THE EFFECTS OF STRESS ON BUSINESS EMPLOYEES AND PROGRAMS OFFERED BY EMPLOYERS TO MANAGE EMPLOYEE STRESS

Prepared for Dr. Robert J. Olney Southwest Texas State University

Prepared by Charles Dishinger Nancy Howard Bill Kiagler Sherry Seabrooke Donna Tucker

November 29, 20__

MEMO TO: FROM: DATE: SUBJECT: Here is the report on programs to manage employee stress that you requested on _______ See page 577 in your textbook for information regarding a Transmittal Letter. However, as your project is internal to an organization, use a transmittal memo. The information relayed is the same, but it is in memo format.

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TABLE OF CONTENTS

Page iii iv v 1 1 1 1 2 2 3 3 4 4 4

LIST OF TABLES.. LIST OF FIGURES EXECUTIVE SUMMARY.... SECTION I INTRODUCTION TO THE STUDY. Introduction. Statement of the Problem Significance of the Study Scope of the Study.. Review of Related Literature.. Methods of the Study.. Source of Data Sample Selection Statistical Methods. Limitations of the Study. SECTION II FINDING, CONCLUSIONS, AND RECOMMENDATIONS Introduction. Findings... Demographic Profile... Areas of Job Performance Affected by Stress. Programs Employers Offer Employees to Manage Stress.. Conclusions. Recommendations REFERENCES APPENDIX A : QUESTIONNAIRE.. APPENDIX B: DATA ANALYSIS APPENDIX C: POWERPOINT PRESENTATION..

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iii LIST OF TABLES Table 1. Programs Offered by Employers to Manage Stress . 7

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LIST OF FIGURES Figure 1. 2. Age Distribution of Respondents 5 Negative Effects of Stress on Work Performance . 6

Executive Summary Please remember, an executive summary is a full blown mini-version of your report. Include headings, dont just cut and paste the information, use different wording than is in the body of your report. Also, typically it is 15-20% long. For your report, your executive summary should be 1 and one-half to two pages in length. The information below is by no means complete; it is an example only. INTRODUCTION This study was conducted to determine the effects of stress on employees and the methods employers use to manage employees stress. It was limited to the perceptions of Central Texas business employees, who were selected using a nonprobability, convenience sampling method. A questionnaire consisting of three parts was sued to collect primary data. The collected data were analyzed and interpreted using simple statistical techniques. FINDINGS The findings of the data indicated that the areas found to be most negatively affected by stress were job satisfaction/morale, courtesy, creativity, and productivity. In addition, personal appearance and absenteeism were listed as the areas least affected by stress. According to the results of the study, employers today are offering a wide variety of needed programs to manage the stress of their employees. CONCLUSIONS One of the main conclusions drawn from the study was that stress does not negatively affect the work performance of employees. Therefore, stress is not just an individual issue but an issue that must be addressed by both the employer and the employee; the work performance areas negatively affected have a direct effect on the company as a whole.

The Effects of Stress on Business Employees and Programs Offered by Employers to Manage Employee Stress

Section I Introduction to the Study

Introduction Today, many organizations and employees are experiencing the effects of stress on work performance. The effects of stress can be either positive or negative. What is perceived as positive stress by one person may be perceived as negative stress by another, since everyone perceives situations differently. According to Barden (2001), negative stress is becoming a major illness in the work environment, and it can debilitate employees and be costly to employers. Managers need to identify those suffering from negative stress and implement programs as a defense against stress. These programs may reduce the impact stress has on employees work performance. Statement of the Problem The purpose of this study was to determine the negative effects of stress on employees and the methods employers use to manage employees stress. Significance of the Study There are three primary groups that may benefit from this study. The first group, consisting of employees in todays business organizations, may learn to identify ways that stress negatively affects their work performance. Identifying the negative effects may enable them to take necessary action to cope with stress. By sharing this knowledge, employees can act as a vehicle to help management implement appropriate stress reduction programs. The second group that may benefit from this study is employers who may gain insight as to how stress is actually negatively affecting employees work performance. Finally, educators can use these findings as a valuable guide to incorporate into their curriculum. By emphasizing to students the importance of developing programs

2 to deal with stress, the students may be able to transfer this knowledge to the workplace, thereby improving the quality of the work environment.

