Impact of a Healthy Workplace Environment on Employee Performance and Productivity: A Literature Review

This literature review analyzes the impact of a healthy workplace environment on the performance and productivity of employees and the organization. It covers topics such as the importance of a healthy and positive working environment, impact on motivation and satisfaction of employees, impact on mental health, impact on leadership, and effects of an unhealthy working environment.

ASSESSMENT

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Table of Contents
INTRODUCTION...........................................................................................................................................3
Main issues arising from the following topic...............................................................................................3
Literature Review........................................................................................................................................3
CONCLUSION...............................................................................................................................................6
Literature Gap and Areas of Future Development......................................................................................6
REFERENCES................................................................................................................................................8
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Type chapter title (level 3)...................................................................................................................6

INTRODUCTION
A healthy and positive working environment is defined as the working culture which helps in
maintaining the health and safety of employees, adopting better lifestyle practices and promotes
and encourages a coordinated and supportive working environment (Christensen, Innstrand and
Saksvik, 2020). It also helps in increasing the motivation level of employees and thus guides and
assists them to improve their performance and productivity within an organization. therefore, it is
very important for the organizations to develop and create a positive workplace environment
which helps in achieving the desired goals and objectives. In the subsequent section a literature
review is conducted and developed to analyse the impact of a healthy workplace environment on
the performance and productivity of the employees and the organization.
Main issues arising from the following topic
 Importance of a healthy and positive working environment
 Impact of healthy working environment on motivation and satisfaction of employees
 Impact of healthy and safe working environment on employees mental health
 Impact of healthy working environment on leadership of organization
 Effects of an unhealthy working environment on the performance of companies and its
related workforce
Literature Review
Topic 1: Importance of a healthy and positive working environment
According to (Di Fabio and Peiró, 2018) , The environment at the workplace plays a very
important role in the organization because it helps in increasing the working efficiency of
employees and their productivity. The working climate in which the employees perform their day
to day work is an essential part for the company management in order to maintain their health
and safety at the workplace. Health and safety of employees at the company is defined as a
guideline which helps in carrying out the day to day operations incurred in the business and for
achieving efficient and effective employee performance. Although maintaining a healthy
working environment in the organization is quite difficult to implement as it requires lots of
changes and cooperation from the side of all the members of the company. Reducing impact of
negative factors that leads to unhealthy environment at the workplace such as prevention of
employee sickness, workplace accidents, and decrease in process of interruption which results in

creating a positive effect on improving the overall profitability and productivity of the company
(Bakker and van Woerkom, 2018). It also helps in reducing the price of final products in order to
achieve competitive advantage for better brand positioning in the market. Healthy and positive
working environment is considered as the main ingredient of getting success in the competitive
environment because it helps in protecting the employees from any harm or sickness which
results in increased working efficiency. Marinating a healthy and safe working environment
helps in boosting the performance of employees, organizational productivity, brand image and
value, investment and growth opportunities and increased profitability of the organization.
Topic 2: Impact of healthy working environment on motivation and satisfaction of
employees
According to (Cheng and Yi, 2018), Motivation and job satisfaction are the two main
factors that organizations consider for improving the working efficiency and performance of
employees. Providing effective motivation is considered as the main aim of the organization as it
helps in generating the best performance from employees for accomplishing the goals and
objectives in an effective manner. Thus, it is very important for companies to maintain a
healthy environment at the workplace that creates a positive response in relation with providing
satisfaction and motivation among employees as it is directly connected with achieving the
organizational success. Working environment is considered as the most essential element upon
which the satisfaction and motivation of employees is dependent and productivity is also highly
dependent on the nature of working in the company (Razak, Sarpan and Ramlan, 2018). Because
of the excessive competition in the business market, the employees have several options
available with them in when it is about attaining job satisfaction in the company. The quality and
nature of workplace environment helps in determining the motivation level for achieving high
productivity and performance in the company. Hence, it can be asserted that a healthy and
positive workplace environment has created a positive impact on the motivation and satisfaction
among employees.
Topic 3: Impact of healthy and safe working environment on employees mental health
According to (De Clercq, Haq and Azeem, 2018), Positive working environment is good
for maintaining the mental health of employees which helps in increasing the productivity and
growth of the company. However, an unhealthy and negative working environment can result in
decreased working efficiency because of mental health problems like stress and anxiety.

