2.1.3 (Normann 1986). The interactions depends on the

Topic: BusinessComparative Analysis
Sample donated:
Last updated: March 20, 2019

2.

1.3Environmental FactorA numbers of studies have conduct to explain the workenvironment with different aspects such as job satisfaction (laffaldano &Muchinsky, 1985) and employee retention (Martin 1979),employee turnover, organizational commitment and job involvement (Sjoberg &Sverke 2000). Work environment is considered one of the most important factorsin employee’s retention (Zeytinoglu & Denton, 2005). The interesting partof work environment is work environment characteristics in services sector isdiffer from production sector, because services sector directly deal withconsumers or clients (Normann 1986). The interactions depends on the kind ofjob or kind of business, it may be more or may be less. The interaction betweenemployees and client or consumer move from physical to Psychological dimension.

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Psychological work environment consist of work load, decision, support,stressors, latitude and decision etc. It is much important to know andrecognize the emerging needs of employees and provide good work environment asrequired to keep the employees committed with organization. The company must provide the tools for employees to perform their duties.This includes the proper equipment, machinery and computer technology as wellas adequate lighting and safety work place. The poor tools may lead to lowproductivity and overall job dissatisfaction.

When the good employees leftunaddressed, they would have the feeling of unappreciated and they will leaveforever (Bratton, 2003)Creating a positive and upbeat work atmosphere that nurtures trust andimbues workers with a sense of common purpose is not easy (Carney, 1998). Theworking environment or work atmosphere is the most important variable among theorganizational factors. To create a friendly atmosphere in the company no needslot money but it takes time. The employee satisfaction and the chances ofcontinuity to work would decrease if the company lack of openness in sharinginformation. According to Moureen (2004) work environment is one of the main factorsthat would affect the employee retention. Employees will choose to work in anenvironment that suitable for them because if the working environment notsuitable for them, they will jump from a company to another company in fewmonths. The employees may work in the same company for many years if they findan appropriate working environment in a company.

Horton (2007) said that the work environment can be separate into twowhich is good working environment and bad working environment. The employeeswould feel relax and appreciated in good environment. The employees would feelunderappreciated, threatened or irresolute in bad environment. Due to thenature of these environments, there is often a low employee retention or highemployee turnover rates. Spencer (2001) said the poor furniture and working equipment would lowerdown the level of employees’ job satisfaction and this may increase theemployee turnover rates. According to Nankervis et al (1996), external factors exist outside thecompany environment and it is out of the company control.

 The external political, social and commercialenvironment can have a significant impact on the policies, practices,strategies and plans of human resource management. By analyzing the outsidecommunity and society, the proactive HR planner can assess likely current andfuture changes and determine possible impact on its workforce andorganizational plans. Wood and Macaulay (1991) cite that the economy is anexternal environment cause of employee turnover because most of the employeesleave their current job because of the availability of higher paying job outthere. Low quality of overall employees: low unemployment rates lead toincreased turnover because more jobs are available (Bolch,M 2001). He furtherargues that, when the actual unemployment rate decrease to 5% or lower, itwould have the difficulty for employers to hire employees to fill jobvacancies. Compounding the situation is the short supply of workers with skillssuch as cleaning service industry and other service based industry.

 2.2.32.

4.3 Relationshipbetween environmental factor and employee’s retentionWork environment is among thefactor that influences employee retention in organization. Ramlall (2003)people struggle to work and stay with organization that has conducive workenvironment like working equipment’s, air conditioning, office space, comfortablechairs and so forth.

George and Jones, (1999), Comfortable working environmentwith enough facilities, low physical psychological stress, and achievement ofwork goals helps to increase employee satisfaction while poor and stressfulworking environment like shortage of work facilities, work overload, inadequatefund result to dissatisfaction. Thus organization should provide a favourableand conducive working environment to its employees so as to improveproductivity and efficiency of an organization since employee feels that theyare valued and making difference.Research conducted by ASID find that physical & workenvironment play pivotal role in employee?s decision whether to leave the jobor stay and consider as a major factor in employee retention. Light has beenidentified is a casual factor of job performance, sometime noise disturb theworking environments and create a hitch in office which is harmful to employeespsychological & physical welfare, encouragement and at times productivity.The most plentiful audio grievances are, short of speech isolation, such aseavesdrop people discussion and receiving the same feeling as well. It isbeneficial for office environment as well as for health to reduce apprehensionand stress.

 

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