Management of Occupational Stress - Case Study Example

Executive Summary Occupational stress is one of the main problems that faces employees at work. Occupational stress also lowers the productivity of the company and may increase the costs that the company incurs significantly. To address the issue of occupational stress in xxx company, the objectives of the project will be to establish the causes of occupational stress among employees of the company and to reduce the cases and effects of the condition by 40% within the first year of implementing the proposed solution. The project which is estimated to cost $7,920 will be monitored and evaluated continuously, every four months to establish progress. The project will be considered a success if the company’s productivity will have significantly improved and the cases of illness, absenteeism, and turnover reduce by 40% within one year of the proposal implementation. Management of Occupational Stress Problem Statement Occupational stress is one of the most serious management problems facing companies in the United States today. Reports indicate that occupational stress has been on the increase with employees complaining that they are stressed at their jobs. However, analyses show that occupational stress is caused mainly by poor management. Most companies today are more interested in making huge profits at the expense of employee well-being. A study conducted by the American Psychological Association in 2007 showed that companies apply stress on their employees with the aim of increasing company profit (par. 4). As much as this might be helpful in increasing company returns, its overall consequence is bad for both the employer and the employee. A study conducted by the American Psychological Association showed that about two-thirds of Americans identified work as the main source of stress in their lives (2). This accounted for a 15% rise compared to the year before. To make matters worse, about 30% of workers polled said that they were experiencing extreme level of occupational-related stress. Another research conducted recently by the American Institute of Stress showed that about three-quarters of American employees polled were experiencing symptoms of occupational-related stress (par. 3). In fact, according to a study conducted by the American Institute of Stress, only 17% of employees polled reported being comfortable and did not experience stress in their jobs (par. 3). These statistics are worrying considering the impacts that job stress have on the performance of the company. There is need for xxx company to appreciate the causes of occupational stress and deal with them by instituting effective measures. Project Objectives: 1. To establish the main causes of occupational stress in xxx company 2. To reduce the cases and effects of occupational stress by 40% within one year after the institution of the project Reasons Why Addressing Occupational Stress Matters To the Business Presently, close to 83% of employees in the United State companies experience stress in their jobs. However, the most alarming fact is that the numbers continue to increase every year. This reality points to the lack of action by managers to ensure that employees are satisfied in their jobs. Regardless of the nature of business that a company engages in, it is very important for its managers to ensure that employees are not stressed up in their workstations considering the negative effects that job stress has on both the employer and the employee. Psychologists have warned that too much stress can result in a decline in employee productivity. According to a study conducted in 1908, researchers observed that once the stress surpasses a mid to high level, the productivity of an employee drops significantly (Willingham 1). The researchers also observed that the drop in productivity makes the bottom line suffer. Based on this research, it becomes apparent that the job stress can impact negatively on the overall performance of the company since it affects employee productivity. Secondly, addressing occupational stress is important because it helps in reducing accidents that occur at work. Occupational stress has been cited as one of the leading causes of accidents at the workplace in the United States. Research conducted by the American Institute of Stress established that stress-related sleeplessness or destructions are responsible for about 60% to 80% of accidents at work (par. 5). Some of the accidents that occur because of occupational stress results in deaths or serious injuries. In fact, according to the American Institute of Stress, these accidents are to blame for the increase in the number of disabled people in most companies. The deaths and injuries that result from the accidents that occur due to work stress have proved costly to many companies. Mamula observed that occupational stress has resulted in increased claims for compensation, which costs organizations millions of dollars (14). As the claims for compensation continue to increase, most companies are likely to become bankrupt in several states. Research has shown that the most stressed up employees tend to become fatigued and prone to injuries and making mistakes. This increases the health costs that companies have to incur treating or compensating employees. A report produced by the American Institute of Stress noted that companies incur twice as high healthcare cost on stress management than for other employees problems (par. 3). According to the study, stress-related illnesses such as heart diseases, manic disorders, or hypertension, cost companies approximately $200 to $300 billion every year in lost productivity. These statistics shows that it is high time for companies to address occupational stress in their businesses. Addressing occupational stress will also help reduce employee absenteeism, which affects the operations of the company. By addressing occupational stress in the company, the company will probably witness a significant reduction in absenteeism. This will be of great benefit to the company since it will allow the company to operate without interruptions that normally occur because of absenteeism. According to the American Psychological Association report, about one million employees fail to report to their workstations because of stress (par. 6). This costs companies about $602 per worker per year (Willingham 1). Most companies also end up suffering from decreased productivity when an employee fails to report for work due to stress. Further, research has shown that companies spend about 26% of health-related