THE RELATIONSHIP OF OFFICE ENVIRONMENT AND EMPLOYEES' PERFORMANCE

Nadia Fatihah Binti Mastan

Master of Science (Human Resource Development) 2011

P.KHIDMAT MAKLUMAT AKADI!MIK

111111111 fli'~rll "1111111000246410

THE RELATIONSHIP OF OFFICE ENVIRONMENT AND EMPLOYEES' PERFORMANCE

NADIA FATIHAH BINTI MASTAN

A dissertation submitted in partial fulfillment of the requirements for the degree of Master of Science (Human Resource Development)

Faculty of Cognitive Sciences and Human Development UNIVERSITI MALAYSIA SARAWAK

2011

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The work described in this study entitled "The Relationship of Office Environment and Employees' Performance"

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22.06.2011 #-' ~L ;7 ~ .

(Date submitted) Nadia Fatihah binti Mastan

09031575

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The study entitled 'The Relationship of Office Environment and Employees' Performance' was prepared by Nadia Fatihah binti Mastan and submitted to the Faculty of Cognitive Sciences and Human Resource Development in partial fulfillment of the requirements for a Master of Science in Human Resource Development.

Received for examination by:

(Encik Abang Ekhsan bin Abang Othman)

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ACKNOWLEDGEMENTS

This thesis would not have been possible without the guidance and assistance of severa~ individuals who in one way or another contributed and extended their valuable aid in the preparation and completion of this study.

First and foremost, I would like to thank the God All Mighty for giving me the physical and mental strength to complete this study. My utmost gratitude to my supervisor, Mr. Abang Ekhsan bin Abang Othman whose sincerity, tolerance and kindness will never be forgotten. His invaluable assistance from suggestions to guidance, his kind concern and consideration in the preparation and completion of this study is deeply appreciated.

My sincerest appreciation to the university's management for giving me the opportunity to conduct my study and also to all the respondents for their cooperation and support . .

My husband, Noorsaidi bin Mahat and son; Noor Eusoff for their love, steadfast encouragement and patience towards the completion of this study; I thank you from the bottom of my heart. Gratitude to my parents, Dayang Fatimah binti Awang Sulong and Mastan bin Yusop for their unfailing moral support, family and friends who never fail to give me inspirations and insights to overcome all the obstacles in the completion of this study.

Pu ut Kh" n t 1 klum' t Ak demik lJNlvr~nn I LAY. IA SARAWA

TABLE OF CONTENTS

Acknowledgement Table of Contents ii List of Figures v List of Tables vi Abstract viii

CHAPTER 1: INTRODUCTION

1.1 Introduction 12 Background of Study I 1.3 Statement of Problems 4 1.4 Research Objectives 6 1.5 Research Hypotheses 6 1.6 Conceptual Framework 7 1.7 Significance of the Study 9 1.8 Definitions of Terms 10

1.8.1 Office Environment 10 1.8.2 ~orkspace 10 1.8.3 Comfort 11 1.8.4 Interaction 11 1.8.5 Distraction I 1 1.8.6 Employees' Performance 12 1.8.7 Gender 12 1.8.8 Public Institution 12

\.9 Research Limitation 13 1.10 Summary 13

CHAPTER 2: REVIEW OF RELATED LITERATURE

2.1 Introduction 14 2.2 Related Theory and Models 14

2.2.1 Herzberg's Motivation Theory 14 2.2.2 A Job Performance Model of Motivation 18 2.2 .3 Office Environment Model 20

2.3 Review of Related Literature 22 2.3.1 Office Environment 22 2.3.2 Comfort 24 2.3.3 Interaction 36 2.3.4 Distraction 39 2.3.5 Gender 42 2.3.6 Employees' Performance 44

2.4 Summary 49

ii

CHAPTER 3: METHODOLOGY

3.1 Introduction 51 3.2 Design of Study 51 3.3 Population and Sample 52 3.4 Instruments of the Study 54

3.4.1 Demography 55 3.4.2 Performance 55 3.4.3 Comfort 56 3.4.4 Interaction 56 3.4.5 Distraction 57

3.5 Reliability and Validity 58 3.6 Data Collection Method and Procedures 59 3.7 Data Analysis Procedures 61

3.7.1 Reliability Test 61 3.7.2 Data Screening 62 3.7.3 Descriptive Statistics 63 3.7.4 Inferential Statistics 64

3.8 Summary 67

CHAPTER 4: FINDINGS AND DISCUSSIONS

4.1 Introduction 68 4.2 Respondent's Demographic Factors 68

4.2.1 Age 68 4.2.2 Gender 69 4.2.3 Marital Status 70 4.2.4 Ethnicity 71 4.2.5 Years of Service with Organization 72

4.3 Hypotheses Testing 74 4.3.1 Pearson Product Moment Correlation Coefficient 74 4.3.2 Multiple Linear Regressions 83 4.3.3 Independent T -Test 86

