CAUSE AND EFFECT OF STRESS

AMONG THE EXECUTIVES OF

MULTI NATIONAL COMPANIES
IN CHENNAI CITY

INTRODUCTION

Today majority of people are in a state of Stress.

Their fast-paced lifestyle places them under pressure
to perform the best.

DEFINITION OF STRESS
Stress in organizations have been defined as
mismatch between a persons skills, abilities and the
demands of his job environment.
Executives of Multi National Companies are
highly prone to stress due to :

Pressure to learn a number of business

operations in a limited time.

Heavy demands to complete assignments and tasks

in the given time.

Challenges for adjusting in the new

environment.

Uncertainties about future tasks.

STRESS POSITIVE OR NEGATIVE

Hans Selye (1936) the father of stress said that

stress is the spice of life and absence of stress is death.
Stress can therefore be positive, negative or neutral.

As a positive influence, stress represents those

challenges that excite us and keeps us on toes, stress can
help and compel us to action.

As a negative influence, it can result in feelings of

distress, rejection, anger and depression which in turn
leads to health problems.
Stress is a fact of life. But too much stress can
breakdown a persons physical, mental and emotional
health.

TYPES OF STRESS BOON OR BANE?

There are four main types of stress that people experience

Types of Stress

Eustress

Distress

Hyper stress

Hypo stress

Eustress : Eustress or positive stress occurs when the

level of stress is high enough to motivate to get things
accomplished.
Distress : Distress creates feelings of discomfort and
unfamiliarity.
Hyper stress:
Hyper stress occurs when an individual
is pushed beyond their capacity to handle.
Hypo stress :
Hypo stress occurs when an individual
is bored or unchallenged. People who experience hypo
stress are often restless and uninspired.

EUSTRESS(Positive Stress)
Priority
1) Pursue health
2) Pursue
knowledge

More joy

More creative

More
accomplishment

EUSTRESS
(Positive Stress)

More
money

More
Recognition

DISTRESS(Negative Stress)
Priority
1) Pursue Money
2) Pursue fame

DISTRESS
(Negative
Stress)

Loose health

Less
money

Loose joy

Less
Recognition

Loose creative

Less
accomplishment

SOURCES OF STRESS
The sources of stress are classified into two broad
categories as follows:
1.

Individual
stressors: Personality,
motivation, ability, experience, status, life style,
beliefs and values.
2.
Organisational
stressors: There
are
several potential stressors in organizations. These
are summarized below:

Organizational stressors

Organizational Stressors
1. Job Qualities
2. Physical environment
3.Roles in the organization
4. Relationships
5.Career development
6. Organisational structure
6.Changes

Individual stressors

Outcome
Job Stress

1.Personal causes
2.Career changes

Stress outcomes
Eustress Distress

The above mentioned organisational stressors is briefly explained

in a table below:

10

Organizational Stressors
JOB QUALITIES

Quantitative overload/ Underload

Qualitative overload/ underload
Time pressures
Responsibilities for things / people.
Work pace

PHYSICAL ENVIRONMENT:

Working conditions like temperature

Noise
Lighting
Spatial arrangement
Crowding

ROLES IN THE ORGANIZATION Role ambiguity

Role conflict
Too little management support
Holding a middle management position
RELATIONSHIPS

With superiors
With subordinates
With colleagues
11

Fig.3.3 Dynamics of Work Stress

Intrinsic to
the job
Role in the
organisation

Relationship
at work

Individual symptom
Raised BP
Depressed Mood
Excessive
Drinking
Irritability
Chest Pain

Coronary
Heart Disease
Mental
illness

Individual

Career
development
Original
structure and
climate

Budget
constraints

Original symptom
High Absenteeism
High Labour
Turnover
Industrial Relation
Difficulties
Poor quality
Control

Prolonged
Strike
Frequent and
severe accidents
apathy
12

Sources of stress at work

Shift work :

Shift work is a common occupational stress that affects the

sleep patterns, family and social relationships of the individuals.

Career development :

A lot of issues like job security, fear of job loss, obsolescence,

retirement and numerous performance appraisals can create
pressure and strain.

Budget constraints :

Downsizing, fear of job loss, outsourcing, cuts in overtime, and

worker insecurity.

