Business Report: Occupational Stress in Aspet A. Company (Australia)

This business report analyzes the impact of occupational stress on the Australian franchise of Aspet A. Company. Employing descriptive research methods, the report reveals significant mental, physical, and psychological impacts on employees. The findings confirm a negative correlation between stress and factors like education and experience. The organizational survey indicates a direct proportionality between stress and organizational performance. The report explores the literature review, including the conceptual framework, organizational demand and job stress, the impact on productivity and individual capacity with poor working conditions, long working hours, risks in the workplace, role overload, and relationships at work, and the impact of stress on employee performance and stress management strategies, including the Person Environment Fitness theory. Strategic recommendations are provided to reduce occupational stress and improve employee empowerment. The report also includes empirical research to shed light on organizational stress faced by employees in other Australian organizations.

Executive Summary
This business report analyses the impact of occupational stress on the Australian
franchise of Aspet. A. Company in Australia. Descriptive Research method
have been employed in this report. The research findings from the target
population made it evident that occupational stress have had mental, physical
and psychological impact on the employees of the organisation. The research
findings also confirmed that there is negative relation between stress and other
factors like education or experience level of the employees. The organisational
survey also reveals that the organisational has a culture of direct proportionality
between stress and organisational performance. Lastly some strategic
recommendations have also been provided for ensuring reduction of
occupational stress on the employees of Aspet A. Company. Besides, the
benefits of reducing organisational stress and ensuring employee empowerment
have been discussed in the analysis section of the report. This report also
conducts empirical research in order to shed light on the kind of organisational
stress that employees of other Australian organisations face.

Table of Contents
1. Introduction............................................................................................................................3
1.1 Organisational Background..............................................................................................3
1.2 Research Problem.............................................................................................................3
1.3 Research Rationale...........................................................................................................3
2. Literature Review (including Conceptual Framework).........................................................4
2.1 Organisational Demand and Job Stress............................................................................4
2.2 Impact on organisational productivity and individual capacity.......................................4
i) Poor working conditions.................................................................................................5
ii) Long and strenuous working hours................................................................................5
iii) Risks and danger in the workplace................................................................................5
iv) Role Overload................................................................................................................5
v) Relationship at work.......................................................................................................6
2.3 Impact of organisational stress on the employees’ performance......................................6
i) The impact of physiological stress..................................................................................6
ii) Behavioural and physiological symptoms and allied effects.........................................6
iii) Impact on Job performance...........................................................................................6
2.4.1 Person Environment Fitness theory...........................................................................7
3. Research Hypothesis..............................................................................................................8
4. Research Questionnaire..........................................................................................................8
5. Research Methodology...........................................................................................................8

5.1 Target Population.............................................................................................................8
5.2 Sampling Frame................................................................................................................8
5.3 Sampling Technique.........................................................................................................9
5.4 Data Collection Methods..................................................................................................9
5.5 Methods of Data Analysis................................................................................................9
5.6 Ethical Implications of Research......................................................................................9
6. Analysis................................................................................................................................10
6.1 Other factors that influence Employee’s performance at the company.........................10
7. Recommendations and Conclusion......................................................................................10
Reference List..........................................................................................................................12

1. Introduction
1.1 Organisational Background
This report discusses the impact of occupational stress on employee’s performance of Aspet
A. Company in Australia. This is a company of African origin with the largest stretch of its
Asian franchise being situated in Australia. The Australian franchise of the company have
about 2500 employees working currently (Vanhove et al. 2016). Job security is a conce3rning
factor for the employees of Aspet A. in Australia. The employees are forced to work under
physical and mental job stress. The company showed a trend of increase in its revenue
collection since 2008. In 2012, the news about extreme job stress in the company came into
open. In the literature review section, the factors that compels the average Australian
employees to face extreme work stress have been discussed. Moreover, using descriptive
quantitative research, an elaborate research work have also been conducted upon the
employees of the company.
1.2 Research Problem
A lot of resr4ch work have been carried out to examine the reason and outcome of the
excessive job stress that Australian companies face. In this regard, the macro economic
factors have been described in detail. However, a further detailed study is required to analyse
the factors of stress on the employees. In spite of low organisational performance, the
management of the company have not reduced occupational stress that the employees face
(Van De Voorde & Beijer, 2015). This study aims to find out the reasons why the employees
of Aspet. A company face stress. Further, the outcome of the working under extreme stress
have also been analysed in the report.
1.3 Research Rationale

