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Impact of Stress on Performance and Management
Report submitted in partial fulfilment of the requirementfor the award of the degree of PGDM
Submitted By:
KANCHAN SHARMA
PGDM Semester II
Under the Guidance of:
Ms. Shipra Singh
Faculty, DSPSR
Delhi School of Professional Studies and Research
(Approved by AICTE, Ministry of HRD, Govt. of India, New Delhi, India)
Enroll. No. 073/DSPSR/PGDM-FT/10
MARCH,2011
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LIST OF CONTENTS
S.NO. TOPIC PAGE
NO.
1. Acknowledgement I
2. Declaration II
3. Introduction
4. Objective 1
5. Introduction 2-4
6. Literature Review 5
7. Research Methodology 6
8. Data analysis 7-22
9. Findings 23
10. Conclusion 24
11. Recommendations 25
12. Limitations 26
13. References 27
13. Questionnaire 28-32
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Acknowledgement
This writing of this dissertation has been one of the most significant academic challenges I
have ever had to face. This is to acknowledge all those people who have helped me in
preparing this project. I would like to thank that institute for providing me the opportunity toconduct the study. Without the support, patience and guidance of my faculty Ms. Shipra
Singh and my other faculties and friends this study would not have been completed. It is to
them that I owe my deepest gratitude.
KANCHAN SHARMA
i
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Declaration
This is to certify that Report entitled “Impact of Stress on Performance and Management”
which is submitted by me in partial fulfilment of the requirement for the award of
PGDM to Delhi School of Professional Studies and Research, Delhi comprises only my
original work and has not been submitted in part or full for any other degree or diploma
of any university. If any material has been taken from an external source of information
then it has been properly cited in text and duly acknowledged under references.
KANCHAN SHARMA
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ii
Certificate
This is to certify that the minor research project titled “Impact of Stress on Performance
and Management” is an academic work done by “KANCHAN SHARMA” submitted in the
partial fulfilment of the requirement for the award of “Post graduate Diploma in
Management” from “Delhi school of Professional Studies and Research” under my
guidance & direction. To the best of my knowledge and belief the data & information
presented by him in the project has not been submitted elsewhere.
Name of the Faculty Guide
Ms. Shipra Singh
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iii
OBJECTIVE
Organizations have continued to grapple with the questions concerning the stress in the work place and the appropriate organizational response.
A great many people experience unacceptable level of stress. It can stem from events in their
personal lives or at work. The aim of this study is to find out the causes of occupational stress
within the organization and the implication on performance, job satisfaction and intention to
leave and absenteeism. The research methodology is based on primary and secondary data
both and follows the exploratory and descriptive research. The data has been collected by
questionnaires and some secondary data from the literature available.
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1
INTRODUCTION
Creating a high performance organization is a popular theme in the training
and development field. To survive in these competitive times, companies can'tafford anything less. Creating a high performance organization requires
understanding what factors influence performance. One of the most significant
factors is stress. Today, many organizations and employees are experiencing
the effects of stress on work performance. The effects of stress can be either
positive or negative. What is perceived as positive stress by one person may
be perceived as negative stress by another, since everyone perceives situations
differently.
According to Barden (2001), negative stress is becoming a major illness in the
work environment, and it can debilitate employees and be costly to employers.
Managers need to identify those suffering from negative stress and implement
programs as a defense against stress. These programs may reduce the impact
stress has on employees' work performance.
Research shows that stress interferes with human intellectual, emotional, and
interpersonal functioning. In fact, nearly every popular training and
organizational development initiative is directly compromised by the
intellectual, emotional, and interpersonal consequences of stress.
The four of the primary factors are:
• The person’s perception of the situation
• The person’s past experience
• The presence or absence of social support• Individual differences with regard to stress reaction
Initiatives like The Learning Organization, Process Re-engineering, Diversity
Training, Collaborative Team Work, and The High Performance Organization
are all impacted by the way people are affected by stress.
