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Reducing the costs of stress in organizations / Elizabeth M. Beasley.

by Beasley, Elizabeth M.

Organizational change -- Management

Industrial productivity

Human capital -- Cost effectiveness

90 leaves : ill. ; 29 cm.

Thesis advisor: Dr. Steven C. Bialek.

Committee members: Gene A Wright , Dr. Bruce Thompson.

What is stress? -- Upper management needs to address organizational stress -- The discovery of stress: Hans Selye -- Stress theories -- Physical coping mechanisms -- Research data on stress -- Causes of stress in the organization -- Effects of stress in the organization -- Costs of stress in organizations -- Steps for organizational improvement -- Easy initial solutions -- Long-term stress reduction solutions -- Case study: Company XYZ -- Conclusion.

Stress in the workplace is one of the most negative forces in organizations today. Stress is not healthy when it accumulates rapidly without release daily, weekly, and yearly. When stress accumulates rapidly without release or necessary periods of relaxation, stress can propel employees to engage in unhealthy behaviors and anger. As it accumulates, stress affects the human body psychologically, physically, causing an infinite number of health problems, including stroke, heart disease, heart attacks, and a lowered immune system.

Change in organizations is one of the constants in the business world. Organizations continue to alter structures and procedures, and become leaner. Companies are downsizing more rapidly than in years past, as the need to thrive and survive are making them more flexible, global, and technological. Products need to be designed ahead of the competition, integrate customer needs, be delivered as soon as needed, and in perfect condition. Rising costs of materials and energy are a headache to organizations making them cut costs any way they can in order to remain profitable.

Changes in organizations threaten employees, increasing stress-related illnesses, and worsening mental health. Mergers and acquisitions are becoming commonplace in organizations, causing stress not only in the employees laid off, but also for those left in the aftermath, who must increase their workloads even more. Employees left after a layoff experience feelings of insecurity, as they do not know if they are next. They feel disillusioned, as they have worked hard for the company, possibly for many years. They feel alienated from the values of the company, and confused about their future. All of this creates lowered morale, reduced creativity, lowered productivity, stress, and health problems.

All of the causes and effects of stress affect the organization in terms of costs. These costs continue to rise at increasing rates each year throughout the last several decades. In organizations, there is a lack of understanding why changes need to be made to lower stress levels. There is an absence of a shared vision among the different levels within the organization, inadequate leadership skills, a lack of involvement in change management, and increasing workloads coupled with insufficient training methodologies.

Although it seems to be an insurmountable task for upper management, the reduction of stress, and reduction of costs due to stress, can be analyzed, a plan formulated, and stress reduction implemented from small changes to large integrations. Once started, stress reduction needs to be an ongoing focus in order not to backslide, or to make matters worse.

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