Impact of Employee Stress on Performance: F&B Industry, Malaysia

This project presents a comprehensive case study on the impact of employee stress on performance within the Food and Beverage (F&B) industry in Malaysia. The study begins by acknowledging stress as a prevalent aspect of modern life, particularly in the workplace, and highlights the increasing pressures faced by businesses in competitive economic environments. It then outlines the research's aims, objectives, and methodology, including a literature review, research design, data collection, and analysis. The research investigates the causes of stress in the F&B industry, such as long working hours, high employee interaction, and market competition, and examines their effects on employee performance. The study utilizes quantitative analysis, including regression analysis, to analyze the collected data from surveys and interviews. The findings reveal the impact of stress on employee performance, including factors such as reduced productivity, absenteeism, and decreased morale. The project concludes with recommendations for mitigating stress, such as improving work-life balance, effective communication, and career development opportunities, and suggests future research directions.

Running head: STRESS ON EMPLOYEE PERFORMANCE
Stress on Employee Performance:
A case study of F&B Industry, Malaysia
Name of the Student:
Name of the University:
Author note:

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Abstract
Stress is regarded as the normal part of life. It is seen as anything that exerts pressure on human
beings. Everybody requires some amount of stress in their lives. It can be further evaluated as the
force encouraging person to grow and develop. Without any stress one can be bored and
dissatisfied with job and life. The economic environment has been placing more pressure on
business to get success. Thus competition has been turning fierce. Various business owners have
been facing brutal burdens for keeping their organization active with profit. This has been
trickling down the impact that can take place resulting to the creation of employee stress. Current
study deals with analyzing the impact of employee stress on performance of the employees. Food
and beverage industry in Malaysia has been selected as case study. The research is categorized
in five chapters such as introduction, literature review, research methodology, data analysis and
conclusion as well as recommendations. In introduction chapter, research aims, objectives,
questions, rationale, problems statement and significant of the study are described. Literature
review chapter deals with analyzing secondary data; whereas selection of methodological tools is
achieved in third chapter. Forth chapter discusses data gathering from survey and interview.
Final chapter ends with conclusion and recommendation for the research.

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Acknowledgement
Conducting this research has been one of the most enriching experiences of my life. The
contribution of this research to enhance my knowledge base and analytical skill has been
paramount. It gave me the opportunity to face challenges in the process and overcome them. This
would not have been possible without the valuable guidance of my professors, peers and all the
people who have contributed to this enriching experience. I would like to take this opportunity to
thank my supervisor ----------------------- for the constant guidance and support provided to me
during the process of this research. It would not be justified if I did not thank my academic
guides for their important and valuable assistance and encouragement throughout the research
process. I would also like to thank my friends who had provided me with help and
encouragement for collecting primary data and valuable resources. Finally, I would like to thank
the professionals from the retail industry who have participated in the research survey and
provided with valuable inputs into the subject. The support of all these people has been inspiring
and enlightening throughout the process of research in the subject.
Heartfelt thanks and warmest wishes,
Yours Sincerely,

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Table of Contents
Chapter 1: Introduction......................................................................................................11
1.1 Background of the study..........................................................................................11
1.2 Research Aims and Objectives................................................................................12
1.2.1 Aims of the study..................................................................................................12
1.2.2 Objectives of the study.........................................................................................12
1.3 Research Questions..................................................................................................13
1.4 Problem Statement...................................................................................................13
1.5 Rationale of the study..............................................................................................14
1.6 Structure of the study...............................................................................................16
1.7 Key words definition...............................................................................................17
Chapter 2: Literature review..............................................................................................18
2.1 Preface.....................................................................................................................18
2.2 Overview of workplace stress..................................................................................18
2.2.1 Stress-related hazards at work..............................................................................19
2.3 Impact of stress on human body..............................................................................20
2.4 Theories related to job related stress.......................................................................21
2.4.1 Selye’s Theory......................................................................................................21
2.4.2 The Lazarus theory...............................................................................................22
2.4.3 Person-Environment Fit theory (P-E Fit theory)..................................................22
2.4.4 Job Demand-Control (Support) Theory................................................................23
2.5 Empirical research...................................................................................................24
2.6 Different Types of Stress Lead to Different Performance Outcomes:....................26
2.13 Conceptual framework...........................................................................................28
Chapter 3: Research methodology.....................................................................................29
3.1 Preface.....................................................................................................................29
3.2 Method Outline........................................................................................................29
3.3 Research Philosophy................................................................................................30
3.4 Research Approach..................................................................................................31
3.5 Research Design......................................................................................................31
3.6 Data Collection Process...........................................................................................32
3.7 Data analysis process...............................................................................................33
3.8 Sample and Sample Size..........................................................................................34

