Effects of Stress on

Organizational Outcomes

Submitted to:

Sir AmjadSubmitted by:

Amanullah [08-0180]Table of Contents

3Acknowledgement

4Introduction

4Background:

5Topic Details:

5Stress

5Major Causes of Stress

6How can Stress cause Job Dissatisfaction?

7Problem

7Hypothesis

7Hypothesis 1:

7Hypothesis 2:

7Research Methodology

7Population:

7Sample Size:

8Sampling Method:

8Software Employed

8Material

9Analysis and Findings

9Frequency and Percentage:

9Stress on the Job

10Physical Stress on Job

11Switching the Job

13Hypothesis Testing:

13We tested the afore-mentioned hypothesis for the correlations among the respective variables with a level of significance of 0.05. We observed the following results:

13Hypothesis 1:

15Hypothesis 2: .

17Conclusion:

17Recommendations:

Acknowledgement

Primarily, I would thank Almighty Allah, for giving me the strength and determination and the ability to work methodically to complete this report to a certain required level of expectancy.

I am especially thankful to Sir Amjad who helped me acquire knowledge to enable me to complete the report. He guided and explained what i needed to do and played an important role in helping me carrying out this task. I would also like to thank all the people who filled out the questionnaire.

Introduction

Background:

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I examined the moderating effects of organizational commitment on the relationship of stress with job satisfaction, intent to quit, and health during organizational turmoil.. Findings indicated that commitment buffered the relationship between stress and job displeasure (a canonically derived vitiates combining residualized job satisfaction, intent to quit, and irritation). Stress increased job displeasure only when commitment was low. (PsycINFO Database Record (c) 2009 APA, all rights reserved). 2These were the essence of the research that has already been conducted on this topic and it was a brief background of the past researches and articles. This Stress Organizational Outcomes relationship encouraged us to formulate the Impact of stress in the local environment and to develop the hypotheses for our research. In mid 70s, more emphasis was on Division of Labor and scientific management, including time and motion studies (By Fredrick Taylor) in order to increase Productivity and performance. But today, more importance is given to Behavioral discourses such as Stress-Outcomes relationship. It has now turned into broad area of investigation.

Topic Details:

Stress

Researchers define stress as a physical, mental, or emotional response to events that causes bodily or mental tension. Simply put, stress is any outside force or event that has an effect on our body or mind. It can be defined as the body's reaction to a change that requires a physical, mental or emotional adjustment or response. Stress can come from any situation or thought that makes you feel frustrated, angry, nervous, or anxious. It can be either Physical or Mental.

Physical This occurs when the body as a whole starts to suffer as a result of a stressful situation.

Emotional These responses are due to stress affecting the mind and include anxiety, anger, depression, irritability, frustration, over-reaction to everyday problems, memory loss and a lack of concentration for any task.

Psychological Long-term stress can cause psychological problems in some individuals. Symptoms include withdrawal from society, phobias, compulsive behaviors, eating disorders and night terrors.

Major Causes of Stress

How workplace can be a cause for stress? In our work place we worry about getting and keeping a good job. We become stressed over new responsibilities and duties. We struggle to climb the career ladder and areoverwhelmed by the demands of our bosses. The working conditions may change, or we may have some interpersonal trouble at our work place. Home work for the students becomes a major cause. Work stress is sometimes brought up by other, while some time we bring it to ourselves. Three forces that can cause stress in the workplace environment can be:

Work Overload

Task Deadlines

Long Working Hours

Emotional Dissonance Nervousness etc.

How can Stress cause Job Dissatisfaction?

In line with past researches, this study shows the evidence for the negative effect of stress on various personal and organizationally valued outcomes. More specifically, job stress was negatively related to job satisfaction and affective commitment and positively related to turnover intentions. These results highlight the possible negative effects of job stress in the workplace.

Even more dangerous consequence of chronic job stress is burnout. Job stress was positively related to emotional exhaustion and cynicism. However, stress was not related to professional efficacy. These results show are in line with past research. Job stress however, was not related to performance. Maybe, the limited job choices available in economies such as Pakistan do not allow people to reduce their performance despite the fact that they are dissatisfied.

This arguments draws strength from the result that stress was positively related to turnover intentions. This implies that although people intend to quit the job if possible, they do not reduce their performance just because they do not have opportunities to switch the job or they cannot afford to lose the job. Surprisingly, job stress was positively related to creativity. We believe it is possible that people become more creative in wake of situations that induce stress in order to effectively cope with such situations.

Problem

To study the effect of stress on organizational outcomes.

Hypothesis

Hypothesis 1: Job Stress will not affect Job Satisfaction.

Hypothesis 2: Job Stress will affect Job Satisfaction.