costs on lost productivity. This figure is likely to increase as the stress level among employees continues to rise (Mamula 14). By addressing occupational stress, the company will be able to minimize the costs that are associated with employee absenteeism and hence improve or maintain high productivity. In addition to absenteeism, presenteeism is another problem that is associated with occupational stress. Presenteeism, according to Willingham is a situation in which employees report for work, but fail to work up to their capabilities on the job (par. 4). Research conducted by the American Psychological Association established that close to 60% of employees experience a decline in productivity due to occupational stress (par. 7). This impacts negatively on the performance of the company since it manifests in different forms, including higher number of mistakes, lack of commitment on the job, poor quality work, increased delays in completing tasks, increased cases of burnout, resentment, anger, low morale, and impaired social functioning among others. The International Foundation of Employee Benefit Plans report reveals that employee presenteeism costs companies an estimated $150 billion every year in lost productivity. Therefore, by addressing occupational stress in an organization, the company will reduce the prevalence of presenteeism. This will help reduce costs associated with presenteeism in the company, thus success. Occupational stress is not good for the well-being of employees. According to the American Psychological Association research, occupational stress is responsible for the development of chronic diseases such as cancer, hypertension, heart diseases, depression, and back pain (par. 11). Apart from making it impossible for employees to continue working, the diseases are also costly to a company. Research conducted by the Occupational Safety and Health Organization (NIOSH) revealed that employees who experience occupational stress at their workstations incur about 46% of healthcare costs higher than those incurred by non-stressed workers (Mamula 14). The research also showed that between 60% and 90% of doctor visits among workers are because of occupational stress. Every time a doctor visits a company, this translates to additional costs for the company. Another study conducted by the National Institutes of Mental Health revealed that businesses spend close to $23 billion each year in lost workdays due to depressive disorders (Mayo Clinic Staff par. 6). Therefore, managing occupational stress in the company will help the company reduce the prevalence of illnesses associated with occupational stress, thus saving costs related to healthcare. Proposed Solution and Its Implementation Occupational stress has far-reaching negative consequences to both employees and the company. It interferes with the well-being of employees, which adds cost to the company and reduces corporate profitability. Dealing with the problem of occupational stress among employees will involve the cooperation of employees and managers. The solutions to the problem will be arrived at by first establishing the root causes of the problem and assigning relevant solutions based on these causes. This means that an array of solutions or measures may be applied to deal with the issue of occupational stress among xxx company employees. In this respect, the managers need to address the issue by coming up with effective stress identification and management strategies to eliminate identified stressors in the company. Addressing occupational stress in a company begins by demonstrating how much they value not only the productivity of their workers, but also the health of the workers. This is because, as much as the employer may be interested in making huge profits by exerting pressure on employees, the employer must value the well-being of employees. Minding about the well-being of employees is important because it will result in the initiation of measures that ensure that employees work in an environment free of stressors. In addition, the employer must initiate strategies that promote changes in the organization as well as encourage workers to learn to manage their stresses, regardless of their sources. However, managers must ensure that the strategies adopted are not very expensive. Instead, managers should plan ways to improve communication and recognize ways in which employees can become more effective (Mamula 14). Implementation Plan To address occupational stress in the company, managers will have to begin by evaluating the degree of stress in the workplace by analyzing the illnesses, company productivity, rates of absenteeism, performance problems, and turnover rates. Analysis of these aspects is important because they act as a pointer to the main sources of occupational stress in the company. Knowing the sources of stress is important since it helps in coming up with an effective management strategy for any particular stressor. Before developing a strategy to address a stressor, managers will have to engage employees of the company by asking them through a survey the causes of occupational stress at their places of work and strategies which they feel can remedy the situation. This is important because it will ensure that the strategy that the company adopts is the best and is accepted by the employees, as well. Once the stressors and possible solutions have been identified, managers will take measures to ensure that workloads are in line with the resources and capabilities of employees. This is because unreasonable workload has been cited as one of the main source of stressors in most businesses. Ensuring that employees are not overburdened by too much work will help address stress that emanates from unreasonable workload in the company. The managers of the company will also have to ensure that the roles and responsibilities of workers are clearly defined. Research has shown that that lack of clearly defined roles and responsibilities are a major source of stress in an organization (Mayo Clinic Staff par. 2). This is because lack of clearly defined roles and responsibilities makes it hard for employees to understand what is expected of them at their workstations. Therefore, by defining roles and responsibilities, employees will be able to understand what they are supposed to be doing at any particular time, thus reducing occupational stress resulting from unclearly defined roles or goals. Addressing occupational stress in the company will also require managers to provide employees with the opportunity to participate in decision-making