4.4 Summary of Findings 88 4.5 Summary 88

CHAPTER 5: SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.1 Introduction 90 5.2 Summary 90 5.3 Implications of the Study 91

5.3.1 Implications of Research on Public Institutions 91

iii

5.3.2 Implications of Research on Theories 92 5.3.3 Implications of Research on Methodology 92

5.4 Recommendations 93 5.4. 1 Recommendation to the organization 93 5.4.2 Recommendation to Human Resource (HR) Practitioners 94 5.4.3 Recommendation to Future Research 96

5.5 Conclusion 97

REFERENCES 98

APPENDIX 1: Questionnaire Form APPENDIX 2: Consent Letter from UNlMAS APPENDIX 3: Permission Letter from UiTM Sarawak

iv

LIST OF FIGURES

Figure 1.1 Dependent and Independent Variables Framework 8

Figure 1.2 Office Environment and Its R~lationship with Employees' Performance Research Framework

8

Figure 2.1 Herzberg's two-factor theory 17

Figure 2.2 A Job Performance Model of Motivation 19

Figure 4. 1 Distribution of Respondents based on age 69

Figure 4.2 . Distribution of Respondents based on gender 70

Figure 4.3 Distribution of Respondents based on marital status 71

Figure 4.4 Distribution of Respondents based on ethnicity 72

Figure 4.5 Distribution of Respondents based on years of service with organization 73

v

LIST OF TABLES

Table 2. I Major Findings on the Effects of Noise in Office and Health Care Settings 28

Table 2.2 Major Findings on the Effects of Ambient Temperature in Office and Health Care Settings

32

Table 2.3 Major Findings on the Effects of Lighting in Office and Health Care Settings 36

Table 3.1 Five-point Likert Rating Scale for Perfonnance Variable 55

Table 3.2 Five-point Likert Rating Scale for Comfort Variable 56

Table 3.3 Five-point Likert Rating Scale for Interaction Variable 57

Table 3.4 Five-point Likert Rating Scale for Distraction Variable 57

Table 3.5 Cronbach's Alpha value for pilot test 59

Table 3.6 Advantages and Disadvantages of Personally Administered Questionnaires 60

Table 3.7 Cronbach's Alpha value for the actual study 62

Table 3.8 Results of the Reliability Test for Actual Study 63

Table 3.9 The Strength of Relationship of Pearson Correlation Coefficient 65

Table 4.1 Distribution of Respondents based on age 68

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Table 4.2 Distribution of Respondents based on gender

Table 4.3 Distribution of Respondents based on marital status

Table 4.4 Distribution of Respondents based on ethnicity

Table 4.5 Distribution of Respondents based on years of service with organization

Table 4.6 Coefficient of Comfort and Employees' Performance

Table 4 .7 Coefficient of Interaction and Employees' Performance

Table 4.8 Coefficient of Distraction and Employees' Work Performance

Table 4.9 Coefficient ofdominant factor that affects the employees' performance

Table 4. 10 Results of the Independent t - test

Table 4.11 Result of the hypotheses

69

70

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74

78

80

83

86

88

vii

ABSTRACT

THE RELA TIONSHIP OF OFFICE ENVIRONMENTAND EMPLOYEES' PERFORMANCE

This study aims to examine the relationship of office environment and employees' performance among the academicians and support staffs in public institution of higher education and to identify the dominant factor that affects the employees' performance the most. The factors under investigation are comfort, interaction and distraction. A demographic factor of gender is also being tested to find out whether it has any significant differences towards performance. The study was conducted in UiTM Kota Samarahan, Sarawak.. Quantitative method using questionnaires were distributed to the responden~ A total of 125 respondents participated in this study. The relationship between office environment factors and performance were analysed by using Pearson Correlation Coefficient. Meanwhile, the dominant factor was identified through Multiple Linear Regression test. The difference between genders was analyzed by using Independent T -test. The results found that all of the factors; comfort, interaction and distraction showed that there were significant relationship with employees' performance. The dominant factors that affect the most were comfort and interaction. However, this study failed to identify any significant difference between genders on the employees' performance. The findings of this study can be a guideline to the HR practitioners, facilities management and the institutions to adopt a more conducive office environment for the employees to perform better.

