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Volume 4, Issue 5 (May, 2015) Online ISSN-2320-0073
Published by: Abhinav Publication

Abhinav International Monthly Refereed Journal of Research in
Management & Technology
WORK ENVIRONMENT AND ITS EFFECT ON JOB
SATISFACTION IN COOPERATIVE SUGAR FACTORIES IN
MAHARASHTRA, INDIA
Dr. Ganesh Salunke
Associate Professor, Amrutvahini Institute of Management and
Business Administration, Sangamner Ahmednagar, Affiliated to
Savitribai Phule Pune University, India
Email: salunkegn@gmail.com
ABSTRACT
Human resource is the most significant and precious asset of any organization, which is essential for
healthy operation of all other resources of the organisation. So, when human resource is satisfied in
terms of their jobs, then only productivity level goes up. The sound work environment is important to
create the social relation at workplace and also maintain the relationship between colleague,
supervisor and the organisation. It describes the relationship in which employees are working
together. Without healthy environment in an organization employees are not happy and satisfied. A
satisfied, happy and hardworking employee is biggest asset of any organisation. Effective results &
productivity for any organisation is depend on the level of satisfaction of employees and work
environment in which he or she is working. The work environment is one of the most important factors
which influence the satisfaction & motivation level of employees. Efficient human resource
management and maintain good work environment or culture effects not only the performance of
employee & organisation but also affects the growth & development of entire economy. This research
paper is an attempt to study the work environment & its effect on job satisfaction in the cooperative
sugar factories. This study is conducted in Maharashtra.
Keywords: Work Environment; Productivity; Performance; Motivation; Job Satisfaction
INTRODUCTION
Cooperative sugar factories in Maharashtra are acting as a tool of economic change in rural
Maharashtra since 1960s. The sugar industry is second largest agro based industry in India and
Maharashtra also. Maharashtra produces about 36 percent of the total sugar produced in the country
and rank second to Uttar Pradesh. On account of this Maharashtra is known as sugar hub of the
country. Co-operative Sugar factory have large potentials of creating employment opportunity in the
rural area.
Because of being highly labour intensive industry it needs to concentrate more in the area of
employee’s work environment. Nashik revenue region in Maharashtra (region comprises of five
districts i.e. Nashik, Ahmednagar, Jalgaon, Dhulia and Nandurbar) has been taken as a sample for this
study, for identifying work environments and its effect on employee job satisfaction.
The workplace environment impacts employee morale, productivity and engagement - both positively
and negatively. The work place environment in a majority of industry is unsafe and unhealthy. These
includes poorly designed workstations, unsuitable furniture, lack of ventilation, inappropriate lighting,
excessive noise, insufficient safety measures in fire emergencies and lack of personal protective
equipment. People working in such environment are prone to occupational disease and it impacts on
Available online on www.abhinavjournal.com 21
Abhinav International Monthly Refereed Journal of Research In
employee’s performance. Thus productivity is decreased due to the workplace environment. It is the
quality of the employee’s workplace environment that mostly impacts on their level of motivation and
subsequent 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 collaboration with
other employees, absenteeism and ultimately, how long they stay in the job. Creating a work
environment in which employees are productive is essential to increased profits for your organization,
corporation or small business. The relationship between work, the workplace and the tools of work,
becomes an integral part of work itself. The management that dictate how, exactly, to maximize
employee productivity center around two major areas of focus: personal motivation and the
infrastructure of the work environment.
A work environment is made up of a range of factors, including company culture, management styles,
hierarchies and human resources policies. Employee satisfaction is the degree to which employees feel
personally fulfilled and content in their job roles. Employee turnover is the rate at which employees
leave their employers, whether voluntarily or involuntarily. These three distinct concepts are
inseparably linked; workplace environments greatly influence employee satisfaction, which in turn
directly affects employee turnover rates. Knowing how to use a positive work environment to increase
employee satisfaction and reduce turnover is a key to developing a high-performance workforce.
In view of the above study is conducted in sugar industries. The study show there is positive
relationship between work environment and employee satisfaction and result in improved quality of
work life. This study throws light on the effect of work environment on employee job satisfaction of
Sugar factories in Nashik revenue region of Maharashtra.
