THE EFFECT OF WORK ENVIRONMENT ON EMPLOYEE’S

PERFORMANCE: THE CASE OF THE UNITED INSURANCE

COMPANY S.C

BY: BEHAILU AWEKE

JANUARY, 2023
ADDIS ABABA, ETHIOPIA

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 THE EFFECT OF WORK ENVIRONMENT ON EMPLOYEE’S
PERFORMANCE: THE CASE OF THE UNITED INSURANCE COMPANY
S.C

BY: BEHAILU AWEKE

NGVC/MBA/R/607/13

A THESIS SUBMITTED TO NEW GLOBAL VISION COLLEGE MBA PROGRAM IN

PARTIAL FULFILLMENT OF THE REQUIREMENT FOR A DEGREE IN MASTER
OF BUSINESS ADMINISTRATION

ADVISOR: DEBELA GELETA (ASSISTANT PROFESSOR)

NEW GLOBAL VISION COLLEGE

MASTERS OF BUSINESS ADMINISTRATION PROGRAM

JANUARY, 2023
ADDIS ABABA, ETHIOPIA

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 NEW GLOBAL VISION COLLEGE
MASTERS OF BUSINESS ADMINISTRATION PROGRAM
ADVISOR’S APPROVAL SHEET
This is to certify that the thesis entitled “The Effect of Work Environment on Employee’s Performance: The Case
of The United Insurance Company S.C” submitted in the partial fulfillment of the requirements for the degree of
Master of Business Administration, the graduate program of New Global Vision College and has been carried out
by Behailu Aweke. Id. No. NGVC/MBA/R/607/13 under my supervision. Therefore, I recommend that the
student has fulfilled the requirements and hence herby can submit the thesis to Graduate Program of New Global
Vision College.

Debela Geleta(PhD) ________

Name of advisor Signature Date

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 NEW GLOBAL VISION COLLEGE
MASTERS OF BUSINESS ADMINISTRATION PROGRAM
EXAMINERS’ OF APPROVAL OF THESIS
This is to certify that the thesis prepared by Behailu Aweke, entitled “ The Effect of Work Environment on
Employee’s Performance: The Case of The United Insurance Company S.C ” and submitted in partial fulfillment of
the requirements for the Degree of Master of Business Administration complies with the regulations of the college
and meets the accepted standards with respect to originality and quality.

Signature of Board of Examiner`s:

External examiner: ____________________Signature: ____________Date: _____________.
Internal examiner: ____________________Signature: ____________Date: _____________.
Dean: _________________________ Signature: ____________Date: _____________.

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 DECLARATION
I, Behailu Aweke, have carried out a research proposal on “The Effect of Work Environment on
Employee’s Performance: The Case of The United Insurance Company S.C” independently in
partial fulfillment of the requirement of the Master of Business Administration with the guidance
and support of the research advisor, Debela Geleta (Assistant Professor).
I, also declared that this thesis is my original work and that all sources of materials used for the
thesis have been duly acknowledged. I further confirm that the thesis has not been submitted either
in part or in full to any other higher learning institution for the purpose of earning any degree.

Declared by:

Mr.Behailu Aweke ___________________

Name of the Designate Signature Date

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 ACKNOWLEDGMENTS
I would like to thank to Almighty GOD for everything he gave me throughout my life and for
granting me the strength, diligence, courage, patience and inspirations for the successful
accomplishment of this thesis. Next, I would like to address my special thanks to my research
advisor Debela Geleta (Assistant Professor) for his professional and ethical guidance in every step
and process of conducting this research. To this end, I should say, his willingness to devote his
time and to use his expertise in each point of discussion need to be appreciated and I am grateful
for that. I would like also to acknowledge management and employees of unic Ethiopia, who
helped me in obtaining the required information for this study. I would also like to extend my
gratitude to all respondents that took the time to participate in this thesis and for openly answering
my questions. I would also like to thank all my family members, my friends, individuals,
corporation for cheering and supporting me in my work. Finally, I would like to give my special
thanks to my beloved friend, for their support, patience and care to enable me to complete this
study.

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Table of Contents
CHAPTER ONE ............................................................................... Error! Bookmark not defined.

INTRODUCTION ............................................................................ Error! Bookmark not defined.

1.1. BACKGROUND OF THE STUDY .................................... Error! Bookmark not defined.

1.2. RESEARCH QUESTIONS .................................................. Error! Bookmark not defined.

1.3. STATEMENT OF THE PROBLEM ................................... Error! Bookmark not defined.

1.4. OBJECTIVES OF THE STUDY ......................................... Error! Bookmark not defined.

1.4.1. General Objective .............................................................. Error! Bookmark not defined.

1.4.2. Specific Objectives ............................................................ Error! Bookmark not defined.

1.5. RESEARCH HYPOTHESES ............................................... Error! Bookmark not defined.

1.6. SIGNIFICANCE OF THE STUDY ..................................... Error! Bookmark not defined.

1.7. SCOPE OF STUDY .............................................................. Error! Bookmark not defined.

1.8. LIMITATION OF THE STUDY ......................................... Error! Bookmark not defined.

1.9. KEY TERMS......................................................................... Error! Bookmark not defined.

1.10. ORGANIZATION OF THE STUDY .................................. Error! Bookmark not defined.

CHAPTER TWO .............................................................................. Error! Bookmark not defined.

