The Impact Of Working Environment On Employees' Performance In Private And State Owned Banks: A Case Of Sebeta Sub-City In Sheger City, Ethiopia

Abstract

A good work environment is essential for guaranteeing employee performance and avoiding excessive stress, which can negatively impact employee performance. Several aspects of the working environment have a role in employee performance. Therefore, the study aimed to investigate the impact of work environment on the performance of Bank employees in Sebeta sub city. A Sheger city sebeta sub city bank industry was chosen for this study due to accessibility and feasibility. More specifically, the study sought to establish the extent to which physical workplace factors, psychosocial factors and the work life balance factors influence performance of Bank employees in Sebeta sub city. The population of the study was 156 staff from which a sample of 112 respondents were drawn using stratified random sampling with probabilities proportional to the size of the firm was used to allocate samples within the Banks. To achieve the objectives of the study, Explanatory design was employed. A sample of 104 employees participated in the study as respondents. Descriptive statistics and multiple regression models were used to analyze the data The study findings indicate that physical aspects do not significantly impact employee performance, whereas psychosocial factors and work-life balance have a significant influence. In summary, fostering positive psychosocial aspects and maintaining a healthy work-life balance are crucial for enhancing employee performance. The results indicated that psychosocial aspects exhibited the strongest association with employee performance, while physical aspects had a moderate impact. It is recommended that attention be given to other influences in workplace environments, including physical conditions and work-life balance. In summary, fostering positive psychosocial aspects, optimizing physical work conditions, and promoting work-life balance contribute to a healthier and more productive workforce