Lunar International College

A proposal submitted to the department of business administration presented

in partial fulfilment of the requirements for the degree of masters of arts in
Business administration.

“The Effect of Job Stress on Employee Performance and Job

Satisfaction: A Case Study of Debub Global Bank”

Prepared by
By:- Roman Tekle …………………… GRS/0209/13

Advisor:- Zelalem G/tsadik (PhD)

March 23, 2022

Addis Ababa, Ethiopia
Abstract

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
Bank workers are among the group of workers under a great deal of stress due to many antecedents
of stress. Stress contributes to decreased organizational performance and employees’ job
satisfaction.

This study applies the questionnaire design method to analyze the relationship between job stress,
job satisfaction, and job performance, noting that few studies have comparatively examined these
variables Ethiopian Bank sector (Debub Global Bank).

This paper aims is to examine the impact of job-related stress on employee performance and job
satisfaction. A sample of 60 branches will be taken from 72 branches which are located only Addis
Ababa region to use for survey. Components of job stress namely: Lack of supervisor support; pay
and rewards, work-load, role ambiguity and work-life balance will examine in this study. The
objective of the study is to identify the stress-related problems of Debub Global bankers and
examine the relationship between job stress with employees’ performance and job satisfaction in
order to reduce the source of job stress. The results show that all these factors of stress cause great
stress in Debub Global Bank negatively impacts employees performance and job satisfaction.

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Table of Contents
Chapter One
1. Introductio n ………………………………………………………………………………………... 1
1.1. Background to the Study …………………………………………………………….. 1
1.2. Statemen t of the Problem …………………………………………………………… 4
1.3. Objective s of the Study ………………………………………………………………. 4
1.3.1. General Objective ……………………………………………………………… 4
1.3.2. Specific Objective ……………………………………………………………… 5
1.4. Research Questions …………………………………………………………………… 5
1.5. Research Hypothesis ..………………………………………………………………… 5
1.6. Significanc e of the Study …………………………………………………………….. 6
1.7. Scope of the Study ……………………………………………………………………. 6
1.8. Limitation of the study ………………………………………………………………. 6
Chapter Two
2. Introduction ……………………………………………………………………………………….. 7
2.1. Overview of Debub Global Bank ………..………………………………………….. 7
1.2.1. Goals of Communicatio n Policy ……………………………………………. 7
1.2.2. Guiding Principle s of Communicatio n ………………………………......... 7
12..3. Spokes Person …………………………………………………………………. 8
2.2. The nature of stress ……………………...…………………………………………… 8
2.3. Sign of job stress …………………………………………………………………....... 9
2.4. Cause of stress …………………………………………….……………..................... 10
2.5. The impact of job stress ………………………………………………...................... 10
2.5.1. Job performance ……………………………….…………………..………….. 10
2.5.2. Job satisfaction ……………………………….……………………………….. 11
2.5.3. The relationship between job performance and job satisfaction ……….. 12
2.6. The impact of work place stress on employees performance and job satisfaction 13
2.6.1. Pay and rewards .……………………………………………….…………....... 13
2.6.2. Supervisor support ………………………….…………………………........... 13
I
“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 2.6.3. Workload ……………..…………………….………………………….............. 13
2.6.4. Role ambiguity………..…………………….…………………………............. 14
2.6.5. Work life balance ……..…………………….…………………………........... 14
2.7. Theoretica l Framework……………………………………………………………... 14
2.8. Conceptual Framework …………………………………………………………….. 15

Chapter Three
3. Introductio n ……………………………………………………………………………............... 16
3.1. Research Design ………………………………………………………….................. 16
3.2. Population of the Study …………………………………………………................. 16
3.3. Sample and Sampling Technique s ……………………………………................. 16
3.4. Research approach ………..…………….………………………………................... 17
3.5. Method of Data Analysis ……………….………………………………..................17
3.6 Ethical Considerations ………………………………………………………………. 18
Section IV
4. Tim e and Budget schedule …...……………………………………………………................. 19
4.1. Time Schedule ……………………………………………………………................. 19
4.2. Budget Schedule …………………………………………………………….............. 20

II

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Chapter One
1. Introduction
1.1. Background of the study
Many different opinions from different authors will be utilized to provide a better theoretical
understanding of the nature of stress, its causes, and then the impact it will have on productivity.

Stress is the inherent psychologica l impact of external factors that go beyon d simple surface
pressure, meaning there are underlying factors. Robbins ( 2003) divided the potential sources of
pressure into:

1) Individual: family problems, economic problems, persona l qualities.

2) Organization s: missio n requirement s, role requirements, interpersona l issues,

organizationa l structure, leadership style.