viii

ABSTRAK

HUBUNGAN DI ANTARA SUASANA PEJABAT DAN PRESTASI PARA PEKERJA

Kajian ini bertujuan untuk menilai hubungan di antara suasana pejabat dan prestasi para pekerja di kaJangan ahli-ahli akademik dan staf sokongan di institusi pengajian tinggi awam dan untuk mengenalpasti faktor dominan yang memberi kesan yang dalam ke atas pre stasi para pekerja. Faktor-faktor yang dikaji adalah keselesaan, interaksi dan gangguan. Faktor demografik iaitu jantina juga diuji untuk mengetahui kewujudan perbezaan terhadap prestasi. Kajian ini dijalankan di UiN Kota Samarahan, Sarawak. Kaedah kuantitatif menggunakan borang soal selidik telah diedarkan kepada para responden. Sejumlah 125 responden telah terlibat di dalam kajian ini. Hubungan .di antara faktor-faktor suasana pejabat dan pestasi telah dianalisis menggunakan Analisis Korelasi Pearson Product Moment. Manakala, faktor dominan telah dikenalpasti melalui ujian Regresi Linear Berganda. Perbezaan di antara jantina telah dianalisis menggunakan ujian T bebas. Keputusan kajian menunjukkan bahawa kesemua faktor iaitu keselesaan, interaksi dan gangguan mempunyai hubungan yang signifikan dengan prestasi para pekerja. Faktor-faktor dominan yang memberi kesan terhadap prestasi adalah keselesaan dan interaksi. Walaubagaimanapun, kajian ini gagal menunjukkan sebarang perbezaan yang signifikan di antara jantina terhadap prestasi para pekerja. Dapatan kajian ini boleh menjadi panduan kepada para pengamal sumber manusia, pengurusan fasiliti dan institusi-institusi untuk mengamalkan suasana pejabat yang lebih kondusif untuk para pekerja memberikan prestasi yang lebik baik.

ix

CHAPTER 1

INTRODUCTION

.1 Introduction

This chapter provides an overview on the background of office environment and its

relationships to employees' performance, the problem statements, objective of the study,

and hypotheses. The chapter additionally presents the conceptual framework, definition

of terms, the significance of the study along with the limitations. A summary is prepared

at the end of this chapter.

1.2 Background of the study

The purpose of this study is to investigate the relationship of office environment and

employees performance. Employees are the most valuable asset in the organization. In

making organization's operations sustainable and effective, therefore, people in the

organization must be in good condition; physically and psychologically. One of the

fundamental human requirements is working envir0nI?ent that allows people to perform

their work optimally under comfortable condition (Roelofsen, 2002). Since the last half

of this century, the work environment in the world including Malaysia has been changing

due to the rise of technology and globalization. In today's situation, organization will

ensure that the office environment supports the new styles of working and rapid changes,

so that it can maximise employees' performance, job satisfaction and productivity. The

top management especially, should oversee all the changes and improvements made to

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the working environment III order to ensure there IS no decrement in terms of

performance among the employees. This is in align with what Roelofsen (2002) said

conversely; management is directly responsible to the working environment. Amir and

Shahibzada (2009) mentioned that "if an organization provides its employees with better

working conditions 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 towards rich profits". So, it is

imperative that the management should take ample measures to address this issue.

In this study, several variables have been identified which consist of independent and

dependent variables that are essential in overseeing the completion of this research in the

context of public institution of higher education in Malaysia. For this study, the

dependent variable is performance. Job performance is said to be the most prominent

dependent variable in industrial and organizational psychology. The focal point of the

main applications of this branch of psychology is almost always on improving job

performance (Borman, 2004). If there seems a slight negligence on the employees'

performance, it will cost the organizations on the long run. Therefore, immediate action

should be taken before the matters become worse.

One way to Improve the employees' performance is through modifying the office

environment. According to Van der Voordt (2004) as cited in Haynes (2008a), "he

concluded that it is important to create an environment that allows occupiers to transfer

information, while also accepting that there is a requirement for concentrated work".

