CHAPTER 2LITERATURE REVIEW2.
1 INDEPENDENT VARIABLE2.1.1 Job DemandJobDemand refers to “physical, social, hierarchical parts of the job that requiresupported physical or mental endeavours that are along these lines related withcertain physiological and mental costs” Demerouti et al., (2012). They alsocited job demands are basic factors that make representatives encounterbusiness related anxiety and burnout.Bakker,(2011) has described job demand can refers to something that need physical,physiological, social involvement and organizational aspects of the job inachieving and completing the task in the same time can reduce costs.
In theother side of this explanation this job demand stimulate personal growth,learning, and development.Jobdemand usually measured by five criteria which is work too hard, excessivework, time constraints, work in rushing and demand conflict. It may not givingand equal weight compared to different individual creativity, skilldevelopment, skill requirement and routine. The decision making or called anauthority like freedom to make decision, choice of ways to perform work andinfluence over job requirements make the job demand became complicated. Thesupport from the organization, co-worker and supervisor was under socialsupport in the job demand Fan et al., (2013)Challengesin performing or fulfilling the job tend to be stressful although it elevatemastery, personal growth and future gains.
The challenges appear with observingdemand with high workload, time pressure and high levels of job responsibility.Some employees see this challenges as an opportunity to learn, achieve andshowing a type of competence to get reward and employer recognition. Incontrast with the employees may seen this as an hindrance as stressful demandthat will constrain their personal growth, learning and goal attainment Crawfordet al., (2010)Jobdemand can be divided by three type from the aspects of human functioning whichis physical demand, carry out the physical activities and it is affected themusculoskeletal system. Secondly the mental demands that involve processing ofinformation like planning and memory the task need to be completed. Lastly andthe third one is emotional demands impact directly on emotions and feeling.Emotional demands firmly related to interpersonal relationship like caring andconcern for others Jonge et al., (2010).
Accordingto Demerouti et al. (2012) job demands are basic factors that makerepresentatives encounter business related anxiety and burnout. Schaufeli andTaris, (2014) clarify job demands usually force an additional effort to gainthe task goals and to avoid the shrinking of performance. This additionaleffort clearly arises with physical, mental and emotional prices such asfatigue and irritability. Employees may recover through this energy consuming,by taking a break, switching tasks, execution less demanding tasks but if thisrecovery is insufficient so employees will come out with exhausted physical andmental.Inaddition job demand require high commitment for job completion. That jobcharacteristic empowered the organization with high discretion and skillrequirements. High job demand means active jobs participation.
Active jobresult higher levels of employee’s well-being vice versa Holman, (2013). 2.1.2 Time Pressure Accordingto Tims et al. (2014) economic decision and plan are often taken time andpressure. Person that involve in the negotiation, trading and implement thetask always experience time pressure. Limited time to completion and meet thedateline is what we call time pressure. Employees must cope with this type ofpressure to avoid stress and misconduct in performing the task.
The last minutetask given by the employer will initiate the time pressure. Differentindividual may differ the ability to handle the time pressure. Kwaku, (2012) mention that timepressure cause a condition of information overload because employees simply didnot have sufficient time to process and indirectly forced to shorten theirdecision to the task since less alternative or option available. Scarce of sourcesor skill required in accomplishment of the task make the time shorten and notenough. Researcher found that more familiar the task or assignment it willreduce the stress on performing the task to meet the dateline. Workstress is a kind of time pressure. Although researcher has been exploring therelationship between work stress and employee performance for nearly decades,there still remaining controversy and arguing about the consequences of workstress on job performance.
There are few version of theory trying to clarifythe relationship between them. The negative side theory states that stressinitiated individuals to differ time, attention and energy from work at handthus leading to negative effect on performance. Distinct from negative, the positivetheory argued that stress can improve performance. It clarified therelationship as stress enhanced performance in the starting, when stress waslarger than threshold value, as stress raise up, the performance decreasesimultaneously.
