Effect of Stress on Employees Performance

CHAPTER ONE

INTRODUCTION

Background to the Study

Many organizations in the world are witnessing an alarming increase of the negative effects of stress on employee’s productivity (Attah, 2016). In today’s work life, employees are generally working for longer hours, as the rising levels of responsibilities require them to exert themselves even more strenuously to meet rising expectations about work performance (Dwamena,2012). Chabra (2010) and Cole (2004) also outlined that management in today organization creates ‘will to work’ which is necessary for the achievement of organizational goals. This eventually makes stress an unavoidable consequence of modern living.

Stress is defined by Robbins and Sanghi (2006) as 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. In the context of work, Omolara (2008) described work related stress as the adverse psychological and physical reactions that occur in an individual as a result of their being unable to cope with the demands being made on them. Stress in organizations affects both the individual and the organization. Stress can be positive (Eustress) or negative (Distress). Eustress results can be stimulating, thus enhancing work performance and positively encouraging workers to make efforts. Distress results in negative effects on workers’ health and performance. Employee performance is adversely affected by workplace stress. This in turn reduces the effectiveness of the employees and organization (Jimmieson et al., 2004). Such job stress often results in workplace accidents (Moore, 2000).

In Griffin's (2005) view, stress is not all bad because in the absence of it, we may experience lethargy and stagnation. Thus, without challenges and pressures, work would lack sparkle. While the argument can be made that some stress is healthy in motivating us and adding the needed pressure to get things done, there is no arguing the fact that excessive and prolonged stress generally becomes quite negative. This is because stress is a condition of strain that has a direct bearing on emotions, thought process and physical conditions of a person (Jayashree, 2010)

Stress exists in every organization either big or small because the work places and organizations have become so much complex. This related work place stress has significant effects over the employees’ productivity, and the organization at large (Anderson, 2003). In every organization and at every level of management, an elevated average level of stress is to be found which mostly has an effect on employee’s productivity. According to Rose (2003),employees have tendency towards high level of stress regarding time, working for longer hours which reduces employees urge for performing better. In fact, stress is much more common in employees at lower levels of workplace hierarchies, where they have less control over their work situation (Beheshtifar & Nazarian, 2013). The banking sector is no exception.

The banking sector is under a great deal of stress and due to many antecedents of stress such as work overload, role ambiguity, role conflict, responsibility for people, participation, lack of feedback, keeping up with rapid technological change, being in an innovative role, career development, organizational structure and climate, and  recent episodic events (Bashir, 2010).

In Ghana several banks have entered the economy which have made this sector a very competitive one. To be able to gain a major portion  of  the market  share,  the  banks  have  to  increase  their  profitability,  market  share and efficiency which have led to more mergers and acquisitions. Due to intense competition in the banking industry, management impose multitasking upon their employees to cope with the recession and cut costs. Posing strict deadlines, requiring them attend meetings in very short notice, forcing them to work late hours and making them prone to cut-throat competition and mounted work lead to stress and anxiety. Workers may show signs of fatigue, absenteeism, and low morale (Moten,2009). This eventually affects productivity.

Bashir (2010) stated that one of the affected outcomes of stress is on employee productivity. The productivity of an employee at his/her workplace is a point of concern for every organizations, irrespective of all the factors and conditions. According to Qureshi and Ramay (2006), employees are considered to be very important assets for their organizations.

Chryssolouris (2006) also asserted that the productivity of employees has always been an important aspect for an organisation. This is due to the fact that employees productivity may partially track the progress of an organisation in terms of performance over a long period of time and may provide useful indications about whether the objectives of the organisation have been met or not. A good performance of the employees of an organization leads towards a good organizational performance thus ultimately making an organization more successful and effective and vice versa (Armstrong & Baron, 1998).

Statement of the Problem

Stress management has become an additional problem which employees in the banking sector have to cope with in view of the nature of their jobs. Dwamena (2012) stated that, most organizations with the aim of attaining higher productivity end up saddling employees with overload of work in order to meet deadline, and this might have psychological and physical effects on the employees. This may result in something contrary to what these organizations want to achieve.

In addition, the introduction of Financial Sector Adjustment Programme in 1994 and Computers in early 2000 has also brought hardships on the workers of the various banking institutions, in the sense that it has increased the job description of the individual bank worker, and retained workers had to do extra work to meet the requirements of the bank status (Bentil, 2009). Banks give targets to their employees to meet within a certain limited time, which is a burden to the workers and therefore increase their level of stress.