Research article University of Swabi Journal (USJ); Open access

Job Stress Effects Organizational Commitment and Employees Performance:

A case of Banking Sector of district Swat
Amjad Ali1, Faisal Khan2, Abdul Mateen1, Nasir Shaheen1, Muhammad Ali1,

1
Centre for Management and Commerce, University of Swat, KP Pakistan,
2
Department of Management Sciences, University of Swabi, KP Pakistan,
Abstract
This study examined the relationship among job stress, organizational commitment and
employees’ performance in banking sector of District swat. Sample for this research study is composed of
two hundred and fifty employees. The results of the study indicate that factors like heavy workload, long
hour working and new technology causes stress. Furthermore, it has found that stress is negatively
correlated with organizational commitment and employee’s performance and organizational commitment
is positively correlated to employee productivity. For increasing both employee’s and organizational
productivity the policy makers and administration needs to increase in rewards, organizational
commitment and compensations.

Keywords: Stress; Organizational Commitment; Employee Performance; Banking Sector.

*Corresponding author address: Dr. Faisal Khan,

Department of Management Sciences, University of Swabi, KP Pakistan
Email: faisalkhanutm@[Link]

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

1. Introduction
Advancement in technology groomed the organizations to the current modernization and
globalization, which lead the organization to a great comfort in doing more diverse things with little
efforts and short time [1]. But still it is unable to ignore the advancement which pushed the society
towards competition [2]. Continual rapid changes, economic growth and technological development in the
world have opened new areas [3, 4].
As of human inherent nature, new blooming trends also accompanied competition. Economic
development has forced the organizations to minimize the cost, get more profitability and to step-up the
operations in order to get and sustain their competitive advantage [5]. All over the world every
organization tends to adopt latest technology in ordered to keep competitive advantage over others [1, 6].
Due to competition and work specialization, every employee wants to upgrade skills continually for
carrier growth. Organizational modifications such as downsizing, mergers & acquisitions and some
radical technological changes have reformed the work setups. All of these changes have created problems
like competition and work life imbalance that lead to work stress/strain/burnout incidence of mental
illness [7-9].
The advance technological changes, work burden, highly challenging job demands and long
working hours have made it difficult for employees to balance their jobs and organizational commitment
[10, 3]. The organization's success and development depends on employees' performance and their
commitment with the organization and its goals. When employees continually feel stress for long period
of time the employees then become emotionally exhausted which further contributes to the severe stage of
stress like burnout [11, 12]. Therefore, this study tries to find the effects of job stress on employee’s
motivation, organizational commitment and employees’ performance. In addition, to know that how these
variables affect employees’ performances in the banking sector of district swat.
1.1 Research Objectives
The organization's success depends on employees' performance. Committed employees always
perform rationally to achieve the better outcomes. The focal objectives of this study are given below.
1) To find out the relationship between job stress and organizational commitment.
2) To examine the relationship between job stress and employees Performance.
1.2 Hypotheses
H1: There is a negative relationship between job stress and organizational commitment.
H2: There is a negative relationship between job stress and employees’ Performance.
2. Literature Review

