Applied Business Research Report

This report analyzes the impact of workplace stress on employee performance at Arthur Barnett Ltd in Melbourne. It discusses the causes of stress, its effects on productivity, and offers insights into managing stress to enhance employee performance. The literature review highlights various studies on job stress and its implications, while the conclusion emphasizes the need for organizations to address stress to improve overall performance.

Running head: APPLIED BUSINESS RESEARCH
To analyze the impact of workplace stress on employee’s performance: In context of Arthur
Barnett Ltd, Melbourne

APPLIED BUSINESS RESEARCH 2
Table of Contents
Introduction......................................................................................................................................3
Literature Review............................................................................................................................4
Significance of Stress at the workplace.......................................................................................5
Impacts of workplace stress on employee performance..............................................................8
Research Questions........................................................................................................................12
Conclusion.....................................................................................................................................12
Bibliography..................................................................................................................................13

APPLIED BUSINESS RESEARCH 3
Introduction
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 months1. 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 manner2.
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 overcome3. Therefore, this research will use literature review to create effective
1Fu, W., & Deshpande, S. P. (2014). The impact of caring climate, job satisfaction, and
organizational commitment on job performance of employees in a China’s insurance
company. Journal of Business Ethics, 124(2), 339-349.
2Aikens, K. A., Astin, J., Pelletier, K. R., Levanovich, K., Baase, C. M., Park, Y. Y., & Bodnar,
C. M. (2014). Mindfulness goes to work: Impact of an online workplace intervention. Journal of
Occupational and Environmental Medicine, 56(7), 721-731.
3Baron, R. A., Franklin, R. J., & Hmieleski, K. M. (2016). Why entrepreneurs often experience
low, not high, levels of stress: The joint effects of selection and psychological capital. Journal of

APPLIED BUSINESS RESEARCH 4
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.
Literature Review
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
workplace4. 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 workplace5.
Significance of Stress at the workplace
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
management, 42(3), 742-768.
4Schaufeli, W. B., & Taris, T. W. (2014). A critical review of the Job Demands-Resources
Model: Implications for improving work and health. In Bridging occupational, organizational
and public health(pp. 43-68). Netherlands: Springer.
5Landy, F. J., & Conte, J. M. (2016). Work in the 21st Century, Binder Ready Version: An
Introduction to Industrial and Organizational Psychology. USA: John Wiley & Sons.

APPLIED BUSINESS RESEARCH 5
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 dysfunction6. 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 expectation7.
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 scenario8.
6Cooper, C. L., & Marshall, J. (2013). Occupational sources of stress: A review of the literature
relating to coronary heart disease and mental ill health. In From Stress to Wellbeing Volume
1 (pp. 3-23). UK: Palgrave Macmillan.
7Bono, J. E., Glomb, T. M., Shen, W., Kim, E., & Koch, A. J. (2013). Building positive
resources: Effects of positive events and positive reflection on work stress and health. Academy
of Management Journal, 56(6), 1601-1627.
8Dane, E., & Brummel, B. J. (2014). Examining workplace mindfulness and its relations to job
performance and turnover intention. Human Relations, 67(1), 105-128.

APPLIED BUSINESS RESEARCH 6
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 stressful9.
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 development10.
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 employees11. 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
9Schultz, D., & Schultz, S. E. (2015). Psychology and work today 10E. UK: Routledge.
10Abbas, M., Raja, U., Darr, W., & Bouckenooghe, D. (2014). Combined effects of perceived
politics and psychological capital on job satisfaction, turnover intentions, and
performance. Journal of Management, 40(7), 1813-1830.
11Beehr, T. A. (2014). Psychological stress in the workplace (psychology revivals). UK:
Routledge.

APPLIED BUSINESS RESEARCH 7
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 stress12.
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 branch13. 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 turnover14.
12Bakker, A. B., Demerouti, E., & Sanz-Vergel, A. I. (2014). Burnout and work engagement: The
JD–R approach. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), 389-411.
13Kadushin, A., & Harkness, D. (2014). Supervision in social work. UK: Columbia University
Press.
14Driskell, J. E., & Salas, E. (Eds.). (2013). Stress and human performance. UK: Psychology
Press.

APPLIED BUSINESS RESEARCH 8
Impacts of workplace stress on 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 person15.
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 behavior16. 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
15Theeboom, T., Beersma, B., & van Vianen, A. E. (2014). Does coaching work? A meta-
analysis on the effects of coaching on individual level outcomes in an organizational
context. The Journal of Positive Psychology, 9(1), 1-18.
16Jensen, J. M., Patel, P. C., & Messersmith, J. G. (2013). High-performance work systems and
job control: Consequences for anxiety, role overload, and turnover intentions. Journal of
Management, 39(6), 1699-1724.

APPLIED BUSINESS RESEARCH 9
overcome the stress issues and also support to enhance the attitude with respect to innovative
ideas and initiatives within an organization17.
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 employees18. 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 way19. But, the organization
17Dutton, J. E., & Ragins, B. R. (Eds.). (2017). Exploring positive relationships at work: Building
a theoretical and research foundation. UK: Psychology Press.
18Goetzel, R. Z., Henke, R. M., Tabrizi, M., Pelletier, K. R., Loeppke, R., Ballard, D. W., ... &
Serxner, S. (2014). Do workplace health promotion (wellness) programs work?. Journal of
Occupational and Environmental Medicine, 56(9), 927-934.
19Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts. UK: Berrett-
Koehler Publishers.