regarding issues affecting their jobs. Involving employees in decision making affecting their jobs has been identified as one of the factors that motivate employees. It also helps in resolving conflicts that might be causing stress to employees. Lack of career development and advancements has also been identified as one of the major causes of occupational stress. Therefore, addressing occupational stress in the company will require the establishment of whether or not the company promotes career development. The company will have to address career development issues by promoting employees and giving them the opportunity to advance their education such as through training and education. In addition, the company will have to consider offering scholarships to employees and paying them during the educational leaves for career development. Career development will not only be beneficial in reducing occupational stress but will also benefit the company as the employee will be able to acquire new skills and knowledge that they lacked. Work-life issues could also be a possible stressor in the company. Research indicates that most employees are stressed because of lack of time to attend to their families. Therefore, the managers of the company will be required to institute flexible working programs to enable employees have some time to attend to family issues. Where possible, employees can be allowed to telecommute. The company will have to ensure that pregnant women are given maternity leaves at the right time and for the right duration. This strategy will help address work-life stressors. WRSystems Ltd is a classical example of a company that addressed work/life balance by creating a flexible working schedule, as well as allowing job sharing and telecommuting. Introducing work/life balance programs will help reduce accidents, injuries, accidents and turnover will significantly reduce health care claims. The company will have also to offer a variety of wellness activities. Research has shown that relaxation and exercise techniques are helpful in reducing the stress response in the body and improve therefore helps improve personal well-being. A certain study also showed that physical exercise at work is capable of increasing employee productivity. Therefore, the company will have to consider providing at least two half-hour brakes thrice a week to help improve the health of employees by reducing the blood pressure, and ensure healthier weight, and increased stress management. The company will also have to consider creating a stress management workshop for employees and managers. The purpose of the workforce will educate workers regarding the sources of stress, impacts of stress on their health, and how best to minimize stress. The training will be supported by practical stress management methods to use on and off the job. Introducing a wellness workshop will help reduce healthcare cost significantly as it did to the Bank of America that realized a reduction of healthcare costs by 20% after only two years of the introduction of the program, according to The Kent Center for Human and Organizational Development (par. 3). Above all, the company will have to ensure that employees are well remunerated since poor remuneration ranks the highest source of stress among many employees. In this regard, the company will have to pay salaries that are commensurate with the experience, skills requirement, and the nature of work that an employee does. Paying employees well not only motivates employees to work hard, but also reduces stress, resulting in low turnover. Project Evaluation The project will be evaluated continuously once it has been established. After the proposed changes have been instituted, the human resource management team will analyze progress every four months. The team will collect and analyze data relating to illnesses, rates of absenteeism, performance problems, company productivity, and turnover rates periodically and compare these to statistics collected before the project was initiated. The team will also conduct periodical surveys among employees to establish whether or not they appreciate and are benefitting from the measures that have been instituted. The results of these studies will be properly documented for future reference. The human resource team in conjunction with the unit managers will take measures to ensure that the company and its employees abide by the changes throughout and beyond the evaluation period. The project will be a success if the number of cases of absenteeism, illnesses, employee turnover, and performance problems will have reduced significantly (by about 40%) and productivity increased significantly within the first year of the proposal’s implementation. Proposed Budget Serial No. Resource Cost in USD 1 Stationery 200 2 Allowances for Implementers 2000 3 Exercise Equipment and Facilities 4000 4 Training of employees on stress management 1000 10% Contingency 720 Total 7,920 Why This Is the Best Proposal This proposal is worth adopting owing to its low demands in terms of finance and resources. The implementation of the proposal will not require experts from outside the organization which means that the company will save a lot in terms of cost by relying on its employees to implement and monitor the project. The proposal is also worth consideration since it addresses the root causes of occupational stress among employees and does not apply a general solution that may not be effective to this specific company. The proposal suggests possible solutions to the occupational stress problem that are based on research and that have been tested in other organization which means that it if properly implemented, it is bound to produce great results. Works Cited American Psychological Association. Stress Survey: Stress a Major Health Problem in the U.S. APA Help Center. 2007. Web. 7 Nov. 2013 . American Institute of Stress. Job Stress. 2013. Web. 7 Nov. 2013, Mamula, Kris B. Reducing Workplace Stress Can Help Companies’ Bottom Lines. Pittsburgh Business Times. 14 Nov. 2008. Web. Mayo Clinic Staff. Stress management. 2013. Web. 7 Nov. 2013 http://www.mayoclinic.com/health/coping-with-stress/SR00030 The American Institute of Stress. Workplace stress. 2013. Web. 7 Nov. 2013, http://www.stress.org/workplace-stress/ The Kent Center for Human and Organizational Development. Coping with your job: Stress and depression in the workplace. Web. 7 Nov. 2013, . Willingham, Jacqueline G. Benefits & Compensation: Managing Presenteeism and Disability to Improve Productivity. Digest. 12 Dec. 2008. Print. Read More