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

From past decades, job stress is evolving as growing problem. the phenomena of stress have been
focused by many researchers and organizations [11, 13]. Job stress not only effects individual but it also
affects organizations as well[14]. With the increase of severe occupational stress, and the impact of work
force exhaustion on employees performance, talent and their retention, has becoming an increasing
problem [15]. Job Stress is mostly common in those jobs in which employees directly spend considerably
more time with their customers [16].
Rapidly changing global environment increasing the burden on employees to execute maximum
output and improve effectiveness in performing their jobs[9]. Most of the job demands factors predict job
stress such as workload [17], Physical and emotional demands [18], harassment and performance [19]. On
the other hand job resources factors help in overcoming job stress such as autonomy [20], social support
and feedback [21].
The concept of stress first time has given by [22]. According to Selye, stress is a type of mental
pressure. Stress is derived from Latin word means tension exerted upon an individual due to load [23].
Stress is first stage of physical, emotional and mental exhaustion and burnout which is caused by
engrossment in highly demanding circumstances. In the workplace and continued experience of stress and
long working hours [24]. Stress is a state that forces employees to depart from their normal working
because of the change disorder in his/her psychological and/or physiological situation [11].
Furthermore, Commitment has defined as The readiness and willingness of employees to use their
energy and skills for the organization success and to give the total loyalty to the organization [25, 26].
Commitment is a steadying force that acts to maintain individuals in the organization while the
expectancy or fairness circumstances are not encountered or do not function [27, 28]. Commitment is a
psychological state that keep coherent the employees with the organization [29]. Committed employees
provide a great support to organizations because they perform and act for accomplishing the
organization’s goals. Moreover, committed employees are pleased to be the partners of it. Employee
commitment plays an important role in achieving organizational goals [25].
The word “performance” has been used broadly in all fields of management. The concept of
performance in the management perspective has been defined in different manners by researchers.
Performance is a behavior that can be manifested or some work done by the employee [30, 31].
Performance can be defined in terms of some pre-determined standards-based measurements through
which we can generate future results[32]. Most of the people relate Performance with effectiveness and
efficiency [33]. Performance is the actions which might be appraised and gives contribution to
organizational efficiency as cited in [31]. Performance is the activities that help and contributing in
achieving the organizational goals [34, 35].

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

Lowering the anxiety/stress will leads to the increase of organizational commitment that result in
the increase in job satisfaction and performance [36]. Depersonalization is a type of emotional exhaustion
which reduces personal accomplishment and job satisfaction [37]. With the reduction of stress level,
employees seem to be more happy and enthusiastic towards their jobs and found more committed to their
organization [38]. Organizational commitment and loyalty are positively correlated with the higher
performance [39].
Organization commitment improves employee’s performance. Employee’s willingness creates
loyalty and commitment for organization [40]. Work related stress has not only cause’s demotivation and
reduction of organization commitment but also directly affect employee’s performance. Emotional
exhaustion plays the role of mirror to show employees’ sources of energy [41]. Exhausted and stressed
employees are unable to perform the job better. [16]. High level of job stress leads to low level of
employee’s job performance[42]. Stress is mostly created because of continuously and long working
hours that could be slowly disappeared by taking some rest [16]. Working for longer hours decreases
employee’s desire for better job performing [14].
In today’s researches it’s estimated that around 3% to 7% of the employees across the world are
suffered from stress [16].Stress causes severe absenteeism, the loss of talent, damaging organization’s
reputation and profitability [43]. When Job stress exceeds from limits e.g. burnout stage then it not only
affects employee’s commitment and performance but it also contributes in employee turnover intention
[44, 45]. Every third employee feels high occupational stress[46]. From the above review and discussion
it is concluded that stress provide base for burnout and this badly affect employee retention in the
organization, employees commitment, motivation, organizational productivity and performance.
In this study, the independent variable is job stress and dependent variables are organizational
commitment and employee’s job performance. From the above discussion, it is clear that job stress
directly affects the dependent variables e.g. organizational commitment and employee’s job performance
in the banking sector.

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

3. Research Methodology
The current study is using Quantitative approach for measuring variables. This study has been
arrange to follow positivistic approach and based on a large sample size, gives importance to the validity
and reliability of findings that can be generalized [12, 47].
This study is descriptive in nature because it explains the correlation among job stress,
employee’s commitment and job performance in banking sector of district swat KP Pakistan. The aim of
the researcher is to investigate the improvement in employee’s job performance through organizational
commitment hence; the researcher has taken population for this study. The population of the current study
is employees working in banking sector of swat KP Pakistan that as 753. Sample for this study has been
selected by using the Krejcie and Morgan [48] formula which is 254 in simple random sampling
technique.
Data has been collected through closed ended questionnaire. The instrument has adopted from
[49, 50] to find out the relationship between job stress, organizational commitment and job performance.
Reliability statistics, correlation and regression analysis have been used. The analysis of data has been
done through SPSS 21.
4. Data analysis
4.1 Reliability Analysis
In the reliability analysis, Cronbach’s alpha has been used to know about the instrument accuracy.
In the study Cronbach’s alpha Values are given in the table 1. The values for job stress, organizational
commitment, employee’s performance indicates that the instruments used are reliable. The variable is
considering reliable if the Cronbach’s alpha value is equal or above than 0.7. Therefore, the study variable
instrument is acceptable range.
Table 1: Reliability statistics
Variable Name Cronbach’s alpha No of Items
Organizational Commitment 0.702 5
Job stress 0.826 5
Employees Performance 0.731 5