“ANY CORPORATION OR INDIVIDUAL WILL BENEFIT FROM
LEARNING ABOUT THE EFFECTS OF STRESS ON PRODUCTIVITY
AND WAYS TO MANAGE STRESS TO IMPROVE PRODUCTIVIT AND
GENERALLY IMPROVE THE QUALITY OF LIFE.”
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Reasons of Stress: An individual faces stress mainly because of four reasons:
1. Personal factors , which includes Emotional conflicts (Lack of
freedom to express, Lack of attention and Lack of confidence),
Responsibilities, Lack of support, Time management, and Communication
problems, Attitude.
2. Social factors , which includes Rigid social norms and customs,
Managing the social relations, Acceptance by others, lack of positive attitude
by colleagues, lack of support from others, and lack of Positive environment.
3. Organizational factors , which include workload, role conflicts,
uncertainty, relation at work, career prospects, organizational climate, lack of cooperation, promotion, training, counseling and appraisal.
4. Professional factors , which include lack of Communication abilities,
lack of confidence, lack of positive attitude / interaction, interface of private
life with professional life, spirit of teamwork.
The physical or psychological demands from the environment that
cause stress are called stressors. Stressors can take various forms, but all
stressors have one thing in common: They create stress or the potential for
stress when an individual perceives them as representing a demand that may
exceed that person’s ability to respond.
Classification of Stress: Stress can be experienced in these three key
ways: Physically, Psychologically & emotionally.
Physically through lowering of immune system functioning and the
experience of physical symptoms, psychologically & emotionally through
negative behavior, poor relationships at work or in your personal life, as well
as poor lifestyle choices.
The National Institute of Occupant Safety and Health (America)
identified the following categories of stressors as representing the primarysources of stress for employees: (1) excessive overload and pace, (2) rigid or
otherwise undesirable work schedules, (3) role stressors (conflicts and
ambiguity), (4) concerns about career security, (5) poor interrelationship at
work, and (6) unpleasant job conditions.
The cost of stress can therefore be seen to operate at four separate but
interconnected levels. These are:
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a) The Personal or Psychological: This includes the possible
determinant effects on health, mental and emotional functioning, confidence
and general well-being.
b) The Social and Interpersonal : The Interpersonal relationships,teamwork, contribution to the community and earning power are amongst the
social factors that can be damaged.
c) The Organizational : Stress tends to be very costly to organizations in
terms of reduced productivity and efficiency, low morale, high sickness and
staff turnover rates and so on.
d) The Professional : Standards of practice and quality of service can be
adversely affected by stress. In long run it is not only staff that suffers as a
result of stress but also service user.
The effects of work stress occur in three main areas: physiological,
emotional, and behavioral. Some results of excessive stress in above three
areas are as follows:
Physiological effects of stress include increased blood
pressure, increased heart rate, sweating, hot and cold spells, heavy breathing,
muscular tension, and increased gastrointestinal disorders.
Emotional effects of stress include anger, anxiety,
depression, lowered self-esteem, poorer intellectual functioning (including an
inability to concentrate and make decisions), nervousness, irritability,
resentment of supervision, and job dissatisfaction.
Behavioral effects of stress include decreased
performance, absenteeism, higher accident rates, higher turnover rates, higher
alcohol and other drug abuses, impulsive behavior, and difficulties in
communication.
Stress and coronary heart disease are strongly linked. Other serious health
problems are commonly associated with stress include backaches, headaches,
stomach and intestinal problems, upper respiratory and various mental problems. Recent Medical researchers have discovered possible links between
stress and cancer. Stress-related illness places a considerable burden on people
and organizations.
