Effect Of Stress On Employees’ Performance In An Organization

Project and Seminar Material for Business Administration and Management BAM

Abstract

This study examined the effect of stress on employees’ performance in an organization using Eco bank, Uyo as a case study. Specifically, the study found out whether exploring and understand the extent to which effect of stress affect workers efficiency and productivity in work setting, understand the causes and influences of stress on workers performance, investigate how the effect of stress on each employee influence management efficiently and suggest and recommend on ways in which managers can effectively address and handle causes of stress in the work setting to achieve the organizational productivity. The study employed the survey descriptive research design. A total of 35 responses were validated from the survey. From the responses obtained and analyzed, the findings revealed that the effect of stress on employee performance lead to inefficiency and low productivity. Also, employee performance plays a vital role in organizational development. This study was anchored on Michigan Model, Maslow’s hierarchy of needs theory and the Lazarus Theory. The study thereby recommend that an employee assistance programme has to be introduced in organizations for early identification and intervention on problems so that performance levels will increase. Also, organizations can also use few more interventions for stress management namely regular counseling sessions, time management and behavioural training, employee wellness program and sessions like art of living etc. Lastly, management of the organization should invite employees, who think that they are being given jobs that are in contradiction with each other, and clarify their roles.

Chapter One

Introduction

1.1 Background of the Study

Stress is a common element in any kind of job and persons have to face it in almost every walk of life. Stress has been defined in different ways over the years According to Robbins and Sanghi (2006) “A dynamic condition in which an individual is confronted with an opportunity, constraints or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important” stress is an increasing problem in organizations and often cause adverse effects on performance.

According to Kahn and Quinn (2010) “Stress is the outcome of facet of the assigned work role that caused harmful effect for individual. Occupational stress is considered as harmful factor of the work environment”. It also has unpleasant effects on health of an individual’s as David (2008) contributed “it can also be labeled as the harmful physical and emotional responses that occur when the requirements of the job do not match the capabilities, resources or needs of the workers. Job stress can lead to poor health and even injuring”.

According to Ilo (2006) “it is recognized world-wide as a major challenge to individual mental and physical health, and organization health”. Although stress includes both good and bad aspects but it is not necessarily bad. Robbins and Sanghi (2006) also contributed “stress is typically discussed in a negative context; it also has a positive gain”. Robbins et al, (2008) contributed the same “stress is not always negative or harmful and indeed, the absence of stress is death”. But it still has destructive impact on employee performance.

According to Usman and Ismail (2010)’ one of the affected outcomes of stress is on job performance” so it needs to be studied. Stress has also been viewed as an inevitable consequence of work life; or at most a health care issue. Neither viewed begins to capture just how costly this problem is to employers.

Some causes of stress to individual are domestic family factor, social/ people factors, sexual factors, mental and physical factors etc. research shows that stress interferes with human intellectual, emotional, and interpersonal functioning. In fact, nearly every popular training and organizational development initiatives is directly comprised by the intellectual, emotional and interpersonal consequences of stress.

The objective is to explore and understand the extent to which effect of stress affect workers efficiency and productivity in work setting. To investigate how the effect of stress affect on each employee influence management efficiently, and finally to suggest and recommend on ways in which managers can effectively address and handle causes of stress in the work setting to achieve the organizational productivity.

Therefore, effective and efficient stress management is relevant in a place of work, so that the effect of stress can be eliminated or reduced from public and private sector, especially amongst the staff of Ecobank Nigeria Plc Uyo.

1.2 Statement of the Problem

This study intends to find out the effect of stress on employee’s performance. Employees face a lot of physical and mental hazard on the job, which may cause them a lot of stress. Examples are family problems, finances, and other personal issues, and other times stress comes directly from work place. Some employees deal with so much stress on a daily basis that it can significantly affect their job performance, productivity and also their health generally.

Every employee has distinctive role or function to perform which are geared toward attainment of the overall organizations objective. And where the level of stress is high on the employee, the organizations objective may not be achieved.

Thus how to eliminate or reduce stress in order to increase day to day productivity and employee’s performance is important.

