Impact of Job Stress and Job Satisfaction on Employee Performance: Comparative Analysis between Private and Government Hospitals in Lahore

The international literature shows that a large number of factors influence employee’s performance such as satisfaction from the profession, work environment, compensation policies, and job stress. This survey study focuses on job satisfaction and job stress as influencing factor for the job performance. The aim of this research study is to examine the relationship between job-related stress, job satisfaction and employee performance in nursing sector of Lahore, Pakistan. Further, for this study, the hospitals were divided into two major groups; that are, Private hospitals and Government hospital. Stratified random sampling technique was used to select hospital form these two categories for data collection. Primary data was collected through close-ended questionnaires. The questionnaires were distributed among 500 nurses and response rate gathered was 82.4%. Furthermore, the reliability of the questionnaire was tested through Cronbach’s alpha coefficient. Moreover, the data was analyzed through, correlation, regression analysis, Granger Causality test and Independent Sample T- test by using Statistical Package for Social Sciences (SPSS16.0) and Eviews. The results drawn from the study shows that nurses of government hospitals are more satisfied with their job and perform better than the private hospital nurses. They also feel high level of stress due to challenge stressors that help in achieving goals timely and efficiently. Correlation analysis revealed that Job-related stress and job satisfaction are directly related to the job performance, however, job satisfaction has stronger relationship with performance. Regression analyses revealed that only job satisfaction has a significant impact on the performance of the nurses and job-related stress is not found to significantly affect job performance among nurses. Thus, job satisfaction has a higher impact on job performance than job-related stress. This study is considered to be policy oriented as it would guide the management of both private and government hospitals in Lahore in maintaining a required level of stress in the hospitals that would help to increase their employees’ (nurses) performance level; making the administration realize the necessity of nurse’s satisfaction for better performance.