Organizational Degradation due to Stress:

An Empirical Study in Sri Lankan Private Sector

Commercial Banks
W R P K Fernando
Department of Commerce and Financial Studies, Bharathidasan University, India
Email: ranjith765@yahoo.com

Abstract
Stress is a normal part of human life in the modern world. People grow by mastering the
challenge and when the challenge exceeds the human capacity to adapt, and then stress
develops. The consequence of stress is a deviation from the existing physical and psychological
condition of human life. Long term stress is an important factor in the development of physical
illness, including such leading causes of death as heart disease and high blood pressure. The
cost of stress in terms of human suffering, social and occupational impairment, and illness are
enormous. The objectives of this study are to identify the level of occupational stress, relationship
between variables and contribution of variables among branch managers of private sector
banks in Western Province of Sri Lanka. A sample of 34 managers out of 332 branches in
western province was randomly chosen for the purpose of this study. The study found that there
is evidence for increased stress levels and it has been implicated for psychological illness
amongst managers. The study concluded that stress of a single worker is also found to be
harmful to entire institute.
Key Words: Occupational Stress, Job Involvement, Personal Traits, Emotional Condition,
Environment, Sociological Factors.

Introduction

The stress is a burning issue in modern society. The effect of stress is a deviation from
the existing physical and psychological condition of human life. The stress is regarded
as an inevitable consequence of employee functionality. The occupational stress adversely
affects the health and performance of the employees of an organization. According to
Nelson and Quick (2003) stress is an important topic in organizational behavior, in part
due to the increase in competitive pressures that take a toll on workers and manager
alike. The occupational stress should not be considered as a problem of an organization

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alone. In general, an economy and a society consist of so many socio and economic
institutions. These institutions are inter-related in nature. Hence, it should be understood
that if the stress of an individual worker not only affects the institution or organization
he concerned but also other institutions and organization of an economy as well.

With so many factors contribute to stress; it is difficult to define the concept of stress.
However, many people have attempted to define the concept of stress. The first actual
scientific investigation of stress is attributed to by Hans Selye (1956), who is considered
by many to be the “Father of stress” (Steve M Jex., 2002). Stress occurs “when the
perceived pressure exceeds your perceived ability to cope” (Lawless and Allan, 2004).
It is identified that occupational stress is inevitable in the present fast-moving world and
it becomes an important issue in the study of organizational behavior.

Moreover, stress-related disability has more than doubled during the past decade.
Affecting more than just work productivity, the impact of stress on the individual is
substantial, resulting in decreased physical and psychological health (Sutherland and
Cooper, 1988). Many major international agencies, such as the International Labour
Office and the World Health Organization are addressing issues surrounding workplace
stress (Lehrer Andrew Marshall, 2005). The previous studies conducted so far on this
topic in Sri Lanka have covered only the behavioral aspects of a person who is affected
by stress. Further they failed to measure the level of stress among bank managers.
The present study is one such an effort.

Statement of the Problem

There are numerous common causes of work-related grievances including lack of free
time, job environment problem, high workloads, low salary, unrealistic deadlines, job
insecurity, lack of clarity of role, and a sense of feeling undervalued. However, roles
without sufficient levels of challenge, lack of clear policies and procedures, and weakly
managed organizational situations may also lead to stress. Whilst external causes of
stress are more challenging for managers to proactively manage, an employee who

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receives support from his organization is more likely to limit how this impacts his work
role.

As mentioned above, though the bank industry is important in different ways, it seems
that there are invisible problems due to stress in this industry. A large number of researches
exist on topics that measure the construct of stress. Thousands of studies have been
conducted that identify various sources of stress (Hoffman 2006). But Sri Lankan
researchers did not study yet above concern. There is no any attempt in Sri Lankan
context that has focused on stress among bank staff. What factors that influence on
stress, consequences of stress on organizational level, the syndromes of stress, the
level of stress and coping strategies have not been investigative so far. Therefore, it is
timely important to investigate this issue.

Literature Review

Chandraiah, K., Agarawal, S.C., Marimuthu, P., Manoharan, N. (2003) investigated

the effect of occupational stress and job satisfaction among managers of different age
groups in Calcutta City, India. The findings of the study revealed that there was positive
relationship between higher levels of job stress and reduced job satisfaction among
managers of 25-35 years of age than their counterparts in the middle age (36-45 years)
and the old age groups (46-55years). The study found that the age negatively correlated
with occupational stress and positively correlated with job satisfaction.