Scope of the Study This study was limited to the perceptions of full-time business employees as to the negative effects that stress has on work performance and the steps that employers are taking to manage stress. For the purpose of this study, what constitutes full-time employment is defined by the employer. This study was restricted to businesses operating in the Central Texas area. The Central Texas area encompasses all communities within Hays, Kendall, Travis, and Williamson counties. For the purpose of this study, stress is defined as disruptive or disquieting influences that negatively affect an individual in the workplace. Data for this study were collected during the fall of 2002.

Review of Related Literature Barden (2001), a freelance writer specializing in health care and a former managing editor of commerce and Health, stated the importance of wellness programs and gave specific examples of corporations that are successfully implementing such programs. The Morrison Company currently saves $8.33 for every dollar spent on wellness by offering programs such as weight loss, exercise, and back care. Axon Petroleum estimates that wellness programs will save $1.6 million each year in health care costs for its 650 employees. In addition to Morrison and Axon Petroleum, Barden cited the savings for six other companies. According to the Wellness Bureau of America, the success of these companies offers concrete proof that wellness programs pay off by lowering health care costs, reducing absenteeism, and increasing productivity. Foster (2002), a professional speaker on stress management, surveyed mid-level managers and found stress to be a major determinant in worker productivity. According to the study, the primary areas affected by stress are employee morale, absenteeism, and decision-making abilities. By recognizing that a problem exists and by addressing the issue, managers can reduce stressful activities and increase worker performance in the business organization. Harrold and Wayland (2002) reported that increasing stress affects morale, productivity, organizational efficiency, absenteeism, and profitability for both individuals and the organization. The problem for businesses today is knowing how to determine stressful areas in their organizations and how to use constructive confrontation methods to reduce stress and improve efficiency. According to the authors, organizations that make a positive effort to deal with stress not only help build trust among their employees, but also increase the productivity of their employees and the organization as a whole Maurer (2002) stated that stress-induced illnesses are prevalent in the workplace today, and stress is the problem of the sufferer and the employer. Stress causes absenteeism and

3 can lead to other problems such as drug addiction, alcoholism, depression, and poor job performance. According the Maurer, the annual Barlow Corporation Forum on Human Resource Issues and Trends reported that large numbers of companies noticed sever levels of stress exhibited by employees. The forums panelists agreed that more needed to be done in the workplace to help employees manage stress. Some of the suggestions were to expand wellness programs, offer stress-management seminars and teach staff how to balance work and family life. Maurer also noted the Olympic TeamTech, a computer management company, has dealt with employee stress by providing training programs, monitoring employee concerns, and meeting once a month to be proactive instead of reactive. Olympic TeamTechs turnover is less than the industry average. Schorr (2001), a stress-management consultant, stated that stress causes problems in the workplace which negatively affect employee health and organizational productivity. Stress can lead to problems such as job dissatisfaction, alcoholism, absenteeism, physical ailments, and poor job performance. If managers know how to prevent and cope with stress, productivity can be increased. Many companies instituted stress-management programs that led to a decline in absenteeism, a decrease in sickness and accident costs, and/or an increase in job performance. Schorr reported that a stress inventory, available from a stress-management program, can assist executives and managers in assessing employee stress. The inventory can identify the sources of stress, which may include physical elements as well as other factors. Once these sources have been assessed, the program can provide the necessary skills for coping with the problems, and participants can learn that there are alternative ways of reacting to stress.

Methods of the Study Source of Data Data for this study were collected using a questionnaire developed by a group of students at Southwest Texas State University. The questionnaire was divided into three parts. Part one consisted of a list of 15 work performance areas that may be negatively affected by a persons level of stress. Respondents were asked to indicate whether stress increased, decreased, or had not changed their work performance in each area. They were also asked to indicate from the list of 15 work performance areas the area that was the most negatively affected by stress and the area that was the least negatively affected by stress. In the second part of the questionnaire, a list of 17 programs was provided and the respondents were asked to indicate which programs their companies had implemented to manage stress. Part three was designed to collect demographic data for a respondent profile, including full-time employee classification and age group. A copy of the questionnaire is contained in Appendix A on page 12. Sample Selection The respondents involved in this survey were employees working in companies located in Central Texas. A nonprobability, convenience sampling technique was used to collect primary date. Each member of the research team was responsible for distributing three

4 questionnaires to members of the sample. To ensure confidentiality, respondents were given self-addressed, stamped envelopes in which to return their completed questionnaires to Southwest Texas State University. Controls were used to eliminate duplication of the responses. Statistical Methods Simple statistical techniques were used to tabulate the results of this study. The primary data were analyzed using a percent of response. To compute the percent of response, the number of responses to each choice was divided by the total number of respondents who answered the question. In question one, the percents of responses for the negative effects of stress on the 15 work performance areas were reported. The results of the next two questions were tabulated by totaling the number of respondents who chose an area they believed was least or most affected by stress. The fourth question reported the percent of respondents whose employers offered the listed programs to manage stress. Questions five and six asked the respondents to indicate if they were considered full-time employees and to indicate their age group.