LITERATURE REVIEW
Work Environment
The work environment refers to the relationship between a worker and his environment that can be
broken down into different dimensions like the social, technical and economic in which the work is
normally viewed and designed.
Stephen P. Robbins (2001) advocates that working conditions will influence job satisfaction, as
employees are concerned with a comfortable physical work environment. In turn this will render a
more positive level of job satisfaction.
Miller, Erickson & Yust (2001) forwarded their view that employees get benefited by work
environment that provide sense of belonging [cited in Shoaib Madiha et al., 2009].
Kabir (2011) also established in his research at Pharmaceutical industry, Bangladesh that working
environment played an important role in the employee’s job satisfaction.
The employees are the most important asset in all companies. A good working environment reduces
sick leave, lowers turnover rates and increases efficiency .Work environment means the physical
aspects of a workplace environment can have a direct impact on the productivity, health and safety,
comfort, concentration, job satisfaction and morale of the people within it. Important factors in the
work environment that should be considered include building design and age, workplace layout,
workstation set-up, furniture and equipment design and quality, space, temperature, ventilation,
lighting, noise, vibration, radiation, air quality.
The productivity of employees is determined by an inordinate level, on the environment in which they
work. Work environment involves all the aspects which act and react on the body and mind of an
employee. Under organizational psychology, the physical, mental and social environment where
employees are working together and their work to be analyzed for better effectiveness and increase
productivity. The major purpose is to generate an environment which ensures the ultimate ease of
effort and eliminates all the causes of frustration, anxiety and worry. If the environment is congenial,
fatigue, monotony and boredom are minimized and work performance can be maximised.
VOL. 4, ISSUE 5 (May 2015) 22 Online ISSN 2320-0073

Work has an economic aspect as well as mechanical aspect and it has also psychological aspect.
Effective work environment encourage the happier employee with their job that ultimately influence
the growth of an individual and organisation which leads to growth of an economic level.
The concept of work environment is an actual comprehensive one including the physical,
psychological and social aspects that mark up the working condition. Work environment performs to
have both positive and negative effects on the psychological and welfare of employees. The work
environment can be described as the environment in which people are working. Such as, it is very wide
category that incorporates the physical scenery (e.g. noise, equipment, heat), fundamentals of the job
itself (e.g. workload, task, complexity) extensive business features (e.g. culture, history) and even
extra business background (e.g. industry setting, workers relation). However all the aspects of work
environment are correspondingly significant or indeed appropriate when considered job satisfaction
and this also affects the welfare of employees.
Your work environment and job satisfaction go hand in hand. How you feel about your work, office
and co-workers will affect your productivity and how long you decide to stay at your job. A positive or
negative workplace environment can either help or harm job satisfaction and employee turnover.
A positive work environment is not only important for our physical, mental and emotional health, but
is also important for the product or service we produce for the company. The better we feel at work,
the more likely we will take pride in our work functions and be loyal toward our place of employment.
Elements of work environment: Generally work environment may be divided into three broad
components
Physical Environment: This includes ventilation & Temperature, Noise, Infrastructure and Interior
and Amenities.
Mental Environment: This connotes Fatigue, Boredom, Monotony, and Attitude & Behaviour of
Supervisor & Colleagues.
Social Environment: Social environment denotes to the cluster to which an employees to be
appropriate. Within an enormous ceremonial work group employees form casual cluster in their
personal. Employees develop an intellect of belonging to their cluster. The standards and privileged of
the cluster impact significantly the attitude and behaviour of individual employees.
Effect of Work Environment on Job Satisfaction: The main aim of this study is to identify the effect
of work environment on job satisfaction. However the physical work environment creates the physical
condition that can affect the health of employees. Yet, the way in which the mental environment
creates vicious condition (e.g. fatigue boredom, attitude and behaviour of supervisor and colleagues)
for employees and social environment can affect the confidence level or performance of employees.
So, ultimately the work environment can influence the satisfaction level of employees or else these
factors can consequence the performance of overall.
Characteristics of Work Environment:
Apparent and Open Communication: In essence, it addresses the employees feel that they are
appropriate in the organisation. However it is necessary for staff to deliberate the organisation’s
philosophy, mission and values.
Stability of Work-Life: There has to some sort of balance between work and personal life. In general
having the sense of balance will improve job satisfaction among employees.
