This literature review attempts to discuss the various literature related to working environment

which has impact on employee productivity. The discussion also identifies gaps left by other

researchers of similar studies. However, this study attempts to fill those gaps so that the write-up

can contribute to a new body of knowledge in the academic world. Through this review,

literature is re-packaged and analyzed as a way of bringing new insights into the problem

studied. Business owners and managers can do much to treat employees with respect and

increase productivity. One consideration is getting to know what management style your

employees prefer. Some employees may prefer closer supervision, while others desire more

leeway and creativity in performing their jobs. Managers must also keep morale high, especially

during economic downturns, when layoffs or firings may exert greater demands on the remaining

workers.

Office employees spend a lot of their time inside a building, where the physical

environments influence their well-being and directly influence their work performance

and productivity. In the workplace, it is often assumed that employees who are more

satisfied with the physical environment are more likely to produce better work

outcomes. Temperature, air quality, lighting and noise conditions in the office affect the

work concentration and productivity. Numerous studies have consistently demonstrated

that characteristics of the physical office environment can have a significant effect on

behaviour, perceptions and productivity of employees. Most of the previous researchers

in their studies are more focused on a single factor that could give an effect on

employee‘s performance at work. However, no study was done to examine the

relationships between the whole factors of physical office environment and employees

‘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. 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.

According to Tripathi (2014) the work environment can be defined as the environment in which

people work that include physical setting, job profile, culture and market condition. Each aspect

is inter linked and impacts on employees overall performance and productivity. It is the quality

of the employees’ workplace environment that most impacts on their level of motivation

subsequently performance.

Healthy work environments can improve employee productivity in two ways. First, healthy

employees feel better, have more energy and endurance, and are more capable of working hard at

their jobs.

Second, healthy work environments can contribute to employee happiness. Companies that

encourage employees to eat right and take care of their bodies indirectly show employees that

they are valued. It’s not a stretch to think that employees who feel appreciated by their

employers are more likely to like their jobs and feel happy at work.
Studies show that happy employees are 12% more productive than unhappy employees. Imagine

what would happen if your company’s entire workforce increased its productivity by 12%.

The boss and employee relationship is important to company productivity. A relationship that is

built on trust and understanding can make the employee and manager more efficient. A poor

relationship that lacks cohesiveness will dampen productivity and can lead to high rates of

employee turnover. There are several elements that make up a boss and employee relationship

that need to be understood by both parties for the relationship to be effective.

Both the boss and employee need to commit to the concept of teamwork if a group is going to

work together effectively. Additionally, the roles for each party need to be well-defined. The

employee is expected to follow instructions, give input when needed, and meet or exceed

performance measurement criteria. The manager is expected to provide the employee with the

necessary resources and training to do the job, be the person who handles team administrative

duties and provide leadership to meet company goals. If either side of the boss and employee

relationship does not hold up their end of the teamwork requirements, then productivity suffers

and teamwork cannot be established.