Impact of Stress on Organizational Performance

Impact of Stress on
Organizational Performance
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Executive Summary
The report presents an analysis of the impact of stress that is generated on the overall
performance of the organization. It discusses the major causes of stress in the workplace. The
report also helps in investigating the several consequences of stress on the performance of both
employees and the organization. Further it also dictates the managing of stress by using various
interventions or strategies on organization and individual. It finds that the level of stress is high
among employees at the workplace, which led to a decrease in profitability of the company. The
recommendations outline the significance of using primary, secondary, and tertiary interventions
as well as stress management programs on reducing stress at the workplace.

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Table of Contents
Introduction.................................................................................................................................................3
Discussion....................................................................................................................................................3
Causes of stress.......................................................................................................................................3
Consequences of stress...........................................................................................................................3
Management of stress.............................................................................................................................4
Conclusion...................................................................................................................................................6
Recommendations.......................................................................................................................................6
References...................................................................................................................................................8
Appendices................................................................................................................................................10

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Introduction
The paper will demonstrate the impact of stress on the performance of the organization. It will
discuss the significant findings on stress such as causes, consequences as well as management of
stress. Stress has become a serious concern which occurs in every organization, and it is a
complex concept in today's world. The level of stress influence the overall performance of the
organization in terms of employees, work, profitability, or sale. Stress at the workplace has
become a critical challenge for all organizations because it affects both the employees and the
organization. An excessive level of stress seems to be harmful to the employees as it may lead to
loss of employee turnover, absenteeism, low productivity as well as inefficiency. The managers
will adopt strategies or interventions for managing or reducing stress at the workplace.
Interventions reduce the impact of stress on organizational performance. Stress needs to be
managed or reduced at the workplace for better performance of both employees and
organization.
Discussion
The stress related to work referred to the reaction of people when they face special tasks that are
out of their knowledge or ability (Bakotić, 2016). Stress is a condition that shows helplessness in
solving a task.
Causes of stress
The research shows that various factors of the organization are responsible for causing stress in
the workplace, which affects the performance of the employees as well as the performance of the
organization (Bennett & Dorjee, 2016). Some of the causes of stress in the organization are
complexity as well as diversity of tasks, concern for the future of the firm, inappropriate cycle of
management, high responsibilities that need management position, effects of improper decision,
working with poorly trained workers, excessive authority centralization and extension of work
program due to arising of special situation (Bentley et al., 2016).
Consequences of stress
The consequences of stress are the outcomes brought in the performance of the organization. The
consequences can be the following: