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OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
Organizational Stress and its Effects on Productivity
by
Iranya Verduzco
Thesis Submitted in Partial Fulfillment
of the Requirements for the Degree of
Master of Science
Human Resources Management
National University
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
Abstract
In today’s global economy, organizations must produce faster and better than the competitor to
stay ahead. With the pressure to compete, organizations must pass down these expectations to
their employees. With the nation still reeling from the economic downturn of the past few years
and jobs becoming scarce, employees are feeling the pressure of management’s expectations
coupled with uncertainty of job security. These factors introduce high levels of stress to the work
place. Workplace stress at different levels hinders productivity. Not only does stress affect the
profit margins for an organization, but it can wreak on the mental and physical well-being of the
employee who many times does not recognize the effects.
The object of this study was to identify the most common types of stressors in the financial
operations service environment as well as their sources and the mitigatory practices human
resources professionals can put into place within the organization to handle this prevalent issue.
The research also included conclusions on the effects of workplace stress on productivity, its cost
to both the employee and the organization. Survey methods were used for this research and its
results used as a sample for the organization.
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
i
Dedication
This thesis is dedicated to my son Jaden who showed me the meaning of love the day he was born, taught
me more than all of my college education ever could, and has given me more pride than any degree I
could receive
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
Table of Contents
List ofFigures…………………………………………………………………………………………… iii
Chapter 1: Introduction....................................................................................................................1
Research Problem and Objective .................................................................................................1
Contribution to the Discipline ......................................................................................................1
Assumptions and Limitations .......................................................................................................2
Defining Stress and Workplace Stress ..........................................................................................2
Causes of Workplace Stress..........................................................................................................3
Effects ofStress on Productivity and Cost to Organizations……………………………………….4
HowStress Affects the Body and Mind ……………………………………………………………..6
Sleep Deprivation and Cardiovascular System ………………………………………………..6
Immune System ………………………………………………………………………………….7
Gastrointestinal System …………………………………………………………………………7
Anxiety Disorders ………………………………………………………………………………..8
Healthcare Costs …………………………………………………………………………………….8
Chapter 2: Reviewofthe Literature …………………………………………………………………...11
BriefHistorical Timeline …………………………………………………………………………..11
The Evolution ofStress Theory in the Workplace……………………………………………….12
Observation A: ………………………………………………………………………………….13
Theories ofPsychological Stress at Work. ……………………………………………………....14
Observation B: ………………………………………………………………………………….15
The Role ofGender in the Workplace Stress: A Critical Review………………………………17
Observation C ………………………………………………………………………………….18
Reviewand Metanalysis………………………………………………………………………….18
Observation D: ………………………………………………………………………………....19
Conclusion ……………………………………………………………………………………….20
Chapter 3: Design & Methodology ……………………………………………………………………22
Chapter 4: Results ……………………………………………………………………………………...24
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
Chapter 5: Conclusion………………………………………………………………………………29
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
List of Figures
Fig. 1 Absentee costs for sample organizations sizes…………………..pg. 6
Fig. 2 Payer Mix by Service Category ………………………………...pg. 10
Fig.3 Analyis Tool Results by Management Standard …………….....pg. 25
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
Chapter 1: Introduction
Stress seems to be a way of life in the business world. Tight deadlines, split second
decisions, and workloads go hand in hand with stress. Many employees may erroneously believe
it’s all in a day’s work, but this does not have to be the case. The problem with stress is that its
effects on the mind and body are largely negative. These effects introduce a variety of ailments
not only to the mind & body of the employee, but come at a great cost to the organization as
stress impedes productivity. The American Institute of Stress (2014) estimates that stress costs
American industries and estimated three hundred billion dollars stemming from accidents, sick
days, and legal judgments among other consequences. The organization’s human resources
professionals are tasked with recognizing the specific types of stress that come with the
particular type line of work and how the organization can alleviate them.
ResearchProblem and Objective
By identifying the common types of stressors in this type of work environment, an
organization is able to reduce stress and as a consequence, enhance productivity. The objective
of this research is to identify the common causes of stress present in the organizations through
survey method, its effects on the employee, and its link to reduced productivity. Finally, this
research can offer organizational interventions that can be implemented in financial service
environments to help alleviate stress.
Contribution to the Discipline
This research is intended to help both employees and organizational leaders understand
the relationship between workplace stress and organizational development. This study will
provide ideas on reducing stress through organizational interventions through the scope of the
human resources management function.
OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT
Assumptions and Limitations
The thesis assumes that all employees in financial operations environments are under
stress to varying degrees. The research assumes that by analyzing the results of the survey given
by the chosen employees of the financial operations centers, the sample results are representative
of the population.
This study was based on extensive research regarding workplace stress and personal
experience of working in the financial operations services setting. One of the limitations of the
proposed interventions is that they were never implemented. There is no empirical method of
measuring the success or failure of the proposed interventions, and if stress was reduced or
production increased due to their implementations. Since no interventions were implemented, it
would be impossible to receive any feedback from employees who would be subject to said
implementations.
Defining Stress and Workplace Stress
To understand stress in the work environment, stress must first be defined and
understood. There are various definitions of stress that are dependent on the models and
disciplines used to define them. As this research analyzes the effects of stress on the mind &
body and as a consequence on work production, the definitions of stress will be given through
the psychological/medical lens as well as through an organizational lens. The American
Psychological Association (2014) defines stress as “the pattern of specific and nonspecific
responses an organism makes to stimulus events that disturb its equilibrium and tax or exceed its
ability to cope”. This is to say that stress is a reactionary state in response to stimulation beyond
the body or mind’s capacity to handle it. This reaction essentially creates an imbalance that
3
seems to be prevalent in the American workforce. In its annual Stress in America Survey, the
APA reports that out of 1,700 respondents, 80% contend that their stress has increased or
remained the same in the past year (APA, 2013). This goes to prove that stress is a prevalent
matter in the lives of Americans.
The UK based Trade Unions Council (TUC) concludes that stress occurs when the
demands placed on an individual by organizational needs, supersedes the capacity of the
individual or the resources available to him. Stress also occurs when this workload outweighs the
worker and time allotted to performs the tasks given (Stranks, 2005, p.2). Combined, these two
definitions give us a broader view into stress in the workplace as a psychological state in which
dysfunctional behavior is exhibited in response to an imbalance between demand and ability.
Causes ofWorkplace Stress
The U.K. based Health & Safety Executive (HSE) is a watch dog organization founded
for the purpose of monitoring and reporting issues of workplace safety and illness. The goal of
the organization is to reduce work related injuries and death by acting as an independent
regulator in benefit of the public.
The HSE (2012) has developed a set of organizational benchmarks entitled “The Management
Standards for Work Related Stress.” these standards highlight the primary sources of work stress
through six crucial areas of workplace design that are associated with the well-being and
productivity of employees. The Management Standards contend that the six primary sources of
work related stress are demands, control, support, relationships, role and change.
4
Demands- work that is assigned beyond the employee’s physical and mental capacity such as
information overload and physical labor with added time pressures. Poor physical working
environments also make up the demands type work stressors.
Control- this stressor deals with the amount of input an employee has in making decisions on the
work he/she does and in how they do it. Stringent restrictions on behavior can also bring about
feelings of reduced control.
Support- this is an issue of how much recognition an individual receives for the work they
produce by the organization, supervisors and including colleagues. Support also deals with
resources available to complete work and more importantly resources for career development.
Relationships- poor relationships with supervisors or department heads, colleagues and
subordinates as well as the relationship the organization has with its employees overall.
Role- this stressor deals with how the organization clearly defines and individual’s role and
scope, if role conflicts exist, and how level of responsibility an individual has over other
employees.
Change- this stressor deals with how large and small change is handled, managed and
communicated within the organization. (Health & Safety Executive, 2012)
Effects ofStress on Productivity and Cost to Organizations
Increased levels of stress in the workplace can lead to a decline organization
performance. This decline projects itself in different areas of productivity. Stress is a major
factor in turnover rates in the workplace. Employees who are overwhelmed with work load or
demands either resign to look for less stressful work or are too sick to continue working as a
5
result of occupational stress. PricewaterhouseCoopers (PWC), a multinational professional
services firm published a human resources action plan fact in 2006 entitled, “Driving the Bottom
Line: Improving Retention”. In the fact sheet, PWC determined that turnover rates can cost
American employers about 12% of pretax earnings annually. (Saratoga, 2006).
Work demands that cause an imbalance for an employee can also be a high source of stress. The
economic downturn has caused organizations to cut their workforce even when workload
remained the same. Employers are now tasked with delegating more work with less workers.
Employees who are fortunate enough to keep their jobs must now bear redistribution of
workload. Constant time constraints and unbalanced workloads can lead to more frequent
absences from the work. In 2010, Met Life Market Institute surveyed over 17,000 of its
employees who reported that their workload had increased noticeably in a twelve month period.
(Metlife,2010). Employees feeling the pressures of demanding workloads may need to de-stress
by taking a sick day. Absences come at great cost to employers every year. With no immediate
replacements to take over the work of the absent employee, productivity for the day is at a
standstill. Absenteeism come with huge costs to organizations each year. According to
Absenteeism: The Bottom-Line Killer, a white paper publication of workforce solutions
company Circadian, unscheduled absenteeism costs businesses about $3,600 per hourly
employee, and a little less at about $2650 for salaried employees (Circadian, 2005). The
numbers grow exponentially as staff size and pay vary by industry. Sick days also increase as
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length of absences increase due to severity/reason.
Fig 1. Absentee costs for sample organizations sizes (Circadian, 2005)
How Stress Affects the Body and Mind
As HSE outlines, workload is a primary cause of work stress. Workload includes, amount
of work, poor working environments and added time pressures. Extended working hours a part of
the stress type derived from workload. In the United States, employees in both hourly and
salaried positions, are regularly working overtime/extended hours and the trend has steadily
increased since 1970. Studies refer to overtime as 49 or more hours weekly (Burke & Cooper,
2010 p. 69) Negative effects of long works hours were notably studied in Japan where the term
karoshi was coined. This term refers to sudden work death or death related to extreme work
hours or illness caused by constant stress of extened work hours.
