The Effect Of Work Stress On Employee's Performance,
[A CASE STUDY OF First Bank Nigeria Plc]

Over the past decade, work-related stress and workplace health have become significant concerns both nationally and globally. Given the importance of work in modern society, the substantial amount of time people spend at their jobs, and ongoing changes in the nature of work, it is not surprising that work stress is on the rise (Cooper & Payne, 1988). The rapidly evolving global economy has led organizations to prioritize speed, efficiency, and competitiveness. As a result, economic pressures and the drive to maintain a competitive edge have triggered widespread restructuring and uncertainty. Workforces are frequently being downsized, smaller companies are being absorbed by larger, more competitive ones, and constant change has become the norm. These shifts—along with changes in legislation—have contributed to a troubling increase in claims related to chronic workplace stress

Essentially, stress is an integral part of everyday life and simply cannot be avoided. People encounter stressful stimuli many times a day in their personal and social domains and, as work is an essential aspect o f human existence, in the workplace. In a colloquial language, the term stress is used to denote a response or reaction to negative conditions. In an empirical literature, stress is usually referred to as strain and represents an outcome variable (Spector and Jex, 1998).

Similarly, the formal dictionary definition of stress is ?to put pressure or strain on an object or a person (Macqwarie Dictionary, 1982). In an academic context, these demands are usually referred to as stressors. Moreover, the term stress as a process acknowledges the fact that it is multi-faceted concept that occurs in a temporal and dynamic manner; which is influenced by the interaction of a multitude of contributory factors (Barling, 1990). Argyris, (1964) defined stress as an individual?s perception that environmental demands (Stressors) exceed his or her capabilities and resources, thus leading to negative outcome. Similarly, stress as an imbalance between the body?s resources and the demands made upon it. Specifically, the psychological and physical outcomes of the stress process have the potential to influence future outcome by becoming additional stressors or by depleting the coping ability and resources that are available to the individual.

Consequently, work stress is a constantly changing and circular process, a proposition that raises significant implications for research and practice. In terms of stress process definition, work stress has been described as an incompatibility between the individual and has or her work environment (Hodgson, Jones, Elliot, and Osman, 1993). Additionally, work stress can be expressed as being the harmful physical and monitorial responses that occur when the requirements of the job do not match the capabilities, resources, or needs of the worker (NIOSH, 1999).

Lazarus, (1991) postulated that work stress is a process, involving a transaction between an individual and his or her work environment. The worker?s response to work stress can be either psychological or physical or both (Cox, Griffiths, and Rial, 2000).

1.2 STATEMENT OF PROBLEM.

The intrinsic value of work to the health and life satisfaction of the worker is well recognized (Probert, 1990). Early philosopher such as freud and Adler contended that work forms an integral part of basic human existence. Moreover, work does not only fulfill basic needs for security, food or shelter, but also provides a means by which higher level needs, such as need for competence, meaning and social engagement are met (Maslow, 1969). Thus, work and stress are said to be a twin concepts which are inseparable in an organization.                        

Essentially, it is sometimes argued that organizational climate tends to cause employee?s work stress in an organisation. This is however linked to the condition of work or environment where the employees are exposed to while performing their normal job routines. As a result, this factor may likely contribute to employee?s low productivity and performance at work.

Similarly, characteristics of the job performed by the employees may likely lead to work stress. That is to say that, the nature of work performed by the employee goes a long way in determining employee?s performance within an organizational context.

Consequently, personal vulnerabilities of the employee himself tends to bring stress; such as the management of family affairs alongside with job, health and safety at work, baby care and many other factors which are capable of causing unnecessary work stress to the employees.

Subsequently, this research work intends to examine the influence of the above stated factors on the employee?s job performance. Similarly, the study will endeavour at measuring the effect of work stress on employee?s performance, especially in the banking industry.

1.3 AIM AND OBJECTIVES OF THE STUDY

The overall objective of the study is to examine the effect of work stress on employee?s performance. Specifically, other relevant objectives will include the followings;

(i) To examine whether or not organizational climate contribute to work stress.

(ii) To find out the effect of job characteristics and personal vulnerabilities on work stress and employee?s performance.

