THE EFFECT OF EMPLOYEES JOB STRESS ON ORGANISATIONAL PERFORMANCE (A CASE STUDY OF ACCESS BANK AGBOR BRANCH, DELTA STATE)

THE EFFECT OF EMPLOYEES JOB STRESS ON ORGANISATIONAL PERFORMANCE (A CASE STUDY OF ACCESS BANK AGBOR BRANCH, DELTA STATE)

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CHAPTER ONE

INTRODUCTION

Background of the Study

According to Abolade (2018), stress is a multifaceted and dynamic concept that impacts individuals and organizations differently. Excessive stress caused by unforeseen circumstances can reduce a company’s overall efficiency. To function effectively, organizations must adopt strategies to manage stress appropriately. Achieving this requires accurately identifying and addressing the factors contributing to stress. Interestingly, there is no universally optimal level of stress suitable for everyone. Constructive stress can bring excitement and anticipation, with research indicating that people often perform better under certain levels of stress. The goal is not to eliminate stress entirely but to manage it effectively and harness its potential benefits. Therefore, both individuals and organizations must prioritize efficient stress management to enhance productivity and well-being (Abolade, 2018).

The concept of building high-performing organizations is often central to discussions on training and development. In today’s competitive environment, businesses cannot afford mediocrity. Stress is one of the key factors influencing performance in organizations. Modern workplaces are characterized by constant changes and pressures, such as societal demands and evolving work environments. Employees frequently face uncertainties at work, at home, and even in public spaces, all of which contribute to stress (Vijayan, 2017). As organizations adapt to new challenges and competitive pressures, employees must align with these dynamics to achieve higher levels of efficiency. However, such pressures can significantly impact stress levels and, consequently, job performance.

Robbins and Sanghi (2016) define stress as a dynamic condition where an individual encounters opportunities, demands, or resources linked to personal goals, but the outcome remains uncertain and critical. They distinguish between demands and constraints: demands are objectives or tasks to be achieved, while constraints are barriers preventing the attainment of those goals. Historically, stress was viewed either as an inevitable part of work or as a potential health hazard. These perspectives, however, fail to fully capture the cognitive, emotional, and interpersonal impairments caused by job-related stress. Dean (2015) notes that stress significantly threatens training and organizational development initiatives, as its effects can undermine the functioning of employees, particularly those in senior management. Globally, stress is recognized as a significant factor influencing workplace performance. Dean (2015) identifies workplace stress as the primary contributor to inefficiency on a global scale.

Similarly, Folkman (2017) highlights its adverse effects, including decreased performance, increased absenteeism, and employee dissatisfaction. A 2015 Eurofound survey identified common workplace stressors such as job insecurity, organizational changes, high job expectations, bullying, and violence. Vulnerable groups, including older adults, persons with disabilities, migrant workers, and contract employees, are disproportionately affected by these stressors (Mariam & Chaudhary, 2015). The 2014 UK study found that stress, depression, and anxiety accounted for 39% of all work-related impairments. Similarly, the 2014 Australian Stress and Wellbeing Survey revealed that over half of respondents from the Asia-Pacific region cited work responsibilities as barriers to a healthy lifestyle. Furthermore, 72% of Australians reported that stress adversely affected their physical health, with 17% indicating significant effects (ILO, 2016).

In Nigeria, where many work in highly competitive environments, occupational stress is often exacerbated by environmental stressors (Vijayan, 2018). Employees’ focus on achieving results frequently impacts their relationships with colleagues and clients. The rising prevalence of workplace stress has negatively affected employee morale (Kaminyonge, 2018). Socioeconomic factors such as rapid technological advancements and increasingly competitive lifestyles contribute to occupational stress, underscoring the need for organizations to adopt proactive stress management strategies.

​​​​​​​Statement of the Problem

There are many companies located all over the globe, but banks in particular have seen an alarming rise in the detrimental impact that stress has on the productivity of their workforce (Henry & Evans 2008). In an effort to achieve better levels of productivity, the vast majority of companies end up overloading their workforce with unnecessary quantities of work in order to meet their targets for delivery on time. Employees' emotional and physical well-being may suffer as a result of this circumstance. There is a chance that this will have the unintended consequence of accomplishing the very opposite of what these groups seek to do (Obiora, & Iwuoha, 2017).

No conclusive evidence either way has been found to address the empirical issue of whether or not there is a link between employee stress and productivity. A substantial inverse correlation exists, according to the results of Ajayi (2018), between occupational stress and the performance of workers in the banking industry.

According to the findings of study carried out by Abolade (2018), occupational stress has a detrimental effect on the productivity of workers. According to Bewell, Yakubu, Owotunse, and Ojih (2014), the idea of work-induced stress and the effectiveness and productivity of employees are intimately linked. However, Aasia, Hadia, and Sabita (2014) discovered that the performance of employees at their occupations was unaffected by the stress that they experienced at job. Ayaz, Alamgir, and Khan (2017) discovered that stress had a favorable affect on the performance of businesses, which supports the findings of the previous researchers. According to the findings of study that was carried out by Bennett, there is a positive moderate association between job stress and employee performance (2016).

The stress that one experiences on the job comes at a high price. At a time when it is more important than it has ever been to keep costs down and make sure that employees are productive and healthy, it is destructive to the business as well as the person, and it is particularly awful for the individual.

According to Robbines and Sanghi (2016), stress has been dubbed the "health pandemic of the twenty-first century," and companies estimate that dealing with the impacts of stress costs them up to billions of naira per year. Workers who are under a large level of stress have been proven to suffer from hypertension, ulcers, irritability, trouble making basic judgments, and maybe even lack of appetite. It is unsettling to contemplate the ways in which all of these factors will influence workers. As a result of this, there is a possibility that there will be an increase in the number of incidents involving accidents, illnesses, absences from work, inefficiency, broken relationships with customers and coworkers, high staff turnover, early retirement for medical reasons, and even premature death. Companies have been put in a difficult position as a direct consequence of the fact that these and a number of other issues have generated the question of whether or not stress should be avoided at all costs. The answer to this question has important implications for businesses. Or, what steps has the organization made to reduce the negative effects of stress on its employees?

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:

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

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

3. 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:

1. Does employees’ job stress affect organizational commitment?

2. Does employees’ job stress affect organizational effectiveness?

3. 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:

H0 : 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, Agbor 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 results of the research are likely to be helpful to managers and staff members of Access Bank plc in choosing the stress management measures that are likely to be the most successful in the workplace. Since of this, the results of the research are quite significant because they add to the study's overall significance. Workers will benefit from the findings of the research by gaining a better knowledge of how they might enhance their job-related mental health without negatively impacting their performance or productivity. That is to say, an organization may be able to reduce stress in the workplace without really reducing the amount of work that needs to be done by increasing employee autonomy or the confidence with which decisions are made. This is something that can be achieved by increasing the confidence with which decisions are made. In addition to this, it will provide aid to managers in the process of fine-tuning the administrative structure of their firms in order to decrease the amount of stress faced by employees and to safeguard the mental health of employees, all without sacrificing productivity. It is feasible that the results may inspire firms to put a stronger emphasis not just on organizational structure and job design, but also on training, help, and counseling for their employees. This would be in response to the findings.

In addition to this, it will make it mandatory for businesses to comply to management standards, which will ultimately result in a decrease in the number of employees who are afflicted with bad health. This will result in the construction of a framework for evaluating the degree of exposure to key stressors in the workplace, and it will encourage better working conditions by emphasizing areas in which management may take action. Both of these outcomes are desirable. In addition, scholars and students who are interested in doing further research on these contemporary topics will find the study to be of benefit to them.

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.

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