A STUDY ON JOB STRESS AND ITS INFLUENCE ON

PERFORMANCE OF EMPLOYEES IN FINANCIAL

SERVICE INDUSTRY

PROJECT REPORT
Submitted to Mahatma Gandhi University in partial fulfillment
of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by

JISHA VARGHESE

Reg.No.190031000653

Under the guidance of

Prof. Ligo Koshy

Faculty Guide

Accredited by NAAC with ‘A’ Grade

DEPARTMENT OF MANAGEMENT STUDIES
MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES
TIRUVALLA
2021
 MAR ATHANASIOS COLLEGE
FOR ADVANCED STUDIES
TIRUVALLA
Ph: 0469 2730323 Fax: 0469 2730317 macfast@macfast.org
www.macfast.org

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON JOB STRESS
AND ITS INFLUENCE ON PERFORMANCE OF EMPLOYEES IN
FINANCIAL SERVICE INDUSTRY ”is a bonafide report of the project work
undertaken by JISHA VARGHESE, fourth semester MBA student of our college
during the period from 1stApril to 31 May ,2021.
 DECLARATION

I hereby declare that this project report entitled "A Study on Job Stress
and its Influence on Performance of Employees in Financial Service Industry”
is a bonafide report of the study undertaken by me, under the guidance of Prof.
Ligo Koshy, Department of Management Studies, MACFAST, Tiruvalla.

I also declare that this project report has not been submitted to any other
University or Institute for the award of any degree or diploma.

Place: Thiruvalla
Date: 31.05.2021 JISHA VARGHESE
 ACKNOWLEDGEMENTS

First and foremost, I thank the Lord Almighty, for his perpetual shower of blessings, which
led to the successful completion of my project.
I take this opportunity to express my deep sense of gratitude to all those who have helped me
throughout this project. It gives me immense pleasure to acknowledge all those who have
rented encouragement and support for the successful completion of this work.

I express my profound gratitude and sincere thanks to Rev. Dr. Cherian J. Kottayil,
Principal of MACFAST, Tiruvalla.
I express my heartfelt thanks to Dr. Sudeep B. Chandramana, Head of Department of
Management Studies, MACFAST, Tiruvalla for inspiration and valuable suggestions for
carrying out this endeavor.
I express my deep sense of gratitude to Prof. Ligo Koshy, the faculty member of department
of management studies, MACFAST, for encouraging and inspiring me for developing the
project.
My project work involves many people at different stages. I would like to thank all those
who have directly or indirectly contributed to the success of the project.
I also take this opportunity to express profound gratitude to my parents, family members,
friends and several people who have contributed for the successful completion of the project.
It is my duty and pleasure to acknowledge them.
 LIST OF TABLE

Sl.No Title Page No

1 The 40 best 16-19

companies
in financial
service

LIST OF FIGURES

Fig.No Title Page No

1 Sources of Stress 29

2 Factors contributing to employee

performance 37
 CONTENTS
ACKNOWLEDGEMENT 1
LIST OF TABLE 2
LIST OF FIGURES 3

SI PAGE
CHAPTERS
NO NUMBER
Introduction – Statement of the Problem

1.1 Background of the Study 1-2

01 1.2 Statement of the Problem 2
1.3 Relevance & Scope of the Study 2-3
1.4 Objectives of the Study 3
Industry Profile

2.1 Business Process of the Industry 4-7

2.2 Market Demand & Supply – Contribution to GDP – Revenue
02 7-11
Generation
2.3 Level and Type of Competition – Firms Operating in the Industry 12-19
2.4 Pricing Strategies in the Industry 20
2.5 Prospects and Challenges of the Industry 20-24
2.6 Key Drivers of the Industry 25-26
Review of Literature

03 3.1 Brief Theoretical Construct related to the Problem 27-41

3.2 An Overview of Earlier Studies 41-49
3.3 Uniqueness of Research Study 50
Methodology of the Study

4.1 Research Approach and design 51-54

04 4.2 Sources of Online Data 55
4.3 Report Structure 56
4.4 Limitations of the Study 57
Discussion

05 5.1 Observations by the Candidate from Literature Review – Comparisons

58-59
5.2 Logical Conclusions related to the Business Problem 59
06 Findings of the Study 60
07 Conclusions 61
Bibliography 62
 CHAPTER 1

INTRODUCTION – STATEMENT OF
THE PROBLEM
1.1. BACKGROUND OF THESTUDY

Stress is generally defined as “physical, mental, or emotional strain or tension” or “a

condition or feeling experienced when a person perceives that demands exceed the
personal and social resources the individual is able to mobilize.”

Hans Selye, who first introduced the concept of stress into the life science in 1936,
defined stress as “the force, pressure, strain exerted upon a material object or person
which resist the forces and attempt to maintain its original state”. Simply, Stress is a
response to pressure or threat. Under stress we may feel tense, nervous, or on edge.
The stress response is physical, too. Stress triggers a surge of a hormone called
adrenaline that temporarily affects the nervous system.

As per the medical explanation of the term, “stress is the body’s general response to
environmental situations.”
It can lead to:
 Physiological discomfort
 Some kind of emotional unhappiness
 Strained relationships with other people

“Stress is defined as an adaptive response to an external situation that results in

physical, psychological and behavioral deviations for organizational participants.”

Job performance relates to the act of doing a job. Job performance is a means to reach
a goal or set of goals within a job, role, or organization, but not the actual
consequences of the acts performed within a job. Campbell affirms that job
performance is not a single action but rather a “complex activity”. Performance in a
job is strictly a behavior and a separate entity from the outcomes of a particular job
which relate to success and productivity.

According to Spector, “Employees with higher perceived control are less likely to
experience stress at work”. The employees’ performance is affected by stress that
indirectly affects the organization survival, it is because of the reason that if
employees reduce their work efficiency and can’t work best for their organizations,
then this situation not only affects the organizational performance but also results in

1
 loss of healthy shares in an increasingly competitive market, and may even jeopardize
the survival of the organization.

The study is to analyze the influence of job stress on employee performance The
objective of the study was to explore the level of stress in financial service industry
and its effect on employee performance.

1.2. STATEMENT OF THEPROBLEM

The study is about the influence of job stress on employee performance among the
employees Financial Service Industry. The purpose of conducting this project is to
identify the problems faced by employees of financial service industry and also to
understand the performance of employees and to analyze the ability to manage the
stress level. The project has a wide scope in measuring the working environment and
overall employee performance. Satisfied employees are the real worth of the
organization. Through this study there is possibility for improving the productivity of
the organization.

Companies that have implemented the stress management programs recognize that
employee welfare affects the bottom line of business. In today’s competitive world,
organizations are spending lot of time and money on employee satisfaction in an
effort to improve productivity, and also to help the organization needs.

1.3. RELEVANCE AND SCOPE OF THESTUDY

For any organization to survive, human resources are the important one. The success
of any organization to a great extend depends upon the quality of work efforts of the
personnel. Organizational behavior as a separate field of study and has received more
prominence than even before. An understanding of various types of stress on
employees and evolving strategies and appropriate measure to enable them to cope
with the situation is more significant in order to ensure better and efficient
performance of the institution. Unfortunately, organizational behavior and

2
 interpersonal process in human relations have not been taken seriously in Indian
organizations. These psychological problems deserve much importance in Indian
organizations.

There are many factors, which lead to the success of an organization. Hence the
present study was mainly focused on stress and its influence on performance of
employees. The study focused on the overall performance of the company and the
employees how efficient and effective they might be. This will be helpful for the
management to identify the strengths, weakness, opportunities and threats of the
company and contributions of the findings to various stakeholders.

SCOPE OF THE STUDY

The study is pertaining to the employees stress level in financial service industry. The
result of the study facilitates the firms to know the existing status of work
environment, satisfaction related to various facilities etc. Based on the study, the
organizations will get the points about the stress level of employees and other related
facts. So that the companies can adopt suitable measures for the development and
motivation of employees and also to maintain a satisfied workforce.

1.4 OBJECTIVES OF THESTUDY

 To analyze the level of stress among employees in the industry

 To analyze the relationship between job stress and performance of employees
in the industry
 To analyze the influence of job stress and employee performance among the
employees of different age group, gender, working experience and educational
qualifications.
 To suggest the measures to improve employee performance.
 To suggest measures to reduce stress among employees.

3
 CHAPTER 2

INDUSTRY PROFILE
2.1 BUSINESS PROCESS OF THE INDUSTRY.
The financial services industry manages money for individuals and corporations. It
comprises such organizations as commercial and investment banks, insurance
companies, hedge funds, credit-card companies, consumer finance firms, accounting
agencies, and brokerage firms. The industry’s services are mainly related to banking
and insurance services, asset management, investments, foreign exchange, and
accounting.

 Financial Service

Financial services are the economic services provided by the finance industry, which
encompasses a broad range of businesses that manages money including credit
unions, banks, credit card companies, insurance companies, accountancy companies,
consumer finance companies, stock brokerages, investment funds, individual
Managers and some government sponsored enterprises. Financial services
companies are present in all economically developed geographic locations and tend
to clusters local, regional, national and international financial centers.

Financial services are concerned with the design and delivery of financial
instruments and advisory services to individuals and businesses within the area of
banking and related institutions, personal financial planning, investment, real assets,
insurance etc.

Financial services form the life blood of economic growth and development. They
facilitate the setting up of big and small businesses and expansion of businesses.
Employment and Entrepreneurship created with the help of the services enable
people to earn and save.

 Features of Financial services

The features of financial service include;

● Financial services are intangible.

● Financial services are customer oriented.
● They are perishable in nature and cannot be stored.
● They are dynamic in nature as a financial service varies with the changing
requirements of the customer and the socio-economic environment.

4
 Types of financial services

Type of financial services includes;

● Capital market services:

It consists of term lending institutions which mainly provide long term
funds.

● Money market services:

It consists of commercial banks, financial institutions, and co-operative
banks which providing short term fund agencies.

● Retail service:
It is the services provided to individuals for direct consumption.

● Wholesale services:
These are the services provided to the corporate institutions which may
directly or indirectly converted into retail services.

● Fund based services:

It refers to the services that are used to acquire assets or funds for a customer.
It consists of;

1. Leasing
2. Hire Purchase
3. Factoring
4. Mutual Funds
5. Bill Discounting
6. Housing Finance
7. Venture Capital

5
● Fee based services
When financial institutions operate in specialized fields to earn income in form of
fees, commission, brokerage or dividends it is called a Fee based service. It includes;

1. Issue Management
2. Portfolio Management
3. Merchant Banking
4. Credit Rating
5. Stock-broking
6. Letter of Credit

 Services offered by financial services industry

Some of the services offered by the financial service industry include:

 Accounting
Accounting is the process of measuring the financial parameters of a company and
presenting them to investors and managers of the company for making investment
decisions and evolving management strategies.

