The Influence of Job Stress on Employees Performance in Pakistan

Qadoos Zafar¹, Ayesha Ali², Tayyab Hameed^{3, *}, Toqeer Ilyas³, Hafiz Imran Younas³

¹Departmant of Business Administration, Preston University, Lahore, Pakistan

²Institute of Administrative Sciences, University of the Punjab, Lahore, Pakistan

³Hailey College of Commerce, University of the Punjab, Lahore, Pakistan

Abstract

The aim of this paper is to analyze the impact of job stress on employee’s performance in the industrial sector of Pakistan. For this purpose previous research literature was critically studied and data were collected through questionnaire survey 250 questionnaires were distributed among the customers of telecommunication service providers in Pakistan. The self-administered 250 questionnaires were distributed and 200 complete questionnaires were received at a response rate of 80%. Non- probability sampling techniques was used for the selection of sample. To study the impact of customer satisfaction in telecommunication sector Pearson product moment correlation and regression analysis was used. The finding of this study is that there is positive moderate relationship exists between job stress and employees performance.

Keywords

Employees Performance, Job Stress, Employee Commitment, Employee Turnover

Received: June 5, 2015
Accepted: June 13, 2015
Published online: July 20, 2015

@ 2015 The Authors. Published by American Institute of Science. This Open Access article is under the CC BY-NC license. http://creativecommons.org/licenses/by-nc/4.0/

1. Introduction

The human resource is the most vital component that influences the productivity in an organization. In this epoch of dynamic changes and intricacies, employees are rightly called the source of attaining and sustaining competitive edge of any organization. However, they suffer from numerous problems in their workplace and job environment which has serious implications for employee performance. Also, the outcome of stressful and dissatisfied employees cannot match the quality of work and performance as those employees with less stress and high satisfaction.

The research on organization behavior has greatly focused on job stress and the employee performance. These factors carry significant weight while determining organization’s overall outcomes and performance. Caplan et al. (1975) explains job stress which is any characteristics of work related environment that presents a threat to an employee. The stress is caused when an employee has an awareness of personal dysfunction, due to the perceived conditions in prevalent in the workplace, along with the physiological and psychological reactions to these undesirable events or threats in the employee’s workplace environment (Montgomery et al., 1996). There are often non-productive physical and emotional responses resulting when the requirements of the work do not match the skill, capabilities, resources or expectations of the worker (NIOSH, 2002).

Employee performance means that an individual successfully completes the tasks which are set by an organization, according to the predetermined standards along with the efficient utilization of resources in a changing environment. Nevertheless, during the course of the activities of formal employment, the employee may experience physical, psychological and social influences that can be quite stressful.

Stress can be positive (Eustress) or negative (Distress). Eustress results can be stimulating that enhances work performance and positively encourages workers to make efforts. Distress results in negative effects over worker’s health and performance. Employee performance is adversely affected by workplace stress (Fogarty, 1996). 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).

These vital organizational concepts have been explored in American studies; however, scant knowledge exists about them in various non- western regions. These studies illustrate that employee performance can be enhanced by improving job conditions and eliminating stress.

The studies on culture reflect that it may influence a number of organizational behaviors (Hofstede, 1991), thus, the impact of these variables on the o performance and behavior in other contexts must be analyzed because obtaining the information is important as an organization has significant commitment of time and resources and job stress can really under value the employee performance.

Comprehending job stress in a variety of settings especially in Pakistan would contribute to the profound knowledge of the said phenomenon in totality and would also be beneficial in dealing with its non-productive outcomes and dissatisfaction for a better performance at work.

The purpose of this article is to analyze the phenomenon of job stress and employee performance in the cement industry of Pakistan. The present study addresses the specific relation of the two variables of job-related stress and job performance since these constructs have not been comprehensively explored in the cement sector of Pakistan. This also would be informative to enhance performance on the part of the employees. This is also related to the improving the job satisfaction and job performance by reducing job stress. It is essential that the employees’ psychological aspects are to be looked into. Employers can create a safe and reduced stress environment to work.

2. Literature Review

Job stress is now from one of those topics, which have been discussed widely around the globe because it affects the employees’ mental capabilities, by which they are not able to perform and serve their organizations effectively (Hon, Wilco, & Lin, 2012). Job stress has direct contact with the job performance, in which job stress is an independent variable and employees’ performance is a dependent variable. However, job stress not only impacts the employees’ performance, but it can be the cause of versatile negative outcomes such as fatigue, less encouragement towards job, employee turnover, unfaithfulness and less punctuality (Glazer & Beehr, 2005). Stress at the workplace also minimizes the ability of decision making, because of this employees do not have enough motivation to take initiatives and make decisions by themselves.

Stress is not only linked to the mental capabilities or internal state of mind, but it also affects the employees’ behavior (Groen, Wouters, & Wilderom, 2012). Stress builds thoughts in employees’ mind, these thoughts can vary in the accordance of situation and environments. All of these thoughts processed in the mind, can be either good or bad, develops the attitude, and then behavior. Behaviors are actions and can be observed by others. That is why so many organizations heavily rely on motivational theories to release the stress of employees and to enhance the attitude towards initiatives. You can increase the employees performance by rewarding them what they are expecting (Latham, 2003). On the other hand, if employees’ expectations are not met, they will for sure move towards the negative behavior and their performance will decline because of stress.