Hoffman Richard’s (2006), study consisted of stress among graduate level counselor
education students at different stages during their training program in Duquesne
University Pittsburgh (USA). Variables were compared among the students to
determine it a difference in stress levels exists at different times during their training.
The data displays a directional trend of increasing stress as the student’s progress
through their training program.

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Clements–Croome Derek and Baizhan Li. (2000), found that crowded work places, job
dissatisfaction and physical environment were the main factors affecting the productivity.
Besides, the thermal problems, stuffiness, sick building syndrome factors and crowded
work places were the most frequent complaints. The results of the study showed that
the primary factors influencing productivity varied between organizations, and also
between buildings or offices within the same building. The authors suggested that the
productivity could be increased by 4% to 10% by improving the office environmental
conditions.

According to Lane Rebecca Spooner (2004); the thesis explores the influence of social
support on the stress-burnout relationship in nurses. According to the hypothesis of the
study, social support buffers the negative effective of stress that resulted in highly
conflicting findings. The overload, Job conditions and Role conflict were the main
determinants of Emotional Exhaustion. The research found no significant evidence to
support the buffering effect of work support on burnout. The sample of Australian
nurses reported low to moderate levels of work stress, moderate levels of work support
and moderately high levels of burnout.

Williams Stephen and Cooper Cary L. (1998) used the outcome scales to measure job
satisfaction, organizational satisfaction, organizational security, organizational
commitment, anxiety depression, resilience, worry, physical symptoms, and exhaustion.
A sample size of the study was of 28,000 workers in 215 organizations. Factor analysis
was used for evaluating the mental and physical health scales. The authors found that
the linked stress at work caused poor work performance, acute and chronic health
problems and employee burnout.

Constantinescu Maria and Constantinescu Cornel (2007), lays on the assertion that
military environment (Sweden), and petitioner environment take to the growth of stress
because of the negative disparity between the weights of time destined discharging job
tasks and the weight of time earmarked relaxation and other needs. Stress lies at the

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ground of many such diseases. The study found that stress is not only the result of
major events, but also of daily tensions and pressures.

To sum up the review of literature, many contributions have offered various views of
stress in different occupation states worldwide and explained many variables, models,
analyzing tools, coping strategies and outcomes of stress. The review of literature
validated the suitability of the variables to answer the research issues.

Objectives

The objectives of the study are;

1. To investigate level of stress among private sector bank-branch managers
2. To identify factors (variables) causing occupational stress among bank- branch
managers
3. To identify relationship between variables of stress among bank- branch managers
4. To identify more contribution of variables towards the total stress bank- branch
managers

Hypotheses
The Hypotheses of the study are;
NH 1 The socio- economic factors have no significant influence on the personal traits
related stress factors
NH 2 There is no significant difference of stress between respondents before and after
becoming bank- branch manager
NH3 There is no significant difference in the level of job involvement related stress
between the respondents after becoming bank-branch manager in the different
districts.

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Methodology
Sample: The population for the study consists of private sector banks managers in the
Western Province of Sri Lanka. The 10% of sample was selected from 332 branches in
Western Province (Central Bank of Sri Lanka, Economic and Social Statistics of Sri
Lanka, 2007). The sample for this study consisted of 34 managers (branches), drawn
on the basis of random sampling from banks in Western Province.
Procedure: The required data for this investigation were collected through questionnaire
using the five point Likert scale, from managers in their branch offices. There are 50
questions (multiple choice) in the schedule. Total score on this scale is considered for
the assessment of occupational stress totally. More the score on this scale indicates
more stress.
Statistical Tools: The variables were analyzed by the percentage analysis, multiple
regression and Karl person's coefficient of correlation using the software SPPS. And
also, chi-square, gap analysis and ANOVA were applied in this study for testing the
hypothesis.
Area of Study: The study has conducted in western province of Sri Lanka.

Variables of the Study

Job Involvement,
Personal Traits,
Environmental Factors,
Emotional Condition,
Sociological Factors.

