Job Stress And Its Impact On Employee Performance In Arthur Barnett Ltd, Melbourne Australia

Literature Review

Question:

Discuss about the Applied Business Research for Arthur Barnett Ltd.

The research problem emerges because there are certain issues faced by employees in Arthur Barnett Ltd which is located in Melbourne branch, Australia. Arthur Barnett Ltd is one of leading Retail Company that delivers the superior products to their consumers from a very long time. There are a large number of employees who engaged in the branch of Arthur Barnett Ltd from last five months[1]. But, from last 2-3 month, they have been suffering from certain issues within an organization. It can be evaluated that whole productivity of company is worsening day by day. Another issue that is faced by employees is managers pushed them to work more. The company has placed fewer employees for a particular job which creates conflicts and complexities for performing the task in an appropriate manner[2].  

Along with this, it is considered that people get less compensation for overtime work and also getting fewer amounts in return for doing the work in the store. This research will help the organization to understand that productivity is declining due to stress at the workplace. It will also develop understanding regarding depth analysis of stress at the workplace and how its impact can be overcome[3]. Therefore, this research will use literature review to create effective knowledge about the concept of stress and helps the readers to eliminate this concern. For conducting the literature review, different peer-reviewed journal article will be used by a researcher.

Human resource is a significant element at the workplace as it may directly affect the productivity of that particular company. In the current business scenario, dynamic changes take place within an organization which can influence to get competitive and sustainable advantages. But, in the fast-paced world, these changes create different issues for employees in the particular workplace[4]. The concern which is faced by an organization may have a serious impact on the performance of employees. Moreover, if a workforce is stressful and dissatisfied then they cannot provide the good quality performance and work. For instance, those workforces who have fewer stress levels may get higher job satisfaction at the workplace[5].

There are several types of research which have emphasized on the behavior of a company such as job stress and its impact on the performance of employees. Both these factors play a vital role to assess and evaluate the result and productivity of a corporation. Job stress is defined as detrimental physical and emotional responses which can arise due to mismatch of the resources, capability, and needs of the employees with the job requirement. This type of stress is developed when a specific person become aware of the personal dysfunction[6]. It could be the result of certain circumstances that are ubiquitous in the workplace and are conveyed with psychological with physiological acts. This can create threats to employees at the workplace. In certain situation, it is analyzed that people who are engaging at the workplace may react with the non-productive physical. Employees can also demonstrate their emotional responses in case the characteristics of the task do not match with their capabilities, skills, resources, and expectation[7].

Types of Job Stress

It can be evaluated that the term employee performance indicates that a specific person can complete those projects which are predetermined by a corporation. As well as, this specific project is completed as per the standard of management. Along with this, optimum utilization of resources relies on the specific task of the company. It also stated that how employee’s stress has an impact on the optimum utilization of resources in the specific job scenario[8]. 

But, at the same time, formal service cannot be ignored in a company while performing entire activities. In this way, it can be stated that employees who performed formal activities may gain time to time experience regarding psychological and physical environment together with social factors which can demonstrate them to become extremely stressful[9].    

Stress can be two types which are favorable and negative stress. In this way, favorable stress is also called eustress and negative stress is also called distress. It is analyzed that when eustress exists at the workplace then it performs as a stimulator and improves the performance of the company. It also leads the workforces in a favorable way hence they can make required efforts which as essential for business growth and development[10].

It can be stated that while distress exists at the workplace then it may create several negative impacts on health along with the performance of workforces and other staff who are engaged in the particular branch of the corporation. From this, negative outcome will be obtained due to declining effectiveness of workforces and organization. In this way, it can be stated that workplace stress can raise the number of accidents for employees[11]. There is a number of studies which define the concept regarding workplace stress and its impact on the employee’s performance. All these research demonstrated a single concept that performance can be improved via offering better job circumstances and avoiding the stress. Further, it has become an essential part of the recent business phenomenon. To understand the impact of job stress on the job performance, it is required to understand the different type of stress[12].  

There are different studies which indicate that whether or not job stress could be avoided and what can be the impact of this on organization performance. Job stress has become one of the major topics which are widely happened in all organization as it has a direct and huge impact on the mental competencies of workforces. The job stress can obstruct the organization’s performance and can also impact on the effectiveness of the particular branch[13]. It is evidence that job stress within a company may directly associate with the work performance of the different person who engaged in an organization. In this way, job stress could be incorporated as independent variable and employee’s performance could be considered as a dependent variable. But, there are several factors which are affected by work stress as compared to employee’s performance which creates less encouragement amid workforces with respect to task, and also reduces the employee’s turnover[14].  