3) The external environment: economic uncertaint y, political uncertaint y, and technologica

l uncertaint y. In order to confirm job stress factor s, we must understan d the impact of
job stress when striving for improvements. For organizations, job stress has significant
costs, including the replace ment of unsuitable staff, employee educatio n and trainin g,
sick pay, and death.

Stress is a widesprea d component that influence s employees aroun d the world. Stress factor had
become a developin g dilemma and caused ominou s impact s on work execution in association. Stress
is a universal component that influences employees worldwide becaus e of fundamenta l of life needs
in present day and costly condition s which will inferred to the decreas e of way of life, stress become
a recognizable componen t in associatio n and these days, the working environmen t and mood
become mor e confounded which carry mor e adverse consequences to the representative s contraste d
with positive effects Ong et al., (2018). Stress can be seen all the more exhaustively as, it is a
condition which happen s when one understand s the pressing factors on them, or the necessitie s of a
circumstance, are more extensi ve than their acknowledgme n t that they can dea l with Bashir &
Ramay (2010). Based on statement Halkos & Bousinakis (2010) Stress can be considered as an
undesirable enthusiastic circumstance that we experience when prerequisites (business related or
not) can't be offset our capacity to determine them. This outcomes in passionate changes as a
response to this risk. It originate s from the connectio n between an individua l and its current
circumstanc e and it show s up as pressing facto r that is abstract in light of the fact that simila r

1 stressor s can influence one individua l yet not anothe r. At the point when a representativ e can deal

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 with the pressin g factors of the work and the likelihoo d to finish a job is significan t then pressure
can fill in as a persuadin g factor. Job stress has negativ e impact on job performanc e Ong et al.,
(2018). Bashir & Ramay (2010). it means tress positively affects employee of any associatio n yet up
somewhat up to which a worke r can adapt to it, for the mos t part it surpasse s as far as possible and
have an advers e outcome on representative s. Based on the backgroun d of the study, The hypothese s
are formulate d as follows:

Any work has a potentia l for some sort of stressor, regardles s of whether the stresso r are inspirations
provokin g one to succeed or overpowe r one making brough t down confidence and harm one’s life
Bemana et al., (2013). Two significant issues that advanced associations are confronted with are
pressure and occupation fulfillment of their workers. Job stress is characterized as destructiv e
physical and passionate reactions that happe n when the requirement s of a task don't coordinat e with
the capacities, assets, or necessities of the specialist Patil & Meena (2013). Base d on the statement of
(Hans et al. , 2014, Riaz et al., 2016 , Trivellas et al., 2013) job stress has negativ e and significant
effect s on job satisfaction. That mean s job stres s can be depicted as the harming physical and feeling
of an individual that emerge when the desire s of the work don't rival the capacitie s, means, or needs
of the worke r. Occupation stres s can promp t terrible strength and even harm, it will be cause d job
satisfactio n. Specifically, work pressure identifie d with struggle and hefty responsibili ty end up bein
g altogether and contraril y connected with all work fulfillmen t measurements (actua l climate and
vocation opening s, the executives style and occupatio n advancement, and reward s and professional
stabilit y) Trivellas et al. , (2013). Considerin g the establishmen t of the assessment, the hypotheses
are framed as follows:

Another important dimension of job satisfaction is conduct of chief or leader whose undertaking is to
manage or lead the specialists. Boss' way of driving and his/her methodology of taking care of job
impacts the degree of representative fulfillment. Paying attention to workers' bits of knowledge and
ideas might be in the character of one manager yet for another person might be absolutely missing
Gupta & Garg, (2017). Amburgey (2005). the main kind concerns the comprehensive degree of job
satisfaction for an individual and is alluded to as worldwide occupation fulfillment. Worldwide
2 occupation fulfillment is found out by questioning people on the elements and inspirational powers
that prompted their perspective on work fulfillment. Job satisfaction is a proportion of positive
feelings and mentalities that individuals have about their positions. Individuals content with their
positions and intrigued by it, have an extraordinary inspiration in their work. The previous research
(Bakotić, 2016; Torlak & Kuzey, 2019; A. Khan et al., 2014; Crossman & Abou-Zaki, 2003; Platis
et al., 2015), found that job satisfaction has positively affect employee performance, it means

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 associations with more fulfilled workers would in general be more compelling than associations with
disappointed representatives.

The great employee is the person who know to deal with and achieve their undertakings on schedule
with required quality in like manner. Past examinations saw two hypothesis of approaches on work
execution Ong et al., (2018). Employee performance is defined as an individual's ability to complete
work in various situations A. H. Khan et al., (2012). Sundararajan et al., (2020). The factors that
affect employee performance are quality of work, attendance and punctuality, initiative, ability, and
communication. Employee performance is related to productivity as well as quantity of output,
efficiency, and effectiveness in completing work by company standards Siengthai & Pila-Ngarm
(2016).