This assignment sheds light on an elaborative research plan aimed at conducting a
quantitative research in order to investigate on the research problem highlighted in the
introduction section. Australian companies on an average impose excessive occupational
stress on their employees. As an impact, there have been a slight increase in the productivity
rate. However, the employee morale and the rate of job satisfaction have been extremely low
in Australia. This report focuses on discussing the kind of stress that the employees of the
company face in their organisational context.

2. Literature Review (including Conceptual Framework)
Occupational
Stress
Employee’s
performance
Behavioural and
physiological
symptoms and
allied effects
The impact of
physiological
stress
Poor Working
Hours, Role
Overload
Impact on
Individual
capacity
Organisational
Demand and Job
Stress
Other factors that
influence
Employee’s
performance
Stress
Management
Person
Environment
Fitness theory

Figure 1: Conceptual Framework
(Source: Developed by the Researcher)
2.1 Organisational Demand and Job Stress
Occupational stress is fostered out of the excessive organisational demand on the human
resources of the organisation. This is compounded by the distress that the employees of the
Australian companies experience subjectively. According to the ideas of (Abbas & Raja,
2015) organisational stress stem out of the interaction between interval micro environment
and the individual employee. The stress faced in the workplace directly impacts the mental as
well as physical condition of an employee. As an impact, the job performance of the
employees is affected and in turn the productivity of the companies is hampered (Sonnentag,
& Fritz, 2015). It is noteworthy that organisations stress is not a normal phase that
employees. It is a condition of disequilibrium where the organisational demands are
extremely high and high production targets and tight deadlines are compulsorily thrust upon
the employees (Bakker & Demerouti, 2014).
2.2 Impact on organisational productivity and individual capacity
According to the ideas of Baranik,et al. (2017), the Australian companies employ an effective
strategy of reducing operational cost, as the scale of production is low in most of the
companies. On the contrary, Baron, Franklin & Hmieleski, (2016), states that this is the
patent culture of the start-up and SMEs of Australia. Small franchise companies also replicate
the business model of the successful start-up companies. The small production unit is
expected to produce more units of produce. However, the individual capacity of productivity
is severely impacted due to this work culture of the companies.

According to the findings of Bhave & Glomb, (2016), there are five major sources of job
stress. The most important of the factors are the intrinsic factors of the organisation. These
are as follows:
i) Poor working conditions
The physical surrounding of the workplace might be a major factor of stress at times. Issues
like high noise level, fumes, and poor ventilation of the rooms, poor lighting and other such
factors can cause stress. Besides, as per Breevaart et al. (2015), if the office is poorly built
and hence incur communication problem, it would also cause stress among the employees.
ii) Long and strenuous working hours
Many job roles in Australia require long working hours from its employees. Many of the
employees are unable to endure the stress of this tenure and fall prey to it. In organisations
that amount of high level of produce, employees are expected to work in overnight shifts
also. This incurs adverse effect on the health of the employees (Brough, Drummond & Biggs,
2018).
iii) Risks and danger in the workplace
High level of stress is associated with other dangers also. Job roles that involve high stress
level owing to exposure to potential threats might result in adrenal rush, high blood pressure,
unsystematic respiratory processes and so on (Chan, Song & Yang, 2015). Employees of
companies pertaining to chemical manufacturing, iron smelting and others such industries are
exposed to such threats.
iv) Role Overload
Role overload is the formal name of the job stress that arises out of working constantly under
tight deadlines. (Dawson, O'Brien & Beehr, (2016), posited that in Australian companies, the

