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STRESS Powered By Docstoc
Definition: Stress occurs when an individual
cannot adequately respond to job or org. stimuli
without damage (e.g., fatigue, worry, heart disease).

Established Research:

                         (giving a speech, studying for a test)

 Conclusion: Nearly all work-induced stress is undesirable,
 not a bell-shaped curve

1. Corporate self-interest
   ● #1 Fringe benefit?
   ● Popular prescription drugs?
   ● How did stress get linked to
     health care costs? Control Data

2. Liability; worker’s compensation

3. Key people most affected

4. Moral/ethical/humanistic reasons
    Corporate Self-Interest: Reducing
           Health Care Costs
• Control Data Corp. 1987 case
• 2007: Overweight → 11.65 claims/100 FT
        Avg. weight → 5.80 claims/100 FT

• Wellmark: Has offered financial awards for
  some lifestyle activities

• Selection practices. Do not hire those who
  consume alcohol or smoke (e.g., Pella,
  Lucullan’s, Wellmark)

• Choice of “carrot” vs. “stick”
  COMPANY                  POLICY
Gannett, General Mills, Pepsi,   Monthly surcharge for smokers
Sauer-Danfoss, Iowa Telecom
Macys, Gannett

Hy-Vee                           $10 Health Insurance reduction
                                 for nonsmokers
GuideOne                         Discounts for not smoking or
                                 drinking; extra coverage when
                                 volunteering & church attendance
Alabama, South Carolina          $25/month Health Insurance
                                 surcharge for use of tobacco
                                 products or excessive weight
AmeriGas                         Get check-up or lose health
Turner Broadcasting              First to not hire smokers
Union Pacific                    (where legal to do so)
 Sidebar on Employees Who Smoke
• Smoking on decline in U.S: 1 in 5 adults,
  23% of Iowans, but growing world wide
• Center for Disease Control says smoking
  costs the nation $167 billion
• Federal studies show smokers cost an average
  business $3400 more per year because of
  increased medical expenses and absenteeism
• Over a lifetime, employees who smoke incur
  $16,000 more in medical bills
 Sidebar on Employees Who Smoke
• Growing evidence that financial incentives can
  induce people to quit smoking

• GE: 878 employees received info on smoking
  cessation. Divided into non-compensated and
  compensated groups.

• One group got $100 for completing cessation
  program, $250 if they stopped w/in 6 months of
  being in the study and $400 if they remained smoke
  free 6 months later
 Sidebar on Employees Who Smoke
• Results
                      % Smoke-Free
                  Compensated   Not Compensated
End of First Year:    14.7%          5%
At 18 months:         9.4%           3.6%

• The “ship has sailed” with respect to smoking bans
  at work and in the community. Can obesity
  management be far behind?
       Sidebar: Obese Employees
Conference Board Data:
• One in 3 adults is obese (BMI > 30)
• Surgeon General says obesity costs the nation >
  $100 billion
• Obesity accounts for 5-7% of health care costs. For
  a company of 1000 employees, an extra $395,000

• Programs to combat obesity on the rise (e.g., Google
  & Caterpillar put healthy food in vending
  machines, cafeterias charge less for healthy food)
• Alabama and S.C. will charge employees w/BMI >
  35 $25/month for insurance that is otherwise free
     Reducing Liability and
   Worker’s Compensation Costs
• Extension of safe working
  environment (Health & Safety
  Work Act of 1974)

• Stress accounts for as much as 14
  % of occupational disease claims

• As work becomes increasingly
  mental and service-oriented, as
  opposed to manual, what will
    Key People Most Affected

• Loss of highly valued
  senior people
• Relations to stock
  prices and public
• Impact on
• Hypothetical cost
  figures (next slide)
  Stress Costs: Heart Disease Estimate
(1) Number of employees                       4,000
(2) Employees aged 45 to 64 (.25 of line 1) 1,000
(3) Estimated deaths due to heart disease per
   year (.006 x line 2)                           6
(4) Estimated premature retirements due to
   heart problems per year (.003 x line 2)        3
(5) Personnel losses: Sum of lines 3 and 4        9
(6) Annual replacement costs for experienced_____
   employees ($24,887 x line 5)            $223,983
(Original source: Ivancevich & Matteson, Stress and Work, 1980, updated for 2008)