Impartiality: Employees need to identify that they are being impartially rewarded established on their
performance. Impartiality means that the consequences of performance are resolute by the quantity and
quality of the performance.
Consistency: Consistency means predictability. Subordinates want to know how their supervisor will
react in a given situation. According to management studies consistency is a single most effective
standard to establish with your own leadership.
Job Satisfaction
Job satisfaction represents one of the most complex areas facing today’s managers when it comes to
managing their employees. Many studies have demonstrated an unusually large impact on the job
satisfaction on the motivation of workers,
Job satisfaction is an attitude that employees have about their work and is based on numerous factors,
both intrinsic and extrinsic to the individual. Job satisfaction is important from the perspective of
maintaining and retaining the appropriate employees within the organization; it is about fitting the
right person to the right job in the right culture and keeping them satisfied
A simple definition of Job satisfaction “Job satisfaction is more an attitude, an internal state. It could,
for example, be associated with a personal feeling of achievement, either quantitative or qualitative."
There are different aspects to job satisfaction, some will agree whole-heartedly to this and some will
disagree. So what are the different dimensions or aspects of job satisfaction?
Individual elements – this means personality, education, intellect, age and marital status. These
individual elements play an important role in job satisfaction.
Social elements – social elements are all things in the social environment of the work place, such as
working relationship with colleagues, interaction and informal association with colleagues.
Cultural elements – these are a person’s beliefs, attitude, values, and religious elements.
Organizational elements – these are elements directly related to the organization like the size of the
organization, structure of the organization, employee-employer relationships, management abilities,
leaderships, delegation and all such things are factors affecting job satisfaction.
Environmental elements – these are elements of influences on the environment around working, like
economic, social, technical and even governmental or political influences.
All these factors, elements or dimensions are very different for each individual and his or her
perspective of job satisfaction. One of the best ways people have realized to get a grip on job
satisfaction is to establish the right kind of culture in their organizations; this is often called corporate
culture.
The satisfaction or utility that a worker receives from employment. Job satisfaction might result from
the working environment (friendly co-workers, supportive boss) or from the type of work performed
(playing sports, creating artwork, accomplishing goals). Satisfaction generated by a job is part of the
"total compensation" an employee receives; meaning workers with more job satisfaction are often
willing to accept a lower monetary wage payment.
A positive work environment can increase job satisfaction and decrease employee turnover. According
to Gallup Business Journal,(2011) your relationship with your supervisor and co-workers will likely
affect your well-being and engagement at work, which will also influence how long you decide to stay
there. Positive, uplifting conversations with your boss and peers will create an encouraging workplace
environment that's productive, thriving and innovative. This type of workplace will also focus on and
praise employees’ progress because, according to a Harvard Business Review survey (2010), workers
are the happiest and most motivated when they believe they're improving and moving forward in their
work.
According to Rothmans and Coetzer (2002), job satisfaction among employees is an indicator of
organisational effectiveness, and it is influenced by organizational and personal factors. Most
employers realise that the optimal functioning of their organisation depends in part on the level of job
satisfaction of employees, hence the emergence of the statement, “Happy employees are productive
employees” (Saari & Judge 2004). For performance to be optimal, an employee’s full potential is

needed at all levels in organisations; this emphasizes the importance of employee job satisfaction
(Rothmann & Coetzer 2002).
FOCUS OF THE PROBLEM
Problem Statement
Employees are the backbone of any organisation. They are the most precious and important asset
among all the asset of any organisation. Job satisfaction is a part of employee life satisfaction. So
based on the above discussion, the study aims to recognize the effect of working environment on job
satisfaction of employees in the cooperative sugar factories.
The main focus of the study is to understand the employees are actually satisfied with their working
environment and working condition. If employees are not satisfied, what are the reasons for
dissatisfaction of employees with the working environment?
OBJECTIVES OF THE STUDY
The objectives of this research was to investigate how the relationship between, work environment and
job satisfaction exists in cooperative sugar industries, hence it is aimed to address the following
objectives through this study
1. To know the working condition of employees.
2. To know the overall satisfaction level of employees.
3. To study the factors effecting work environment.
4. To analyse the effects of work environment on job satisfaction.
5. To ascertain the effect of physical & mental environment on employee performance.
SIGNIFICANCE OF THE STUDY
The significance of this study is to understand the work environment and job satisfaction of employees
in cooperative sugar factories in Maharashtra.