 Brokerage
A firm that functions as an agent for the purchase of stocks or other financial
securities is known as brokerage.

 Consumer finance
The grant of loans or other credit lines to consumers is called consumer finance.

 Credit Cards
Credit cards are instruments that help the cardholder to make payments for goods or
services without using cash.

 Foreign Exchange

6
 Foreign Exchange is the conversion of one currency into another by individuals or
corporations for transnational needs.

 Hedge Finance
Hedge funds are flexible and help investors spread their risk through their diverse
investment opportunities.

 Insurance
Insurance is a risk management tool that an individual or company uses to transfer
risk of financial loss to an insurance company in return for a one-time or periodic
premium.

 Investment Banking
An investment bank enables corporations to raise capital and assists them in issuing
stocks.

 Retail Banking
Retail banking services are offered to individuals rather than to organizations.

 Venture Capital
These are the initial seed money provided to new business idea.

2.2 MARKET DEMAND & SUPPLY – CONTRIBUTION TO GDP –

REVENUEGENERATION

India has a diversified financial sector undergoing rapid expansion, both in terms of
strong growth of existing financial services firms and new entities entering the
market. The sector comprises commercial banks, insurance companies, non- banking
financial companies, co-operatives, pension funds, mutual funds and other smaller
financial entities. The banking regulator has allowed new entities such as payments
banks to be created recently thereby adding to the types of entities operating in the
sector. However, the financial sector in India is predominantly a banking sector with
commercial banks accounting for more than 64 per cent of the total assets held by the
financial system.

7
The Government of India has introduced several reforms to liberalize, regulate and
enhance this industry. The Government and Reserve Bank of India (RBI) have taken
various measures to facilitate easy access to finance for Micro, Small and Medium
Enterprises (MSMEs). These measures include launching Credit Guarantee Fund
Scheme for Micro and Small Enterprises, issuing guideline to banks regarding
collateral requirements and setting up a Micro Units Development and Refinance
Agency (MUDRA). With a combined push by both government and private sector,
India is undoubtedly one of the world's most vibrant capital markets. In 2017, a new
portal named 'UdyamiMitra' has been launched by the Small Industries Development
Bank of India (SIDBI) with the aim of improving credit availability to Micro, Small
and Medium Enterprises' (MSMEs) in the country. India has scored a perfect 10 in
protecting shareholders' rights on the back of reforms implemented by Securities and
Exchange Board of India (SEBI).

Market Size

The MF industry’s Assets Under Management (AUM) has grown from Rs 10.96
trillion (US$ 156.82 billion) in October 2014 to Rs 28.18 trillion (US$ 403.32
billion) in January 2021.

Another crucial component of India’s financial industry is the insurance industry. The
insurance industry has been expanding at a fast pace. The total first year premium of
life insurance companies reached Rs 214,673 crore (US$ 30.72 billion) during FY20.

Along with the secondary market, the market for Initial Public Offers (IPOs) has also
witnessed rapid expansion. In FY 21, Rs 14,674 crore (US$ 2.10 billion) has been
raised from Initial Public Offerings (IPOs).

Furthermore, India’s leading bourse Bombay Stock Exchange (BSE) will set up a
joint venture with EbixInc to build a robust insurance distribution network in the
country through a new distribution exchange platform.

8
Contribution to GDP

The financial services sector in India, which accounts for 6 percent of the nation’s
GDP, is growing rapidly. Although the sector consists of commercial banks,
development finance institutions, nonbanking financial companies, insurance
companies, cooperatives, mutual funds, and the new “payment banks,” it is
dominated by banks, which holds over 60 percent share.

The Reserve Bank of India (RBI) is the apex bank of the country, controlling all
activities in the financial sector. Commercial banks include public sector and private
sector banks and are under the regulatory supervision of the RBI. Development
finance institutions include industrial and agriculture banks.

Non-banking finance companies (NBFC) provide loans, purchase stocks and

debentures, and offer leasing, hire purchase, and insurance services.

Insurance companies function in both public and private sectors and are controlled by
the Insurance Regulatory and Development Authority (IRDA).

India also has a vibrant capital market with stocks exchanges controlled by the
Securities and Exchange Board of India (SEBI).

According to “India in Business,” a website of the Union Government, India’s

banking sector assets were worth $1.8 trillion in the 2014-15 financial year.

According to a report by KPMG-CII, India’s banking sector is on the way to

becoming the fifth largest in the world by 2020. The country’s life insurance sector is
the biggest in the world, and the market size is expected to touch about
$400 billion by 2020.

The assets of the mutual fund industry are worth $190 billion. The pension corpus
fund is projected to record $1 trillion by 2025. Reforms to put the financial services
industry and the economy on the fast track include measures to make finance
available to medium, small, and micro industries.

9
India once had a heavily government-dominated financial services industry, and most
services were provided by nationalized banks. Financial sector reforms were initiated
in 1991 with the aim of accelerating economic growth.

In the following years, industry and service sectors were opened up for foreign direct
investment. The reforms ended the dominance of the public sector and reduced direct
government control on industrial investments.

Financial sector reforms in India have improved resource mobilizations and

allocation. The liberalization of interest rates and the easing of cash reserve norms
have helped make funds available to various sectors.

However, prudential norms have been tightened and transparency and regulation
increased to avoid a systemic collapse that other countries have suffered.

Indian Financial Services Industry Report (February, 2020)

The country’s financial services sector consists of the capital markets, insurance
sector and non-banking financial companies (NBFCs). India’s gross national savings
(GDS) as a percentage of Gross Domestic Product (GDP) stood at 30.50 per cent in
2019. The total amount of Initial Public Offerings increased to Rs 84,357 crore (US$
13,089 million) by the end of FY18. In financial year 2019, total funds raised stood at
Rs 19,900 crore (US$ 2.85 billion). The number of Ultra High Net Worth Individual
(UHNWI) is estimated to increase to 10,354 in 2024 from 5,986 in2019.

India has scored a perfect 10 in protecting shareholders' rights on the back of reforms
implemented by Securities and Exchange Board of India (SEBI) in World Bank's
Ease of Doing Business 2020 report.

The asset management industry in India is among the fastest growing in the world. In
March 2019, corporate investors Assets Under Management AUM stood at Rs
9,54,627.51crore (US$ 136.59 billion), while HNWIs and retail investors reached Rs
7,51,666.95 crore (US$ 107.55 billion) and Rs 6,29,848.68 crore (US$ 90.12 billion),
respectively. In the Asia-Pacific, India is among the top five countries in terms of
HNWIs. The value of alternative investment funds rose from Rs 13,776

10
crore (US$ 1.97 billion) in June 2016 to Rs 74,817 crore (US$ 10.70 billion) in June
2019.

The MF industry’s Assets Under Management (AUM) has grown from Rs 10.96
trillion (US$ 156.82 billion) in October 2014 to Rs 28.18 trillion (US$ 403.32 billion)
in January 2020. In FY19, equity mutual funds have registered a record net inflow of
Rs 990.87 billion (US$ 14.18 billion). The equity mutual funds registered a net
inflow of Rs 4,499 crore (US$ 643.73 billion) in December2019.

Total equity funding's of microfinance sector grew at the rate of 39.88 to Rs 9,631
crore (Rs 4.49 billion) in 2017-18 from Rs 6,885 crore (US$ 1.03 billion) in 2016-
17. The public deposit of NBFCs increased from Rs 40,955.54 crore (US$ 5.86
billion) in FY09 to Rs 31,905 crore (US$ 4.95 billion) in FY18, registering a
compound annual growth rate (CAGR) of 36.86 per cent. The equity mutual funds
registered a net inflow of Rs 6,489 crorein September2019.

In November 2018, Bombay Stock Exchange (BSE) has enabled offering live status
of applications filed by listed companies on its online portal and introduced weekly
futures and options contracts on Sensex 50 index from October 26, 2018. The
Government of India is planning to launch a global exchange traded fund (ETF) in
FY20 to raise long term investments from overseas pension funds.

The Government of India has taken various steps to deepen the reforms in the capital
markets, including simplification of the Initial Public Offer (IPO) process which
allows qualified foreign investors (QFIs) to access the Indian bond markets. In 2018,
Rs 30,959 crore (US$ 4.43 billion) were raised from initial public offerings (IPOs)
whereas Rs 10,300 crore (US$ 1.47 billion) have been raised in H1 2019.

As per Union Budget 2019-20, 100 per cent foreign direct investment (FDI) will be
permitted for insurance intermediaries. The insurance sector could be opened to 74
percentage FDI from 49 per cent. Government has approved 100 per cent FDI for
insurance intermediaries.

11
2.3 LEVEL AND TYPE OFCOMPETITION

Competition in the financial sector matters for a number of reasons. As in other

industries, the degree of competition in the financial sector can affect the efficiency of
the production of financial services. Also, again as in other industries, it can affect the
quality of financial products and the degree of innovation in the sector. Specific to the
financial sector is the link between competition and stability that has long been
recognized in theoretical and empirical research and, most importantly, in the actual
conduct of prudential policy towards banks. Importantly, it has also been shown,
theoretically as well as empirically, that the degree of competition in the financial
sector can affect the access of firms and households to financial services and external
financing. The direction of the latter relationship is, however, unclear. Less
competitive systems may lead to more access to external financing since banks are
more inclined to invest in information acquisition and relationships with borrowers.
When banking systems are less competitive, however, hold-up problems may lead
borrowers to be less willing to enter such relationships. Furthermore, less competitive
banking systems can be more costly and exhibit a lower quality of services thus
providing less financing and encouraging less growth. These effects may further vary
by the degree of a country’s financial sector development.

The financial services sector has gone through an extraordinary change in the last few
years. Customer demands are changing with time as they are expecting more
personalized services from their banks. Today, information is available in abundance
and is doubling in every two years. The biggest challenge for the industry now is to use
the breadth and depth of the data available to satisfy the market demand.

The growth in data presents a kind of challenge as well as an opportunity for the
financial industry. Companies need to unlock the potential of the data through analytics
and shape the strategy for the business through reliable factual insight rather than
intuition. The problem is tackled by using big data which enhances the performance of
the organization and changes the way they interact with customers, competitors and the
market through fact-driven decision-making. Organizations that master in this will be
able to set the trend in customer service, improve profitability and respond more rapidly
to the evolving regulatory and competitive demands of the industry.