1. Corporate self-interest: health care costs

2. Liability; worker’s compensation

3. Key people most affected

4. Moral/ethical/humanistic reasons
   1985: 27% firms offered stress mgmt
   1996: 40%
   2007: 68% but now labeled wellness
   Job Stress somewhat predictable….

               Occupational Stress Rankings
High Stress                                                         Low Stress

1. U.S. President                                               250. Music instrument repairer
2. Firefighter                                                  249. Florist
3. Senior Executive                                             246. Actuary
4. Taxi driver                                                  206. Computer Programmer
5. Surgeon                                                      122. Mechanical Engineer
10. Air Traffic Controller                                      119. Economist
20. Stockbroker                                                 103. Market Researcher

Criteria: Overtime, quotas, deadlines, competitiveness, physical
          demands, hazards, initiative required, stamina, win-lose
          situations, and working in the public eye
Source: Wall Street Journal, 1996; based on 250 jobs; updated by Jobs Rated Almanac, 6 th ed. 2002
                TYPES OF STRESS
1. General Stress

2. Non-work stress

3. Work stress

   a.   Air traffic controllers
   b.   NASA workers
   c.   OSHA layoff studies
   d.   Accountants
                                A Managerial Model of Stress
    Antecedents                                                      Intermediary            Health
    (Stressors)                   Stress                              Outcomes            Consequences
Physical Environment           Perceived                          Physiological
                                                                                         •Coronary heart
                                  and                             •Cholesterol
Individual Factors             Objective                          •Triglycerides
•Work overload                  Stress                            •Blood pressure
•Role conflict                 Measures                           •Blood glucose
•Role ambiguity                                                   •Catecholamines
•Responsibility                                                   •Free radicals
  for others
•Underutilization                                                 Behavioral
  of skills                                                       •Job satisfaction
                        Individual Differences                                           •Apathy
•Resource inadequacy                                              •Career satisfaction
                         (cognitive/affective)                                           •Nervous
                                                                  •Life satisfaction
                        •Type A/B                                                          exhaustion
Group Factors                                                     •Performance
                        •Locus of control                                                •Alcoholism
•Cohesion                                                         •Absenteeism
•Conflict               •Tolerance for                            •Turnover
•Satisfaction             ambiguity                               •Accidents
                        •Need for achievement                     •Grievances
Org. Factors            •Self-esteem
•Climate                                                    Individual Differences
•Technology             Corporate Practices
                                                          (demographics & behavior)
•Control systems        •On-site child care
•Job Design             •EAPs
                                                          •Age, Sex
                        •Wellness programs
                                                          •Occupation, Hours worked
Non-Organizational                                        •Health status
•Family relations                                         •Alcohol and tobacco use
•Economic status                                          •Exercise and diet
•Work/family conflict               (moderator factors)   •Family support
Antecedents of Stress (Stressors) where
Managers Can Intervene (Column #1)
    Physical Environment

    Individual factors
    • ↑Work overload → ↑ Stress
           ■ Quantitative (perceptual or
           ■ Qualitative (KSAs)

    • ↑ Role conflict → ↑ Stress

    • ↑ Role ambiguity → ↑ Stress

    • ↑ Responsibility for others → ↑ Stress

    • ↑ Underutilization of skills → ↑ Stress

    • ↑ Resource inadequacy → ↑ Stress
  Individual Differences
and Corporate Interventions
   Cognitive/Affective Differences
   • Type A/B
   • Locus of control
   • Tolerance for ambiguity
   • Need for achievement
   • Self-esteem

   Corporate Interventions
   • On-site child care
   • Employee assistance programs (EAPs)
   • Wellness programs

