A comparative study on job stress and employees performance among banking employees in Malaysia.
Thesis Title
A comparative study on job stress and employees performance among banking employees in Malaysia.
Chapter 1
Introduction
Background of Study
As a result of the contemporary lifestyle, stress is now a well-recognised phenomena that negatively affects people's health as well as their performance in both their personal and professional lives. No matter the size of the firm, stress occurs. This might be caused by an unpredictable work environment, intense competition, sustainability risk, or having to meet specific standards with constrained resources. (Madian, 2019). Thus, workplace stress develops as a result of employees feeling pressed to meet their goals and objectives, working longer hours, dealing with pressure, not knowing what is expected of them. Employee pressure may have a beneficial or bad effect depending on whether the person can manage the stress, especially when demands and pressure become excessive, according to the Health Safety Security and Environment (HSSE) globe. In light of this, stress may have a major influence on an employee's ability to execute their work.
Role ambiguity, underutilization of abilities, and job overload are the elements that cause stress. Role ambiguity, occurs when job expectations are difficult to meet. It occurs when staff members are uncertain about how to do a task, when no clear instructions are provided, or when they are not made aware of their specific responsibilities (Jalagat, 2017). According to Jalagat (2017), underutilization of skills refers to employees' talents and abilities that go beyond what is necessary for the task to be done. Additionally, work overload occurs when people are given many tasks that are above their capacity to do them. Thus, even the most competent person will experience work-related stress due to excessive deadlines, unattainable goals, and unmanageable workloads.
The issue of work stress among bank employees could be better addressed if the causes of such stress were properly identified and evaluated. The question of how work stress affects workers performance is a relevant one given the nature of today's banking environment and the challenge of dealing with difficult customers. The current high-demanding banking industry is an inherently stressful profession with long working hours, fierce competition, ethical dilemmas, regulatory bottlenecks, and difficult customers.
Although many academics concur that stress has an impact on workers' performance, but none could agree on the mutual causes of stress. This can be clearly seen in the studies of; Bhui K, (2016) concluded that unfavourable working conditions and practice as common causes of work stress. Stress-inducing administration hones included unreasonable requests, non-supportive environment, favouritism, non-rewarding tasks, clashing roles, need of straightforwardness and lack of communication. Rizwan M. (2014) indicated that role conflict, excess tasks and work family conflict are the causes of job stress. In his study, he also indicated that uncertainty of roles has no influence towards employee stress. (Chien,2019) emphasized that most employee in banking sector mainly feel stressful especially in meeting customer needs as well as leaders whom push work to be completed quickly at the same time meeting the standards.
These days, databases, knowledge, and financial evidences are widely used in the supply of banking services. Additionally, the delivery of financial services in the banking industry depends on the collaboration of several partners who must share their knowledge in order to offer excellent services. Knowledge is crucial to managing businesses since it aids in decision-making by managers and fosters information sharing within e-business communities banking employees performance should also been assessed by their knowledge . In this study we are going to full fill the objective of identifying the banking employees job stress level and also corelated them with job performance based on work knowledge performance, responsibility and time management.
Problem statement
The recent Employee Wellness Report 2022 have concluded over half of Malaysian employees were burnt out. The report reveal almost 58% of employees from various industry agreed the burnt out feelings where most of them aged between 18 to 35 years old. The report also highlighted issues where employees have poor work-life balance causing poor job performance. Another incident where a staff Azura Norden charged Small Medium Enterprise Development Bank Malaysia Berhad for poor performance termination has brought the question are banking employees is competent enough to handle task given or there are any factor impacting their day to day jab performance. A study conducted by Muhammad, Muhammad (2011), indicated that stress has been one of the major reasons that mainly affects both job performance as well as the overall organization.