There is evidenc e to suggest that there are way s in which an organizatio n can help to reduce instance
s of job stress, or better manag e the issue when it arise s. To reduce or avoid job stress, Fako, (2010).
point s to the importance of role clarit y, a reasonable workloa d, the need for employees to maintai n a
healthy diet, and the need to avoi d regularly puttin g in extra hours at work. Effective people
management, good two-way communication between employers and employee s, suitable workin g
environments, and effectiv e work organizatio n are just some of the factor s which can have an impac t
Mbadou and Mbohwa (2013). However, there is the need to examine critically, the nature and effect
of job stress in Ethiopian Banking Sectors (Debub Global Bank) before suggestin g ways by which
the managemen t could deal with it and this is the mai n thing this study is addressing.

1.2 Statements of the problem

3
Many employers complain about their jobs, their bosses, their subordinates. So is that occasional
outburst that releases pressure to that extend that allow one to calm down and get back to work. The
stress at workplaces is hovering from many years. But management did not take it up seriously and
considered the solution as soft stuff. (Ira S. Wolfe) Stress happens when one realizes the strain on
them. Even sometimes the requirements of a situation are wider than their recognition that they can
handle, if these requirements are huge and continue for a longer period of time without any break,
mental, physical or behavior problems may arise, (Health &Safety Executive UK). Job stress was
defined as those work uniqueness which pose as threats to an employee. In other terminology job
stress occurs as a result of a poor person-environment fit. Job uniqueness which causes stress was
conceptualized to consist of five magnitudes. One of the magnitudes, physical environment, was not

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 integrated in the present study because it was considered unsuitable in entrepreneurial or managerial
work environment (McLean 1974; Osipow and Spokane 1983).

1.3 Objectives of the Study

The basic aims an d objectives of this researc h are to examin e the impact of job stress on employe e
performanc e and job satisfaction among Debub Global bankers.

Many factors affect an employee’s job performance a job satisfaction one significant factor is stress.
Individual s are well adapted to cop e with short-term exposur e to pressure this can ofte n be positive -
but there will be greate r difficulty in copin g with long-time intensiv e pressure. A main point is to
determin e that individual s will react differently to pressure in many situation s and at different stages
in their workin g lives. Based on the previou s, it is valuable to conduc t research of this natur e to
expose specific fact s about stress effec t on Debub Global Bankers who by the natur e of their jobs
have to manage and cope with stress daily in these days.

1.3.1. General objective

The basic aims an d objectives of the curren t research are to examin e the impact of stress on employe
e performance and job satisfaction.

1.3.2. The specifi c objectives of the study are as follow s:

4
1. To examine the effect of stres s on employees’ performance in Debub Global Bank.
2. To examine the effect of stres s on employees’ job satisfaction in Debub Global Bank.
3. To identify the natur e of job stress faced by Debub Global Bankers.
4. To find out the strategie s for dealing with job stress amon g Debub Global bankers.
5. Make recommendation s on appropriate ways to proactivel y and effectively manage stress in the
workplace.

1.4 Researc h Questions

The research questions that would guide this study are stated below:
1. What is the effect of stress on employees’ performanc e in Debub Global Bank?
2. What is the effect of stress on employees’ job satisfaction in Debub Global Bank?
3. What is the nature of job stress faced by Debub Global Bank?
4. What are the factor s that are responsibl e for job stress among Debub Global Bankers?

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 1.5 Researc h Hypotheses

To enabl e, the researche r will try to determine the relationshi p between the variables involve d in this
study to suggest the following hypothesis:

Hypothesis One
Ho: Job stress does not affect Debub Global bankers’ performance.
HA: Job stress does affect Debub Global bankers’ performance.
Hypothesis Two
Ho: Job stress does not affect Debub Global bankers’ job satisfaction.
HA: Job stress does affect Debub Global bankers’ job satisfaction.
Hypothesis Three
Ho: stress does not have a significant negative impact on performance and job satisfaction of Debub
Global Bankers.

HA: stress does have a significant negative impact on performance and job satisfaction of Debub
Global Bankers.

5 1.6 Significanc e of the Study

The employer s and/or managemen t cannot ignor e the influenc e of job stress in achieving the
organizationa l set goals. Because, the interest of every organizationa l employer is optimum
productivit y. This can only be successfu l when the employees work hard and add extr a value to the
organizatio n at their best. But one majo r factor that has been identifie d in the literature and practic e
that significantl y affects the performanc e and job satisfaction of employees is job-related stress. The
focus of this stud y is to understand how job stres s affects Debub Global Bank workers in terms of
qualit y performance and job satisfaction with productivit y. And also to identify the factors that are
responsibl e for job stress. With that knowledg e, it may be possible to adjus t these factors to improve
the performanc e and job satisfaction of the employees as wel l as that of the organization. The
application of the finding s of this study is mainl y for the designed formulatio n and implementatio n
of the most effective strategie s for dealing with job stress in Debub Global Bank. However, it is
hoped tha t the key ideas can be transporte d to any workplace wishin g to increase or enhance worker
s’ productivity and job satisfaction.