The introduction of new technology :

Computer problems, e-mail overloading, lack of training,

learning new skills, are all stress factors introduced by the
addition of new technology and equipment into the workplace.
13

COSTS OF WORK PLACE STRESS

Stress causes problems, and these problems cost
organizations in different ways:
Low quality of service
High staff turnover
Poor reputation
Dissatisfied workers

14

EFFECTS OF STRESS
Individual and Organisation ailments :
I) Individual ailments:
a) Physical :
Headache,
Indigestion,
Insomnia,
High BP
Heart trouble.
Its effects

Rapidly cause individuals to lose their ability to make

right decisions,

Self-confidence fails.

Faulty decisions made in the work place and at

home may lead to accidents or arguments, financial
loss, or even the loss of job.
15

b) Mental:
Anxiety
Irritability
Lack of clear thinking
Inability to relax
Frustration
Helplessness
Loneliness
c) Behavioural:
Excessive smoking
Drinking alcohol
Strained relationships
Speech disturbances.
16

II) Organizational ailments :

Low productivity
Poor quality
Higher costs
Increased absenteeism
Low job satisfaction
Poor interpersonal communications.
STRESS MANAGEMENT :
Stress management is dealing with stress in a positive
way to ensure good health and general well being.

17

STATEMENT OF THE PROBLEM

Stress is the discomfort of an individual and have ill effects on
health and work performance causing hardship.
Stress is a mental, emotional and physical reaction resulting
from an individuals response to environmental pressure.
It is important to distinguish between pressure and stress.
Pressure is motivating, stimulating and energizing. But when
pressure exceeds the ability to cope, stress is produced.
Executives under stress grow unhappy with their pay, work,
co-workers and have less organizational commitment and
exhibit greater degree of absenteeism, job turnover and
production inefficiencies.

18

NEED FOR THE STUDY

The present globalized economy and the entry of
multinational companies have put the executives
to enormous pressure due to acute competitions.
This competition reflects on human resource and
quality output.
Under these circumstances, the executives need
extensive research as they are instrumental for
maintaining a healthy organization.
Delighted executives are the need of todays
industry (MNC) whose performance decides
strategies, to create a pleasant climate and
environment which would enable them to ease out
stress and strain for their better performance.
19

Although a lot of research has been conducted

on Stress over the last hundred years, some
theories about it are now settled and accepted,
while others are still being researched.
Causes and consequences of stress and
strategies for coping with stress have not yet
been concluded.
Though there are many researches already
conducted, there are some missing links and
gaps in the information provided by them.
So an attempt is made in the present study to
fill the gaps in the research and add new
dimensions to the selected area of the subject.

20

MULTI NATIONAL COMPANIES CHOSEN FOR THE STUDY:

Company Profile:
Three large Multi National Auto manufacturing companies
Hyundai
Caterpillar
Ford are selected for the study.
FORD (USA)
The Ford motor company is an American Multinational Automaker. It was
established by Hendry Ford in the year 1903.
The company has great number of employees amounting to 164,000 (May
2011).
CATERPILLAR (USA)
Caterpillar is the worlds largest manufacturer of earth moving machinery.
It was established in California, United states, April 15, 1925.
They have a great number of employees who are about 1,32,239 as of
June 2011.
HYUNDAI (Korea)
Hyundai motor company was established on December 29th, 1967. They
have employees over 75,000 (2011), earned its name as a leading Car
maker of the year 2010.

21

OBJECTIVES OF THE STUDY

To identify personal factors causing stress among

the executives of multinational companies
To analyse the organizational factors (Crucial HRD
elements)
leading
to
stress
among
the
Executives.
To study the work related factors creating stress.
To ascertain the stress management techniques
of the organization
To suggest the implementation of coping
mechanism among the Executives of Multinational
companies.

22

HYPOTHESIS
There is no influence of personal variables of
executives
on
causes
of
stress,
stress
management techniques and coping mechanism.
The factors causing stress do not differ
significantly among the executives of multinational
companies.
Organizational Factors in multinational companies
do not cause stress among executives.
Work related factors do not influence stress
among the executives of multinational companies.
Stress management techniques and coping
mechanism among the executives of multinational
companies do not differ significantly.
23