MetLife study indicates that more than two-thirds (67%) of senior-level decision makers at financial institutions would contemplate leaving their employment within the next year if stress levels did not decrease. In a separate poll conducted by Capita Employee Benefits, 75% of respondents reported being severely stressed by a work-related problem during the last year, yet just 20% had taken time off to cope with it and 49% claimed they would still go to work when unwell in order to prevent work from piling up in their absence, despite the fact that 70% feel they are less productive when they come to work while sick and 44% of those surveyed reported knowing a colleague who quit their job due to stress. This clearly indicates stress could impact the job performance of employees especially in banking industry.
This research tries to comprehend the reciprocal link between job stress and employees performance. Although stress is the fundamental component or feature of any human existence which accompanied by so many other negative components. However, there is a significant disparity between the levels of stress in banking industry due to the fundamentally different natures of their respective policies.
Research Question
Is there an impact of job stress on employee performance in Malaysian banking employees?
Research Objective
To determine the job stress and job performance level in Malaysian banking employees using a validated questionnaire.
To identify the correlation between job stress and employee performance among Malaysian banking employees
To determine the association between job stress and demographic profile among Malaysian banking employees
Hypothesis
Ho: There is no correlation between job stress and employee performance among Malaysian banking employees
H1: There is correlation between job stress and employee performance among Malaysian banking employees
Ho: There is no association between job stress and demographic profile among Malaysian banking employees
H1: There is association between job stress and demographic profile among Malaysian banking employees
Significant of Study
The Malaysian banking industry has played a prominent role in indirect finance while encountering issues comparable to those of other Asian nations afflicted by the financial crisis. The direct causes of the problems are a recession and the collapse of the real estate and stock markets. However the finance and banking industry is determined to have the greatest turnover rate with 18.3% unfavourable since it results in higher expenditures for recruiting, training, and development, as well as for benefits and pay. (Letchumanan, 2017) The significance of the research measure stress-inducing elements among the employees in banking industry and corelate them with their job performance. This research could benefited by banking industry human resource to understand the degree of employee satisfaction and how to decrease stress and turnover. This would further assist them in enhancing their production and proficiency. In addition, it will give information on the many elements that lead to employee unhappiness and reduction in their job performance.
Chapter 3
Methodology
Study Design
A comparative study on job stress and employees performance among banking employees in Malaysia will be conducted as prospective manner, mainly because there was no source of secondary or tertiary information have been collected in any institution in Malaysia. Based on the literature there had been some studies conducted but not incorporating the both domains due to this retrospective method is not suitable. The cross-sectional study design will be adopted because there will be no interventional study carried out as this study was focused more on observational data where the data was tabulated and analysed. In this cross-sectional study, job performance will be measures as outcome and job stress will be the exposure factor both will be happening inn same time period. The study will be conducted from October 2022 until February 2023.
Study population
The population selected to participate in this study will be banking sector related employees both from local and international banks. The target population compromised of both male and female aged from 18 up 60 years old working in any department related to the banking industry. Based on the Global Databases Malaysia Table MY.KB079: Banking System Indicators the number of employees remain active as per year 2017 was reported at 118,851,000 person.
Sample size calculation
The sample size was calculated by using the equation below:
n = z2p(1-p)21+( z2 p1-p2N )Where,
n = sample size
N = population size of banking employees in Malaysia
z = z-score using 95% confidence level
= Margin of error (percentage in decimal form)
Therefore,
n = 1.9620.5(1-0.5)0.0621+( 1.962 0.51-0.50.062(550,000) ) n = 384 banking employees respondent
The total banking staff in Malaysia is 118,851,000. With 5% margin of error and 95% confidence level, the calculated sample size was 384. The calculated sample size was added with additional 5% to compensate for the sample response with incomplete data, invalid information and missing survey forms. The final total sample size required to conduct the study was 400.
Sampling method
Convenience sampling method will be used to conduct the survey in the study locations and through online questionnaire distribution. Convenience sampling is a specific type of non- probability sampling method that relies on data collection conducted on conveniently available population members present at the time to participate in the study. Convenient accessibility of the study population and short duration of time required to facilitate the data collection. Study samples were randomly chosen to answer the validated questionnaire according to the inclusion and exclusion criteria with no any other discrimination. Based on the data collected, data analysis was performed.