Sleep Deprivation and Cardiovascular Systems . Among its negative
effects, working long hours have been studied with serious results discovered. According to
professors in Organizational Psychology and Behavior, long works hours have been found to be
linked to cardiovascular problems as a result of constant high blood pressure and abnormal heart
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rate. Stress due to long work hours that cause sleep deprivation which directly leads to chronic
fatigue and lack of focus while in the workplace. This lack of focus leads to a higher risk of
errors and accident margins in the workplace. (Burke & Cooper, 2010 p. 70-71) Not only is the
cost physical for the employee, but it results in a domino effect that affects the organization
exposing it to risk. Research data indicates insurance claims for stress related industrial
accidents cost nearly twice as much as non stress related industrial accidents (Burke & Cooper,
2010 p. 71).
Immune System. The University of Maryland MedicalCenter(UMM) has
published multiple studies on stress and its negative effects on the body among its findings,
UMM reports that response to stress, the brain releasese various hormones. Under regular
conditions, these hormones regulate normal bodily functions, but under the effects of chronic
stress, these hormones create a chemical imbalance in the body that many parts of the body. As
chronic stress builds, a constant flood of hormones are released by the brain and the body
responds. When experiencing acute stress, the immune system responds as if under attack and
releases hormones to fight infection such as vital white blood cells. With no present infection to
fight, the immune system and its fighting power are impaired when actually needed. (UMM,
2014)
Gastrointestinal Conditions. The studies by UMM also conclude that brain and
intestinal function are closely linked. Periods of prolonged exposure to stress, markedly disturb
the digestive process. Stress is linked o the over production of digestive enzymes that cause pain.
Irritable Bowel Syndrome (IBS), Stomach Ulcers, and Inflammatory Bowel Disease (IBD) have
all been found to be exacerbated by stress. (UMM, 2014)
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Anxiety Disorders. UMM suggests that in response to stress, many employees
experience as response to the constant release of stress hormones in the hypothalamic-pituitary-
adrenal (HPA) area of the brain disrupting normal levels of serotonin which is a hormone
integral to feeling calm. (UMM, 2014) Anxiety presents itself in a range of ways from constant
worry, to social detachment and even attacks of panic can plague employees. Some anxiety
disorders can cause debilitating conditions for many and as a result cause an employee to take
medical leave from work or even stop working permanently. Amy Lemley, coauthor of the book,
Work Makes Me Nervous, suggests that anxiety can be brought on by real fears: public speaking,
interaction with authority figures, organizational change, and others noticing fear or anxiety.
Healthcare Costs.
As stress and disease are further linked, the costs of treating these illnesses beg to be
discussed. Stress not only impacts the physical body, but it can also be a factor in ever rising
cost healthcare. Canadian researchers studied the connection between stressful work
environments and the amount of doctor visits made by patients who are experiencing
organizational stress. The findings were published in a 2011 medical article for Biomedcentral
titled Psychosocial Working Conditions and the Utilization of Health Care Services. The study
found that the research subjects studied who worked in higher stress occupations were seeing
doctors for their symptoms at a 26% higher rate than those who held low stress jobs. Specialists
were visited at a 27% higher rate than the lower stress employees. (Azagba & Sharaf, 2011).
Seeing a doctor in the U.S. is not cheap especially for those who are not covered by health
insurance.
9
The costs of seeking individual medical attention grow every year and the U.S. has
among the highest health care rates in the world. The California Healthcare Foundation releases
its annual report, Health Care Costs 101, on the rising cost of healthcare and its 2013 reports
suggests these costs will continue on an upward trend. The cost American personal healthcare is
estimated by this report to be 2.3 trillion dollars. Figure 2 breaks down expenditures by service
category in the U.S. for research conducted through 2011. Not surprisingly for Americans,
hospitalizations costs are estimated $28.1 billion in out of pocket costs, while physician and
clinical services out of pocket costs at $52.3 billion. Prescription drugs cost Americans $45
billion in out of pocket expenses. (California Healthcare Foundation, 2013)
10
Fig 2. (California Healthcare Foundation, 2013)
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Chapter 2: Review of the Literature
Introduction
The purpose of this literature review is twofold. Initially, the task of assessing the
detrimental effects of stress in the work place involves careful review of past and present
research that I might determine how broad or narrow to focus my topic. It is equally imperative
to select research that utilities methodologies that are consistent with the scope of my thesis. In
accordance to guidelines, this literature review provides a brief chronological history an update
of the current topic; including central factors or similar research by different authors. Due to the
overwhelming amount of research available, I formulated five evaluation questions to help me
select material that meet one or more of the criteria listed below.
Naturally, statistical data, interpretation, assumptions and conclusions are subject to human
error. The following Evaluation Questions below provide criteria that will measure the relevance
of the research I selected. Evaluation Question (1) asks if the research adds new insight, points of
information or significantly contributes to the existing body of knowledge. Question (2) asks if
the researcher clarifies his/her approach, presents clear documentation and improves the readers
understanding. Question (3) asks if he researchers work helps to establish a timeline or is theory
based. Question (4) attempts to measure if the researcher findings or discovery helped to
improve the quality of life or helps to solve a social problem. Question (5) asks if the new
findings contradict or disprove the existing views. As a student evaluator, I summarized the
professional articles; highlighting key elements that satisfy the underlying questions of
relevancy, that I might incorporate into my thesis. In summary, this review includes a brief
timeline, the evolving work stress theory, observations and selected articles.
Brief Historical Timeline.
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America experienced the turbulence of World Wars I and II from 1914 until its abrupt
end in 1942. Consequently drafting nearly a million (18-30) year old men to foreign countries
caused the decline of the Agricultural age. Ironically, 650 thousand soldiers returned to work in
the same factories that ounce manufactured weapons of war. Although unprepared for the strain
of the Industrial explosion, “management” benefited from a workforce trained to work long
hours for minimal pay. Behaviorist learned from previous social scientist that this population
produced ideal samples to test their theoretic hypotheses. Theorist such as B.F. Skinner and Karl
Marx established the basic correlation between work and stress as early as 1750. Circa 1860 Dr,
Virginia Hill-Rice published Theories of Stress and Its Relationship to Health. Dr Hill-Rice
established that stress is as potentially poisonous as an internal injury, thus harmful to the human
condition (Oxford Medical Journal, 1964). In 1936 Hans Selye, a young medical student at the
University of Prague expanded Dr. Hill-Rice’s work. Dr. Selye published The Stress Response
Theory (SRT) in the Oxford Journal (Selye, 1936). Dr. Selye’s findings in 1976 proposed a
triadic model as the basis for his work included the adrenal cortex and how stress affects the
brain no matter what the stimulus. Dr. Selye’s study substantiated the definition of stress by
medically disproving the commonly held beliefs about stress. Dr. Selye wrote “Stress is not 1.
Simply nervous tension; it can occur in organisms without the nervous system ever being
effected, as in patients that have been anesthetized. 2. (SRT) introduced the notations of “Coping
Methods” and “Stressor” whenever stress presents itself emergency discharges of hormones from
the adrenal medulla that can be measured (Tache & Selye, 1976).
The Evolution of Stress Theory in the Work Place.
13
During the time frame of (1950-1960) work stress was equally attributed to the difficulty
of the job and the individual’s inability to perform the given task. Later in 1978, when Dr. Terry
Beehr and John Newman published their article in the Journal of Personnel Psychology entitled,
Job Stress, Employees Health and Organizational Effectiveness: A Facet Analysis, Model and
Literature Review.” The co-authors first studied the research of the previous decade. They later
pioneered the study that concluded that workplace-imposed stress is the single most detrimental
factor, affecting the well-being of the labor force (Beehr and Newman, 1978). Beehr and
Newman verified their findings both subjectively and objectively. The results demonstrated the
tendencies of frequency and severity identified “stress” as a key contributor of employee health
problems. Newman wrote a series of articles that outlined a laundry list of complaints lodged by
employees over a three year cycle. Newman states that” the most common complaint was lower
back pain and migraine headaches” (Beehr and Newman, 1978). The research also includes
medical statistics collected from the National Mental Health Center (NMHC). The NMHC
reported that of the 120 doctors that received questionnaires, 91 doctors completed and returned
them. The study findings calculate that 75% of the medical surveys completed confirmed that 90
% of their in patient visits were treated for stress caused illness such as headaches, high blood
pressure, heart problems, skin conditions arthritis, depression and anxiety ((Beehr and Newman,
1978). Stress studies were popular from 1900 until the late 1980’s. Sociologists shifted their
interest to a variety of topics. This social shift unfortunately created enormous gaps in stress
theory research that today’s social scientist must work tediously to fill in.
Observation: A The student researcher observes that Dr. Terry Beehr and John
Newman published their article in the Journal of Personnel Psychology entitled. Job
Stress, Employees Health & Organizational Effectiveness: A Facet Analysis, Model and
14
Literature Review investigated 30 published studies. A majority of the research
conducted blind studies and other submissions combined direct observation with survey
based interviewing and reported their results over decades. The study acknowledged its’
limitations and constraints of time and human accountability.
The aforementioned research best met criteria for Evaluation Questions (1) and (3) such
that it significantly contributes to the existing body of knowledge and the researchers
helped to establish a timeline respectively. While the article was well written and
contained several points of interests, it lacked strong supporting examples in the area of
Organizational Effectiveness, as referenced in its title. The section made casual mention
of 3 of the 4 classic organization assumptions. Also, the section omitted assumption (3)
that holds together the organizational framework (see footnote). In reference to the
article’s potency, I assign a value of 1.5 on a scale of (1-3). The material only met two of
the five criterions. However this article still contains enough substance to validate potions
of my thesis. The strength of this research is that it adequately provides historical
reference and adds to the reader’s knowledge. This article may be best utilized in the
abstract as it retraces the root definition of the phrase stress theory.
Footnote: Assumption (3) when the fit between the individual and organization is poor, one or more will suffer.