1.7 Scope of the Stud y

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 The study is limited only Head Office and Branch located at Addis Ababa region. Addis Ababa was
chosen geographically. It could have been best if the research could have included all branches from
out of Addis Ababa region.

This study is an attemp t to provide employers and employee s with a framewor k of measures that
will identif y and reduce problems of job stress and help to manage them when they do arise. Althoug
h stress is associate d with several factor s, the scope of this stud y will be limited to only work-relate d
stress.

The research is planned to be elaborate to gathe r diversified opinion s on the subject matter and to
allo w for precision in the identificatio n of job-related stress-causin g factors for every individual
respondent.

1.8 Limitations of the Study

The limitation of the study mainly includes insufficient upgraded literature in the area of Ethiopian
bank sector, time and transportation budget to look over all branches out of Addis Ababa.

Chapter Two

6 Literature Review & Theoretical Framework

2. Introduction
This section reviewed overview of Debub Global Bank and relevant literature concerning the
study. Issues considere d in this section will include job stress, job performanc e and job satisfaction
the role of manager s and stress control, stress managemen t at the workplac e, and the factors of job
stress.

2.1 Overview of Debub Global Bank.

Debub Global Bank S.C. started its Bankin g Operation in August 2012. Today, it has a network of
132 branches. Considerin g Bank’s multinational stature and varied stakeholders. Bank pursues an
s

integrated communication framework to engage its stakeholders, public, and marke t to help the bank
realiz e its overall goals as described in its vision and missio n statements.

2.1.1. Goals of Communication Policy

The goals of the communicatio n policy of the Bank are:- Pursuing a stron g corporate reputation
through high transparency and consistency in communication with stakeholders. Timely

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 communicatio n with stakeholder s – with clarity, coherence, and credibility. Distributin g information
through the officia l website of the Bank on a real-time basis.

2.1.2. Guiding Principle s of Communication

From a communication perspective, the Bank includes as its stakeholders the Government, Investors,
Customers, Employees, Suppliers / Service providers, Trade associations, Civil Society Groups,
Public, and Societ y at large. Bank aim s to inform, persuade and /or involve all s takeholders in the
activitie s and growth of the Bank through sustained, consistent and relevan t messages using a
judiciou s mix of both external and interna l communication tools. The guiding principle s of the
Communication Policy of Debub Global Bank S.C in the context of its goals are transparency,
comprehensiveness, relevance, and timelines s to make the stakeholder s aware of the Bank’s various
activities, products & services, financial market, regulator y & compliance matters relatin g to the
Bank.

The content of communicatio n in the Bank comprises product information, customer service
7
initiative s of the Bank, issues relating to customer service, market-related information, and matter s
relating to regulatory compliance. Communication is primarily focused on issue s of importance to
Debub Global Bank S.C in particula r and banking in general.

Bank endeavor s to communicate with its diver’s stakeholders preferably in their language, and
certainl y in English.

Bank endeavor s to place all relevant informatio n in the public domai n to discourage individua l
seeking of informatio n.

2.1.3. Spokes Person

 The Board of Director & President is the spoke person for the Bank.
 Additionally, depending upon the issues/events the Board of Directors and President
may authorize any of them.
 Director Marketing & RM may coordinate with the president to interface with media
give press releases for product launches, new initiatives, etc. based on published facts
with restrictions on any type of futuristic issues/views.
 The Bank Directors may speak on behalf of the Bank on published data about the
respective verticals. In response to queries from media (Print/electronic) on ongoing

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 projects by various media agencies. No comment/observations to be given on futuristic
issues/views.
 Bank’s City Branches & Outline Branches would be speaking only within the scope of
published data of their respective branches. No comments are to be made on the
futuristic issues/views.

2.2. The nature of stress

Stress is a holistic transactio n between the individual, a stresso r and the environment, resultin g in a
stress respons e. Some jobs produce more stres s than others, e.g., those involvin g rotating shifts
work, machin e paced tasks, routine and repetitiv e work, or hazardous environmen t among others
8 (Halkos, & Bousinakis, 2010). The. Workers’ vulnerabilit y to stress is a function of both interna l
(organization) and externa l (non-work) stressor s. Two major factors help determin e how stress will
affec t employee performance differently across simila r jobs, these factors are; stres s threshold and
personalit y types. Stress threshold is an internal factor, some people have high threshold while other
s have low threshold. A perso n with low threshol d performance is affecte d even by a slight change
or disruption s in their work routin e and vice versa (Ahmed, Hussain, Farooq, & Ahmed, 2011).
Another factor that determines stress vulnerability on individual is their personality types. There are
two types of personality; Type A and Type B. Type ‘A’ people are aggressiv e and competitiv e, set
high standard s, are impatient with themselve s and others, and thriv e under constant time pressure s.
They make excessive demand s on themselves even in recreatio n and leisure. Becaus e of the constant
stres s that they feel, they are more pron e to physical ailment s related to stress such as heart attack s
(Badar, 2011). Types ‘B’ are more relaxed and easy goin g. They accept situations and work withi n
them rather than fight them competitivel y. They are especiall y relaxed regardin g time pressures, so
are less prone to have problems associated with stress. Still they can be high productive workers who
meet schedule s and expectations; they simpl y obtain result s in a different manner (Addison, &
Yankyera, 2015).

