THE EFFECT OF EMPLOYEE JOB STRESS ON ORGANIZATIONAL PERFORMANCE
ABSTRACT
The study examined the effect of employee job stress on organizational performance of SUNU Assurances Nigeria Plc in Lagos state. The study employed the survey design and the purposive sampling technique to select 450 staff across management, senior and junior level. A well-constructed questionnaire, which was adjudged valid and reliable, was used for collection of data from the respondents. The data obtained through the administration of thequestionnaires was analyzed using the Pearson correlation analysis. The results showed that there is positive and significant relationship between Intense workload and productivity of SUNU Assurances Nigeria Plc in Lagos state (r=0.772; p<0.05). Also, a positive and significant relationship was found between Work-life balance and service delivery of SUNU Assurances Nigeria Plc in Lagos state (r=0.896; p<0.05). Furthermore, Job insecurity has significant effect on achievement of SUNU Assurances Nigeria Plc in Lagos state (r=0.772; p<0.05). The results were found to be consistent with empirical findings of past studies in literature. It is therefore concluded that employee job stress has a significant effect on organizational performance in SUNU Assurances Nigeria Plc in Lagos state. The findings of the study sowed tat, SUNU Assurances Nigeria Plc should employ more employee so each employee giving helping and will be easier; SUNU Assurances Nigeria Plc should established department for complain in every branches; Bank employees should be adequately remunerated through attractive compensation packages in order to avoid job neglection in the firm; Management should lead by example. Management should adhere to laid down rules and regulations in the firm; SUNU Assurances Nigeria Plc should not allow employees do more tan the exact job description apportioned.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Stress is a universal element experienced by employees around the globe (Argyle & Henderson, 2015). Stress has become major problem for employer particularly in developing nations where the employer does not realize the impact of stress on employee performance (Ariani, 2013). It is important to recognize and address properly job stress because it badly affects the employee’s mental and physiological health (Aronsson, 2010). Stress at work is seen as one of the major psychosocial risks of work (Ashfaq, Mahmood & Ahmad, 2013). Work-related stress is one of the problems confronting employees. It is of great concern to employees, employers and psychologists, because of its high growing rate in ill- health, as a result of long working hours of some employees (Baizhan & Croome, 2017). Stress has continued to jeopardize the performance of organisations and reduce employee involvement and negatively affect individuals at corporate levels (Sayeed, 2015). The experience of work and stress is certainly not new for employees continue to experience stress as a result of poor environmental conditions, political uncertainty, poor working conditions and extreme levels of poverty (Sayeed, 2015). Total African insurance premiums at south Africa declined from approximately US$ 72 billion in 2012 to US$ 61 billion in 2016. In US dollar terms, life and non-life markets in South Africa were among the hardest hit, with premium volumes declining by 24% and 23%, respectively. Non-life premium growth outside of South Africa was flat, while lifeinsurance premiums have risen by about 26% since 2012. However, as several major African currencies, including the South African rand, have weakened substantially against the US dollar in the same period, it is worth examining the impact of currency devaluations on the market (International Association of Insurance Supervisors, 2017). From 2012 to 2016, the South African rand lost about 45 % of its value against the US dollar. In original currency terms, the South African life insurance market grew by 36% over the same period while non-life premiums rose by about 44 %, which is in sharp contrast to the results in US dollar terms. In particular, global and regional reinsurers reporting in US dollars, Euros or Swiss francs were impacted by these translation effects. In 2016, African life premiums amounted to US$ 40.6 billion, approximately 1.6% of the global market and slightly lower than in 2015 (1.7%) (International Association of Insurance Supervisors, 2017). South Africa is still by far the largest African life insurance market, accounting for 84% of Africa’s total life premiums in 2016. However, this share declined from 90% in 2011, indicating that other African countries are growing faster and catching up. Overall life insurance premium growth was flat in 2016. While in South Africa premium growth stagnated as well, a few markets, such as Kenya, Morocco, Uganda and Zimbabwe, experienced growth rates well in excess of 10%, Morocco even in excess of 30%, with savings-type policies being the main source of growth in Kenya and Morocco. Funeral covers, which are popular in many African countries, were one of the strongest growth drivers in Zimbabwe. Only very few markets, including Nigeria and Mozambique, recorded declining life insurance premiums in 2016 (International Association of Insurance Supervisors, 2017). Ngeno (2017), further points out that employee in Nigeria have to contend with low salaries, lack of involvement in decision making, heavy workload, and few opportunities for promotion. Research conducted by Munali (2015) revealed that employees are reporting increased levels of stress which has led to poor health and consequently performance. Work place pressure is growing day by day, people face changing economic and business situations, changing customer expectations and changing expectations from their own role and position in the organization (Mohan, 2013). The role of insurance investments in promoting economic growth cannot be overemphasized. In the last few decades, Insurance industry is one of the key sectors of the Nigerian economy and plays a very vital role in the nation economies to develop sustainable means of improving national economic growth. The business of the insurance industry is such that it provides services in the form of security against general uncertainties which are likely to occur in everyday life, thereby resulting in liabilities that convert to a financial loss (Yinka & Akinlo, 2013). African insurance regulatory authorities play a very important