Individuals will be exploited or will seek to exploit the organization, or both. Classics of Organizational Theory Pg.
150 (Bowman and Deal, 2003).
Theories of Psychological Stress at Work.
Dr. Cary L. Cooper, Phillip J. Dewe and Michael P. Driscoll completed a 12 year study at
the School of Social Psychology University of Columbia. The study utilized data collected from
both direct interviews with employees and management who were asked control questions to
15
ascertain when, where, how and the severity of the stress they suffered. The statistical results
were compiled in a manual published in 2001, entitled Theories of Psychological Stress at Work
(Cooper, Dewe and Driscoll, 2001). The manual clarifies”… in order to understand different
theories and give them a sense of time, place and meaning, we attempted to explore them against
changes in how stress has been redefined”… the study further explains that …exploring stress
theory this way gives a historical sense for why these theories have prevailed over time”
(Cooper, Dewe and Driscoll, 2001).
The essential aim of the manual is to convince the scientific community to broaden its view
when defining stress and its evolutionary role in the workplace. The manual meticulously dates
the various characterizations of the stress theory progressing through the stages of our
understanding with the research representing emphasis of the time period (Cooper, Dewe and
Driscoll, 2001). Additionally the comparative study found”… an assortment of definitions from
the employee group and the manager group; depending on their own agendas, were influenced
by social, political or economic motivators. Contrary to the earlier stagnant view that the effect
of stress is always negative, the manual recommends that we view stress as an ever-evolving
word that can in certain situation be thought of as a positive motivator rather than a stressor
(Cooper, Dewe and Driscoll, 2001).
Observation: B. The student researcher observed Dr. Cary L. Cooper, was lead
researcher of Theories of Psychological Stress at Work. The manual was
published in association with the School of Social Psychology University of
Columbia in 2001. It was also observed that Dr. Phillip J. Dewe and Michael P.
Driscoll served as assistant researchers. The data collection method was direct
16
interview with employee and managers randomly for 12 years. The aim of the
study was to retrace the evolutionary steps the Stress Theory Model has taken and
identify similar theory. The study was conclusive as it credited and properly cited
the founders of earlier versions of the term.
The review best met the requirements of evaluation questions (1) and (3) such that
it contributed to existing knowledge and helped to establish a historical timeline
for the Stress Theory respectively. The article was well written, the purpose and
process was documented with clear explanations. The study highlighted
functional and professional definitions. Note that the while the researchers
adequately satisfied their expectation, the study was focused around one of the
most researched theories in the social service arena. A critique of the topic’s
purpose is that it was linear and one dimensional. Another critique is that the topic
and approach did not offer sections of scientific augment. There was (2)
limitations; large amounts of the collected data was lost or destroyed over a 12
year period and professional standards may have been overlooked due to financial
restraints. The strength of the article was poor, while it demonstrated to the
scientific community the value of preserving the foundations of our professional
academic organizations as they attempt to improve the social condition. The
material met (2) out of (5) criterions and I assign the work a vale of 1.5 on a scale
of (1-3). I will incorporate this article into a section of my thesis to strengthen the
origin of the Stress Theory and its many applications.
17
The Role of Gender in the Workplace Stress: A Critical Review.
Doctorate Candidate Kristina Gyllensten and Professor Stephen Palmer published,
Gender Stress in the Workplace, in the Health Education Journal. The research opens with an
explanation of stress. “A cognitive definition of stress is that stress occurs when the perceived
pressure exceeds your perceived ability to cope”. Gyllensten and Palmer’s innovative findings
suggest” that working is generally positive health for women and men, however it has been
suggested that gender may be an important demographic characteristic to consider in the
experience of stress” (Gyllensten and Palmer, 2005). The research cross referenced a scientific
database and found a meta-analysis containing fifteen studies all”… concluding that gender bias
has no relevance when it comes to differences in gender stress at the workplace” (Gyllensten and
Palmer, 2005). The authors point out that the research used in the analysis had several limitations
of which included the lack of information on reliability and validity of the stress measures.
Despite the methodological limitations in contrast the authors of the study in question assert that
the burden of proof lies in the hands of those claiming that gender bias does not exists
(Gyllensten and Palmer, 2005). “This” study explores specific examples to determine whether
there is a difference in the types and severity of workplace stress. The research evaluates the
theory concerning working women and the stressors of ‘multiple roles’, ‘lack of career progress’
and discrimination and stereotyping’. It’s important to cite specific limitations that may cause
bias because men who conduct interviews with women may not have been trained to accurately
interpret the answers, furthermore male scientist usually treat woman like a homogeneous group
ignoring race, ethnicity and socioeconomic status (Gyllensten and Palmer, 2005).
18
Observation: C. The student researcher observes that lead researcher Kristina
Gyllensten, was a doctoral student at City University, and published this article as part of her
Thesis. The Role of Gender in the Workplace Stress: A Critical Review. Also Professor Stephen
Palmer served as chairperson of the psychology Department at City University., guiding and
overseeing research students submitting work in the Nation Psychology Journal Review. The
Research Design is called Systematic. A major database was used to select several Meta analyses
that investigated gender workplace stress. The aim was to find stressors that affect women
differently than men. In summary, the results indicated that women reported higher levels of men
and several studies reported no conclusive evidence to support that women suffer from stress to a
greater degree than men. The study implies that limitations may have been caused by bias in two
areas. 1. The men administering the questions may not have been trained to properly interpret the
responses. 2. Reported Aliments may have been pre-existing. This article best met the criteria of
evaluation (2), (4) and (5) such that it adds new insight; helps to improve the quality of life and
findings contradict the existing view respectfully.
The article was well written and argues stress theory from the female perspective. Although it
sounded logical, the hypothesis that women undergo additional stress when placed in multiple
roles, lack career progress and discrimination at the work place was inconsistent. In review of the
scientific procedure section, the independent and dependent variables were not clearly specified.
The material met 3 out of 5 criteria and will contribute greatly by supplying a range of different
pathways work stress manifests itself. I assign a value of 2.5 on a scale of (1-3).
Review and Metanalysis
19
Michal E. Barak, Jan A. Nissly and Amy Levin formed a research group within
the School of Psychology at the University of Southern California. They compiled and analyzed
past and current work trends, with the goal of assembling a new edition of the Social Work and
Human Service textbook (Barak, Nissly and Levin, 2012). The group used PsycInfo, a
comprehensive database that cross referenced 55 scholarly publications in psychology and
related fields of study. This method helped to select 25 reports reflective of the proper scope and
tone. They were particularly interested in studies including the Department of Child Welfare,
Family Services and a Social Service sites that allocate cash and food vouchers because they
reported the highest ratios of turnover and termination. The group learned not to overlook
seemingly insignificant factors. “Burn-out” within different work areas were consistent despite,
education, job description, rate of pay among employees with 1 - 5 years experience (Barak,
Nissly and Levin, 2012). In the attempt to reduce biases and limitations when isolating
independent variables, employees reporting burnout were divided into random groups of job
description and work cites. The overwhelming similarities were 1.the length of time new
employees complained about stressful work environments. 2. Ever- increasing caseload with
unrealistic deadlines. 3. Unsympathetic supervisor threatening termination. Strong correlations
between the lack of stress prevention programs and elevated stress levels in the workplace were
noted. The statistical data for reported work stress in a random test group of employees equaled
82.3% percent, while mangers report unbearable stress levels at 64.8% (Barak, Nissly and Levin,
2012).
Observation: D The student researcher recognizes the distinguished
group of educators in the field assembled at the University of Southern California. Also the
broad area of study was review using the database research method. This tool was used to study
20
the previous mistakes documented in past research and apply the recommendation aligned with
the goals of improving the work atmosphere. The nature of this wide-spread study presents
several limitations that question the validity of its findings. 1. The social advocate has a tendency
to adopt stress directly from the client(s) assigned to them. 2. The clients to qualified advocates
promotes work overload and reduces the advocate’s sense of accomplishment. 3. Frequently high
turnover rates and job insecurity inhibit longevity and mastery of job description. 4. The gap
between policy and actual practice is immeasurable, but adds to employee stress (Barak, Nissly
and Levin, 2012). The researcher notes that”… a slight oversight in minor details like increasing
issues of punctuality or random patterns of absenteeism may be a result of employee stress”
(Barak, Nissly and Levin, 2012).
The research best met the criteria that satisfies evaluation questions (1), (2), (3), and
(4) such that it adds to the existing body knowledge, presents clear documentation increasing the
reader’s understanding, its theory based and it attempts to solve a social problem. This review
was well written as it examines the previous flaws and inconsistencies. The strength of this study
is that it takes advantage of predetermined stressors, predictors. A critical point is that this article
may benefit managers more than the social advocates they supervise. The material has met (4)
out of (5) criterions and will provide statistical, and theoretic structure in several areas of my
thesis.
Conclusion.
A Literature Review is by definition a professional examination of a group of
published works in a given discipline. While this process may be tedious and repetitive, it should
not be treated like a useless ritual. Simply, a researcher should investigate past and present works
21
to ensure authenticity and avoid the possibility of duplication. In addition a comprehensive
search may reveal a gap or flaw in the information to be explored. A theory or a valid finding can
also be incorporated into one’s thesis, if and only if the citation is documented properly. As a
student researcher, I selected four met- analyses and assessed the detrimental effects of stress in
the workplace. Without restating the obvious this procedure helped me to find empirical
evidence to support my thesis topic but also gave me the opportunity to practice the process of
professional research. I evaluated the author(s) methodologies in contrast with other works to
design a style of my own. The first article was referenced from several sources to establish a
functional origin and definition. The second article provided the theoretical content and
supported the existing body of knowledge. The third article expressed the different methods used
to measure social problems. The fourth article reflected the lack of work stress intervention that
led to the increase of through employee burnout. According to the guidelines, I arranged the
studies in chronological order, highlighted key points of information and proposed 5 evaluation
questions as criterion to measure the usefulness of the potential research articles. Finally I accept
the academic challenge to safeguard the professional etiquette of the distinguished group which I
seek entry into.