12
Types of competition:

 Banking competition

 Competition between the state and non-state banks

 Competition between banks and non-banking credit institutions.

 Competition between banks and non-financial institutions.

Firms operating in the industry:

The following are the list of firms operating in the financial service industry in India:

 5paisa
 Angel Broking

 User:Ashok2102/sandbox/groww
 Atom Technologies
 Axis Direct

 Bajaj Allianz General Insurance

 Bajaj Finance
 Bonanza Portfolio 

 Central Registry of Securitization Asset Reconstruction and Security Interest

 Computer Age Management Services
 Creditseva

 Darashaw

 Edelweiss Broking Limited

 Edelweiss Group
 Eko India Financial Services

 Financial Hospital
 Financial Technologies Group

13
 Fullerton Securities

 Geojit Financial Services

 Groww

 HeroFin Corp

 IFCI Ltd
 Incred Finance
 India Infoline
 Indiabulls 
 Indiabulls HousingFinance
 Industrial Investment Bank ofIndia 
 Infrastructure Development Finance Company
 Infrastructure Leasing & Financial Services

 Karvy Corporate
 Kotak Mahindra Bank
 Kuvera.in

 Mahindra & Mahindra Financial Services Limited

 Mehta Group
 Micro Units Development and Refinance Agency Bank
 Micro Finance Institutions Network
 Motilal Oswal Group
 Muthoot
 Muthoot Finance
 Mutual funds in India

 National Backward Classes Finance and Development Corporation

 National Handicapped Finance and Development Corporation
 National Minorities Development and Finance Corporation
 National Payments Corporation of India
 National Safai Karamcharis Finance and Development Corporation
 National Scheduled Castes Finance and Development Corporation

14
 National Scheduled Tribes Finance and Development Corporation
 NBFC & MFI in India
 Nidhicompany

 Paisa Dukan
 Payworld
 Peerless Group
 Pioneer Investcorp Ltd.
 Power Finance Corporation

 R K Global
 REC Limited
 Reliance Capital
 Religare
 RKSV

 Scripbox
 Shriram Group
 Tamil Nadu Industrial Investment Corporation Limited
 Small Industries Development Bank of India 
 Stock Holding Corporation of India

 ULJK Group

 Zerodha

15
 The 40 Best Companies in Financial Services (Fortune ranking)

Table no 1

Sl.no Company Industry HQ location Employees Global

Revenue

1 USAA Financial Service San Antonio 28,738 $ 24 billion

2 Banking/Credit 13,690
Quicken Loans -
Services Detroit

3 Navy Federal Credit Banking/Credit Vienna, Va $4.7 billion

Union Services 13,832

4 Edward Jones Investments St. Louis 39,907 $6.7 billion

5 Capital One Financial Banking/Credit McLean, Va. 40,407 $23 billion

Services

6 Nationwide General Insurance Columbus, Ohio Confidential -

7 Pinnacle Financial Banking/Credit 1,206 $323

Partners Services Nashville million

8 Prime Lending Banking/Credit Dallas 2,915 -

Services

9 Bankers Healthcare Banking/Credit Davie, Fla. 299 -

Group Services

Credit Acceptance Banking/Credit Southfield, Mich. 1,540 $825

10 Corporation Services million

16
 Veterans United Home Banking/Credit Columbia, Mo. 1,991 -
11 Loans Services

Banking/Credit Cherry Hill, N.J. 26,593

12 TD Bank Services & Portland, -
Maine

13 Banking/Credit New York City Confidential $32.8

American Express Services billion

14 On Deck Capital General Insurance New York City 625 $254

million

15 Allianz Life Insurance

Company of North Life Insurance Golden Valley, 1,802 $11 billion
America Minn.

16 New American Funding Banking/Credit Tustin, Calif. 2,014 $378

Services million

17 ESL Federal Credit Banking/Credit 717 $184

Union Services Rochester, N.Y. million

18 U.S.Bank Banking/Credit Minneapolis 66,393 $20.3

Services billion

19 Mountain America Banking/Credit West Jordan, 1,634

Credit Union Services Utah $307
million

General Insurance, Sheboygan, Wis 1,207 $1.3 billion

20 Acuity Insurance Auto Insurance,
Home Insurance

17
21 American Fidelity Life Insurance Oklahoma City 1,757 $1.17
Assurance billion

22 Banking/Credit San Diego 652 -

Renovate America
Services

23 First Horizon National Banking Memphis 4,300 $26 billion

24 Baird Investments,
Accounting, Milwaukee 3,196 $1.3 billion
Banking services

25 Grow Financial Federal Banking/ Credit Tampa 568 -

Credit Union Services

26 Evergreen Home Loans Credit Services Bellevue, Wash. 541 -

27 First American Title Insurance and Santa Ana, Calif. 11,659 $5.2 billions
Financial Settlement Services

28 $232
Investment, Rolling Meadows, 425
Alliant Credit Union million
Banking Service Ill.

29 Walker &Dunlop $ 468

Investments Bethesda, Md. 513
billion

30 Total Merchant Banking/Credit Woodland Hills, 279 -

Services Services Calif.

18
31 Aflac Health Insurance Columbus, Ga. 5,374 $20.9
billion

-
32 Oppenheimer Funds Investments New York City 2,039

Banking/Credit Irvine, Calif. 500 $39.9

33 Network Capital
Services million
Funding

34 City Credit Union Banking/Credit Dallas 120 -

Services

Funeral $277
35 Life Insurance Abilene, Texas 168 million
Directors Life

West Bend Mutual $1.06

36 Insurance Company General Insurance West Bend, Wis 1,210 billion

37 Synchrony Financial Banking/Credit Stamford, Conn. 9,260

Services $10.8
billion

38 General Insurance, White Plains, 422 -

PURE Insurance Auto Insurance, N.Y.
Home Insurance

39 National MI General Insurance Emeryville, Calif. 249 $53.6 million

40 Fact Set Research Investments Norwalk, Conn. 2,405 $1 billion

Systems

19
2.4 PRICING STRATEGIES IN THEINDUSTRY

Pricing a financial service is both an art and a science. The “art” of pricing is in
choosing a combination of fees and charges acceptable to customers, that are fair and
transparent, and in determining if the product has any unique attributes that deserve
premium pricing. The “art” of pricing is in careful and considered communication to
and feedback from customers and staff to ensure that pricing messages are
appropriately and correctly delivered. The “science” of pricing is in ensuring that the
product is profitable and is competitive in the market, that aside from very few
specific and chosen loss leaders, that each product returns a profit.

2.5 PROSPECTS AND CHALLENGES OF THEINDUSTRY

PROSPECTS

The following are the prospects of financial service industry:

 Offering of innovative products

 Door to door service approach

 Customer relationship management

 Professional approaches

 Managerial excellence

 Marketing and technological advancement

 Customized and cyber services

 Branch expansion

 Deposit Mobilization

 NPA management

 Asset reconstruction

 Motivational HRM policies

20
  Change in lending process

 Merger and acquisition

 Total quality management concept

CHALLENGES

The following are the prospects of financial service industry:

 Cyber-crime In Finance

Data breaches involving financial service firms increased by 480% from 2017
to 2018. With each attack costing financial institutions millions, innovative
solutions are needed if we are to avoid a repeat of the lawless days of the Wild
West. Whatever cybercrime solutions emerge to protect financial services,
block chain technology must be the foundation. As more and more institutions
adopt distributed ledger technology (DLT), block chain will become the de
facto solution to keeping financial data secure while at rest.

Integrating DLT with existing financial infrastructures poses some serious

obstacles that must be overcome. Even so, we are past the point of asking
whether block chain is the holy grail of financial data security.

 Regulatory Compliance In Finance

The ever-changing regulatory environment poses a constant challenge for

financial institutions of all types.

Regtech is an emerging industry that can help ease the burden of compliance.
By using the latest FinTech technologies to address regulatory compliance,
RegTech startups are bridging the gap between regulators and the financial
service industry. Automated reporting, automated audits, and process
streamlining are only a few of the benefits offered by RegTech applicant


21
 Big Data Use In Finance

Big data provides both opportunities and obstacles for financial service
providers. Tapping into social media, consumer databases, and even news
feeds can help banks better serve their customers, while better protecting their
own interests. But sorting through torrents of unstructured data for useful
information is no small undertaking. It requires powerful data analytics
technology if institutions are to reap a benefit.

Fortunately, data analytics solutions are emerging with the potential to

transform asset management, trading, risk management, and other financial
services.

 AI Use in Finance

Industry experts believe that AI will transform nearly every aspect of the
financial service industry. Automated wealth management, customer
verification, and open banking all provide opportunities for AI solution
providers. But that’s all been said before. So why should we expect AI to keep
that promise now?

Powerful advances in deep learning technology are paving the way for AI. In
fact, if you have been alerted by your bank of suspicious activity on your
account, you have likely already benefited from AI.

The challenge that financial services face is learning how to benefit from the
power of AI, without being victimized by it. In R&D labs across the world,
that question is being pondered at this very moment.

 Customer Retention in the Financial Services Industry

Competition for financial service clients has never been fiercer. While brand
loyalty may not be dead, it is definitely on life support.

22
 What matters to most customers in 2019 is greater personalization, more
automated services, and easier access to services. Institutions that can deliver
all three will capture their share of the market.

Key to not losing the battle is recognizing that customers are less concerned
with brand familiarity than getting the services they want. Providing
customers those services is key to client retention.

 Employee Retention in the Financial Service Industry

Today’s financial service companies not only find it difficult to attract

customers, but they are also finding it difficult to attract employees. A lack of
qualified talent to fill new IT roles, and a millennial workforce that shuns
long-term employment, are leading factors in finding good help.

Institutions that want to attract and retain a qualified workforce must change
their philosophy. No longer is it enough to offer good pay and benefits;
workers now expect employers to nurture a culture that is accommodating to
the values and lifestyles of the employee. Change is necessary if stable and
qualified workforces are to be achieved. But don’t expect it to come easy.

 . Block chain Integration in Finance

We talked earlier about block chain as a key component in the battle against
cybercrime. But data security is not the only application for block chains in the
financial sector. Far from it, cases across the globe are already proving the
value of block chain in a wide variety of banking and investment applications.
From solving challenges faced by investment banks to helping customers
make safer payment transactions, the list is growing daily. Having said that,
industry-wide adoption of block chain is unlikely to occur until we reach a
tipping point in the maturity of the technology. When that will happen is
anyone’s guess.