RESEARCH METHODOLOGY
Pilot Study and Pre-Testing

A preliminary investigation is undertaken by contacting 50

executives working in MNC companies to identify the
important variables regarding stress and the factors
influencing stress.
The responses are obtained from the executives for stress
management techniques adopted in the organisations and
its direct impact on individual and organisational efficiency.
The purpose of the pilot study is to test quality of the items
in the questionnaire and to confirm the feasibility of the
study.
This preliminary investigation is conducted in all levels of
the executives.
The random sampling method, cronbach alpha method and
Hotellings t-square test are applied.
It is found that cronbach value and Hotelling t-square value
are .837 and 85.317. They are statistically significant at 5
percent level.
24

MAIN STUDY

The data is collected for the study by means of a three section

questionnaire
Section I for the questionnaire is framed to obtain the general
information about the executives,
Section II deals with different factors of stress due to inter personal
relationship, work environment and organisational culture and climate.
Section III deals with various determinants of stress due to
organisational climate.
Part I of the questionnaire is designed in optional type,
Part II-IV are designed in likerts 5-point scale, ranging from
5-strongly agree, 4-agree, 3-neutral, 2-disagree, 1-strongly disagree.
Part V & VII are designed in bipolar scale
Questionnaire format :
Part I
Demographic factors
Part II Factors influencing stress among executives
Part III Organization policy
Part IV Physical and Emotional response of stress
Part V Stress management techniques and Coping mechanism
Part VI Organizational effectiveness

25

SAMPLE SELECTION
The simple random sampling method is applied to
collect the primary data.
The whole MNC companies is downsized into a block in
the first stage of sampling.
SAMPLE SIZE
The simple random sampling method is used to collect
primary data.
A sample size of 623 respondents is selected.
623 samples are distributed among executives of three
companies in equal proportion as the total number
of executives in each company is more or less
equal.
Only 514 returned the questionnaire
Among 514 questionnaire 510 are found usable.
The exact sample of the study is 510.
26

DATA ANALYSIS

The sources of data are primary as well as secondary.

The data collected from the executives survey constitute
primary information; the data gathered through books,
journals, magazines, reports, dailies constitute secondary
data.
The data collected from both the sources are scrutinized
edited and tabulated. The data is analyzed using statistical
package for social sciences (SPSS)V15 and other computer
packages. The following statistical tools are used in the
study.
The statistical tools used for data analysis:

One way Analysis of Variance (ANOVA).

K-means Cluster Analysis.
Chi-square test
Karl Pearsons Co-efficient of Correlation
T-test and Paired t-Test.
Factor Analysis
Discriminate Analysis
27

SCOPE AND LIMITATIONS OF THE STUDY

The study is confined to the executives, of three
Multi National Companies Ford, Hyundai and
Caterpillar in Chennai City.
The personal bias of the respondents might have an
impact on the data collected due to the reluctance
among the respondents to answer the questions.
The study is confined to selected groups of
executives in a manufacturing industry and it may
not be equally applied to all the executive classes of
other industries.
Stress can either be temporary or long term, so the
level of stress can vary time to time.
Findings of the study are based on the assumptions
that respondents have provided the correct
information.
28

FINDINGS PERTAINING TO OBJECTIVE I

(To identify personal factors causing stress among the executives
of Multi National Companies)

Influence of personal factors on causes of stress

Independent
variable

Development factor

F value

Significance

Age

Employees role

3.100

.009

Gender

Employee potential

3.531

.001

Educational
qualification

Vigorous training

3.139

.001

Designation

Performance
appraisal

3.138

.001

Experience

Goal setting

3.634

.001

Number of family
members

Organisational
effectiveness

3.242

.005

Children

Organisational
development

3.641

.002
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FINDINGS PERTAINING TO OBJECTIVE II

(To analyse the organisational factors (Crucial HRD
elements) leading to stress among the Executives)

The executives in multinational companies are segmented into 3 heterogeneous group

based on employee potential, physical response and organisational effectiveness.

Variables
Employee Potential

Executives

Cluster name

45%

Lethargic executives

34%

Enthusiastic
executives

21%

Uncertain executives

30

Variables
Physical Response

Organisational
Effectiveness

Executives

Cluster name

52%

Irritable executives

16%

Inspiring executives

32.8%

Ignorant executives

36%

Dynamic executives

30%

Potential executives

34%

Motivated executives

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1.
2.
3.
4.

5.

The following organisational factors have strong

agreement in creating stress among the
executives of multinational companies.
Performance Appraisal policies..
Tough on the job training .
High technology involved training.
Physical response such as sense of inferiority,
irritability, excessive travel for long hours.
Emotional response such as interference of
work with family life, difficult office politics.