perceived inability to execute and accomplish a definite task within the assigned deadline
evokes stress. In this stressed situation, the individuals tend to accept some assignment and
reject some other. The tension of losing the job owing to the inability to perform as per the
requisite criteria creates immense psychological stress in the employees (Ford et al. 2014).
v) Relationship at work
The way in which people relate to each other in a workplace also evokes stress. An
environment where the employee’s know each other very well, helps to foster confidence in
the employees. The employee who have smooth relationship with the seniors, colleagues and
the subordinates, belong to a comfort zone. However, as per Hülsheger, Feinholdt & Nübold
(2015), inability to perform as per the organisational criteria makes the employees lack self-
confidence and gradually his or her relations with the others in the company tends to decline.
2.3 Impact of organisational stress on the employees’ performance
i) The impact of physiological stress
High stress level impact the mental health of the employees. This however leads to physical
symptoms like anger, nervousness, irritability, boredom and aggression and anxiety in the
workplace and gradual breakdown in the mental health impacts the self-esteem of the
employees along with power of concentration, decision making capacity and the job
satisfaction also declines (Hwang et al. 2014).
ii) Behavioural and physiological symptoms and allied effects
The behavioural symptoms of workplace stress are irregularity in food consumption and
increase in the rate of smoking and consumption of alcohol. Nervous fidgeting and
absenteeism follows (Wang, Lu & Siu, 2015). The metabolism rate of an employee fluctuates
as a consequence of stress and strain.

iii) Impact on Job performance
Occupational stress is primarily of two kinds. They are direct stress and indirect stress. Direct
stress is caused by the imposition of task load and physiological stress factors are not
associated with it. The physiological stress factors cultivate indirect stress. According to
(Laschinger & (2014), stress applies to any form of organisational demand. In contrast,
(LePine et al. 2016), opines that workload is not the proponent of stress. Rather, extreme
workload, and the inability to cope up with the load and related nervousness can evoke
psychological discomfort.
If it is agreed upon that subjective experience and particularly cognitive appraisal is a crucial
factor that defines stress, then it might be assumed that it has a significant role in answering
queries regarding whether excess load of work, time pressure or any other putative factor
bear direct and indirect effects, both.
2.4 Stress management
There are individual approaches that are used by employees to reduce occupational stress.
Exercise is a popular approach that entails practices like walking, riding bicycles, aerobic
classes, swimming sessions and playing actives ports like tennis. In contrast, () opines that
the most popular mod of stress release is relaxation. The prime objective of relaxing is
reducing the basal metabolic rate of the employee who is physically exhausted and mentally
retarded. Relaxation relieves the heart rate by 5 to 7 bpm. Blood pressure and kinds of
psychological stress is relieved as an outcome of relaxing activities.
According to the findings of (Mulki et al. 2015), employees who are victims of occupational
stress do not feel comfortable to talk about the stress before other colleagues or family
members. It brings about a sense of subjugation in them. However, Petrou, Demerouti &

Schaufeli, (2015), opines that self-disclosure can decrease stress to a good extent and also
provide a positive outlook towards life.
2.4.1 Person Environment Fitness theory
The P-E fit theory makes it evident that a constant interaction between the individual
employees and the workplace environment helps to reduce stress. Accumulation of stress
compounds the job pressure on the employees and thus makes them disoriented to the
workplace environment. However, this theory states that a constant interaction in the
workplace can help to reduce the stress by 30 to 40%. Disorientation to the organisational
goals makes the job feel like a burden (Ruotsalainen et al. 2014). However, if the employees
maintain subtle relations with the peers and seniors in a company and make a mapped
progress towards the individuals’ goals, the stress level might reduce.
3. Research Hypothesis
H0: Occupational stress have adverse impacts on the job performance of the employees
H1: Occupational stress immensely impacts the job performance of the employees
4. Research Questionnaire
Q1. What is your level of education?
Q2. What is the tenure of your career at this company?
Q3. Are you dissatisfied with your job at the present?
Q4. What is the cause of your dissatisfaction?
Q5. What mitigation strategies have you undertaken?
5. Research Methodology
5.1 Target Population

