Stress/Wellness/HealthcareMgmt/Work-life Balance

Definition: Stress occurs when an individual cannot adequately respond to job or organizational stimuli without damage (e.g., fatigue, worry, heart disease).

Established Research: Performance

Stress (giving a speech, studying for a test)

Conclusion: Nearly all work-induced stress is undesirable, not a bell-shaped curve

REASONS FOR MANAGING “STRESS”

1. Corporate self-interest● #1 Fringe benefit?● Popular prescription drugs?

● How did stress get linked to health care costs? Control Data

2. Liability; worker’s compensation

3. Key people most affected

4. Moral/ethical/humanistic reasons

Corporate Self-Interest: Reducing Health Care Costs

• Control Data Corp. 1987 case• 2007: Overweight → 11.65 claims/100 FT Avg. weight → 5.80 claims/100 FT

• Wellmark: Has offered financial awards for some lifestyle activities

• Selection practices. Do not hire those who

consume alcohol or smoke (e.g., Pella, Lucullan’s, Wellmark)

• Choice of “carrot” vs. “stick”

LIFESTYLE POLICIESCOMPANY POLICY

Gannett, General Mills, Pepsi, Monthly surcharge for smokers Sauer-Danfoss, Iowa Telecom Wellmark/BCBS 15% Macys, Gannett, GE Hy-Vee $10 Health Insurance reduction

for nonsmokers GuideOne Discounts for not smoking or

drinking; extra coverage whenvolunteering & church attendance

Alabama, South Carolina $25/month Health Insurance

surcharge for use of tobacco products or excessive weight

LIFESTYLE POLICIESCOMPANY POLICY

AmeriGas Get check-up or lose health insurance

Mohawk Industries $100/month penalty for not participating in a health risk

assessment

Michelin Meeting healthy standards for BP, glucose, cholesterol, triglycerides, & waist size (35 women, 40 men) earn $1000 toward deductibles

Turner Broadcasting First to not hire smokers Union Pacific (where legal to do so)

Affordable Care Act Insurers can charge 50% more for premiums (12-1-13 DMR)

Sidebar on Employees Who Smoke

• Smoking on decline in U.S: 19% of U.S. adults, 18% of Iowans, but growing world wide

• Center for Disease Control says smoking costs the nation $167 billion

• Federal studies show smokers cost an average business $3400 more per year because of increased medical expenses and absenteeism

• Over a lifetime, employees who smoke incur $16,000 more in medical bills

Sidebar on Employees Who Smoke• Growing evidence that financial incentives can

induce people to quit smoking

• GE: 878 employees received info on smoking cessation. Divided into non-compensated and compensated groups.

• One group got $100 for completing cessation program, $250 if they stopped w/in 6 months of being in the study and $400 if they remained smoke free 6 months later

Sidebar on Employees Who Smoke• Results

% Smoke-FreeCompensated Not

CompensatedEnd of First Year: 14.7% 5%At 18 months: 9.4% 3.6%

• The “ship has sailed” with respect to smoking bans at work and in the community. Can obesity management be far behind?

Sidebar: Obese EmployeesConference Board Data:• One in 3 adults is obese (BMI > 30)• Surgeon General says obesity costs the nation >

$100 billion• Obesity accounts for 5-7% of health care costs. For

a company of 1000 employees, an extra $395,000• Programs to combat obesity on the rise (e.g., Google

& Caterpillar put healthy food in vending machines, cafeterias charge less for healthy food)

• Alabama and S.C. will charge employees w/BMI > 35 $25/month for insurance that is otherwise free

• Growing use of office nurse/on-site medical clinics

Reducing Liability and Worker’s Compensation Costs

• Railroad origins

• Extension of safe working environment (Health & Safety Work Act of 1974)

• Stress accounts for as much as 14 % of occupational disease claims

■ Examples■ Firms with less stress have fewer worker

compensation claims

• As work becomes increasingly mental & service-oriented, as opposed to manual, what will happen?

Key People Most Affected

• Loss of highly valued senior people

• Relations to stock prices and public confidence (TI, Disney, Sara Lee, Apple)

• Impact on negotiations • Costs of deaths &

premature retirements

REASONS TO MANAGE STRESS

1. Corporate self-interest: health care costs

2. Liability; worker’s compensation

3. Key people most affected

4. Moral/ethical/humanistic reasons 1985: 27% firms offered stress mgmt

1996: 40% 2007: 68% but now labeled wellness

Occupational Stress RankingsHigh Stress Top 20 Low Stress 230-250 U.S. President Music instrument repairer Firefighter Florist Corporate Executive Actuary Taxi driver Computer Programmer Surgeon Fork Lift Operator Real Estate Agent Medical records technician Stockbroker Janitor Traffic Cop/Highway Patrol

Criteria: Overtime, quotas, deadlines, competitiveness, physical demands, hazards, initiative required, stamina, win-lose situations, and working in the public eyeSource: Wall Street Journal, 1996; based on 250 jobs; updated by Jobs Rated Almanac, 11/28/12

Job Stress somewhat predictable….