Job stress can enhance the ability of employees as well (Hamlett & Media, n.d.). For example, when the manager makes the deadline shorter, due to stress employees will work hard day and night to perform well and achieve their organizational goals. Some of the organizations think that putting a reasonable amount of stress on employees can enhance the employees’ performance; however, these pressures can also demotivate employees and can cause dissatisfaction (Trivellas, 2013). Stresses in the workplace are caused by multiple interactions with people and the environment in which they are working; these job stresses lead them to negative mental states (Arshadi & Damiri, 2013). Mental state or thoughts are responsible for shaping our feeling and emotions, which can also change the physical state of the employee; that is why the stressed employees are mostly unhealthy (Jamal, 2005). An employee with bad mental and physical state is for sure not able to give his/her best at the workplace that is why his/her job performance will be affected as well.

In fact, employee must have to be secure about his/her job and should be satisfied with it, as everything revolves around employee’s job, so he/she gives value to it more than other factors (Khalatbari, Ghorbanshiroudi, & Firouzbakhsh, 2013). Job stress never let an employee to feel secure and satisfy from his/her job, which would not let the employee meet desired performance that he/she is capable of doing it. Anyone can observe that most of the employees have insecurity about their job, some get less salary, some are afraid of new changes like management or technology, and some are afraid of economic situations. All of these thoughts are causing stress and dissatisfaction in employees, which impacts the employees’ daily performances (Yaşlıoğlu, Karagülle, & Baran, 2013).

Employees’ job performance heavy depends on the job stress, satisfaction and motivation (Kakkos, Trivellas, & Fillipou, 2010). To deal with these issues like job stress, either employee has to change the environment or his/her attitude. Gradually after that the employees’ performance will start to decline because his attention will be diverted for changing other factors to cope with stress. For example, an employee does not have good relation with his colleagues, and to deal with that kind of stress he/she will focus on making them happy instead of giving his best to work, which will lower his job performance. ERP (employees relationship management) is been used for employees’ satisfaction ad their dignity; its basic function is to make interaction between employees’ performance and relations (Kuzu & Özilhan, 2014). By adopting this kind of strategic management for human resources, organizations can achieve different outcomes like better job performance.

3. Methodology

The self administered questionnaires were used in order to conduct this study. The questionnaires are circulated in the industrial sector of Gujranwala in Pakistan. The questionnaire comprises into two segments demographic in which Age, education, income level and occupation. The subjective section consists of Job stress and employee performance. Non Probability Random sampling is used to collect the data in which 250 questionnaires were distributed and 200 received at a response rate of 80%. The unit of analysis of this research was employees of the organizations.

4. Hypotheses

On the basis of above literature following hypotheses can be developed;

H1: There is a relationship exist between Job stress and Employees Performance.

H2: There is a difference of job stress on the age.

H3: There is no difference of job stress on the education.

5. Results and Discussions

Table 1 show that majority of the respondents aged between 20-30 years old (42.5%) and `all the data is taken from different sector and most of the data is gathered from education sector (50%). Most of the respondent represented the non managerial position (67%) of the organizations.

Table 1. Demographics.

Table 2. Correlation.

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

Table 2 indicates that the correlation between the job stress and employee performance are moderately (.515**) and highly significant related with each other with the significance value of (.000).

Table 3. Model Summary

Predictors: Job stress

Table 3 indicates that R=.515 shows 51.5% variation in job stress and employee performance. R Square is the coefficient of determination which shows that 26.5% total variation with its linear relationship of job stress and employee performance.

Table 4. ANOVA.

Dependent variable: Employee Performance

Predictor: Job Stress

Table 4 of ANOVA shows level of significance since the value of "P" is less than .05 so it is accepted that impact job stress and employee performance is highly significant. The value of f =71.53 shows that overall fitness of the model

Table 5. Coefficient.

Dependent variable: Employee Performance

In Table 5 A= .896 is the average of employee performances when the job stress is zero whereas .519 is the value of "beta" that indicates one unit increase of job stress will bring .424 unit increase in employee performance in the organization.

Employee Performance = .896 + .519 (Job Stress)

Above linear equation shows that one percent Job stress will bring 42.4% change in Employee performance.

Table 6. ANOVA.

Table 6 shows that the significant value is 0.023 which is greater than 0.05. It means that there is a significant difference between job stresses of different age groups.

Table 7. ANOVA.

Table 7 shows that the significant value is 0.367 which is greater than 0.05. It means that there is no significant difference between job stresses of different education groups.

6. Conclusion

Work related stress is a worldwide phenomenon which affects not only the employees but also affects the organization as well. Stress arises where there is lot of work and exceed from capacity of the worker. Presence of job related stress can either have negative or positive impacts on the employees and on the organization. Eustress which is also called positive stress is needed in the Pakistani context for the enhancement of employee’s performance because directive leadership is always play a significant role on the employee’s performance. The managers in Pakistan maintain the certain level of stress on the employees in order to increase the efficiency and effectiveness of employees. Negative effects can be hopelessness, depression, lack of self-esteem, reduced in productivity of employees, lower the motivational level, low determination at work and lack of job satisfaction. All of the above effects may result in lower commitment of employees with their organization, higher absenteeism, low morale, poor physical and psychological health and low motivational level. If stress not managed properly it would be harmful for the employees and as well as for organization and affects the productivity of the workers. Therefore stress management is necessary in the organization to resolve the stress.

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