Managing Workplace Stress and Dissatisfaction for Organizational Success
Managing Workplace Stress
Addressing Employee Personal Problems
When an employee’s personal problems affect their work, managers have the right to address these issues and guide the employee towards assistance programs or expert help. This is part of a manager’s duty. The manager’s responsibility may depend on the organization’s philosophy towards employees, but they are responsible for preventing actions that undermine the organization, other employees, or customers.
Substance abuse, such as tobacco or alcohol, can be addressed if practiced within the organization. However, if it occurs outside of work and doesn’t affect performance, it’s harder to manage. These behaviors are often treated as potentially harmful to the company due to increased health risks, medical costs, and reduced productivity. The courts need to balance this with employee privacy rights. While companies can offer assistance programs, the question of mandatory versus voluntary participation remains open. Organizations that provide such assistance make a prudent business decision by protecting their investment in employee health and productivity.
Managing Workforce Reductions
When an organization faces decline or a shrinking market, workforce reductions may be necessary. Turnover can be positive if the departing employees are those whose skills are no longer needed. Consistently terminating ineffective employees after a reasonable period is functional. Some companies offer incentives to encourage employees to leave when downsizing is required.
Mass layoffs can be perceived negatively, signaling instability and discouraging potential applicants. They can also be interpreted as company intolerance, poor selection practices, or inadequate training. External observers often don’t understand the reasons behind such decisions.
Organizational Costs of Dissatisfaction and Stress
Health Care Costs
Work-related attitudes and emotions significantly impact employee health and well-being. Companies bear most of the cost of employee health care and are increasingly liable for stress-related illnesses, such as nervous breakdowns. Research links work stress to physical ailments like heart disease, a leading cause of death. As employers become more accountable, the financial cost of stress becomes a major concern. Stress-induced mental disorders are the fastest-growing category of occupational disease. Claims for emotional distress compensation by U.S. public officials rose dramatically between 1980 and 1995.
Absenteeism and Turnover
Dissatisfaction is a major cause of absenteeism, which can cost an organization over $650 per day per unscheduled absence. Absenteeism rates have been on the rise. Replacing departing employees is also expensive. Hewlett-Packard estimated the cost of replacing a mid-level manager at $40,000. Additionally, there’s lost productivity, the loss of investment in the departing employee’s development, and the need to reinvest in a replacement.
Low Organizational Commitment
Organizational commitment is the degree to which employees identify with their organization, invest effort, and intend to stay. Dissatisfaction significantly reduces commitment. Many employers worry that past staff reduction policies have eroded company loyalty. Several indicators measure organizational commitment (see Table 5.2 on page 126 of the text).
Workplace Violence
Since the mid-1980s, workplace violence has become a major problem. Workplace homicide is a rapidly growing form of murder. Other forms of violence are also increasing. Research indicates millions of workers are physically attacked, threatened, or harassed annually. Much of this violence stems from extreme dissatisfaction and stress.