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 Customer Experience in the Financial Services Industry

Customer’s experience isn’t just a buzzword; it is one of the most important

issues facing firms in the financial services industry. Banking customers,
today, expect banking to be mobile, with a la carte services, and they don’t
care if the bank is a FinTechno one ever heard of. Changing old-age traditions
will take time and money, but mostly open-mindedness.

 Crossing The Digital Divide In Financial Services Marketing

Success in the era of digital banking means more than having a mobile app. It
means digitizing your entire brand. How do you do that? You shift your
advertising campaigns from conventional ad media to digital channels. Which
is another way of saying you reach your target audience where they are today,
rather than where they were yesterday?

Of course, social media exposure is necessary, but you need more than a
Facebook ad. You must tap big data and AI to help locate potential customers,
and to deliver customized offers in real time.

 Other challenges
a. Low Profitability and Productivity
b. Lack of Integrity
c. Increase of Administrative Expenses
d. Survival of loss making branches
e. Scandals
f. Lack of Professional Behavior
g. Lack of professional and friendly approaches with customer
h. Non-performing Assets
i. Customer oriented market
j. Problem of customer satisfaction
k. Depression period running over the country
l. Managing workforce
m. Management of technological advancement

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2.6 KEY DRIVERS OF THE FINANCIAL SERVICEINDUSTRY

The following are the key drivers of financial service industry:

Customer Behavior

The new ways consumers get information and go about their lives is profoundly
different from the customer behavior norms of yore. Increasingly, customers are
looking for digital interactions that are simple yet aesthetically appealing, highly
personalized and context aware so that the need of the moment is served quickly
without cumbersome intervention from the service provider. Customer Experience
(CX) is now the decisive competitive differentiator between banks, more so than just
the breadth and depth of their products and services portfolio.

Digital Innovation

Advances in digital technology are offering a myriad of channels for customer

interaction. Channels like online and mobile banking have already changed how
customers engage with the bank. Customer interaction through digital channels is also
generating valuable behavioral and transactional data. Analytics on this newly
available data enables even more meaningful ways to engage customers.

Ever since the transaction mix started favoring digital channels, most industry
analysts and technology service providers have been calling out the underlying
technology imperative. However, what is often overlooked is the operational
transformation and process optimization required to profitably support the morphing
operating model. Furthermore, as the operating model transitions to support this bias
towards digital interactions, back office systems such as Core Banking and CRM will
also need to be modernized to provide requisite functional capabilities.

Regulatory Compliance

Increasing regulatory pressure is one of the legacies of the recent financial crisis. The
cost of compliance as well as non-compliance continues to be on the rise. In many
scenarios, streamlined customer interaction and low-touch transaction processing
made possible by the ubiquity of digital channels will help mitigate various risks

25
associated with regulatory compliance. Moreover, a number of compliance initiatives
can generate information and context that can be channeled towards revenue creation.

Macroeconomic Environment

The interest rate trends and after-effects of the financial crisis have created a tough
operating environment for banks. At the time of this writing, the return on equity and
return on assets for banks in the US is close to the lowest it has been over the past 12
quarters. Return on equity remains below the cost of equity. Now, more than ever,
banks are looking to eke out incremental profitability from product and service
innovation deployed via digital channels. However, such profitability can only be
achieved via efficiencies derived from requisite operational changes and process
optimization.

Customer insight

It involves sentiment analysis, social media analysis, credit analysis, customer

profitability and lifetime value.

Customer Experience Management

It involves virtual agent, next best action and relationship pricing

Channel Execution

It involves factors like next best offer, profitability and sales channel performance

Business Strategy

Business strategy involves product channel strategy and risk and capital modeling

Risk Management

Risk management involves factors like risk and capital management; risk adjusted
pricing, portfolio risk management and fraud detection

26
 CHAPTER 3

REVIEW OF LITERATURE
3.1 BRIEF THEORETICAL CONSTRUCT RELATED TOTHE
PROBLEM

Stress is generally defined as “physical, mental, or emotional strain or tension” or “a

condition or feeling experienced when a person perceives that demands exceed the
personal and social resources the individual is able to mobilize.”
As per the medical explanation of the term, “stress is the body’s general response to
environmental situations.”
It can lead to:
 Physiological discomfort
 Some kind of emotional unhappiness
 Strained relationships with other people

“Stress is defined as an adaptive response to an external situation that results in

physical, psychological and behavioral deviations for organizational participants.”

.JOB/OCCUPATIONAL STRESS

The phenomenon of stress is highly individualistic in nature. Some people have high
levels of tolerance for stress and thrive well in the face of several stressors in the
environment, for e.g. working under deadlines, and time pressures, meeting high
standards of performance expectation and working with inadequate resources. In fact,
some individuals will not perform well unless they experience a level of stress which
activates and energizes them to put forth their best efforts. Yet others have very low
levels of tolerance for stress and become paralyzed when they have to interface with
ordinary everyday factors that appear noxious to them, as for e.g. having to deal with
two customers who arrived at same time needing assistance.

For every individual there is an optimum level of stress under which he or she will
perform to full capacity. If the stress experienced is below this optimum level, then
the individual gets bored, the motivational level to work reaches a low point, and
apathy sets in. If one operates in a very low stress environment and constantly
experiences boredom, the person is likely to psychologically or physica lly withdraw
from work. Psychological withdrawal will result in careless mistakes being frequently
made, forgetting to do things, and thinking of things other than work during work

27
hours. Physical withdrawal will manifest itself in increased rates of tardiness and
absenteeism which may ultimately lead to turnover.

If the stressors in individual’s environment are too many or too intense, their effects
on performance will be adverse. Errors will increase, bad decisions will be made, and
the individual may experience insomnia, stomach problems and psychosomatic
illnesses. Organizational performance and individual health are at their peak at
optimum levels of experienced stress. Though the optimum stress level is different
for different individuals, each individual can sense and determine how much stress is
functional for him or her to operate in a productive manner.

28
SOURCES OF STRESS

Intrinsic to job:

Poor physical working conditions

Work overload

Time pressure

Physical danger etc.

Role in organization:

Role ambiguity, Role conflict

Responsibility for people

Conflicts reorganizational
boundaries

Career development:

Over promotion, under promotion

Lack of job security

JOB STRESS
Thwarted ambition

Relationship at work:

Poor relations with boss,

subordinates, or colleagues

Difficulties in delegating
responsibility etc.

Organizational structure and climate:

Little or no participation in decision

making

Restrictions on behavior, office

politics Figure 1: Sources of stress

29
COMMON CAUSES OF STRESS

Stressors are environmental factors that produce stress. Stated differently are a
prerequisite to experiencing the stress response.

Stress is a reality of our everyday life. There are both eustress and distress that come
from our work and non-work lives. The stressor and the strains experienced in one
domain are carried over to other. Thus, if ne experienced much distress it may be
carried over to the home, which will heighten the sense of awareness of even small
disturbances experienced in the family sphere. Likewise, the stress experienced at
home or with friends from other non-work facets can be carried over to the workplace
which might heighten and compound the stresses experienced at work.

Organizational stressors:

Stresses experienced at the work place have several origins. They can be emanating
from;

 Role related factors which are subjectively experienced

 The nature of the job or its inherent characteristics
 Factors related to interpersonal and group dynamics
 Organizational structural factors such as reporting relationships
 Interfacing with external environment of the organization

Role related factors:

Individual can experience role related stressors as role conflict ambiguity and role
overload. Stress from role conflict is experienced when two or more significant others
in the organization expect different things to be done by the individual. Stress from
role ambiguity arises when an employee doesn’t know what is expected of him or her
or how to go about doing job role overload refers to the individual being expected to
does too many things within a limited time as part of the daily routine. In some jobs
the employees might also face ethical dilemmas, such as whether or not one should
report the observed unethical behaviors of another person can cause extreme levels of
stress in individuals. This will be especially true for those who have strong moral
values of right and wrong and a deep sense of personal and corporate social
responsibility.

30
Nature of the job itself:

The nature of the job performed by the individual often cause stress. If a job is too
routine, dull and boring, or happiness to be too demanding in terms of frequent
transfer or constant travelling which limits the time that can spend together with the
family , the individual is likely to experience stress. In addition, some duties and
responsibilities have built in stresses such as those of the fire fighter or the police
squad which defuses bombs, thus the nature of the job itself often induces stresses

Interpersonal and group factors:

Interpersonal and group related stressors include factors such as conflict, poor
communications, unpleasant relationships, and fear of being ostracized from the
group as a valued member. Working with superiors, peers, or subordinate with whom
one doesn’t get along can be a constant source of stresses. Some people can deal with
misunderstanding and conflict in an open way to resolve issues as they arise, many,
however, find it difficult to do this and build internal stresses for themselves. When
conflicts, poor communications and unpleasant interactions have to be faced at the
workplace, individuals try to avoid the stress by remaining absent as frequently as
possible and even start looking for other jobs.

Organizational structural factors:

Work environment factors such as noise, heat, poor lighting, radiation and smoke are
stress inducing agents. Insufficient resources such as time, raw materials, space, or
manpower are additional stressors in the work environment. When one has to
produce and perform with in adequate resources on a long term basis, this naturally
imposes stressors and strains the individual which are responsible for the jobs getting
done. In addition, other structural factors in the organizational setting such as staff
rules and regulations and reward systems which are not palatable to individuals may
act as stressors. The lack of career path in organization may be additional
organizational stressors. For many aspiring managers the lack of careers progress can
be a constant stressor resulting in job burnout.

31
Burnout is the condition where the employees see no relief or satisfaction in sight and
experiences, physical, emotional and mental exhaustion.

External environment of the Organization:

Certain type of interactions with significant forces in the external environment of the
organization can also be sources of stresses. Other environmental sources include
sudden and unanticipated changes in the market place, technology, the financial
market and so on, which take top managers off guard.

Individual difference and stress

Stress can affect different people in different ways. The most fully developed
individual difference relating specifically to stress is the distinction between Type A
and type b personality profile. Type A and type B personality traits are first observed
by two cardiologists, Meyer Friedman and Ray Rosen man. They concluded that their
patients were exhibiting one or two very different types of behavior patterns. Their
research also led them to conclude that the difference were personality based. They
labeled these two behavior patterns as Type A or Type B.

The Type A individual is extremely competitive, very devoted to work and has a
strong sense of time urgency. Moreover, this person is likely to be aggressive,
impatient, and highly work oriented. He or she has a lot of drive and motivation and
wants to accomplish as much as possible in short time as possible. The extreme Type
B in the contrast is less competitive, is less devoted to work and has a more balanced
relaxed approach to life. She or He is more confident and is able to work at consistent
pace.

