ANALYSING THE EFFECT OF WORKING ENVIRONMENT ON ORGANIZATIONAL PERFORMANCE OF SME’s IN BUEA

ABSTRACT

Organizations are commonly defined as instruments of propose. They are seen ascoordinated by intentions and goals. Organizational performances in this waytypically devote little attention to complications of using such formulation tocharacterize that the casual of performance phenomena. This study had concentratedon the effect of working environment on organizational performance of SME’s in Buea. The aims of the study are to examine the performances of the Organizations andthe most significant working factors that influence the performance of SME’s. The researcherhad analyzed three factors that influence organizational performance which is staffmotivation, training and skill, and management involvement.

A total of 40 questionnaires were distributed to 40 staffs at SME’s by hand and all 40 questionnaires were returned for analysis. The data had been analyzed by using Statistic Package for Social Sciences (SPSS). Research findings revealed there was significant relationship between staff motivation, training and skill, and management involvement with organizational performance of SME’s. The multiple regression results had shown that the independent variable which is staff motivation, training and skill, and management involvement are a significant predictor for organizational performance of SME’s. Based on the findings, it was recommended that organizations should develop more actor influence organizational performance such as HRM practices and also can include performance measurement such as organization innovation.

Keywords: Organizational performance, staff motivation, training and skills and management involvement.

CHAPTER ONE
INTRODUCTION

• Background of the Study

Business organizations all over the world are environmentally dependent because they do not exist in a vacuum, and they depend on their environment for plethora of issues ranging from input resources such as information, ideas, raw materials, finance and labour among others, to the consumption of finished goods or services by the environment. Besides, their activities are also influenced and shaped by such environmental forces as social, economic, technological, competitive, and regulatory forces (Abdulsalam and Mustapha, 2013). To succeed and achieve organizational objectives, organizations adopt strategies that align them properly with operating socio-cultural factor, the aim of which is to avoid any mismatch between the organization and its environment. So, for business firms in general and small and medium scale enterprises particular to succeed in their operating environment, they need to formulate and adopt appropriate policies and marketing programmes (Abdulsalam and Mustapha, 2013).

Business operates in a more dynamic environment. The change in the environment has been rapid and unpredictable. Consumers and clients show complex behaviours both in local and international markets. The most dramatic change has been that exhibited by competitive pressures. Competitors have been applying one strategy or the other to adapt to the dynamic and unpredictable nature of the business environment (Adeoye and Elegunde, 2012). Currently, business environment is perceived to have been rarely exceeded in complexity, turbulence and rapid in change.

To understand organizational performance, one must know the elements inside and outside organizations known as Environmental factors. This refers to different forces or surroundings that affect business operations. Such forces include customers, competitors, suppliers, distributors, industry trends, substitutes, regulations, government activities, the economic, demographic and social and cultural factors. Others are innovations and technological steadfast and unchanging, it is change itself. Change is inevitable and those organizations unstable, with long-term survivability in question. There are things, events, or situations that occur that affect the way a business operates, either in a positive or negative way. These things, situations or events that occur affect the organizational performance in either a positive or negative ways are called driving forces or environmental factors.

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

Every organization should have a strategy, organizational strategy can be defined as the process or set of processes by which organizational goals and objectives are to be achieved. Organizational strategies are influenced by the feedback of the organizational various function and factor regarding the ability to provide the resources and inputs as well as produce the outcome necessary for the function that contribute to the attainment of the goals and objectives of the organization as a whole. That will be reflect the view of firm’s leader and also emerge from organizational culture (Bailey & Johnson, 1995: Lumpkin & Dess, 1995).

According to Paul & Anantharaman (2003) the most important of the organizational performance are to achieve higher performance or maximization of wealth for the shareholders. Performance also as the ability of an object to produce results in a determined a priority, in relations to a targets or goals (Laitinen, 2002).

Organizational performance includes strategic planning, operations, financial, legal, and organizational development. Organization may achieve its goals when each of the employee understand their roles and responsibilities for the organization, and there should be continues communication between management, leader and employee to set performance expectations, monitor program and achieve a good results (Katou, 2008).

Performance of the organizational can be measured and it can be defined as all aspects of performance that are relevant for the existence of organizational as a whole’ and success as the way the organizational carries its objectives into effect (Flapper, Fortuin, & Stoop, 1996).
Effective performance measurement must be covered for all aspects of performance that are relevant for the existence of an organizational, which means the organizational achieve successful and growth (Kaplan & Norton, 1996: Hillman & Keim, 2001). Performance measurement system always include more than financial measurement, this have been established as many competitor orientation encompasses the extent to which firms are oriented toward and understand the strengths, weakness, tactical, strategy and potential of the organization (Day & Wensley, 1988: Narver & Slater, 1990: Noble, Sinha, & Kumar, 2002).
The organization consists of a set of resource employed in a productive way to generate wealth and resource of the company such as building, equipment, skills and competencies of employees, procedures of norms, culture and value (Bruno, John, Maria, 2005). Base on that the researcher has listed out the factor are relevant to develop organizational performance. Factor that influence organizational performance which is staff motivation, working environment, training and development and management involvement (Arnold,1985: Srivastava,2003: Khan,2010: Bill & Steven,1990)

• Statement of the Problem