Impact of Organizational Stress on Employee Performance Mediated by Employee Motivation

Dissertation

Abstract
Employees are the lifeline of company because they take a business towards a path of
success. That is why, it is quite essential for the companies to keep motivating their employees
and maintain good relationship. In the same way, current dissertation also highlights the impact
of organizational stress on employee performance which is mediated by employee motivation.
The current dissertation provides a deep understanding of how employees should be motivated
so that their performance can be easily raised. Through this dissertation, researcher also focused
on the relationship between employee performance and employee motivation. So that it will
helps to attain the defined goals of the company. Thus, dissertation also summarised that when
employee are not motivated then it will definitely affect the overall employee performance and
this in turn affect the business brand image as well.

Acknowledgement
On the very outset of this research, I would like to extend my sincere and heartful
obligation towards all the person who helps me to make the project better. I would like to thank
my HOD sir who provide me an opportunity and also encourage me to complete the assignment.
I would like to extend my gratitude to my faculty because without their guidance, help and
cooperation I would not able to complete the research.
I also acknowledge with the deep sense of emotion, my gratitude towards my parents and
member of my family, who has always supported me morally and economically.
At last but not the least, gratitude goes to all my friends who directly and indirectly helps me to
complete the research project.
Thanking you

Table of Contents
Chapter 1 INTRODUCTION...........................................................................................................1
Chapter 2 Literature Review............................................................................................................5
2.1 Definition of key terms..........................................................................................................5
2.2 Evaluation of relevant models and theories...........................................................................6
2.3 Critical evaluation of empirical studies.................................................................................9
2.4 Research gap .......................................................................................................................18
2.5 Conceptual Framework........................................................................................................19
2.6 Hypothesis Development.....................................................................................................20
CHAPTER THREE – RESEARCH METHODOLOGIES...........................................................21
Chapter 4: Data analysis................................................................................................................28
4.1 Analysis of demographic information.................................................................................28
4.2 Reliability test......................................................................................................................30
4.3 Sample adequacy test...........................................................................................................32
4.4 & 4.5 Normality test and descriptive statistics....................................................................32
4.6 Correlation...........................................................................................................................35
4.7 Regression ...........................................................................................................................37
Chapter 5: Discussion....................................................................................................................45
Chapter 4: Conclusion and Recommendation................................................................................49
5.1 Conclusion...........................................................................................................................49
5.2 Fulfilment of research objectives and hypothesis ...............................................................50
5.3 Recommendations ...............................................................................................................51
5.4 Implication for future research.............................................................................................52
5.5 Limitation of the study.........................................................................................................53
REFERENCES..............................................................................................................................54
APPENDIX....................................................................................................................................59