Friedman and Rosenman pointed out that people are not purely Type A or Type B
instead people tend towards one or the other type. For e.g. an individual might exhibit
marked Type A characteristics much of the time still be able to relax once in a while
and even occasionally forget about time.

32
SYMPTOMS OF JOB STRESS:

Stress often is accompanied by an array of physical reaction. These symptoms can be

characteristic of other physical or mental disorder. Sleep disturbance, clenched jaw,
grinding teeth, digestive upsets, lump in throat, and difficulty in swallowing, agitated
behavior, like twiddling fingers, playing with hair, increased heart rate, general
restlessness, and sense of muscle tension in body, non-cardiac chest pains, and
hyperventilating, sweaty palms. Cognitive signs of stress include: mental slowness,
confusion, general negative attitudes, constant worry, difficulty in concentrating, and
difficulty in thinking in logical sequence. Emotional signs of stress include: irritation,
sense of helplessness, apathy. Behavioral signs of stress include: sense of loneliness,
poor relationships.

STRESS RESPONSE

The ground work for the modern meaning of “stress” was laid by Dr.
Walter.B.Cannon, a physiologist at Harvard almost 100 years ago. He was the first to
describe “light or flight response” as a series of involuntary physiological and
biochemical changes that prepare you to deal with threats and danger. This response
was critical to the survival of primitive humankind when requiring quick bursts of
energy to fight or flee predators such as the saber toothed tiger. Hans Selye the first
major researcher on stress was able to trace what happens in your body during the
fight or flight response. He found that any problem, real or imagined, could cause the
cerebral cortex (the thinking part of the brain) to send an alarm to the hypothalamus
(the main switch for the response, located in the midbrain).

The hypothalamus then stimulates the synergetic nervous system to make a series of
changes in your body. Your heart rate, breathing rate, muscle tension, metabolism,
and blood pressure all increase. Your hands and feet get cold as blood is directed
away from your extremities and digestive system into larger muscles that can help
you fight and run. You experience butterflies in your stomach, your diaphragm locks,
and your pupils dilate to sharpen your vision and your hearing becomes more acute.

While all of this is going on, something else happens that can leave long term
negative effects, if left unchecked. Your adrenal glands start to secrete corticoids

33
(adrenaline. Epinephrine and nor-epinephrine), which inhibit digestion, reproduction,
growth and tissue repair and the responses of your immune and inflammatory
systems. In other words, some very important functions that keep your body healthy
begin to shut down.

The stress response is useful and can be necessary in times of emergency, but the
frequent or retriggering of the stress response in our modern life without balancing
relaxation response can contribute to a number of illness ad symptoms. The same
mechanism that turned the stress response on can turn it off. This is called relaxation
response. As soon as you decide that a situation is no longer dangerous, your brain
stops sending emergency signals to your brain stem, which in turn ceases to send
panic messages to your nervous system. Minutes after the signals stop the flight or
fight response burnout. Small returns to their normal levels. Many professionals
suggest that you can use your mind to change your physiology for the better, and
improve your health by using the natural restorative process called relaxation
response.

HOW TO MANAGE STRESS

The best way to manage your stress is to somehow disengage your mind from cause
of stress by including in some physical activity such as playing games, outing,
shopping, picnics or mental activity such as solving crossword puzzles, watching TV,
solving mathematical problems, meditation and so on.

a) Think positively – Studies indicate that optimism or pessimism may affect your
quality of life. Optimism enables you to cope better with stressful situations, likely
reducing the effects of stress on your body.

b) Change your emotional response – Managing stress doesn’t mean eliminating

stress or from your life. It means developing positive strategies for dealing with stress
to avoid negative consequences. Think about stress as your reaction to an event,
rather than the event itself. This makes it easier to identify healthy ways to manage
stress. Even though you can’t control some of the stressors in your life, you can
control your response to them.

34
c) Embrace spirituality – Certain tools to reduce stress are tangible, but there is
another tool that helps many people manage stress in their lives, embracing
spirituality. Exploring your spirituality can lead to a clearer life purpose and better
stress management skills.

d) Protect your time – How does your behavior contribute to your stress? Some
people find it hard to say no to any requests made on their time. But saying yes to
everything comes at price-more stress and less peace of mind. Learn how to take time
for yourself without feeling guilty.

e) Restore work life balance – Finding work life balance in today’s frantic world is
no simple task. Spend more time at work than at home and you miss out on a
rewarding personal life. Then again if you’re facing challenges in your life such as
caring for an aging parent or coping with marital or financial problems, concentrating
on your job can be difficult. Whether the problem is too much focus on work or too
little, when your work life and personal life feel out of balance, stress plus its harmful
effects is the result.

f) Try meditation–Different types of meditation techniques can calm your mind and
reduce your stress. Concentration meditation involves focusing on your attention on
one thing, such as your breathing, an image you visualize or a real you look at – for
example a candle flame.

g) Keep you cool – Feeling stressed is normal and so are setbacks in dealing with
stress. If you lapse into your old ways, don’t give up. Focus on what you can do to
gain your control of the situation. One easy way to help yourself keep you cool and
lighten your load is to remember the four A’s of managing stress: Avoid, Alter,
Adapt and Accept

EMPLOYEE PERFORMANCE

Firms have realized that they have to develop unique dynamic characteristics that
empower their competitive advantages in order to survive in a constantly changing
market environment. Thus, they are focusing on the exploitation of their human
resources (HR), particularly on employee performance (EP), as a source of strategic

35
advantage. Narcisse and Harcourt state that employee’s “performance appraisal
encroaches upon ‘one of the most emotionally charged activities in business life’–the
assessment of a man’s contribution and ability. The implementation of a well-defined
process for evaluating EP plays a crucial role on a firm’s smooth running. The main
challenge for firms is to evaluate Epand to consider how it can become more efficient
and more “valid.” In other words, in which way firms can apply performance
evaluation practices in order to improve their ability to distinguish “good” employees
(that display desirable performance) from the bad ones. Therefore, it is essential for
firms to be aware of their employees’ capabilities in order to be able to manage them
and, in turn, to align them with the firm’s overall business strategy. Many important
factors regarding the research and development of a performance evaluation model
are still often overlooked and that this may be why there is not yet an integrated
model for evaluating EP. Additionally, it can be stated as “Though there have been
many studies examining the impacts of various factors on employee performance,
very few examined more than three factors at one time.” An organization is a
consciously coordinated system where characteristics of individuals, groups and
organization interact with each other and effective interaction among them highly
depends on organizational culture that shapes the individual performance. Also the
environmental cultural factors support and develop EP, employee-related factors
connect environmental cultural factors and EP and further research is needed for a
better understanding of these relations. The purpose of this research is thus to explore
and integrate the relations between firm/ environment-related factors, job-related
factors and employee-related factors in to an analytical EP assessment model.

36
 FACTORS CONTRIBUTING TO EMPLOYEE PERFORMANCE

Environment related factors:

Management support Training

culture Organizational climate

Environmental dynamism

Employee related factors:

Proactivity, Adaptability
EMPLOYEE PERFORMANCE
Skill flexibility

Commitment

Skill level

Job related factors:

Job environment Job

communication Job

autonomy

Figure 2: Factors contributing employee

performance

37
The firm-related factors from firm’s internal and external environment, such as
management support, training culture, organizational climate and environmental
dynamism are related to: job-related factors, such as communication, autonomy and
environment; employee-related factors, such as intrinsic motivation, proactivity,
adaptability, skill flexibility, commitment and skill level; and EP. Firm/environment-
related factors. Although there are many firm/environment-related factors that have
been examined in the literature regarding their impact on EP, such as leadership,
organizational trust, human capital investments, etc., this study turns its attention on
management support, training culture, organizational climate and environmental
dynamism. Many researchers claim that management support is an important
condition for EP improvement. When employees perceive that the management
supports their job-related efforts, then it is likely that improved job performance will
be noticed. Further, Parker found that management support is positively related to
commitment and proactivity (employee-related factors). Organizational climate
influences employees’ attitudes and behaviors and hence their performance levels,
also there is a relationship between organizational climate and adaptability and it also
affects employees’ proactivity level. Finally, Boxall point that organization’s culture
affects employee’s behavior, while it is related with the level of employees’
motivation. The acquisition of new knowledge and skills through training leads to
improved EP. Additionally, Hale and Armstrong argue that training improves
employees’ knowledge and skills, so they can successfully deal with new everyday
job-related challenges and, thus, improve their job performance. The training culture
is related to job autonomy and firms’ training policy is closely related to the
improvement of their employees’ job-related skills and flexibility (employee-related
factors). Environmental dynamism affects firm performance. Further, Motowildo and
Schmitt indicate that when firms’ external environments are dynamic, then it is
difficult for them to predetermine their employees’ efficiency levels. In other words,
in a dynamic environment, the job itself and its performance acquire unique
characteristics. Finally, employees working in a dynamic job environment with
increasing job-related demands are likely to develop behaviors that lead to increased
performance. The environmental dynamism is a factor that affects employees’
capability to adapt, while “the instability of the general economic environment in
which European companies operate create difficulty in defining the necessary skills
that the workforce.
38
Job-related factors: Although there are many job-related factors that have been
examined in the literature regarding their impact on EP such as organizational
fairness, job control. This study focuses on job communication, job autonomy and
job environment. To that end, we have adopted these factors because there are strong
evidences in the literature supporting that these factors are related with the other
factors incorporated in the proposed model. Job autonomy is defined as the extent to
which “the job allows the employee to make decisions about how to perform his
work.” They also state that job autonomy is positively associated with EP.
Specifically, job autonomy reflects the degree of freedom and independence that
employees have in decision making regarding the way they perform their jobs. Thus,
employees with increased job autonomy have more flexibility in their work because
they choose how to execute their jobs more efficiently and thus their performance is
increased. Job autonomy is also positively related to commitment and proactivity.
Moreover it is found that there is a relationship between job autonomy and EP, which
is moderated by intrinsic motivation (employee-related factors). Concerning job
environment it affects employee productivity and performance. Further, Fawcett state
that job environment affects employees’ ability to be proactive and productive.
Similarly, job environment is related to EP. As regards to job communication, The
job communication is related with commitment and motivation and also job
communication is related to commitment (employee-related factor) and EP. Job
communication is an important factor that can lead to higher firm performance levels.
In the same line, job communication is a crucial factor, which is related to employees
overall performance.

