AN EFFECT OF JOB STRESS AND SATISFACTION AMONG IT

SECTOR EMPLOYEES IN KATHMANDU

BY
NILISH SHAKYA
LUC Registration: LC00015002071

A graduate research project report proposal submitted in partial fulfillment of the requirement for
the degree of MASTER OF BUSINESS ADMINISTRATION

At the
International College of Management and IT (IIMS)
Lincoln University College

Kathmandu, Nepal
October 2023
Table Of Contents

1. Background of the Problem

2. Research Gap
3. Problem Statement
4. Purpose of the Study
5. Research Questions/Hypotheses
6. Rationale of the Study
7. Literature Review
8. Conceptual Review
9. Research Methods
10. References
Background of the Problem

In many of today’s jobs, employees are confronted with high demands. Particularly in the
information technology (IT) sector, because of globalization, outsourcing, and increasing
competition, employees are under ever-escalating pressure to meet deadlines and reduce
response time to customer requests . Time pressure is one of the most influential stressors and
produces poor-well being for the employee . Even though the employees “Working Hours Act”
lays down the maximum length of the working day (8 hr) and regulates overtime, most
organizations ( Christine J. Syrek, Ella Apostel, and Conny H. Antoni, 2013 ). Stress is
becoming one of the most influencing factors in any of the organizations which destroys the
working culture of employees as well as its effects in the personal life also. The effect of stress
among employees depends on the nature of the work, working place, target set by the
organization, and time duration for accomplishment of tasks. The level of stress an employee
experiences largely depends on the type of the job and the experience of the employee. Some
jobs are more stressful than others. Likewise, more experienced employees can better handle a
stressful situation than an inexperienced employee. ( Dr. Daniel Solomon, 2017) . Workload
environment can be one of the factors for the burnout as well as job satisfaction details how
much you can drive the work stress in the company. Workload-related stress is characterized by
resistance to going to work and a sense of ongoing pressure together with general physiological,
mental, and behavioral stress symptoms. Therefore, stress is the potentially harmful physical and
emotional reactions that occur when the working environment is not conducive to the employee's
skills, resources, or needs.

Performance from employees is crucial to the success of an association. High levels of stress
experienced in the workplace might dramatically slow down employee performance. Every
aspect of life, including business, has some level of stress. Employees who work for various
organizations must manage stress. Due to significant stressors, IT workers in particular
experience high levels of stress. The performance of dropped associations, dropped hands,
overall performance, high staff development, and absence due to health issues are all impacted
by stress (Kavyavarshini, Dr. R. Harihara Sudhan, 2023). High employee satisfaction, significant
workload stress, subpar performance, and slow pace social skills constitute typical symptoms of
workplace stress. Stress in the workplace frequently demonstrates up as high workload, pressure,
subpar performance, and subpar personal performance.Stress in the workplace frequently shows
up as high workload, pressure, subpar performance, and inadequate personal performance.
(K.D.V. Prasad, Dr. Rajesh Vaidya, V Anil Kumar, 2016). Unclear roles, excessive conflict, and
challenging work can create stress in a positive way. The types of jobs that employees choose in
stressful situations are different, and those who are given jobs that match their skills can
withstand stress more than those who are not.

When a person's ability to handle the stressor's magnitude is exceeded, stress results. Work stress
is described as an uncomfortable emotional scenario that an individual experiences when the
demands of a work are not matched with his capacity to handle the circumstance. Stress can have
an impact on one's physical, mental, or behavioral health: Humans' physiological hormone
release sets off their fight-or- flight reaction. They may fight more effectively or run more
quickly thanks to these hormones. They enhance perspiration, blood pressure, and heart rate.
Heart disease and stress are related. Prolonged stress increases the tension on the arteries because
it raises blood pressure and heart rate( Kavyavarshini, Dr. R. Harihara Sudhan, 2023).
( Dr. Daniel Solomon, 2017) in an organization the environment of the workplace plays an
important role in the workplace. If the environment of an organization is good the level of
productivity increases. The working environment in Kathmandu's IT sector has a significant
impact on both the growth of the economy and the daily lives of employees. High levels of
work-related stress can cause burnout and lower job satisfaction, which will ultimately make it
more difficult to keep valuable employees. The business world is known for its busy and
demanding work environment, where employees must constantly adapt to new technological
advancements and deal with pressing deadlines as well as challenging problems. This study aims
to investigate specific stressful factors that have an impact on IT workers in Kathmandu,
including overwork, lengthy working hours, and productivity expectations. In order to reduce
stress and boost job satisfaction for individuals who work in the IT industry, this study focuses
on understanding the underlying causes of stress in the workplace and delivering strategies and
interventions (Bayad Jamal and Govand Anwar, 2021). The findings of this study could help
Kathmandu's flourishing IT industry by promoting healthy, hygienic, and better working
conditions for IT professionals as well as the entire sector.Some people like to work and they
find working an important part of their lives. Role conflict is taken as an important job stressor
that is faced due to the multiple roles. Role conflicts increase job stress and decrease job
satisfaction among both men and women . Role conflicts have a greater impact on job
satisfaction among employees who have a high centrality of the family role.

