TOPIC

Job Stress and its impact on Employee Performance: A study

based on Banking Industry in Bangladesh.

WELCOME TO
MY
PRESENTATION
PRESENTED BY
KAZI MD. ZAHIR SADI
SN: 20121205037
Dept. of Management Studies
BSMRSTU.
INTRODUCTION
In the current work environment, stress is a common state of mind that is rapidly
growing among employees in any field. Stress not only results employee's mental
talents but also physical behavior producing in increased or reduced performance
efficiency.

The report thus was titled as “Job Stress and its impact on Employee Performance:
A study based on Banking Industry in Bangladesh”

During the past decade, banking sector had undergone rapid and striking changes
like policy changes due to globalization and liberalization, increased competition
due to entrance of more private corporate sector bank, downsizing, introduction of
new technologies etc. due to these changes the employees in banking are
experiencing high level of stress.
OBJECTIVES OF THE STUDY
The main objective of this study is to identify the factors that cause the job stress
and their impact over operational level employee’s performance working in
banking industry of Bangladesh.
Some specific objectives are:
 To study the theoretical aspects of stress.
 To measure the stress level or experienced by employees in banks.
 To make some recommendations for reducing stress from workplace to
enhance the overall performance of the employees.
Stress & its type
 Stress is a person’s physical and emotional response to change. It refers to
disturbed mental state that is sometimes positive and sometimes negative.
Positive stress leads to productivity and good performance whereas; negative
stress leads to employee dissatisfaction and poor performance and overall
loss of the organization.
 According to Taylor Shelley (1995) states that, there are four major types of
stress:
 Chronic stress
Chronic stress is the type that wears the individual down day after day and year
after year with no visible escape. It grinds away at both emotional and health of
the individual leading to breakdown and even death.
 Acute stress
This type of stress is the most common and most recognizable form of stress. It is
the kind of stress which the individual knows exactly why he is stressed.
Continue…..
 Traumatic stress
It is a severe stress reaction that results from a catastrophic event or
intense experience. Common symptoms of this type of stress are
flashbacks or nightmares about the trauma, avoidance of places and
things associated with the trauma, hyper vigilance for signs of danger
and irritability and tension.
 Episodic acute stress
She went further to explain episodic acute stress as where the
individual experiencing this type of stress lives are very chaotic, out of
control and they always seem to be facing multiple stressful situation.
They are always in a rush, always late, always taking on too many
projects, handling too many demands.
Symptoms of Stress
Stress Warning Signs and Symptoms
Cognitive Symptoms
● Memory problems
● Indecisiveness
● Inability to concentrate
● Trouble thinking clearly
● Poor judgment
● Seeing only the negative
● Anxious or racing thoughts
● Constant worrying
● Loss of objectivity
● Fearful anticipation
Physical Symptoms
● Headaches or backaches
● Muscle tension and stiffness
● Diarrhea or constipation
● Nausea, dizziness
● Insomnia
● Chest pain, rapid heartbeat
● Weight gain or loss
● Skin breakouts (hives, eczema)
● Loss of sex drive
● Frequent colds
Emotional Symptoms
● Moodiness
● Agitation
● Restlessness
● Short temper
● Irritability, impatience
● Inability to relax
● Feeling tense and “on edge”
● Feeling overwhelmed
● Sense of loneliness and isolation
● Depression or general unhappiness
Behavioral Symptoms
● Eating more or less
● Sleeping too much or too little
● Isolating yourself from others
● Procrastination, neglecting responsibilities
● Using alcohol, cigarettes, or drugs to relax
● Nervous habits (e.g. nail biting, pacing)
● Teeth grinding or jaw clenching
● Overdoing activities (e.g. exercising,
shopping)
● Overreacting to unexpected problems
● Picking fights with others
Causes of Stress
 Environmental Causes:
Environmental factors not only affect the functional growth and development of the
organization but also responsible for causing stress among individuals who work in various
organizations.
 Organizational Causes:
 Characteristics of the job
 Work-overload
 Role in organization
 Relationships at work
 Organizational structure
 Reimbursements and benefits
 Career development and Job security
 Work and home interface
Continue…..