APPLIED BUSINESS RESEARCH 10
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 way20.
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 physiologically21. 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.
20Jensen, J. M., Patel, P. C., & Messersmith, J. G. (2013). High-performance work systems and
job control: Consequences for anxiety, role overload, and turnover intentions. Journal of
Management, 39(6), 1699-1724.
21Kadushin, A., & Harkness, D. (2014). Supervision in social work. UK: Columbia University
Press.

APPLIED BUSINESS RESEARCH 11
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 stress22.
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 employees23. 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 workplace24.
22Theeboom, T., Beersma, B., & van Vianen, A. E. (2014). Does coaching work? A meta-
analysis on the effects of coaching on individual level outcomes in an organizational
context. The Journal of Positive Psychology, 9(1), 1-18.
23Driskell, J. E., & Salas, E. (Eds.). (2013). Stress and human performance. UK: Psychology
Press.
24Dutton, J. E., & Ragins, B. R. (Eds.). (2017). Exploring positive relationships at work: Building
a theoretical and research foundation. UK: Psychology Press.

APPLIED BUSINESS RESEARCH 12
Research Questions
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.

APPLIED BUSINESS RESEARCH 13
Bibliography
Abbas, M., Raja, U., Darr, W., & Bouckenooghe, D. (2014). Combined effects of perceived
political and psychological capital on job satisfaction, turnover intentions, and
performance. Journal of Management, 40(7), 1813-1830.
Aikens, K. A., Astin, J., Pelletier, K. R., Levanovich, K., Baase, C. M., Park, Y. Y., & Bodnar,
C. M. (2014). Mindfulness goes to work: Impact of an online workplace
intervention. Journal of Occupational and Environmental Medicine, 56(7), 721-731.
Bakker, A. B., Demerouti, E., & Sanz-Vergel, A. I. (2014). Burnout and work engagement: The
JD–R approach. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), 389-411.
Baron, R. A., Franklin, R. J., & Hmieleski, K. M. (2016). Why entrepreneurs often experience
low, not high, levels of stress: The joint effects of selection and psychological
capital. Journal of management, 42(3), 742-768.
Beehr, T. A. (2014). Psychological stress in the workplace (psychology revivals). UK:
Routledge.
Bono, J. E., Glomb, T. M., Shen, W., Kim, E., & Koch, A. J. (2013). Building positive resources:
Effects of positive events and a positive reflection on work stress and health. Academy of
Management Journal, 56(6), 1601-1627.
Cooper, C. L., & Marshall, J. (2013). Occupational sources of stress: A review of the literature
relating to coronary heart disease and mental ill health. In From Stress to Wellbeing
Volume 1 (pp. 3-23). UK: Palgrave Macmillan.
Dane, E., & Brummel, B. J. (2014). Examining workplace mindfulness and its relations to job
performance and turnover intention. Human Relations, 67(1), 105-128.

APPLIED BUSINESS RESEARCH 14
Driskell, J. E., & Salas, E. (Eds.). (2013). Stress and human performance. USA: Psychology
Press.
Dutton, J. E., & Ragins, B. R. (Eds.). (2017). Exploring positive relationships at work: Building
a theoretical and research foundation. UK: Psychology Press.
Epstein, M. J., & Buhovac, A. R. (2014). Making sustainability work: Best practices in
managing and measuring corporate social, environmental, and economic impacts. UK:
Berrett-Koehler Publishers.
Fu, W., & Deshpande, S. P. (2014). The impact of caring climate, job satisfaction, and
organizational commitment on the job performance of employees in a China’s insurance
company. Journal of Business Ethics, 124(2), 339-349.
Goetzel, R. Z., Henke, R. M., Tabrizi, M., Pelletier, K. R., Loeppke, R., Ballard, D. W., &
Serxner, S. (2014). Do workplace health promotion (wellness) programs work?. Journal
of Occupational and Environmental Medicine, 56(9), 927-934.
Jensen, J. M., Patel, P. C., & Messersmith, J. G. (2013). High-performance work systems and job
control: Consequences for anxiety, role overload, and turnover intentions. Journal of
Management, 39(6), 1699-1724.
Kadushin, A., & Harkness, D. (2014). Supervision in social work. UK: Columbia University
Press.
Landy, F. J., & Conte, J. M. (2016). Work in the 21st Century, Binder Ready Version: An
Introduction to Industrial and Organizational Psychology. USA: John Wiley & Sons.
Schaufeli, W. B., & Taris, T. W. (2014). A critical review of the Job Demands-Resources Model:
Implications for improving work and health. In Bridging occupational, organizational
and public health(pp. 43-68). Netherlands: Springer.

APPLIED BUSINESS RESEARCH 15
Schultz, D., & Schultz, S. E. (2015). Psychology and work today 10E. UK: Routledge.
Theeboom, T., Beersma, B., & van Vianen, A. E. (2014). Does coaching work? A meta-analysis
on the effects of coaching on individual level outcomes in an organizational context. The
Journal of Positive Psychology, 9(1), 1-18.