Research Gap

While going through the research, it was found that little research has been done regarding job
satisfaction of IT professionals in Kathmandu Valley. Thus, this study will provide a new light in
the upward trend of the IT industry. The HR concept is still new in Nepal and the IT sector has a
very short background but we cannot neglect the fact that for any successful industry there
should be strong human power. The mentioned literature provides various empirical evidence
that support the basic hypothesis of the research that job Satisfaction plays a significant role for
employees. There is much research conducted nationally and internationally where researchers
have compared job satisfaction among employees of different gender, age group and job
position. But there are also various other categories based on which differences in the job
satisfaction among employees can be compared. This research has studied the variance in the job
satisfaction level among employees of different education level, job tenure and salary level,
along with different gender, age-group and job position. In the context of Nepal, there are only a
few research articles which have made clear study on job Satisfaction of IT professionals. Even
though few authentic researches are available, they are not exactly linked to the job satisfaction
of employees. This research has made a clear study on finding out the job satisfaction of
employees in the IT field taking different factors into consideration such as education level, job
position, work tenure and salary level. Besides, the present study also makes an effort to identify
the important Job Satisfaction factors prioritized by the IT professionals and suggest necessary
changes that should be brought to improvise the current employee job satisfaction level in the IT
field.

Problem Statement

In today's paced information technology industry those working in this field often face
challenges. These include time for work, the need to acquire new skills through training,
extended work hours and heavy workloads to ensure optimal efficiency and productivity. It is
crucial to acknowledge the impact these pressures have on the success and stability of IT
organizations as well as the well being of IT professionals.

Occupational stress is defined as the perception of a discrepancy between environmental

demands (stressors) and individual capacities to fill these demands. The causes of occupational
stress include perceived loss of job and security, sitting for long periods of time or heavy lifting,
lack of safety, complexity of repetitiveness and lack of autonomy in the job. In addition,
occupational stress is caused by lack of resources and equipment; work schedules— such as
working late or overtime and organizational climate are considered as contributors to employee
stress. Occupational stress often shows high dissatisfaction among the employees, job mobility,
burnout, poor work performance and less effective interpersonal relations at work(K.D.V. Prasad,
Dr. Rajesh Vaidya, V Anil Kumar, 2016).

The effects of workplace stress in the IT industry can take many different forms, including
physical, mental and emotional symptoms. Workers may experience physical symptoms such as
fatigue, headaches and insomnia. Their overall job satisfaction and engagement may be affected
by emotional issues such as anxiety, depression, and burnout. In addition, the IT industry
continues to suffer from a global talent shortage; This will have a significant impact on
workplace stress as employees seek harmony and stress-freeness.

(C.K, job stress and job satisfaction) Says in their article that job stress directly affects employee
job satisfaction, performance of the employee, and productivity of the organization. There are
opposite relationships among job stress and employee job satisfaction. If employees are not
feeling stress on their job and are satisfied with their job then this has a positive impact on
organization productivity. If employees feel stress on their job and are not satisfied with their job
then this has a negative impact on organization productivity.
According to the statement of the problem, there are a number of sources of workplace stress that
can affect employees job satisfaction, productivity, and performance. There haven't been
numerous research projects done in Nepal, though. Employee satisfaction, productivity, and
organizational performance will all suffer as a result of employees' lack of awareness of potential
root causes and solutions for stress in our nation.