Through this study I came to know:
1. The working condition of employees.
2. What are the internal & external environment factors or reasons which influence the
employees force to leave the job?
3. The work environment influencing directly or indirectly with job satisfaction.
RESEARCH METHODOLOGY
Area of study: The area of study to respondents from cooperative sugar factories in Maharashtra.
Research instrument: Structured questionnaire in Likert’s five point scale.
Sample size: 850 samples.
Sampling Technique: Convenient& Random Sampling Technique
Testing of Hypothesis: Statistical test chi-square is applied.
With a view to achieving the objectives set for the study, the researcher has used combination of
exploratory and descriptive research.
The statements of hypotheses formulated for the study are as follows:
Ho: There is no significant relationship between work environment and job satisfaction.
H1: There is significant relationship between work environment and job satisfaction.
Ho: Work environment does not have effect on employee job satisfaction.
H2: Work environment have effect on employee job satisfaction.
Data Collection: The Primary Data has been collected through questionnaire and interview and the
Secondary Data has been collected with the help of journals, magazines, books and internet
Analysis of Data: Once the data has been collected through questionnaire and interview then the
simplest and most revealing devices for summarizing data is the statistical table. A table will be
systematic arrangement of data in column and rows. The purpose of a table will be simplifying the
presentation and to facilitate results.
DATA ANALYSIS AND INTERPRETATION
Here, the results of the analysis are reported and presented. Data for the analysis was collected from 34
sugar units. Questionnaires were administered to 850 respondents personally and collected, and found
suitable for further analysis. Analysis and interpretation drawn with the help of presenting frequency
and percentage table and hypothesis tested with help of chi-square test.
Table 1. The number of sugar units in Nashik revenue region
District No. of units No. of units taken for survey Percentage
Ahmednagar 17 17 50%
Nashik 05 05 15%
Dhule 02 02 6%
Nandurbar 03 03 9%
Jalgaon 07 07 21%
Total 34 34 100
Source: Primary data
Figure: 1. No. of unit under survey

Above table shows 50% sugar units are located in Ahmednagar district followed by Jalgaon, Nashik,
Nandurbar and Dhule.
Table 2. Recreation and refreshment facilities
Sr. No. Factor Frequency Percentage
1 Strongly Agree 256 30.12
2 Agree 320 37.65
3 Neither agree nor disagree 113 13.29
4 Disagree 110 12.94
5 Strongly disagree 51 6.00
Total 850 100.00
Interpretation: 67.77% employees are agree for providing proper recreation & refreshment facilities
in the working place whereas 18.94% employees are not agree where as 13.29% employees are neither
agree nor disagree.
Table 3. Grievance handling
2 Agree 264 31.06
4 Disagree 62 7.29
Total 850 100.00
Interpretation: 69.18% employees are agreed with grievance handling procedure whereas 16.47%
employees are disagreeing. From the above data it has evaluated those factories handling grievances of
their employees in a good manner.
Table 4. Attitude of Supervisor
2 Agree 281 33.06
4 Disagree 87 10.24
Total 850 100.00
Interpretation: From the above data 71.88% employees are agreed with the attitude of supervisor
whereas 28.24% employees are disagree. So, it has evaluated that maximum employees are satisfied.
Table 5. Fun at workplace
2 Agree 286 33.65
4 Disagree 88 10.35
Total 850 100.00
Interpretation: 65.18% employees are agreed with fun at working place and feel enjoy in working
hours whereas only 24.23% employees are not agreed. Therefore, from the above table it has evaluated
that employees working in sugar factories are feeling good and having fun in their working place.
Table 6. Work involves fatigue and boredom
2 Agree 308 36.24
4 Disagree 52 6.12
Total 850 100.00

Interpretation: 69.30% employees said that their work involves fatigue & boredom, whereas 18.47%
employees feel work does not involve fatigue and boredom. So, from the above data it has evaluated
that employees feel fatigue and boredom in the working place.