1.3 Objectives of the Study

The researchers’ primary objectives of embarking on this study are:-

To explore and understand the extent to which effect of stress affect workers efficiency and productivity in work setting
To understand the causes and influences of stress on workers performance
To investigate how the effect of stress on each employee influence management efficiently.
To suggest and recommend on ways in which managers can effectively address and handle causes of stress in the work setting to achieve the organizational productivity.

1.4 Research Questions

To act as a guide to a thorough investigation of this area of interest, the following research questions were asked:

Does working over hours have a negative impact on employee’s performance?
Does the organization pay worker on overtime to motivate them work well?
Does motivation contribute to employee’s job satisfaction?
Is there any means of controlling stress?
Does the organization consider how someone health is affected by the job?
Does delay in payment of monthly salary influence workers performance?
Are there obstacles outside the working environment that influence employee’s performance?
Does the staff of the bank cooperate and work as team.

1.5 Research hypothesis

To serve as a guide on this study, the following null (Ho) and alternative (Hi) hypothesis below was formulated.

Ho: The effect of stress on employee performance does not lead to inefficiency and low productivity.
Hi: The effect of stress on employee performance lead to inefficiency and low productivity.
Ho: Employee performance does not play a vital role in Organizational development.
Hi: Employee performance plays a vital role in organizational development

1.6 Significance of Study

The justification for conducting this study is to examine the effect of stress on employee’s performance in the public and private sector. It will help the employees to be aware of the symptoms of stress and its effects and avoid them whenever possible. It will help management and staff of Ecobank Nigeria Plc in formulating policy, which will help trainees in any organization to undergo different training to meet the challenges of their various job. It will help to provide valid information for future researchers.

1.7 Scope of the Study

This study is to examine the effect of stress on employee performance. Also, there are so many stress causing factors in the employee’s job environment. This research is limited to the following factors: job related, human related, self-inflicted, societal and cultural, mental and physical factors of stress. On employee performance and the management of Ecobank Nigeria Plc Uyo.

1.8 Definition of Terms

The following terms are defined in the specific sense in which they are used in the research work.

Stress:

This is a state or reaction of an employee which occurs when he can no longer meet the demand of his environment or situation where there are demands on an employee which exceeds or tax his adjustive resources.

Stressors:

This is any factor in the environment or outside it that affects employee work performance adversely.

Employee:

This refers to any person who works for another individual, person who works for another individual, person or company in returns for wages or salary.

Environment:

This means the external conditions and things that affect the development and existence of an individual organism group. It also means the act of surrounding or by surrounded.

Hazard:

Anything, be it human or otherwise that can cause or Constitutes danger or risk to another.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary

In this study, our focus was on effect of stress on employees’ performance in an organization using Eco Bank Uyo, Akwa Ibom State as a case study. The study specifically was aimed at exploring and understand the extent to which effect of stress affect workers efficiency and productivity in work setting, understand the causes and influences of stress on workers performance, investigate how the effect of stress on each employee influence management efficiently and suggest and recommend on ways in which managers can effectively address and handle causes of stress in the work setting to achieve the organizational productivity. A total of 35 responses were validated from the enrolled participants where all respondent are drawn from Eco Bank.

5.2 Conclusion

Based on the finding of this study, the following conclusions were made:

Working over hours have a negative impact on employee’s performance
The organization pay worker on overtime to motivate them work well
Motivation contribute to employee’s job satisfaction
There are means of controlling stress
The organization consider how someone health is affected by the job
Delay in payment of monthly salary influence workers performance
There obstacles outside the working environment that influence employee’s performance
The staff of the bank cooperate and work as team.

5.3 Recommendation

Based on the responses obtained, the researcher proffers the following recommendations:

First, an Employee Assistance Programme has to be introduced for early identification and intervention on problems so that performance levels will increase.
Organizations can also use few more interventions for stress management namely regular counseling sessions, time management and behavioural training, employee wellness program and sessions like art of living etc.
The management of the organization should invite employees, who think that they are being given jobs that are in contradiction with each other, and clarify their roles.

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