Purpose of the Study

General Objective

The general objective of this study is to understand the effects of job stress and job satisfaction
among employees in the IT sector of kathmandu.

Specific Objectives

Speaking of the study's objective, it functions as a road map that guides us to the correct course
of action and enables us to defend the validity of our findings. The focus of this study is on how
job stress and satisfaction occurs among IT employees in Kathmandu its objectives are as
follows:

● To explore the factors that influence IT professionals' levels of occupational stress.

● To identify the causes of stress and its effect on performance at their workplace among
IT Sectors.

● To identify the relationship between job stress and job satisfaction among employees.

● To identify what work stress factors greatly contribute to decreasing performance among
IT employees.

Research Questions/Hypotheses

Research Question

Research questions are important to achieve research objectives. This study has the following
research questions:
1. What is the relationship between job stress and employee job satisfaction??
2. What are the main sources and factors that stress IT professionals' jobs in kathmandu?
3. How does the physical and mental health of Kathmandu IT professionals as a whole
respond to work stress? What are the effects in the long run?
4. Does employee performance decrease due to job stress?

Hypothesis

Followings are the hypothesis to test this study:

Hypothesis I: Role Conflict has a significant relationship with Job stress and satisfaction among
IT employees in Kathmandu.

Hypothesis II: Workload Pressure has a significant relationship with Job stress and satisfaction
among IT employees in Kathmandu.

Hypothesis III: Working Environment has a significant relationship with Job stress and
satisfaction among IT employees in Kathmandu.

Hypothesis IV: Emotional Exhaustion has a significant relationship with Job stress and
satisfaction among IT employees in Kathmandu.

Hypothesis V: Salary Pay Scale has a significant relationship with Job stress and satisfaction
among IT employees in Kathmandu.

Rationale of the Study

The purpose of the current study is to examine the employee job stress and satisfaction towards
work. The overall goal of this study is to comprehend the effect of workload and pressure
towards IT employees in Kathmandu as well as the significant variables influencing these work
forces. Finding out the root cause of employee satisfaction and job stress, which can help further
more solutions to enhance the work life balance.

The study specifically focuses on the following specific goals in order to achieve the study's
overall goals:

1. To investigate the link between job stress and salary pay scale.
2. To discuss the connection between online job stress and employee exhaustion.
3. To determine the connection between mental factors and job stress.
4. To discuss the connection between the working environment and job pressure.

Literature Review

Although many studies have been conducted to establish the relationship between job stress and
job satisfaction in various sectors, there are very few studies on the IT sector in the Valley. Since
IT is a business, employee satisfaction is crucial to innovation and performance. The technology
industry does everything it can to differentiate technology from other competitors, and one of the
best ways to do this is to serve customers with friendly, dedicated and supportive work.
Therefore, it is important for employees in the technology sector to have job satisfaction in order
to create customer satisfaction. Currently, research focuses on job-specific job stress and its
impact on employees' job satisfaction.

In the study of (MUHAMMAD RIAZ and team, 2016) different factors affect job satisfaction
positively or negatively. The researcher analyzed the impact of job stress on employee job
satisfaction between the employees of small scale industries in Madurai. The study examined
that two factors overload of work and role conflict negatively impact on employee job
satisfaction and different factors of physical environment positively impact on employee job
satisfaction. According to the researcher, to increase the productivity of an organization this is
important for an organization to understand the needs of the employees. The organization should
motivate their employees and give compensation and appraisals to their employees. In order to
increase the productivity and satisfaction level and life of their employees they should
compensate with equitable incentives.

(K.D.V. Prasad, Dr. Rajesh Vaidya, V Anil Kumar, 2016) This research studies the impact of
occupational stress on the employee performance at the workplace of Information Technology
sectors. The study suggests that IT sector employees are more affected due to workload, role
overload, career, organizational climate, lack of job control, and in particular job insecurity
which are out of scope of this paper. In many of today’s jobs, employees are confronted with
high demands. Particularly in the information technology (IT) sector, because of globalization,
outsourcing, and increasing competition, employees are under ever-escalating pressure to meet
deadlines and reduce response time to customer requests .Moreover, we assume that employees
who feel that their work is increasingly making greater demands on them and perceive that the
pressure at work rises, are less satisfied with their work–life balance who showed that work
pressure causes more work–home interference. Time pressure threatens the perceived balance, as
deploying more effort to meet work demands likely hinders available time to meet important
commitments at home. Employees’ private life activities are consequently focused on recovery,
which goes along with less time for the fulfillment of home demands and may result in less
satisfaction with their work–life balance. While researchers show that time pressure is positively
related to employees’ positive attitude to- ward life, we expect that time pressure hinders
employees to balance their life domains and is therefore related to less satisfaction with their
work–life balance. ( Christine J. Syrek, Ella Apostel, and Conny H. Antoni, 2013 ).

