Factors Affecting Employee Performance

Contents

• Title Page
• Dedication
• Acknowledgement
• Executive summary

Chapter 1 Introduction

• 1.1       Employee Performance
• 1.2       Working Conditions
• 1.3       Leadership
• 1.4       Compensation
• 1.5       Conflicts
• 1.6       Problem Statement
• 1.7       Objectives of the Study
  • 1.7.1      Main Objectives
  • 1.7.2.      Secondary Objectives
• 1.8       Research Questions
• 1.9       Development of Hypothesis
• 1.10     Theoretical Framework of the Study
• 1.11     Significance of the Study
  • 1.11.1     Theoretical Perspective
  • 1.11.2     Management Perspective
  • 1.11.3     Academic Perspective
• 1.12     Structure of Thesis
• 1.13     Terms Definitions
  • 1.13.1     Office Design
  • 1.13.2     Working Conditions
  • 1.13.3     Leadership
  • 1.13.4     Compensation
  • 1.13.5     Employee Promotion
  • 1.13.6     Performance Evaluation
  • 1.13.7    Conflict
  • 1.13.8     Employee Performance

Chapter 2 Literature Review

• 2.1       Employee Performance
• 2.2       Definitions of Work Environment
  • 2.2.1   Work Environment and Employee Performance
  • 2.2.2    Office Furniture
  • 2.2.3    Noise
  • 2.2.4    Light Intensity
  • 2.2.5    Temperature
• 2.3       Leadership
  • 2.3.1 Leadership and Employee Performance
  • 2.3.2 Time Administration and Employee Performance
• 2.4       Compensation
  • 2.4.1   Compensation and Employee Performance
  • 2.4.2    Compensation Practices
  • 2.4.3    Promotion Practices
  • 2.4.4    Performance Evaluation Practices
• 2.5       Definition of Conflict
  • 2.5.1   Task Conflict
  • 2.5.2    Relationship Conflict
  • 2.5.3    Conflict and Employee Performance

Chapter 3 Research Methodology

• 3.1       Introduction
• 3.2       Research Philosophy
• 3.3       Research Approach
• 3.4       Data Collection Methods
• 3.6       Sampling Design
• 3.7       Data Validity
• 3.8       Data Reliability
• 3.9       Generalizabilty
• 3.10     Analysis

Chapter 4 Research Findings

• 4.1       Results and Discussions

Chapter 5 Conclusion and Discussions

• 5.1       Conclusions
• 5.2       Suggestions
• 5.3       Research Limitations
• 5.4       Suggestions for Future Research

References

List of Figures

• Fig 1.1 Theoretical Framework of the Study

List of Tables

• Table 4.1 Descriptive of Variables of the Study
• Table 4.2 Frequency and Percentage Distribution with regard Work-life conflicts
• Table 4.3 Frequency and Percentage Distribution with regard to Leadership
• Table 4.4 Frequency and Percentage Distribution with regard to Working Conditions
• Table 4.5 Frequency and Percentage Distribution with regard to Compensation
• Table 4.6 Frequency and Percentage Distribution with regard to Job Performance
• Table 4.7 Frequency and Percentage Distribution with regard to Gender
• Table 4.8 Frequency and Percentage Distribution with regard to Marital Status
• Table 4.9 Frequency and Percentage Distribution with regard to Qualification
• Table 4.10 Frequency and Percentage Distribution with regard to Designation
• Table 4.11 Frequency and Percentage Distribution with regard to Age
• Table 4.12 Frequency and Percentage Distribution with regard to Experience
• Table 4.13 Pearson Correlation between dependent and independent variables
• Table 4.14: Regression  Results

List of Figures

• Figure 4.1 Frequency Distribution of Work-life conflicts
  
• Figure 4.2 Frequency Distribution of Leadership
  
• Figure 4.3 Frequency Distribution of Working Conditions
  
• Figure 4.4 Frequency Distribution of Compensation
  
• Figure 4.5 Frequency Distribution of Job Performance
  
• Figure 4.6 Frequency Distribution of Gender
  
• Figure 4.7 Frequency Distribution of Marital Status
  
• Figure 4.8 Frequency Distribution of Qualification
  
• Figure 4.9 Frequency Distribution of Designation
  
• Figure 4.10 Frequency Distribution of Age
  
• Figure 4.11 Frequency Distribution of Experience
  

Executive Summary

At 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.

CHAPTER 1

Introduction

Employee Performance

Employee 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:

• Job self-sufficiency
• Managerial support
• Preparation
• Distributive fairness
• Routine impartiality

Working Conditions

Organizations 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.

Leadership

A 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.

Compensation

According 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.

Conflict

Conflict 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 Statement

Today, 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

• Major Objective:

The major objective of the research work is to originate and ascertain the aspects that have influence on Employee performance.

• Secondary Objectives:

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:

• To investigate the relationship between office environment and Employee Performance.
• Examine the consequence of working conditions on Employee Performance.
• To investigate the work performance of Employees.
• To explore the workplace factors that affect the Employee’s Performance.
• To recommend some actions that help in improving the Employee Performance
• Examine the consequence of management style on employee performance.
• To investigate the relationship between leadership and Employee Performance.
• Examine the effect of HR practices (Compensation, Promotion and Performance Evaluation) on Employee Performance.
• To explore the correlation among HR practices (Compensation, Promotion and Performance Evaluation) and Employee Performance in corporate sector.
• To inspect the result of Conflict on Employee Performance.
• Identify the relationship between Conflict and Employee Performance.
• To suggest some measures that help in controlling the conflict in organizations.

Research Questions

1. To what extent the factors in internal workplace effect the Employee Performance?
2. What is the relationship between working conditions and Employee Performance?
3. What is the relationship between Leadership and Employee Performance?
4. What is the relationship between HR practices and Employee Performance?
5. What is the correlation between Conflict and Employee Performance?
6. What is the composite effect of independent variables (working condition, leadership, compensation and conflict) on Employee Performance?
7. How can the employee productivity be enhanced?
8. How to control the conflict to enhance the performance?

