Innovations in Business and Strategic Management

ABSTRACT

The competitive edge of a bank depends largely on the optimal utilization of its employees. When employees experience stress, their ability to perform effectively diminishes. In service-oriented organizations such as banks, work-related stress is a major factor that contributes to poor job performance. Achieving success in such environments requires employees to perform well and stay committed. It also necessitates minimizing stress levels to enhance productivity. This study examines the causes of job stress and its impact on employee performance in selected branches of the Commercial Bank of Ethiopia (CBE) in Wolaita Sodo. A causal research design was used to explore cause-and-effect relationships among variables. The target population consisted of employees with more than one year of service, with a sample size of 185, of which 170 completed questionnaires were returned. A confidence interval of 95% was used. Judgmental sampling was employed to select participants with relevant experience, ensuring meaningful insights into the impact of job stress. Both primary and secondary data sources were utilized, with questionnaires and interviews used for primary data collection. A pilot study confirmed the reliability of the questionnaire, yielding a Cronbach alpha value of 0.755. The study used descriptive and inferential statistics to analyze the data and explore relationships among variables. All five independent variables job design, role imbalance, workload, teamwork, and stress management showed significant positive correlations with employee performance. A multiple linear regression model revealed an R² value of 50.4%, indicating that the independent variables explain 50.4% of the variance in employee performance. The remaining 49.6% is attributed to external factors not included in the model. The findings indicated that high levels of job stress negatively impacted employee performance. Specifically, role imbalance, lack of job design, and work overload were statistically significant predictors of performance. Based on these results, managers and stakeholders should focus on developing detailed job descriptions, planning tasks effectively, implementing time management strategies, and regularly assessing workloads to reduce role imbalances. Further research should extend the insights of this study to all branches of the Commercial Bank of Ethiopia. Additionally, similar studies could explore the impact of job stress in academic contexts, such as university lecturers, to identify context-specific strategies for improving performance.

Article History

KEYWORDS

1. Job stress
2. Employee performance
3. Role imbalance
4. Workload
5. Stress management
6. Commercial bank