THE IMPACT OF
WORK RELATED STRESS AND ORGANIZATION COMMITMENT ON EMPLOYEE PERFORMANCE

BY

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ADAM KHAN

ROLL NO.

 

 

 

 

 

 

 

 

 

SUBMITTED TO

Mr. ADIL SALEEM

 

 

INSTITUTE OF BUSINESS STUDIES AND LEADERSHIP

ABDUL WALI KHAN UNIVERSITY MARDAN

Introduction

In this 21st
century, there is a lot of competition within the society, every individual
person is striving hard to perform his duties well within the organization, in
order to have good results due to this increased competition every person or
the employees who are working in different organizations are fully stressed due
to the pressure incorporated by their senior managers or directors (Gomes,
2012). Competition within in the market has led the employees to work
efficiently in accordance with the set of policies set forth by the
organization. Mostly the employees are working under highly stress-full
environment which makes their mind exhausted and also puts bad impact on their
physical and mental health (Imilia, 2012). Work related stress is a form of
stress which is confronted by the working class of the society who are working
in different sector organizations. Work related stress is now globally accepted
by the people belonging to different countries, sects cast and creed as it is
affecting all professions and all
types of workers, as well as families (Judge, 2012). Stress has been observed
to affect its victims in a variety of ways.

Workforce has been seen with
problems with work efficiencies, performance is greatly destroyed, and mistakes
are quite common and often lead to expensive mistakes. Health related issues
have been observed to cause financial and time related losses to both the
employer and employee (Kabir, December-2011). Each accident because of stress
not only causes financial loss that organization at that given time interval
but also affects its public image, which puts a negative impact on future
business opportunities. And even the loss of a skillful worker absent because
of a stress related accident causes the employer to waste time which is very
essential to any organization as time translates to money. Health related costs
are even more among stressful workforce (Kramer, 2012). This research focuses
on the conditions and factors responsible for work-related stress and also
discusses that how an employee’s performance is affected by stress in an
organization.

This type of stress overload can
lead to the physiological and psychological problems. The reactions which are
the result of the chronic stress are more dangerous and severe as compared to
the results of the acute stress because of the manner the body gives reaction
and responses to the stress. Stress creates demands that construct an imbalance
in the body’s energy supply that is challenging to reestablish or restore. The
body responds with a special physiological response in order to restore the
discrepancy, commonly stated to as the stress response. Stress can lead to
illness, high blood pressure, heart diseases, and
psychological damage and employees get so much disturb and are unable to perform
well, there are a lot of problems which are faced by the employees which are
the outcomes due to stress.

Problem
Statement

Keeping in view
the foundation of the study, the problem statement is: To study the phenomenon
of work-related or occupational stress among the employees of the banks of
Rawalpindi Islamabad and Abbottabad.

Rationale of Study

Work-related stress is an advanced phenomenon in corporate world.
The study has witnessed and analyzed that which level of stress is useful for
the employees’ i.e. stress of low level, medium level, or stress of high level.
Another reason for conducting this research is to check that how employees’
performance in an organization is affected by work-related stress. And what are
the terms, conditions which affect the behavior and overall performance of an
employee working in an organization. This research emphasizes the positivity
and the negativity of the stress named as wok related stress and also
encounters the health issues faced by the employees who are working under
stress.

Purpose of Study

The
basic objective or the purpose of this study is to observe and analyze that how
a new form of stress i.e. work-related stress is affecting employees and
organization. This research has clearly depicted that feeling stressed out at
the work place is not restricted to the specific occupations or the levels
within the various organization. Each employee reacts in a different
perspective and under different circumstances, situations and times. In 1995 a
survey was conducted by HSE which encountered the aspect that there are
millions of people who are suffering from stress, depression, nervousness, hopelessness panic outbreaks
or panic attacks, headaches, high blood pressure which is made even worse due
to the work done under stressful environment.

Research Statement

The research statement is “Effect of work-related stress on
employees’ performance”.