Development of Hypothesis

The 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:

Significance of Study

This research has been held in Pakistan. Before this no research was conducted with respect to the variables those have been selected in this study. The intention of this research work is to categorize the impact of working conditions, leadership, HR practices and conflict on Employee Performance. In previous studies it was examined inconsequential research work done and as result a wide gap exists which needs to be filled in near future. There is wide trend to invest in human capital so employees shows more performance but it is strongly professed that these practices are totally disregarded, so research is the only key to locate the reality, reason and way out. These variables are carefully chosen from literature and used in local setting. The five variables have been altogether used in this research. And before this the study was conducted using one variable only. Moreover sample size is also large to get better results. The data has been collected from respondents of the related fields. The following quantitative techniques have been used: regression analysis, descriptive statistics, frequency polygons, bar charts, and correlation analysis.

These days organizations are under pressure to locate innovative techniques and place strategy to develop their individual capital (including managers and employees) in order to face the new confront that workers look in competitive market. Therefore it is elevated requirement for organization to modernize their policy and to acquire a complete perception of what types of talents, aptitudes and right approach should a manager show in supervision and gratifying the employees.

This study will allow theorists as well as practitioners, who are concerned with human resource development to plan a new  structure for leadership styles, HR practices ( compensation, promotion and performance evaluation) conflict , working conditions and employee performance.

It is expected that this research work will be beneficial in terms of theoretical, management and academic sides.

• Theoretical Perspective:

In terms of theoretical point of view, this research work would help other individuals to prove the theory and also support the future research, produce better ideas and give better understanding.

• Management Perspective:

This study would help the management to increase the employee performance in future as well as employee’s job satisfaction.

• Academic Perspective:

This study would help the other students to recognize the affiliation among working conditions, leadership, compensation, conflict and employee performance and could be  instruction or reference  for the future researchers those will be  concerned  to investigate the correlation among working conditions, leadership, compensation, conflict and employee performance in other organizations.

In this research work the influence of workplace arrangement on employee performance is examined. In Pakistan very few research works is done on this topic.  In Pakistan workplace environment is significantly ignored. It is apparent that there is no importance to workplace arrangement, benefits and as well it is not accessible to workers. These issues affecting the employee performance in form of delay in work achievement and disturbance. This research work will examine the impact of workplace arrangement on employee performance.

Successful organization depends on leader’s capability to fully utilize the individual possessions. A competent supervisor understands the value of employee in attaining the organization’s objectives and encouraging these workers are dominant significance in attaining the aims. To boast the successful organization the employees need to be encouraged to invest themselves in organization’s objectives.

In this research work the effect of HR practices (compensation, performance evaluation and promotion) on employee performance is examined. The findings of this research work will help the corporate sector to enhance or modify their policies for HR practices ((compensation, performance evaluation and promotion). Corporate sector would rapidly revise the HR practices in order to enhance the employee performance in corporate sector. Financial compensation must be accustomed in according to high inflation in Pakistan.

In this study the effect of conflict on employee performance is examined. Every employer desires that his employee shows more productivity towards organizational development and as a result conflict arises between management and employees of the organization. In this study it will show how flexible scheduling help in eliminating the stress and work-family conflict to enhance the employees performance.

Structure of Thesis

This research has five chapters. In the first chapter topic of study is discussed along with background of study, problem statement with particular reference of previous studies, research questions, objectives of research,  Hypothesis and significance of study  are included.

In the second chapter review of literature is discussed along with introduction, relationship of dependent variable with independent in light of various theories.

In third chapter methodology of research is discussed. In this chapter sample selection, data collection method and techniques and statistical tests used to interpret the data, is discussed.

In chapter four results of study are discussed. Data is analyzed in form of tables and diagrams. In order to establish the relationship among independent variables and dependent variable descriptive statistics, histogram, correlation and regression analysis is applied.

In chapter five problems faced in renovation of variables of working condition, leadership, compensation, conflict and employee performance is discussed. In this chapter finding of study is discussed in detail with the help of previous work. In this chapter limitations and recommendations to perform and future research are also discussed.

Terms Definition

• Office Design:

Organization sketch is the display of workplace therefore job can be completed in the well organized manner.

• Working Conditions:

Working conditions means an employee’s job place, job apparatus, the job itself, business rules or regulations. Working condition means in which circumstances employee perform in the organization.

Workplace environment includes those items in work area that influence the employee’s ability to perform their task. Some examples are light, noise, furniture.

• Leadership:

Leadership is organizing the group of people to attain the common objective. Leadership is the process of social influence in which one person help the other in attainment of common goal.

• Compensation:

Compensation is the total amount of financial and non financial benefits provided by employer to employee in return of services they provided towards organization. Compensation is usually presented in the form of wages and remuneration at predetermined payment level with ordinary increases due to cost of living, merit and promotion.

• Employee Promotion:

Employee promotion means that employee progress towards position or work responsibilities. A work sustain may be result of an employee’s positive detection of superior position by employer for good performance.

• Performance Evaluation:

Performance evaluation is the measurement and examine of employee’s job performance.

• Conflict:

Conflict arises when people observes that, as a result of discrepancy. There is a risk to their desires, welfare or concerns. Conflict arises when thoughts and ideas about the work or task is different.

• Employee Performance:

An employee performance is the evaluation of employee’s work or tasks and determines how well those tasks were performed. Employee performance is a ranking system to determine the skills and productivity of an employee.

CHAPTER 2

Literature Review

 

2.1. Employee Performance

The performance is defined as the attained outcome of actions with the skills of employees who perform in some situation. According to Suhartini, 1995 employee performance is a mutual result of effort, ability and perception of tasks. Good performance is step towards the achievement of organizational aims. Hence more struggle is required to improve the employee performance. Dharma (1991) said that performance is something that is done or products formed and offered by group of people. Swasto (1996) said that employee performance is the actions or the completion of errands that were done by individuals within specific period of time. Colquitt, Lepine, & Wesson (2011) argued that “the set of worker attitudes that add to attaining organization’s objectives”. Employee proficiency is generally supervised by using formal procedures that is manager rating, organization’s objectives and peers assessment to make sure that employees are working for the development of company. According to Goleman, 1998 achieving excellent performance expressive aptitude that is a “academic potential based on expressive acumen”.  Its prove that employees must have interpersonal and intrapersonal capabilities to form a efficient performer.