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3. 9 Ethical Consideration..............................................................................................34
3.10 Timeline.................................................................................................................35
(Refer to Appendix)........................................................................................................35
Chapter 4: Findings and analysis.......................................................................................36
4.1 Preface.....................................................................................................................36
4.2 Quantitative analysis................................................................................................36
Regression Analysis:.....................................................................................................81
4.4 Analysis...................................................................................................................89
4.5 Summary..................................................................................................................90
Chapter 5: Conclusion.......................................................................................................91
5.1 Conclusion...............................................................................................................91
5.2 Limitations and future scope...................................................................................91
References......................................................................................................................92
Appendices....................................................................................................................97
Appendix 1.....................................................................................................................97
Table 1: Gantt chart...................................................................................................97
Appendix 2.....................................................................................................................98
Interview questions......................................................................................................112

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List of tables
Table 4.1: Time for working in organization............................................................................46
Table 4.2: Impact of stress on employee performance..............................................................47
Table 4.3: challenges for working in F&B industry..................................................................48
Table 4.4: factors for motivating to work.................................................................................50
Table 4.5 Impact of instant decision-making skill on work stress............................................51
Table 4.6: Increasing competition in market leads to more stress...........................................52
Table 4.7: issues faced while in stress.......................................................................................53
Table 4.8: Impact of workplace stress on outside of the organization......................................55
Table 4.9: Role of organizations to mitigate stress in work......................................................56
Table 4.10: Measures to mitigate stress in workplace..............................................................57
Table 4.11: Role of work-life balance on minimizing stress....................................................59
Table 4.12: problems for being stressed in workplace..............................................................61
Figure 4.12: problems for being stressed in workplace............................................................61
Table 4.13: Role of employees to mitigate stress in work........................................................62
Table 4.14: Role of the government to reduce work pressure and stress..................................63
Table 4.15: Role of effective communication to mitigate stress in work.................................65
Table 4.16: Impact of job related stress on performance of an employee in food and beverage
industry..........................................................................................................................................66
Table 4.17: Impact of organizational stress on overall performance........................................68
Table 4.18: Impact of career development related stress current performance........................69
Table 4.19: Impact of psychological stress on performance at the workplace.........................71
Table 4.20: behaviour related stress factors reduce productivity in organization.....................72
Table 4.21: Importance of focusing on individual stress as it generates low morale...............74
Table 4.22: outcomes seen when in stress.................................................................................75
Table 4.23: absenteeism in workplace can be generated for affecting in stress........................77
Table 4.24: factors responsible for low productivity in your organization...............................78
Figure 4.24: factors responsible for low productivity in your organization..............................78
Table 4.25: apathy/ loss of interest in work can be resulted for being stressed in the workplace
.......................................................................................................................................................80
Table 4.26: organizations need to focus on the job related stress factors to generate potential
productivity of the organization.....................................................................................................81
Table 4.27: organizations need to focus on improving morale of the employees.....................83
Table 4.28: poor work relations is one of the results for being stressed in work......................84
Table 4.29: organization need to focus on career development as it can reduce additional
stress of an employee.....................................................................................................................86
Table 4.30: workshops for motivating employees and practice to manage stress in the
workplace.......................................................................................................................................87
Table 1: Gantt chart.................................................................................................................100