LITERATURE REVIEW ................................................................. Error! Bookmark not defined.

2.1. INTRODUCTION................................................................. Error! Bookmark not defined.

2.2. THEORETICAL LITERATURE REVIEW ....................... Error! Bookmark not defined.

2.2.1. AMO Framework .............................................................. Error! Bookmark not defined.

2.2.2. WORKPLACE FACTORS THAT AFFECT EMPLOYEE PERFORMANCE ..... Error!

Bookmark not defined.

2.2.2.1. PSYCHOSOCIAL WORK ENVIRONMENT ........ Error! Bookmark not defined.

2.2.2.2. Physical Work Environment that Affect Employee PerformanceError! Bookmark
not defined.
2.2.2.3. Work Life Balance ..................................................... Error! Bookmark not defined.

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2.3. EMPIRICAL FRAMEWORK ............................................. Error! Bookmark not defined.

2.3.1. Relationship between Workplace Factors and Employee PerformanceError! Bookmark

not defined.

2.3.1.1. Relationship between Physical Work Environment and Employee Performance

Error! Bookmark not defined.
2.3.1.2. Relationship between Psychosocial Work Environment and Employee Performance
Error! Bookmark not defined.
2.3.1.3. Relationship between Work Life Balance and Employee Performance .......... Error!
Bookmark not defined.
2.4. CONCEPTUAL FRAMEWORK ........................................ Error! Bookmark not defined.

CHAPTER THREE .......................................................................... Error! Bookmark not defined.

RESEARCH METHODOLOGY .................................................... Error! Bookmark not defined.

3.1. INTRODUCTION................................................................. Error! Bookmark not defined.

3.2. ORGANIZATIONAL CONTEXT ...................................... Error! Bookmark not defined.

3.3. RESEARCH SETTING AND APPROACH....................... Error! Bookmark not defined.

3.3.1. RESEARCH APPROACH ............................................... Error! Bookmark not defined.

3.4. RESEARCH DESIGN .......................................................... Error! Bookmark not defined.

3.4.1. POPULATION AND SAMPLE....................................... Error! Bookmark not defined.

3.4.2. DATA COLLECTION METHODS ................................ Error! Bookmark not defined.

3.4.3. VALIDITY AND RELIABILITY ................................... Error! Bookmark not defined.

3.5. METHOD OF DATA ANALYSIS...................................... Error! Bookmark not defined.

3.6. ETHICAL CONSIDERATION ........................................... Error! Bookmark not defined.

CHAPTER FOUR ............................................................................ Error! Bookmark not defined.

DATA ANALYSIS AND INTERPRETATION ............................ Error! Bookmark not defined.

4.1. RESPONDENTS’ DEMOGRAPHIC CHARACTERISTICSError! Bookmark not

defined.

4.2. DESCRIPTIVE ANALYSIS OF EMPLOYEE PERFORMANCEError! Bookmark not

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defined.

4.3. ANALYSIS OF THE MEAN AND STANDARD DEVIATION RESULTS ............ Error!
Bookmark not defined.

4.4. INFERENTIAL STATISTICS ............................................. Error! Bookmark not defined.

4.4.1. Correlation Analysis between work environment and employee performance ....... Error!
Bookmark not defined.

4.4.2. The regression analysis results ......................................... Error! Bookmark not defined.

CHAPTER FIVE .............................................................................. Error! Bookmark not defined.

MAJOR FINDINGS, CONCLUSION AND RECOMMENDATIONError! Bookmark not

defined.

5.1. SUMMARY OF MAJOR FINDINGS................................. Error! Bookmark not defined.

5.2. CONCLUSION ..................................................................... Error! Bookmark not defined.

5.3. RECOMMENDATIONS ...................................................... Error! Bookmark not defined.

Reference ........................................................................................... Error! Bookmark not defined.

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List of Tables
Table 1 Reliability of the data .......................................................... Error! Bookmark not defined.
Table 2: Analysis of the Mean and Standard Deviation Results ... Error! Bookmark not defined.
Table 3 : Correlation Analysis between work environment and employee performance ...... Error!
Bookmark not defined.
Table 4: Coefficients ........................................................................ Error! Bookmark not defined.
Table 5: The Model Significance Diagnosis ................................... Error! Bookmark not defined.
Table 6: The Regression Analysis Model Summary ...................... Error! Bookmark not defined.

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List of figures
Figure 1: Conceptual Frame Work .................................................. Error! Bookmark not defined.
Figure 2 : Photo of Unic Ethiopia Head office building ................ Error! Bookmark not defined.
Figure 3 : Graphical representation for gender of the respondents’Error! Bookmark not defined.
Figure 4: Graphical representation of the ages of respondents’ .... Error! Bookmark not defined.
Figure 5 : Graphical representation of the respondents’ stay with company.Error! Bookmark not
defined.
Figure 6: Graphical representation marital status of the respondents’Error! Bookmark not
defined.
Figure 7: Graphical representation qualification of the respondents’Error! Bookmark not
defined.

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