2.2. Definition of Work Environment

The definition of workplace environment is the display of work space thus job can be carried out in the most competent manner. The workplace atmosphere includes both physical and psychological factors due to which performance enhance. The environment plays an important role to enhance performance. It also increases the job satisfaction. In the first step the work is identified that how it is fulfill then the environment of the organization is made.

According to Rolloos, 1997 productivity is “that in which employees shows the maximum effort. According to Sutermeister, 1976 productivity refers to how much quality output is provided by employees in each hour. Dorgan (1994) said that productivity refers   “the improved well-designed and administrative output, including features”. Productivity is the best indicator how well an organization converts the raw material into finishes goods. The rate of truancy decreases when employees show more performance. In case of factory environment the performance enhance by number of units produced in each hour.

Different organization used different practices to construct the structure which enhance the productivity of the employees. Many authors specified the importance of workplace which enhance the productivity and performance of the employees.

• 2.2.1. Relationship between Work Environment and Employee performance

The generally accepted statement is that superior place of work environment generates good results. Mostly the organizations structured are planned according to the needs of employees who are working in the organization. Employee performance is actually measured by the production that the employees produced. The output is dependent on various elements such as workers, knowledge and aims of the company. The output is also dependent on material atmosphere that influence the worker productivity.

It is necessary to allocate the safe and sound infrastructure for employees and it have had a elongated record in human resource management. According to (Akinyele, 2007) favorable infrastructure make sure the welfare of employees. And their consistently efforts shows more output. Work environment is define as “all the factors that contribute towards output” whereas work is define as the job that is rewarded to our efforts or the action that is done frequently to get funds. Kohun (1992) said that infrastructure is defined as all the services, events and other significant factors that are formerly challenging with worker’s actions and their productivity. Infrastructure is the relationship between workers and the atmosphere in which workers show their performance and their output. According to Brenner, 2004  to ensure more output the infrastructure is well planned with workers contentment and easy flow of ideas is the better tool for encouraging employees to get more output. In order to get the output or aim  its necessary for employers to recognize all those factors whether physical or psychological that contribute towards more output. Opperman (2002) argued that infrastructure is the combination of three important atmospheres that is managerial atmosphere, scientific atmosphere and individual atmosphere. Scientific atmosphere consists of apparatus, utensils and all other scientific factors. So workers perform their tasks effectively.  The individual atmosphere consists of subordinates, executives all other staff of the organizations. The individual atmosphere is build in such a way in which communication level is enhanced between employees to ensure more output. It’s the major base to ensure more output. Managerial atmosphere consists of methods, values, standards and events. Employers have power over managerial atmosphere.  The managerial problems influenced the output. There are two kinds of infrastructure which are favorable and venomous. In favorable atmosphere workers share their pleasant experience that allow them to show their truly attitudes. In this atmosphere the negligent workers change into accountable workers. In venomous atmosphere workers share their unpleasant experience and in this the rational or accountable worker change into unaccountable and irrational worker.

According to Elywood, 1999 work atmosphere consists of some elements which are optimistically or pessimistically relates to output. To get information about the infrastructure is necessary for measuring the work method. These elements are temperature, noise, lighting, humidity and risks in the work atmosphere. In order to ensure more output employers must show all those tools that works in production. Efficient atmosphere includes making environment gorgeous, imaginative, contented, reasonable so employees show their best performance.

Output is improve through use of following apparatus. work environment is pleasant  by controlling the noise and risk control. Yesufu (1984) claims that  in order to get more output the substantial situation is significant. When the atmosphere of the organizations and plants are excessively warm and ill ventilated they devastating to perform. In organization there should be adequate supply of fine defensive outfits, intake water, and accommodation and first aid amenities. And employees and employers should have awareness about security.

New methods of building the workplace gave been developing in the organizations in order to boost the productivity level. According to Uzee, 1999;Leaman & Bordass, 1993; Williams, Armstrong and Malcom, 1985 physical working conditions of the infrastructure has an important part in boosting the productivity level and managerial actions. According to Moos, 1994 measurement of job atmosphere by using three magnitudes of service background location that is structure setting, aim direction and link extent. Structure setting deals to how systematically and planned the atmosphere, clearly state the opportunity and how its control or set. Aim direction assesses the extent to which an atmosphere grow or flourish by participation in resolution and self sufficiency, keeping a assignment direction allowing a job test and opportunity for achievement and execution.  And link extent deals to level of employer and employee communication in a atmosphere such as social contact transfer and unity among employees.

The most recognize theory is that when the working environment is suitable the more employees shows better result in the organization. For such case the structure of the organization play an important role in such case because when organization is settle in suitable environment then employees shows more performance. When employees show more input then their output boost accordingly and productivity also enhance. The employee’s productivity depends on furniture, lighting, noise and spatial arrangement.

• 2.2.2. Office Furniture:

Office furniture consists of seats, folder system, cabinets, tables etc. These elements have a significant part on employee productivity. The most important thing to consider that office furniture is comfortable or not. Comfortable furniture is necessary because employees work all with them and if it is painful, their efficiency finds vulnerable. Uncomfortable furniture also escort to fitness troubles for workers and in result adverse effect on performance.

• 2.2.3. Noise:

Noise from structure task prevails at the same time noise from stations or noise from airports. Noise also arises from occupational settings or even noise arises from concurrent conversation. It is clear that companies must enhance their consideration towards audio environment of open air, if industry victory is to attain. Noise is a reason of stress that origin to health problems. And in result adverse effect on employee performance.

• 2.2.4. Light intensity:

Logical study demonstrates that the value of internal lights in the workplace has a major impact on employees’ performance. Excess light can make a environment uncomfortable and off-putting. In result adverse effect on employee performance.

• 2.2.5. Temperature:

Employee exhaustion and drowsiness due to high temperature that leads to adverse impact on performance. And at the same time low temperature decreases the effectiveness of employees. They felt cold and started shivering in low temperature of workplace.