Type A
  High achievement orientation
  Restless; impatient
  Constant sense of time urgency

Type B
  No time urgency or resulting impatience
  Feels no need to display/discuss achievements
  Plays for fun and relaxation
  Can relax without guilt
1. As report more work overload

2. As work more hours

3. As have higher serum cholesterol
   ratings in college students

4. The “A” trait best predictor of CHD
   among those less than 49 years

5. Most damaging components of “A” are
   being distrustful and hostile

        A                     B

Fast workers              Patient

Emphasizes quantity       Tactful

Works long hours          Reflective

Rarely creative           Creative

Sometimes makes poor      Make careful
 decisions because they    decisions
 work too fast
1. Dissipation/Health Promotion
   a. Exercise
   b. Bio-feedback; massage
   c. Overload/role conflict reduction
       • office concierge; go-to-meeting
   d. Newsletters-health tips

2. Selection & Placement

3. Training (conflict mgmt, time mgmt,
   “lunch & learns”, ADR, ombudpersons)

4. Job Redesign & Work Scheduling
(lessen role ambiguity, role conflict,
reduce underutilization of skills)
            Schaubroeck et al. Article

• In a rare 7-year longitudinal study, the effects of job
  complexity and Type A personality are evaluated
  among police and fire dept. employees.

• What are the 2 types of job complexity discussed?
  What is the dependent variable?

• Re-state the central hypothesis of the study in every
  day language
    Schaubroeck et al. Hypothesis

 Job Complexity
Job Complexity                        Cardiovascular
• psychological                         disorder

• task-person

            Type A/B Personality
            (true for As but not Bs)
                   (moderator variable)
           Schaubroeck et al. Article
• Sampling: 303 firefighters & police in 1982
    251 provided usable data
    Surveyed again in 1989, 171 (71%) return surveys
    110 provide usable data (had to keep same job)

• Measures: (1) 5-level Type A/B (high scores more
   Type A), (2) Survey items on cardio disorders and
   psychological complexity, (3) Control variables like
   body mass, and (4) Task-person complexity by DOT

• What were the results (Table 1)?
• Was the hypothesis supported (Table 2)?
                 Schaubroeck et. al.

                                                Predicted &
                                                found for Type
Job Complexity

                                                Predicted for Type B

                                                Found for Type B

                 Low                               High
                       Cardiovascular Disorder/Illness
• Poses the Q: Could Americans’ poor health
  displace us as a world leader in productivity?

• Reports survey results indicating that
  employers w/health programs have less sick
  leave, disability, & lower health care usage.

• Review 6 wellness tools: wireless technology,
  integrated solutions, telephone health
  coaching, programs to enhance participation,
  incentives, & expanded programs
Perryman et al. (2010) Take-Aways
• Discusses CEO health and corporate well-being.
  Issues of personal privacy, corporate disclosure,
  succession planning & fiduciary responsibility of the
  board to shareholders may collide.

• The frequency of CEO resignations for health
  reasons is unknown.

• The representational function of the CEO often
  results in s/he perceived as the embodiment of the
  firm. If the CEO is perceived healthy, so is the firm
  and vice versa
          Perryman et al. (2010)
• As public figures, CEOs may not have the same
  privacy rights as others. Authors imply they favor
  voluntary and prompt disclosures of CEO medical

• The SEC requires disclose of “material information”
  that can affect the market in publicly-held firms.
  Does CEO health qualify as material information?
   Brenda Barnes – Sara Lee

• Being healthy can be seen as a BFOQ for the CEO
         Perryman et al. (2010)
• To prepare for unexpected health problems, have
  (1) a list of true potential internal and external
  successors and (2) a list emergency, interim
  successors. Not clear but the 2nd list seems to be
  temporary CEOs.

• They offer guidelines clearly favoring more
  disclosure, based on idea that if CEO death
  depresses stock prices (shareholder wealth),
  CEO illness will do the same. Perhaps even
  worse because poor health entails uncertainty.

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