Limitations of the Study This study may be limited through the use of a questionnaire as a data collection instrument. Because questionnaires must generally be brief, areas that may have been affected by stress may not have been included in the questionnaire. Also, all programs that may be available to employees for managing stress may not have been included in the study. The study may also be limited by the use of a nonprobability, convenience sampling method. The sample of business employees for the study was chosen for convenience and may not be representative of the total population of business employees. Care should be taken when generalizing these findings to the entire population. Finally, the use of simple statistical techniques may introduce an element of subjectivity into the interpretation and analysis of the data. All attempts have been made to minimize the effects of these limitations on the study.

5 Section II Each section starts on its own page, even if there is room on the previous page. Findings, Conclusions, and Recommendations Introduction This study was designed to determine the effects of stress on employees and to discover methods employers use to manage employees stress. Sixty questionnaires were distributed to business employees in the Central Texas area, and the response rate was 78.3%. This section includes the findings, conclusions, and recommendations. Findings The findings will be presented in three sections according to the following characteristics: Demographic Profile, areas of Job Performance Affected by Stress, and Programs Employers Offer Employees to Manage Stress. Demographic Profile All returned responses from the sample were considered full time employees by their employers. The respondents were also asked to indicate their age group; all age ranges were represented in the results, as shown in Figure 1. The breakdown consisted of 2.1% under the age of 20, 33.7% between 20 and 29, 29.4% between the ages of 30 and 39, 26.1% between 40 and 49, 5.4% between 50 and 59 and 3.3% were 60 and over.

Age Group

5 4

6 1 2

1--Less than 20 2--20-29 3--30-39 4--40-49 5--50-59 6--60 or over

2.1% 33.7% 29.4% 26.1% 5.4% 3.3%

Figure 1: Age Distribution of Respondents

Areas of Job Performance Affected by Stress The respondents were given a list of work performance areas that might be affected by stress and were asked to identify whether stress increased, decreased, or had no change on their work performance. Only respondents who indicated stress negatively affected an area were considered in these finding. Of the 15 areas listed, four areas were identified as having a response rate of more than 50%. These areas were as follows: job satisfaction/morale (73.9%), courtesy (65.2%), accuracy (52.7%), and creativity (56.1%). Similarly, Schorr (2001) stated that a significant number of employees creativity is negatively affected by stress. Also, Harrold and Wayland (2002) agreed that morale is strongly affected by stress. Falling within the range of a 30.0 to 50.0% response rate were cooperation (49.5%), organizational skills (46.3%), initiative (45.2%), productivity (42.8%), alertness (39.4%), decision making abilities (39.1%), and perseverance (35.5%). Harrold and Wayland (2002) established that increasing stress and anxiety are having a negative influence on an individuals organizational efficiency and productivity. The findings that negatively affect work performance are shown in Figure 2.

15 13 11 9 7 5 3 1 0% 20% 40% 60% 80%

1. 2. 3. 4. 5. 6. 7. 8.

42.8% Productivity 73.9% Job Satisfaction/Morale 39.1% Decision Making Abilities 52.7% Accuracy 51.6% Creativity 28.0% Attention to Appearance 46.3% Organizational Skills 65.2% Courtesy

9. 10. 11. 12. 13. 14. 15.