32

FINDINGS PERTAINING TO OBJECTIVE III

( To study the work related factors creating stress)
The association between work related factors
causing stress:

Variables

Chi-square

Significance

Management policies Vs
Physical response

28.432

.000

Management policies Vs
Emotional response

36.914

.000

Employee potential Vs
Physical response

19.162

.001

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FINDINGS PERTAINING TO OBJECTIVE IV

(To ascertain the stress management techniques of the
organization)
Stress Management techniques
Name of the stress management
techniques

% of executives using
the technique

Listen to Music

75.9%

Attend club or social activities

52.2%

Relaxation

49.2%

Doing exercise
Meditation

48%
52.9%

34

Name of the stress management

techniques of the organisation

% of executives using
the technique

Laughing or crack jokes

53.7%

Walking

45.3%

Taking anti depression drug

60.8%

Follow time discipline

76.9%

Prioritize work

86.9%

Take planned breaks

86.5%

Delegate responsibilities

84.9%

Spending time with pets

78.8%

Eat a balanced diet

73.3%

Sleep 7-8 hours atleast 3-4- days a

week

79%
35

Name of the stress management

techniques of the organisation

% of executives using
the technique

Habit of writing stress diary

82.4%

Listen to the views of others to

provide
effective
and
timely
feedback

85.1%

36

FINDINGS PERTAINING TO OBJECTIVE V

(To suggest the implementation of coping mechanism among the
executives of multinational companies)
Stress coping mechanism in Multinational Companies

Organisational coping strategies:

% of executives using
the technique

Need facilities like rest room

78.2%

Prefer cafeteria facility to relax

78.6%

Prefer regular health checkup

86.9%

Prefer transport facility(Pick Up &

Drop)

87.5%

Prefer to go to off-site picnics or

family trips

87.5%

Recreational facilities

94.7%

Interest on programmes on time

management techniques

52.7%
37

Organisational coping strategies:

% of executives using the

technique

Counseling

66.3%

Prefer to get incentives appreciation

and rewards for achievement

67.6%

Agree for job rotation

59.4%

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COPING WITH STRESS Action points:

Managers should:
Identify sources of stress and their effects.
Adopt a de-stressing routine like going for a solitary walk at the
end of the day.
Spend time with family, friends.
Make time for vacations.
Practice relaxation methods like deep breathing, meditation, and
yoga.
Sleep for at least 6-8 hours.
Plan, prioritize, and delegate work
Try to maintain a work-life balance.

39

Managers should not:

Ignore symptoms like frequent headaches, coughs and colds.
Take on too many responsibilities or demands that are beyond
his capabilities.
Use drugs, tobacco, alcohol to handle stress.
Use self-medication.
Wait for deadlines to approach.
Set unrealistic goals.

40

HYPOTHESIS TESTING RESULT

All the five null hypothesis are
rejected at 5% level.
There

is influence of personal variables of executives on causes

of stress, stress management techniques and coping mechanism.
The factors causing stress
differ significantly among the
executives of multinational companies.
Organizational Factors in multinational companies cause stress
among executives.
Work related factors influence stress among the executives of
multinational companies.
Stress management techniques and coping mechanism among the
executives of multinational companies differ significantly.

41

42

This diagram clearly explains the diagrammatic representation of

parametric relationship between the causes of stress and its
physical and its emotional outcomes. The subsequent effects of
these outcomes are organizational effectiveness. It also
empirically uses Karl Pearson Co-efficient of correlation. Besides
these variables, the demographic variables and their impact on
organizational effectiveness are also diagrammatically shown in
the model.
After the overall statistical analysis of cause and effect of stress
among the executives of multi national companies, the next
chapter deals with the findings, suggestions and conclusion.

43

SUGGESTIONS

Based on the above findings the following suggestions are

recommended to get rid off stress among the executives of
multinational companies.
The organization should adopt effective communication
system providing more information about their jobs
and other factors that affect them.
Multinational companies should ensure that the workload
is in line with executives capabilities and resources.
To adopt
an
optimistic
appraisal
system
to
transparently state that evaluation is done for
increasing the skill of executives.
They should be allowed to maintain close interpersonal
relationship
with
peers,
immediate
boss,
subordinates and family which would help them to
effectively cope with stress.