Dr. Daniel Solomon, (2017) has investigated the relationship between occupational stress, ill
health and organization commitment.they found that organizational stressors contributed
significantly to ill health and low organizational commitment. Role of stress among women
employees forming the majority workforce at the IT sector in Chennai and Coimbatore, she has
focused on the organizational role stress for the employees in the IT sector. She found in her
research that women face more stress than men in the organization and she viewed, to be more
specific, married women face more stress than unmarried women.

Conceptual Review

Conceptual framework basically guides the research, helps to determine what things have to be
measured and what statistical relationships the researcher will have to look for. The term job
satisfaction refers to the positive and negative attitude and feelings people have about their work
that leads to the satisfaction and dissatisfaction level to raise between the employees (Soonhee
Kim,2014). Job satisfaction represents a combination of positive and negative feelings that
workers realize during their working hours. Meanwhile, when a worker is employed in a
business organization, 11 Relationship with Supervisor Training and career Development
Compensation and Rewards Nature of work Working condition and environment Job Satisfaction
Belongingness to the organization he brings it with the needs, desires, and experience which
determine expectations that he has dismissed. Job satisfaction represents the extent to which
expectation is matched to real awards. Job satisfaction is linked to that individual’s perception in
the workplace (Bayad Jamal and Govand Anwar, 2021). The research deals with job satisfaction
and the factors that lead to job satisfaction. There are many aspects of job satisfaction, which
affect the level of job satisfaction in employees. There are also several studies and research
performed focused on the topic of job satisfaction and its level of affection towards the
employees. In the figure below, a conceptual framework is presented to explore the level of job
satisfaction among the employees. Below is the conceptual framework of the study that works as
the basis for the entire report. Following are the definitions of the terms which are mostly used in
this study.

Work Environment: In an organization the environment of workplace plays an important role in

workplace. If there is any problem in the workplace environment then the employees face many
problems. If the environment of an organization is good the level of productivity increases. It can
be challenging to meet deadlines, constantly develop and improve, and stay current with
technology changes. To evaluate the sources of workplace stress and its effects on the health of
IT staff, the study will look at the context of this workplace. Additionally, it aids in
understanding job satisfaction, which is crucial for workers' overall productivity and motivation.

The working environment in Kathmandu's IT sector has a significant impact on both the growth
of the economy and the daily lives of employees. High levels of work-related stress can cause
burnout and lower job satisfaction, which will ultimately make it more difficult to keep valuable
employees.

Work Pressure: The business world is known for its busy and requesting work environment,
where employees must constantly adapt to new technological advancements and deal with
pressing deadlines as well as challenging problems. IT professionals who struggle to meet the
ever-increasing demands of their jobs may experience physical and mental health issues. (Deasy
Lastya Sari, 2020)This study aims to investigate specific stressful factors that have an impact on
IT workers in Kathmandu, including overwork, lengthy working hours, and productivity
expectations. In order to reduce stress and boost job satisfaction for individuals who work in the
IT industry, this study focuses on understanding the underlying causes of stress in the workplace
and delivering strategies and interventions. The findings of this study could help Kathmandu's
flourishing IT industry by promoting healthy, hygienic, and better working conditions for IT
professionals as well as the entire sector.

Job Satisfaction: Employee satisfaction has been a key area of research among industrial and
organizational psychologists. Some people like to work and they find working an important part
of their lives. Some people on the other hand find work unpleasant and work only because they
have to. Job satisfaction tells how much people like their jobs. Employee satisfaction is generally
considered as the driver of employee retention and employee productivity. (Bayad Jamal and
Govand Anwar, 2021).