22
Chapter 3: Design & Methodology
The Health and Safety Executive provides organizations with The Management
Standards Tool that works in conjunction with the Management Standards used to determine
organizational stressors. The tool uses the survey the method through a thirty five item
questionnaire related to the six major stressors (discussed previously). This tool was used to
conduct the survey and its results for this thesis. It provides a broad indication to the sampled
organization on how staff has rated the leadership’s performance in the management of risks
associated with workplace stress. Each question carried a numerical value that is entered into a
spreadsheet application that takes the raw data and break down results into averages and
percentages.
The survey was announced to staff of an anonymous bank operations center. This
bank operations center is comprised of loan boarding/servicing staff, informational technology,
information security staff as well as their managers. The survey was announced by the operations
employees on a volunteer basis and one hundred responded. By coincidence, no managers
volunteered for this survey. The surveys were completed anonymously as demographics such as
gender, age, or race were not considered important in achieving the results. These details were of
no significance as the aim was to gauge the organization as a whole and not by groups of survey
takers.
The results were entered into the spreadsheet program where the spreadsheet was
designed to tabulate the value of each answer marked. The questions were weighted with a value
from 1-5, with 1 equal to “never” and 5 equal to “always”. The questions are based on HSE’s
Management Standards related with the six major workplace stressors and their management
23
which are: demand, control, support, relationships, role and change. (HSE, 2012) The survey
takers responded according to their personal experience within the organization. The survey is
provided in Appendix A.
24
Chapter 4: Results
The organization fared well in all management standards as all standards received an
average score of 3 or better out of the highest score possible of 5. The highest scoring
management standard in the survey was the Role standard which deals with employees being
clear on the scope of their role within the organization. This standard received and average score
of 4.3 out of the possible 5. The organization scored the lowest in the Demands standard.
Demand stressors speak on the workload, time constraints and working environment placed on
individual to complete tasks. Control was the second lowest scoring standard for this
organization. This standard is reflective on the amount of input employees feel they have in the
work that they do or the amount of amount of autonomy given to do the work. Autonomy leads
to engagement as an employee will feel more responsible in the work they produce. The results
of the survey can be seen in Figure 3.
25
Fig. 3 Analyis Tool Results by Management Standard
Human ResourcesInterventionRecommendations.
To mitigate the causes of organizational stress caused by demands. It is recommended
management make primary-level intervention. Primary-level management is hands-on in nature
aimed at curing or controlling the stressor at the source, which prevent optimal performance.
Primary level interventions are implemented by addressing the “microenvironment” where
system and tasks are overhauled and redesigned, works assignments are assessed and alternated
26
to best fit the work strengths of the employee. In this type of intervention role definition can be
realigned and communication of these roles can also be redefined. (Cooper, 2010 p.158)
It is important for organizations to understand that being overly zealous in productivity
targets can likely become counter-productive as employees who feel they cannot keep up with
these targets, will disengage and lose sight of organizational goals all together. HSE recommends
that management standards for demand stress should be:
 the organization provides employees with adequate and achievable demands in relation
to the agreed hours of work;
 people's skills and abilities are matched to the job demands;
 jobs are designed to be within the capabilities of employees; and
 employees' concerns about their work environment are addressed. (HSE,2012)
To address the issue of Control as a stressor it is recommended that management
implement strategies that promote empowerment.
Employee empowerment is a relatively new term in the business field. Human
resources professionals have seen this term become more popularized in the field, as these
professionals begin to study employee behavior in efforts of gaining more of an insight on
how to engage them and in turn make their work for satisfying. The end goal is retention. An
employee who is satisfied stays. Their knowledge and expertise are kept in house and the
employer profits and grows; a balance that too many employers may find hard to find. In an
environment where providing service requires knowledge, confidence and quick decision
making, an empowered employee is integral and very necessary.
Researchers have concluded that among the tools an employer can offer, autonomy or
the delegation of authority is one of the most effective in creating satisfied and engaged
27
employees. Management may feel that by empowering employees, they relinquish control
and leadership of the teams they lead. This does not have to be the case. Employee
empowerment must come from an environment where communication and trust are at the
forefront of the exchange. In his article, The Benefits of Employee Empowerment, Anthony
Emerson, president of the Credit Union League of Connecticut, confirms how this
communication and trust must be exchanged. “Management must be willing to communicate
every aspect of the business to its employees in an open and honest manner. This
communication may include: elements of the strategic plan, financial performance, key
performance indicators and daily-decision making.”
To begin a culture of empowerment within an organization, the organization as a whole
must be willing and ready to change. James R. Maxwell author of the journal article,
Management of Employee Empowerment, informs that this transformative change must begin
at the top with management. Maxwell delineates the steps in which this change must take
place to ensure success:
Phase 1- The leadership phase. This phase takes place when leadership recognizes the
need for a change. This phase is also the communication phase where leadership informs
employees thoroughly, why the change is necessary and who will be involved in this change
and the perceived benefits as the end result.
Phase 2-Maxwell calls this the commitment phase as this step will be dedicated to
gaining support from lower level management and teams who may be reluctant in evolving
from their older ways of management and delegation. Maxwell contends that without the
backing of management, an organizational change cannot be successful.
28
Phase 3- This phase is one of communication according to Maxwell. This also where two
major changes occur. Information no longer flows from top to bottom; it is readily available
for all within the organization. The decision making process is now as close to those doing
the actual work as possible.
Phase 4- The redesign consists of the optimization of work roles. The availability of
information now allows employees to see their work strengths and allows their jobs to be
redesigned and optimized for performance.
Phase 5- Maxwell calls this phase the reinforcement phase. The phase in which changes
will be reinforced and training & development programs are the priority. Maxwell also
suggests that this is the perfect phase where reward systems are redesigned.
Phase 6- The renewal phase according to Maxwell, is the phase where continues
improvement is reinforced as to not have working teams reach a plateau. (Maxwell, 2005)
There are no guarantees on the way to employee empowerment but the first and
most successful step will always be recognizing the need for it. Organizations must be
willing to give up the hierarchal ways of management and be willing to delegate some power
in order to boost morale and increase satisfaction and engagement.
29
Chapter 5: Conclusion
Based on research and study there is no question that people and health are tied to their
environments. As more and more information with scientific backing is published on stress, the
more certain it is that humans will find a way to combat it. Seeing as the effects of stress can
bring about dire consequences to the employee and the bottom line, it is imperative that
organizations take stress seriously, control stress and its effects within the work environment.
Stress is a condition that may never be eradicated from the human condition as it seems to be
inherent and necessary for human evolution. With focused human resources teams working with
leadership, addressing the causes, and educating the work environment on stress, its effects can
be curbed and managed appropriately and for the benefit of all.
Before implementing any organizational interventions to combat stress, leadership must
first assess the stressors in their line of work. These assessments will guide the interventions and
ultimately their interventions for the most efficient way to reduce the specific problem areas
within their organizations.
30
References
Absenteesim; The Bottom Line Killer. (n.d.). Circadian Technologies Inc.. Retrieved February 3,
2014, from http://www.circadian.com/images/pdf/CIRCADIAN_-_Absenteeism_-
_Bottom_Line_Killer.pdf
Azagba, S., & Sharaf, M. F. (2011). Psychosocial working conditions and the utilization of
health care services. BMC Public Health, 11, 7. Retrieved February 8, 2014, from
http://www.biomedcentral.com/content/pdf/1471-2458-11-642.pdf
Barak E. Michal, Nissly T. Jan and Levin Amy What Can We Learn from Past Termination and
Turnover among Social Service and Human Service Employees University of Chicago Press
2012 Vo. 34 No. 14
Beehr, T. A., & Newman, J. E. (1978). Job Stress, Employee Health, And Organizational
Effectiveness: A Facet Analysis, Model, And Literature Review. Personnel Psychology, 31(4),
665-699.
Berent, J., & Lemley, A. (2010). Work Makes me Nervous: Overcome Anxiety and Build the
Confidence to Succeed. Hoboken, N.J.: Wiley ;.
Bond, F., & Cooper, C. (2010). Options for the Management of Stress in the Workplace: An
Organizational Approach. Organizational Stress Management (2. rev. ed., 2. ed., pp. 158-161).
Basingstoke: Palgrave Macmillan.
Burke, R. J., & Cooper, C. L. (2010). Risky Business Psychological, Physical and Financial
Costs of High Risk Behavior in Organizations.. Farnham: Ashgate Publishing Group.
Cooper Carry, Dewe J. Phillip and Driscoll P. Michael Workplace Organizational Health and
Productivity National Health Journal 2007 Vo. 6 No. 23
Cooper, C. L., & Dewe, P. (2004). Stress: a brief history Malden, MA: Blackwell Publishing.
Emerson, A. L. (n.d.). The Benefits of Employee Empowerment. The Benefits of Employee
Empowerment. Retrieved February 27th, 2014 from http://www.cutimes.com/2012/02/15/the-
benefits-of-employee-empowerment?t=credit-union-management
Gyllensten B. Kristina and Palmer Stephan The Role of Gender in the Workplace A Critical
Review Health Educational Journal 2005 Vo 64 No 3
Health Care Costs 101: Slow Growth: A New Trend?. (2103, January 31). California Healthcare
Foundation. Retrieved February 7, 2014, from http://www.chcf.org/~/media/MEDIA%20LI
IBRARY%20Files/PDF/H/PDF%20HealthCareCosts13.pdf
Maxwell, J. R. (2005). Management of Employee Empowerment. Journal of Organizational
Culture, Communications and Conflict, 9(1), 61+. Retrieved from
http://go.galegroup.com/ps/i.do?id=GALE%7CA166935380&v=2.1&u=nu_main&it=r&p=AON
E&sw=w&asid=3200dbd1ff64c9477341b38302ff9be3
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Metlife. (2010). Working caregivers and employer health care costs. Retrieved from
https://www.metlife.com/assets/cao/mmi/publications/studies/2010/mmi-working-caregivers-
employers-health-care-costs.pdf
Rice V. H. Study of the Human Condition Price Waren Publishing New York , New York 1928
Pp. 126
Saratoga. (2006). Driving the bottom line: improving retention. White paper. Retrieved from
http://www.pwc.com/en_US/us/hr-saratoga/assets/saratoga-improving-retention.pdf
Sely Hans The Stress Theory Oxford Journal of Psychology 1936 Vo. 12 No. 2
Stress. (n.d.). University of Maryland Medical Center. Retrieved February 8, 2014, from
http://umm.edu/health/medical/reports/articles/stress
Tache Lazar and Selye Hans Reviewing the Stress Response Theory Oxford Journal of
Psychology 1976 Vo. 134 No. 12
Weir, Kristin. Evaluating Stress Related Employment The American Psychological Association
2013 Vo. 44 No. 8
What are the Management Standards. (n.d.). Management Standards for work related stress.