Therefore, the independent variables in this study are the office environment which

consists of the physical and behavioural components. This is in line with what Amir and

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Sahibzada (2009) said, "office environment can be divided into two elements which are

physical and behavioural". According to Haynes (2008a), "physical environment

consists of office layout and office comfort, and the behavioural environment represents

the two main components namely interaction and distraction". Peter and O'Connor

(1980) hypothesized that "situational factor (condition) are another significant element

that would strongly affect human performance" as cited in (Amir & Shahibzada, 2009).

roday's trend, designers will ensure that the designing of office in terms of physical

envirorunent will be based on the employees' needs, in order to maximise employees'

ability and performance. Better physical environment of office will boost the employees'

morale and ultimately improve their productivity (Hameed and Amjad, 2009).

This view of office environments from the occupier perspective opens up an appreciation

of the behavioural environment (Haynes, 2007). It is starting to emerge that any

theoretical framework for office productivity must consist of both the physical

envirorunent ~d the behavioural environment (Haynes, 2008a). In order to achieve the

utmost outcome from employees, it is imperative that the research done in light of this

topic should include both elements. This is to better understand the factors that lead to the

employees' performance.

Thus, it will guide the practitioners to create a work environment which can stimulate and

utilize the capabilities of the employees. A good and constructive work environment

permits the employees to channel their concentration, effort and commitment in

performing their work and not in coping up with unpleasant working environment.

(Vischer, 2006). An investigation in this area is important so that the creation of an

unsupportive office environment can be avoided.

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tement of Problems

Apparently, people spend more than eight hours per day in the office. Thus, the situation

or condition of office environment is the most important aspect to be taken care of in

uder to ensure the level of productivity and perfonnance of employees are constantly in

ultimate stage. A prolonged exposure to the ineffective work environment will

hamper the employees' progress which will affect their perfonnance. According to

YISCher (2006, p. 178), "potential elements that interfere with task perfonnance,

motivation and social relationships include spatial organisation, architectonic details,

ambient conditions and resources, and view or visual access from the workspace". With

d:te increase used of complex and sophisticated technology in perfonning tasks, work

cnviromnent is now an important issue to be explored, in order to eliminate workspace

stress and strain which can contribute to health problems and finally can affect job

performance. According to Lorsch and Ossama (1994) as cited in (Roelofsen, 2002) that

"investing in the quality of the working environment is the most effective way of

combating loss of performance". Apart from that, Vischer (2006, p. 180) mentioned that

'1unctionally uncomfortable workspace draws energy out of the worker that would

otherwise be directed to perfonning work. Depending on the tasks they are perfonning,

workers are more or less affected by environmental factors such as lighting, furniture

layout and ergonomics, noise level and temperature". According to Langston & Song

(2008) as cited in (Amir & Shahibzada, 2009) "government employees show a lower

level of satisfaction with their physical work environment, workspace design and

management". Various literature in regards to the study of multiple offices and office

buildings showed that the factors such as dissatisfaction, messy workplaces and the

physical environment are playing a major part in the loss of employees' ·productivity

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r lJsat Khidmat Maklumal A ademik {MVERSITJ MALAYS SARAWAK

(Carnevale 1992, Clements-Croome 1997) as cited in (Hameed & Amjad, 2009). Leaman

(1995) conducted a survey and the results shown that the work productivity is affected

because the people were miserable with temperature, air quality, lighting and noise levels

in the office. When employees feel unhappy, their motivation level tends to decrease.

This may contribute to a lower level of performance and the overall productivity of the

organization.

In Malaysia, office environment issues are not seriously being taken care of and almost

neglected. Furthermore, employees' needs are not considered as an important element in

designing the workplace, whereby it has become a trend now in many of Western

COWltries, in order to maximise employee productivity and performance. The existence of

low quality of working environment may contribute to low productivity, absenteeism,

stress and strain that will affect employees and organizational performance. This is

supported by an extensive scientific research conducted by Roelofsen (2002) that

suggested "improving working environment results in a reduction in a number of

complaints and absenteeism and an increase in productivity. The indoor environment has

the biggest effect on productivity in relation to job stress and job dissatisfaction" as cited

in (Arnir and Shahibzada, 2009). Therefore, an investigation on the relationship of office

environment and employees' performance specifically in public institution of higher

education in Sarawak should be carried out to find out the dominant factor of office

environment that affects the employees' performance.