Measure Frame of Stress Levels

The responses of all the questions in the schedule were tested using the five point
scales taking point as 5, 4, 3, 2 and 1. As a first calculation for total variables: 250 is the
highest value and 50 is lowest value. The difference between these two values is 200

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An Empirical Study in Sri Lankan Private Sector Commercial Banks

(250 - 50). The value 200 was divided by 4 so as to make a four range continuum (200/
4=50) which could categories the respondents’ responses. The following figure shows
the distribution of range of stress.

Figure 1:

The range of stress can be categorised in to four namely High Stress Level, Considerable
Level, Moderate Level and Low Stress Level 150 is central point of values.

Low stress level and moderate level of stress are manageable but considerable level
and high stress level are damageable for both side; human and organisation. This concept
was used because the directions of the relationships were theoretically predictable.

Analysis and Results

The Calculations of Degree of Stress Level

The calculations of degree of stress level for total variables are presented in Table 1
along with frequencies and percentages.

Table 1: The Levels of Stress

Source: Primary Data

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The cumulative score of the respondents have been classified into different levels of
stress. From the table 1, it is obvious that the highest frequency (21) is recorded under
moderate level. It is indicated more respondents (bank managers) suffering from stress.
Moderate stress is manageable. If any employee is suffering from less amounts of
stress like low level and moderate level, employee can use it for his development and
also organization can use him for the purpose of maximizing organizational goals. But
13 respondents are under considerable. Stress this considerable stress situation is not
good for the person as well as organization.

Variable wise Contribution towards the Total Stress

In this study the multiple regressions is employed between the total stress scores of the
managers (dependent variable) and the independent variables such as Job Involvement,
personal traits, environment factors, emotional condition and sociological factors to
identify which type of stress has more contribution towards the total stress through R2,
the coefficient of determination. Table 2 describes the results of multiple regression
analysis of the respondents in the Western Province in terms of R (Multiple Correlation
Co-efficient), R2 (co-efficient determination) and the incremental value of R2

Table 2: Result of Multiple Regression Analysis

Source: Primary Data

It is found from the Table 2 that among the five factors, the job involvement related
stress explains 54% of the total stress. The personal traits related stress accounts for
13.2%. The environment related stress explains 17.4%, emotional conditions related

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stress accounts for 12.2% and sociological factors 3.2% on the total stress. It is inferred
that job involvement related stress gets 41.8% while personal traits related stress. It is
also noted from the above Table that nearly 41.8% is recorded in the job involvement
related stress among managers in the Western Province.

Correlation of Variables

The results of inter correlation analysis between the different variables of stress among
the branch managers working in the Western Province are presented in Table 3 in the
form of correlation matrix, Further, the significance of the correlation is indicated.

Table 3: Correlation of Variables

Source: Primary Data *- Significant at 5% level

The Table reveals that there exists significant inter correlation between the different
variables of stress among the managers working in the Western Province of Sri Lanka.
It is inferred that there exists significant inter correlation between the various stress
related factors of the managers working in the Western Province of Sri Lanka.

Testing of the Hypotheses

Relationship of Socio-Economic Factors to Personal Traits Related Stress

Table 4 describes the socio-economic factors, the chi-square values,

and their significance on personal traits related stress among the managers working in
private sector banks in Western Province of Sri Lanka

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Table 4: Chi-Square Values and their Significance – Personal Traits Related

Stress

Source: Primary Data *-Significant (p value £ 0.05)

It is found from the Table 4 that the hypothesis (H1), namely, “the socio- economic
factors have no significant influence on the personal traits related stress factors” is
rejected. The chi-square value was significant in three cases of Colombo Districts, five
cases in Gampha Districts and four cases in Kaluthara District. In other cases, the
above hypothesis is accepted since chi-square value was not significant. It is inferred
that the entire socio economic factor, except marital status, exerted significant influence
on the personal traits related stress. This was more significant in Gampha District than
other Districts.

Gap analysis-District wise

The results of Gap Analysis in terms of the variables related stress, t values and their
significance are given in

Table 5: Results of Gap Analysis – District wise

Source: Primary Data *- Significant at 5% level

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It is found from the Table 5 that the hypothesis (H2), entitled, “there is no significant
difference of stress between respondents before and after becoming bank-branch
manager in western province of Sri Lanka”, is rejected because t values were significant
in all cases in Colombo and Kaluthara Districts and 04 cases in Gampha District. It is
noted that there exists significant difference between all the variables before and after
becoming manager in the Western Province of Sri Lanka. It is also a fact that the level
of stress is significantly more after becoming manager in the provinces.