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List of figures
Figure 2.1: Effect of stress on physical and mental health of employees....................................19
Figure 2.2: Performance management system.............................................................................27
Figure 2.3: Statistics of work stress.............................................................................................29
Figure 2.4: Approach for managing stress..................................................................................30
Figure 2.5: Stress management techniques..................................................................................33
Figure 2.6: causes of stress...........................................................................................................34
Figure 2.7: Sources of stress........................................................................................................36
Figure 4.1: Time for working in organization..............................................................................47
Figure 4.2: Impact of stress on employee performance...............................................................48
Figure 4.3: challenges for working in F&B industry...................................................................50
Figure 4.4: factors for motivating to work...................................................................................51
Figure 4.5 Impact of instant decision-making skill on work stress..............................................52
Figure 4.6: Increasing competition in market leads to more stress.............................................53
Figure 4.7: issues faced while in stress........................................................................................55
Figure 4.8: Impact of workplace stress on outside of the organization........................................56
Figure 4.9: Role of organizations to mitigate stress in work.......................................................57
Figure 4.10: Measures to mitigate stress in workplace................................................................59
Figure 4.11: Role of work-life balance on minimizing stress......................................................60
Figure 4.13: Role of employees to mitigate stress in work..........................................................63
Figure 4.14: Role of the government to reduce work pressure and stress...................................65
Figure 4.15: Role of effective communication to mitigate stress in work...................................66
Figure 4.16: Impact of job related stress on performance of an employee in food and beverage
industry..........................................................................................................................................67
Figure 4.17: Impact of organizational stress on overall performance..........................................69
Figure 4.18: Impact of career development related stress current performance..........................70
Figure 4.19: Impact of psychological stress on performance at the workplace...........................72
Figure 4.20: behaviour related stress factors reduce productivity in organization......................73
Figure 4.21: Importance of focusing on individual stress as it generates low morale.................75
Figure 4.22: outcomes seen when in stress..................................................................................76
Figure 4.23: absenteeism in workplace can be generated for affecting in stress.........................78
Figure 4.25: apathy/ loss of interest in work can be resulted for being stressed in the workplace
.......................................................................................................................................................81
Figure 4.26: organizations need to focus on the job related stress factors to generate potential
productivity of the organization.....................................................................................................83
Figure 4.27: organizations need to focus on improving morale of the employees......................84
Figure 4.28: poor work relations is one of the results for being stressed in work.......................85
Table 4.29: organization need to focus on career development as it can reduce additional stress
of an employee...............................................................................................................................87
Figure 4.30: workshops for motivating employees and practice to manage stress in the
workplace.......................................................................................................................................89

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Chapter 1: Introduction
1.1 Background of the study
Sonnentag and Fritz (2015) stated that stress is known as a biological term that refers
consequences of failure of a human in responding appropriately physically or emotionally threats
to organism. In other words, stress refers to strain from a situation of conflict between external
environment and people that leads to emotional as well as physical pressure. As the world
becomes fast paced, it is not possible to live free of stress especially in a workplace. However,
there are two types of stress such positive and negative stress depending on unique perception of
individual of tension between two forces. Stress at work is comparatively new phenomenon of
modern lifestyle (Abbas and Raja 2015). Hence, job stress becomes a chronic disease caused by
pressure in the workplace. It negatively affects performance of individuals as well as overall
well-being of mind and body.
According to a report published by The Health and Safety Workplace (HSE) in 2015-16,
people are suffering from work-related stress or illness (Petrou et al. 2015) 1.3 million working.
Approximately, 2515 mesothelioma deaths have been occurred due to past asbestos exposures.
On the other hand, 30.4 million working days hampered due to work-related illness as well as
workplace injury. It has been estimated that £14.1 billion cost of injuries and ill health have been
taken place from present working conditions. The latest report published by Labour Force
Survey imposed that the total number of work related stress, depression or anxiety cases are
48,000 found in 2015-15 as a prevalence rate of 1510 per 100,000 workers (Joseph et al. 2015).
In 2015-2016, it has been reported that stress caused for 37% of all work associated with ill
health cases, whereas 45% of working days hampered for stress in workplace.

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In this perspective, stress continues to affect health of the organizations. As unhealthy
organization directly affect on production of the organization, it reduces involvement of the
employees. Wang, Lu and Siu (2015) mentioned that the experiences of work related stress is not
new in Malaysia. The organizations in Malaysia continue to experience work-related stress that
results in poor working conditions. Working in food and beverage industry is hard and stressful
as working hours is long. In addition, the sector has higher proportion of workers resulting a
tough completion among the employees. The high degree of interacting with guests and high rate
of crises occurs in the industry are the main causes of stress in F&B industry. Hence, it is
important to identify the reasons and critically analyze the impact of stress on productivity of the
organizations due to high level of stress.
1.2 Research Aims and Objectives
1.2.1 Aims of the study
The aim of the research is to analyze the impact of job stress on employee performance
critically. In addition, the study has aim to identify the causes responsible for job stress in F&B
industry, Malaysia and find out the techniques used for managing stress in the industry.
1.2.2 Objectives of the study
The research objectives can be explained as followed.
 To identify the causes responsible for stress in F&B industry, Malaysia
 To critically analyze the impact of stress in F&B industry, Malaysia
 To identify the level of awareness among managers in mitigating work
 To recommend stress management techniques for minimizing stress in F&B
industry, Malaysia