Research Questions

Keeping in view the research statement, the questions to explore
are:

How
work-related stress affects employees’ performance in an organization?
What are
the key factors and conditions which creates a stressful scenario for
employees in a working environment?
What are
the negative effects of work-related stress on employees’ performance?

Research
Objectives

 

Following are the objectives of this study:

To find
how an employee’s performance is affected by stress i.e. work-related
stress?

 

To find
how the employees’ performance decreases with varied levels of stress in a
working environment?
To find
the factors that contributes in creating a stressful working environment
for employees?
To seek
how work-related stress can be minimized?

 

Literature Review

Work Related Stress

Researchers have done a lot of research on the work related stress
in order to signify its positive and negative points which can affect the
employee or any individual working in the organization in one way or the other.
There is an Increase in the percentage of absenteeism because of the high
percentage of stress level employees are facing on daily basis which throw a
negative impact on them as well as on their health (Mead,
2000). Work related stress or the occupational stress is further encountering
four main categories which depicts their relationship with the employee and
under what conditions the employee is being affected.at first, the major point
is the working conditions or the environment under which the employee is
supposed to work, inadequate working hours which makes the employee fully
stressed out, inappropriate remuneration plans, discrimination within
the organization can also be a major reason for the increase in the level of
stress, with the discrimination safety is also regarded as most particular
issue which is not taken into account in many organizations (Angle , 1994).
Secondly, relationships with the staff, peer group, subordinates and managers
are a point of concern. Good and valuable relations within the organization
give a positive environment to the employee which increases his level of
competence. Bad relations tend to divert the performance of an employee towards
stress and poor productivity (Baran , 2013). Thirdly undefined duties, roles
and undefined work within the organization is again another vital aspect of
stress which can never be ignored as it confuses the individual regarding his
actual job details ( Bolon , 1997).

At last, the communication gap between employees and senior
professionals is a matter of consideration and also the policies which are
implemented within the workplace, culture and importance of employees in
decision making process well define the structure of that particular
organization (Evelyn Kortum, 2000). Other than all these four factors there is
another factor which clearly depicts the level of stress the employee is facing
during the work and that are nature and the type of the job which can lead the
employee towards a lot of tiredness and exhaustion
(Evelyn Kortum, 2010).

Four
different perspectives were also given by Beehr and Franz (1987) regarding the
occupational stress which signified that under what circumstances and
situations the work related or occupational stress can be approached. (1)
Organizational psychology (2) medical (3) clinical counselling (4) engineering
psychology. The distinctive feature of the medical is to ensure that how much
the health of an employee is affected in one way or the other through stress
and what level of percentage is contributed in the health and illness of the
individual. The clinical counselling approach determines the impact of stress
over the minds of people and how their mind is affected because of the stress
they are facing on daily basis. This approach also elaborates to highly
stressful environment which gives birth to depression, anxiety and poor
performance.

  Beehr and Franz (1987) also pointed out that,
as compared to the other approaches this approach is inclined towards treatment
rather than the research. Engineering psychology elaborates that how there is
an increase in the level of stress because of the physical working conditions,
this might include the nature and the pace of work the employee is dealing with
on routine basis. Organizational psychology encounters two basic concepts,
relations and interactions of employees with their seniors and other staff
mates and the environment under which they are working.

In this 21st century it has been proven that
because of the enhancement in trade, new and innovative production techniques,
there is an increase in the percentage of stress because changes in
technologies give a rise to increased competition within the market (Salancik
& Pfeffer, 1977). Due to this increased competition the structure of the
job as well as the nature of the jobs are changing which diminishes the
capabilities and the skills of the employees and also gives a negative impact
over the security of the employees (Baker and Karasek,1995; Baker and
Schottenfeld, 1995). Every factor which can affect the employee in one way or
the other should be under proper consideration and thought for example his mind
setup, psychological profile of an employee, relations with the staff members,
subordinates, supervisors and senior managers, nature and type of the job which
encounters the physical conditions of the work such as level of noise and
poisonous disclosures (Elo, 1994). Mind stress or the mental stress was first
recognized for workers compensation in 1960s and 1970s. It was later found out
that 75 percent of absenteeism of employees was due to the increase in the
level of stress.

