Abstract:
Previous to this study, many researches are done by different researchers on the concept
of stress and revealed that it has a significant impact on the performance of employees.
Moreover, a preliminary investigation undertaken by the researcher indicated that there
are various stressful situations in banks. Therefore, this study was conducted to understand
the level and relationship between stress and performance and its impact on employees’
performance specifically in CBE Jimma Town branches. For simplicity, in this study, the
independent variable i.e. stress was divided in to its dimensions work related stress,
organizational related stress, and individual related stress. The research design for this
particular study is cross-sectional field survey research design. For this study, stratified
simple random sampling method was used and 130 employees were selected as a sample
of the study. The standardized measurement scales were adopted and distributed to 130
employees in the form of questionnaires but, 125 of the questionnaires were valid for
analysis. Descriptive statistics such as; mean, standard deviation, and inferential statistics
such as; correlation, multiple regression analysis were used to analyze the data in SPSS
(Statistical Package for Social Sciences). The results of the study revealed that all factors
of stress have negative impact on the performance employees’. Comparatively, work
related and organization related stress factors have the highest mean value compared to
the individual related stress factors of the study variables. The inferential analysis results
also indicate that stress have negatively medium impact on employees’ performance.
Therefore, the findings indicate that stress have a negative impact on the performance of
employees’ in Commercial Bank of Ethiopia. Finally, the study recommended that to
reduce stress the current work schedule needs to be adjusted and workload should be lifted
from employees, assigning reasonable level of responsibility, promote positive
organizational culture and improve the organizational climate and prepare a welldocumented organization specific stress management programs.
