Abstract: | This study investigates the effect of the work environment on employee job performance at the
Ethiopian Health Insurance Head Office (EHIS), focusing on four key factors: physical
environment, psychological environment, social environment, and organizational culture. Using a
census approach, data were collected from all 190 employees, with 188 responses received using
questioners and quantitative research approach and explanatory research design was flowed. The
findings reveal generally positive perceptions regarding the physical and psychological work
environments, with employees reporting satisfaction with aspects such as workstations, lighting,
airflow, and supervisor support. However, challenges such as noise levels, workspace adequacy,
workload complexity, and stress were identified as areas of concern. The social environment
showed mixed responses, particularly regarding professional development opportunities and worklife balance. Organizational culture was perceived positively in some areas but indicated significant
room for improvement in terms of workload management, communication, and employee wellbeing. The study further established a strong positive relationship between the work environment
and employee job performance, with physical environment factors having the most significant
impact, followed by organizational culture. Regression analysis confirmed that work environment
factors account for 74.1% of the variation in job performance. The study concludes that improving
workload management, professional development opportunities, work-life balance, and fostering a
supportive organizational culture can significantly enhance employee job performance and overall
well-being. |