The effect of job stress to employee performance: Case study of manufacturing industry in Indonesia

Abstract

The manufacturing industry in Indonesia is proliferating, contributing almost a quarter of Indonesia’s gross domestic product (GDP). This development encourages companies engaging in the industry to increase production capacity. As a result, the employees are demanded to work harder as the manufacturing sector rises. Overwork can result in fatigue, stress and various health problems. However, work stress is a common problem faced in almost all industries and often affects employee performance. Therefore, the main purpose of this study is to analyze the effect of work stress on employee performance in the manufacturing industry in Indonesia. The sample of this research is 93 employees at the staff level who work in various manufacturing companies. This study uses partial structural data analysis techniques using SPSS version 20.0. These techniques are used to analyze the effect of work stress and work environment on employee performance. The results showed that work stress and work environment has a significant impact on employee performance with the value of R = 0.972. Based on the survey result, non-standard working hours and poor relationship with colleagues/superiors contribute to the creation of work stress which has an impact on low performance. Thus, this study suggests the organization to perform a proper stress management as a solution to work stress by implementing flexible working hours and holding discussion forums and meetings between employees. Therefore, employees will be more motivated to improve work productivity.