Occupational stress and its effects on empolyees performance

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business VO XUAN MINH OCCUPATIONAL STRESS AND ITS EFFECTS ON EMPOLYEES’ PERFORMANCE ID: 22120094 MASTER OF BUSINESS (Honours) SUPERVISOR: DR TRAN HA MINH QUAN Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENTS This thesis could not be accomplished without the help, advise, support, guidance and encouragement of many people I wish to express my sincere gratitude to my advisor, Dr Tran Ha Minh Quan, for his clear and careful direction, guidance and correction to my thesis, especially for his enthusiasm in answering reminding, help and support Secondly, I would like to thank my dear colleagues, friend and classmates for their invaluable advice, help, encouragement and support during the time I was doing this thesis ABSTRACT Vietnam is a developing country and has the emerging market, so the employees' performance in Vietnamese companies plays a significant role to increase the competitive advantages However, so far the study for employees' performance in Vietnamese companies has not yet been thoroughly conducted This research is carried out with the objectives to identify the measurement scale of employees‟ performance, identify the occupational stress factors that impact on employees‟ performance and measure the strength of relationship between occupational stress and employees‟ performance in the Vietnamese companies Survey and data analysis used to collect the answer for the survey on various employees in the South organizational factors Vietnam with the sample size of 250 for data analysis Number of statistical analysis techniques are used to analyze the data collected via SPSS program Factor analysis results in the identification of factors having significant impact to employees' performance, and the extraction of five factor groups named as Time Pressure, Work Colleges , Job Clarity, Support at Work and Job Security Analysis proved that three groups have statistically significant influence to the employees' performance in Vietnamese companies, which Job Clarity has the highest impact The research results can be used as a reference for the team leaders, managers, supervisors in Vietnamese companies to enhance and better the employees' performance in the future TABLE OF CONTENTS ACKNOWLEDGEMENTS…………………………………………………………………………………… ….i ABSTRACT…………………………………………………………………………………………………… ….ii TABLE OF CONTENTS……………………………………………………………… …iii LIST OF TABLE…………………………………………………………………………….v LIST OF FIGURES…………………………………………………………………… ….vi CHAPTER 1: INTRODUCTION 1.1 Background to the study 1.2 Statement of the problem .2 1.3 Purpose of the study .3 1.4 Scope of the study 1.5 Operational definition of terms 1.6 Structure of the research………………………………………………………… ……3 CHAPTER 2: LITERATURE REVIEW .5 2.1 Stress .5 2.1.1 The concept and phenomenon …………………………………………………… 2.1.2 Definitions of stress……………………………………………………………… …6 2.1.3 Occupational stress…………………………………… 2.1.4 Theories of Occupational stress…………………………………………………… 2.1.4.1 Interactional Theories ………………………………………………………….… 2.1.4.2 Transactional Theories………………………………………………………….… 2.1.5 Signs and symptoms of occupational stress……………………………………… 10 2.1.6 Cause of occupational stress……………………………………………………… 11 2.2 Performance……… ……………………………………………………………… 14 2.2.1 Performance in organizational………………………………………………… 14 2.2.2 Job performance……………………………………………………………… .15 2.2.3 Measuring job performance……………………………………………………… 16 2.2.4 Options for measureing job performance objectively……………………… 17 2.2.5 Relationship between occupational stress and employee‟s performance……….… 18 2.2.6 Conclusion………………………………………………………………………… 19 2.3 Conceptual Model… …………………………………………………………… 20 CHAPTER 3: METHODOLOGY 22 3.1 Research Process .22 3.2 Sample Size 24 3.3 Measure Scale 24 3.4 Data Analysis Method………… .26 3.4.1 Reliability measure ………… 27 3.4.2 Validity measure by EFA (Exploratory Factor Analysis) 27 3.4.3 Multiple regression analysis ……… 28 3.5 Summary…………………………………………………………………………28 CHAPTER 4: ANALYSIS OF DATA 30 4.1 Brief description of subjects 30 4.2 Descriptive statistics……………………… 30 4.3 Patterns of data for each research question…………… 31 4.3.1 Preliminary evaluation scale with Cronbach‟s Alpha…… 31 4.3.2 Scale testing by using Exploratory Factor Analysis (EFA)…………………… 35 4.3.3 Regression analysis……………………………………… 39 4.4 Summary………………………………………………………………………… 43 CHAPTER IMPLICATIONS AND CONCLUSIONS .44 5.1 Conclusions 44 5.2 Implications 44 5.3 Implications…………………………………………………………………… ….45 5.4 Limitations and recommend for further research 45 Reference……………………………………………………………………………… 47 Appendix……………………………………………………………………………… 52 LIST OF TABLES Table 3.1: Measurement scale 25 Table 4.1: Descriptive statistics……… 31 Table 4.2: Reliability Statistic of Time Pressure .31 Table 4.3: Reliability Statistics of Relationship with Colleges 32 Table 4.4: Reliability Statistics of Job Clarity 33 Table 4.5: Reliability Statistics of Support at work 33 Table 4.6: Reliability Statistics of Job Security………… 34 Table 4.7: Reliability Statistics of Employee Performance .35 Table 4.8: Exploratory Factor Analysis for Independent variables 36 Table 4.9: Exploratory Factor Analysis for Dependent variables 38 Table 4.10: Regression analysis .39 Table 4.11: Hypothesis Result……………………………………………….