job stress

Int. J. Mgmt Res. & Bus. Strat. 2013

Anil Chandhok and Mansi Monga, 2013
ISSN 2319-345X www.ijmrbs.com
Vol. 2, No. 1, January 2013
© 2013 IJMRBS. All Rights Reserved

IMPACT OF JOB STRESS ON EMPLOYEE 'S
PERFORMANCE OF SALES DEPARTMENT:
A COMPARATIVE STUDY OF LIC AND BAJAJ
ALLIANZ LIFE INSURANCE COMPANY LTD
IN THE SELECTED CITIES OF HARYANA
Anil Chandhok1* and Mansi Monga1

*Corresponding Author: Anil Chandhok,  [e-mail]

Over the years, a lot of research has been carried out in the realm of work place stress and it has been emphatically proven that intense or prolonged stress leads to a negative impact on one’s mental and physical well being. Even though a fair degree of stress may be felt in all occupations, some work places have been known to experience more stress compared to others. Life insurance sector is one of the sectors were the employee’s monetary benefits are based on their sales targets although reasonable salary is given to them which is fixed and not based on target achievements. It is a normal tendency, people avoid life insurance and prefers to invest their money where high returns are expected. Keeping this philosophy in mind, it is a challenge for the sales team to convince the prospects and sell them insurance products. This research paper is an attempt to find out the degree of stress between the employee’s of LIC and the employee’s of Bajaj Allianz Life Insurance Company.
Keywords: Insurance companies, Job stress, Emphatic, Emotional

INTRODUCTION

At a conceptual level, three types of relationships were proposed to exist between the measures

Relationship between Stress and Work
Performance

of job stress and job performance (Jamal, 2007).

Various studies have been conducted to examine

One is a negative linear relationship, when

the relationship between job stress and job performance. Job performance can be viewed

productivity decreases with stress (distress).

as an activity in which an individual is able to accomplish the task assigned to him/her

of stress, thereby implying a positive linear

successfully, subject to the normal constraints of reasonable utilization of the available resources.

be a U-shaped or a curvilinear relationship

1

Productivity can also increase as a consequence relationship between the two. Thirdly, there could wherein, mild stress could increase the

Professor, Maharishi Markandeshwar University, M M University, Mullana (Ambala).

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Int. J. Mgmt Res. & Bus. Strat. 2013

Anil Chandhok and Mansi Monga, 2013

productivity initially up to a peak and then it

financial cover at a reasonable cost. Since life

declines as the person descends into a state of

insurance contracts are long term contracts and

distress. Alternately, there need not be any quantifiable relationship between the two.

during the currency of the policy , it requires a variety of services, need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of
LIC took place and large numbers of new branch offices were opened. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

INDUSTRY PROFILE
Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in
Calcutta was the first life insurance company on
Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of
European community and Indian natives were not being insured by these companies. Bharat
Insurance Company (1896) was also one of such companies inspired by nationalism.

RESEARCH OBJECTIVES

The Insurance Act 1938 was the first legislation

1. To explore comparative difference in the job stress of employees of Life Insurance
Corporation of India and Bajaj Allianz life insurance company ltd.

governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum

2. To analyze the impact of job stress on performance of employees.

in 1944 when a bill to amend the Life Insurance
Act 1938 was introduced in the Legislative

3. To suggest some policy recommendations that can be adopted to improve the performance of the employees.

Assembly. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an

4. To study the recent practices adopted by these organizations to reduce stress.

Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the

Hypothesis

19th of June 1956, and the Life Insurance

H01: There is no significant difference in the stress level of the Life Insurance
Corporation of India and Bajaj Allianz insurance Company ltd.

Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much more widely and in particular

H02: There is no linear co-relation between job stress and work performance of employees.

to the rural areas with a view to reach all insurable persons in the country, providing them adequate

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Anil Chandhok and Mansi Monga, 2013

Officers of Life Insurance Corporation of India and
Bajaj Allianz Insurance Limited.

Scope of the Study
To under take the study, convenience sampling method was used so that the respondent can give

SAMPLE SIZE

a clear and fair picture about his/her feeling

A sample of 160 employees have been contacted
(80 each from LIC and BALIC). These employees are working for New Business Development. The samples were taken from the selected branches falling in the state of Haryana.

towards the stress at work place. The study is limited to the three levels of employees designated as Branch Manager/Assistant Branch
Manager Sales Manager and Development

Table 1: Are you Satisfied With the Benefits Being Provided by the Company?
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Strongly Satisfied

35

41

2

Satisfied

38

30

3

Moderate

7

9

4

Dissatisfied

-

-

5

Strongly Dissatisfied

-

-

Total

80

80

Source: Self prepared questionnaire and field survey

Table 2: What More Benefits do you Expect from the Company for Removing Your Job Stress?
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Bonus