 Personal Causes
events of personal life like divorce, death of loved one, hostile
environment of family, financial difficulties, personal health problem
have been considered as personal causes of stress
Effects of Stress
Major effects of stress can be classified as under:
 Performance: Stress adversely affects the performance of
individuals in an organization. It ultimately contributes low
productivity of the whole organization because the organization
works through these individuals.
 Change in Attitude: Employees who face highly stressful situation
constantly for a long period are bound to experience some
change in attitude. They develop negative thinking, low morale
and job dissatisfaction and fail to maintain friendly interpersonal
relation with co-workers.
 Withdrawal Behavior: The stress faced by employees also results in
behavior. As a result of this, it increases absenteeism, employees’
turnover and adversely affects the internal environment of the
organization.
Job stress & Employees Performance
Job stress
Jamal (1990) defined Job stress as an individual’s reactions to
features of the work environment that seem emotionally and
physically threatening.
Employees Performance
Employee's performance is the ability of the employees to work
effectively and efficiently in order to accomplish the organizational
goals and objectives
 METHODOLOGY
AREA OF THE STUDY
THE AREA OF STUDY IS SOUTHERN PART OF BANGLADESH WITHIN
PUBLIC AND PRIVATE COMMERCIAL BANK.
SAMPLE SIZE
THE SAMPLE SIZE OF THE STUDY CONSISTS OF 150 RESPONDENTS.
RESEARCH VARIABLES
THE STUDY IS BASED ON THE FOLLOWING THEMES;
INDEPENDENT VARIABLE: JOB STRESS
DEPENDENT VARIABLE: PERFORMANCE
 CONTINUE…..
CONCEPTUAL FRAMEWORK
 CONTINUE…..
HYPOTHESIS
H1: INAPPROPRIATE REWARD SYSTEM HAS A SIGNIFICANT IMPACT ON JOB PERFORMANCE.
H2: UNSUPPORTIVE SUPERVISOR HAS A SIGNIFICANT IMPACT ON JOB PERFORMANCE.
H3: UNCLEAR JOB HAS A SIGNIFICANT IMPACT ON JOB PERFORMANCE.
H4: OVERBURDEN HAS A SIGNIFICANT IMPACT ON JOB PERFORMANCE.
H5: THERE IS A SIGNIFICANT IMPACT BETWEEN JOB STRESS AND EMPLOYEE PERFORMANCE.
Results & Discussion
Correlation Test
Continue…..
It is identified that 8 variables out of 11 are found to be statistically
significant. Among them inappropriate reward system is a reason of
stress that has a great impact on employee performance and the
corresponding correlation coefficient(r) is 0.486. Poor reward system
leads to lack of interest in job. Unsupportive supervisor in work related
issues create stress that has an impact on performance and the
corresponding correlation coefficient(r) is 0.212. Late sitting has a
significant impact and the corresponding correlation coefficient(r) is
0.210. Unclear job tasks, Unrealistic deadlines, overburdened of work,
Frequent public dealings and Social life have also positive significant
impact on employee performance and the corresponding correlation
coefficient(r) are respectively 0.354, 0.238, 0.265, 0.420 and 0.194.
Hypothesis Testing
Hypothesis # 1: Inappropriate reward system has significant impact
on job performance.
Model Sum of Squares df Mean Square F Sig.

Regression 7.807 1 7.807 45.874 .000(a)

Residual 25.187 148 .170
Total 32.993 149

Table shows that there is a significant impact on employee

performance with a level of significance (0.000). Poor reward system is
a reason of stress that leads to lack of interest in job. So, poor reward
system decreases employee performance.
Continue…..
Hypothesis # 2: Unsupportive supervisor has significant impact on
job performance.
Model Sum of Squares Mean Square F Sig.
df
Regression 1.488 1 1.488 6.991 .009(a)

Residual 31.505 148 .213

Total 32.993 149

Table shows that there is a significant impact on employee performance

with a level of significance 0.009. Task accomplishment decreases due
to unsupportive supervisor. That means unsupportive supervisor
decreases employee performance.
Continue…..
Hypothesis # 3: Unclear job has significant impact on job performance.

Model Sum of Squares Mean Square F Sig.

df
Regression 4.127 1 4.127 21.159 .000(a)

Residual 28.866 148 .195

Total 32.993 149

Table shows that there is a significant impact on employee performance

with a level of significance 0.000. When job tasks are unclear then
employees are inefficient to perform. That means unclear job tasks lead to
decrease employee performance.
Continue…..
Hypothesis # 5: There is a significant impact between job stress and
employee performance.
Model Sum of Squares Mean Square F Sig.
df
Regression 13.741 11 1.249 8.954 .000(a)

Residual 19.253 138 .140

Total 32.993 149

Table shows that there is a significant impact of job stress factors on

employee performance with a level of significance 0.000. So, it is
cleared that there is job stress in banking sector of Bangladesh and job
stress is responsible for decreasing employee performance.
Recommendations
Individual Management:
Organize work plan and avoid multi-tasking.
Give up complaining and blaming.
Accept constructive criticism.
Find a fun way.
Engage socially.
Avoid alcohol, cigarettes, and drugs.
Continue…..
Organizational level
Create an effective and supportive relationship between employees and peers.
Find time every day for detachment and relaxation with family.
Take a walk around the office to keep body refreshed and alter.
Encouraging more of organizational communication with the employees so that there is no role
ambiguity/conflict.
Effective communication can also change employee views.
Managers can use better signs and symbols which are not misinterpreted by the employees. Encourage
employees’ participation in decision-making; this will reduce role stress.
Grant the employees greater independence, meaningful and timely feedback, and greater responsibility.
The organizational goals should be realistic, stimulating and particular.
The employees must be given feedback on how well they are heading towards these goals.
Encourage decentralization.
Supervisor should have to divide all the tasks among the employees equally.
Reduce personal conflict on the job
Give more control over the job to employees
Have a fair and just distribution of incentives and salary structure.
Promote job rotation and job enrichment.
Create a just and safe working environment.