…… … 42 LIST OF FIGURES Figure 2.1: Hunter‟s job performance scheme 17 Figure 2.2: Conceptual model 21 Figure 3.1: Research process 23 Figure 4.1: Result of refined research model 43 CHAPTER INTRODUCTION This chapter presents the background to the study, statement of the problem, purpose of the study, objectives of the study, scope of the study and operational definition of the terms 1.1 Background to the study Nowadays, stress has become a major problem for employers particularly in developing nations where the employer doesn‟t realize the impact of stress on employee performance which ultimately results in critical managerial dilemmas (Subha and Shakil, 2010) Giga & Hoel (2003) explain that high rates of mergers, acquisitions, increasing economic interdependence among countries due to globalization, technological development, and restructuring have changed the organizational work over the last few decades resulting in time pressure, excessive work demand, relationship with colleges, job clarity and job security which are causing stress According to Malta (2004), occupational stress is defined as any discomfort which is felt and perceived at a personal level and triggered by instances, events or situations that are too intense and frequent in nature so as to exceed a person's coping capabilities and resources to handle them adequately Occupational stress presents with various signs and symptoms which according to (HFRS, 2011) are categorized as physical, emotional, and behavioral symptoms Physical symptoms include; skin irritation, pain and tightness, indigestion, frequen colds, flu or other infections, nausea, headaches, tiredness, and fainting Emotional symptoms include; swings in mood, feeling nervous, increased worrying, feelings of helplessness, loss of confidence, feeling tense, lack of selfesteem, lack of concentration while behavioural symptoms may include; being more accident prone, change in sleep pattern or difficulty in getting to sleep and waking tired, poor work, increased dependence on drugs, not looking after yourself, overeating or loss of appetite, poor time management, and impaired speech Each individual is exposed to a range of stressors at work which ultimately affect his or her performance On the other hand, employee performance is defined as the outcomes and accomplishments expected of the employee which are valued by the organization or system that he or she works in There are a variety of factors, be personal, company-based or external that affect employee performance in an organization among which is stress or work pressure (Rebecca, 2010) Stress sometimes known as pressure at work can be positive leading to increased productivity However, when this pressure becomes excessive it has a negative impact The individuals perceive themselves as being unable to cope and not to possess the necessary skills to combat their stress (Mead, 2000) Occupational stress has consequences leading to low organizational performance (Elovainio et al, 2002), and has belittling impact on any organization and individual‟s performance even leading to health care problems Stress is acknowledged to be one of the main causes of absence from work (Mimura et al, 2003) Employees in high numbers report that their job is a source of large amount of stress they experience throughout the year, which has a very bad and negative effect on their performance due to the symptoms and problems associated with occupational stress (Meneze, 2005) Therefore, occupational stress is considered a challenge for the employers and because high level stress results in low productivity, and other employee problems it is necessary that managers find a way of addressing the issue of occupational stress (Elovainio et al, 2002) 1.2 Statement of the problem Today, stress has become an integral part of jobs in every sector Competition is growing day by day thus increasing the levels of stress among employees Stress in organizations is a wide-spread phenomenon with far-reaching practical and economic consequences The financial crisis and recession of 2008 around the world further contributed in mounting higher levels of stress among employees The organizations, to make themselves efficient in utilization of resources, have gone through entire restructuring, layoffs, downsizing, and