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LITERATURE REVIEW
Lucy Barnes Foster (2002), a professional speaker on stress-management,
surveyed mid-level managers and found stress to be a major determinant in
worker productivity. According to the study, the primary areas affected by
stress are employee morale, absenteeism, and decision making abilities. By
recognizing that a problem exists and by addressing the issue, managers can
reduce stressful activities and increase worker performance in the business
organization
Leslie Schorr (2001), a stress-management consultant, stated that stress causes
problems in theworkplace which negatively affect employee health and
organizational productivity. Stress can lead to problems such as job
dissatisfaction, alcoholism, absenteeism, physical ailments, and poor job
performance. If managers know how to prevent and cope with stress,
productivity can be increased. Many companies instituted stress-management programs that led to a decline in absenteeism, a decrease in sickness and
accident costs, and/or an increase in job performance. Schorr reported that a
stress inventory, available from a stress-management program, can assist
executives and managers in assessing employee stress. Once these sources
have been assessed, the program can provide the necessary skills for coping
with the problems, and participants can learn that there are alternative ways of
reacting to stress.
(Rose, 2003) In every organization and at every level of management and workers an
elevated average level of stress is to be found which mostly has an effect on employee’s job
satisfaction. According to (Rose ,2003) employees have tendency towards high level of stressregarding time, working for longer hours which reduces employees urge for performing
better. Management support helps in reducing or increases stress in employees, (Stamper &
Johlke, 2003) apparent organizational assistance, management support work as a cushion
which acts positively in decreasing work related stress in employees. (Beehr, Jex, Stacy &
Murray, 2000) found the relationship between occupational stressors and the performance of
employees of an organization as well as it can affect the employees psychologically. (Jamal,
1984) studied a association between job stress and job performance between managers and
blue-collar employees. Stress on job can be stated as the outcome of an individual due to the
working environment from which he feels unsecured. Different relationships are projected
between job stress and performance: U-shaped and curvilinear, positive linear, negative linear
and no relationship between the stress and performance. A random sample of 305 blue-collar
and 325 managerial workers in Canadian firm are surveyed through structured questionnaire.
Variables used for this study were job stress, job performance, and organizational
commitment. A negative linear relationship between job stress and job performance was
found.
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RESEARCH METHODOLOGY
The report is based on primary and secondary data and it follows the exploratory research
studies. A nonprobability, convenience sampling technique was used to collect primary data.
The questionnaire was developed to get the level of stress on employees and their
performance. The work is stated with the data and information which were available atinformational websites and various journals, etc. Because of the fragile research findings in
the area of stress management, every effort was made to choose the best methodology
available.
Collection and sources of data:-
a) PRIMARY DATA
b) SECONDARY DATA
Research design
Research design is the blueprint to study any problem. It is a plan for collection analysis and
interpretation of data in manner that is relevant to research purpose with economy in
procedure
Following are the research design that I used in conducting this research report:-
a) EXPLORATORY RESEARCH DESIGN
b) DESCRIPTIVE RESEARCH DESIGN
Sample design
The amount of research work is limited by shortage of time and resources. Due to this
limitation it is not possible to gather complete information. So, the technique of sampling is
applied. The sample are so selected that they are representative of the entire population.
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Analysis
1) I am given enough time to do what is expected of me on my job.
36
13
47
4 0
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: The percentage of neutral response is the highest; this means that these employees
give average time which is expected by their organization. On the hand only 4% employees were
disagreed to this parameter.
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2) I get upset thinking that I am not able to prosper (or) make progress in my Job or carrier.
Dig.2
43
19
23
9
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISGREE
Interpretation: Many employees have thought that they are not able to prosper their jobs and
are not able to get their career aligned according to their expectations. Because of this they
get stress and which impacts their performance.
8
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3) I very Often feel that I am being neglected when I am in the Team.
Dig.3
25
15
32
16
12
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREEE
STRONGLY DISAGREE
Interpretation: It has been found that 25% employees were agreed that they are neglected
when they work in teams and groups. This leads to led down their morale down whereas
many employees were neutral because they don't care about their part in team working.
9
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4) I often hesitate to start something new because I feel that I will not be successful and get
scolding from boss.
Interpretation: According to the results the agreegate is in agree that they feel fear to
anything new as they can get the punishment. But on the other hand 10% epmloyees were
disagree to this as they want to explore new things to do their jobs and work.
10
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5) I don’t have the information I need for my work.
Dig. 5
12
7
38
27
16
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Some employees gave the response that they have all the information required to do
job but majority disagreed on this question.