Employee-related factors and employee performance : Even though there are many
employee-related factors that have been examined in the literature regarding their
impact on EP such as turnover, absenteeism, this study focuses on proactivity,
adaptability, intrinsic motivation, skill flexibility, commitment and skill level.
Employing people who have a variety of skills is a valuable asset for a firm, because
it forms the basis for creating multiple alternatives to current or future job
requirements. Wright and Snell define employees’ skill flexibility as “the number of
possible alternative ways, through which employees can apply their skills in their
job” and “how employees with different skills can be repositioned to the proper
places in a fast way.” A firm can improve employees’ skill flexibility through various
processes,
39
Such as job rotation and cross-functional teams. These processes create unique skill
combinations, exploitable by the firm and difficult to copy by competitors. Thus,
claim that skill flexibility has the strongest direct and most visible impact on EP
meaning that the higher the level of HR skill flexibility, the more likely it is that
employees will demonstrate higher performance. Besides skill flexibility the skill
level is directly related to EP. Examining employees ’intrinsic motivation, it is
related (and determine) EP. In order for firm performance to be improved through
increased EP, firms should strengthen employee motivation.

Proactivity is defined as “controlling a situation by causing something to happen

rather than waiting to respond to it after it happens.” Many researchers argue that the
level of employees’ proactivity is linked to their performance. Thompson states that
proactive employees perform more efficiently than those who have low proactivity.
Overall, it has been observed that employees with high proactivity take the initiative,
express their views, prevent future problems in their job environments, improve their
ways of performing work and positively influence their peers. Moreover, another
important factor affecting EP is adaptability. If employees adapt easily to a new
workplace (and/or new job requirements and needs), as well as to irregular situations,
there may be a positive effect on their performances. In other words, employees with
no particular difficulty to deal with different job requirements and environments may
be more efficient than other employees (who find it difficult to apply new knowledge,
skills and techniques to their jobs and, generally, do not effectively manage any
changes in their jobs). Finally, it is argued that employee commitment, which consists
of the three components (affective commitment, continuance commitment and
normative commitment), is also related to EP. The nature of the psychological status
of each commitment factor varies from employee to employee. There is a positive
relationship between affective commitment and EP, suggesting that, employees who
feel that a firm’s behavior towards them is good (e.g. fair treatment, participation in
decision making) may increase their levels of emotional commitment to the firm and,
in turn, their performances may also improve. Further, employees with high
continuance commitment feel a strong obligation to perform their jobs in such a way
that is identified with the firm’s goals, while employees with low continuance
commitment feel no such obligation to support the firm’s goals. It is found that there
is a negative relationship between normative commitment and EP. They argue that

40
this occurs because employees with a high degree of normative commitment are
“trapped” in no-choice situations, such as remaining in the firm even if they do not
want to. Thus, they perform their jobs passively and gradually their performance
decreases

3.2 AN OVERVIEW OF EARLIER STUDIES

Stress at workplace is often referred to as ‘occupational stress’. The basic rationale

underpinning the concept is that the work situation has certain demands, and that
problems in meeting these can lead to illness or psychological distress. Occupational
stress is a major health problem for both individual employees and organizations, and
can lead to burnout, illness, labor turnover, absenteeism, poor morale and reduced
efficiency and performance. Hence, stress is considered as one of the contributing
factors that influenced the efficiency, absenteeism, increase in health care costs and
other unfavorable results that associated with specific situations, characteristics of the
work environment, and individual perceptions and reactions in the context of the
workplace.

Yan, H., & Xie, S. (2016) Work stress define as a series of physiological,
psychological and behavioral responses due to the continuing effects of one or more
stressors on individuals in an organization.

Salami O. S. (2010) Occupational stress can be defined as the experience of

unpleasant negative emotions such as tension, anxiety, frustration, anger and
depression resulting from aspects of work.

Balakrishnamurthy and Swetha Shankar (2009) stated in his study that experience
group, viz., with experience between 11 and 20 years, had markedly higher amount
of stress than their counterparts, including the entire group taken together.
Interestingly, the mean stress score of the group with experience of 21 to 30 years
revealed low levels of stress when compared with all the other experience groups.
This means more experienced people learnt certain stress-coping tactics in the course
of their experience, thereby enabling them to effectively deal with the stress triggered
due to their personal and professional commitments. This trend was inverted in the
less experienced groups. The study also strongly indicates the relationship between
stress and demographic variables such as age and level of experience.

41
Chen, J. C., & Silverthorne, C. (2008) labeled job stress as a work related
psychological pressure and a worker‘s ability to respond and grip the specific
situation at work place skillfully.

P. Anna Raja and Nima M Joseph., (2007) Work stress means "the harmful physical
and emotional responses that occur when the requirements of a job do not match the
capabilities, resources or needs of the worker".

The workplace stands out as a potentially important source of stress purely because of
the amount of time that is spent in this setting. However, the stress inducing features
of the workplace go beyond simply the time involved. With the financial security and
opportunities for advancement of individuals being dependent upon their
performance, the pressure to perform often makes the work situation potentially very
stressful (Faulkner and Patiar, 2006). Stress in the workplace has become of universal
concern to all managers and administrators where in some work groups, stress has
become epidemic. In the United States, health care professionals, technicians,
managers of all sorts, military officers, corporate executives, sports coaches,
entertainers, farmers, recreational directors and members of the clergy have been
identified as being most prone to workplace stress.

By comparison, in Japan, health care providers, production factory workers, VCT

workers, salesmen, middle managers of enterprises, and educators at all levels have
been identified as being most likely to encounter workplace stress. However there are
differences between Japan and the United States, in regards to work related stress,
likely is due to the cultural differences that exist within the work environments. What
workers in one country perceive as stressful, workers in the other country may not
perceive as stressful. In addition, the role expectations in the respective work settings
are likely to differ between the two countries. Unfortunately, limited research and
publications existence that compare work stress across cultures within the work
environment (Lambert and Lambert, 2006).

The degree of stress experienced according to Michie (2005) depends on the

functioning of two protective physiological mechanisms:

42
 “Alarm reaction”: When confronted with a threat to our safety, our first response is
physiological arousal: our muscles tense and breathing and heart rate become more
rapid.

This serves us well when the threat is the proverbial bull in the field rushing towards
us. We either fight or flee. Present day threats tend to be more psychological—for
example, unjustified verbal attack by a superior at work. It is usually not socially
acceptable to act by “fight or flight”, and an alternative means of expressing the
result ant emotional and physical energy is required. This falls in the arena of
assertive communication.

“Adaptation”: The second adaptive mechanism allows us to cease responding

when we learn that stimuli in the environment are no longer a threat to our safety.
For example, when we first spend time in a house near a railway line, our response to
trains hurtling past is to be startled, as described above. Over time, our response
dwindles. If this process did not function, we would eventually collapse from
physical wear and tear, and mental exhaustion.

Stress is experienced when either of the mechanisms are not functioning properly or
when we find it difficult to switch appropriately from one to another. This forms the
basis of individual approaches to stress management. The ability of a person to
prevent or reduce stress is determined by that person’s appraisal of:-

i. the threat within a situation (primary appraisal),and

ii. The appraisal of his/her coping skills to deal with that threat (secondary appraisal).

These appraisals have been shaped by past experiences of confronting stress and, in
turn, influence future behavior and appraisals. Thus, the process of appraisal,
behavior, and stress is continuous, and managing stress can result from changing the
way the situation is appraised (cognitive techniques) or responded to (behavioral or
cognitive techniques).

Armstrong and Griffin, (2006) conducted a research that indicates that most stress for
correctional staff comes from role stress, particularly in terms of role conflict, role
ambiguity, role overload, perceived dangerousness of the job, and work-family
conflict.

43
Fotinatos-Ventouratos and Cooper (2005) revealed significant differences in terms of
physical and psychological wellbeing amongst the male and female sample. Mohsin
Aziz (2004) found that there was a difference in the level of stress between married
and unmarried employees on several role stressors. However, level of education does
not emerge as a significant differentiator of stressors. Sethi, King and Quick (2004)
proposed that inadequate training, poor performance evaluations, lack of job security,
working conditions, poor communication with other co-workers, fuzzy requirements
and specifications, and lack of career development were the factors that make
employees stressful.

AmatTaapManshor, Rodrigue Fontaine and Chong Siong Choy (2003) in their study
examinedthesourcesofoccupationalstressanditwasfoundthatworkloads,working
conditions, and relationship at work were the main concern that leads to stress at the
work place. The results also indicate that certain demographic variables (age, income,
and years of experience) do influence the level of stress.

The term “job performance” may need to redefine to essentially broaden this
construct to include non-productivity or extra-role dimensions such as cooperation,
helping co- workers and superiors and generalized tendencies toward compliance.
Organ further proposed that job performance should be measured to the extent to
which employee engage in organizational citizenship behaviors. Job performance is
related to the extent to which an employee is able to accomplish the task assigned to
him or her and how the accomplished task contributes to the realization of the
organizational goal. (Mawoli and Babandako,2011)

According to Jex and Britt (2008), performance is often times assessed in term of
financial figures as well as through the combination of expected behavior and task
related aspects

Sarmiento and Beale (2007) refer job performance as the result of two elements,
which consist of the abilities and skills (natural or acquired) that an employee
possesses, and his/her motivation to use them in order to perform a better job.

In this study, the meaning of job performance refers to task performance or in-role
job performance as defined as the organization’s total expected value on task related
proficiency of an employee, or fulfillment of tasks that are required by the formal job

44
description. In other words, task performance is the behaviors related specifically to
performing job-related matters.

In human resource management studies, task performance has been measured using a
range of criterion measures, including supervisory ratings, productivity indexes,
promo ability ratings, sales total, and turnover rate.

Although these indicators might be presumed to reflect performance at various

degrees stated that task performance should be distinguished into quality of work
done, quantity of work performed, and interpersonal effectiveness. Therefore, from
the above definitions it is clear that job performance is related to the extent to which
an employee is able to accomplish the task assigned to him or her and how the
accomplished task contributes to the realization of the organizational goal.

Performance is about behaviour or what employees do, and not what employees
produce or the outcomes of their work. Performance is an effort along with the ability
to put efforts supported with the organizational policies in order to achieve certain
objectives. Campbell also defines performance as behaviour. It is something done by
the employee. This concept differentiates performance from outcomes. Outcomes are
the result of an individual's performance, but they are also the result of other
influences. There are several variables that determine performance. These variables
could be classified as general determinants of performance. For instance, one’s
qualification can go a long way to enhance his performance. When one goes through
education, development and training to acquire a certain level of qualification, it will
enhance his working ability all other things being equal. Also, experience is a great
asset that can improve an employee’s performance.

