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

The study investigates the impact of work environment on organizational performance in Ethiopiachr('39')s Arjo Dedessa Sugar Factory (ADSF) and Finchaa Sugar Factory (FSF), as well as the relationship between physical work environment, work-related risk and injuries, psychological work environment, and social work environment. The total number of people employed in two industries is 867 and 2824. To examine the work-related environment condition, a stratified random sampling technique was used to select a sample of 266 and 338 employees. A 60% response rate has been achieved. Statistical software SPSS V 23.0 was used to analyze and determine the relationship between dependent and independent variables using Pearson correlation and linear regression analyses. The findings show that employees in ADSF have a moderate social work environment compared to those in FSF, but both organizationschr('39') physical work environments are the least conducive. Both ADSF and FSFchr('39')s physical work environments had statistically significant effects on their performance. The suggestion was made to improve the social environment in order to improve the employeeschr('39') psychological health.