Managing workplace stress and its impact on Job satisfaction

Introduction:

Workplace stress holds serious consequences for job satisfaction and has a direct influence on employees' health and organizational performance.  This blog will explore Sri Lankan industries that experience the highest levels of job stress, the root causes of such issues, and HRM stress reduction strategies that help foster a healthier, satisfied employee.

What is work-related stress?

Job satisfaction is determined directly by human resource management and also involves the fundamental activity of avoiding stress in work.  Stress at work can arise from a range of sources like work overloading, job insecurity, inability to have fun with work-life balance, and poor managerial support, among many.  With careful HRM applications, organizations can avoid stress, enhance job happiness and well-being, and create a friendly environment of happiness in the workplace.

Numerous notable writers

Workplace stress, according to the American Psychological Association (APA), is the harmful physical and emotional reaction that happens when work demands are not aligned with an employee's abilities, resources, or needs (APA, 2023).

Cooper and Marshall (1976) identified occupational stress as "a negative reaction that occurs as a result of work-related demands which overtax an individual's coping ability.

Boudreau and Röhling (2000), A form of stress connected with the job, which may be episodic or chronic in nature, is known as work stress.

The principal causes of which employees in the Sri Lankan private sector experience in work stress

Human resource management (HRM) principles help to reduce work pressure, which is one of the commonly identified problems of the private sector of Sri Lanka.  High performance pressure troubles the organization and the individuals and can produce many unwanted outcomes, such as decreased productivity and deterioration of workers' well-being. 

Target-Driven Culture:

Sri Lankan salespeople and marketers experience tremendous pressure in meeting targets, and this is heightened by the country's unstable economy.  Sales professionals who meet monthly targets regularly are given high priority by industries like insurance, finance, and banking.  This makes them work ridiculously long hours as well as on weekends and results in unimaginable stress and burnout.

Economic Volatility:

Sri Lankan economic reforms, i.e., banking sector reforms, lead to job insecurity. Leasing and finance companies are directly impacted by interest rate fluctuation, inflation, and market conditions, which put additional pressure on employees to perform.

Demands from customers:

It is stressful to deal with demanding insurance and leasing customers, particularly if they have issues about payment or claims. Customers' financial issues put pressure on them.

Long working hours and workload:

The financial industry's need to meet deadlines and manage peak workloads frequently translates into longer working days, impacting work-life balance and contributing to stress levels.

Technological Changes:

As a result of rapid technological advancements, employees are forced to learn and adapt constantly, which is stressful, particularly for those who are less technologically inclined.

Compliance with Regulations:

The strict banking regulations imply following detailed compliance standards, thus resulting in higher workloads and more employee anxiety regarding errors.

The consequences of stress:

According to Hellriegel and Slocum (2004) there are three main areas in which stress in the workplace can occur: emotional, physiological, and behavioral. The emotional effects of stress include nervousness, anxiety, resentment of supervision, anger, depression, poor intellectual functioning, irritability, job dissatisfaction, and low self-esteem. Physiological effects of stress include increased heart rate and blood pressure, hot and cold spells, muscular tension, sweating, gastrointestinal disorders, and breathing difficulties. Behavioral effects of stress include high rates of absenteeism, turnover, alcoholism and substance abuse, accidents, impulsive behavior, performance difficulties, and poor communication.

Hellriegel and Slocum (2004) have pointed out how stress impacts performance, which can be seen both positively and negatively. Low levels of stress may lead to underperformance as employees are not motivated or sufficiently alert to perform their best. A low amount of stress may increase performance, but only to a certain extent. There should be a level of stress which is considered optimal, where performance should not deteriorate and employees are not stressed or “threatened” to perform well.

Mitigating stress in the workplace

According to Hellriegel and Slocum (2004) stress management refers to any initiative that reduces stress by helping people to understand the responses to stress, in order to recognize stressors, and the use of coping techniques to minimize the negative impact of stress.

Fontana (1989) posits that the steps to stress management consist of mobilization, knowledge and action. Mobilization is the simple decision that something must be done. It is the realization that there is a better way of working in the organization with reduced stress. Knowledge entails understanding what needs to be mobilized in order to reach that level of reduced stress in the workplace. The final stage is to take action and whether it will be immediate or in the future. The following can be used to mitigate stress at DB Thermal in particular and organizations in general.

HR Strategies:

Tools to Identify and Reduce Work-Related Stress. To determine stressors like work overload, role ambiguity, or interpersonal conflicts, HR's initial function is to measure the amount of stress using tools like surveys and feedback.  After identifying such stressors, HR goes on to reduce them, for instance, by redesigning job tasks, making work schedules more flexible, or creating access to mental health and counseling services.

HR's ability to establish and maintain open, friendly lines of communication is the key to developing a culture where employees are heard and feel free to approach management with their grievances.

The responsibility of human resources is to provide employees with training and career development programs that focus on time management, stress management, and the development of skills related to conflict resolution. These programs are designed to help HRM create a positive work environment by reducing stress rather than increasing it.

Conclusion:

HR's role in workplace stress management consists of more than just reactive problem solving. It is a commercial decision to invest in the company's future and its employees' well-being. HR may foster a positive work environment by fostering communication and enforcing empathic policies. It is no longer an option but rather a must for businesses to compete and survive. As a result, human resources play an important role in creating an environment in which people are driven and satisfied, hence reducing unhappiness.

Reference list

Cooper, C.L. and Marshall, J. (1976). Occupational sources of stress: a review of the literature relating to coronary heart disease and mental ill health. Journal of Occupational Psychology, 49(1), pp.11–28. doi:https://doi.org/10.1111/j.2044-8325.1976.tb00325.x.