Negative environment will not only effects the mental condition of the employee but also
impacts the economic growth and profitability of the company. Companies need to focus on
building a healthy working environment for employees because ineffective environment will
leads to work related stress within employees and is considered as the major reason for poor
professional health, reduced productivity and increased human errors. Therefore, it has a
negative impact on the company performance as it results in more absenteeism of employees,
poor productivity of employee, increased staff turnover and possible increase in human accidents
because of errors. The organizations needs to focus on improving the working environment so
that the health and well-being of employees gets improved (Godinić and Obrenovic, 2020).
Organizations also needs to implement effective strategies for creating a healthy and safe
working environment for high employee engagement and productivity. It has been significant
that the better performance and productivity of employees is highly dependent on the good
mental health of the employees. Thus, it is stated that maintaining healthy working environment
on the company has a positive impact on the mental health and performance of employees.
Topic 4: Impact of healthy working environment on leadership of organization
According to (Foster, Cuzzillo and Furness, 2018), A healthy working environment at the
workplace helps in developing positive culture, safe climate and practices, promoting safety and
health of employees and also increases the company's performance and efficiency. Healthy
environment works as strength for companies because it helps in improving the efficiency and
effectiveness of employees for accomplishing the desired success in the competitive market. It
also helps in maximising the organizational productivity as well as well-being of employees.
However, apart from this, a healthy and positive working environment also helps in promoting
the role of leadership among the managers and leaders of the company. It helps in integrating
them with the thought that a healthy organization not only promotes profitability, but also creates
an environment where all employees feel motivated and inspired to work in the right direction.
Healthy working be environment helps in promoting leadership in organization, it is the duty of
the leader to maintain and create a environment that supports employees (Ramli, 2018). As
leadership helps in utilizing company resources, provides training, and increases potential of
employees which in return promotes healthy environment among employees. Therefore,
leadership is directly linked with the maintenance of healthy and positive working environment.

Topic 5: Effects of an unhealthy working environment on the performance of companies
and its related workforce
According to (Schneider and Harknett, 2019), Motivation and a positive working
environment are the two related and important factors that contribute in better functioning of an
organisation. It has a direct impact on performance of business in competitive market. It
possesses a major impact on the respective person and firms as well. It has been clear that
enterprises have failed to assess expansion and growth-related opportunities, surrounded
environment of company is not positive and healthy and thus it leads to poor work results
measured in a business. A negative and not so healthy environment leads to dissatisfaction and
poor results between employees that leads to effects such as lack of motivation, lack of
punctuality, lack of productivity, efficiency, increase in stress level etc. Hence it is projected that
companies would be developing a working structure that is comfortable, simple, healthy and safe
as well. It is necessary to take efficient steps well in time as it would affect firms in context of its
profitability scale, growth, expansion and productivity as well.
CONCLUSION
In conclusion of this literature review it can be interpreted that a positive, motivated and
healthy working environment Is very helpful to provide significant results in a business. Thus, it
also helps to produce efficient and effective results for improving the performance of a company
in competitive market. On the basis of several literature reviews and evidences that are described
above it can be concluded that firms are required to develop a better and positive environment in
enterprise that would help to produce better results and outputs. It also assesses in maintaining
mental peace of staff working in the related organisations and help them by providing useful
guidance & motivating them to perform better. All such elements are directly linked with the
overall performance served by a business in a given time frame. Hence, it can be said that a
healthy and positive working environment is helpful and useful for improving the level of
performance served by a company in marketplaces.
Literature Gap and Areas of Future Development
Even though there was adequate information available about the topic of research, as the study
based on the overall environment of the workplace and it is not related to a particular industry

and that is why it is difficult to align the different findings of various industries. There was
reduced information available about the topic, thus, most of the data collected in the research is
based on a specific industry. For development in the future more research is needed to be done
based on the global effect of the healthy working environment.

REFERENCES
Books and Journals
Christensen, M., Innstrand, S.T. and Saksvik, P.Ø., 2020. Healthy workplaces: Designing and
implementing health-promoting organizational interventions in healthcare. In Integrating the
organization of health services, worker wellbeing and quality of care (pp. 301-315).
Springer, Cham.
Di Fabio, A. and Peiró, J.M., 2018. Human Capital Sustainability Leadership to promote
sustainable development and healthy organizations: A new scale. Sustainability, 10(7).
p.2413.
Bakker, A.B. and van Woerkom, M., 2018. Strengths use in organizations: A positive approach
of occupational health. Canadian Psychology/psychologie canadienne, 59(1). p.38.
Cheng, J.C. and Yi, O., 2018. Hotel employee job crafting, burnout, and satisfaction: The
moderating role of perceived organizational support. International Journal of Hospitality
Management, 72. pp.78-85.
Razak, A., Sarpan, S. and Ramlan, R., 2018. Effect of leadership style, motivation and work
discipline on employee performance in PT. ABC Makassar. International Review of
Management and Marketing, 8(6). p.67.
De Clercq, D., Haq, I.U. and Azeem, M.U., 2018. Workplace ostracism and job performance:
roles of self-efficacy and job level. Personnel Review.
Godinić, D. and Obrenovic, B., 2020. Effects of economic uncertainty on mental health in the
COVID-19 pandemic context: social identity disturbance, job uncertainty and psychological
well-being model. International Journal of Innovation and Economic Development, 6(1).
Foster, K., Cuzzillo, C. and Furness, T., 2018. Strengthening mental health nurses' resilience
through a workplace resilience programme: A qualitative inquiry. Journal of psychiatric and
mental health nursing, 25(5-6). pp.338-348.
Ramli, A.H., 2018. Manage of job stress and measure employee performance in health
services. Business and Entrepreneurial Review, 18(1). pp.53-64.
Schneider, D. and Harknett, K., 2019. Consequences of routine work-schedule instability for
worker health and well-being. American Sociological Review, 84(1). pp.82-114.