2.3. Definition of Leadership

Leadership has been a long history and that has been as long as there have been people to direct.  Bass (1997) said that the  past  be plentiful with grand supervisors from Moses and David in the old Testament to Napoleon in the 1700s and Nelson Mandela and Martin Luther King in the 1990s. According to Mullins, 1999 there are many forms of describing the leadership and many explanation of its significance. According to Bennis & Nanus, 1985  leaders are the people who are able to change the viewpoints and visualization into veracity through the control and influence they work over other people. According to Hellriegel, Jackson, Amos, Klopper, Louw and Oothuizen, 2004  the  capability to control others towards achievement of objective. Whereas (Mullins, 1999) described the leadership as it’s a relationship of two persons one person control the attitude of others. According to Gerber, Nel & Van Dyk, 1996 interpersonal relationship through which leader guide the activities of individual or groups towards persistant goal via communication. Wall, Solum and Sobol (1992) claims that efficient leader motivate the employees in attaining the objectives of the organization. In trying to understand the meaning it important to know the different theories of leadership. According to Bass, 1990 there are various speculation of leadership that explains what features implicated in management, nature of leadership and results of management

• 2.3.1. Relationship between Leadership and Employee Performance

It’s the responsibility of the worker who either complete or incomplete the assignment. According to Cummings and Schwab, 1973 Employers must consider the organizations’ objectives instead of his personal objectives. Employers struggle for combined objectives of the organization. Bass (1997) said that individual and organizational performance is greatly effected by efficient participation of leadership. Organization’s success depends on actively utilizing of human resources. Employees are the asset of the organization. An efficient leader knows the significance of employees in getting the objectives of the group and inspiring these workers is of principal significance in accomplishing these objectives. According to Wall, Solum & Sobal, 1992; Maritz, 1995 efficient leaders knows that employees of the organization provide themselves in the organization’s operation. According to Wall, Solum & Sobal, 1992; Maritz, 1995 valuable organization requires efficient leaders. Successful organization requires the motivating relationship between the workers participate in the organization. According to House, 1988 successful organization need efficient leadership and performance suffer in case of ignorance of leadership importance. In addition its normally considered that that the efficiency of employees depend on value of  their leadership.

According to Fiedler and House, 1988; Maritz, 1995; Ristow, Amos and Staude, 1999. Successful leadership help in accomplishment of employee’s needs which consequences in active performance.  According to Bass, 1997 that the effective leader make a distinction from their subordinate’s presentation and also make a distinction that either organizations achieved something or not.  In addition Kotter, 1988 claims for the growing significance of leadership in organization because of major change in the business atmosphere such as alter in competitive force and the desire for more involvement of total workforce. Cummings & Schwab (1973) claims leadership is the most significant factor for judging the employee performance.  Attractive leaders knows how to motivate the employees how employee’s powers and flaws manipulate their choices, events and interactions.

According to Maritz, 1995; Bass, 1997 leadership is the most significant factor for examining the employee performance: outstanding organization has outstanding leadership and that flourishing organization replicates their performance. Jones & George (2000) argued that leaders are efficient when they influence their subordinates and getting the organization objectives. According to Bass, 1997 leadership is the most important aspect for determining the organization performance.

(Bass & Avolio, 1994; Ristow, 1998) claims that organization attitude in different atmosphere originate that the transformational leadership has the positive impact on organization’s success and on the employee performance. Bass & Avolio (1994) said that these two molds have wide difference that is transformational leadership shows performance further than potentials while the transactional leadership guide to predicted performance. Ristow (1998) claims that  transactional leaders were more efficient in marketplace and that are continually emergent and where there was slight or no opposition but this not implement today where the  competition is tough and funds are limited.

Employee performance is the important block  for every organization and the elements on which their performance depend must be analyzed by the organization and their success is not depend on single’s effort it’s the combined efforts of all employee of the organization. Administrators of all level of the organization put their effort and utmost use of their capabilities which now and then under the administration or without administration. There are many expectations attach to the administration. These expectations are time to time rewarded further in some cases these administrators might be operating towards manager for help. Successful leadership can be of massive support to assist recognize and develop leadership behavior between employees within the business. Gadot (2007) said that the relationship between employee performance and leadership is inverse as well as direct which verify the significance of budding leaders in the course of development curriculums. Research verifies that many organizations spend huge amount on individual capital in order to achieve the better output, employee satisfaction and employee involvement. According to Rowold, 2008 these abilities can be reported by allocating compulsory scientific and non scientific training and schooling. Leadership is generally known and demonstrated via research. Popper (2005) claims that leadership progress can be reported through pragmatic knowledge, explicit knowledge and transformational knowledge and it’s reported that leaders can manipulate the employees and motivate them. According to Sheri-Lynne, Parbudyal 2007 leadership progress is a significant part which is recognized and executed in organization. It improves employee ability and other advantages to achieve competitive edge. Yulk (2002) said that some developmental projects can be carried out at the same time as with normal work errands while others need captivating a short term leave from normal work. Klagge (1997) described that training conferences play a critical part to enhance the managers performance concerning contact abilities, snoop abilities, encourage others, help others and transfer ideas.  The basic aim of leadership training is to improve the abilities of administrators at all stages. According to Tirmizi, 2002 leadership progress found on 6 –L structure. The six 6-L structure magnitudes promoted by Tirmizi are

• Guides and persuade change
• Lives by illustration
• Lauds accomplishment
• Lends a idea
• Leverages knowledge and growth
• Looks out for others

Therefore it’s important to know the leadership progress and its impact on employee performance. Leadership progress is also cooperative in executing alteration struggles. On the whole the intention is to check the leadership growth and its influence on employee performance. The research is carried out on prescribed techniques of budding their workers.

• 2.3.2. Time Administration and Employee performance

According to wood, 2005 the success of the organization depends on successfully organizing the time.  Time is the best asset for successful organization. He emphasized that management of the organization does not value the time which directly effect on employees’ productivity. Time has to be viewed and used in many organizations. Individual workers and sectors are responsible for the utilize of their moment in time. Objectives must be cleared and properly separated into short term and long term plans. (Heller & Hindle, 1998) said that overload of work have to be eliminated and time spent on management of the organization. Time management is the most important task for the successful organization it affect not only on output of the organization but also effect the profit of the organization. Attaining fair time management and decreasing stress are keys to successful organization. According to wood, 2005 time management has a important influence on employee performance. Time management can get better work output, individual existence and intellectual fitness. He said that those workers who show more output in work they have more time for individual life. It has been exposed that dynamic and victorious workers are those who can successfully supervise their point in time. Managing time is essential task for successful organization. Wood (2005) said increasing the output require the deliberation of time management. The atmosphere has to be place and interruption should be evaded.  Heller & Hindle (1998) said that people attitude regards moment is multifaceted and changeable they have different concepts about time management. According to Schriber & Gutek, 1987 there is a positive association among time supervision and employee performance. They emphasized that time management is key to success for successful organization.

