The Effect Of Stress On Employees Work Performance In An Organization

Project and Seminar Material for Business Administration and Management BAM

The Effect Of Stress On Employees Work Performance In An Organization


This study was conducted to find out the effect of occupational stress on job performance at Aspet A. Company Limited. The study employed descriptive approach. The sample size adopted was one hundred and nine through the help of convenience sampling techniques. Descriptive analysis factors like frequency tables, mean scores and percentages were generated, and their interpretations thoroughly explained and interpreted. Based on the findings of the study, it was clear that there are multiple causes of stress which have physical, emotional and psychological effects on employees at the company.

Chapter One


1.1 Background of the Study

The work place of the 21st century is a fast placed, dynamic, highly stimulating environment which brings a large number of benefits and opportunities to those who work within it. The ever changing demands of the working world can increase levels of stress, especially for those who are consistently working under pressure such as bank workers, medical doctors etc. Whilst pressure has its positive side in raising performance, if such pressure becomes excessive, it can lead to stress which has negative consequence (1ssa, 2009; Alkhasawneh and Futa, 2013; Santiago, 2003).

According to the Oxford Advanced Learner’s Dictionary 6th Edition, stress could among other things, refer to pressure, tension or worries arising from problematic situations in an individual’s life. According to Irene (2005) “job stress is a pattern of reactions that occur when workers are presented with work demands that are not matched to their knowledge, skills or abilities, which challenge their ability to cope”. It is evident from this Irene’s definition that job stress is mostly associated with under-employment.

Stress at work is a relatively new phenomenon of modern lifestyles. According to Beheshtifar and Nazarian (2013), it is an unavoidable consequence of modern living. The nature of work has gone through drastic changes over the last century and it is still changing at whirlwind speed. They have touched almost all professions, starting from an artist to a surgeon, or a commercial pilot to a sales executive. In most cases, job stress is attributable to negative situations such as a formal reprimand by one’s superior for poor performance. Beheshtifar and Nazarian (2013) submit that stress is much more common in employees at lower levels of workplace hierarchies because they have less control over their work situation. However, pleasant circumstances could also bring about job stress, such as job promotion and transfer, to another location. Job stress has attracted considerable attention in recent times especially within the context of organizational behaviour (Kazmi, 2008) Shahu and Gole, 2008; Nilafar, 2009).

Most research findings suggest that when an individual comes under stress, his cognitive performance and decision-making may be adversely affected. Kazmi (2008) investigated the effect of stress on job performance and found that there is a negative relationship between job stress and job performance. Shahu and Gole (2008) inquired if there was any relationship between job performance, job satisfaction and job stress and found out that higher stress levels are related to lower performance. Sabir and Helge (2003) noted that the major changes that have been implemented in the financial sector have caused major negative effects on workers working and personal lives. Santiago (2003) examined the negative effects of internal stress on police performance and found that the negative stress that often results from organizational settings through poor management can be debilitating.

Life in modern societies is generally not without stress. Stressful experience has become part and parcel of living in contemporary society. In most human behaviour, human being will advertently go through some elements of stress. For example, when we subject ourselves to time, pressure or urgently engage in complex and difficult problem solving processes, we become exposed to high noisy environment or new of impending damage, we are most likely to go through movement of stress.

Stress occupies a prominent position in psychological and medical research, psychologist view stress as a disruption of human skilled performance. In clinical research, stress and anxiety as viewed as made of pathological adoptive responses in whether context with view stress its role in human resources management cannot be overlooked. Stress has an emotional experience, which can be monetary affairs. In such cases, the social antecedent of stress is short and we may possess the psychological resources to cope and go through the situation undue disruption of adaptive responses. When this is the case stress posses and energizing effect workers motivation, this will act as a signal for us to get ready for action induced by longstanding condition of tension pains, situation, conflicts, and anxieties ever positive adoptive responses become over stretched and our reactions to it are negative in such cases, the negative effects of stress not only affect our health but diminish our productivity

1.2 Statement of the Problem

The statement was purposely studied due to the following reasons:

  1. To achieve a full knowledge of stress and examine the way to cope with it in rural areas
  2. Identify and monitor the symptoms of stress must especially in rural areas
  3. To examine the possible sources of stress
  4. To examine the technique of controlling stress through
  5. To enable the workers to reduce cost of stress and the risk of constant exposure to stress

1.3 Objective of the Study

The objectives of the study are;

  1. To examine the impact of stress on workers performance
  2. To educate workers on how to manage stress in rural areas
  3. To identify different methods which can be used to reduce stress that affects workers
  4. To help the management to know about the existence of stress in an organization

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

  1. H0: there is no impact of stress on workers performance.
    H1: there is impact of stress on workers performance
  2. H02: there is no significant relationship between work stress and employee performance.
    H2: there is a significant relationship between work stress and employee performance

1.5 Significance of the Study

This research work is important because it would assist the employees of labour, to manage stress and undergone by their workers. It would also serve as an avenue and foundation for future and further study.

1.6 Scope and Limitation of the Study

This write – up is intended to highlight the effort of stress on workers performance. With particular reference to First Bank of Nigeria Osogbo as a case study. The study makes use of the questionnaire which are distributed to employees of the First Bank of Nigeria. The researcher encounters some constrain which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 Definition of Terms


Stress is your body’s way of responding to any kind of demand or threat. When you sense danger whether it’s real or imagined the body’s defenses kick into high gear in a rapid, automatic process known as the “fight-or-flight” reaction or the “stress response”.

Workers Performance:

The job related activities expected of a worker and how well those activities were executed. Many business personnel directors assess the employee performance of each staff member on an annual or quarterly basis in order to help them identify suggested areas for improvement.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
  • Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to ascertain effect of stress on workers performance. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of stress on workers performance

5.2 Summary

This study was on effect of stress on workers performance. Four objectives were raised which included: To examine the impact of stress on workers performance, to educate workers on how to manage stress in rural areas, to identify different methods which can be used to reduce stress that affects workers, to help the management to know about the existence of stress in an organization. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of first bank Lagos state. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made accountants, human resource managers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies

5.3 Conclusion

Stress is very common in day to day life. Now a day’s it’s become our part of life. We can overcome stress but we cannot avoid stress. Stress is not bad all the time. But it occurs during the work time it will affect our performance in work. The result of the study reveals that both the male and female employees are experiencing stress in their work place. Irrespective of the age majority of the employees agree that the job stress is affecting their job performance.

5.4 Recommendation

  1. The supervisors and managers need to explore the causes of the dissatisfaction of employees within the working environment.
  2. Supervisors must assess the level of their subordinates knowledge and skills and whether they will be able to meet their deadlines. They must agree on a performance contract, so that they can give employees with job maturity and control over their jobs.
  3. Time management training should be given to employees on a continuous basis.
  4. Managers should invite employees, who think that they are being given jobs that are in contradiction with each other, and clarify their roles.
  5. Managers should facilitate an employee skill audit that will help to place employees that feel underutilized.
  6. Managers should revise their decision making strategy.

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