IMPACT OF OCCUPATIONAL STRESS ON EMPLOYEE PRODUCTIVITY

CHAPTER ONE

INTRODUCTION

• BACKGROUND TO THE STUDY

Occupational Stress occurs in a wide range of work circumstances but is often made worse when employees feel they have little support from supervisors and colleagues and where they have little control over work or how they can cope with its demands and pressures. Work stress is recognized world-wide as a major challenge to workers ‘health and the healthiness of their organizations. Workers who are stressed are also most likely to be unhealthy, poorly motivated, less productive and less effective at work and their organizations are less likely to be successful in a competitive market. Stress can be brought about by pressures at home and at work (Kausaret al., 2006).

Organizations cannot usually protect their workers from stress arising outside of work, but they can protect them from stress that arises through work. Occupational stress can be a real problem to the organization as far as its workers are concerned. Good management and good work organizations are the best forms of stress prevention. If employees are already stressed, their managers should be aware of it and know how to help in order to get the best out of their employees. Poor work organization that is, the

Most of time of our lives spent at work, job stress is widely experienced and so pervasive, that it’s been found to effect people in every sector. Employees’ in health sector spend most of their time at work, that’s why they are directly targeted by stress; due to this their productivity at workplace decreases greatly. Now the days, stress is considered as an important factor, which is rapidly increasing the absenteeism rate of employers and employees. This happens more in the public sector, where 50 percent of employers reported stress related absence.

The main causes of stress are work overloads, management styles, non-work factors such as relationships with family and workplace associates. In public sector, job security is considered more common cause of stress in recent years. Cost on absence in public sector due to stress is reported more than the cost incurred in the private sector. In public sector cost reported due to stress is 800 pound per employee a year, while in private sector; it is reported 446 pound per employee per year (Miller & Phipps, 2011). Over a few years, job stress is considered to be a worldwide problem and increasing steadily in the U.S. and other nations where the industry is growing rapidly. Poor salary packages, long working hours, mistreatment of supervisors with employees, are the major causes of creating stress in employees. Job stress produces large number of undesirable effects for both individual and organization. The incidents of hyper tension and heart attacks are the severe problems related to stress. India, Russia, China, Brazil, Turkey and other eastern European countries are the emerging countries in which stress is rapidly growing. Job stress affects not only the employees’ but also the organizations in the monetary and non-monetary costs. These costs are used to recover the work and health related injuries. Monetary cost is used to recover the health of employees and lower productivity and absenteeism of employees’ is recovered by non-monetary costs.

During the life span of an individual, job period is very important because it is directly linked with the stress. In those organizations where employees are not treated accordingly least satisfaction and high stress level are common observations. Stress is very harmful for human body, it increases blood pressure, sugar, suppression of immune system, decreased digestive system activity and reduced urine output. Stressful employees caught serious diseases that result in low productivity. In case of health sector, stress and the mental issues are becoming the major areas of study at workplace in almost every organization. The health sector is very sensitive and pivotal segment in economy where employees perform their duties almost 24 hours a day, than under these conditions it is impossible for them to perform their task that results in decrease of productivity.

1.2       STATEMENT OF THE PROBLEM

Over a few years, occupational stress is considered to be a worldwide problem and increasing steadily in the Nigeria and other nations where the industry is growing rapidly. It has been noticed that the employees in banking sector has been undergoing the stress in higher rate and has certain impact on productivity .Thus suggesting the organisation in which they have to concentrate more and improve the necessary areas for reducing stress among employees in organization.

Poor salary packages, long working hours, mistreatment of supervisors with employees, are the major causes of creating stress in employees. Job stress produces large number of undesirable effects for both individual and organization. The incidents of hyper tension and heart attacks are the severe problems related to stress. India, Russia, China, Brazil, Turkey and other eastern European countries are the emerging countries in which stress is rapidly growing. Job stress affects not only the employees’ but also the organizations in the monetary and non-monetary costs. These costs are used to recover the work and health related injuries. Monetary cost is used to recover the health of employees and lower productivity and absenteeism of employees’ is recovered by non-monetary costs.

1.3       RESEARCH QUESTIONS

1. What are the causes of Occupational stress in the Banking sector?
2. What the effects of Occupational stress in the Banking sector?
3. Are there any impact of occupational stress have on employee productivity?
4. Are there any significant relationship between occupational stress and employees productivity?
5. What are the major factors influence stress?

1.4       OBJECTIVES OF THE STUDY

1. To determine the causes of job stress in the Banking sector.
2. To analyze the effects of job stress in the Banking sector.
3. To identify the impact of occupational stress on employee productivity
4. To study the relationship between stress factors and employee’s productivity
5. To analyze the major factors influence stress
6. To suggest ways to reduce stress among employees & increase productivity

1.5       STATEMENT OF HYPOTHESES

For the purpose of this research work, some provisional statements are made to provide solution to the problem identified. The research hypothesis for this study is centered on the Null and Alternative hypothesis as shown below;

Ho:      There is no significant relationship between Occupational Stress and Employees Productivity.

Hi:       There is significant relationship between Occupational Stress and Employee Productivity.

1.6       SIGNIFICANCE OF THE STUDY          

This study is done to find out the occupational stress of the employees in the work place and how it affects the productivity of the employees in “Banking Sectors”. The study is vital as the healthy, satisfied and stress-less physicians and supporting staff are more focused towards patients concerns who might be the valuable assets for an organization. This study is will highlight the major stress factors which are contributing to decreasing employees productivity at job. This study is helpful for the employees’ of United Bank for Africa to analyze the stress factors, which are creating stress in them and to improve the health. This study will also helps to know the importance of occupational stress in the banks.

1.7       SCOPE OF THE STUDY

The scope of this research work will cover the impact of Occupational Stress on employee’s productivity with a special reference to the banking sectors a case study of United  Bank for Africa Plc.

1.8       LIMITATION OF THE STUDY

In the course of this research work, the researcher was faced with some constraints which placed a limit to the ability and performance of the researcher. The researcher encountered the following constraints among others.

1. Financial Constraint: The researcher needed a lot of money to travel to collect the necessary data from the firm. Money was also required to visit secondary data sources such as the internet, libraries, professional bodies, and so on.
2. Lack of Co-Operation: The unco-operative attitudes of many employees of the firm under study were not encouraging. Some of them were so biased and prejudiced that did not care to understand the purpose of the research. This resulted to their failure to provide sufficient information required for proper completion of the study.
3. Time Pressure: Time allowed was not enough for through completion of the research, in consideration of the fact we were also facing other academic studies during the semester.

1.9       DEFINITION OF TERMS

1. Employees:This can be referred to as a paid worker working in an organization, that is, person employed for wages or salary, especially at nonexecutive level. An individual who works part-time or full-time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties. Also called worker.
2. Banks: A place where money and any other valuables things are kept. A bank is a financial institution that accepts deposits from the public and creates credit.
3. Productivity:This isthe relative efficiency of economic activity that is, the amount of products or services produced compared to the amount of goods and labor used to produce it.
4. Stress: Stress is a condition of physical and psychological mental disorder which occurs in a situation of pressure, when resources are unable to fulfill the demand of an individual.
5. Occupational Stress:Occupational stress is stress involving work. Occupational stress is a major hazard for many workers. Increased workloads, downsizing, overtime, hostile work environments, and shift work are just a few of the many causes of stressful working conditions.