Usually shorter time to meet deadline will increase the timepressure. People often require certain time to accomplish the task withperfection. There is also observation reported that time pressure has no effecton performance Yu, (2015)Timepressure are evaluated by fluctuating the length of time needed for finishingthe tasks given. The competition among other employees who are given the sametask make things stressor Shurchkov, (2010).According to Sharmin, (2008)influence of time pressure on context of performance and found there is nosignificant effect. Thedefinition of time pressure as a mental evaluation follow on the reflection onthe total of work to be done in relation to observed capacity or timeavailable.
Time pressure can be characterized as a challenge stressor ifpositive handling in increased of effort will lead to better sense of personalaccomplishment and recognition. This challenging time pressure make theemployees sees an opportunity for achievement and development with thecompetency among each other’s Widmer et al., (2012).Kühnel et al., (2012) described a well-establishedinstrument about measurement of time pressure. It encompassed that did theemployees work faster than usual in order to complete task. In order to meetthe dateline it also question employees came home late because of too muchworkload to finish. All this questions will be evaluated to measure how far thetime pressure affected employee work life balance.
Nättiet al., (2015) addressing the time pressure began when the existence of tighttime schedules and the incompatibility between time and task demands. Nättiet al.
, (2015) give an example about this incompatibility in employees workcontains tight schedule, employees need to expanse their working days to getall the jobs done. They also did not have enough time upon the date ofcompletion the task even they are capable and willing to do it. 2.1.3 SalarySalarycan be characterized as a confirmed amount of cash paid to a staff usuallymeasured at monthly and annual basis, not hourly, as opposed to wages, salaryis a confirmed amount of cash or compensation paid to a staff by their employerconsequently for the labour done. It is fairly promising to observe thatself-value is seen as being less relevant since an organization can do minimalregarding employee’s perception of disparity with respect to their financial needsor their historical pay evolution Idrees et al.
, (2015).Wararkar,(2015) explain salary was specified in an employment contract and a system ofperiodic payment from an employer to an employee. It is differ from wages,where each job hour and other unit was paid separately rather than on aperiodic basis. In the view point of business, salary was seen as the cost ofacquiring human resources for running operation and later designated personnelexpense or salary expense. The fee of wages and salary is an inbuilt systemwith human force for their job completed.
Payment was made to the labour iscalled wages and sum of money paid periodically to persons whose productioncannot easily being evaluate such as managerial staff is called salaries.Toretain the competitive employees in the organizations, they are obligated toprovide their employees with suitable working conditions, competitive salaries,employment security and autonomy Ali and Akram, (2012). Financial aspectsespecially salary is the most important because it has impact on theperformance if further concluded by him.Amahet al.
(2013) clarify salary was refers to any payment of money at monthlyintervals to non-manual worker like white collars and managerial workers forjob done. Salary is generally paid on annual rate, typically paid by banktransfer. Payment are performance based. Employees are positively nearer totheir organizations and perform a better job, while they get more beneficialreward and acknowledgement in their organizations. Salaries and reward rose upthe level of effectiveness and performance of employees on their task resultingthereof increase the success of the organization Jehanzeb, (2012)Mustapha,(2013) clarify Haethfield, (2012) statement, salary is an exchange for a workperformed from an employer to an employee in a form of money or compensationbeen paid. This type of exchange is a vital role to determining employee’slevel of job satisfaction. Salary is regulated by market pay rates for peopleperforming similar work in the same industries in the same area. Employer alsohas right to established salary ranges as long it meets minimum salary set bygovernment Pongoh, (2013).
Accordingto Luthans, (2000) both financial and non-financial reward both can be resultpositively to enhance performance and behaviours of the employees. A salary andreward framework depends on the expectancy theory, which proposes thatemployees are more likely to be motivated to perform when they observed thatthere is a strong link between performance and reward they received. 2.1.4 Workplace Stress Manjunatha and Renukamurthy, (2017)define there is definite level of stress on employees in banking sector.Employees cannot adapt with hasty changes take place in the jobs. Workplacestress in banking sector may arise from employee contribution, rapid changes intechnology, service for customers and lack of customer response. Social stress isabout communicating, interacting with other human beings or in easy term calledrelationship with other people around.
