Effect Of Employees Job Stress On Organisational Performance

Introduction

1.1 Background of the Study

According to Abolade (2018), the concept of stress is complex and dynamic. Undesirable levels of stress have a negative impact on the overall effectiveness of the company. Therefore, in order to work effectively, the organization or management must regulate the level of stress appropriately. To achieve this organizational objective, all stress-affecting factors must be correctly identified and measured.

There is no optimal level of stress for every individual. Positive stress adds anticipation and excitement to life, and we all thrive under a certain degree of stress. Our purpose is not to eliminate stress, but rather to master its management and reap its advantages. Therefore, it is essential for both individuals and companies to efficiently manage stress (Abolade 2018).

Establishing a high-performance organization is a popular topic in the training and development sector. In these competitive times, organizations cannot settle for less. Stress is one of the performance-driving factors that must be considered in order to build a high-performing organization. We are all aware that we live in a dynamic environment where change-related pressures are pervasive in society and the workplace. Every day, in our homes, jobs, marketplaces, churches, political gatherings, and while driving on the streets, we are confronted with a number of uncertainty (Vijayan, 2017). There is constant demand on employees to adapt to competitive challenges, organizational change, new difficulties, and the goal of better workplace efficiency and performance. All of these elements and more contribute to the job stress of an individual.

According to Robiins & Sanghi (2016), stress is a dynamic situation in which an employee or individual is provided with an opportunity, demand, or resource that is related to the individual’s desires and whose outcome is perceived as both uncertain and important. According to them, stress is connected with limitations, whereas demands are associated with a desired outcome. According to them, limitations prevent you from achieving your goals, whereas demands relate to something that is wanted. Historically, stress was viewed as an inevitable outcome of the workplace or, at best, as a health risk. Neither viewpoint represents the entire extent to which job stress degrades the cognitive, emotional, and interpersonal functioning of humans. In fact, the cognitive, emotional, and interpersonal effects of stress threaten virtually every popular training and organizational development initiative (Dean, 2015). Employers today pay greater attention than in the past to the effects of stress on their employees, especially senior management staff.

Globally, the association between stress and work performance is adequately explained. According to Dean (2015), work-related stress is the biggest cause of workplace inefficiency on a global scale. According to Folkman (2017), the effects of stress on organizational results include lower performance, increased absenteeism, and discontentment. According to study conducted by Eurofound in 2015, position ambiguity, organizational change, job expectations, bullying, and violence are all prevalent stresses in the workplace today. Sadly, the most vulnerable groups, such as low- or non-qualified personnel, the elderly, the disabled, migrant workers, and contract workers, are the worst hit (Mariam, & Chaudhary, 2015). Recent (2014) study in the United Kingdom indicates that 39% of job-related disability is caused by stress, depression, and anxiety at work.

According to the 2014 Australian Stress and Wellbeing Survey, more than half of Asia-Pacific respondents cited employment responsibilities as an impediment to maintaining a healthy lifestyle. Consistent with past findings, 72% of Australians said that their current stress was having some affect on their physical health, with 17% reporting that their current stress was having a substantial effect on their physical health (ILO, 2016).

Environmental stressors cause or contribute to occupational stress in Nigeria, where the majority of the world’s population works in a spirited setting (Vijayan, 2018). Typically, individuals are more concerned with the outcome of their work, which may affect how they interact with coworkers and customers. Today, work stress is more frequent, resulting in low morale among employees (Kaminyonge, 2018). Technology improvements, competitive lifestyles, and a range of other socioeconomic factors contribute to occupational stress.

1.2 Statement of the Problem

There are several businesses all around the world, but banks in particular are noticing an alarming increase in the negative effects that stress has on employee productivity (Henry & Evans 2008). In the quest for higher productivity, the majority of companies end up piling excessive amounts of work on their personnel in order to reach their deadlines. This can have detrimental effects, both psychologically and physically, on employees. It is possible that this will have the unintended result of achieving the exact opposite of what these organizations want to achieve (Obiora, & Iwuoha, 2017).

The empirical question of whether or not there is a connection between employee stress and productivity has not been answered. According to the findings of Ajayi (2018), there is a significant inverse association between occupational stress and the performance of workers in the banking business.