Job involvement Related Stress after Becoming Branch Manager

Table 6 describes the results of ANOVA in terms of source of variation, degree of

freedom, sum of the squares, mean sum of squares, F ratio, p value and their significance
of the respondents after becoming manager on job involvement related stress
Table 6: Results of ANOVA- Job Involvement Related Stress after Becoming
branch Manager

Source: Primary Data S-Significant p-value d”0.05, NS-Not Significant (p-value >0.05)

According to the Table 6, the F value is 3.634 which is significant at 5% level. It is

found that the hypothesis (H3), “there is no significant difference in the level of job
involvement related stress between the respondents after becoming bank-branch
manager in the different districts” is rejected because the value is significant at 5%
level. In other words, there is significant difference in the level of Job Involvement
Related Stress between the respondents in different districts after becoming manager.

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Finding and Discussion

The study was conducted among the private sector bank managers in the western
province of Sri Lanka and the data obtained from them was used to validate the
information gathered. In general, numerous factors determine an individual’s behavioral,
physiological or psychological reaction under stress. The following are the findings and
discussion of the study.

Firstly, the finding from the Socio Economic Factors, the gender wise analysis
revealed that majority of managers were male in private sector banks of the western
province. Secondly, it was found that the majority of managers are at the age of 30 to
50 years old. Thirdly, regarding marital status from Socio Economic Factors, it is clear
that majority of managers were married. Fourthly, the result of analysis that there exists
significant inter correlation between the various stress related factors of the managers
in the western province of Sri Lanka. Fifthly, the analysis of this study shows that there
exists the significance difference between all the factors of the job involvement related
stress in the Western Province of Sri Lanka. Hence, the level of stress is significantly
more among managers. Sixthly, the inadequacy of experienced staff about banks was
considered to be another reason for increased level of stress. Therefore, once the
adequacies of experienced staff, the stress level would come down. Finally, the study
found that the less number of staff was considered as another important reason for
increased level of stress. Hence adequate number of staff should be recruited then
stress level would automatically come down.

Suggestions of the Study

The following suggestions are provided to reduce the stress among the private sector
bank managers in the western province.

First, according to the study the majority of managers are at the age of 40 to 50 years
old. The necessary steps are to be taken to replace employees as managers at earlier
age so, that may reduce the stress. Second, it was found that majority of the sample

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managers were from male category. Hence necessary steps to be taken to appoint
more female managers. Female managers by nature managers the stress than male
managers.Third, according to the study, the experience of majority of managers was
equal or less than 5 years. Managers should be provided more monetary benefit based
on experience, as the way to reduce the stress.Fourth, watching television exercise
excursion/picnic trip yoga, meditation, were considered for reducing stress. Fifth,
according to the study, the lack of adopting technology is the one reason that could
increase the level of stress. Hence it is suggested that steps are to taken to adopt
innovative technology to reduce the stress. Sixth, the result of study inferred that workers
illness, graveness and psychological problems were the important causes of stress. The
necessary steps are to be taken to organize the suitable training, treatment programme,
trips, picnic and get together parties for staff of banks. It may effect to minimize the
level of stress of managers. Final, head offices of the banks are working 24 hours a day
as day and night services. The respondents working time (shift system) was considered
to be another reason for increased level of stress. Thus it is suggested working time
(shift system) are to be changed to the connivance of employees to reduce the stress
level.

Conclusion

According to the analysis job involvement, personal traits, emotional condition,

environment and sociological factors, were significantly influenced on the total stress of
managers. It can be concluded that majority of Stress Related Factors are inter correlated
and Stress Related Factors have significantly influenced stress. Finally from overall
analysis, private sector bank managers were suffering from stress.

The goal of the study as such is not to eliminate stress but to learn how to cope with it
and how to use the knowledge of it to help society or organizations. From the study it is
very evident that stress cannot be avoided but could be managed or reduced. Recognizing
the early signs of stress and then paying attention to them can make an important
difference in the quality of human life and may actually influence human survival in the

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long run. Both individual (he/she) and organization have the responsibility to manage
stress; individual should manage his stress for his own benefit while the organization
should help to manage individual stress for its own survival and to fulfill organizational
objectives.

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