An Integrative Conceptual Approach to the Impact of Job Stressors on Organizationl Performance through Employee Job Outcomes

Abstract

The service sector has always been playing an important role in the development of modern economies. Regarding services industry, the banking sector is playing its extraordinary part for boosting up growth of Pakistan. The employees in the service organizations and particularly those who have direct contact with customers, usually serve as representatives of both organization and their products or services. Further, all subordinates working in any organization wish to have flexible and tensionless working environment as job stressors adversely affect employee job outcomes. Hence, for better organizational performance, employees must be satisfied with their jobs and also free from work overload prevailing in their working environment. The main purpose of the research was to determine the impact of job stressors on organizational performance through employee job outcomes in the banking sector of Pakistan. The job stressors include role ambiguity and work overload, while, employee job outcomes include job stress, emotional exhaustion and turnover intention and finally organizational performance is comprised of service quality, customer satisfaction, job satisfaction and organizational commitment. The study has examined the mediating role of employee job outcomes in transferring the impact of job stressors to organizational performance. The research has also assessed moderating role of employee empowerment in differentiating the impact of employee job outcomes on organizational performance. The study was based on primary data collected in the form of filled-in questionnaires from middle and lower management staff and concerned customers of the selected commercial banks. Based on a random sample selected (703 employees) from target population of 198 branches of eleven commercial banks operating in all four provincial capitals (Karachi, Peshawar, Quetta and Lahore) of Pakistan, the study received 519 usable questionnaires, i-e., a response rate of 73.82%. The Structural Equation Modeling (SEM) technique was employed for testing research hypotheses for their validity. The research has yielded the most interesting and surprising results, thereby contributing new insights to the literature. The findings of the study show work overload as compared to role ambiguity, exerts truly detrimental effects upon employee job outcomes and organizational performance. The research has also found mix sort of results for work overload and also for employee job outcomes (job stress and emotional exhaustion) with organizational performance, but, did not obtain statistically significant relationship of turnover intention with even a single measure of organizational performance. Further, the research has found job stress, emotional exhaustion and turnover intention as potential mediators in association between job stressors and organizational performance, and also observed employee empowerment as potential moderator between employee job outcomes and organizational performance. Finally, the study provides support for few of the hypotheses yet there are some theoretical possibilities, which remained unconfirmed