2.3. Sign of job stress

Signs of stres s may evident in physical, psychologica l and behavioural symptoms. The physical
symptom s can be life threatening stres s related illnesse s, e.g. blood pressure and heart disorders,
insomnia, constant fatigue, headaches, skin rashes, digestive disorders, ulcer, loss of appetite,
overeating, marke d decline in personal appearance, quick and fiery tempe r, changes in eating habits
and general withdrawa l from social activities (Badar, 2011). Psychologica l include general
“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 irritability, acute anxiet y attacks, depression, and inability to concentrat e on the simples t of routine
tasks. Other common symptoms include a person becoming unnecessarily over emotional,
aggressive in conflict situation s, poor concentratio n, difficult y in rememberi ng and inabilit y to make
decisions. Behavioural symptoms include sleeplessnes s, high turnove r rate, work relate d accidents
changes in eating habits, many people indulge in excess addictions like smoking, drinking, occasiona
l drinker becomes alcohol ic and smoker s become chai n smokers. Stress may also reveal in reduce d
performance and job satisfactio n (Badar, 2011).

2.4. Cause of stress

Accordin g to Blickle, Wendel, & Ferris (2010). there are six broad source s of stress that is external
environmen t, organizationa l factors, job characteristic s, work relationships, domestic factor s and
personal factors. Under externa l environmen t, source s of stress include economic situation s,
competitiveness, arriva l of new technolog y and political changes. The organizationa l factors that
cause stress include organizationa l structure and culture, management styles and career
development. In the context of Job characteristics, the causes of stress include intrinsi c job demands
i.e. if the natur e of the job is repetitive, insufficient challenge or excessive job for one person, and
degree of autonomy (insufficien t to meet either the demand s of the job and or expectatio n of job
holder). Other s are role conflict that is organizatio n expectations leads to confusion or does not meet
job holders’ expectation s and contractual terms. Work relationship s were also identifi ed as a cause
of stress. This includes relationshi p with the supervisor s and colleague s. Leader may find it stressful
to deal with demand s of their own staf f. Others may find it difficul t to deal with demands customers,
suppliers and other outsider especially those dealin g with customer complaint s all day long (Badar,
2011). He also identifie d domestic issues such as home life and othe r outside life as cause s of stress.
Persona l factor s such as individua l perception s of job or role, personalit y type, ability for one to
adapt to chang e, motivation and ones level of toleranc e for ambiguit y were also identified to cause
stress.

2.5 The impact of job stress

2.5.1 job performance

Performance depends on people's motivatio n and ability (Guan et al., 2014). When individual s or
group s do a job, the quanti ty and quality that are obtain e d from their work are considere d as job
performance (Dinc et al., 2018; Ding et al., 2012). Some reports indicate that in organizationa l
psychology and huma n resources management, the most critical parameter and content is job

10 “The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 performance (Fisher, 2001; Springer, 2011; Yustina & Valerina, 2018). Employees' job performanc e
in organizations is reviewe d in a specific and standar d time and includes their specifi c and discrete
behavior s (Motowidlo & Kell, 2012). According to a stud y by Ghosh and Sahne y (2010). which has
studied junior and middle-level managers in the Indian public sector, employee s who are engaged in
a professi on outside of their fiel d of study or whose work has change d without receivi ng the
necessary training have low er performance (Ghosh & Sahney, 2010).

In another study, Piansoongner n (2013). described that job performan ce in the Thai securities industr
y is influenced by the personal knowledge, skil ls, and abilities of employ ees (Piansoongnern, 2013).
Chen and Silverthorn e (2008). stated that there are three method s to evaluate a person's job
performan ce. The first techniqu e is identifying the outputs of the individuals' work and activity (such
as sales amounts) and ranking them. The secon d way is ranking individual s by their director or
supervisor regarding their efficienc y. The third way is that individuals evaluate themselve s. It has
been suggested that the third way is the best and makes employee s focus more on their goals (J.
Chen & Silverthorne, 2008; Yustina & Valerina, 2018). Performance contains two importan t and
significant point s; the first point is that the individua ls' performanc e is never constan t and varies
depending on the environmenta l conditions. The second point is that performanc e is the behavior of
the individual s, not the works the y have to do. In other words, performanc e is the behavior that is
under the person's control (Campbell et al., 1993; Jain, 2016).