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1.3 Research Questions
The research questions can be listed as followed.
 What are the causes responsible for causing stress in F&B industry, Malaysia?
 What is the level of awareness among managers in mitigating stress?
 What are the stress management techniques for minimizing stress in F&B
industry, Malaysia?
1.4 Problem Statement
The public service department is one of the busiest industry having high demand as well
as expectations from public. Therefore, workers require to work over as well as beyond the work
schedule. It creates stressful environment for employees of the organization. In addition, there is
several issues cause stress among employees like low salaries, lack of engagement in decision
making process, heavy workload as well as less opportunities for promotion (Karimi et al. 2014).
On the other side, globalization has Malaysian suppliers facing tough competition along with
aggressive cost cutting. Moreover, pressure in workplace is growing day by day and people in
food and beverage industry are facing changing business and economic conditions as from own
role and position in the enterprise. In addition, the workers need to be able for multi-task and
meet satisfaction of the users (Zhang et al. 2014).Stress is considered as ubiquitous and becomes
universal phenomenon in workplaces.
In addition, International researches give effort in reducing human and economic costs
caused for work related stress. The employees highlight the significance of stress at current days
in order to manage and minimize stress by making practical guidelines in public and private
sectors. In order to reduce work-related stress, organizations included in F&B industry, Malaysia

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have taken several steps like implying policies for managing work pressure in the organization
(Wang et al. 2014). However, growing level of competition becomes the major barrier to keep
employees comfort zone in the workplace. Thus, it is requires to investigate the impact of job
stress on performance of the employees and organization and find out effective actions that can
be helpful to balance work-life pressure.
1.5 Rationale of the study
In the words of Sykes, Venkatesh and Johnson (2014), there are several studies have
conducted study on workplace stress. However, challenges for implicating the techniques helpful
to reduce stress are missing and not up to dated as the organizations and working procedure is
moving fast changes. It is vital to perceive and address job stress as the components have bad
affect on mind and physical health of the employees. Modern organizations face increasing in
number and size of the organizations employ as well as rely on specialists as well as
professionals whom offered a suitable work environment for performing roles effectively. A
number of researchers have confirmed increased interest of researches in the field of
organizational behavior in studying the factors that affect performance of jobs like job stress that
made the enterprise strives removing or neutralizing factors that cause job stress among workers
(Karimi et al. 2014). In other words, occupational stress has an impact on performance of the
employees recognized as a vital area of concern for the organizations. Negative stress also
affects physical and mental health of the staffs. Thus, analyzing the impact of job stress on
employee performance is considered as an important issue for F&B industry, Malaysia.
It is important to understand several occupational stress inducers and impact of various
aspects of job performance. Occupational stress has become a challenge for employers of the
organizations as it has a direct impact on low productivity and increase absenteeism of different

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employee issues such as alcoholism, drug abuse, host of cardiovascular issue and hypertension.
Majority of the previous articles mentioned that impact of stress on specific aspect or dimensions
of jobs (Petrou et al. 2015). Thus, it is pertinent to comprehend as to what constitutes
performance of jobs and finding four aspects such as general performance, technical
performance, human performance as well as administrative performance. On the other hand,
skills including knowledge and abilities as well as competencies of the staffs are important for an
organization to gain competitive advantages. Moreover, the concerns for organizations are
performance of workers irrespective of the factors conditions. As good performance of the
employees can lead to provide good organizational performance, it is an indicator of getting
success. It is required to analyze the factors dependent for job stress that directly has an impact
on employee performance of the organization. Thus, it becomes an issue to manage stress
effectively.
Stress has a great impact on organizational performance and affects health of the workers.
Thus, it is important to identify the factors responsible for causing job stress among employees.
Overtime in workplace has an enormous impact on performance of the employees as well as
productivity. Combination of regular overtime as well as potential for performance issues for the
employers. Hence, addressing the issues that cause job stress is important for management of the
organizations. In addition, business demand as well as productivity is considered as major
concerns, which arise out regular and excessive overtime. At present days, nature of work
becomes drastically changed and still changing at whirlwind speed. Most of the professions
starting from artist to engineer or a doctor to sales executive are suffered from stress (Joseph et
al. 2015). Additionally, job stress becomes a threat to physical health. On the other hand, work
based stress seen in organized workers consequently affects health of the organizations. As a