2.4. Definition of Compensation:

Compensation is the material requirement that effect motivation which in turn the employee performance. It’s very difficult to provide appropriate compensation that fulfills the needs of personnel department functions and it’s difficult to implement. Compensation comprises financial rewards that in return to the services provided by employees. According to Dessler, 1995 compensation is a shape of rewards that Corse to employees happening from their employment. (Bernardin & Russell, 1993) said that compensation has effect on motivation, productivity and employee turnover.  The rank and extent of compensation should be considered because it determines the way of life, high regard and worth of organization. (Cascio, 1991) Explain the rules of comprising effective compensation that are

• The rule of justice must be considered that is the ratio between lowest and highest salaries.
• The rule of fairness that means equal compensation should be given who perform similar tasks.
• The rule of clearness in provisions of easily understood by employees.
• The rule of price control that means overspending should be controlled.
• The rule of balance must be considered that means compensation relates to employment and occupation not relate to job or position.

Sherman (1996) said that main objectives of compensation are

• Regarding employee performance
• Establishing viable market circumstances
• Establishing fair employees salaries
• Motivating employee performance
• Diminish employee proceeds

When workers are motivated it is feasible to attain the objectives of the organization. When compensation is depend on skills or positions it is easy for organization to encourage and to stay the workers. Nonfinancial compensation is also important when financial compensation is diminished. (Mondey & Noe, 1993) described that compensation are of two types that are financial compensation and nonfinancial compensation. Financial compensation comprises both direct monetary compensation and indirect monetary compensation. Direct monetary compensation includes salary, earnings, additional benefits and commission. Indirect monetary compensation is also called remuneration which are all monetary compensation are not enclosed by the direct compensation. Nonfinancial compensation includes of employee satisfaction such as responsibility, chance for promotion or psychological and physical surroundings in which employee perform such as good working conditions, condensed work week and free time.

(Michael & Harold, 1993 ) split the compensation into three parts that is objects, public and actions. Objects compensation is not only includes money such as salaries, bonuses and commissions but also includes physical corroboration such as parking facilities, telephone and office space  as well as various benefits such as pensions and health insurance. Public compensation is associated with communication requirements to others such as acknowledgement and rank as an expert in his field and groups created for the solutions of company’s problems. Action compensation is linked to gives a chance for employees to perform in space that is not related to his routine work.  These three types of compensation can influence the employees in supervision, job productivity and dedication to the employees. The motivators of these three types of compensation are control, accomplishment participation, relationship, protection, and individual growth.

(Dessler, 1995) said compensation are of three types that is direct monetary payment in shape of wages, salaries, bonuses and commission. The indirect payment includes benefits such as vacations and insurance. The rewards include non-monetary rewards such as flexible working times and esteemed organizations.

• 2.4.1. Relationship between Compensation and Employee Performance

Compensation is the major element that affects the employee performance. If employees think company is offering a good compensation then their motivation level increase and in result their performance to work is also increase. Robbins (2001) said when employee are feel happy about the fair compensation they are more motivated towards their work and the performance of the company is also boost. It’s a contract between scientist and administrators that when employees are fully motivated their performance towards their work is also increased.

In theory of expectations by victor vroom every action has a certain results whether in form of compensation or punishment. It is explanation of expectation- achievement-acquisition and each achievement has a value to the person concerned.  And these achievements in form of financial and nonfinancial. If compensation value is used to motivate people the employees will perform better.

According to Gomez-Meijia and Balkin, 1992 “planned exploitation of the salary scheme as an necessary incorporating apparatus during which the efforts of different persons are lead towards the attainment of  an organization’s planned goals”. (Lawler and Cohen, 1992) argued that they are administrative apparatus that with expectation give to organization’s effectiveness by controlling individual or group behavior. (Cameron and Pierce, 1996) said that all organizations used pay, promotion and benefits to give confidence to high performance. The employees of the organization expect to allocate safe working conditions, fair treatment. Administration of the organization often anticipates depending on the power, responsibility and these expectations are different from organization to organization. Abundance research is obtainable to show the relation of HR practices on employee performance. Huselid (1995) in well-known article said that “the influence of HR exercises on earnings, output and business monetary performance” got eleven HR practices.  He found a significant relationship between HR practices such as compensation and employee performance. Teseema & Soeters (2006) in their article said that “confronts and scenarios of HRM in under develop countries: trying the HRM performance connection in Eritrean civil service” got eight HR practices. They originated an important association among HR practices and employee performance.

In current research three HR practices are taken which are compensation practices, promotion practices and performance evaluation practices and relationship is identified with employee performance in private area. When more financial rewards are given to workers their satisfaction towards work is enhanced. .Leonard (1990) argued that those companies follow long term benefit strategies achieve higher return on equity as compared to those that ignore those plans. Teseema & Soeters (2006) have described the significant relationship among employee performance and compensation practices. According to Shahzad et al. (2008) there is a direct link between employee performance and compensation practices.

• 2.4.2. Compensation Practices:

Incentive pay strategy affects the employee performance. According to Huselid, 1995 elevated performance job exercises have a important impact on employee performance as well as organization’s productivity.  Teseema & Soeters (2006) reported the significant relation between compensation practices and employee performance.

• 2.4.3. Promotion Practices:

Teseema & Soeters (2006) reported significant relationship between promotion practices and employee performance.

• 2.4.4. Performance Evaluation Practices:

Employee obligation and performance can be enhanced with performance review scheme. Management of performance directs to elevated work contentment and qualified obligation among employees. Efficiency evaluation is increased through balancing human resource practice similar to exercising and incentives and efficiency evaluation directs to larger impact on performance (Brown and Heywood, 2005).