TYPES OF STRESS1. Origins of stress

2. Non-work stress

3. Work stress

a. Air traffic controllers b. NASA workers c. OSHA layoff studies d. Accountants

A Managerial Model of Stress Antecedents Intermediary Health(Stressors/stress creators) Stress Outcomes Consequences

(moderator factors)

Physical Environment

Individual Factors•Work overload•Role conflict•Role ambiguity•Responsibility for others•Underutilization of skills•Resource inadequacy

Group Factors•Cohesion•Conflict•Satisfaction

Org. Factors•Climate•Technology•Control systems•Job Design

Non-Organizational•Family relations•Economic status•Work/family conflict

Perceived andObjective StressMeasures

Individual Differences (cognitive/affective)•Type A/B•Locus of control•Tolerance for ambiguity•Need for achievement•Self-esteem

Corporate Practices•On-site child care•EAPs•Wellness programs

Physiological•Cholesterol•Triglycerides•Blood pressure•Blood glucose•Catecholamines•Free radicals

Behavioral•Job satisfaction•Career satisfaction•Life satisfaction•Performance•Absenteeism•Turnover•Accidents•Grievances

Individual Differences(demographics & behavior)•Heredity•Age, Sex •Education•Occupation, Hours worked•Health status•Alcohol and tobacco use•Exercise and diet•Family support

•Coronary heart disease•Rheumatic arthritis•Ulcers•Allergies•Headaches•Anxiety•Depression•Apathy•Nervous exhaustion•Alcoholism

Antecedents of Stress (Stressors) where Managers Can Intervene (Column #1)

Physical Environment

Individual factors• ↑Work overload → ↑ Stress

■ Quantitative■ Qualitative (KSAs)

• ↑ Role conflict → ↑ Stress

• ↑ Role ambiguity → ↑ Stress

• ↑ Responsibility for others → ↑ Stress

• ↑ Underutilization of skills → ↑ Stress

• ↑ Resource inadequacy → ↑ Stress

Individual Differencesand Corporate Interventions

Cognitive/Affective Differences• Type A/B• Locus of control• Tolerance for ambiguity• Need for achievement• Self-esteem

Corporate Interventions• On-site child care• Employee assistance programs (EAPs)• Wellness programs

PERSONALITY TRAITS

Type A High achievement orientation Aggressive Restless; impatient Constant sense of time urgency

Type B No time urgency or resulting impatience Feels no need to display/discuss achievements Plays for fun and relaxation Can relax without guilt

CORRELATES OF TYPE A/B

1. As report more work overload

2. As work more hours

3. As have higher serum cholesterol ratings in college students

4. The “A” trait best predictor of CHD among those less than 49 years

5. Most damaging components of “A” are being distrustful and hostile

TYPE A and B EMPLOYEE BEHAVIORS

A B

Fast workers Patient

Emphasizes quantity Tactful

Works long hours Reflective

Rarely creative Creative

Sometimes makes poor Make careful decisions because they decisions work too fast

APPROACHES TO STRESS REDUCTION

1. Dissipation/Health Promotion a. Exercise b. Bio-feedback; massage c. Overload/role conflict reduction via concierge and “go to meeting” d. Newsletters

2. Selection & Placement

3. Training (conflict mgmt, time mgmt, lunch & learns, ADR, omsbudpersons)

4. Job Redesign & Work Scheduling (lessen role ambiguity, role conflict, reduce underutilization of skills)

Schaubroeck et al. Article

• In a rare 7-year longitudinal study, the effects of job complexity and Type A personality are evaluated among police and fire dept. employees.

• What are the 2 types of job complexity discussed?

What is the dependent variable?

• Re-state the central hypothesis of the study in every day language

Schaubroeck et al. Hypothesis

Job Complexity

• psychological

• task-person

Cardiovascular disorder

Job Complexity

• psychological

• task-person

Type A/B Personality

(true for As but not Bs)(moderator variable)

Schaubroeck et al. Article• Sampling: 303 firefighters & police in 1982

251 provided usable data

Surveyed again in 1989, 171 (71%) return surveys

110 provide usable data (had to keep same job)

• Measures: (1) 5-level Type A/B (high scores more

Type A), (2) Survey items on cardio disorders and

psychological complexity, (3) Control variables like

body mass, and (4) Task-person complexity by DOT

• What were the results (Table 1)?• Was the hypothesis supported (Table 2)?

Schaubroeck et. al.High

Low

Low High

Job

Com

plex

ity

Cardiovascular Disorder/Illness

Predicted &found for TypeA

Predicted for Type B

Found for Type B

Fritz et al. (2013)

Galinsky & Matos (2011)

Levay (2014)