 1 | 2 | 3 | 4 | 5 |
| 7 | Teamwork is preferred over individual tasks. | 1 | 2 | 3 | 4 | 5 |
| 8 | Employees view themselves as independent individuals who have to tolerate others around them. | 1 | 2 | 3 | 4 | 5 |
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