The longer the number of years‟ experience, the higher the level of performance all
other things being equal. Again, quality and style of supervision is a key factor. The
use of democratic and autocratic styles of supervision will have varying degree of
results given different behaviours of employees; the working environment is another
determinant that could pose serious threat to performance. For example, if the
working environment is hazardous, it could endanger the lives of employees. The use
of protective gadgets and clean working environment could reduce the hazards
employees are exposed to at the workplace; the single most important determinant of
performance is compensation package. In the absence of compensation, performance

45
levels would be very low compensation could be financial or non-financial may have
different levels of motivation and consequently its influence on performance; factors
such as tools and equipment can enhance one’s performance. Imagine the use of
computers, combine harvesters, irrigation system and teaching aids in the production
system. Technology has made it possible to have certain tools and equipment that
enhance productive activities; and other determinants of performance include support
from other colleagues, production materials, health condition of employees, job
security, and retirement and other benefits, age, loyalty or commitment.

The individual differences on performance are a function of three main determinants:

declarative knowledge, procedural knowledge, and motivation. Declarative
knowledge refers to knowledge about facts, principles, and objects among others. It
represents the knowledge of a given task's requirements. Procedural Knowledge is
having certain skills in knowing what to do and how to do it. That is, the employee
requires certain technical skills to be able to accomplish a task. Procedural knowledge
also relates to one’s intelligence level and physical ability. The third predictor of
performance is motivation, the driving force behind every human activity.

A study directed by Abu Al-Rub indicated a curvilinear (U-shaped) relationship

between job stress and job performance; nurses who stated moderate levels of job
stress and believed that they performed their jobs less well than did those who
reported low or high levels of job stress.

Jamal studied a relationship between job stress and job performance between
managers and blue-collar workers. Job stress is defined as individuals’ reactions to
the characteristics of the work environment that appear threatening to them. Forty
peses of relationships are proposed between job stress and performance:

 Curvilinear/U-shaped,
 Negative linear,
 Positive linear, and
 No relationship between the stress and performance.

Stress has significant impact on company and people performance and it terribly
affects health of employees (Mimura and Griffiths, 2003 in Shah et al, 2012). The
studies conducted in western countries have shown that the sources of stress that we

46
name as Occupational Stress Inducers (OSI) in this study are negatively related to
well-beingandjobsatisfactionofemployees.(Robertson,Cooper,&Williams,1990). Shah
et al.(2012) in their study on impact of stress on employee performance among
teaching faculty, found a negative relationship between organizational structure and
employee efficiency while rewards were found to be positively correlated to
employee efficiency as expected. Rubina et al. (2008) too found a negative
relationship between job stress and job performance. However the male employees
were found to be affected more than their female counterparts.

Munir and Islam (2011) tested relationship between work stressors like role
ambiguity, workload pressure, home-work interface, performance pressure,
relationship with others and role conflicts on one side and job performance on the
other with motivation as mediator and found that “role conflict” and “role ambiguity”
have a positive relation with stressors against the common notion while the
relationship is found to be negative between other stressors and job performance.

Imrab et al. (2013) found that stress is responsible for decreasing the performance of
bank employees. Ahmed &Ramzan (2013) too found a negative correlation between
stress and job performance i.e. as the stress increases the job performance goes down
and vice-a-versa.

Usman Ali et al. (2014) found that workload, role conflict, and inadequate monitory
reward are the prime reasons of causing stress in employees that leads to reduced
employee efficiency. Deshinger (2003) suggested that different aspects of employee
job performance that are likely to be affected by stress include Productivity, Job
Satisfaction / Morale, Absenteeism, Decision Making Abilities, Accuracy, Creativity,
Attention to Personal Appearance, Organizational Skills, Courtesy Cooperation ,
Initiative , Reliability, Alertness ,Perseverance and Tardiness.

Occupational stress has been found to be related to job performance (Motowidlo,

Packard, Manning, 1986; Donaldson-Feilder2011). Yozgat, Yurtkora, Bilginoglu
(2013), in a research of job stress and job performance among employees in public
sector found a negative relationship between job stress and job performance. In a
similar research in China, Siu (2003) revealed that there is a negative relationship
between sources of stress and self-related job performance.

47
Motowidlo, Packard, Manning, (1986), in a study found that, events identified as a
cause of stress lead to depression, which in turn, cause decrements in interpersonal
and cognitive/motivation aspect of job performance. Mahan et al (2010) found that
ongoing and episodic stressors were significantly and positively associated with
anxiety and depression. They also argued that, as ongoing stressors increases in
teachers working environment so as anxiety which affect their performance. Job
stressors affect the general physical health of employees, their job satisfaction and
performance as well as their commitment negatively (Shikieri& Musa 2011). Wu
(2011), in a similar study, found that job stress and job performance were negatively
correlated. Naqvi et al (2013), found lack of financial rewards, inflexibility in work
hours, personal issues, low control over the work environment and bureaucratic
management system to be negatively correlated with employees “productivity.

In a similar study, Dhamodharan & Arumugasamy (2011) found that, occupational

stressors influence positively the coercive and authoritative leadership and influence
negatively the affiliate, democratic, pace-setting and coaching. A research work by
Jeyaraj (2013) on occupational stress among teachers, found that teac hers who
reported greater stress were less satisfied with teaching, report greater frequency of
absence and a greater number of total days absent, were more likely to leave teaching
(career intensions) and less likely to take up a teaching career again (career
commitment).

Dunmade, Adegoke & Agboola (2014), in a study of techno-stress among university

workers, found that, techno-stress has negative consequences on the individual
worker’s performance. In a similar research among state university department
Suandi, Ismail, & Othman (2014), found that, the relationship between job stress and
job performance is at a quite negative but moderate level. According Forkuoh et al
(2014), employees‟ commitment positively impact on the growth and succession of
small and medium scale enterprises but high level of stress significantly impact on
commitment and affect productivity (Jamal 2011; Siu 2003).

Coetzer and Rothmann (2006) analyzed occupational stressors for employees in

insurance company. The results proved that job insecurity as well as pay and benefits
were the huge stressors in the insurance industry. They also estimate the relationships
between occupational stress, ill health and organisational commitment.

48
Anurag Pahuja and AnuSahi(2012) made an attempt to unveil the perception of bank
employees towards emotional quotient, factors affecting their emotional intelligence
and its effect on their performance. The results shows majority of the respondents
instead of reacting in any manner ask for the grace time so that they can solve the
crisis situation while other major chunk reacts aggressively to the situation. This
clearly depicts that the bank employees need to be give certain emotional control
trainingprogramsinordertoachievebetterresultsandgoodcustomerrapport.

BusharaBano and Rajiv Kumar Jha (2012) in their study they attempt to explore the
differences in job related stress between public and private sector employees, based
on ten role stressors. It also examines the role of demographic variables on the stress
levels of both public and private sector groups. Their methodology entails a survey of
182 public and 120 private sector employees in Uttar Pradesh, India, whose responses
are measured according to an occupational role stress scale. The sample was collected
through convenience sampling. On applying the t-test and analysis of variance test to
the data, they find that both public and private sector employees face moderate levels
of stress. While there is no significant difference overall between public and private
sector employees in terms of total stress levels, certain individual stressors such as
work experience and educational qualifications do yield differences.

Prabhu (2014) in his study entitled, “Occupational Stress - A Study with reference to
select Bank Employees in Chennai Region” is a comparative study with reference to
the employees of Nationalized Banks, SBI, Private sector Banks and the Cooperative
sector Banks in Chennai. Based on the total number of banks situated in Chennai
under each category, the total sample size of two hundred and sixteen respondents
were taken for the study. The collected data have been analyzed and interpreted using
statistical tools such as weighted average mean, correlation analysis, regression
analysis, analysis of variance, critical ratio analysis and percentages. The study is a
modest attempt to identify the stressors and to examine the coping strategies among
bank employees of different sectors. A significant but negative relationship is
observed between stress and job satisfaction which indicates that satisfied employees
expressed low stress compared to the dissatisfied employees. Also except the factor
recognition all other factors of job satisfaction are influenced by stressors.

49
3.3 UNIQUENESS OF RESEARCHSTUDY

For any organization to survive, human resources are the important one. The success
of any organization to a great extend depends upon the quality of work efforts of the
personnel. Organizational behavior as a separate field of study and has received more
prominence than even before. An understanding of various types of stress on
employees and evolving strategies and appropriate measure to enable them to cope
with the situation is more significant in order to ensure better and efficient
performance of the institution. Satisfied employees are the real worth of the
organization. Through this study there is possibility for improving the performance of
the organization.

50
 CHAPTER 4

METHODOLOGY OF THE STUDY

4.1 RESEARCH APPROACH ANDDESIGN

Approach

There are two basic approaches to research namely quantitative approach and
qualitative approach. In the quantitative approach, the research is based on
measurable quantities. Therefore data in this approach are available in quantitative
form. This approach can further be classified into inferential, experimental and
simulation approaches. In inferential approach a sample is selected from the
population and it is studied to determine the characteristics of the sample. On the basis
of sample characteristics, characteristics of the population are inferred. In
experimental approach, some variables are manipulated to observer their effect on
other variables. Simulation approach involves construction of an artificial
environment within which relevant information and data can be generated.

Qualitative approach to research is concerned with subjective assessment of attitudes,

opinions and behaviors. The research approach adopted here is a qualitative one.
Research in such situation is a function of researcher’s insight and impressions. Such
an approach to research generates results either in non-quantitative form or in the
form which are not subjected to rigorous quantitative analysis.

The study has a descriptive approach too. Descriptive research is a fact finding
investigation with adequate interpretation. It enumerates data about the population
being studied. It is used to describe an event or to provide a factual and accurate
description of the population. It is the simplest type of research approach. Here the
data are collected by one or more appropriate methods. The major purpose of
descriptive research is the description of the state of affairs as it exists at present .The
main characteristic of this type of approach is that the researcher has no control over
the variables. He can only report what has happened or what is happening.

Design

Research design is a plan of the proposed research work. The research design is
simply a specific presentation of the various steps in the process of research. Design

51
 means adopting that type of technique of research which is most suited for the
research and study of the problem.

The best definition of research design has been given by F.N.Kerlinger which
specifies the process and structure of research. According to him “research design is
plan, structure and strategy of investigation conceived so as to obtain answers to
research questions and to control variance” In fact research design is the conceptual
structure within which research is conducted.

