UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business -------------------------------- VO XUAN MINH OCCUPATIONAL STRESS AND ITS EFFECTS ON EMPOLYEES’ PERFORMANCE ID: 22120094 MASTER OF BUSINESS (Honours) SUPERVISOR: DR. TRAN HA MINH QUAN Ho Chi Minh City – Year 2014 ACKNOWLEDGEMENTS This thesis could not be accomplished without the help, advise, support, guidance and encouragement of many people. I wish to express my sincere gratitude to my advisor, Dr. Tran Ha Minh Quan, for his clear and careful direction, guidance and correction to my thesis, especially for his enthusiasm in answering reminding, help and support.
Secondly, I would like to thank my dear colleagues, friend and classmates for their invaluable advice, help, encouragement and support during the time I was doing this thesis. ABSTRACT Vietnam is a developing country and has the emerging market, so the employees' performance in Vietnamese companies plays a significant role to increase the competitive advantages. However, so far the study for employees' performance in Vietnamese companies has not yet been thoroughly conducted. This research is carried out with the objectives to identify the measurement scale of employees‟ performance, identify the occupational stress factors that impact on employees‟ performance and measure the strength of relationship between occupational stress and employees‟ performance in the Vietnamese companies.
Survey and data analysis used to collect the answer for the survey on various employees in the South organizational factors Vietnam with the sample size of 250 for data analysis. Number of statistical analysis techniques are used to analyze the data collected via SPSS program. Factor analysis results in the identification of factors having significant impact to employees' performance, and the extraction of five factor groups named as Time Pressure, Work Colleges , Job Clarity, Support at Work and Job Security. Analysis proved that three groups have statistically significant influence to the employees' performance in Vietnamese companies, which Job Clarity has the highest impact.
The research results can be used as a reference for the team leaders, managers, supervisors in Vietnamese companies to enhance and better the employees' performance in the future. TABLE OF CONTENTS ACKNOWLEDGEMENTS…………………………………………………………………………………….ii TABLE OF CONTENTS……………………………………………………………….…iii LIST OF TABLE…………………………………………………………………………….v LIST OF FIGURES…………………………………………………………………….vi CHAPTER 1: INTRODUCTION.1 Background to the study .2 Statement of the problem.3 Purpose of the study.4 Scope of the study .5 Operational definition of terms .6 Structure of the research………………………………………………………….……3 CHAPTER 2: LITERATURE REVIEW .1 The concept and phenomenon …………………………………………………….2 Definitions of stress……………………………………………………………….4 Theories of Occupational stress…………………………………………………….5 Signs and symptoms of occupational stress……………………………………….6 Cause of occupational stress……………………………………………………….1 Performance in organizational………………………………………………….3 Measuring job performance……………………………………………………….4 Options for measureing job performance objectively……………………….5 Relationship between occupational stress and employee‟s performance……….4 Data Analysis Method………….2 Validity measure by EFA (Exploratory Factor Analysis).3 Multiple regression analysis ……….5 Summary…………………………………………………………………………28 CHAPTER 4: ANALYSIS OF DATA.1 Brief description of subjects.3 Patterns of data for each research question…………….1 Preliminary evaluation scale with Cronbach‟s Alpha…….2 Scale testing by using Exploratory Factor Analysis (EFA)……………………. IMPLICATIONS AND CONCLUSIONS.4 Limitations and recommend for further research.52 LIST OF TABLES Table 3.2: Reliability Statistic of Time Pressure.3: Reliability Statistics of Relationship with Colleges.4: Reliability Statistics of Job Clarity.5: Reliability Statistics of Support at work.6: Reliability Statistics of Job Security………….7: Reliability Statistics of Employee Performance.8: Exploratory Factor Analysis for Independent variables.9: Exploratory Factor Analysis for Dependent variables.42 LIST OF FIGURES Figure 2.1: Hunter‟s job performance scheme .1: Result of refined research model .43 CHAPTER 1 INTRODUCTION This chapter presents the background to the study, statement of the problem, purpose of the study, objectives of the study, scope of the study and operational definition of the terms.1 Background to the study Nowadays, stress has become a major problem for employers particularly in developing nations where the employer doesn‟t realize the impact of stress on employee performance which ultimately results in critical managerial dilemmas (Subha and Shakil, 2010). Giga & Hoel (2003) explain that high rates of mergers, acquisitions, increasing economic interdependence among countries due to globalization, technological development, and restructuring have changed the organizational work over the last few decades resulting in time pressure, excessive work demand, relationship with colleges, job clarity and job security which are causing stress.