2.5.2 Job Satisfaction

People, who are satisfied and happ y with their job, perform bette r and those who are not, perform
poorly (Bhatti et al., 2019). Job satisfactio n involves emotional parameters such as pleasure,
happiness, passion, enthusiasm, and love (Jain, 2016). Job satisfaction is one of the job behavior s
and it is a sense of satisfaction which is resulte d from work experiences (Oluwatayo &
Adetoro, 2020). Giri and Pavan Kumar (2010) defined job satisfaction as positive and affective
attitudes toward a job (Giri & Pavan Kumar, 2010). According to a study on 400 Thai investors by
Piansoongnern and Anurit (2007). employee job satisfactio n is one of the significan t prerequisites
for custome r satisfaction (Piansoongnern & Anurit, 2007).
11
Lin et al. (2014). and Bhatti et al. (2019). have stated that each person's attributes are an important
paramete r in evaluating job satisfaction (Bhatti et al., 2019; Lin et al., 2014). Conducted research
showed that when officials and employer s treat unfairly in cases such as performance reportin g,
ranking, and salary, it can have detrimental impacts on job satisfaction (Adams, 1965; Torlak &

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Kuzey, 2019). It may come as a surpris e, but existing studie s show that job satisfaction also affects
people's health. Significantly, people who are satisfied with their job are healthier than those who are
not (Jain, 2016). Ghosh and Sahney (2010). believed that job satisfaction is one of the aspects of
professional perspectiv e and can be effective in retaining manageria l staff (Ghosh & Sahney, 2010).
According to results of a study by Shahnawaz Adil (2015). on 90 organizations from 15
manufacturin g sectors in Karachi, employe e job satisfaction is reflected in their behavior and can
also improve the quality of production in manufacturin g units (Shahnawaz Adil, 2015).

2.5.3 The Relationshi p Between Job Performanc e and Job Satisfaction

An employee's attitude toward his/her job affect s his/her behavioral status in the workplace and job
performan ce is the most important part of these be haviors (Guan et al., 2014). Studie s show that a
satisfied employee prefers to spen d all of his/her work time in the workplac e, not to be late, and also
to have more accurac y, focus, and effort on his/her work to provide better quality (Sánchez-
Beaskoetxea & Coca García, 2015; Yuen et al., 2018). Mount et al. (2006). in a study with the
statistical population of employees in custome r service positions in 10 fast food s and by using pat h
analys is, reported that job satisfaction has a direct impact on job performance (Mount et al., 2006;
Oh et al., 2014). Mitta l and Jain (2012). claimed in their qualitative research that according to
existing research in the human resource management field; there is a direct relationship between
employee’s job satisfaction and the performance of the organization. Satisfied employee s have a
large impact on organizationa l performance (Mittal & Jain, 2012).

2.6. Impact of Work Place Stres s on Employee Performance & job satisfaction

The workplace stress variables are independent variables like pay and reward, supervisor support,
workload, role ambiguity and work-life balance. While the employee performance, the dependent
12 variables are service quality and job accomplishment in the study.

2.6.1. Pay and Rewards

Pay and reward s are the financial and non-financia l benefits that are provide d by the organizatio n.
Ibrar and Khan (2015). elaborated that reward syste m are tools used to increase employee
performanc e. Shah et al. (2011). found positive relation between monetary rewar d and performan ce.
Hameed, Ramzan, Zubair, Ali and Arslan (2014). urged that salary, rewards, indirect compensatio n
have positive influenc e on employee performance. Gohari, Kamkar, Hosseinipour and Zohoori
(2013). found that employees perform bette r when they feel that the hard work is rewarde d. Ngwa,

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Adeleke, Agbaeze, Ghasi and Imhanrenialena (2019). found that reward s have significant positiv e
impact on employee performanc e.

2.6.2. Supervisor Support

Supervisor suppor t is the contribution leaders make in order to suppor t their employees. Tantawy,
Abbas and Ibrahim (2016). conclude d that staff support have positiv e impacts on service quality.
Imtia z and Ahmad (2009). found, the behavio r of supervisor is the cause of employee’s low
performance and high stress. Zafar, Ali, Hameed, Ilyas and Younas (2015). reveale d that there is
positive moderate relationshi p between job stress and employee performance.

2.6.3. Workload

Vijayan (2017). defined that workload is the resul t of time pressure, lack of appropriate help,
inadequa te number of resources. KC (2000). found that, work load has negative impacts on employee
S

performan ce which leads to decline in service qualit y. Bruggen (2015). conclude d that the
relationshi p between workload and performanc e is an inverted U-shape which implie s that it
increases till certai n point than it decreases.