49.5% 45.2% 26.6% 39.4% 35.5% 25.8% 28.3%

Cooperation Initiative Reliability Alertness Perseverance Tardiness Absenteeism

Figure 2: Negative Effects of Stress on Work Performance

Central Texas employees indicated the area they believed was most affected by stress and the area they believed was least affected by stress. According to the results, job satisfaction and productivity were thought to be most affected by stress. On the other end of the scale, areas least affected by stress were personal appearance and absenteeism. However, Schorrs (2001) study found that, on the average, individuals experiencing stress are more inclined to be absent or tardy. Programs Employers Offer Employees to Manage Stress Question four listed 17 programs offered by employers for managing stress. Respondents were asked to indicate which programs their companies had implemented to manage stress. The responses for each program are shown in Table 1. TYPE OF PROGRAM Insurance Breaks Educational Assistance/Reimbursement Access for Disabled Alternate Schedule Employee Assistance Program Wellness Programs Flextime Stress Management Seminars Training Programs Piped Music Assigned Parking Employee Empowerment Programs Ergonomically Correct Furniture Financial Counseling On-Site/Assistance with Child Care Therapy Table 1: Programs Offered by Employers to Manage Stress. Insurance received the highest number of responses (72%), whereas therapy received the lowest (2.1%). Playing classical music and creating a comfortable work environment RESPONSES 72% 69.2% 51.0% 42.6% 34.0% 34.0% 34.0% 29.8% 29.8% 29.8% 17.2% 17.0% 17.0% 17.0% 8.5% 4.3% 2.1%

8 were found by Foster (2002) to be low cost stress reduction programs. Although these are inexpensive programs to implement, a relatively small response rate was given for piped music (17.2%) and ergonomically correct furniture (17%). Maurer (2002) stated that it is necessary for companies to design programs that enable employees to assess stressful situations and develop a rational mode of behavior. In contrast to Maurers research, only 17% of the respondents indicated that Employee Empowerment Programs are being offered by their employer. A response rate of 34% in the category of wellness programs/on-site fitness facilities was obtained. Barden (2001) reported programs that improve an individuals physical condition are both a positive and an effective method of managing stress. The remaining methods for managing stress were varied. Listed in decreasing percentages, they are as follows: breaks (69.2%), educational assistance/reimbursement (51%), access for disabled (42.6%), alternative schedules (34%), Employee Assistance Programs (34%), Wellness Programs (34%), flextime (25.8%), stress management seminars/classes (29.8%), training programs (29.8%), assigned parking (17%), financial counseling (8.5%), and on-site/assistance with child care (4.3%).

Conclusions On the basis of the findings, several conclusions concerning the effects of stress on Central Texas business employees can be drawn. The findings of this study indicated stress does negatively affect the work performance of employees. Job satisfaction and productivity were indicated as two areas most affected by workrelated stress. Therefore, stress cannot be considered just an individual issue because reduced job satisfaction and lower productivity has a direct effect on the company as a whole. From this study, it can be concluded that employers have realized the importance of managing stress in the workplace because of the wide variety of programs now offered to manage stress. Of all the programs offered by employers, insurance is the most frequently offered means for managing stress. Because insurance acts as a security net for employees and is offered the most, it can be inferred that employers contend that insurance is the most effective means for managing stress.

Recommendations Based on the findings and conclusions in this study, the following recommendations are made: 1. 2. 3. 4. 5. Employers should offer various stress reduction programs to help employees manage stress because stress is prevalent in the workplace. Employers should conduct a survey of the programs they already offer to discover which programs are the most effective for managing their employees stress. Employees should share their ideas for managing stress with their employers in order to help their employers implement appropriate stress reduction programs. Educators should incorporate into their business curriculum discussions of stress in the workplace and ways to manage stress. Additional research should be done. First, other areas negatively affected by stress should be studied to determine if stress affects other aspects of an employees life. In addition, other factors should be examined to learn what the personal and work-related causes and symptoms of stress are for an individual.

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Reference Barden, Nancy Ray. (2001) Wellness Programs: Everyone Wins. Commerce and Health. Foster, Lucy Barnes. (2002) Workplace Stress: Changing the Pattern. Sales and Marketing Journal. Harrold, Robert and Wayland, Michael. (2002) New Methods to Reduce Workplace Stress. Industrial Concepts. Maurer, Marcia K. (2002) Is Stress Running Your Life? Modern Office Innovation. Schorr, Leslie. (2001) Coping with Stress, Boosting Productivity. Employment News.

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Appendix A Questionnaire As you have already designed your questionnaire, simply type Appendix A as a heading, type the page number(s) at the top, and include here. Appendix B is your data analysis. Dont forget page numbers and to include on the Table of Contents (TOC) Appendix C is your PPT slides, see chapter 19 for proper formatting, again dont forget page numbers for your TOC Appendix D, E, F, etc., are extra figures and tables, make sure they are referenced in the body of the text, if you choose to include them. TOC and page numbers.