44

The executives should be involved in decision

making,
assigning
challenging
job
and
innovative work with freedom at work.
Train the executives in the areas of the latest
technology.
Appreciation and rewards for achievements and
recognition of expertise may be given to enhance
the achievement.
Swot
analysis,
i.e.
strength,
weakness,
opportunities and threat analysis if analyzed carried
out periodically by an executives will enable his own
self and to find out his stress point.
The MNC should play a charismatic role in
envisioning, empowering and energizing their
executives
towards
organizational
stress
management programmes.
45

Provision should be made for planned breaks, in

between normal working schedule hours to reenergize their executives and to get rid off monotonous
routine work.
Help executives keep a positive perspective on life and
feel a sense of purpose. It is important for executives to
feel that they are making a valuable contribution to
the organization.
To empower the brand value of the company, special
activities such as Rally on World Environment Day,
Womens Day, etc can be conducted, where full
participation of the executives are encouraged.
Furthermore such type of work environment should be
created where executives can maintain the balance
between the professional and personal life with the
principle that no home work at office and no office
at home.
This will help in maintaining scheduling
compatibilities.
Hence stress can be reduced or minimized only if the
cause is correctly identified and if executives adopt the
46
stress management techniques regularly.

Healthy lifestyle options for management of

stress
To keep executives healthy and to lower their health
risks. The companies have adopted the following
approach:
Weight control and dietary advice
Smoking and alcohol control programmes
Hypertension reduction
Exercise programmes.
A generic term often used for this approach is called
Stress Eviction Programme.

NSS ACTIVITIES
Giving options to executives to render voluntary
services such as (Blood donation camp, eye camp
and health checkup by having a tie up with Lions
club and leading social service organizations can
release their mind from stress.
47

SUCCESSFUL STRATEGIES AGAINST

STRESS
The

measure of success is the number of

joyful smiles per day.
Healthy mind means a healthy body
Positive attitude is most fundamental to any
executive.
It is always better to remember that:
Exercise + Proper diet + Rest = Health.

48

CONCLUSION

Research clearly concluded that organizational set up is

the predominant factor causing stress among the
executives
Mechanical organizational life of the executives,
aggravates stress and subsequently ends up with
psychological and physiological problems.
It is concluded that the management policies, employee
potential and organizational development prevailing in
multinational companies, create huge dimension of
stress among the executives.
The prevailing performance appraisal system is the main
cause in creating stress among the executives.
49

a)
b)
c)

The vigorous training programmes, and executive

development programmes and their methodology followed
by multinational companies are highly conspicuous in
causing stress among the executives in the organization.
In particular the executive in multinational companies are
able to realize that the
psychological changes,
reduction in the mental capabilities
Decline in individual efficiencies
are negative symptoms of the stress caused by the
organizational environment.
The stress management techniques and coping
mechanism are essential to prevent stress.
Regular practice of yoga, meditation and good
interpersonal relationship builds confidence among the
executives in multinational companies there by preventing
stress in multinational companies.
50

The personal factors such as age, gender, responsibilities,

work life balance, are significant in creating stress among
the executives of multinational companies.

The most helpful method of stress management

programmes like
Identification and controlling of NEGATIVE feeling
Replacing rigid thoughts with POSITIVE flexible and
realistic thoughts.
for behaving rationally and productively is to eliminate
stress.

a)
b)

It is important for executives to feel that they are making a

valuable contribution to the organization.
51

 People

spend half of their life in making

money and lose health in that process.

In

the remaining half they spend that money

trying to regain the health

Pursue

health (mind + body) and

knowledge (universal knowledge) then
money & fame will follow as a byproduct.
52

SOCIAL RELEVANCE

This study is able to measure stress among the executives of

multinational companies. This leads to ensure the society a
stress free atmosphere among the families and also to possess
good health to build a strong future generation.
The HRD practices in the organizations develop leadership
comradeship and sportive spirit among the executives.
The psychological build up, make them more impeccable in the
behaviour towards all types of people in the society.
The learning process, career development and skill development
assures the internal potentiality of executives which in turn builds
confidence among executives to lead a wealthy and healthy life in
the prevailing society.

53

 People

spend half of their life in making

money and lose health in that process.

In

the remaining half they spend that money

trying to regain the health

Pursue

health (mind + body) and knowledge

(universal knowledge) then money & fame
will follow as a byproduct.
54