2.5. Definition of Conflict

According to Dyson, Godwin, &Hazlewood, 1976 it is in severe risk that  exit in between members and on performance. Process has been derived to overcome on these risks. The process has been consequences to oppose this alleged risk. Such techniques comprise successfully conniving groups at the start of a plan in an effort to lessen the chance of conflict exploding (Pelled & Adler, 1994). This vision has been confronted as some researchers have disagreed influentially that when optimistic conflict is renowned, recognized, and administered in a appropriate way, individual and managerial reimbursement be able to accumulate.

Different Types of Conflict

• 2.5.1. Task Conflict

Task conflict relates to different view point about the specific tasks. It involves different view points, opinions and ideas. It is about distribution of resources about events or rules and about understanding of facts.

According to Giebels, Janssen, Van de Vliert, & De Drue, 1994; Jehn, 1997; Jehn & Chatman, 2000 in this type of conflict it is negated interpersonal emotions more concerned to relationship conflict. Schweiger & Sandberg (1989) said that job conflict can hinder with agreement and obstruct the implementation of views. (De Dreu & Weingart, 2003) said that task conflict can be serious as relationship conflict. According to Giebels & Janssen, 2005 task conflict directs to expressive collapse. It seems that high or small task conflict lead to decreases the employee performance. There is a inverse link among task conflict and employee performance.

• 2.5.2. Relationship Conflict

Relationship conflict leads to destructive the interpersonal expressive environment. This type of conflict communicates to individual matters like norms, personality and beliefs. According to (Jehn, 1997) relationship conflict decreases the team effectiveness. It refers to worry, hostility. (Desivilya, 1998; Deutsch, 1980; Roganes, 1998; Tjosvold, Hui, & Law, 2001) said that constructive conflict leads to solutions and discussing view points. It refers to assistance and elasticity. According to De Dreu, Van Dierendonck, & De Best-Waldhober, 2003; Wilmot & Hocker, 2001 on the other hand  the destructive conflict relates to power resists and individual antagonisms. Destructive conflict is exemplified by power, appreciation, revenge, competitions, and obstinacy.

• 2.5.3. Relationship between Conflict and Employee performance

Human resource is the backbone of all business. To improve the performance of the organization researchers are trying to improve the performance of this main resource. Many researchers are trying to know how to improve the performance of the organization and how to improve the performance of the employees. According to Cohen & Single, 2001 there are lot of pressure on the administration of the organization to turn into more friendly. Sara and Margaret (2004) argued to become family sociable organization public create a stability among their family and job. Now a day’s organizations are functioning on this fact of work-family conflict to keep their workforce and also enhance the efficiency. Baltes, Briggs, Huff, Wright, and Neuman (1999) said that most research has held to observe the influence of elastic scheduling on performance level of organization. Stress is also harmful for the performance of the employees. Many authors said that organization performance enhanced by diminishing the stress. (Baltes, et al., 1999; Pierce & Newstrom, 1980) said that when employees are free to work according to their own choice their performance towards organization increased. It means when stress is smaller performance is greater.  A tension free person can do a better work as compared to stressed mind person. (Grover & Crooker, 1995; Scandura & Lankau, 1997) have found organization obligation become positive when flexible time scheduling is being adopted by organization. People are attracted towards such organization whose adopt the elastic work arrangement. (Glass & Finley, 2002) said that elastic job plan has a direct effect on organization obligation, maintenance and work motivation. (Rau & Hyland, 2002) have originated that businesses are more attractive to people who adopt the elastic work schedule as contrasted to those organization who do not adopt the flexible job schedule. Elastic job schedule play a significant part in decreasing the work family conflict and anxiety that affect the employee performance. Galinksy, Bond, and Friedman (1996) said that elastic work schedule will diminish the stress and ultimately increase the employee performance. (Almer & Kaplan, 2002) recommends that elastic work schedule help to reduce stress and burnout. These researches explain that anxiety and work family conflict have significant effect on employee performance and in eliminating these elements be able to enhance the employees’ performance.

In most research it is concluded there is inverse connection among personal life and employee performance. Frone, Russell, and Cooper (1997) observe the influence of organization existence on performance and concluded a significant association; they used a personality detailed level to determine the efficiency. (Aryee 1992) observed that performance is linked to work-parent variance not linked to work spouse variance. (Blackhurst, Brandt & Kalinowski 1998) said that managerial commitment is inversely linked to personal existence of individuals which results in low productivity and therefore high level of conflict take place. Jackson and  Schulert (1985) and Aven (1988) found that work influence the individual existence of workers. It was argued that commitment influence the personal life of employees which results in low performance of employees. The same results explored by Allen & Meyer (1990). According to Lee & Hui, 1999 work to family has negative influence on performance level of employees. When job influence the family the performance of employees reduces and it is fine indication of determining the devotion individual has for his work. According to Ali and Baloch, 1999 commitment affect the personal life of employees which results in low performance of employees. Brandt, Krawczyk & Kalinowski (2008) examined that there exist a disagreement among personal life and employees’ performance. Aminah (2008) said that work and family conflict is inversely linked to employees’ performance. It is examined that work and family conflict increases employees stress and through this performance decreases. Work life conflict decreases the job satisfaction and in results performance decreases. There are lot of research took place that hold inverse relation exist between conflict and performance level of employees hence it is assumed that there is negative relation between conflict and performance level of employees in Pakistan.

CHAPTER 3

Research Methodology

3.1 Introduction

This section illustrate the practical design of the research work and provides information regarding the research philosophy, research strategy, methods and analytical tools and techniques used in this study. The types of the data and justification of the research methods and analytical techniques would also be provided in this chapter. Other important information covered by this chapter are sampling technique used and justification of the sampling technique, ethical standards observed during the process of the research and data collection and validity and reliability issues of the data. These issues are very much important to deal with in the rigorous manner as the applicability and value of the research is dependent on the methodological design of the study and data collected. The methodology of the research must be aligned with the goals and objectives of the study so that the purpose of the research could be fulfilled in an appropriate manner. There are various research methods and methodological choices from which a researcher can opt for, but the right design and right methodological choice require understanding of the topic and phenomenon which is being studied.