21

19

2

More Salary

23

16

3

Promotion

18

26

4

Reward

13

14

5

Medical Facility

5

5

Total

80

80

Source: Self prepared questionnaire and field survey

Table 3: Are You Satisfied With The Working Environment Provided By The Company?
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Yes

30

65

2

No

50

15

Total

80

80

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Int. J. Mgmt Res. & Bus. Strat. 2013

Anil Chandhok and Mansi Monga, 2013

Table 4: Are You Satisfied With The Incentive Plans Made By The Company?
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Strongly Agree

58

15

2

Agree

22

19

3

Moderate

-

21

4

Disagree

-

16

5

Strongly disagree

-

19

Total

80

80

Source: Self prepared questionnaire and field survey

Table 5: Analyze the Factors Which Are Responsible for Work Overload
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Co-workers are inefficient

32

13

2

Cannot consult with worker

2

34

3

Complete work at home

5

10

4

Shortage of help

41

23

Total

80

80

Source: Self prepared questionnaire and field survey

Table 6: Which of the Following Gives Maximum Stress?
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Work overload

34

39

2

Work under load

-

16

3

Time pressure

15

20

4

Health

31

5

5

Total

80

80

Source: Self prepared questionnaire and field survey

Table 7: Analyze the Stress Level of Employees on the Basis of These Factors
S. No.

Contents

Life Insurance Corporation of India

Bajaj Allianz Insurance Company Ltd.

1

Work load

15

35

2

Time pressure

10

12

3

Promotion

19

25

4

Salary

11

8

5

Pension

25

0

Total

80

80

Source: Self prepared questionnaire and field survey

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Int. J. Mgmt Res. & Bus. Strat. 2013

Anil Chandhok and Mansi Monga, 2013

DATA ANALYSIS

In this case chi-square value is less than tabulated value so we can say that null hypothesis is accepted in this case.

Hypothesis 1
H0: There is no significant difference in the stress level of the life insurance corporation of India and Bajaj Allianz insurance Company ltd.

 O  E 
Chi-square =
E

H1: There is a significant difference in the stress level of the life insurance corporation of India and Bajaj Allianz insurance Company ltd.
Chi-square =

 O  E 
E

2

= 778/ 80 = 9.49 where O=observed frequency and E=expected frequency 2

Degree of freedom = n – 1
=5–1=4

= 152/80 = 1.9

= 9.725

where O=observed frequency and E=expected frequency In this case chi-square value is more than tabulated value so we can say that null hypothesis is rejected in this case.

Degree of freedom = n – 1
= 5 – 1 = 4 = 9.49

Hypothesis 2
Table 8: Table of Life Insurance Corporation of India

Contents

Observed frequency

Expected frequency

O–E

(O – E)2

(O-E)2/E

Work load

15

16

-1

1

0.062

Time pressure

10

16

-6

36

2.25

Promotion

19

16

3

9

0.56

Salary

11

16

-5

25

1.56

Pension

25

16

9

81

5.06

152

9.49

Total

Table 9: Bajaj Allianz Insurance Company Limited
Contents

Observed frequency

Expected frequency

O–E

(O – E)2

(O-E)2/E

Work load

35

16

19

361

22.56

Time pressure

12

16

-4

16

1

Promotion

25

16

9

81

5.06

Salary

8

16

-8

64

4

Pension

0

16

-16

256

16

778

48.62

Total

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Int. J. Mgmt Res. & Bus. Strat. 2013

 O  E 
Chi-square =
E

Anil Chandhok and Mansi Monga, 2013

 O  E 
Chi-square =
E

2

2

= 1016/ 80

= 514/80 = 6.425

= 63.5

where O=observed frequency and E=expected frequency where O=observed frequency and E=expected frequency Degree of freedom = n – 1
=5–1=4

Degree of freedom = n – 1

= 9.49

=5–1=4

In this case chi-square value is less than tabulated value so we can say that null hypothesis is accepted in this case.

= 9.725
In this case chi-square value is more than tabulated value so we can say that null hypothesis

H0: there is no linear co-relation between job stress and work performance of employees.

is rejected in this case.

FINDINGS

H1: there is a linear co-relation between job stress and work performance of employees.