The research conducted by Abolade (2018) found that stress has a negative impact on the productivity of workers. Bewell, Yakubu, Owotunse, and Ojih (2014) state that the concept of work-induced stress and employees’ efficacy and productivity are inextricably related. However, Aasia, Hadia, and Sabita (2014) found that job stress had no affect on the performance of employees at their jobs. In addition, Ayaz, Alamgir, and Khan (2017) found that stress has a positive influence on the performance of corporations. There is a positive moderate relationship between job stress and employee performance, as indicated by research carried out by Bennett (2016).

The stress of one’s job comes at a heavy cost. It is horrible for the individual and harmful to the company at a time when it is more crucial than ever to keep costs down and make sure that employees are productive and healthy.
According to Robbines and Sanghi (2016), stress has been nicknamed the “health epidemic of the twenty-first century,” and businesses estimate that it costs them up to billions of naira each year to deal with the effects of stress. It has been shown that workers who are under a significant amount of stress suffer from hypertension, ulcers, irritability, difficulty making simple decisions, and maybe loss of appetite. It’s troubling to think about how all of these things will affect workers. As a consequence of this, there may be a rise in the rates of accidents, illnesses, absences from work, inefficiency, broken relationships with customers and coworkers, high staff turnover, early retirement for medical reasons, and even premature death. Due to the fact that these and a number of other challenges have sparked the question of whether or not stress should be avoided at all costs, companies have been faced with significant concerns as a result. Or, what measures has the organization taken to alleviate the strain of stress?

1.3 Objectives of the Study

The primary objective of this study is to examine the effect of stress level in employees performance: using Access bank, Abuja as a case study. Specifically but not limited to, other objectives of this study are:

To find out whether employees’ job stress affect organizational commitment.

To find out whether employees’ job stress affect organizational effectiveness.

To find out whether employees’ job stress affect organizational productivity.

1.4 Research Questions

The following research questions which are in line with the objectives of this study will be answered:

Does employees’ job stress affect organizational commitment?

Does employees’ job stress affect organizational effectiveness?

Does employees’ job stress affect organizational productivity?

1.5 Statement of Hypotheses

The following null hypotheses will be tested in this study at 0.05 significance level:

H01 : Employees Job stress does not affect organizational commitment.

H02 : Employees Job stress does not affect organizational effectiveness.

H03 : Employees Job stress does not affect organizational productivity.

1.6 Scope of the Study

This study will be focused on examining the effect of stress level in employees performance: using Access bank, Abuja as a case study. Specifically, this study will focus on finding out whether employee work pressure affects customer satisfaction, finding out whether working hours affects employee resource handling, finding out whether work load affects quality of service provided by employees and finding out whether job insecurity affects employee’s commitment.

1.7 Significance of the Study

The findings of the study may aid managers and staff members of Access Bank plc in selecting the most effective strategies for managing stress in the workplace. This contributes to the study’s relevance, which is why its conclusions are important. The outcomes of the study will aid workers in understanding how they might improve their job-related mental health without compromising their performance or productivity. That is to say, an organization may reduce stress in the workplace without really reducing the amount of work to be done by increasing employee autonomy or the confidence with which decisions are made. In addition to this, it will provide assistance to managers in the process of fine-tuning the administrative structure of their organizations in order to reduce the amount of stress experienced by employees and to protect the mental health of employees, all without compromising productivity. It’s possible that the findings may persuade businesses to place a larger focus not only on organizational structure and job design, but also on training, assistance, and counseling for their employees.
In addition to this, it will oblige firms to adhere to management standards, which will lead to a reduction in the number of employees who suffer from poor health. This will result in the establishment of a framework for measuring the degree of exposure to significant stressors in the workplace, and it will stimulate improved working conditions by highlighting areas in which management may take action. In addition, the study will be of use to academics and students who are interested in undertaking research on these current issues.

1.8 Operational Definition of Terms

Effect:

A change which is a result or consequence of an action or other cause.

Stress:

Stress is a feeling of emotional or physical tension. It can come from any event or thought that makes you feel frustrated, angry, or nervous. Stress is your body’s reaction to a challenge or demand.

Employee:

A person employed for wages or salary, especially at non-executive level.

Performance:

The action or process of performing a task or function.