EFFECT OF JOB STRESS ON THE RELATIONSHIP BETWEEN EMPLOYEE PERFORMANCE AND FIRM PRODUCTIVITY

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EFFECT OF JOB STRESS ON THE RELATIONSHIP BETWEEN EMPLOYEE PERFORMANCE AND FIRM PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

It has been acknowledged that job stress plays a role in employee performance. This nation has its root in what is called attention theory. Simply put attention theory asserts that the experience of stress has the effect of reducing on individual ability to concentrate on multiple tasks. Anyone who has worked feverishly to meet a deadline understands this relationship intimately. It has been “standard fare” in basic management training to point out that there exist some optimal level of stress below which employees are unmotivated and above which they are over whelmed. Unfortunately managers who attempt to find an optimal stress level for their work group frequently find their effort inconsistent result or downright negative results.

Stress is a universal element and persons from nearly every work of life have to face stress. The universality of stress is such that it is experienced by employees all round the globe and has become a major problem facing employers, particularly in developing nation where the employers do not realize the impacts of stress on employee productivity.

The work place stress is indeed a costly epidemic, Rebecca Maxan in her article published by FDU magazines in 1999 noted that three out of every four American employees described their work as stressful and the problem is not limited to those shores, in fact occupational stress has been defined as a “global epidemic” by the united nations international labor organization.

Stress is a factor in every one’s life. Particularly during major events such as marriage divorced or buying a home. But according to the Holmes-Rachs life event scale, which rates the level of stress caused by such event, many of the most stressful events are related to the work place firing business re adjustments, change in financial status line of work, trouble with the boss, varieties in work hours or conditions retirement and vacations.

Surprisingly, stress is not always a bad thing. It can stimulate creativity and productivity. According to Robert Osterman, professor of psychology at FDUS Tecnneck-Hackensack campus, “No one reaches peak performance without being stressed whether an athlete, an office worker or a manager” the natural pattern of human behavior is to experience a stress-causing tension and then return to a normal realized state. The problem occurs when stress is so over whelming or constant that this pattern is broken and that is to say that stress leads to old age. An internationally applicable measure of occupation stress develop by Osterman, named SWS for Situation (s) work (w) and self (s), encompasses all three dimension because Osterman says survey that only look at work factors are not giving the full picture” for factory employees, stress such as dealing with dangerous heavy equipment or working in an uncomfortable environment in contrast office employees are more likely to experience stress that is related to interpersonal relationship on job “people pressures” such as under supervision, tension among team members and fear aversion of conflict can cause stress “for many people, the core of their social life is the people with whom they work with” explains Ostermam” but work is not a socio situation to good relationship such as rumors and power play among executive who are comparing for the next promotion”.

Occupational stress is not related only to what goes on at work conflicts between the demands of the work place and of home life are increasingly common. According to a survey completed for the US department of labor, ten percent (10%) of people who are married or living with children less than 18 years experience several work-family conflicts and an additional twenty five percent (25%) report moderate levels of conflict. Definitely, every problem has a corresponding solution, hence some techniques can be implemented to prevent or reduce excessive stress. These techniques and their implementation constitute the process involved in stress managements.

1.2 STATEMENT OF THE PROBLEM

Most organizations attain high performance by saddling employees with overload of work in order to meet deadline and this has psychological and physical effects on the employees which sometimes results to something contrary to what these organizations want to achieve. Even though organizations are paying more attention now to employees compared to the past, the consequences of the trauma their employees go through cannot be over emphasized because they still place extra-ordinary demands on them to deliver. To meet the objective and to generate enough revenue to be self-sustaining and to be able to fund the acquisition of modern equipment to meet efficient service provision and optimal employment of resources, there has been the need for a continuous change in management strategies and administration, and the demands on employees to perform have been increasing. This has brought a lot of pressure on the employees who are expected to deliver a world class service without the corresponding increase resources and training, yet those who fail to deliver are threatened with dismissal and other forms of punishment. With jobs very difficult to come by these days in Nigeria, many employees are crumbling under this pressure. Cases of employee stress are therefore on the ascendancy.