Retrieved February 14, 2014, from http://www.hse.gov.uk/stress/standards/index
32
33
34

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OccupationalStressanditsEffectsonProductivity

  • 1. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT Organizational Stress and its Effects on Productivity by Iranya Verduzco Thesis Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Science Human Resources Management National University
  • 2. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT Abstract In today’s global economy, organizations must produce faster and better than the competitor to stay ahead. With the pressure to compete, organizations must pass down these expectations to their employees. With the nation still reeling from the economic downturn of the past few years and jobs becoming scarce, employees are feeling the pressure of management’s expectations coupled with uncertainty of job security. These factors introduce high levels of stress to the work place. Workplace stress at different levels hinders productivity. Not only does stress affect the profit margins for an organization, but it can wreak on the mental and physical well-being of the employee who many times does not recognize the effects. The object of this study was to identify the most common types of stressors in the financial operations service environment as well as their sources and the mitigatory practices human resources professionals can put into place within the organization to handle this prevalent issue. The research also included conclusions on the effects of workplace stress on productivity, its cost to both the employee and the organization. Survey methods were used for this research and its results used as a sample for the organization.
  • 3. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT i Dedication This thesis is dedicated to my son Jaden who showed me the meaning of love the day he was born, taught me more than all of my college education ever could, and has given me more pride than any degree I could receive
  • 4. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT Table of Contents List ofFigures…………………………………………………………………………………………… iii Chapter 1: Introduction....................................................................................................................1 Research Problem and Objective .................................................................................................1 Contribution to the Discipline ......................................................................................................1 Assumptions and Limitations .......................................................................................................2 Defining Stress and Workplace Stress ..........................................................................................2 Causes of Workplace Stress..........................................................................................................3 Effects ofStress on Productivity and Cost to Organizations……………………………………….4 HowStress Affects the Body and Mind ……………………………………………………………..6 Sleep Deprivation and Cardiovascular System ………………………………………………..6 Immune System ………………………………………………………………………………….7 Gastrointestinal System …………………………………………………………………………7 Anxiety Disorders ………………………………………………………………………………..8 Healthcare Costs …………………………………………………………………………………….8 Chapter 2: Reviewofthe Literature …………………………………………………………………...11 BriefHistorical Timeline …………………………………………………………………………..11 The Evolution ofStress Theory in the Workplace……………………………………………….12 Observation A: ………………………………………………………………………………….13 Theories ofPsychological Stress at Work. ……………………………………………………....14 Observation B: ………………………………………………………………………………….15 The Role ofGender in the Workplace Stress: A Critical Review………………………………17 Observation C ………………………………………………………………………………….18 Reviewand Metanalysis………………………………………………………………………….18 Observation D: ………………………………………………………………………………....19 Conclusion ……………………………………………………………………………………….20 Chapter 3: Design & Methodology ……………………………………………………………………22 Chapter 4: Results ……………………………………………………………………………………...24
  • 5. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT Chapter 5: Conclusion………………………………………………………………………………29
  • 6. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT List of Figures Fig. 1 Absentee costs for sample organizations sizes…………………..pg. 6 Fig. 2 Payer Mix by Service Category ………………………………...pg. 10 Fig.3 Analyis Tool Results by Management Standard …………….....pg. 25
  • 7. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT Chapter 1: Introduction Stress seems to be a way of life in the business world. Tight deadlines, split second decisions, and workloads go hand in hand with stress. Many employees may erroneously believe it’s all in a day’s work, but this does not have to be the case. The problem with stress is that its effects on the mind and body are largely negative. These effects introduce a variety of ailments not only to the mind & body of the employee, but come at a great cost to the organization as stress impedes productivity. The American Institute of Stress (2014) estimates that stress costs American industries and estimated three hundred billion dollars stemming from accidents, sick days, and legal judgments among other consequences. The organization’s human resources professionals are tasked with recognizing the specific types of stress that come with the particular type line of work and how the organization can alleviate them. ResearchProblem and Objective By identifying the common types of stressors in this type of work environment, an organization is able to reduce stress and as a consequence, enhance productivity. The objective of this research is to identify the common causes of stress present in the organizations through survey method, its effects on the employee, and its link to reduced productivity. Finally, this research can offer organizational interventions that can be implemented in financial service environments to help alleviate stress. Contribution to the Discipline This research is intended to help both employees and organizational leaders understand the relationship between workplace stress and organizational development. This study will provide ideas on reducing stress through organizational interventions through the scope of the human resources management function.
  • 8. OCCUPATIONAL STRESS AND ITS EFFECTS ON PRODUCTIVIT Assumptions and Limitations The thesis assumes that all employees in financial operations environments are under stress to varying degrees. The research assumes that by analyzing the results of the survey given by the chosen employees of the financial operations centers, the sample results are representative of the population. This study was based on extensive research regarding workplace stress and personal experience of working in the financial operations services setting. One of the limitations of the proposed interventions is that they were never implemented. There is no empirical method of measuring the success or failure of the proposed interventions, and if stress was reduced or production increased due to their implementations. Since no interventions were implemented, it would be impossible to receive any feedback from employees who would be subject to said implementations. Defining Stress and Workplace Stress To understand stress in the work environment, stress must first be defined and understood. There are various definitions of stress that are dependent on the models and disciplines used to define them. As this research analyzes the effects of stress on the mind & body and as a consequence on work production, the definitions of stress will be given through the psychological/medical lens as well as through an organizational lens. The American Psychological Association (2014) defines stress as “the pattern of specific and nonspecific responses an organism makes to stimulus events that disturb its equilibrium and tax or exceed its ability to cope”. This is to say that stress is a reactionary state in response to stimulation beyond the body or mind’s capacity to handle it. This reaction essentially creates an imbalance that
  • 9. 3 seems to be prevalent in the American workforce. In its annual Stress in America Survey, the APA reports that out of 1,700 respondents, 80% contend that their stress has increased or remained the same in the past year (APA, 2013). This goes to prove that stress is a prevalent matter in the lives of Americans. The UK based Trade Unions Council (TUC) concludes that stress occurs when the demands placed on an individual by organizational needs, supersedes the capacity of the individual or the resources available to him. Stress also occurs when this workload outweighs the worker and time allotted to performs the tasks given (Stranks, 2005, p.2). Combined, these two definitions give us a broader view into stress in the workplace as a psychological state in which dysfunctional behavior is exhibited in response to an imbalance between demand and ability. Causes ofWorkplace Stress The U.K. based Health & Safety Executive (HSE) is a watch dog organization founded for the purpose of monitoring and reporting issues of workplace safety and illness. The goal of the organization is to reduce work related injuries and death by acting as an independent regulator in benefit of the public. The HSE (2012) has developed a set of organizational benchmarks entitled “The Management Standards for Work Related Stress.” these standards highlight the primary sources of work stress through six crucial areas of workplace design that are associated with the well-being and productivity of employees. The Management Standards contend that the six primary sources of work related stress are demands, control, support, relationships, role and change.