Guide lines for a Research Design (Steps)

A proper research design should be framed on the basis of the following guide lines.
1. Title of the problem: A researcher should be very careful in selecting the best
caption for his research. The title selected should be as brief and precise as possible.
2. Statement of the problem: In the opening paragraphs of the research proposal, the
problem to be investigated should be stated clearly and briefly. The key questions
should be specified. The selection of the problem depends on the inclination, training
and experience of the research scholar

3. “Purpose and objectives of the research: The objectives may be stated in the form
of statements or question. Objectives help research studies. The objectives of the
research studies may be for drawing certain conclusions, or it may be for testing
certain relationships or “may be for testing certain hypothesis framed for study

4. Scope of the Study: The scope of any investigation depends on several factors like
the time and money available to the investigator, nature and accessibility of the data.
Research design should indicate the scope of study.

5. Survey of Literature (critical appraisal of previous studies): Surveying the existing

literature in the field of study is an important step in the formulation of research
design. Any research study should invariably be preceded by survey of literature for
the purpose of getting an insight into the works already conducted.

6. Conceptualization of Terms Used: Every researcher has to state the meaning

attached to the different terms used in the study. This is essential because certain terms
and concepts carry with them different meanings. The scope of interpretation of

52
the meaning of a term may vary depending on the situation in which it is used or
quoted.

7. Formulation of Hypothesis: Formulation of hypothesis is considered to be a

principal instrument in research. It can be said as a starting point for research.
Hypothesis is defined as a tentative generalization, the validity of which remains to be
tested. Whatever be the type of hypothesis formulated, it is necessary for any study to
be conducted on scientific lines. The research plan must furnish an explanatory note
on the hypothesis laid down in the proposed research.

8. Selection of Sample: In a research study, a researcher has to make the studies about
the entire situations to draw conclusions. But in social science research, it may not be
possible for a researcher to study the entire situation for several reasons. As such, the
researcher may be forced to select a sample from the universe. Researcher has to state
the following in the research plan (1) universe of study (2) sampling frame (3)
sampling procedure (4) sampling size.

9. Data Collection: This is the important step in the whole research design. The
research scholar has to indicate in the research design about the nature of the data and
the sources from which he has to collect the same. There are basically two sources of
data, namely, primary and secondary. Depending upon the nature of the study, the
investigator would be required to use the primary or secondary sources. Primary data
are those collected specifically for the purpose of a study under consideration. It is a
direct source of information. Secondary data are those that have been collected by
other organizations for their purpose. When a researcher is using such data for his
purpose, we can say he is using secondary data

The researcher has also to use relevant techniques of data collection, namely,
observation, questionnaire and interview to make the study meaningful.

10. Processing and Analysis of Data: The data collected from various sources must be
properly processed and analyzed. It has to be decided in the beginning and stated in
the design whether the process of data collection would be a manual process or
mechanical process, and what types of tables are to be prepared. Different techniques
may have to be adopted to process the data. For instance, if data is collected through
observationorinterview,quantificationisnotmuchpossible.Onthecontrary,ifdata

53
are collected through the questionnaires, the response from each question needs to be
tabulated. All these should be indicated in the plan. After processing the data, its
analysis is performed. This is an important aspect in the research design. The quality
of the study and its utility are decided on how meaningful the conclusions are, but not
how much data are collected. Therefore a researcher has to be more cautious and
vigilant in analyzing the data. For enhancing the utility of the analysis, he may depend
on several mathematical and statistical techniques like linear programming,
correlation, regression etc. A clear indication of these analysis plans should find its
place in the design.

TYPES OF RESEARCH DESIGNS

Research designs can be classified into:

a) Exploratory or formulative research design: Exploratory research design is

applied when the researcher is not acquainted with the problem. It aims at
gaining familiarity with a new phenomenon. In fact, much of social researches
are of exploratory nature. This type of research designs are applied there.
In this type of research design, a specific problem is formulated for precise
investigation or a specific hypothesis is formulated from an operational
observation. These types of studies are, therefore, known as formulative
studies.

b) Research Design for Descriptive and Diagnostic Studies

A study which wants to portray the characteristics of a group or individual or
situation is known as descriptive study. A study which wants to determine the
frequency of occurrence of an event of its association with something else, is
known as diagnostic study.
c) Experimental Research Design
Experimental design refers to the framework or structure of an experiment.
Though experimental designs originated in the context of agricultural
operations, today they are being used in almost all the areas of scientific
studies. Experimental research design is concerned with making experiments
to find out the cause and effect relationship of the phenomenon understudy.

54
4.2 Sources of Online Data.
The sufficient data for this project was collected from various websites, online
text books, reports of earlier studies conducted and journals etc.

55
4.3 Report Structure

01 Introduction – Statement of the Problem

1.1 Background of the Study

1.2 Statement of the Problem
1.3 Relevance & Scope of the Study
1.4 Objectives of the Study
02 Industry Profile

2.1 Business Process of the Industry

2.2 Market Demand & Supply – Contribution to GDP – Revenue
Generation
2.3 Level and Type of Competition – Firms Operating in the Industry
2.4 Pricing Strategies in the Industry
2.5 Prospects and Challenges of the Industry
2.6 Key Drivers of the Industry
03 Review of Literature

3.1 Brief Theoretical Construct related to the Problem

3.2 An Overview of Earlier Studies
3.3 Uniqueness of Research Study
04 Methodology of the Study

4.1 Research Approach and design

4.2 Sources of Online Data
4.3 Report Structure
4.4 Limitations of the Study
05 Discussion

5.1 Observations by the Candidate from Literature Review -

Comparisons
5.2 Logical Conclusions related to the Business Problem
06 Findings of the Study
07 Conclusions
Bibliography

56
4.4 Limitations of the study
Even though every effort has been made to achieve perfection, there are still
certain limitations. They are as follows:

 Due to time constraint the researcher was not able to complete the
project
 Stress is a psychological phenomenon so that more detailed study in
this field is needed
 Like intelligence measuring of job stress is difficult
 There is a lack of availability of primary data.
 There was no opportunity to interact with the employees and record
data directly from them.

57
CHAPTER 5

DISCUSSION
5.1 Observations by the Candidate from Literature Review-
Comparison
Stress has physical mental and emotional effect on people. Stress is individualistic in
nature. Different people have different levels of tolerance for stress. Sources of stress
include Poor physical working conditions, Work overload, Role ambiguity, Role
conflict, Lack of job security, and lack of participation in decision making.

Body reacts to cope with the stress. Any problem, real or imagined, could cause the
cerebral cortex (the thinking part of the brain) to send an alarm to the hypothalamus
(the main switch for the response, located in the midbrain). any problem, real or
imagined, could cause the cerebral cortex (the thinking part of the brain) to send an
alarm to the hypothalamus (the main switch for the response, located in the midbrain).

The best way to manage your stress is to somehow disengage your mind from cause
of stress by including in some physical activity such as playing games, outing etc.
Think positively, Change your emotional response, Embrace spirituality, Protect your
time, Restore work life balance and trying meditation are some tips to manage stress.

EP plays a crucial role on a firm’s smooth running of an organization. Management

support, Organizational climate, Commitment and Job environment are some of the
factors that influence job performance of employees

In was found in a study that people who as long years of work experience say 21 to 30
years has low levels of stress when compared to other experience group. This means
that experienced people learnt tactics to cope with the stress.

The workplace is an important source of stress because of the amount of time that is
spent in this setting. Since the financial security and opportunities for advancement of
individuals being dependent upon their performance, the pressure to perform often
makes the work situation very stressful.

A study revealed significant differences in terms of physical and psychological

wellbeing amongst the male and female sample. In another study it was found that
there was a difference in the level of stress between married and unmarried
employees. However, level of education does not emerge as a significant factor of

58
 stress. Relationship at work is also a main concern that leads to stress at the work
place.

Occupational stress has been found to be related to job performance. In a research of

job stress and job performance among employees in public sector, it was found that
there is a negative relationship between job stress and job performance.

Different aspects of employee job performance that are likely to be affected by stress
include productivity, job satisfaction / morale, absenteeism, decision making abilities,
accuracy, creativity, attention to personal appearance, organizational skills, courtesy
cooperation , initiative , reliability, alertness ,perseverance and tardiness

5.2 Logical Conclusions to Business Problem

Stress is a reality of our everyday life .Every individual has an optimum level of stress
under which he or she will perform to full capacity. If the stress experienced is below
this optimum level, then the individual gets bored, the motivational level to work
reaches a low point.

If the stressors in individual’s environment are too many, their effects on performance
will be adverse. Errors will increase, bad decisions will be made, and the individual
may experience insomnia, stomach problems and psychosomatic illnesses.
Organizational performance and individual health are high at optimum levels of
experienced stress.

EP plays a crucial role on a firm’s smooth running. The main challenge for firms is to
evaluate EP and to consider how it can become more efficient

Stress in the workplace has become of universal concern. It is found in every

organization. So what is possible is to acquire tactics to manage and cope with the
stress effectively

59
 CHAPTER 6

FINDINGS OF THE STUDY

6. Findings of the study

 Stress has physiological effects on our body and psychologically

influences our actions and performance.
 Stress is experienced when there occurs a mismatch between requirements
and capabilities.
 Workplace has a great influence over employees stress and performance.
 Stress on the job can be a challenge. Stress can be sometimes positive and
sometimes negative. Positive stress leads to productivity and negative
stress leads to loss for the organization.

 Long working hours, role conflict and political pressure there is high
degree of occupational stress amongst the private and public sector bank
employees.

 Stress is unavoidable on the part of the employees as the systems,

procedures; techniques are getting complicated with the use of advance
technology.

 Getting assistance from colleagues as well as annual leave and job rotation
significantly reduced occupational stress while lunch breaks and listening
to music while on duty were insignificant.

 performance is often times assessed in term of financial figures as well as

through the combination of expected behavior and task related aspects
 stressors like role ambiguity, workload pressure, home-work interface,
performance pressure, relationship with others and role conflicts on one
side and job performance on the other with motivation as mediator and
found that “role conflict” and “role ambiguity” have a positive relation
with stressors against the common notion while the relationship is found to
be negative between other stressors and job performance.

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CHAPTER 7

CONCLUSIONS
7. Conclusion

Stress is one of the factors which often prove detrimental to the quality of
work and workers in the organizations. The technological growth has
revolutionized the way financial service sector works and the competition is
globalized now days because of the economy conditions. The level of stress
faced by the employees in financial sector is also growing rapidly. The present
study clearly found that there is a significant relationship between type of the
institutions, gender, age, education, job role, interpersonal relationships and
impact of occupational stress. So the financial sector employees should adopt
new coping strategies for maintaining good physical and mental condition
which will improve productivity.

Almost all the organizations have now started realizing the importance of
stress and its effects. In this scenario such studies may enhance the
accomplishments of the organizations to keep the stress level at minimum.

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