Table 7. Health & safety facilities
2 Agree 251 29.53
4 Disagree 94 11.06
Total 850 100.00
Interpretation: 70.08% employees agreed that they get proper health & safety facility whereas,
19.6% employees fell they do not get proper facilities in the working place. So, from the above table it
has evaluated that sugar factories has adapt good health & safety facility for their employees.
Table 8. Physical and mental environment
2 Agree 251 29.53
4 Disagree 92 10.82
Total 850 100.00
Interpretation: 70.35% employees agreed that physical and mental environment have effect on
employee performance whereas, 18.82% employees are not agreed to this statement. So, from the
above table it has been revealed that physical and mental environment have positive effect on
employees performance.
This section addresses the hypotheses of the study.
Table 9. H1 I- There is significant relationship between work environment and job satisfaction.
Chi-Square table
Sr. No Particulars Observed Frequency Expected Frequency O-E (O-E)2/E
1 Strongly Agree 340 170 170 170
2 Agree 258 170 88 45.55294118
3 Neither agree nor 86 170 -84 41.50588235
disagree
4 Disagree 98 170 -72 30.49411765
5 Strongly disagree 68 170 -102 61.2
Total 850 850 348.7529412
Interpretation: From the above table it is cleared that the chi-square table value is 9.49 where actual
table value is 348.75 with degree of freedom 1 and level of significance 5%. It is proved that there is

significant relationship between work environment and job satisfaction and hence, it reject null
hypothesis and accept alternative hypothesis.
Table 10. H1-2Work environment have effect on employee job satisfaction.
Chi-Square Table
Sr.No Particulars Observed Frequency Expected Frequency O-E (O-E)2/E
1 Strongly Agree 348 170 178 186.3764706
2 Agree 250 170 80 37.64705882
3 Neither agree nor 86 170 -84 41.50588235
disagree
4 Disagree 102 170 -68 27.2
5 Strongly disagree 64 170 -106 66.09411765
Total 850 850 358.8235294
Interpretation: The above table showed that the chi-square table value is 9.49 where actual table
value is 358.75 with degree of freedom 1 and level of significance 5%. This proves the hypothesis that
Work environment have positive effect on employee job satisfaction in the sugar factories. Hence, it
reject null hypothesis and accept alternative hypothesis.
LIMITATION OF THE STUDY
 Satisfaction level to environment factor may differ from person to person.
 Study may be absolute because of changing environment and needs.
FINDINGS OF THE STUDY
Survey reveals that employees of sugar factories are basically well satisfied with these factors: work
environment, duties and responsibilities, refreshment & recreation facility, grievance handling
procedure, fun at workplace, health & safety Facility. Sugar factories can retain their employees by
effective implementing these aspects. The finding shows that workplace environment is suitable for
the employees. The study found that work environment significantly affects employee job satisfaction
in sugar industries.
Employees are agreed that these factors: workload & overtime, job includes fatigue & boredom,
attitude of supervisor are affecting work environment. These aspects can have direct or indirect impact
on attrition rate or else job satisfaction of the employees. There is a considerable impact of the
employees’ perceptions for the nature of his work and the level of overall job satisfaction.
CONCLUSIONS
The purpose of the study was to investigate the relationship between work environment and job
satisfaction of employee’s in cooperative sugar factories. Review of literature provided a strong
evidence of the relationship between the study variables. Analysis and interpretation of the data have
empirically demonstrated that workload, stress, overtime, fatigue, boredom are some factors to
increase job dissatisfaction. On the other hand good working condition, refreshment & recreation
facility, health & safety facility, fun at workplace increase the degree of job satisfaction. Effectual
human resource management and preserving progressive work environment would consequences the
job satisfaction and performance of organisation as well as entire economy. Hence, for the success of
organisation it is vital to accomplish HRM successfully and maintain healthy work environment which
will satisfy the employees.
SUGGESTIONS AND RECOMMENDATIONS
It is recommended that management of sugar cooperatives should as much as possible provide sound

work environment for employees to boast their moral. Moreover, management should adapt strategies
for overcome with the problem related to fatigue and boredom to make them satisfied to remain in the
organization. Finally, organization should divide the work equally so that work load stress can be
minimized. Organisational commitment and supervisor support should be encouraging. Subordinate
and colleague should have smooth relation for effective results.
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Volume 4, Issue 5 (May, 2015) Online ISSN-2320-0073

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