(iii) To identify the key factor which contribute to the phenomenon of work stress in an organisation. 

(iv) To identify the various management strategies of work stress available to a manager.

1.4 RESEARCH QUESTIONS/RESEARCH HYPOTHESES

In this study, the following questions are to be answered accordingly:

(i) What is the relationship between work stress and employee?s performance?

(ii) What is the implication of organizational climate in work stress?

(iii) Does job characterizes and personal vulnerabilities contribute to work stress and consequent reduction of employee?s performance?

(iv) What are the key factors contributing to the phenomenon of work stress in an organisation?

(v) Lastly, are there any strategies available to management in reducing work stress in an organisation?

On the other hand, the following tentative statements of hypothesis shall be tested and validated in the study:

Hypothesis One:

Ho: There is no significant relationship between work stress and employee?s performance.

Hi: There is a significant relationship between work stress and employee?s performance.

Hypothesis Two:

Ho: Work stress does not have a significant effect on employee?s performance.

Hi: Work stress does have a significant effect on employee?s performance.

1.5 RESEARCH DESIGN/METHODOLOGY

In this study, both primary and secondary sources of data will be adopted. The primary data will however, be regarded by a means of a well-structured questionnaire to be administered to the selected respondents. This questionnaire administration is necessary since it will help the researcher to collects first-hand information from the respondents about the research topic

Furthermore, secondary source of data collection will include the consultation of relevant materials and work of the existing and past researchers or scholars on the subject topic such as; textbooks, publications, journals, articles, etc. 

Similarly, the research work intends to use Three Hundred (300) members? staff of the bank ? First Bank Nigeria Plc. Therefore, the entire population of study will be selected from the Lower level employees, Middle level employees and Top level employees and which are to be distributed in the following manner: Lower level cadre (150); Middle level cadre (100); and Top level cadre (50). In all, this research work envisaged to use adopt a sample size of about 200 staff members of the bank as a useful target respondents. 

1.6 SCOPE OF THE STUDY

This research work focuses on the effect of work stress on employee?s performance with particular reference to First Bank Nigeria Plc. Thus, the two branches of the bank located within Orita and Mobil area, including its head office in Ring Road, Ibadan will be used as the study area.

1.7 LIMITATION OF THE STUDY

Apart from the envisaged biased nature of respondents in answering the questionnaire to be administered; there is also a problem of time for which the study is to be completed and which seems inadequate. Again, the researcher is assumed to be faced with financial constraint and unavailability of materials to conducts the research more adequately.

1.8 SIGNIFICANCE OF THE STUDY

This study is worthy of being conducted as it will actually help to establish the nature of relationship between worker?s stress and organizational productivity. Moreover, the study will also assist organizational managers to understand the factors which can contribute to work stress and consequently, the management?s strategies to be adopted in controlling it. Thus, it will facilitates their (managers) understanding of workers more effectively.

Subsequently, the study is set to contribute to the existing body of knowledge in the field of study by identifying areas of congruence and divergence between past and current research studies. Hence, this study will serve as a springboard to the researchers in the near future as well as numerous organizations that may be experiencing management problem in terms of work stress.

1.9 DEFINITION OF OPERATIONAL TERMS.

WORK STRESS: It is a process, involving a transaction between an individual and his or her work environment. It is an individual perception that environmental demands (stressors) exceed his or her capability and resources, thus leading to negative outcomes.

EMPLOYEES PERFORMANCE: It is the efficient utilization of resources like labour, capital, land, energy and information in the productivity of various services.

1.10 ORGANIZATION OF THE STUDY

CHAPTER ONE:  General Background to the study, statement of  problems, objectives of the study, Research Questions, ,Methodology, Scope of the study, Limitations of the study, Significance of the study and Definition of Operational Terms.

CHAPTER TWO: Theoretical Framework and Literature Review, Conceptual Framework and Historical Background of the organization under study.

CHAPTER THREE:  Research Design and Research Methods.

CHAPTER FOUR: Presentation of Data Analysis

CHAPTER FIVE:  Summary of findings, Conclusion and Recommendation.