3.2 Research Philosophy

The basic framework of the research study is determined by the research philosophy i am going to use for the research. This is the foundation of the research design through which i decides that which course of action is suitable to attain the goals of research work and to find the answers to the research questions. This study uses a combination of the research philosophies. The Positivism Paradigm is a research philosophy that assumes that the variables used in this study are scientific variables and the questions to the research problems could be found by treating them as scientific variables. The underlying assumption here is that social variables exhibit a systematic pattern of flow (Saunders, Thornhill, and Lewis, 2009). This approach advocates that the researcher should keep a distance from the sources of information so that the objective information could be collected and any possibility of the personal biasness on the part of researcher could be eliminated. This philosophy is adopted this philosophy on the issues which are researched before and in this regard the author would try not to interfere the data collection process and data would be collected by independent sources through questionnaires that reduce the possibility of the personal bias and problem of wrong interpretation from the research.

The other approach applied is Interpretivism which is widely used while gathering information on the social phenomenon. This philosophy advocates that social variables could not be treated as scientific variables as these variables have an unsystematic and unpredictable flow of pattern. Thus, it is very much important for the researcher to get involved with the respondents i.e. sources of the information so that valid and correct information could be sorted out and used in the research. It also enables the researcher to understand the phenomenon in a better way (Bryman and Bell, 2007).

3.3 Research Approach

The main base of any research study is provided by the available literature on the topic, in order to grasp the phenomenon in full the author has done an extensive literature review pertaining to the topic. Literature is used to identify the key variables (Leadership, Compensation, Conflicts, and Working conditions) to be used in the study and then impact of these variables would be sorted out on employee job performance in the corporate sector. The primary data is collected in order to have the first hand response of the customers. The 240 questionnaires were dispersed between the respondents that are the employees of different private companies. The data collection yielded a response rate of 83% as 200 questioners were received back in full that are used for the analysis of this research.

3.4. Data Collection Methods

The data was collected through the questionnaires which had scales measuring the constructs (leadership, compensation, conflicts and working conditions) relating to employee job performance. These scales are deemed as the quantitative and are used to quantify the phenomenon which is of qualitative nature. So this research method is considered as quantitative method of data collection. The data collected through quantitative methods is easy to collect and is of standardized nature. The respondent is provided with a set of possible choices to choose from and these answers are pre-determined by the researcher and reflect his understanding and thinking. This is a very much suitable method when the time constraint is involved and time for the data collection is short. In this sense it is a very suitable method of data collection for this study as the time for this study is short.

The other method of data collection is the qualitative data collection method, which is not applied in this research. This method provides extensive and in-depth information regarding to the phenomenon being investigated. The information generated by this method could not be expressed in numbers and is not suitable for the statistical inferences. This method is particularly useful in complex nature of study where little facts are known and exploration of related facts is required. This study is quite simple and do not require the complex methodological settings the phenomenon studied in this research is already studied previously by many researchers.

There are two types of data which are used in the research. Both of the types are used in this research and description relating to each is provided here under:

3.5.1. Secondary data

Secondary data contains existing information which is composed by someone else for their own use. These data collection units may be governmental agencies, organizations or individuals. The main objectives of the data collected could differ than the objectives you are pursuing but there might be some common themes and information relevant to your study or closer to the objectives of your interest (Saunders, et al, 2009).  This study used the secondary information from books, journals and internet sources.

3.5.2 Primary data

Primary data is the data which is collected for the very first time specifically to achieve the some objectives under consideration. This study primarily used questionnaires to collect the data from the respondents. Questionnaire was developed as quantitative mean of data collection.

A questionnaire is suitable tool to gather the data of quantitative nature. I used analysis technique for this research work using the questionnaires as data collection instrument as questionnaires allow the respondents time to think about the research questions which produce more meaningful answers (Peil, Mitchel, & Rimer, 1982). The questionnaire of the study had two parts. Fist part of the questionnaire asks information about the demographics of the respondents. The second part of the questionnaire contained 36 statements relating to the variables used in the study. All the statements required the respondent to rate them on likert scale of 1 to 5 from strongly disagree to strongly agree. First five statements were related to the variable of conflict, then six statements measure leadership, nine are relevant to the working conditions, then eight statements measure the compensation, and in the last employee job performance is measured by eight items. Moreover, some of the scales such as leadership and compensation were slightly modified to fit with our research in a specific sector i.e. corporate sector. The questionnaire has also instructions regarding how to fill the questionnaire and a declaration providing that the data collected would be reserved off the record and would only be utilized for the intention of this research.

Questionnaires are widely used measure of the quantitative data collection. It also saves time and cost of data collection. Once a questionnaire is developed it is very much easy to distribute it and gather the required information in a logical and organized way.

Other way to collect the primary data could be focus group discussions and interviews which normally produce qualitative data which is out of scope of this research.

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 4.1 illustrates the details about mean, median, mode and standard deviation scores of the variables of the study. These scores were found using the descriptive statistics in SPSS. The descriptive shown in the table indicate that mean of work-life conflicts is 3.33 with a standard deviation of .78. The mean score of work-life conflicts indicates that employees on average somewhat agree that they experience conflicts between their professional and personal life. The standard deviation of work-life conflicts is also quite low which shows less variability of the responses and overall reliability of the score is better. The mean score of leadership is 3.79 with a standard deviation of .65 indicating that employees somewhat agree that their immediate bosses and head of their organizations have friendly relations with them as well as keep the workforce morale high by encouraging the top performers. Moreover, there is less variability in the responses as indicated by the standard deviation of leadership. Working conditions has a mean score of 3.45 and standard deviation of .45. The mean score of working conditions indicates that employees somewhat agree that they experience healthy work environment in their respective organizations. The standard deviation of working conditions is also quite low which shows less inter response variability. The mean score of compensation is 3.11 with a standard deviation score of .68. As the mean score of compensation is more than 3 which was marked as indifferent in the questionnaire but it is not close to 4 which means employees somewhat agree that they are paid attractive compensation for their services towards their respective employers. Moreover there is less variability in the responses as indicated by the standard deviation scores of the compensation. The mean score of employee job performance is 3.59 with a standard deviation of .53 which indicates that employees somewhat agree that they complexly aware about their job roles and perform all the assigned tasks effectively and efficiently. The standard deviation of employee job performance also indicates that there is less inter response variability. The overall findings indicated high scores on leadership and average scores on employee job performance and working conditions. However scores on work-life conflicts and compensation are relatively low as compared to other variables.