The target population for this research constituted of the employees currently employed in the
Aspet. A. company in Australia. A sample size of one hundred and ten employees were
selected for this research study. The time frame allocated for this research justifies the
selection of this time frame (Lewis, 2015).
5.2 Sampling Frame
The sample frame of the research study includes the employees of the production and
marketing team of Aspet. A. company in Australia. Other than that, 10 employees who have
recently retired from the organisation were also included in the sample frame.
5.3 Sampling Technique
Convenience sampling process have been followed for the conduction of this research. This
sampling technique have been used so that the entire research sample population is available
to the researcher throughout the tenure of the whole research. Primary data collection has
been done by means of administering questionnaires (Lewis, 2015).
5.4 Data Collection Methods
The researcher have used both primary and secondary data sources. Primary data collection
has been done by means of survey conducted among the employees of the company working
in Australia. Again, secondary research has also been done in this research study (Lewis,
2015). Sources like online journals, press releases and other available online publications
have been used for extraction of information for doing this project.
5.5 Methods of Data Analysis
Quantitative data analysis method have been followed in this report. Survey based on
common set of questionnaire have been used as the research tool for the data collection.
5.6 Ethical Implications of Research

In the course of this research the researcher has followed the Data Protection Act 1998. This
is why the names of the employees or their job roles have not been disclosed in the survey
report. Besides, the entire research have been conducted in an ethical manner. None of the
respondents have been forced, threatened or bribed to respond to the survey questions. The
researcher has collected information from each of the members of the sample population with
their individual consent.
6. Analysis
Most of the employees employed by the company are diploma holders (Schmitt, Den Hartog
& Belschak, 2016). Only 3.6% of the sample population had completed education up to
Masters Level. Interestingly, most of the employees confirmed that they have been working
in this company for a tenure of below 5 years. Less than 5% of the employees of this
company have been working here for over 11 years. This evidently shows that the employee
retention rate of the company is low. In turn it can be said that the job satisfaction level of the
employees of the company is low.
The maximum mean of the employees who replied that they suffer from the work overload
and feel mental pressure to work under tight deadlines is 3.482, which is the highest. Lest
number of employees (mean 3.01) reported that they have been victim of odd relationship
with seniors or poor working conditions.
6.1 Other factors that influence Employee’s performance at the company
The other factors influencing employees’ performance as evident in the survey are lack of
motivation, poor knowledge of the organisational orientation, working environment and so
on.
7. Recommendations and Conclusion

This section of the report uses the analysed information for ascertaining the impact of
occupational stress within the employees of the Aspet. A. Company in Australia. The
multiple reasons of stress among the employees is evident. Various stressors that affect the
employees physically, mentally or psychologically have been hard for them to bear.
Analysing the various issue in the organisation it can be concluded that although stress is
very harmful for employee performance and also towards organisational performance in the
future, various methods can be implemented to cope up with the stress.
Based on the research findings, the following recommendations can be provided.
1. It is true that the company has increased its production by 3% approximately by thrusting
job pressure on the employees. However, considering the age and the educational qualities of
the employees, it can be recommended that the company should implement acute and
immediate measures to reduce the stress level of the workers. This is essential to ensure
employees’ engagement with the organisational goals. The workforce us capable and possess
the necessary practical skills to boost production. However the excess job pressure is making
them disoriented to the organisational contexts.
Secondly, it is recommendable that the company start a cash appraisal policy. This would
strategically reduce the impact of the high level of stress on the employees.
Thirdly, the organisation can alternatively also invest in expanding the workforce. As such
the stress due to excess workload on the present employees would decrease automatically.

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