There has been increasing amount of talk about “employees stress” over the decades.. This research is aimed at understanding and bringing out an encompassing view of stress and its relationship with employees performance and firm productivity. The researcher thus will give an over view of work stress, productivity and their inter-relationship in an organization. Hence, the effects of stress on employees’ productivity. Lawal (2006:10) this is the type that leads to anxiety depression, frustration, fatigue and low self-esteem.

Behavioural effects: This is the type that leads to accident proneness, substance abuse impaired speech, restlessness and forgetfulness. Cognitive effect: this is the type of stress effects that affects our through process lead to difficulty or fear of meaning discussion forgetfulness hypersensitivity mental blocks and difficult concentrating and thinking clearly and this may be intensified by substance abuse.

1.3 OBJECTIVE OF THE STUDY

The study is aimed at indept analysis of the work place stress. Hence, understanding its effects on productivity.

Therefore the objective of the study include:

1. To have in dept understanding about work stress

2. To know the various types of stress

3. To evaluate the negative effects of stress on employees

4. To evaluate the positive effects of stress on employees

5. To understand how stress effects productivity

6. To understand the various strategies and method of effective stress management.

1.4 RESEARCH QUESTION

The questions that will asked in this research to enable collection of the required data for the study will include:

1. Is stress a necessary condition for the attainment of optimum productivity?

2. Does stress encourage productivity in organization?

3. Does high stress beget high productivity or otherwise?

4. Does low stress beget low productivity or otherwise?

5. Does mild stress have a negative effect on employees’ productivity?

6. Does mild stress have positive effect on employees’ productivity?

1.5 SIGNIFICANT OF STUDY

1. This study will be of great use to students who want to know about the topic.

2. It will also serve as a reference material for future study

3. This study will enlighten managers in all field of work and employees all round the globe to add knowledge on this that is studied

4. It will widen the horizon and increase the level of understanding on the effects of stress in the area of study,

1.6 SCOPE OF THE STUDY

The researcher narrowed down the study to a particular organization, Zenith Bank, Maitama branch, Abuja.

1.7 LIMITATIONS OF THE STUDY

Definitely the study is not without limitations, the limitations includes the following

1. TIME: among all, time is the highest possible limitation to the study. The time available for the study was limited the horizon to which the researcher may wish to expend the study. He will confine all his activities within the given time available for the research.

2. FINANCE: the fact that the researcher is still a student who has no external financial assistance; he was faced with financial challenge. The researcher is still a student and has no external financial support from any institution, this limit the extent he may wish to carry the research as he will not exceed his financial capabilities.

3. QUESTIONNAIRE ADMINISTRATION: in the cause of administering the questionnaire, the researcher was not be given adequate attention. This posed a challenge to the efficacy of the study.

4. LEVEL OF LITERACY OF RESPONDENTS: in the area of study, majority of the employees are just SSCE holders, this posed some limitations to the researcher as it limited the questions to the level they can possibly answer.

1.8 DEFINITIONS OF TERMS

1. STRESS: a physiological and emotional response to stimulate that which places physical or psychological demands on an individual.

2. STRESS MANAGEMENT: this refers to the wide spectrum of techniques and psychotherapies aimed at controlling a person’s level of stress, especially chronic stress for the purpose of improving functionally on daily basis.

3. MANAGEMENT TECHNIQUES: these are special methods and procedure professionally designed for application to managerial problems by manager in their managerial functions and duties.

4. PERFORMANCE: this refers to individuals output at a work place.

5. PRODUCTIVITY: this refers to an organization output calculates thus total production per total input calculated thus: total production per total input (man, materials, money and machines).

6. EMPLOYEE: individual employed to work in an organization or any given business establishment.

7. PSYCHOTHERAPIES: these are techniques or procedure that is used as palliatives to any mental emotional or behavioral disorder like those caused by stress.

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