mergers This has resulted in unstable employee-employer relationship which has caused a great deal of stress among employees and it affects employee‟s job performance 1.3 Objectives of the study + To examine the factors of occupational stress that affect employee performance 1.4 Scope of the study Vietnamese companies are numerous and of different types However due to the limitations of data availability, research funds and time, the scope of this research is therefore limited to all kinds of Vietnamese companies in the Southern Area of Vietnam 1.5 Operational definition of terms Occupational stress: can be defined as the "harmful physical and emotional responses that occur when the requirements of the job not match the capabilities, resources or need of the worker" Performance is defined as the outcomes and accomplishments valued by the organization or system that one works in 1.6 Structure of the research The structure of the study consists five chapters: Chapter 1: Introduction This chapter presents research background of the study, as well as, research problems, research objectives, research methodology and scopes Chapter 2: Literature Review and Conceptual Model Relationship with Standardized Coefficients β RC = 0.268, the third is TimePressure with Standardized Coefficients β TP = 138, and the fourth is Support with Standardized Coefficients β SUP = 0.094 Results of regression analysis also show that Relationship with Colleges (Relationship) has Sig = 0.000 < 0.05, Job Clarify (JobClarify) has Sig = 0.000 < 0.05, and Time Pressure (TimePressure) has Sig = 0.007 < 0.05 Therefore, Relationship, JobClarify, and TimePressure have strong correlation and statistic significance when included in model analysis Two factor left are Job Security has Sig = 0.448 > 0.05 and Time Pressure has Sig = 0.152 > 0.05, so it did not support for explaining dependent variable Table 4.11 Hypothesis Result No Description Beta Sig .0138 007 Results Hypotheses H1 + There is a relationship between Time pressure and Employee dependent variable because the significant value was below 05 performance H2 + There is a relationship between + Positive impact,support for explaining 268 000 Work colleges and Employee + Positive impact, strong support for explaining dependent variable performance H3 + There is a relationship between 430 000 Job clarity and Employee + Positive impact, strong support for explaining dependent variable performance H4 H5 + There is a relationship between Support at work and Employee performance 094 152 + There is a relationship between Job security and Employee performance -.048 0.448 + Positive impact, no support for explaining dependent variable because the significant value was above 05 + Negative impact, no support for explaining dependent variable because the significant value was above 05 42 Figure 4.1 Result of refined Research model 4.4 Summary This chapter presents the preliminary and confirmatory assessment of the measures of the constructs in this study After refining the measures through Cronbach‟s alpha and Exploratory Factor Analysis (EFA), the scales used to measure the theoretical constructs in this study received satisfactory levels of reliability and validity In this chapter, the relationships between the occupational stress and employees' performance were also analyzed by Hierarchical Regression techniques with the application of SPSS computer software The next chapter will present the conclusion of this research 43 CHAPTER IMPLICATIONS AND CONCLUSIONS 5.1 Introduction This chapter presents the conclusion about the research; conclusions are drawn based on the findings, the limitations and recommendation of this research In chapter one of this thesis, the research objectives were mentioned, and from objective, five hypotheses were created, in next section conclusion of each hypotheses, and research objectives will be made Moreover, in this chapter implications of this research will be discussed, and it will be finished by limitations and recommendations for further research 5.2 Conclusions As the results of data analysis in chapter 4, three in five hypotheses of this research were accepted The first hypothesis is about the relationship between Job clarify and Employee performance which was proved that there is a positive impact of Job clarify on employees‟ performance This is accurate in both state sectors and other sectors The result showed that Job clarify affects on performance of employees with β JC = 0.430 which is the strongest one among three determinants That proved job clarity will help employees understand and know how to get the job done most efficiently Relationship with Colleges was proved in the results in chapter that it has positive impact on employees‟ performance with β RC = 0.268 Relationship with Colleges was