Inclusion and exclusion criteria
Respondent of the study typically had to meet certain significant criteria to be involved in the study. The respondents eligibility to participate in the study was based on the inclusion and exclusion criteria listed below.
Inclusion criteria:
1.Respondent should be aged between 18 to 30 years old.
2.Malaysian citizen working in local or international bank
3.Able to read and understand written English.
Exclusion criteria:
1.Retired banking employees .
Tools and questionnaire
Demographic data
Conceptual Definition of Variable Scale of Measurement
Age Years
Race Malay
Indian
Chinese
Others
Marital status Single
Married
Highest level of education Secondary
Tertiary
Degree
Masters
PhD
Nature of Banking Industry Local
International bank
Name of Bank Name
Employed Position Position
Job stress
Domain : Job Stress Working Aspect Related
1 Task assigned to you is as per your knowledge and potential
2 Clear cut tasks are assigned to you in the organization
3 Sufficient time allotted to you to complete the assigned targets
4 Workload in the organization
5 Tour / travel for the purpose of work of the organization
6 Working Hours
7 Time Pressure
8 Use of technologies in the organization
9 Are you satisfied with the change in technologies with time
10 Process of communication followed in the organization
11 Availability of resources and necessary tools for performing tasks in the organization
12 Work life balance
13 Frequent of stressful events
Job performance
Job performance : Work Knowledge & Performance
1 Job is assigned to you on the basis of your knowledge and experience
2 Do you take part in expressing ideas both orally and in writing
3 Do you have the ability and willingness to acquire fresh knowledge when assigned new duties or targets
4 Shares ideas and suggestions
5 Employee performance is judged on the basis of set targets
Job performance : Responsibility & Time Management
1 Are you fulfilling all the areas of your responsibilities
2 Achieve targets on time allotted (Meet Deadlines)
3 Manages multiple tasks with accuracy and efficiency
4 Neatness in presentation and execution of work
5 Are you communicating with your colleagues and supervisors on a regular basis which can help to accomplish tasks easily in the organization
Job Stress and Employee Performance
a) Highly dissatisfied
b) Dissatisfied
c) Neutral
d) Satisfied
e) Highly Satisfied
Data collection and management
In this study, data will be collected from the target population through convenience sampling method using validated questionnaire. The flowchart below illustrates the steps of data collection and data management implemented in the study.
Figure 3.1: Flowchart of data collection and data management
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Questionnaires will be also distributed via online Google forms created and the link address sent through WhatsApp group blast and emails. Potential respondents meeting the inclusion criteria of the study were approached and the objectives of the study was explained to the respondent. Approval of the respondents to participate in the survey was acquired by signing a consent form. Once the respondents agreed to participate in the survey voluntarily, the validated questionnaire was handed out and clear instruction on answering the question was given. Respondents were given reasonable time to complete the questionnaire and any doubts arise regarding the questions or certain words used in the questionnaire were clarified immediately upon request. Completed questionnaires were collected and checked for presence of any incompleteness or mistakes. Data collection was stopped after the target sample size was achieved. Data analysis was conducted using SPSS version 26 based on the data collected from the completed questionnaire. The analysed data was reported and discussed.
Statistical analysis
Statistical test was selected based on normality to determine parametric or non- parametric methods to be used. Normality of the continuous data was checked with the value of skewness and kurtosis. The Shapiro-Wilks test p value of more 0.05 was considered as normally distributed (Shapiro et al., 1965). The normal range of skewness and kurtosis are 2 (George & Mallery., 2010). Normally distributed continuous data will be expressed as mean and standard deviation whilst non-normal distributed continuous data will be expressed as median and interquartile range. Descriptive and categorical variables statistics were tabulated based on frequency and percentages.
Reference
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George, D., & Mallery, P. (2018). Descriptive statistics. In IBM SPSS Statistics 25 Step by Step (pp. 126-134). Routledge.
Shapiro, S. S., & Wilk, M. B. (1965). An analysis of variance test for normality (complete samples). Biometrika, 52(3/4), 591-611.
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