Research MethodologyPopulation:

Many Multi-nationals have widespread their roots in Pakistan over last two decades and some are operating even more years ago. As we were interested to formulate the relationship between variables in proposed Model in the South Asian local perspective, we should have conducted the research Countrywide. But due the scarcity of available resources and the intent of our research projects, our population is the Officers and Middle Management of various Multi-nationals operating in Karachi.

Sample Size:

The Sample Size is more than 30 due to the low response rate i.e. 26%. 70 questionnaires were distributed, among which half were partially filled out and were left incomplete. It hindered the formulation of highlighted variables and so we had to continue with the available and gathered data.

Sampling Method:

In accordance with the available resources, Sampling Method used is of convenience sampling. This is because gathering data from diverse organizations in limited time was not possible if we have applied any other method. Questionnaires were evenly distributed among members of Organizations including Silkbank Ltd, Dubai Islamic Bank, Barclays, etc. This sampling allowed us the convenient distribution and collection of the research instruments among respondents and we were able to generate data from employees of the mentioned organizations.

Software Employed

Analysis on the Questionnaire responses has been done on SPSS (Statistical Package for Social Sciences) in multiple aspects. Some of the graphical presentations and comparison tables were also generated through Microsoft Excel.

Material

I have used questionnaires and circulated them in different organizations.

Analysis and Findings

Frequency and Percentage:

Stress on the Job

FrequencyPercentValid PercentCumulative Percent

ValidNever820.520.520.5

A few times a year717.917.938.5

Once a month or less512.812.851.3

A few times a month717.917.969.2

Once a week717.917.987.2

A few times a week37.77.794.9

Everyday25.15.1100.0

Total39100.0100.0

Physical Stress on Job

FrequencyPercentValid PercentCumulative Percent

ValidStrongly Disagree615.415.415.4

Disagree1743.643.659.0

Neutral820.520.579.5

Agree410.310.389.7

Strongly Agree410.310.3100.0

Total39100.0100.0

Switching the Job

FrequencyPercentValid PercentCumulative Percent

ValidI would quit this job at once if i could410.310.310.3

I would take almost any other job in which i could earn as much as I am earning now410.310.320.5

I would like to change both my job and my occupation37.77.728.2

I would like to exchange my present job for another one512.812.841.0

I am not eager to exchange my job, but I would do so if I could get a better job1948.748.789.7

I can not think of any jobs which i would exchange25.15.194.9

I would not exchange my job for any other25.15.1100.0

Total39100.0100.0

Hypothesis Testing:

Hypothesis for the correlations among the respective variables with a level of significance of 0.05. We observed the following results:

Hypothesis 1: Job Stress will NOT affect Job Satisfaction

The Correlation came out to be -0.40422 or negative 40.422%.

Hypothesis 2: Job Stress will affect Job Satisfaction.

The Correlation came out to be 0.005948 or 0.5% positive correlation

Analysis of some important questions

Scale used:

Strongly disagree1Disagree

2Neutral

3Agree

4Strongly agree

5

Conclusion:

The more the people were stressed, more were they losing interest in their jobs.

Those who were likely to switch their jobs, they were more dissatisfied in stressful situations.

When employees are dissatisfied or lose their interest in a job, they are highly likely to perform lower than those who are satisfied.

Recommendations:

Job Stress and Workload should be handled properly in organizations to keep employees satisfied on their jobs.

Employees should be trained for Stress handling as it finally affects organizational performance.

Employee satisfaction should be given priority if we intend to reduce the Employee Turnover Rate.

Organizational goals should be aligned properly with Employee objectives in order to avoid stress and burnout among Employees.

Long Working Hours should be avoided by employers.

Certain activities should be provided so that employees can relax their minds in stressful situations.

Therapies should be conducted on how Stress can be taken positively, instead of being taken negatively. Positive Stress can increase Job performance.

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Strongly Disagree

Disagree

Neutral

Agree

Strongly Agree

Sheet1

Frequency

Strongly Disagree6

Disagree17

Neutral8

Agree4

Strongly Agree4

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8757732

Never

A few times a year

Once a month or less

A few times a month

Once a week

A few times a week

Everyday

Sheet1

Frequency

Never8

A few times a year7

Once a month or less5

A few times a month7

Once a week7

A few times a week3

Everyday2

Total39

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44351922

I would quit this job at once if i could

I would take almost any other job in which i could earn as much as I am earning now

I would like to change both my job and my occupation

I would like to exchange my present job for another one

I am not eager to exchange my job, but I would do so if I could get a better job

I can not think of any jobs which i would exchange

I would not exchange my job for any other

Sheet1

Frequency

I would quit this job at once if i could4

I would take almost any other job in which i could earn as much as I am earning now4

I would like to change both my job and my occupation3

I would like to exchange my present job for another one5

I am not eager to exchange my job, but I would do so if I could get a better job19

I can not think of any jobs which i would exchange2

I would not exchange my job for any other2