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 4.3 describes the frequency and percentage distribution on the opinion of employee working in different companies operating in Lahore on leadership. Results show that data were collected from 200 respondents of which 123 (61.5%) agree and 25 (12.5%) strongly agree that the head of their organizations are much friendly and cooperative and motivate the workforce by encouraging the top performers. Overall majority of the employees agree that their immediate bosses and head of their organizations play very important role in improving their job performance through encouragement and time to time guidance and insights about different workplace issues. These findings can also be seen in the following figure.

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 4.4 explains the frequency and percentage distribution on the opinion of employees working in different companies operating in Lahore working conditions. Findings indicate that two hundred respondents participated in the questionnaire survey of which 96 (48%) agree and 2(1%) strongly agree that they experience healthy work environment in their respective organizations. The employees who provided neutral opinion are 92 (46%) whereas respondents with disagree opinion are very few i.e. 10 (5%). Overall majority of the respondents agree on the prevalence of healthy work environment in their respective organizations. These findings can also be seen in the following figure.

Table 4.5: Frequency and Percentage Distributions on the Opinion of employees working in different companies operating in Lahore on Compensation (n=200)

Table 4.5 illustrates the frequency and percentage distribution on the opinion of employees working in different companies operating in Lahore compensation. Findings shown in the table indicate that majority of the respondents 112 (56%) provide neutral opinion on the prevalence on compensation practices in their respective organizations. 55 (27.5%) of the respondents agree and 1 (0.5%) strongly agree that they are paid handsomely by their employers. However 32 respondents (16%) disagree on the prevalence of attractive compensation practices in their employing corporate companies. These findings can also be seen in the following figure.

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 4.6 explains the frequency and percentage distribution on the opinion of employees working in different companies operating of Lahore on job performance. Findings indicate that data were collected from 200 subjects of which 98 (48.5%) agree and 11 (5.5%) strongly agree that they are completely aware about their job roles and deliver superior job performance by performing all assigned tasks efficiently and effectively. However, the respondents with neutral opinions are 92 (46%) which shows that a lot of employees don’t know whether they are completely aware about their job duties as well as their level of job performance. These findings can also be seen in the following figure.

Table 4.7: Frequency and Percentage Distributions on gender of the subjects (n=200)

Table 4.7 illustrates the frequency and percentage distribution on gender specification of the subjects of the study. Results show that two hundred employees participated in the survey of which 113 (56.5%) were males and only 87 (43.5%) were females. Hence, more males than females participated in this study. These findings can also be seen in the following figure.

Table 4.8: Frequency and Percentage Distributions on marital status of the subjects (n=200)

Table 4.8 illustrates the frequency and percentage distribution on gender specification of the subjects of the study. Results show that two hundred employees participated in the survey of which 104 (52%) were maried and 96 (48%) were single. Hence, more married persons than unmarried participated in this study. These findings can also be seen in the following figure.

Table 4.9: Frequency and Percentage Distributions on qualification of the subjects (n=200)

Table 4.9 shows the frequency and percentage distribution on qualification of the subjects. According to the results shown in table, majority of the respondents had master’s degrees in this study – 103 (51.5%) in total. Respondents with bachelor degrees were 64 (32%), ACMA and CA qualified respondents are 24 (12%) and 8 (4%) respectively, whereas only 1 (0.5%) respondents had some other degrees, diplomas or certifications as their highest qualification. These findings can also be seen in the following figure.

Table 4.10: Frequency and Percentage Distributions on designation of the subjects (n=200)

Table 4.10 indicates the frequency and percentage distribution on designation of the subjects of the study. Findings in the table show that data were collected from employees of diversified designations such as structural engineers, hr managers, architectures, assistant manager accounts and assistant managers contracts. It can be observed from the data that 83 (41.5%) respondents were architectures, 58 (29%) were assistant manager accounts, 30 (15%) hr managers, 19 (9.5%) assistant manager contracts and only 10 (5%) respondents are structural engineers. Hence majority of the respondents in this study had been working in various organizations as architectures. These findings can also be seen in the following figure.

Table 4.11: Frequency and Percentage Distributions on age of the subjects (n=200)

Table 4.11 indicates the frequency and percentage distribution on age of the subjects of the study. Results show that the age ranges of 25–40 ranked first with 159 (79.5%) respondents, the age of above 40 years ranked second with 24 (12%) respondents, followed by the age of up to 24 years with 17 (8.5%) respondents. Hence, majority of the subjects in this study were between the age of 25and 40 years. These findings can also be seen in the following figure.

Table 4.12: Frequency and Percentage Distributions on experience of the subjects (n=200)

Table 4.12 indicates the frequency and percentage distribution on experience of employees working in different companies of Lahore. Results show that 123 (61.5%) of the respondents had job experience for 5–15 years, 69 (34.5%) of the respondents for less than 5 years, followed by 8(4%) of the respondents for more than 15 years. Hence, majority of the respondents in this study had been working in their respective organizations for 5 to 15 years. These findings can also be seen in the following figure;

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.

The finding shows that the relationship between work life conflict and employee job performance is significant. R square is 0.017 which entails that 1.7 % of the variation in employee performance is accounted for by this model and (p <0,05) thus I accept H1. The relationship between leadership and employee performance is significant. R square is 0.035 which entails that 3.5% of the variation in employee performance is due to this construct and (p <0.01) thus I accept the H2. The relationship between working condition and employee performance is significant. R square is 0.004 which entails that 0.4% variation in employee performance is accounted for by this construct and (p <0,05) thus I accept H3. The relationship between compensation and employee job performance is significant. R square is 0.020 which entails that 2 % of the variation in employee performance is accounted for by this construct and (p <0,05) thus I accept H4. But the most significant and the strong relationship are found between leadership and employee job performance. This means that employees of corporate sector are more satisfied with friendly leadership.

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