The organizational stress alsocontributed to the workplace stress with high demands and pressures made by theorganization to its employee. Kishori and Vinothini, (2016) haddiscuss the banking sector nowadays face a greater challenges in technologicalrevolution, service variation and worldwide banking. Regarding the currentissues, not every employees can cope with it and the organizations concernabout this rapid change making workplace stress becoming major problem.
This stress affected physical, mental andbehavioural to surrounding. Terrible results if an employee do not feelcomfortable while working and feel stress and pressure. An employee in his or her job inbanking sector confront stress as described by Jamshed et al., (2011) workplaceis an important basis of stress for employees because the total of time they spentin their particular banks. Work stress like work overload not only has negativeconsequences on job performance but also related to employee’s intentions todepart or quit from an organization Jamal, (2007). He also defines earlier in2005 that job stress is an employee’s feedback to the qualities of workingenvironment that seem emotionally and physically threating.
Lately, during this current yearworkplace stress has become a frequent problem for human resource managers Aveyet.al, (2009). On the negative side employees who are through and experiencehigh level of work place stress tend to be unhealthy, poorly motivated and lessproductive in job performance context. Workplace stress in a physiologicalmethod theorized, a damaging psychological state which the outcome of aninteraction between person and their work environment. It is the typical ofwork environment that effect the on the physically and emotionally Arshadi and Damiri,(2013).Masood, (2013) has discussed thatemployees were try to work with an energized ability and full of determinationeven though they not being provided with the necessary support and still theyneed to execute their task with goodness. Employees tend to avoid stress attheir workplace results decrease directly affects their performance.
Dhankar,(2015) do a research the work stress among employees of banking sector. Thereare few factors like work overload, ambiguity, pressure, conflict among otheremployees are triggered the stress. Stress nowadays has huge series effects onemployee’s performance and behaviour.
In overall, stress greatly affectsproductivity and performance of organizations. Several factors of occupationalstress have been defined in the literature such as work load, careeradvancement, management style, working relationship, organizational support,reward, job autonomy, and physical environment Lu et al., (2012).
2.2 DEPENDANT VARIABLE2.2.1 Employee Performance AccordingAnitha, (2014) employee performance is the results gained and achievement madeat work. Performance means to keeping up plans while going for the outcomes.Employee performance also notice monetary or non-monetary results of theemployee that has affect directly with organization performance and itssuccess.
Thetheory of performance is more relevance to individuals and organizations alike.The great relevance of individuals and job performance as being measure inempirical research can been seen as the outcomes of total performance to theorganization. Entirely, performance is related to individual’s capability torecognize his or her job goals, fulfil the potentials as successfully achievejob targets meet the standard set by the organization James, (2015)However,non-financial indicators should also be considered in order to achieveperformance that is usually developed in line with the results of humanresources such as turnover, absenteeism, job satisfaction, productivity andquality Abdalkrim, (2013). Toachieve success and achieve success, organizations must give priority toemployee performance.
Employee performance is about how employees achieve a setof organization and linking behaviour of their interpersonal norms oforganization (Imran et al., 2012) and finish the job, agreed to by the staffwith timely, effective and efficient, as determined by the employer Tinofirei, (2011).Accordingto Trivellas et al. (2010), employee performance can be affected by a number ofconditions such as job satisfaction, work environment, motivation and stress.The engagement of employee is the key to see high levels of employeeperformance shown in variety of research Mone and London, (2010)Humanresources practices coordinated internal operations to affect abilities,motivation, and employee opportunity (AMO) in a way that has the potentialharmony. Intrinsically, we comprehensively cover the different aspects of thehuman resource system can affect the ability, motivation, and opportunity tocontribute and potentially effective alignment between them Boxall and Macky, (2008);Wood and Wall, (2007). 2.3 Relationship between IndependentVariable and Dependant VariableThissection is to identify the relationship between independent variables anddependent variable.
