Effect of Organisational stress on employee performance in the Public sector: a case of the ministry of Finance Pension Department, Nairobi, Kenya

Abstract

Stress has become a worldwide phenomenon in today's culture, showing up in various forms in every place of work. Employees often work longer hours in the modern workplace due to the growing responsibility levels that require them to put in more effort in order to meet the increasing standards of work performance. This study aimed at the following objectives; to determine how staff members of the ministry of finance department of pension affected organizational performance as a result of job demands, role overload, role uncertainty, role control, and ultimately, individual responses. The study was informed by Palmer & Cooper theory of Work Stress. The study employed explanatory research design to hypothesize the relationships between variables. A sample size of 322 employees of the ministry of finance department of pension was obtained from a target population of 2000 employees using the formula Mugenda Mugenda (2003). The sampled respondents were chosen using simple random technique. Data was obtained using a structured questionnaire, and analyzed using descriptive and inferential statistics. The effect of the postulated factors were tested using a multiple regression equation. Findings showed that Job demand (β1 = -0.218, p = 0.000<0.05),role overload (β2= 0.311, p=0.004 < 0.05), role control (β4 = 0.299, p= 0.001 < = 0.05), and individual response (β5 = 0.118, p= 0.007< = 0.05) had significant and positive effect on employee performance of pensions department, ministry of finance. In addition, results revealed that role uncertainty (β3 = 0.049, p-value = 0.507> = 0.05) had insignificant effect on employee performance of pensions department, ministry of finance. Based on these findings, it is concluded that job demand has a positive effect on employee performance. This suggests that when employees are faced with high levels of job demand, such as a heavy workload or demanding job duties, they are less likely to perform well on the job. Also on the findings the study concludes that role overload enhances employee performance. The study also infers that role control improves employee performance. Finally the results suggest that individual responses, such as communication and feedback, have a significant positive effect on employee performance. This study also recommends that Pensions Department of the Ministry of Finance needs to take steps to increase role overload, role control, and individual response. This could be done by providing employees with more resources, training, and support. By making these changes, the department could improve employee performance and achieve its goals.