  • 10. 4 Demands- work that is assigned beyond the employee’s physical and mental capacity such as information overload and physical labor with added time pressures. Poor physical working environments also make up the demands type work stressors. Control- this stressor deals with the amount of input an employee has in making decisions on the work he/she does and in how they do it. Stringent restrictions on behavior can also bring about feelings of reduced control. Support- this is an issue of how much recognition an individual receives for the work they produce by the organization, supervisors and including colleagues. Support also deals with resources available to complete work and more importantly resources for career development. Relationships- poor relationships with supervisors or department heads, colleagues and subordinates as well as the relationship the organization has with its employees overall. Role- this stressor deals with how the organization clearly defines and individual’s role and scope, if role conflicts exist, and how level of responsibility an individual has over other employees. Change- this stressor deals with how large and small change is handled, managed and communicated within the organization. (Health & Safety Executive, 2012) Effects ofStress on Productivity and Cost to Organizations Increased levels of stress in the workplace can lead to a decline organization performance. This decline projects itself in different areas of productivity. Stress is a major factor in turnover rates in the workplace. Employees who are overwhelmed with work load or demands either resign to look for less stressful work or are too sick to continue working as a
  • 11. 5 result of occupational stress. PricewaterhouseCoopers (PWC), a multinational professional services firm published a human resources action plan fact in 2006 entitled, “Driving the Bottom Line: Improving Retention”. In the fact sheet, PWC determined that turnover rates can cost American employers about 12% of pretax earnings annually. (Saratoga, 2006). Work demands that cause an imbalance for an employee can also be a high source of stress. The economic downturn has caused organizations to cut their workforce even when workload remained the same. Employers are now tasked with delegating more work with less workers. Employees who are fortunate enough to keep their jobs must now bear redistribution of workload. Constant time constraints and unbalanced workloads can lead to more frequent absences from the work. In 2010, Met Life Market Institute surveyed over 17,000 of its employees who reported that their workload had increased noticeably in a twelve month period. (Metlife,2010). Employees feeling the pressures of demanding workloads may need to de-stress by taking a sick day. Absences come at great cost to employers every year. With no immediate replacements to take over the work of the absent employee, productivity for the day is at a standstill. Absenteeism come with huge costs to organizations each year. According to Absenteeism: The Bottom-Line Killer, a white paper publication of workforce solutions company Circadian, unscheduled absenteeism costs businesses about $3,600 per hourly employee, and a little less at about $2650 for salaried employees (Circadian, 2005). The numbers grow exponentially as staff size and pay vary by industry. Sick days also increase as
  • 12. 6 length of absences increase due to severity/reason. Fig 1. Absentee costs for sample organizations sizes (Circadian, 2005) How Stress Affects the Body and Mind As HSE outlines, workload is a primary cause of work stress. Workload includes, amount of work, poor working environments and added time pressures. Extended working hours a part of the stress type derived from workload. In the United States, employees in both hourly and salaried positions, are regularly working overtime/extended hours and the trend has steadily increased since 1970. Studies refer to overtime as 49 or more hours weekly (Burke & Cooper, 2010 p. 69) Negative effects of long works hours were notably studied in Japan where the term karoshi was coined. This term refers to sudden work death or death related to extreme work hours or illness caused by constant stress of extened work hours. Sleep Deprivation and Cardiovascular Systems . Among its negative effects, working long hours have been studied with serious results discovered. According to professors in Organizational Psychology and Behavior, long works hours have been found to be linked to cardiovascular problems as a result of constant high blood pressure and abnormal heart
  • 13. 7 rate. Stress due to long work hours that cause sleep deprivation which directly leads to chronic fatigue and lack of focus while in the workplace. This lack of focus leads to a higher risk of errors and accident margins in the workplace. (Burke & Cooper, 2010 p. 70-71) Not only is the cost physical for the employee, but it results in a domino effect that affects the organization exposing it to risk. Research data indicates insurance claims for stress related industrial accidents cost nearly twice as much as non stress related industrial accidents (Burke & Cooper, 2010 p. 71). Immune System. The University of Maryland MedicalCenter(UMM) has published multiple studies on stress and its negative effects on the body among its findings, UMM reports that response to stress, the brain releasese various hormones. Under regular conditions, these hormones regulate normal bodily functions, but under the effects of chronic stress, these hormones create a chemical imbalance in the body that many parts of the body. As chronic stress builds, a constant flood of hormones are released by the brain and the body responds. When experiencing acute stress, the immune system responds as if under attack and releases hormones to fight infection such as vital white blood cells. With no present infection to fight, the immune system and its fighting power are impaired when actually needed. (UMM, 2014) Gastrointestinal Conditions. The studies by UMM also conclude that brain and intestinal function are closely linked. Periods of prolonged exposure to stress, markedly disturb the digestive process. Stress is linked o the over production of digestive enzymes that cause pain. Irritable Bowel Syndrome (IBS), Stomach Ulcers, and Inflammatory Bowel Disease (IBD) have all been found to be exacerbated by stress. (UMM, 2014)
  • 14. 8 Anxiety Disorders. UMM suggests that in response to stress, many employees experience as response to the constant release of stress hormones in the hypothalamic-pituitary- adrenal (HPA) area of the brain disrupting normal levels of serotonin which is a hormone integral to feeling calm. (UMM, 2014) Anxiety presents itself in a range of ways from constant worry, to social detachment and even attacks of panic can plague employees. Some anxiety disorders can cause debilitating conditions for many and as a result cause an employee to take medical leave from work or even stop working permanently. Amy Lemley, coauthor of the book, Work Makes Me Nervous, suggests that anxiety can be brought on by real fears: public speaking, interaction with authority figures, organizational change, and others noticing fear or anxiety. Healthcare Costs. As stress and disease are further linked, the costs of treating these illnesses beg to be discussed. Stress not only impacts the physical body, but it can also be a factor in ever rising cost healthcare. Canadian researchers studied the connection between stressful work environments and the amount of doctor visits made by patients who are experiencing organizational stress. The findings were published in a 2011 medical article for Biomedcentral titled Psychosocial Working Conditions and the Utilization of Health Care Services. The study found that the research subjects studied who worked in higher stress occupations were seeing doctors for their symptoms at a 26% higher rate than those who held low stress jobs. Specialists were visited at a 27% higher rate than the lower stress employees. (Azagba & Sharaf, 2011). Seeing a doctor in the U.S. is not cheap especially for those who are not covered by health insurance.
  • 15. 9 The costs of seeking individual medical attention grow every year and the U.S. has among the highest health care rates in the world. The California Healthcare Foundation releases its annual report, Health Care Costs 101, on the rising cost of healthcare and its 2013 reports suggests these costs will continue on an upward trend. The cost American personal healthcare is estimated by this report to be 2.3 trillion dollars. Figure 2 breaks down expenditures by service category in the U.S. for research conducted through 2011. Not surprisingly for Americans, hospitalizations costs are estimated $28.1 billion in out of pocket costs, while physician and clinical services out of pocket costs at $52.3 billion. Prescription drugs cost Americans $45 billion in out of pocket expenses. (California Healthcare Foundation, 2013)
  • 16. 10 Fig 2. (California Healthcare Foundation, 2013)
  • 17. 11 Chapter 2: Review of the Literature Introduction The purpose of this literature review is twofold. Initially, the task of assessing the detrimental effects of stress in the work place involves careful review of past and present research that I might determine how broad or narrow to focus my topic. It is equally imperative to select research that utilities methodologies that are consistent with the scope of my thesis. In accordance to guidelines, this literature review provides a brief chronological history an update of the current topic; including central factors or similar research by different authors. Due to the overwhelming amount of research available, I formulated five evaluation questions to help me select material that meet one or more of the criteria listed below. Naturally, statistical data, interpretation, assumptions and conclusions are subject to human error. The following Evaluation Questions below provide criteria that will measure the relevance of the research I selected. Evaluation Question (1) asks if the research adds new insight, points of information or significantly contributes to the existing body of knowledge. Question (2) asks if the researcher clarifies his/her approach, presents clear documentation and improves the readers understanding. Question (3) asks if he researchers work helps to establish a timeline or is theory based. Question (4) attempts to measure if the researcher findings or discovery helped to improve the quality of life or helps to solve a social problem. Question (5) asks if the new findings contradict or disprove the existing views. As a student evaluator, I summarized the professional articles; highlighting key elements that satisfy the underlying questions of relevancy, that I might incorporate into my thesis. In summary, this review includes a brief timeline, the evolving work stress theory, observations and selected articles. Brief Historical Timeline.
  • 18. 12 America experienced the turbulence of World Wars I and II from 1914 until its abrupt end in 1942. Consequently drafting nearly a million (18-30) year old men to foreign countries caused the decline of the Agricultural age. Ironically, 650 thousand soldiers returned to work in the same factories that ounce manufactured weapons of war. Although unprepared for the strain of the Industrial explosion, “management” benefited from a workforce trained to work long hours for minimal pay. Behaviorist learned from previous social scientist that this population produced ideal samples to test their theoretic hypotheses. Theorist such as B.F. Skinner and Karl Marx established the basic correlation between work and stress as early as 1750. Circa 1860 Dr, Virginia Hill-Rice published Theories of Stress and Its Relationship to Health. Dr Hill-Rice established that stress is as potentially poisonous as an internal injury, thus harmful to the human condition (Oxford Medical Journal, 1964). In 1936 Hans Selye, a young medical student at the University of Prague expanded Dr. Hill-Rice’s work. Dr. Selye published The Stress Response Theory (SRT) in the Oxford Journal (Selye, 1936). Dr. Selye’s findings in 1976 proposed a triadic model as the basis for his work included the adrenal cortex and how stress affects the brain no matter what the stimulus. Dr. Selye’s study substantiated the definition of stress by medically disproving the commonly held beliefs about stress. Dr. Selye wrote “Stress is not 1. Simply nervous tension; it can occur in organisms without the nervous system ever being effected, as in patients that have been anesthetized. 2. (SRT) introduced the notations of “Coping Methods” and “Stressor” whenever stress presents itself emergency discharges of hormones from the adrenal medulla that can be measured (Tache & Selye, 1976). The Evolution of Stress Theory in the Work Place.
