Impact of Job Stress on Employee Performance in Banking Sector with Moderating Role of Organizational Politics

Abstract

This study is aimed at analyzing the impact of job stress on employee performance and also at evaluating the extent to which perceived organizational politics enhances or undermines the relationship between job stress and employee performance. The research design is a quantitative research design that involves the use of data gathered among different employees in the different commercial banks. The relationships between the constructs are analyzed with the help of Partial Least Squares Structural Equation Modeling (PLS-SEM) which also tests the moderating role of perceived organizational politics. The job stress (JS) has a significant negative effect on employee performance (EP). However, moderating effect of Perceived Organizational Politics (POP) does not impact the relation between job stress and employee performance. Results of non-moderating effects suggests there are indications that managers may not assume that negative impacts of stress are amplified in politically charged environments. Rather, stress and politics should be taken as individual stressors, with intervention resources targeting the stressor that is most prevalent in each team or department, rather than a composite stressor to both politics and stress.