role not only in protecting the insurance markets but also in controlling the outflow of foreign currencies. This task is becoming ever more important throughout the whole continent. The financial sector in Nigeria according to NAICOM, 2017, consists of the two subsectors, financial institutions and insurance, which account for 89.07% and 10.93% of the sector respectively in real terms in Q4 2017. However, 2017 annual share stood at 86.82% and 13.18% compared to 86.25% and 13.75% in 2016 respectively. As a whole the sector grew at 1.25% in nominal terms (year on year), with the growth rate of Financial Institutions as 3.66% and – 14.85% growth rate recorded for Insurance. The overall rate was lower than that in Q4 2016 by –18.49% points, and higher by 5.14 % points than the preceding quarter. Quarter on Quarter growth was 10.10%, while 2017 annual growth was 6.75% as against 10.21% recorded in 2016 (NAICOM, 2017). The sector’s contribution to the overall nominal GDP was 3.16% in Q4 2017, lower which is than the 3.34% it represented a year previous, but higher from the contribution of 3.04% it made in the preceding quarter. 2017 annual contribution was recorded at 3.37% as against 3.54% recorded in 2016, a fall of –0.17% points. NAICOM (2017), again driven by the Financial Institutions activity, growth of the sector in real terms totaled 0.22%, lower by –2.46% points from the rate recorded in 2016 fourth quarter but up by 6.19% points from the rate recorded in the preceding quarter. Quarter on Quarter growth in real terms stood at 10.02%. Annual growth in 2017 was 1.26% from –4.54% recorded in 2016. The contribution of Finance and Insurance to real GDP totaled 2.84%, lower than the contribution of 2.89% recorded in the fourth quarter of 2016, but higher than 2.69% recorded in the preceding quarter. Annual contribution in 2017 was 3.00% higher than 2.98% recorded in 2016 (NAICOM, 2017). The productivity of individuals may be reflected in employment rates, wage rates, stability of employment, job satisfaction or employability across jobs or industries. Productivity of enterprises, in addition to output per worker, may be measured in terms of market share and export performance. Rojas and Aramvareekel (2013) identified four major categories of factors that affect the levels of employee’s productivity. They include, management systems and plans such as scheduling, manpower capacities, such as how experienced and motivated is the manpower, what are the working conditions that employees are subjected to, as well as the external environment that the organisation operates. Intense workload may have negative impacts on employee’s productivity and their organization, the quality of employees in particular and the quality of their organisation in general. According to Azizi, Jamaludin, and Mazeni (2010), one of the causes of occupational stress among employees is the heavy workload. Employees who are under pressure perform below in terms of quality of work, dedication, motivation, creativity, commitment to tasks, skills and moral ethics. All these will affect a firm’s excellence, effectiveness and performance (Azman, 2016). Service delivery is the practice of providing customers with a positive helpful experience when they enter a business, throughout the time they stay at the business, and even after the customer leaves, should they have additional questions or products to return (Thompson & Kolsky, 2014). Service delivery can be improved in any organisation through the integration of service supply chains which may lead to improved service delivery and productivity (Romano & Giannakins, 2015). Work life balance has always been a concern of those interested in the quality of working life and its relation to broader quality of life (Guest, 2012). The concept of work life balance has been abstracted from the job satisfaction level of an employee, which is an extrinsic factor of job satisfaction. It aimed to provide quality of life for an employee at the same time retaining the productivity levels of an employee at the work place. The balance work life score provides an organization with a productive and innovative employee (Greenhaus, 2013), whereas disparity in the work life balance tends to develop depressed and dissatisfied staff (Kofodimos, 2015). Workload will affect morale, organizational performance and the quality of one’s personal life (Bridges & Searle, 2016). Employee achievement is the single most important aspect of organizational performance. And having one of the most important effect on organizational performance. Despite this fact, most companies have no clue what their employees really think. They operate in a state of ignorant bliss, believing that if their employees were anything less than 100-percent satisfied, organizational performance will be reduced. An employee’s sense of job security is related to whether or not they trust the leaders in the organization. Job security is defined as employees desire to be retained in their current job till their retirement. Human dignity is directly related to job security as it affects the ability of employees to satisfy the basic physiological and security needs (Salami, 2016). Lack of job security and job changes are source of pressures due to fear of skill redundancy and future job change. Undoubtedly uncertain job security and the fear of layoff is also an important source of psychological stress for some, especially during times of economic contraction (William, 2015). Performance of an employee at his/her workplace is a point of concern for all the organizations irrespective of all the factors and conditions. Consequently, the employees are considered to be very important asset for their organizations. (Qureshi & Ramay, 2016) A good performance of the employees of an organization leads towards a good organizational performance thus ultimately making an organization more successful and effective and the vice versa (Armstrong, 2009). The problems arise for the organizations when employees start perceiving that their organizations are already performing at their level best and with great efficiency then, there is no need for further improvement in their organizations (Summers & Hyman, 2015). The study therefore seeks to examine the effect of employee job stress on organizational performance of a selected insurance firms with the focus on the study of Sunu Assurance Nigeria plc, lagos state.
THE EFFECT OF EMPLOYEE JOB STRESS ON ORGANIZATIONAL PERFORMANCE