Douvaras, A. and Ukpere, W.I. (2014). Potential Sources, Impact and Mitigation of Stress in the Workplace: A Review and Preliminary Case of DB Thermal . Mediterranean Journal of Social Sciences, Vol 5 No 4(ISSN 2039-9340). doi:https://doi.org/10.5901/mjss.2014.v5n4p500.

H.H.D.N.P. Opatha (2025). Stress and Its Management: A Study Based on HRM Textbook Literature. Sri Lankan Journal of Human Resource Management, [online] 15(01). doi:https://doi.org/10.31357/sljhrm.v15.7846.

Ipsen, C. and Jensen, P.L. (2012). Organizational options for preventing work-related stress in knowledge work. International Journal of Industrial Ergonomics, [online] 42(4), pp.325–334. doi:https://doi.org/10.1016/j.ergon.2012.02.006.

National Institute for Occupational Safety and Health (1999). Stress at Work. Stress at Work, [online] 99-101(99-101). doi:https://doi.org/10.26616/nioshpub99101.

Scilit (2025). An empirical examination of self-reported work stress among U.S. managers. [online] Scilit. Available at: https://www.scilit.com/publications/80fce51175cf5b0c33a8577b93936c43?utm_source [Accessed 30 Mar. 2025].

Siyambalapitiya, P. and Sachitra, V. (2019). Role of Occupational Stress and Organizational Stress towards Job Satisfaction: A Study Based on Banking Sector Employees in Sri Lanka. Asian Journal of Education and Social Studies, [online] 2019 - Volume 3 [Issue 3](3), p.1. Available at: https://www.academia.edu/38513533/Role_of_Occupational_Stress_and_Organizational_Stress_towards_Job_Satisfaction_A_Study_Based_on_Banking_Sector_Employees_in_Sri_Lanka

Comments

  1. :This is a well defined and comprehensive article about the "Managing workplace stress and impact on job satisfaction
    ".
    *HR's ability to establish and maintain open, friendly lines of communication is the key to developing a culture where* *employees are heard and feel free to approach management with their grievances.*

    *_That's a strong and insightful statement_*

    HR’s ability to establish and maintain open, friendly lines of communication is essential to fostering a culture.
    This is my point of view about this statement.

    ▪️Human Resources plays a pivotal role in cultivating a culture of openness by fostering clear and approachable communication, enabling employees to voice their concerns without hesitation.


    ▪️HR’s open communication fosters a culture where employees feel heard and can freely raise concerns.


    ▪️When HR keeps communication open and friendly, it creates a workplace where people feel comfortable speaking up.

    ReplyDelete
  2. This blog provides a good overview of workplace stress and its impact on job satisfaction, particularly in Sri Lanka’s private sector. It also highlights how HRM strategies can help mitigate stress and improve employee well-being. Do you think companies in Sri Lanka are doing enough to address these issues, or is there still a long way to go?

    ReplyDelete
    Replies
    1. Thank you very much for your comment.Some Sri Lankan companies have started implementing HRM strategies to minimize workplace stress. But specially in sectors like IT and the financial sector, there is still a long way to go. I feel there should be a strong policy in place for better mental and physical health support because most of the companies are continuously focusing on a target-driven culture without thinking about employee well-being.

      Delete
  3. This blog explains well how stress affects job satisfaction in Sri Lanka’s workplaces, especially in banking and finance. I liked how you used real local challenges like target pressure and customer demands. But maybe you can add more ideas for small companies to reduce stress.

    ReplyDelete
  4. Your blog covers Sri Lankan private sector occupational stress. Many of your observations indicate workplace stress. Examples include goal-oriented cultures, unstable economies, difficult clients, long hours, technology, and strict regulations. Continue the conversation by discussing HR strategies that reduce stress and boost employee satisfaction. HR departments can create and implement wellness programs to reduce stress and boost organizational culture and engagement.

    ReplyDelete
  5. The blog provides valuable insight into how workplace stress affects employee performance and highlights the need for effective stress management. However, in Sri Lanka, cultural stigma and limited mental health resources pose real challenges. Many employees hesitate to speak up due to fear of judgment. This raises a key question: how can Sri Lankan companies promote open conversations around mental health while operating within traditional workplace norms and limited budgets?

    ReplyDelete
    Replies
    1. Thank you very much for your valuable comment. Managing stress well in an organization helps employees work in a satisfactory level and contribute their high effort to the job, so it is very important to look after employee stress. For that, HR can find out the reasons for stress and give strategies to prevent it. They can offer flexible working hours, conduct training sessions, and provide counseling support.

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  6. This perspective is both timely and insightful! I commend the post for highlighting stress management as a strategic investment rather than merely a reactive measure. Human Resources indeed plays a crucial role in fostering a supportive and empathetic workplace culture that enhances both employee well-being and organizational resilience. In today's fast-paced business environment, what approaches can HR teams adopt to consistently refine their stress management strategies to address the changing needs of a diverse workforce?

    ReplyDelete
  7. Thank you very much for your valuable comment. Managing stress is a long-term investment for both employee and employer. It is very necessary to provide mental health support by conducting counseling programs and offering training sessions. HR must implement strategies for the diverse workforce to suit the changing organizational situation.

    ReplyDelete
  8. Very good post! You did a great job of pointing out how important current HR methods are for keeping employees happy, which is the real secret to an organization's success. I really like how you worked on strategies like clear communication, personalized growth chances, and well-being programs for employees. These are all very important for keeping employees engaged and working hard. You're exactly right when you say that happy workers work harder, are more loyal, and come up with new ideas. Your ideas are a great lesson that making sure employees are happy isn't just about giving them perks; it's also about making the workplace a happy, helpful place to be that makes the business successful. Really great work!

    ReplyDelete

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