Effect of Work Environment on Organizational Performance: A Comparative Study on Arjo Dedessa and Finchaa Sugar Factory

This study examines the impact of the working environment on the organizational performance of the the Arjo Dedessa Sugar Factory (ADSF) and Finchaa Sugar Factory (FSF) in Ethiopia, the physical working environment, work-related risks and injuries, and the psychological working environment and social work environment. The total number of employees in the two sectors is 867 and 2824, respectively. Selected samples of 266 and 338 employees were used as stratified random samples to investigate work-related environmental conditions. A response rate of 60% was achieved. The statistical software SPSS V 23.0 was used to analyze and to determine the relationship between the dependent and independent variables using Pearson's correlation and linear regression analysis. The results show that ADSF employees have a more modest social work environment than FSF employees, but the physical work environment of both organizations contributes the least. Both the ADSF and FSF physical working environments had a statistically significant impact on performance. Improvements in the social environment have been proposed to improve the psychological health of employees. The result is ADSF organization performance = 0.173 + 0.250 physical work environment + 0.304 administrative work environment. FSF Organization Performance = 0.157 + 0.355 Social working Environment.