THE EFFECT OF WORK RELATED STRESS ON EMPLOYEES’ PERFORMANCE: A CASE IN SHINTS ETHIOPIA GARMENT PRIVATE LIMITED COMPANY

Abstract

The aim of this study was to examine the effects of work related stress on the performance of employees at Shints Etp Garment. The study was a descriptive research type and Quantitative research approach was used in data collection and analysis. Both primary and secondary sources of data were also used in the study. Work overload, Role ambiguity, lack of motivation and working environment were the four independent variables used in this study to explain the dependent variable (employees’ performance). The sample size for the study was 343 respondents, a probability sampling design was employed and respondents were selected using systematic sampling technique. SPSS was used to analyze the data collected using a five-point Likert scale Questionnaire. The results of the correlation analysis indicates that work overload, role ambiguity, and lack of motivation have a negative and significant effects on the performance of employees with values (r=-.378, r=-.214, r=-.237 and p<0.01) respectively. While working environment is positively correlated with the performance of employees and the association is moderate and significant at r=.183 and p<0.01. However, the beta coefficient value for role ambiguity, B= -.087 with a significant value of .058 which is a little bit higher than 0.05 depicts statistically insignificant. The results of the regression analysis shows that the four independent variables (work overload, role ambiguity, lack of motivation, and working environment) of the study explains 24.5% (R2=0.245) of the dependent variable (the performance of employees). From the results of the study it’s concluded that even if the employees of the garment are working in a good working environment they experience work load and lack of motivation which can affect their performance negatively. Therefore the company has to take into consideration on how to minimize the workload and on applying better motivational practices. Further wider studies must also be carried out comprising of other variables not included in this study to predict the effects of stress on the performance of employees in this garment and other garments in the country as well as other developing nations.