This study investigates the effect of the work environment on employee performance among Deposit Money Banks (DMBs) in Ondo State Nigeria, with specific focus on physical, psychological, social, and organisational dimensions. A survey research design was adopted, and primary data were collected through structured questionnaire administered to employees of selected DMBs in Ondo State. Three hundred and two (302) valid responses were analysed using descriptive statistics and multiple regression techniques. The findings reveal a strong and positive relationship between the work environment and employee performance, with the combined dimensions of the work environment explaining a substantial proportion of the variation in performance outcomes. The results further show that the physical work environment has a positive and statistically significant effect on employee performance, while the psychological work environment emerges as the most influential predictor. This underscores the importance of intrinsic factors such as recognition, job autonomy, job security, emotional wellbeing, workload balance, and opportunities for growth in enhancing employee effectiveness. The organisational work environment also demonstrates a significant positive influence, highlighting the critical role of leadership practices, organisational policies, communication systems, and workload management. In contrast, the social work environment, although positively associated with employee performance, does not exhibit a statistically significant direct effect, suggesting that its influence may operate indirectly through psychological and organisational mechanisms. Overall, the study provides robust empirical evidence that employee performance in DMBs is strongly shaped by the quality of the work environment, particularly psychological and organisational conditions. The study contributes context specific evidence to the literature on work environment and performance and offers practical implications for bank management and policymakers seeking to enhance productivity, service quality, and organisational sustainability in the Nigerian banking sector.
Keywords: DMBs, Employee Performance, Nigeria, Work Environment, organisational environment, psychological environment