4.2 Correlation Analysis

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

For calculating the degree of relationship among the variables e.g. job Stress, organizational
commitment and employee’s performance. The study has used the correlation matrix as shown in Table 2.
The values in this study show that job stress is negative correlated with organizational commitment and
employee’s job performance. While organizational commitment strongly positive correlated with
employee’s job performance.

Table 2: Correlation Matrix

Job stress Organizational Employees
Commitment Performance
Job stress 1
Organizational Commitment -0.564** 1
Employees Performance -0.593** 0.724** 1
(**) correlation is significant at the 0.01 level (2-tailed)

4.3 Regression Analysis

The regression analysis is used to measure the magnitude of causal relation of independent and
dependent variable. The F values in the table 3, show that overall model is significant. The R square
values show that 32% and 35% of the variance in organizational commitment and employee’s
performance can be predicted from job stress respectively, while 52% of variance in employee’s
performance can be predicted from organizational commitment. The β values in the table indicate that one
unit of increase in Job stress causes .5-unit decline in the organizational commitment and .6-unit decline
in employee’s performance. On the other hand, one-unit increase in organizational commitment
contributes .7 unit increases in employee’s performance. The ρ values in the table represent that the
relationship among Job stress, organizational commitment and employee’s performance is significant.
Table 3:Regression Analysis
Organizational Commitment Employee’s Performance
Β T Sig Β T Sig
(Constant) 19.5 40.6 .000 17.65 38.0 .000
Job Stress -0.564 -10.7 .000 -0.593 -11.6 .000
R2 0.318 0.352
Adj R2 0.315 0.350
F-Model 115.5 134.8

There is a slight difference in the reliability, correlation and regression statistics between this study and
other studies because of different cultural backgrounds and situational factors. In addition, as the gender
factor affect the relation of above discussed variables. Stress level changes due gender. Men feel high
level of job stress then women [16].

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

5. Result and discussion

The results of the study indicate that most of the banking employees are under a great stress and
feels tired, having less energy for doing work due to their stress. Similarly, employees were not
committed and unsatisfied with the policies, reward and incentives provided to them.

From the above data analysis, it has concluded that there is a strong negative association among
job Stress, organizational commitment and employee’s performance among the employees of banking
sector in district swat. It means that when job stress increases among the employees the level of
organizational commitment and employee’s performance will be decreases and vice versa. On the other
hand, the second objective is to investigate the relationship between organizational commitment and
employee’s productivity. Therefore, the results concluded that organizational commitment has a positive
relationship with employee’s performance. In order to increase in employee’s performance and
organizational commitment the banking sectors should revise such policies that will benefit to avoid
employees from tension, stress or at least to overcome some reasons of job stress.

6. Conclusion

The result of the study indicate that most of the banking employees are under a great stress and
feels tired, having less energy for doing works due to their stress. Similarly, employees were not
committed and unsatisfied with the policies, reward and incentives provided to them.

Study has few limitations, as the study has conducted quantitative in nature and cross sectional.
The study selected the banking sector of swat district. The researchers have time and financial constraints.
The researcher restricts his study to three variables job stress, organizational commitment and
performance. This study suggests that the management should increase work force staff to overcome the
heavy workload. For minimizing the feeling of stress due to uncertainty about their exact job
responsibilities, the management should give specific responsibilities to concerned employees. Therefore,
the management should revise their policies to manage the time in proper way and arrange some training
programs.