There is a three relationship between independent anddependent variable. 2.3.1 Relationship between JobDemand and Employee Performance.Bruggen,(2015) describe that the relationship between job demand or workload andemployee performance has been study in many research. The negative and positiveoutcome of job demand stressor has been discovered in the past examination butresults are variety.
From his research, on the side of positive results betweenjob demand and employee performance, employees need certain level of stresslevel to catalyst to achieve a better result of performance at their best. Jobdemand impact employee more on negative side, when an employee cannot cope withstress becoming dysfunctional to organizational target. Bruggen also find outemployees who are work under stress, tend to became constricted thinker andperformance deficiency.Xanthopoulouet al.
(2007) carry out in their study, the job demands are the key player ofburnout that means fatigue of emotional and physical strength from thecontinued stress and frustration. This excessive workload or job demand isvital matter to look up by an organization in order to maintain employee’shealth to perform the best for their organization.Accordingto Ali et al. (2014) found that workload, role conflict, and inadequatemonitory reward are the prime reasons of causing stress in employees that leadsto reduced employee efficiency. As the saying goes, if you look after youremployee so, the rest will look after itself.
2.3.2 Relationship between TimePressure and Employee Performance Job demand and time pressure inbanking sector to finish too much work in short time summons the load of stressthat will decrease employee performances as Mahmood et al., (2010) discussedthe job demand cannot be complete with an excessive pressure, motivation slowlydisappear, no more enjoyable in doing work, employees started to feel lostinterest in work and lastly the employee performances decline from day to day. Shahid et al. (2011) pointed outcommon employees work in banking sector felt stress in doing their job and inreturn their job performance is decline. Since of work is overload and timepressure, employee cannot to manage work life and effect their relation withothers especially family. Proper way should be taken to decrease stress andmanage the performance of employees in banking sector.
The research made by Lopes andKachalia, (2016) has pinned out time pressures is one of key source of stress.Due to the results, this is the major cause of employee’s poor performances.Hence, there are more negative relation in time pressure than a positiverelation. Stress are affected employees in the way of cognitive, tendency toperform job and their moral. Imrab et al. (2013) found that majorissues with time has negative impact to the employee performances.
Negativeeffect not only at the employees but also encumbers organizational outcome.Employees which working constantly under pressure will reduce theirconcentration, commitment and highly potential to commit slackness. Generallythe research concluded time pressure decreasing employee performances. 2.3.
3 Relationship between Salaryand Employee Performance Pravinand Kishor, (2015) concluded ‘fat salary’ which means higher salary compared toother working sector in the job market can motivating employees to enhancetheir performances although money is not the only motivator available. Today’sgeneration willing to become workaholic if the outcome is worth the effort. Salary is a type of monetary reward.It has the strong impacts in attitude, contribution, commitment and attitude ofan employees toward their organization. The great influence toward employee’sperformance cause the organization reward their employees efficiently toincrease their productivity and loyalty directly enhance organization’s successAmah et al.
, (2013). Pongoh, (2013) recommendorganizations must spare more consideration on the salary of the employeebecause the previous research has indicated salary is the main reason of turnover. So this result are showing salary is not just affect employeeperformances but in worsen situation employee may leave the organizations. 2.4Research Framework IndependentVariable DependentVariable Workplace Stress Job Demand Time Pressure Salary Employee Performance Awadh et.al.
, (2015)Figure 1Figure1 shows the general independent variable, which is workplace stress andspecific independent variables which are job demand, time pressure and salary.The dependent variable is employee performance. 2.5Research HypothesisThehypotheses that we could find based on the research framework as above is: -H1:There is a relationship between job demand and employee performance.
H2:There is a relationship between time pressure and employee performance.H3:There is a relationship between salary and employee performance.