Role Conflict: Role conflict is taken as an important job stressor that is faced due to the multiple
roles. Role conflict may start when two or more concurrent and unsuited expectations exist at the
sametime. Role conflict involves contradiction in expectations. Role conflicts increase job stress
and decrease job satisfaction among both men and women (Spector, 1997). Role conflicts have a
greater impact on job satisfaction among employees who have a high centrality of the family
role. Role conflict scale measured Role Overload while the Annual Performance Scores of the
organization measured workers performance. The result was significant and there is a negative
relationship between work overloads and job performance. The study shows that the low level
workers are more experienced than the high level workers.( muhammad Raiz, 2016).

Salary Pay Scale: The pay scale for IT specialists in Kathmandu is an important factor to take
into account because it has a direct impact on their financial security, motivation, and general
well-being. A competitive salary package is crucial for retaining and hiring top talent in this
industry because many IT employees have expended a lot of time and money developing their
skills and expertise.

Independent Variables Dependent Variables

Research Methods

This chapter sets out an overall plan associated with a study. It provides a basic framework on
which the study is based. This chapter presents the methodology to be employed for data
collection as well as the relevant statistical analytical tools that were employed for analyzing the
survey results gathered during the study to obtain the stated objective. It explains the research
design used, population and sample of the study, nature and sources of data, instrumentation,
data collection procedures and method of analysis.

Descriptive Research Design

This research is applied research as existing theories and concepts were applied. The research is
conclusive research in which hypotheses were tested to determine relationships and provide a
conclusion about the tested variables. Survey research design has been adopted to collect data
from multiple employees of both the IT employees by using sets of questionnaires. This research
is descriptive research where the analyses were taken as conclusions. Questionnaires were
administered to the employees in IT companies and the respondents were asked to give their
opinion about their job and the prevailing situation of HR practices in the organization.
Questions were structured with the five-point Likert scale to know the opinion on the practices
and some performance variables. The dependent variable in this study was factors affecting job
satisfaction while the independent variable was job satisfaction.

Nature and Sources of Data

This section details the nature and sources of data used in the study. The data will be collected
from both primary and secondary sources. The primary data are collected through
self-administered questionnaires. These responses will be collected from Google form and sent
to all IT professionals using different IT forums and personal email ids. The secondary data were
acquired through journals, research articles, magazines, newspapers etc. The questionnaire is the
main research tool of this study. It consists of demographic questions, single response questions,
and likert scale questions. Demographic questions include elements like gender, age, marital
status, education 23 level. Study related questions will include statements related to relation with
supervisor, compensation and benefit, organization development, working condition, career
development and work task factors in a likert scale. The necessary information has been
collected through the structured questionnaire from the employees working in IT companies. The
total of 40 -50 usable questionnaires will be analyzed.

Population and Sampling

The population for this study consisted of the employees working in IT companies in Nepal
inside the Kathmandu Valley. According to the data from IT companies, there are altogether
80-90 companies.. The sample is based on the IT sector which will have about 300-400
respondents. For this purpose a convenience sampling method is used. The questionnaire will be
distributed to various levels, such as Software engineer, technical managers, engineering
manager, mid level developers, junior level developers, designers, testing engineers, business
analyst, trainee. A well-structured questionnaire is prepared as the main instrument to collect
data from the respondents. The survey is divided into two sections: 1) personal background, i.e.
classification question, which obtains information regarding employees' age and gender and 2)
job satisfaction segments and organizational factors, i.e. questions that collect information
regarding employees' level of satisfaction. The questionnaire survey was designed to understand
the views of the respondents concerning their job satisfaction on factors like work environment,
rewards, recognition, training and development and job security. A set of questions including
yes/no questions, ranking method, and multi-item Likert scale questions will be 25 developed. A
survey is designed to find out the objectives of research through specific questions. The
questionnaire is presented in Appendix. The primary information for analyzing association
between job satisfaction and employee commitment was collected from a questionnaire survey
which will be conducted among 40 - 50 respondents.

Regression Analysis

Regression analysis is a technique used to estimate the impact of two or more variables on
dependent variables. The linear regressions model was as follows.

JS = β0 + β1 WE + β2 SPS+ β3 WL + β4 RC + β5 EX

JS = Job Satisfaction
β0 = Constant

β1 = Regression of Coefficient

WE = Working condition and environment

SPS= Salary Pay Scale

WL = Workload Pressure

RC = Role Conflict

EX= Emotional Exhaustion

ei = Error Terms

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