References
1. Sockel H, Mak B,Bucholz [Link] Affects of Diffusion of Technology Innovation and Burnout.
Journal of Management Systems, 2004,16(1), 25-37.
2. Islam J, Talukder M, [Link] Impact of Technology, Job Complexity and Religious Orientation
on Managerial Performance. Australasian Accounting, Business and Finance Journal, 2012,5(4),
19-42.
3. Shujat S,Bhutto [Link] of Work Life Balance on Employee Job Satisfaction in Private Banking
Sector of Karachi. Journal of Management and Social Sciences. 2011,7(2), 08-15.

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

4. Khan [Link] Rotation, Job Performance, Organizational Commitment: An Empirical Study On

Bank Employees. Journal Of Management Info. 2014,3(1), 33-46.
5. Akram A, Hassaan [Link] of Work Life Conflict on Job Satisfaction. Journal of Resources
Development and Management. 2013,2, 1-8.
6. Malik [Link] and Acquisitions: A Conceptual Review. International Journal of Accounting
and Financial Reporting. 2014,4(2), 520-533.
7. Kafetsios [Link]-family conflict and its relationship with job satisfaction and psychological
distress: The role of affect at work and gender. Hellenic Journal of Psychology. 2007,4(1), 15-35.
8. Goldsmith [Link], fatigue, and social support in the work and family context. Journal of loss
and trauma. 2007,12(2), 155-169.
9. Khan [Link] R,Khan [Link] demands, burnout and resources in teaching a conceptual review.
World Applied Sciences Journal. 2014,30(1), 20-28.
10. Nadeem MS, Abbas [Link] impact of work life conflict on job satisfactions of employees in
Pakistan. International Journal of Business and Management. 2009,4(5), 63-69.
11. Khan [Link] Burnout and Professional Development among Universities Academicians. Science
International Lahore. 2014,26(4), 1693-1696.
12. Khan. [Link] Demographic Make a Difference to Job Burnout Among University Academicians?
International Journal of Economics and Financial Issues. 2015,5.
13. Khan [Link] of Disengagement on Organziational Commitment among Universities
Academicains: An empirical study. PUTAJ-Huminities and social sciences. 2016,23(2), 113-125.
14. Ahmed A,Ramzan [Link] of Job Stress on Employees Job Performance A Study on Banking
Sector of Pakistan. Journal of Business and Management(IOSR-JBM). 2013,11(6), 61-68.
15. Bruce, S.P., Recognizing stress and avoiding burnout. Currents in Pharmacy Teaching and
Learning, 2009,1(1), 57-64.
16. Gorji M, Vaziri S,[Link] survey job burnout status and its relation with the performance of
the employees (Case study: Bank). Int. Proc. Econ. Dev. Res. 2011,14, 219-224.
17. Arnold B, Simon A, Michael [Link] engagement: Further reflections on the state of play.
European Journal of Work and Organizational Psychology. 2011,20(1), 74-88.
18. Lewig KA, Dollard [Link] dissonance, emotional exhaustion and job satisfaction in call
centre workers. European Journal of Work and Organizational Psychology. 2003,12(4), 366-392.
19. Hakanen JJ, Bakker AB, Schaufeli [Link] and work engagement among teachers. Journal
of school psychology. 2006,43(6), 495-513.
20. Despoina X,When do job demands particularly predict burnout? The moderating role of job
resources. Journal of Managerial Psychology. 2007,22(8), 766-786.
21. Schaufeli WB, Bakker AB, Van Rhenen W. How changes in job demands and resources predict
burnout, work engagement, and sickness absenteeism. Journal of Organizational Behavior.
2009,30(7), 893.
22. Selye H.A syndrome produced by diverse nocuous agents. Nature. 1936,138(3479), 32-37
23. Yusoff RM,Khan [Link] and Burnout in the Higher Education Sector in Pakistan: A Systematic
Review of Literature. Research Journal of Recent Sciences. 2013,2277, 2502.
24. Health and S. ExecutiveTackling Work-related Stress: A Guide for Employees. 2001.
25. Dixit V,Bhati M.A study about employee commitment and its impact on sustained productivity in
Indian auto-component industry. European journal of business and social sciences. 2012,1(6), 34-
51.
26. Stephen [Link] and Allen model of organizational commitment: Measurement issues. The
ICFAI Journal of Organizational Behavior. 2007,6(4), 7-25.
27. Scholl [Link] organizational commitment from expectancy as a motivating force.
Academy of management Review. 1981,6(4), 589-599.
28. Angle HL,Perry [Link] Empirical Assessment of Organizational Commitment and Organizational
Effectiveness. Administrative science quarterly. 1981, 1-14.