  • 19. 13 During the time frame of (1950-1960) work stress was equally attributed to the difficulty of the job and the individual’s inability to perform the given task. Later in 1978, when Dr. Terry Beehr and John Newman published their article in the Journal of Personnel Psychology entitled, Job Stress, Employees Health and Organizational Effectiveness: A Facet Analysis, Model and Literature Review.” The co-authors first studied the research of the previous decade. They later pioneered the study that concluded that workplace-imposed stress is the single most detrimental factor, affecting the well-being of the labor force (Beehr and Newman, 1978). Beehr and Newman verified their findings both subjectively and objectively. The results demonstrated the tendencies of frequency and severity identified “stress” as a key contributor of employee health problems. Newman wrote a series of articles that outlined a laundry list of complaints lodged by employees over a three year cycle. Newman states that” the most common complaint was lower back pain and migraine headaches” (Beehr and Newman, 1978). The research also includes medical statistics collected from the National Mental Health Center (NMHC). The NMHC reported that of the 120 doctors that received questionnaires, 91 doctors completed and returned them. The study findings calculate that 75% of the medical surveys completed confirmed that 90 % of their in patient visits were treated for stress caused illness such as headaches, high blood pressure, heart problems, skin conditions arthritis, depression and anxiety ((Beehr and Newman, 1978). Stress studies were popular from 1900 until the late 1980’s. Sociologists shifted their interest to a variety of topics. This social shift unfortunately created enormous gaps in stress theory research that today’s social scientist must work tediously to fill in. Observation: A The student researcher observes that Dr. Terry Beehr and John Newman published their article in the Journal of Personnel Psychology entitled. Job Stress, Employees Health & Organizational Effectiveness: A Facet Analysis, Model and
  • 20. 14 Literature Review investigated 30 published studies. A majority of the research conducted blind studies and other submissions combined direct observation with survey based interviewing and reported their results over decades. The study acknowledged its’ limitations and constraints of time and human accountability. The aforementioned research best met criteria for Evaluation Questions (1) and (3) such that it significantly contributes to the existing body of knowledge and the researchers helped to establish a timeline respectively. While the article was well written and contained several points of interests, it lacked strong supporting examples in the area of Organizational Effectiveness, as referenced in its title. The section made casual mention of 3 of the 4 classic organization assumptions. Also, the section omitted assumption (3) that holds together the organizational framework (see footnote). In reference to the article’s potency, I assign a value of 1.5 on a scale of (1-3). The material only met two of the five criterions. However this article still contains enough substance to validate potions of my thesis. The strength of this research is that it adequately provides historical reference and adds to the reader’s knowledge. This article may be best utilized in the abstract as it retraces the root definition of the phrase stress theory. Footnote: Assumption (3) when the fit between the individual and organization is poor, one or more will suffer. Individuals will be exploited or will seek to exploit the organization, or both. Classics of Organizational Theory Pg. 150 (Bowman and Deal, 2003). Theories of Psychological Stress at Work. Dr. Cary L. Cooper, Phillip J. Dewe and Michael P. Driscoll completed a 12 year study at the School of Social Psychology University of Columbia. The study utilized data collected from both direct interviews with employees and management who were asked control questions to
  • 21. 15 ascertain when, where, how and the severity of the stress they suffered. The statistical results were compiled in a manual published in 2001, entitled Theories of Psychological Stress at Work (Cooper, Dewe and Driscoll, 2001). The manual clarifies”… in order to understand different theories and give them a sense of time, place and meaning, we attempted to explore them against changes in how stress has been redefined”… the study further explains that …exploring stress theory this way gives a historical sense for why these theories have prevailed over time” (Cooper, Dewe and Driscoll, 2001). The essential aim of the manual is to convince the scientific community to broaden its view when defining stress and its evolutionary role in the workplace. The manual meticulously dates the various characterizations of the stress theory progressing through the stages of our understanding with the research representing emphasis of the time period (Cooper, Dewe and Driscoll, 2001). Additionally the comparative study found”… an assortment of definitions from the employee group and the manager group; depending on their own agendas, were influenced by social, political or economic motivators. Contrary to the earlier stagnant view that the effect of stress is always negative, the manual recommends that we view stress as an ever-evolving word that can in certain situation be thought of as a positive motivator rather than a stressor (Cooper, Dewe and Driscoll, 2001). Observation: B. The student researcher observed Dr. Cary L. Cooper, was lead researcher of Theories of Psychological Stress at Work. The manual was published in association with the School of Social Psychology University of Columbia in 2001. It was also observed that Dr. Phillip J. Dewe and Michael P. Driscoll served as assistant researchers. The data collection method was direct
  • 22. 16 interview with employee and managers randomly for 12 years. The aim of the study was to retrace the evolutionary steps the Stress Theory Model has taken and identify similar theory. The study was conclusive as it credited and properly cited the founders of earlier versions of the term. The review best met the requirements of evaluation questions (1) and (3) such that it contributed to existing knowledge and helped to establish a historical timeline for the Stress Theory respectively. The article was well written, the purpose and process was documented with clear explanations. The study highlighted functional and professional definitions. Note that the while the researchers adequately satisfied their expectation, the study was focused around one of the most researched theories in the social service arena. A critique of the topic’s purpose is that it was linear and one dimensional. Another critique is that the topic and approach did not offer sections of scientific augment. There was (2) limitations; large amounts of the collected data was lost or destroyed over a 12 year period and professional standards may have been overlooked due to financial restraints. The strength of the article was poor, while it demonstrated to the scientific community the value of preserving the foundations of our professional academic organizations as they attempt to improve the social condition. The material met (2) out of (5) criterions and I assign the work a vale of 1.5 on a scale of (1-3). I will incorporate this article into a section of my thesis to strengthen the origin of the Stress Theory and its many applications.
  • 23. 17 The Role of Gender in the Workplace Stress: A Critical Review. Doctorate Candidate Kristina Gyllensten and Professor Stephen Palmer published, Gender Stress in the Workplace, in the Health Education Journal. The research opens with an explanation of stress. “A cognitive definition of stress is that stress occurs when the perceived pressure exceeds your perceived ability to cope”. Gyllensten and Palmer’s innovative findings suggest” that working is generally positive health for women and men, however it has been suggested that gender may be an important demographic characteristic to consider in the experience of stress” (Gyllensten and Palmer, 2005). The research cross referenced a scientific database and found a meta-analysis containing fifteen studies all”… concluding that gender bias has no relevance when it comes to differences in gender stress at the workplace” (Gyllensten and Palmer, 2005). The authors point out that the research used in the analysis had several limitations of which included the lack of information on reliability and validity of the stress measures. Despite the methodological limitations in contrast the authors of the study in question assert that the burden of proof lies in the hands of those claiming that gender bias does not exists (Gyllensten and Palmer, 2005). “This” study explores specific examples to determine whether there is a difference in the types and severity of workplace stress. The research evaluates the theory concerning working women and the stressors of ‘multiple roles’, ‘lack of career progress’ and discrimination and stereotyping’. It’s important to cite specific limitations that may cause bias because men who conduct interviews with women may not have been trained to accurately interpret the answers, furthermore male scientist usually treat woman like a homogeneous group ignoring race, ethnicity and socioeconomic status (Gyllensten and Palmer, 2005).
  • 24. 18 Observation: C. The student researcher observes that lead researcher Kristina Gyllensten, was a doctoral student at City University, and published this article as part of her Thesis. The Role of Gender in the Workplace Stress: A Critical Review. Also Professor Stephen Palmer served as chairperson of the psychology Department at City University., guiding and overseeing research students submitting work in the Nation Psychology Journal Review. The Research Design is called Systematic. A major database was used to select several Meta analyses that investigated gender workplace stress. The aim was to find stressors that affect women differently than men. In summary, the results indicated that women reported higher levels of men and several studies reported no conclusive evidence to support that women suffer from stress to a greater degree than men. The study implies that limitations may have been caused by bias in two areas. 1. The men administering the questions may not have been trained to properly interpret the responses. 2. Reported Aliments may have been pre-existing. This article best met the criteria of evaluation (2), (4) and (5) such that it adds new insight; helps to improve the quality of life and findings contradict the existing view respectfully. The article was well written and argues stress theory from the female perspective. Although it sounded logical, the hypothesis that women undergo additional stress when placed in multiple roles, lack career progress and discrimination at the work place was inconsistent. In review of the scientific procedure section, the independent and dependent variables were not clearly specified. The material met 3 out of 5 criteria and will contribute greatly by supplying a range of different pathways work stress manifests itself. I assign a value of 2.5 on a scale of (1-3). Review and Metanalysis
  • 25. 19 Michal E. Barak, Jan A. Nissly and Amy Levin formed a research group within the School of Psychology at the University of Southern California. They compiled and analyzed past and current work trends, with the goal of assembling a new edition of the Social Work and Human Service textbook (Barak, Nissly and Levin, 2012). The group used PsycInfo, a comprehensive database that cross referenced 55 scholarly publications in psychology and related fields of study. This method helped to select 25 reports reflective of the proper scope and tone. They were particularly interested in studies including the Department of Child Welfare, Family Services and a Social Service sites that allocate cash and food vouchers because they reported the highest ratios of turnover and termination. The group learned not to overlook seemingly insignificant factors. “Burn-out” within different work areas were consistent despite, education, job description, rate of pay among employees with 1 - 5 years experience (Barak, Nissly and Levin, 2012). In the attempt to reduce biases and limitations when isolating independent variables, employees reporting burnout were divided into random groups of job description and work cites. The overwhelming similarities were 1.the length of time new employees complained about stressful work environments. 2. Ever- increasing caseload with unrealistic deadlines. 3. Unsympathetic supervisor threatening termination. Strong correlations between the lack of stress prevention programs and elevated stress levels in the workplace were noted. The statistical data for reported work stress in a random test group of employees equaled 82.3% percent, while mangers report unbearable stress levels at 64.8% (Barak, Nissly and Levin, 2012). Observation: D The student researcher recognizes the distinguished group of educators in the field assembled at the University of Southern California. Also the broad area of study was review using the database research method. This tool was used to study
  • 26. 20 the previous mistakes documented in past research and apply the recommendation aligned with the goals of improving the work atmosphere. The nature of this wide-spread study presents several limitations that question the validity of its findings. 1. The social advocate has a tendency to adopt stress directly from the client(s) assigned to them. 2. The clients to qualified advocates promotes work overload and reduces the advocate’s sense of accomplishment. 3. Frequently high turnover rates and job insecurity inhibit longevity and mastery of job description. 4. The gap between policy and actual practice is immeasurable, but adds to employee stress (Barak, Nissly and Levin, 2012). The researcher notes that”… a slight oversight in minor details like increasing issues of punctuality or random patterns of absenteeism may be a result of employee stress” (Barak, Nissly and Levin, 2012). The research best met the criteria that satisfies evaluation questions (1), (2), (3), and (4) such that it adds to the existing body knowledge, presents clear documentation increasing the reader’s understanding, its theory based and it attempts to solve a social problem. This review was well written as it examines the previous flaws and inconsistencies. The strength of this study is that it takes advantage of predetermined stressors, predictors. A critical point is that this article may benefit managers more than the social advocates they supervise. The material has met (4) out of (5) criterions and will provide statistical, and theoretic structure in several areas of my thesis. Conclusion. A Literature Review is by definition a professional examination of a group of published works in a given discipline. While this process may be tedious and repetitive, it should not be treated like a useless ritual. Simply, a researcher should investigate past and present works
  • 27. 21 to ensure authenticity and avoid the possibility of duplication. In addition a comprehensive search may reveal a gap or flaw in the information to be explored. A theory or a valid finding can also be incorporated into one’s thesis, if and only if the citation is documented properly. As a student researcher, I selected four met- analyses and assessed the detrimental effects of stress in the workplace. Without restating the obvious this procedure helped me to find empirical evidence to support my thesis topic but also gave me the opportunity to practice the process of professional research. I evaluated the author(s) methodologies in contrast with other works to design a style of my own. The first article was referenced from several sources to establish a functional origin and definition. The second article provided the theoretical content and supported the existing body of knowledge. The third article expressed the different methods used to measure social problems. The fourth article reflected the lack of work stress intervention that led to the increase of through employee burnout. According to the guidelines, I arranged the studies in chronological order, highlighted key points of information and proposed 5 evaluation questions as criterion to measure the usefulness of the potential research articles. Finally I accept the academic challenge to safeguard the professional etiquette of the distinguished group which I seek entry into.