After going through the research on Life insurance

Table 10: Life Insurance Corporation of India
Contents

Observed frequency

Expected frequency

O–E

(O – E)2

(O-E)2/E

Excellent

35

16

19

361

22.5

Above average

18

16

2

4

0.25

Average

15

16

1

1

0.06

Below average

18

16

2

4

0.25

Unsatisfactory

4

16

12

144

9

514

23.06

Total

Table 11: Bajaj Allianz Insurance Company Limited
Contents

Observed frequency

Expected frequency

O–E

(O – E)2

(O-E)2/E

Excellent

14

16

2

4

0.25

Above average

22

16

6

36

2.25

Average

40

16

24

576

36

Below average

4

16

12

144

9

Unsatisfactory

0

16

16

256

16

1016

63.5

Total

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Int. J. Mgmt Res. & Bus. Strat. 2013

Anil Chandhok and Mansi Monga, 2013

Corporation of India and Bajaj Allianz insurance
Company Ltd., it is observed that both the companies are having different atmosphere from each other and there are different factors of job stress causing stress on the employee’s performance . In Life Insurance Corporation of
India, job stress is less as compare to Bajaj Allianz
Insurance company Ltd. Bajaj Allianz insurance company Ltd has more job stress regarding time pressure, more supervision, fired without cause any time, insecurity about the job, work overload and on the side in case of Life Insurance
Corporation of India, Work load is a cause of concen for job stress. The object of preparing this report is to explore comparative difference in the job stress of employees of life insurance
Corporation of India and Bajaj Allianz life insurance company ltd. The important findings of the study are as under:

• In both the companies the working environment are safe. But the B.A.I.C.
Employee’s are more satisfied than the LIC employee’s. Because the work environment is better in private companies.

• Benefits which are provided by Bajaj Allianz insurance company ltd , their employees are more satisfied as compare to the LIC employee’s. LIC employees are more demanding. • The factor over load at work gives more pressure on the job of all employees’ whether they belong to public or private. but in LIC there is also red tape which is not in B.A.I.C.L and the LIC employee’s get much more time as compare to B.A.I.C.L. In private companies time is less provided to the employee’s to complete the task.

• The training facilities are provided by the both companies but the employees of B.A.I.C.L are more strongly agreed than the LIC employee’s.
• Impact of training on the performance of the employee’s is better in the B.A.I.C.L as compare to the LIC because training facility is better in the B.A.I.C.L .Private companies are very much active.
• As compare to B.A.I.C.L, LIC employee’s get better incentives because private companies employee’s are having many target to achieve on time they are having so much time pressure as compared to public companies.

• Employee’s of both the companies desires more benefits like bonus, promotion which helps to brighten their careers.

• The factor of poor pension is prevailing in the
LIC and they have stable salaries or less salary as compared to the B.A.I.C.L.

• As compare to B.A.I.C.L, LIC has low job stress regarding competition in the market because LIC has 71% total share of the market and the private insurance sector has 29% share in the market.

• Insecurity of job regarding fired without cause is so much in B.A.I.C.L but not in LIC. Insecurity regarding transfer is more in B.A.I.C.L as compare to the LIC.

• As compare to the LIC, new insurance plans are quickly communicated to the B.A.I.C.L because private companies are more active than the public companies. They are faster and desire to capture the market as soon as possible. • Work overload has several reasons like coworkers are inefficient, cannot consult with others, complete work at home, shortage of help etc. In LIC employees are less efficient

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Int. J. Mgmt Res. & Bus. Strat. 2013

Anil Chandhok and Mansi Monga, 2013

Allianz insurance company ltd has faced more job stress as compared to the Life Insurance
Corporation of India due to more targets to be achieved at one or the other time, they have lack of time as compared to Life Insurance
Corporation of India. Now a day’s infrastructure of both the companies is good. Stress levels of
LIC employees is less, they have enough time to complete the targets on time. They have job security for the life time but the employees of Bajaj
Allianz insurance company ltd are having less job security because they can be fired anytime without a big cause. Working hours of LIC is less as compare to B.A.I.C.L. B.A.I.C.L has provided more benefits to reduce the stress level of the employees, is providing them best environment for them.

than the B.A.I.C.L, but they can discuss the problems with the others like colleagues which is not much possible in the B.A.I.C.L. Work under load is more in the LIC as compare to the B.A.I.C.L due too little responsibility, little chance for growth and in B.A.I.C.L work under load is also due to the factor over qualified for job. • Barriers which affected on job is different in all the companies like the job not suited to the person according to his/her qualification, ability to perform the task is more in LIC as compare to the B.A.I.C.L and sometimes work goes unrecognized. • The factor which gives the maximum stress is different for each person, in LIC which gives maximum stress is health related problems because most of the employee’s working there is not from young generation they are mostly above 30 years old. Time pressure is more in
B.A.I.C.L and work overload gives maximum stress which is also more in B.A.I.C.L .

BIBLIOGRAPHY
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Int. J. Mgmt Res. & Bus. Strat. 2013

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