Reducing the Cost of Stress: An Organisational Model

Published date01 January 1990
Date01 January 1990
DOIhttps://doi.org/10.1108/00483489010143267
Pages21-27
AuthorTanya Arroba,Kim James
Subject MatterHR & organizational behaviour
Reducing the
Cost of Stress:
An Organisational
Model
by Tanya Arroba and Kim James
REDUCING
THE
COST
OF
STRESS:
AN
ORGANISATIONAL MODEL
21
T
he management of stress is of major im-
portance to the organisation in the light
of its potential costs.
The cost of stress has been increasingly well documented
over recent years[l,2,3]. Many organisations have taken
heed of
this
message. Having done so, however, they face
the practical problem of how to manage stress in the
organisation. In this article a model is developed for
understanding the kinds of interventions which can be
made to reduce organisational stress. The purpose is to
assist those organisations which are currently debating
how to translate a concern for stress management into
action.
The model presents organisational stress management as
a four-stage process. Having presented the model, how
each stage of intervention addresses the problems which
underpin the management of stress
will
be examined. The
issue of stress is often a difficult one to explain in
organisational terms because it is frequently seen as either
an individual's problem or because it gives rise to strong
emotions. In dealing with stress at an organisational level
it is helpful to have a clear understanding of how stress
results in unnecessary costs to the organisation, so that
preventive steps can be related directly to the costs.
The Organisational Costs of Stress
Recent research has shown the many
links
between stress
and health. For example, heart disease, ulcers, some
forms of cancer, allergies, migraine, back problems,
depression and an increased frequency of minor ailments
such as colds and flu, have
all
been found to be associated
with stress[2,
3].
This poses problems for the individual
who experiences these symptoms. In addition, the
organisation pays the cost in terms of increased sickness
rates.
The problem does not stop there. Stress has also
been associated with higher rates of absenteeism[4] which
may be a reflection of another symptom of stress, low
morale. There has long been controversy about the
relationship between morale and productivity. What has
been clear for many years is that there is a link between
stress and productivity, as the early work of
Yerkes
and
Dodson demonstrated[5]. Figure 1 illustrates this link.
As
Figure
1
illustrates, performance level increases as the
level of pressure rises. Pressure refers to the sum total
of
demands.
Eventually performance reaches a maximum
point. At this point pressure is at the optimum. If pressure
continues
to
rise, however, performance rapidly decreases.
The point at which the level of performance starts to
decrease is the point at which the stress of
high
pressure
comes into operation. Stress occurs when the pressure
level moves significantly away from the optimum.
Stress affects individuals in four basic ways[6]. As
described already stress affects physical functioning. It
can also result in changes in affective, cognitive and
behavioural functioning. The changes inhibit full and
effective use of
the
individual's capacities at work. Having
acknowledged the link between stress, productivity and
organisational effectiveness, the organisation is in a
position to embark on
a
stress management programme.
A Model of Organisational Stress Management
As discussed above, stress can be manifest in a variety
of ways, from individual health and emotional problems
to organisational indicators of morale, absenteeism and
productivity. Tackling a problem which has such diverse
symptoms can be daunting. The problem requires a stage
by stage approach. This is needed because there is often
resistance to opening up the "unknown" area of stress.
There are many potential courses of action and a stage
by stage approach provides guidelines for appropriate
action and in the appropriate order. A stage by stage
approach increases the effectiveness of a stress
management programme because it helps to avoid a
piecemeal and random approach, however well-
intentioned. This four-stage model is shown in Figure 2.
On occasion, the stages in the model may overlap;
however, it must be emphasised that the four stages are
essentially sequential. Each stage raises different issues
and unless these are dealt with it will be very difficult to
move
on to the next
stage.
Resistance
may
be experienced
due to lack of resolution of
the
issues associated with the
previous stage. At the very least there may be a sense
of confusion or lack of understanding about the actions
being undertaken. As stress carries an emotive overtone,
it is vitally important that steps are taken to minimise any

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