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

29. Allen NJ Meyer JP. The measurement and antecedents of affective, continuance and normative
commitment to the organization. Journal of occupational psychology. 1990,63(1), 1-18.
30. Dunnette MD, Hough [Link] of industrial and organizational psychology. 2. 1991,
Consulting Psychologists Press.
31. Mawoli MA, Babandako, An evaluation of staff motivation, dissatisfaction and job performance
in an academic setting. Australian Journal of Business and Management Research. 2011,1(9), 1-
13.
32. Gephart R., Book Review: Human Resources, Management, and Personnel: Stories of
Achievements: Narrative Features of Organizational Performance. Industrial & Labor Relations
Review. 1999,52(3), 486-487.
33. Bartlett CA,Ghoshal [Link] the Role of Top Management Beyond Systems to People. Long
Range Planning. 1995, (28), 126-136.
34. Armstrong M,Baron [Link] Management, in Human Resource Management. 2000, 69-
84.
35. Onukwube H, Iyagba R, [Link] influence of motivational factors on job performance of
construction professionals in construction companies in Nigeria in The Construction, Building
and Real Estate Research Conf. of the Royal Institution of Chartered Surveyors. 2010.
36. Akpinar AT, Yunus T, Okur ME. The effect of job satisfaction and emotional exhaustion on
affective commitment of emergency services employees. British Journal of Economics Finance
and Management Sciences, 2013,7(2), 169-176.
37. Nagar [Link] commitment and job satisfaction among teachers during times of
burnout. vikalpa. 2012,37(2), 43-60.
38. Batool M, Ullah R. Impact of Job Satisfaction on Organizational Commitment in Banking Sector:
Study of Commercial Banks in District Peshawar. International Review of Basic and Applied
Sciences. 2013,1(2), 12-24.
39. Brown [Link] performance, worker commitment, and loyalty. Journal of Economics &
Management Strategy. 2011,20(3), 925-955.
40. Khattaki A,[Link] Normative Commitment (ONC) has Psychological Positive
Effects on Employees’ Performance. Abasyn Journal of Social Sciences. 2012,5(1), 99-110.
41. Demerouti E, Verbeke WJ, Bakker [Link] the relationship between a multidimensional
and multifaceted burnout concept and self-rated performance. Journal of management.
2005,31(2), 186-209.
42. Kazmi R, AmjadS,Khan [Link] stress and its effect on job performance. A case study of
medical house officers of district Abbottabad. J Ayub Med Coll Abbottabad, 2008,20(3), 135-
139.
43. Johnson [Link] experience of work-related stress across occupations. Journal of managerial
psychology. 2005,20(2), 178-187.
44. Lee KE, Shin [Link] burnout, engagement and turnover intention of dietitians and chefs at a
contract foodservice management company. Journal of Community Nutrition. 2005,7(2), 100.
45. Khan [Link] Affecting Job Turnover: A case study of Privet Schools of District Swat. Sarhad
Journal of Management Sciences. 2017,3(01), 46-56.
46. Mosadeghrad A.M. Occupational stress and turnover intention: Implications for nursing
management. International journal of health policy and management. 2013,1(2), 169-176.
47. Saunders [Link] methods for business students, 5/e. 2011: Pearson Education India.
48. Krejcie RV, Morgan [Link] sample size for research activities. Educational and
Psychological Measurement. 1970,30, 607-610.
49. Buchanan [Link] organizational commitment: The socialization of managers in work
organizations. Administrative Science Quarterly. 1974. 533-546.
50. Brown SP,Leigh TW.A new look at psychological climate and its relationship to job involvement,
effort, and performance. Journal of applied psychology. 1996,81(4), 358.

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20

Research article University of Swabi Journal (USJ); Open access

Uni. J. Swabi., Vol.1, Issue, 1. November 2017, pp. 11-20