2.1.3 (Normann 1986). The interactions depends on the

Environmental Factor

A numbers of studies have conduct to explain the work
environment with different aspects such as job satisfaction (laffaldano &
Muchinsky, 1985) and employee retention (Martin 1979),
employee turnover, organizational commitment and job involvement (Sjoberg &
Sverke 2000). Work environment is considered one of the most important factors
in employee’s retention (Zeytinoglu & Denton, 2005). The interesting part
of work environment is work environment characteristics in services sector is
differ from production sector, because services sector directly deal with
consumers or clients (Normann 1986). The interactions depends on the kind of
job or kind of business, it may be more or may be less. The interaction between
employees and client or consumer move from physical to Psychological dimension.
Psychological work environment consist of work load, decision, support,
stressors, latitude and decision etc. It is much important to know and
recognize the emerging needs of employees and provide good work environment as
required to keep the employees committed with organization.

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The company must provide the tools for employees to perform their duties.
This includes the proper equipment, machinery and computer technology as well
as adequate lighting and safety work place. The poor tools may lead to low
productivity and overall job dissatisfaction. When the good employees left
unaddressed, they would have the feeling of unappreciated and they will leave
forever (Bratton, 2003)

Creating a positive and upbeat work atmosphere that nurtures trust and
imbues workers with a sense of common purpose is not easy (Carney, 1998). The
working environment or work atmosphere is the most important variable among the
organizational factors. To create a friendly atmosphere in the company no needs
lot money but it takes time. The employee satisfaction and the chances of
continuity to work would decrease if the company lack of openness in sharing

According to Moureen (2004) work environment is one of the main factors
that would affect the employee retention. Employees will choose to work in an
environment that suitable for them because if the working environment not
suitable for them, they will jump from a company to another company in few
months. The employees may work in the same company for many years if they find
an appropriate working environment in a company.

Horton (2007) said that the work environment can be separate into two
which is good working environment and bad working environment. The employees
would feel relax and appreciated in good environment. The employees would feel
underappreciated, threatened or irresolute in bad environment. Due to the
nature of these environments, there is often a low employee retention or high
employee turnover rates.

Spencer (2001) said the poor furniture and working equipment would lower
down the level of employees’ job satisfaction and this may increase the
employee turnover rates.

According to Nankervis et al (1996), external factors exist outside the
company environment and it is out of the company control.  The external political, social and commercial
environment can have a significant impact on the policies, practices,
strategies and plans of human resource management. By analyzing the outside
community and society, the proactive HR planner can assess likely current and
future changes and determine possible impact on its workforce and
organizational plans. Wood and Macaulay (1991) cite that the economy is an
external environment cause of employee turnover because most of the employees
leave their current job because of the availability of higher paying job out
there. Low quality of overall employees: low unemployment rates lead to
increased turnover because more jobs are available (Bolch,M 2001). He further
argues that, when the actual unemployment rate decrease to 5% or lower, it
would have the difficulty for employers to hire employees to fill job
vacancies. Compounding the situation is the short supply of workers with skills
such as cleaning service industry and other service based industry.



2.4.3 Relationship
between environmental factor and employee’s retention

Work environment is among the
factor that influences employee retention in organization. Ramlall (2003)
people struggle to work and stay with organization that has conducive work
environment like working equipment’s, air conditioning, office space, comfortable
chairs and so forth. George and Jones, (1999), Comfortable working environment
with enough facilities, low physical psychological stress, and achievement of
work goals helps to increase employee satisfaction while poor and stressful
working environment like shortage of work facilities, work overload, inadequate
fund result to dissatisfaction. Thus organization should provide a favourable
and conducive working environment to its employees so as to improve
productivity and efficiency of an organization since employee feels that they
are valued and making difference.

Research conducted by ASID find that physical & work
environment play pivotal role in employee?s decision whether to leave the job
or stay and consider as a major factor in employee retention. Light has been
identified is a casual factor of job performance, sometime noise disturb the
working environments and create a hitch in office which is harmful to employees
psychological & physical welfare, encouragement and at times productivity.
The most plentiful audio grievances are, short of speech isolation, such as
eavesdrop people discussion and receiving the same feeling as well. It is
beneficial for office environment as well as for health to reduce apprehension
and stress.