11
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6) I feel that I been work loaded with too any jobs.
Dig. 6
29
1726
20
8
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Majority of the employees that they are overburdened with the work given by
organizations and because of tis the level of stress increases and leads to many of the physical and
mental problems.
12
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7) I feel I am absolutely useless why my boss scold me for minor mistake.
Dig. 7
22
16
19
33
10
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Employees feel that they are underestimated by their bosses as they scold
them for their minor mistakes.
13
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8) I find it extremely difficult to take decision.
Dig. 8
27
32
31
82
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: As the instructions are not fully provided they feel difficulties in taking
decisions which decreases their morale.
14
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9) I get very nervous when I didn’t meet Organizational requirements in job.
Dig. 9
22
16
31
22
9
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Most of the people were neutral in giving their responses whereas the
percentage of agreed and disagreed employees were same.
15
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10) I will get stress by mostly external person.
Dig. 10
24
14
29
20
13
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Majority of the people were agreed to the point that they get nervous while
facing the outside people and lack confidence. Whereas only 13 % employees were strongly
disagreed as there confidence level is high and positive.
16
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11) Do you have frequent headache while doing the job.
Dig. 11
33
1916
20
12
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Majority was found that they come across with the headache frequently as
they were overburdened with the works.
17
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12) I smoke Less than Half a packet of cigarette every day.
Dig. 12
23
17
29
21
10
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Many of the employees are got the habit of smoking because of the increase
in the stress level as well as their colleagues.
18
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13) I have at least one friend with me so that I can share all the personal details to him.
Dig. 13
35
21
19
13
12
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: As employees don’t get enough time to spend with their friends they are not
able to share their feelings and emotions with them. On the other hand 12% people were of
thought that they are having many friends and are able to spend their time and feelings with
them.
19
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14) I do fun at least once a week.
Dig. 14
24
14
12
36
14
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Research found that many of the employees were disagreed that they have fun once
in a week as they don’t get the off on weekends because of the over burden of works.
20
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15) I am proud to tell people where I work.
Dig.15
38
24
18
12
8
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: Many employees feel that they speak good words of mouth about their organization
as they don’t want to be neglected in society if they will say that their organization is not providing
them with opportunities for their carrer.
21
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16) I feel myself to be part of the organization.
Dig.16
31
27
13
19
10
AGREE
STRONGLY AGREE
NEUTRAL
DISAGREE
STRONGLY DISAGREE
Interpretation: 31% employees were agreed that they feel themselves as the part of the
organization as they are given the authorities to take decisions.
22
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Findings
Research has found that most of the employees are under stress and over-burdened. They are
not getting time to spend for leisure activities. Organizations are putting them under stress by
not giving them power to take decisions and also not providing them with the requiredinformation which is to be needed to perform their jobs. Employees want organizations to
provide them the authority to take decisions so that there will be increase in the motivation
and confidence level. As many of the organizations has created the fear of job security
among their employees, they are not able to do any changes in their work style and even
didn’t try to do any innovations to enhance their knowledge.
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Conclusion
Although stress has always been an integral part of our daily life since
prehistoric times, it has never been so emphasized in nowadays when
competitive work becomes the central part of our daily life and our workingefficiency can be heavily influenced by the stress at work. Since employee’s
working efficiency determines the organization’s performance to much extent,
stress management surely becomes the new hot point in HR management field.
Stress could be either beneficial or detrimental, which depends on its intensity
and lasting time. Too much and too little stress are both unfavorable for
enhancing employees’ performance. What the managers should do to avoid
that is maintaining the stress in the most optimistic extent. There are many
methods to manage stress from both the managers’ view and the employee’s
view. The managers should begin the stress management in employee
selection stage by improving the match-up between employee and jobs,improve the performance appraisal and incentive mechanism, and give special
HR training. People should adjust his or her conception towards stress,
enhance time management, and apply variable stress management techniques.