  • 28. 22 Chapter 3: Design & Methodology The Health and Safety Executive provides organizations with The Management Standards Tool that works in conjunction with the Management Standards used to determine organizational stressors. The tool uses the survey the method through a thirty five item questionnaire related to the six major stressors (discussed previously). This tool was used to conduct the survey and its results for this thesis. It provides a broad indication to the sampled organization on how staff has rated the leadership’s performance in the management of risks associated with workplace stress. Each question carried a numerical value that is entered into a spreadsheet application that takes the raw data and break down results into averages and percentages. The survey was announced to staff of an anonymous bank operations center. This bank operations center is comprised of loan boarding/servicing staff, informational technology, information security staff as well as their managers. The survey was announced by the operations employees on a volunteer basis and one hundred responded. By coincidence, no managers volunteered for this survey. The surveys were completed anonymously as demographics such as gender, age, or race were not considered important in achieving the results. These details were of no significance as the aim was to gauge the organization as a whole and not by groups of survey takers. The results were entered into the spreadsheet program where the spreadsheet was designed to tabulate the value of each answer marked. The questions were weighted with a value from 1-5, with 1 equal to “never” and 5 equal to “always”. The questions are based on HSE’s Management Standards related with the six major workplace stressors and their management
  • 29. 23 which are: demand, control, support, relationships, role and change. (HSE, 2012) The survey takers responded according to their personal experience within the organization. The survey is provided in Appendix A.
  • 30. 24 Chapter 4: Results The organization fared well in all management standards as all standards received an average score of 3 or better out of the highest score possible of 5. The highest scoring management standard in the survey was the Role standard which deals with employees being clear on the scope of their role within the organization. This standard received and average score of 4.3 out of the possible 5. The organization scored the lowest in the Demands standard. Demand stressors speak on the workload, time constraints and working environment placed on individual to complete tasks. Control was the second lowest scoring standard for this organization. This standard is reflective on the amount of input employees feel they have in the work that they do or the amount of amount of autonomy given to do the work. Autonomy leads to engagement as an employee will feel more responsible in the work they produce. The results of the survey can be seen in Figure 3.
  • 31. 25 Fig. 3 Analyis Tool Results by Management Standard Human ResourcesInterventionRecommendations. To mitigate the causes of organizational stress caused by demands. It is recommended management make primary-level intervention. Primary-level management is hands-on in nature aimed at curing or controlling the stressor at the source, which prevent optimal performance. Primary level interventions are implemented by addressing the “microenvironment” where system and tasks are overhauled and redesigned, works assignments are assessed and alternated
  • 32. 26 to best fit the work strengths of the employee. In this type of intervention role definition can be realigned and communication of these roles can also be redefined. (Cooper, 2010 p.158) It is important for organizations to understand that being overly zealous in productivity targets can likely become counter-productive as employees who feel they cannot keep up with these targets, will disengage and lose sight of organizational goals all together. HSE recommends that management standards for demand stress should be:  the organization provides employees with adequate and achievable demands in relation to the agreed hours of work;  people's skills and abilities are matched to the job demands;  jobs are designed to be within the capabilities of employees; and  employees' concerns about their work environment are addressed. (HSE,2012) To address the issue of Control as a stressor it is recommended that management implement strategies that promote empowerment. Employee empowerment is a relatively new term in the business field. Human resources professionals have seen this term become more popularized in the field, as these professionals begin to study employee behavior in efforts of gaining more of an insight on how to engage them and in turn make their work for satisfying. The end goal is retention. An employee who is satisfied stays. Their knowledge and expertise are kept in house and the employer profits and grows; a balance that too many employers may find hard to find. In an environment where providing service requires knowledge, confidence and quick decision making, an empowered employee is integral and very necessary. Researchers have concluded that among the tools an employer can offer, autonomy or the delegation of authority is one of the most effective in creating satisfied and engaged
  • 33. 27 employees. Management may feel that by empowering employees, they relinquish control and leadership of the teams they lead. This does not have to be the case. Employee empowerment must come from an environment where communication and trust are at the forefront of the exchange. In his article, The Benefits of Employee Empowerment, Anthony Emerson, president of the Credit Union League of Connecticut, confirms how this communication and trust must be exchanged. “Management must be willing to communicate every aspect of the business to its employees in an open and honest manner. This communication may include: elements of the strategic plan, financial performance, key performance indicators and daily-decision making.” To begin a culture of empowerment within an organization, the organization as a whole must be willing and ready to change. James R. Maxwell author of the journal article, Management of Employee Empowerment, informs that this transformative change must begin at the top with management. Maxwell delineates the steps in which this change must take place to ensure success: Phase 1- The leadership phase. This phase takes place when leadership recognizes the need for a change. This phase is also the communication phase where leadership informs employees thoroughly, why the change is necessary and who will be involved in this change and the perceived benefits as the end result. Phase 2-Maxwell calls this the commitment phase as this step will be dedicated to gaining support from lower level management and teams who may be reluctant in evolving from their older ways of management and delegation. Maxwell contends that without the backing of management, an organizational change cannot be successful.
  • 34. 28 Phase 3- This phase is one of communication according to Maxwell. This also where two major changes occur. Information no longer flows from top to bottom; it is readily available for all within the organization. The decision making process is now as close to those doing the actual work as possible. Phase 4- The redesign consists of the optimization of work roles. The availability of information now allows employees to see their work strengths and allows their jobs to be redesigned and optimized for performance. Phase 5- Maxwell calls this phase the reinforcement phase. The phase in which changes will be reinforced and training & development programs are the priority. Maxwell also suggests that this is the perfect phase where reward systems are redesigned. Phase 6- The renewal phase according to Maxwell, is the phase where continues improvement is reinforced as to not have working teams reach a plateau. (Maxwell, 2005) There are no guarantees on the way to employee empowerment but the first and most successful step will always be recognizing the need for it. Organizations must be willing to give up the hierarchal ways of management and be willing to delegate some power in order to boost morale and increase satisfaction and engagement.
  • 35. 29 Chapter 5: Conclusion Based on research and study there is no question that people and health are tied to their environments. As more and more information with scientific backing is published on stress, the more certain it is that humans will find a way to combat it. Seeing as the effects of stress can bring about dire consequences to the employee and the bottom line, it is imperative that organizations take stress seriously, control stress and its effects within the work environment. Stress is a condition that may never be eradicated from the human condition as it seems to be inherent and necessary for human evolution. With focused human resources teams working with leadership, addressing the causes, and educating the work environment on stress, its effects can be curbed and managed appropriately and for the benefit of all. Before implementing any organizational interventions to combat stress, leadership must first assess the stressors in their line of work. These assessments will guide the interventions and ultimately their interventions for the most efficient way to reduce the specific problem areas within their organizations.
  • 36. 30 References Absenteesim; The Bottom Line Killer. (n.d.). Circadian Technologies Inc.. Retrieved February 3, 2014, from http://www.circadian.com/images/pdf/CIRCADIAN_-_Absenteeism_- _Bottom_Line_Killer.pdf Azagba, S., & Sharaf, M. F. (2011). Psychosocial working conditions and the utilization of health care services. BMC Public Health, 11, 7. Retrieved February 8, 2014, from http://www.biomedcentral.com/content/pdf/1471-2458-11-642.pdf Barak E. Michal, Nissly T. Jan and Levin Amy What Can We Learn from Past Termination and Turnover among Social Service and Human Service Employees University of Chicago Press 2012 Vo. 34 No. 14 Beehr, T. A., & Newman, J. E. (1978). Job Stress, Employee Health, And Organizational Effectiveness: A Facet Analysis, Model, And Literature Review. Personnel Psychology, 31(4), 665-699. Berent, J., & Lemley, A. (2010). Work Makes me Nervous: Overcome Anxiety and Build the Confidence to Succeed. Hoboken, N.J.: Wiley ;. Bond, F., & Cooper, C. (2010). Options for the Management of Stress in the Workplace: An Organizational Approach. Organizational Stress Management (2. rev. ed., 2. ed., pp. 158-161). Basingstoke: Palgrave Macmillan. Burke, R. J., & Cooper, C. L. (2010). Risky Business Psychological, Physical and Financial Costs of High Risk Behavior in Organizations.. Farnham: Ashgate Publishing Group. Cooper Carry, Dewe J. Phillip and Driscoll P. Michael Workplace Organizational Health and Productivity National Health Journal 2007 Vo. 6 No. 23 Cooper, C. L., & Dewe, P. (2004). Stress: a brief history Malden, MA: Blackwell Publishing. Emerson, A. L. (n.d.). The Benefits of Employee Empowerment. The Benefits of Employee Empowerment. Retrieved February 27th, 2014 from http://www.cutimes.com/2012/02/15/the- benefits-of-employee-empowerment?t=credit-union-management Gyllensten B. Kristina and Palmer Stephan The Role of Gender in the Workplace A Critical Review Health Educational Journal 2005 Vo 64 No 3 Health Care Costs 101: Slow Growth: A New Trend?. (2103, January 31). California Healthcare Foundation. Retrieved February 7, 2014, from http://www.chcf.org/~/media/MEDIA%20LI IBRARY%20Files/PDF/H/PDF%20HealthCareCosts13.pdf Maxwell, J. R. (2005). Management of Employee Empowerment. Journal of Organizational Culture, Communications and Conflict, 9(1), 61+. Retrieved from http://go.galegroup.com/ps/i.do?id=GALE%7CA166935380&v=2.1&u=nu_main&it=r&p=AON E&sw=w&asid=3200dbd1ff64c9477341b38302ff9be3
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