2.6.4 Role Ambiguit y

13
Tang and Chang (2010). elaborate d that unclear informatio n for employee about the kind of
responsibilit y and job one needs to perform in organizatio n is known as role ambiguity. Ismail and
Teck-Hong (2011). found that work related stress negatively affects employee’s performance. Luria,
Yagil and Gal (2014). found negative impact of role ambiguity and role conflict in terms of stress
employee performance.

2.6.5. Work-life Balance

Ali, Kundi, Quresh i and Akhtar (2014). defined the term work-life balance as the way of proper
management between the work and famil y life. Sirgy, Efraty, Siegel and Lee (2001) found that
qualit y of work life has crucial impacts on employees’ behavioral reactions like job satisfaction, job
efforts, job performanc e and intention to leave the organization. Sigroha, Gidhar, and Sangwan
(2011). found that successful work-life balance has positive impacts on individuals as well as
organizations. Jahedi and Reyshahri (2015). found positive relationship between quality of work-life
and job involvement.

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Accordin g to Johari et al. (2018). someone who has good potentia l want s to work in a workplace or
organization that applies the work-life balance concept and has a reputation as the employe r of
choice. A balance betwee n time and effort to work and personal activitie s that devoted by someone
is to achieve harmon y in life-related to work-life balance. In Lazar et al. (2010). work-life balance is
the achievemen t for meaningful enjoymen t in life, a better work-life balance is whe n each works
smarte r to complete more work in less time.

2.7. Theoretical Framewor k

Theories help us to understan d the underlying proces s and, on that basis, choos e an effective cours e
of action according to a coheren t group of assumption s put forth to explain the relationshi p between
tw o or more observabl e fact s. Valid theories enabl e us in certain situation s. It is a truism that no
matte r the degree of the gras p of a principle, the histo ry, and theorie s of any field helps us to appl y
them to actual case s. The t heories relevan t in the study of stres s and its effect s on job performanc e
and job satisfaction include workload, pay and reward s, supervisor support role ambigui ty, and work
life balance.

2.8. Conceptual Framework.

14
The conceptua l framework to be used in this study discusse s the stress factor that can effect
employee performance and job satisfacti on.

Independent variables Dependent variables

Job Stress
Pay and rewards
Job Performance

Supervisor support
Work load
Role ambiguity Job Satisfaction
Work life balance

The diagram above shows that performan ce and job satisfaction are affected by pay and rewards
supervis or support, work load, role ambigui ty and work life bal ance. This framework shows the
relationship between employees’ performance and job satisfaction with the factors that influenc e to
their productivi ty.

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
15

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Chapter Three
Research Methodology
3. Introduction
This chapter explains the procedures that will following by the researcher to define information and
facts finding. Such procedures are further structured under the following sub-heading s. 1. Research
design, 2. Population of the study, 3. Sample size and sampling, 4. Research approach, 5. Method of
data analysis and 6. Ethical consideration.

3.1. Research Desig n

This study will adop t the descriptive survey researc h design. Kerlinger (1986) define d the
descriptive type of researc h as a systematic empiric al inquiry in which the researcher does not have
direct contro l of independent variables becaus e their manifestation s have already occurred or they
are inherentl y not possible to be manipulated. Putting it clearly, Weiersman (1991). disclosed that in
descriptiv e research, the researche r begins with the observation of a dependent variable and follow
by a retrospective study of possible relationships and effects. In such a study, inferences about
relationships among variables are made withou t direct interaction from connecte d variables of
independen t and dependent variables.

In this regard, no attempt is made to manipulate the variables under study, rather deduction s are
made based on evidenc e that will be collected. This typ e of researc h will be adopted becaus e the
manifestation s of these variable s have alread y occurred.

3.2. Population of the study

In this study the target population is all 72 branches only in Addis Ababa and the focus of this study
is the area on accountants, customer service officers, cashiers and juniors which are mandatory job
position to run one branch operations network.

3.3. Sample and Samplin g Techniques

16

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 The sample size was determined by the statistical formula. A total population (N) 72 branches are
currently working in study population, at a confidence level of 95%, the sample size for the analysis
is 60.
n = N/ (1+ N x e2)
n = 72/ (1+72 *(0.05)2)
n = 72/1.2016 = 60
Where N = population, n = sample size and e = level of precision
In order to include all grades of branches, stratified random sampling technique was implemented to
the study. Accordingly, these are grade I managers, grade II managers and grade III managers branch
operations are selected proportionally randomly from these three grade positions.

