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Effect Of Internal Environment On Employee Performance In Power Holding Company Of Nigeria (PHCN), Enugu


The aim of this study was to assess the Effect of Internal Environment on Employee Performance in PHCN, Enugu distribution Company. The study defined research objectives, research questions. The study used structured questionnaire to collect responses from the study population sample. Secondary data from already published books and magazines were used to build the conceptual framework of the study; the analysis of data was based on respondents who returned correctly completed questionnaire and the hypotheses were tested using the Chi-Square statistical method. The findings reveal that to a good extent in PHCN, Enugu Internal Environment Effect Employee Performance. The study therefore recommended an improved and enhanced work environment in Power Holding Company of Nigeria (PHCN) Enugu Distribution Company.



Businesses operate within a supra system called operating environment. These environmental factors be it internal or external bears directly or indirectly on the operations of that business.
Many a business organizations have collapsed because of the effects of environmental factors. The environment of an organisation has got internal, operational and general lives, managers must be aware of these environmental levels and their relationship and importance. Whenever a business takes any decision regarding the business it has to take due care of the environment in which it is running. The decision should not be against the stakeholders of the business thereby it definitely affects the business.
Generally, internal environment refers to one’s immediate surroundings including water, air, land in which one lives that influences one’s life. But for the purpose of this research, internal environment here shall be referred to as elements within the work environment, such as working

staff and al factors-incentives, salary increase and opportunity to develop oneself. These have effects on the overall performance of an employee. An improved work environment will result in a reduction in a number of complaints and absenteeism and will bring an increase in productivity, Roelofson (2002).
Employee makes critical difference between success and failure. The effectiveness with which organizations manage, develop, motivate and engage the willing contribution of the employees will enable them to capitalize on their expertise most efficiently. There is a link between people management and business performance. According to Roelofson (2002) one of the fundamental human requirements is work environment that allows people to perform their work optimally under comfortable condition.
People are beginning to be conscious of the fact that to

be happy and cheerful in one’s work place, some conditions must be present even with little pay. For example, not withstanding whatever is provided for a seamstress for her job, if there is no machine, all that is provided comes to

naught. Again, when a librarian is presented with a noisy environment, he will not carry out his work effectively because the environment suitable for effective library function is quietness and orderliness. Similarly, an accountant who deals with figures will be annoyed if he is sharing a calculator with four staff members. Also, the secretary is looked upon as human machine, trained with the responsibility of taking note of what others may regard as minor and making suggestions based on records available. To effectively carry out these and other functions, the secretary needs a ‘hightech’ office where some electronic machines will complement his/her human ability.
In an employment situation, the employee promises to live up to expectations. The employer expects nothing less. But the point is: has the employer provided a work environment that will facilitate the effective discharge of the employees’ assigned duties? Most employers keep complaining of poor returns from employee without taking out time to find out why the new employer has not performed beyond what the former one was able to do.

work and most conducive working environment they can perform exceptionally well, and companies can capitalize on their enhanced productivity in the shape of cost reduction, which will ultimately contribute towards rich profits. The relationship between employee attitudes and company performance, as suggested by Patterson et’al., (1997), is highly correlated. They suggested that managers of organizations who are eager to promote productivity and profitability should pay close attention to the attitudes of their employees in orders to make them more positive.


This project work is aimed at ascertaining the effect of internal environment on employee performance. The statement of research problems therefore arises from the question such as:
a) How can internal environmental factors affect employee performance?
b) Does internal Environment have any bearing on the performance of employees?

employee performance?

d) Do employees respond to changes in the work place environment?
e) Is there any relationship between work place environment and the productivity of the employees?


The study will investigate whether perceived promotional opportunities will make employees stay with the company and whether money is the main motivating factor. Furthermore, the following objectives will also be given attention:
1. To highlight some internal factors that impact on productivity.
2. To ascertain the extent of effect of work environment on employee performance.
3. To highlight what motivates employee in the


4. To identify better means of inducing higher employee performance to enhance job satisfaction.

working environment for PHCN staff.


1. Provision of a good working environment and conditions of service lead to low rate of absenteeism and low rate of job turnover in PHCN
2. Increase in salary and bonuses are major internal

factors that enhance performance of PHCN workers.

3. Well equipped office and equipment facilitates workers performance among PHCN staff.
4. Government policies and privatization requirement is a major hindrance that impacts on the performance of PHCN staff


This study will explore the effect of internal environment on employee performance and the make-up of what constitutes a good internal environment in the company used as a case study. It is intended to be of interest to the top management in the service companies who would find the study very essential as a guide in structuring the internal environment

in place to enhance efficiency and also increase the level of job performance.


The study is not designed to cover the service firms in Nigeria but is limited to Power Holding Company of Nigeria Plc, Enugu Zone. Efforts have been specifically made to find out how the effect of internal environment affects the job performance of staff of Power Holding Company Plc for this purpose; the study covers the entire management cadre.


This study is limited to Power Holding Company of Nigeria Plc Enugu Zone due to time and logistics constraints, which made extensive coverage of service or even manufacturing firms difficult.


Environment: The sum total of the surrounding conditions whether physical or not that affects or influences development.

service to an employer under a defined agreement for reward.

Performance: This is the act of doing a piece of work which one is either ordered to do or promised to do. It could be as the result of an act, which is measured in quality or in quantity.

Productivity: The rate or efficiency of work especially in manufacturing or service organizations.


Abraham Maslow (1970): Motivation and Personality 2nd edition, New York.

Alderfer C. (1972): Existence, Relatedness and Growth of Human
in Organizational Psychology.

Armstrong, M. (2004). Handbook of Human Resource Management

Practices (9th ed.). London: Kogan Page.

Onodugo V. A. et all (2010): Social Science Research: Principles, Methods and Applications, Enugu, Ed‟mark Publishers.

Ozo, J. Ubata et‟al (1999): Introduction to Project Writing for Business and

Financial Studies. Enugu Sunny Enterprises.


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