Effects of Stress on

Organizational Outcomes

1|Page

Submitted to:
Sir Amjad
Submitted by:
Amanullah [08-0180]

2|Page

Table of Contents
Acknowledgement...........................................................................................................................3
Introduction......................................................................................................................................4
Background:.................................................................................................................................4
Topic Details:...............................................................................................................................5
Stress........................................................................................................................................5
Major Causes of Stress............................................................................................................5
How can Stress cause Job Dissatisfaction?.............................................................................6
Problem............................................................................................................................................7
Hypothesis.......................................................................................................................................7
Hypothesis 1:...............................................................................................................................7
Hypothesis 2:...............................................................................................................................7
Research Methodology....................................................................................................................7
Population:...................................................................................................................................7
Sample Size:................................................................................................................................7
Sampling Method:.......................................................................................................................8
Software Employed.....................................................................................................................8
Material........................................................................................................................................8
Analysis and Findings......................................................................................................................9
Frequency and Percentage:..........................................................................................................9
Stress on the Job......................................................................................................................9
Physical Stress on Job............................................................................................................10
Switching the Job...................................................................................................................11
Hypothesis Testing:....................................................................................................................13
We 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:...............13
Hypothesis 1: ........................................................................................................................13
Hypothesis 2: ........................................................................................................................15
Conclusion:....................................................................................................................................17
Recommendations:........................................................................................................................17

3|Page

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.

4|Page

Introduction
Background:

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). 2
These 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.

5|Page

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
are overwhelmed 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:

6|Page

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.

7|Page

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 Methodology
Population:
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.

8|Page

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.

9|Page

Analysis and Findings

Frequency and Percentage:

Stress on the Job

Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

Never

20.5

20.5

20.5

A few times a year

17.9

17.9

38.5

Once a month or less

12.8

12.8

51.3

A few times a month

17.9

17.9

69.2

Once a week

17.9

17.9

87.2

A few times a week

7.7

7.7

94.9

Everyday

5.1

5.1

100.0

39

100.0

100.0

Total

10 | P a g e

 Physical Stress on Job

Cumulative
Frequency
Valid

Strongly Disagree

Percent

Valid Percent

Percent

15.4

15.4

15.4

17

43.6

43.6

59.0

Neutral

20.5

20.5

79.5

Agree

10.3

10.3

89.7

Strongly Agree

10.3

10.3

100.0

39

100.0

100.0

Disagree

Total

11 | P a g e

 Switching the Job

Cumulative
Frequency
Valid

I would quit this job at once if

i could

Percent

Valid Percent

Percent

10.3

10.3

10.3

10.3

10.3

20.5

7.7

7.7

28.2

12.8

12.8

41.0

19

48.7

48.7

89.7

5.1

5.1

94.9

5.1

5.1

100.0

39

100.0

100.0

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
Total

12 | P a g e

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%.

13 | P a g e

Hypothesis 2: Job Stress will affect Job Satisfaction.

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

14 | P a g e

Analysis of some important questions

Scale used:
Strongly disagree 1
Disagree
2
Neutral
3
Agree
4
Strongly agree
5

15 | P a g e

16 | P a g e

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.

17 | P a g e

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.

18 | P a g e

19 | P a g e