a second strong factor impact to performance of employees among three determinants In general, people work more effective in better working environment The more they feel comfortable, the better they perform that could correct in all kinds of sectors Time pressure - was also proved in the results of data analysis in chapter that it has positive impact on employees‟ performance with β TP = 0.138 In this study, 44 among three determinants, Time pressure has the weakest effect on performance of employees This result may be different if the data is collected in other economies Vietnamese who have been accustomed to work very hard, so time pressure was no big impact to the employee's performance 5.3 Implications The results of this study show that all three determinants Time pressure, Relationship with Colleges, Job Clarify have positive impact on performance of employees, but each determinant impact with different levels Moreover, in different economies or even in different period of time those determinants may affect differently on employees‟ performance Therefore, when using those determinants as incentive to motivate employees, manager of each company/sector should consider carefully with flexible options In Vietnamese companies, the managers need to focus on building a good and transparent communication system Especially, Vietnamese companies should have a useful method of communication and the information will be communicated well in organization Nowadays, in order to enforce the employees' performance in Vietnamese companies, information and knowledge are shared openly within organization By this way, it can help their employee have enough information to perform their jobs well The research results encourage management team in Vietnamese companies pay more attention to job clarity, because it is the strongest organizational factor affect to employees' performance 5.4 Limitations and recommend for further research There are some limitations of this research First of all, the survey to collect data use for this research only conducted in South of Viet Nam, therefore it may not reflex truly for the whole Vietnamese economy system Further researches could conduct a survey for the whole country, it will increase reliability 45 Second, the time of doing this research is quite short and the number of participants in the survey was quite small, the ability of research author is limited, so the quality of the research may not so high 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HƯỚNG DẪN THỰC HIỆN Anh/chị vui lòng đánh giá mức độ đồng ý với phát biểu theo qui ước từ thấp đến cao sau: Hồn tồn khơng đồng ý Trung lập (khơng có ý kiến) Khơng đồng ý Đồng ý Hồn tồn đồng ý THƠNG TIN CÁ NHÂN Anh/chị vui lòng cung cấp số thơng tin cá nhân cách chọn câu trả lời thích hợp Giới tính anh/chị * Nam Nữ Anh/chị thuộc nhóm tuổi nhóm đây? * Dưới 25 tuổi Từ 25 đến 30 tuổi Từ 30 đến 40 tuổi Trên 40 tuổi Công ty anh chị công ty * Tư nhân Nhà nước Vốn đầu tư nước Đa quốc gia 52 THỰC HIỆN KHẢO SÁT I ÁP LỰC VỀ THỜI GIAN HỒN THÀNH CƠNG VIỆC Tơi có q thời gian để hồn thành công việc Tôi phải làm việc nhanh để kịp tiến độ công việc Thời hạn công việc khơng thể hồn thành Tơi khơng có thời gian để nghỉ nghơi II MỐI QUAN HỆ VỚI ĐỒNG NGHIỆP TRONG CƠNG VIỆC Đồng nghiệp tơi sẵn sàng giúp đỡ tơi tơi gặp khó khăn công việc Đồng nghiệp vui vẻ hòa đồng với tơi Tơi thấy thoải mái làm việc với đồng nghiệp tơi 53 III SỰ RÕ RÀNG TRONG CƠNG VIỆC Tơi có đầy đủ thơng tin để hồn thành công việc cách tốt Tôi hiểu rõ nhiệm vụ trách nhiệm công việc Tơi hiểu phải làm để hồn thành mục tiêu chiến lược công ty IV ĐỘNG VIÊN TRONG CƠNG VIỆC Tơi u cầu giúp đỡ công việc Cấp tơi khuyến khích hỗ trợ tơi cơng việc 54 Cơng ty tơi có sách khen thưởng công Công ty ln tơn trọng đề cao ý kiến đóng góp nhân viên V AN TỒN TRONG CƠNG VIỆC Tôi hướng dẫn đầy đủ sức khoẻ an tồn bắt đầu làm việc cơng ty Tôi cung cấp đầy đủ dụng cụ thiết bị bảo hộ lao động nơi làm việc Tôi cảm thấy môi trường làm việc an tồn VI KẾT QUẢ LÀM VIỆC Tơi tin nhân viên làm việc hiệu Tôi hạnh phúc với chất lượng kết công việc 55 Sếp tin nhân viên hiệu Các đồng nghiệp tin nhân viên làm việc suất Tôi hoàn thành nhiệm vụ giao cách hiệu XIN CHÂN THÀNH CÁM ƠN! 56 ... them grip stress (Zwickel, 1994) 2.1.3 Occupational Stress Stress caused due to a person‟s work or employment is termed as occupational stress The occupational stress, or occupational stress is... respond to difficult conditions Selye explained the concept of stress using the conditions distress (bad stress) and eustress (good stress) The degree of insist is basic in Seyle‟s clarification... anxiety and stress (Coleman, 1976).The stress itself will be affected by number of stressors 2.2.6 Conclusion Performance in organizations can be divided in organizational performance and job performance