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htiDlnl objective of this study is to examine the relationship of office environment and

.~~' performance in Malaysian Public Institution of Higher Education specifically in

Specifically, the objectives of this study are listed below:

To examine the relationship between comfort and employees' performance;

To detamine the relationship between interaction and employees' performance;

o investigate the relationship between distraction and employees' performance;

identify the dominant factor which affects the employees' performance;

To investigate the difference between genders on the employees' performance

1IIII1In:h Hypotheses

is conducted to find the relationship of the independent variables, which are

environment and behavioural environment with the dependent variable,

is performance level of employees. This research intends to test the following

There is a significant relationship between comfort and employees' performance

There is a significant relationship between interaction and employees' performance

There is a significant relationship between distraction and employees' performance

There is a dominant factor that affects the employees' performance

There is a significant difference between genders on the employees' performance

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.1!CII~11Ii.1 Framework

study is developed based on the Haynes (2007 & 2008) foundation of office

_PWDlD4:mt. Haynes (2007b) has revealed that the office environment to be more

••Iex, employees' performance is not only dependent by physical environment but

by behavioural environment. Physical environment falls into two main categories;

layout and office comfort (Haynes, 2007a). Behavioral environment consists of

iatleraction and distraction (Haynes, 2007b). Office layout has variables such as spatial

ammgement and type of office (Haynes, 2008a). Meanwhile, office comfort variables

'CiODIiSt of a few factors such as lighting, temperature, noise, furniture (Oseland &

1IartIett. 1999; Leaman & Bordass, 2000) as cited in (Haynes 2008b). Social interaction,

interaction, and creative physical environment are grouped under interaction

¥aiable and distraction variable included statements on interruptions, crowding, noise,

privacy and overall atmosphere (Mawson, 2002; Olson, 2002, cited in Haynes 2008b).

or the purpose of this study, specific attention will be given to office comfort variables

as noise, temperature and lighting; interaction and distraction variables meanwhile

ce layout and furniture are omitted because of low reliability. Hence, the conceptual

hmework of this study is as illustrated in Figure 1.1 and Figure 1.2 below:

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,---- ----­DEPENDENT VMABLE

, I

I

I

Figure 1.1: Dependent and Independent Variables Framework

RESEARCH FRAMEWORK

privacy

COMFORT

Noise, temperature, lighting

Visual, auditory and

gure 1.2: Office Environment and Its Relationship with Employees' Performance

Research Framework

Page I 8

""l:aDlce of the Study

significance of this study can contribute many advantages to many parties such as

_~rati'ons, regulators, policy makers, and the analytical and empirical researches. This

ieleu::h can open the eye of the managers pertaining to this subject.

Y will improve the management understanding on which factors that can affect

.lIGaal evidence on the importance of office environment to employees' productivity

. 1;erIOllm81IlCe and how the organizations' plan the future office design to motivate the

morale towards high performance. Historically managers tried to avoid

'th these kinds of issues, however, this study aimed to provide the management

alllllmrns:ive view on the relationship of office environment as a workplace issue that

serious attention. It will also give the employees a better view of how workplace

".Delltcan maximise their output and productivity .

• lIalD<llre, this study can provide the organization awareness about the outcome that

gained from comfortable and better office environment. Hence, taking into

__ration a preventive action on how to minimize the impact of office environment

lIrJ:tivelv to achieve the organization effectiveness as a whole such as increasing

iiftfIht!tIV11rv, lower the absenteeism and reduce the stress level among its employees. Not

••qc:t, the awareness of this issue can save the organization from any additional cost,

serious illness and health problems. Similarly it will benefit UiTM as an

.iIisl~ institution. It is also hoped that this study will give a big impact to UiTM

on the awareness and understanding of the relationship between office

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environment and employees' performance. This knowledge will hopefully be useful as a

somce of infonnation for future research regarding this issue. It can also add to the

·sting literature on office environment and its effect on employees' performance and

can be used as one of the references or guidance for future research as well as enriching

the literature in hwnan and social development.

Definition of Terms

1.8.1 Office Environment

Conceptual: An office environment model defines the size and volwne of the

office space (office furniture surface area), comfort, employees' distraction and

their interaction (Carter & Zhang, 2007).

Operational: Office environment in this study is defined as the comfort level

in the working area, interaction among the employees as well as the distraction

that exists in the office.

1.8.2 Workspace

Conceptual: "The space where an employee sits (mostly) when in the office"

(Haynes, 2008a)

Operational: Workspace in this study is defined as a space or a room where

employees perform most of hislher work.

.,

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