Employee Motivation's Role in Managing Organizational Stress

This dissertation investigates the impact of organizational stress on employee performance, mediated by employee motivation, within the context of Malaysia. The study explores various factors contributing to organizational stress, such as workload, career development, salary, and decision-making power, and their subsequent effects on employee motivation and performance. The research includes a literature review, outlining key terms, relevant theories, and empirical studies, followed by a detailed methodology section. Data analysis encompasses demographic information, reliability tests, and statistical analyses such as correlation and regression to determine the relationships between the variables. The dissertation aims to provide insights into how employee motivation can be leveraged to mitigate the negative effects of organizational stress, ultimately improving employee performance and organizational outcomes. The study concludes with recommendations for future research and practical implications for managing workplace stress and enhancing employee well-being.

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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Chapter 2 Literature Review
2.1 Definition of key terms
EMPLOYEE PERFORMANCE
Employee Performance indicates the behaviour of employees in workplace and how they
perform their jobs that employer has obligated them. Employee Performance refers to how well
employees conduct their job or duties that they are required to perform (Shields and et.al., 2015).
The organisation set standards or targets for every individual and hopes that their business offers
value products to the customer's & operates efficiently. Employee performance refers to the
employee’s behaviour at the workplace (Shields and et.al., 2015). Way in which employees are
performing their roles and responsibilities in respect to job is covered by the term employee
performance.
EMPLOYEE SATISFACTION
Employee Satisfaction also called as Job Satisfaction, an extent an employee enjoys their
job role and is happy & satisfied. Employee satisfaction reduce turnover and stress, both of them
impact the performance and productivity of employees. Employee Satisfactions shows that
whether workers are satisfied and fulfilling their needs at workplace. Employee satisfaction show
extent to which employee feel that current job is fulfilling its needs (Bin, 2015). Number of
factors affect employee satisfaction like hygiene factor and financial as well as non-financial
incentives.
EMPLOYEE MOTIVATION
Motivation is the efforts, energy & commitment that a employee brings to the
organisations through their job roles. It shows how committed an individual is to their job roles
and how engaged the individual feel to organisation's goals and objectives. Motivation is drive
from two factors internal and external sources. External sources are rewards and monetary
benefits and on the other hand internal sources like power, independence and acceptance
(Lăzăroiu, 2015).
Lack of employee satisfaction & employee motivation affects employee’s performance
and all of these overall cause organisational stress. Unsatisfied employee will be less productive
as they have no satisfaction and motivation to perform the task. Employee motivation refers the
extent to which individual is dedicated towards its job and intend to achieve target determined by
the managers (Lăzăroiu, 2015). There are number of approaches that are used by the managers to
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motivate their subordinates which include financial and non-financial incentives.
2.2 Evaluation of relevant models and theories
Herzberg factor theory
Herzberg theory state that there are multiple factors that motivate an individual to stay for
long time in the business firm. These factors can be classified in to two categories namely
motivator and hygiene theory. Motivator factor cover multiple things like recognition of
achievement, responsibility and opportunity to do something meaningful etc. On other hand,
hygiene factors cover job security, salary, fringe benefits, work conditions, good pay and
vacations etc. There are few one who are motivate by monetary benefits but there are few one
which are motivated by recognition and other factors which are not in monetary terms. Employee
to employee managers need to change use of motivation techniques.
According to Alshmemri, Shahwan-Akl and Maude, (2017) one of main merit of
Herzberg motivation theory is that it helps managers to work on multiple fronts through which
they can be motivated to work hard for benefits of an organization. On other hand Alfayad and
Arif, (2017) major demerit of Herzberg motivation theory is that it is subjective in nature. It
gives large number of options to the managers. Hence, they do not that which option can work to
solve problem. Thus, theory is assumed subjective by many individuals.
Model Variables Strength Weakness Studies
The Person-
Environmental
Fit Theory
Work
environment
Employee
mindset
Talents and the
capability of the
employee.
By employing
theory conflict
can be avoided
at the workplace.
The environment
is certain and the
behaviours or
the compatibility
level of the
employees can
change at any
time
Many studies
conducted in
manufacturing
firms where the
employees have
to face different
situations due to
change in the
work policies,
demands and
needs of the
clients
Job Demand Job desires Allow to People with low Most of the firms
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Control Theory Work pressure
Stress factors
measure the
percentage of
stress factors
through leaves
and then think
on the work
pressure (Kaur et
al., 2015).
control of the
pressure can be
brought back to
normal state
once they have
already faced the
situation
does not take into
accounts of the
desires of the
employees and
burden them with
work pressure;
the ultimate
outcome comes
in leaves,
sickness and high
turnover.
Herzberg two
factor theory
Motivator,
hygiene
Strength is that
theory focused
on multiple
factors by
working on
which
employees can
be motivated
(Lichtenberg,
Lachmann and
Fosshage,
2016).
Herzberg did
not consider
varied factors
that might cause
satisfaction or
dissatisfaction
among
employees in
respect to job.
Studies reflect
that most of
companies do not
take in to account
internal
motivating
factors.
McGregor’s
Theory X
Ambition,
avoids
responsibility,
and is
individual-goal
oriented
Strength is that
is state that
managers must
follow
situational
leadership style
and accordingly
At workplace
lazy and active
both type of
employee’s
work. Manager
can not apply
this theory on
Studies reflect
that most of firms
believed that
employees often
avoid to take
responsibility and
due to this reason
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must give
reward and
punishment to
the employees.
both. action must be
taken to get work
done through
them.
McGregor’s
Theory Y
Internal
motivation and
responsibility.
Theory ‘Y’
assist managers
to make best use
of HR at
workplace
(Morgenroth,
Ryan and Peters,
2015).
This theory
believed that all
employees are
motivated by the
job but that is
not reality.
There are large
number of
people who are
not motivated by
job (Cooper. and
et.al., 2016).
Studies indicate
that more and
more career
development
opportunity must
be given to those
who are
internally
motivated. By
doing so best use
of resources can
be done in the
business.
Ouchi’s Theory
Z
Employee
loyalty,
motivation
Employees may
be granted
lifetime
employment
which leads to
loyalty towards
the enterprise
(Hogg, 2018).
Employees give
importance to
both money and
job security. If
company give
job security but
low salary then
one will not
prefer to work in
the company.
Studies reflect
that there are less
number of
employees who
are motivated by
the fact that they
will get lifetime
job in any
company. This is
because people
give due priority
to money they
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