Topic: To analyse the impact of organisational stress on employee performance mediated by
employee motivation in Malaysia
Chapter 1 INTRODUCTION
Background of study
Employees are lifeline of every organisation. It is because they perform all operations and
activities. So, it is important for business to satisfy their employees and make them work in stress
free environment. By eliminating those factors which lead to developing stress, manager in turn
increases their ability. This enables in improving their productivity and allowing to take proper
decisions. It has been observed that in professional life worker faces a lot of problems which
they have to deal with (Karatepe and Aga, 2016). The problems are directly related to their work
schedule and impact on mental as well as physical health. A company culture is developed by
employees. It allows in maintaining positive culture in firm which leads to increase in overall
work performance. The main task of management is to manage stress so that employee
productivity is not affected. It is because if this occurs than goals are not attained and work
environment gets disturbed.
The definition of stress has changed over past years. It is not covering all other variables
which can are related to personal life. Now, it included job satisfaction, salary, etc. and other
things. These all have an adverse effect on individual’s life. In such a dynamic business culture it
has become difficult for mangers to manage stress and eliminate all other variables. They have to
focus on motivating staff in order to create a stress free working environment.
In recent times there has been a high impact of organisational stress on employee
performance. This is because of change in dynamics and various other factors such as culture,
political factors, etc. It has become important for organisation to manage stress among employee
so that their productivity is not affected (Park, Song and Lim, 2016). Alongside it, career
development, family pressure, workload, etc. are some other factors as well due to which staff
motivation is impacted. For an organisation it is require to manage staff personal as well as
professional life. They have to take into consideration regarding staff management, concerns, etc.
There is a great impact on employee physical, emotional and mental health due to immense work
pressure.
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If organisational stress is not managed it can result in generating negative consequences.
There are some other criteria due to which also organisation stress in built up. They are job
satisfaction, growth opportunities, working environment, etc. due to which employee
productivity is affected.
Due to immense work load and stress there is rise in employee turnover as well. This is
also a concern for many organisations. There is impact on staff performance which also
influence organisational culture. Moreover, it also frustrate staff mental stability. In stressful
culture staff is not able to work in effective way. There always remain high pressure on the
related to work completion. With this they are not able to manage personal life. In addition it is
observed that there occur rise in conflicts between managers and staff. But there are some other
reasons which become a stress. However, when things are not in control it may result in high
turnover. This becomes difficult for firm to retain staff. In employee a sense of motivation comes
from job satisfaction. So, if there is no job satisfaction it will lead to rise in stress level.
It becomes necessary for business to maintain stress free environment in order to satisfy
employees. This also benefit in allowing them to develop strong relations with co-workers.
Research rationale
For a business it is essential to regularly motivate employee so that they are able to work
in effective way. Also, with this their performance is improved and goals are attained in efficient
way. The main element that impact on employee performance is motivation. If they are not
motivated then it lead to effect on their performance. Sometimes, it also happens that there are
some variables which directly impact on their productivity. They are not related to organisation
but personal as well (Jayaweera, 2015). The most common way through which stress can be
mediated is by motivation.
In order to manage stress many business motivate employees. This is because it enables
in boosting their morale and allowing to work freely. Motivation is major source of removing
stress and handling work load in effective way. Other than it, with motivation employee
performance is enhanced. They work in creative manner and with enthusiasm. Moreover, with
this their satisfaction can be gained and providing tips to maintain work life balance. So,
motivation is used to mediate stress.
It is necessary for organisation to understand different aspect of stress on employee
performance so that it can be reduced. The study will explore variables which will impact on
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employee performance. It will also describe that how overload of job impact on employee
motivation. Furthermore, it will discuss lack of career development in impact on motivation.
Also, the study will aim at finding out how low salary and wages results in lack of motivation. At
last why lack of decision making power influence employee motivation. So, all these variables
will be discussed in research and how they become reason of impact on employee productivity
and what can be done to mediate it. Alongside, it, in report it will describe about why it is
necessary to manage organisational stress.
Aims and objectives
Aim- To analyse the impact of organisational stress on employee performance mediated by
employee motivation in Malaysia
Objectives
 To determine concept of employee performance in organisation
 To identify the factors of organisational stress which impact on employee performance
 To evaluate impact of organisational stress on employee performance
 To recommend how employee motivation can be used as tool to reduce stress.
Research questions
 What is the concept of employee performance in organisation?
 What are factors of organisational stress which impact on employee performance?
 How organisational stress impact on employee performance?
Significance of study
It is primary objective to determine significance of research so that it scope can be fixed.
It reflects the area where outcomes can be used (Sharma and Dhar, 2016). Generally, these types
of studies are utilised in order to find out factors of stress and to what extent it is impacting on
employee productivity. In similar way, the main purpose of study is to determine different
factors of organisational stress. It will also be helpful for other companies to evaluate that how
factors such as salary, growth, etc. impact on employee performance. Beside this, it will be
useful in finding out that how motivation can be used as measure to mediate stress among
employees. Furthermore, the study results can be used by other firms to reduce and eliminate
factors that results in organisational stress. However, there will be change in way of motivation
that leads to improving employee performance.
Thesis structure
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It describes the overall structure of project and its different chapters. They are discussed
in a systematic way which makes it easy for user to understand each chapter in a proper manner.
Also, it is easy to evaluate what is included in each chapter.
Chapter 1 Introduction – This is the first chapter which will give an overview of overall
research topic. Here, researcher will describe background, aim, objectives, research questions,
etc. that have to be achieved.
Chapter 2 Literature review- It is the second chapter in which researcher will analyze
secondary data from different research articles, journals, etc. Here, the topic is discussed in depth
regarding what other authors have contributed in past. The secondary data is collected and
analyzed which makes it easy for user to know what subject is all about.
Chapter 3 Research methodology – This chapter will describe about different types of research
methods which will be used or applied by the researcher in project (Hur, Moon and Jun, 2016).
It will give an overview about how overall research will be conducted and what methods are
used.
Chapter 4 Data analysis – This chapter will show how primary data is collected and interpreted.
It gives a brief analysis of results obtained from data. It will include graphs, tables, charts, etc.
along with its interpretation.
Chapter 5 Discussion and analysis- In this, the results and analysis are discussed which will
show findings of overall research. The researcher will give an in-depth analysis of data and
information interpreted by collecting primary one. This will make it easy for the user to evaluate
overall findings of project.
Chapter 6 Conclusion – It is the last chapter in which conclusion is done. Here, researcher
shows what is concluded after completing the project. This chapter gives an insight that about
findings of data and information (Huang and et.al., 2016).
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