Employee Performance

It can be evaluated that when an individual goes through stress at the workplace and job environment then it declines the competencies of making a judgment. Because, in this case, employees do not create self- motivation and encouragement for making judgment hence they do not make new and innovative ideas regarding issues. In most of the circumstances, it is observed that stress does not associate with mental competencies and the internal state of mind however it has an impact on the activities of distinct people who deal at the workplace. Since, when a person suffering from stress then there are several thoughts come to the mind of a person[15]. These beliefs can depend on different circumstances and the environment by which person deals. Moreover, all these beliefs and perceptions that come to the people’s mind can be either bad or good and can either build or destroy the behavior and attitudes of that person. This is the big reason that why a lot of people emphasized on the behavior[16]. In this way, it can be stated that good or bad behavior can lead to making the change into practices which could be demonstrated by other people and these people can be engaged outside and inside the organization. This is the main cause of using different motivational theories at the workplace because it can aid to overcome the stress issues and also support to enhance the attitude with respect to innovative ideas and initiatives within an organization[17].

There are a large number of companies which decided to implement the reward strategies for their employees which they have been expecting from them. But, at the same time, there are still certain corporations which do not want to implement this strategy. Therefore, employees makes negative image regarding the company’s policy. At the same time, it creates job stress among employees and also ultimately impact on their performance. In certain condition, it is analyzed that job stress can improve the performance of employees and also improves the competencies of the employees[18]. This situation rises while manager declines a given deadline and increase the degree of stress among employees for working harder and attain the goals efficiently in a specified duration. In this circumstance, they become extremely encouraged and inspired towards work even make harder practices next time hence they can accomplish the goals in an effective way. Therefore, it can be stated that there is a large number of companies who observes that by putting the reasonable stress amount in people’s mind, they can enhance their performance and overall productivity in an efficient and effective way[19]. But, the organization should understand from this circumstance that all workforces are not alike in the workplace and hence they cannot take stress in a similar manner. Thus, it can be stated that this situation can discourage the certain employees and adverse impact on the health of people. As a result, they might not be competent to meet their accountabilities in an appropriate way[20].

Impact of Job Stress on Employee Performance

On the other hand, the main cause of job stress at the workplace is that there are several interactions have done in specific branch and the interaction incorporates both people and environment in which these people are performing. In this way, it is analyzed that while job stress is raised due to ineffective interaction then it can generate adverse perspectives in people’s mind. In this way, it can be stated that when an individual has built an adverse perception in the mind then physical condition of people will also go through alteration and will persuade then in several manners by both psychologically and physiologically[21]. When workforces have bad mental and physical condition then it ensures that they will not be competent to give their best towards job task and it will ultimately impact on the performance of people. Along with this, people should feel protected as well as safe regarding their task to do well but if an individual is suffering from job stress then they cannot feel safe and secure in their projects. Hence, it could be recommended that all companies should assess the degree of stress among their workforces as their performance is lucrative for a corporation. 

Workplace stress can be originated from different factors. This can be annoying co-workers, angry customers, long commutes, demanding boss, hazardous situation, never-ending workload, and rebellious students. Furthermore, employee’s performance is also influenced by characteristics of stressors like finances, family relationships, and a shortage of sleep created due to fears and anxieties regarding future. In addition, how a company can handle the impact of stress is relying on whether it is easier to alter the circumstance and change the attitude towards job stress[22].

It can be evaluated that favorable side of stress can lead and encourage the employee to perform their task more rapidly with respect to awaiting deadlines. In addition to this, it can be evaluated that inadequate peer support, overwhelming workload, and too many demands can create job stress among employees[23]. But, it is analyzed that contribution of sense of annoyance and panic can create complexities to do the task of employees in sufficient time. Job stress can create a condition of overtime, having to take home based work. As well as, stress can unable employees for time management and can also decline their efficiency towards the work. Together with, job stress may adversely affect the commitment and loyalty of employees at the workplace[24]. 

Reward Strategies

Followings are research question which would be addressed through this research:

1. What are the causes of job stress at the workplace?
2. What is the impact of job stress on the employees?

Conclusion

From the above interpretation, it can be concluded that job stress can be incorporated as an essential element with respect to employee’s performance. It can be evaluated that when an employee is not acting effectively then it can impact on the overall company’s performance and organization will not be competent to accomplish its targeted objectives. From the literature review, it can be summarized that the employee’s performance in Arthur Barnett Ltd, Melbourne is declined because the company had been putting the high extent of stress among employees with respect to revenues, turnover, and marketing. Besides this, it can be illustrated that company does not try to overcome the stress as it led to an impact on the psychological and physiological health. Consequently, it declines the job performance of employees at the workplace. 

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