Abstract:
The purpose of this research is to identify and examine the impact of occupational stress on employee performance of banking employees in Trincomalee district and to determine which dimension can potentially have the solidest impact on employee performance. To attain these objectives, a questionnaire was developed and distributed among 100 banking employees in Trincomalee district by using simple random sampling method as the sampling technique. The data were statistically analyzed using SPSS Primary data was analyzed by using descriptive statistical techniques, correlation coefficients analysis and multiple regression analysis. Descriptive analysis technique used to analyze the current situation of occupational stress and employee performance. The findings show that role ambiguity, underutilization of skills, work overload, all have a significant negative impact on employee performance, and with work overload being the dimension with the strongest impact. Hence, the study concludes that the degree of occupational stress need to be reduced to enhance the employee performance of banking employees. Thus, the managers need to pay more attention to manage banking employees’ occupational stress by regulating role ambiguity, underutilization of skills, and work overload to effect in employee performance. Moreover, company managers could offer more opportunities for employee growth and progression by paying careful attention on assigning tasks to evade overload of work.