Finally, it’s worthy of being emphasized that stress management is not a once-
for-all project, but a systematic and dynamic process, which should be deeply
rooted in organization culture and management routine
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Recommendations
Based on the findings and conclusions in this study, the following
recommendations are made:
1. Employers should offer various stress reduction programs to help
employees manage stress because stress is prevalent in the workplace.
2. Employers should conduct a survey of the programs they already offer to
discover which programs are the most effective for managing their employees'
stress.
3. Employees should share their ideas for managing stress with their
employers in order to help
their employers implement appropriate stress reduction programs.
4. Educators should incorporate into their business curriculum discussions of
stress in the workplace and ways to manage stress.
5 .Additional research should be done. First, other areas negatively affected by
stress should be studied to determine if stress affects other aspects of an
employee's life. In addition, other factors should be examined to learn what
the personal and work-related causes and symptoms of stress are for an
individual.
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Limitations
The limitation while carrying out research is basically that to draw the
conclusion from the sample data about a larger group. It was very difficult to
analyze the various companies to get the questionnaire filled by each andevery employee of companies. The time was limited to do the research on
larger scale and due to this the sample size was taken small which was
according to the convenience.
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References
• McHugh, M. and Brennan, S., “Managing Work Stress: A Key Issue
for all Organization Members”, Employee Counseling Today, Vol. 5 No. 1,
1993, pp. 16-21
• Harrold, R., & Wayland, M. (2002, June). New methods to reduce
workplace stress. Industrial Concepts, 19–21.
• European Commission, Improving quality in work: A review of recent
progress , Communication from the Commission to the Council, the European
Parliament, the European Economic and Social Committee and the Committee
of the Regions, COM(2003) 728, Brussels, 2003, available at:
http://europa.eu.int/comm/employment_social/news/2003/dec/com2003_728_
en.pdf
• Bauer, T.K., High performance workplace practices and job
satisfaction: Evidence from Europe , Discussion Paper No. 1265, Institute for
the Study of Labor (IZA), 2004, available at: http://ftp.iza.org/dp1265.pdf
• Bradley, S., Petrescu, A. and Simmons, R., The impacts of human
resource management practices and pay
• Inequality on workers’ job satisfaction , Working Paper 031,
Department of Economics, Lancaste University Management School, 2004,available at: http://www.lums.lancs.ac.uk/publications/viewpdf/000276/
• Rose M. (2003). Good Deal, Bad Deal? Job Satisfaction in Occupations. Work
Employment Society, 17; 503.
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Questionnaire
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I) Personal Profile.
1. Name:
2. Gender : Male Female
3. Age : below 25 yr 25-40 yrs
40 above
4. Martial Status : Married Unmarried
5. Designation :
II)
1) I am given enough time to do what is expected of me on my job.
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
2) I get upset thinking that I am not able to prosper (or) make progress in my
Job or carrier.
Agree
Strongly Agree Neutral
Disagree
Strongly disagree
3) I very Often feel that I am being neglected when I am in the Team.
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
4) I often hesitate to start something new because I feel that I will not be
successful and get scolding from boss
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree 28
5) I don’t have the information I need for my work.
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Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
6) I feel that I been work loaded with too any jobs
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
7) I feel I am absolutely useless why my boss scold me for minor mistake.
Agree Strongly Agree
Neutral
Disagree
Strongly disagree
8) I find it extremely difficult to take decisions
Agree
Strongly Agree
Neutral
Disagree Strongly disagree
9) I get very nervous when I didn’t meet Organizational requirements in job.
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
10) I will get stress by mostly external person
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
29
11) Do you have frequent headache while doing the job. Agree
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Strongly Agree
Neutral
Disagree
Strongly disagree
12) I smoke Less than Half a packet of cigarette every day.
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
13) I have at least one friend with me so that I can share all the personal
details to him.
Agree Strongly Agree
Neutral
Disagree
Strongly disagree
14) I do fun at least once a week.
Agree
Strongly Agree
Neutral Disagree
Strongly disagree
15) I am proud to tell people where I work
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
16) I feel myself to be part of the organization
Agree
Strongly Agree
Neutral
Disagree
Strongly disagree
30