Research
Methodology

3.1 Type
of Study

This type of study is termed as the quantitative study. The data
for this particular study was generated through the questionnaires. This
research was conducted in the field in order to verify and check the
relationship between work related stress and employees performance, the work
related stress is working as an independent variable and the employee’s
performance as the dependent. Furthermore, the indicators of the employee’s
performance properly illustrate its affected zone because of the stress at
work. The indicators of employee performance are work satisfaction and
organizational commitment. This particular research is cross sectional for the
reason that the data is gathered at one definite point of interval in a period
of four months.

3.2 Population
and Sample

The banking sector is chosen for
this study, because this sector is regarded as the most convenient and
appropriate sector for the collection of data. One of the other reason for
selecting this sector is that the supervisors and the senior managers of the
banks have uninterrupted and direct relation with their staff members,
subordinates and the workers etc. And they are also capable of giving the
feedback to their subordinates on daily basis. The unit of analysis for this
particular research are the individuals of the bank, individuals encounters the
relationship of supervisors and the subordinates, supervisor facilitates the
employee outcomes; task performance and their level of organizational
commitment along with their own moral competence (Kim & Kim, 2011). Work
related stress has significant and large effect on the employee’s performance
(R. Anderson, 2003).While collecting the data, the major characteristics of the
employees that have been addressed includes gender, age, education and
designations or departments and the management level. These levels are
addressed in order to verify and seek the results on individual basis, and in
order to examine the effect of work related stress on each management level
that is: upper, middle and lower.

3.3 Sampling Technique

The most suitable technique which has been chosen for
this particular research is the convenient sampling as this technique is
regarded as the most suitable and appropriate in order to collect the data.
Leedy (1993) satisfied the researchers that the convenience sampling is the one
in which the sample is selected according to the obtainability of the
researcher. For the purpose of this adequate research, the
convenience sampling is being used to gather data from the banks of Pakistan
(Rawalpindi, Islamabad, and Abbottabad). This specific type of sampling was
adopted because of the lack of time and adequate resources.

3.4 Data Collection Technique

The data for this research is collected with the help of
questionnaires; there were total 300 questionnaires which were circulated with
in the branches of the banks in order to collect the adequate result.

3.5 Reliability of Instrument

In order to
verify and check the reliability of the,
Cron bach Alpha reliability statistic has been used in order to check the
data for internal constancy. One of the most popular reliability statistics in
today use is Cronbach’s alpha (Cronbach, 1951). The reliability estimates were
all greater than 0.6 which is appropriate for further statistical analysis
(Sekeran, 2005). The results are given in table below

Variable

Cronbach?

No. of Items

Work related stress

0.906

55

Organizational commitment

0.811

10

Work satisfaction

0.800

15

 

 

Results

Descriptive
Statistics

 Table 4 depicts the descriptive statistics
(means and SD).The mean for work related stress is 3.541(SD =0.2888),
organizational commitment 2.9080(SD =0.49290), work satisfaction 3.0047(SD
=0.45231).

Table:  Mean, Standard
Deviations and Correlations of Variables of Interest

    

                                                             

                                      
Mean      SD

           1

    2

     3

        

 
1. Work Related Stress

 

 
 3.541         0.2888

       

 

 

 

 

 

 

 

 

 

 

2. Organizational Commitment

2.9080       0.49290

                        – 0.204**

 

 

 

 
 
3. Work Satisfaction

      
   
3.0047      0.45231
 

     
     
        -0.204** 

 
 
0.384**

                               

 
  

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

**. Correlation is significant at the 0.01 level
(2-tailed).

The bivariate
correlation analysis

 

The
bivariate correlation analysis disclosed that work related stress has strong
significant negative correlation with employees performance (organizational
commitment)  (r = -0.204, p

x

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