3.3. Table: The Proportional Sample Size by rate in the study population

No of Proportionate Sample size of

Sr no Strata
population Ratio each
1 Grade I Branch Manager 34
60 ( )
34
72
28

2 Grade II Branch Manager 20

60 ( )
20
72
17

3 Grade III Branch Manager 18

60 ( )
18
72
15

Total 72 60

According to the bank s quarter report as of December, 2021 Debub Global Bank has 132 branche s
’

throughou t the countr y. However study will only identify the populatio n from Addis Ababa
branches using simple random sampling technique due to limitation of gatherin g data from entire
branche s of regional outlets. And the selected respondents are selected based on purposive sampling
technique from variety job title like, Juniors, customer service officers, cashers and accountants (to
examine job satisfaction); and branch managers (to examine employees performance) from selected
branches.

3.4. Research Approach

The stud y will have quantitativ e research approaches. Quantitativ e research is the process of
collectin g and analyzing numerica l data that can be used to find patterns and averages, make
predictions, test causal relationship s, and generalize results to wider population s.

To meet the objectiv e of the study and answer the researc h question s, both descriptiv e and
explanatory research designs are employed. An Explanatory and Descriptive research design is
17
“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 deeper in the sense that it describe s phenomena and attempt s to explain why behavio r is the way it
is. In other word s, it enables the researcher to understan d the very nature of what the researche r is
actually looking at.

This type of research aims at, for instance, explaining social relations or events, advancing knowledg
e about the structur e, process and nature of socia l events, linking factors and element s of issues into
genera l statements and building, testing or revising a study variabl e. (Creswell et al, 2012).
Descriptiv e design was applie d for demographic and other related variables and Explanatory design
is used for the purpose of determining the relationshi p among the dependen t and independent
variable s.

3.5. Method of Data Analysis

The result (data) obtaine d from this research will be groupe d according to specifi c problem areas of
the stud y, the method employe d in the analysi s of the dat a will be based on the result to be obtaine d
from the analysis of the data. Fit for purpos e statistic al tools which consist of percentil e regression
analysi s and chi-squar e will employ in data analysis. The research er will summariz e the frequenc y
of responses, and also as a basi s for either acceptanc e or rejection of the research question s and
hypotheses being tested.

3.6. Ethical Considerations

In this study to focus highly on ethical considerations, the samples selected will be asked to fill out
questionnaires keep secrecy while informing. This anonymity is the outmost high priority and have
the option of not responding to the questionnaires provided to them. By describing the title of the
paper and its objective, all the response they give are highly protected and the analyzed data are used
only for educational purposes.

In order to get accurate and truthful information, giving freedom without any pressure while keeping
the respondents information confidential is one way of ethical consideration.

Appendix
4. Time and budget schedule
18 4.1 Time schedule

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 The total study period of the study will be six months commencing from the date of approval by the
principal investigator.
No. Academic Activity Deadlines Remark
1 Thesis title submission and approval December 11 – January 10, 2022 Approved by the
Academic
Commission
2 Submit Concept Paper to Advisors January 11, 2022 – January 16, To be submitted to
2022 the Advisor
3 Preparation of First Proposal January 12, 2022 – March 13, 2022 To be submitted to
the Advisor
4 Submission of the FINAL draft proposal in March 23, 2022 Requires approval
softcopy via CD or Flash Disk to Department of the advisor
through Advisor
5 Proposal Defense March ______, 2022 Organized by the
Department Office
7 Data Collection April 11,2022 – May 11, 2022 In consultation
with the advisor
8 Data screening, encoding, entry, generating May 12, 2022 – June 12, 2022 In consultation
preliminary analysis and interpretation with the advisor
9 Submission of first thesis draft to advisors June 13, 2022 – June 15, 2022 In consultation
with the advisor
10 Submission of final draft thesis in softcopy via June 16, 2022 Requires approval
CD or Flash disk to Department (After of the advisor
Plagiarism Check) through Advisor
11 Final Thesis Defense Workshop June 20, 2022 Organized by the
department office
12 Submission of Final thesis after incorporating June 30, 2022 Requires approval
defense comments, in Four Copies with book of the advisor,
form binding, Students are also expected to internal examiner,
submit a soft copy of their thesis and do file in and external
CD examiners

4.2 Budget Schedule

19
The total budget of the study is 10,605 birr. Detailed activities of the budget are presented below.

Budget heading Unit Quantity Cost Total cost(birr)

Per diem for researchers day 2 500 1000

Per diem for data collector day 10 300 3000

Stationery and equipment

“The Effect of Job Stress on Employee Performance and Job Satisfaction: A Case Study of Debub
Global Bank”
 Photo copy paper ream 2 500 1000

pen Pcs. 7 15 105

Flash disk Pcs. 1 500 500

Miscellaneous birr 2000 2000

Transportation Ride/taxi 5000 5000

Contingency 2000 2000

GRAND TOTAL 10,605

20

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Global Bank”
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