Jun 02, 2016 | 3
Minute Read

Lower Organizational Stress Through Transformational Leadership

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Use stress-relieving tactics to boost office productivity

Although stress and work are often seen as two sides of the same coin, managers and other company leaders play an essential role in how employees perceive and manage stress at work. Good stress can motivate employees to achieve more and overcome unexpected challenges. However, employees with an unmanageable amount of stress can perform worse, strain relationships with their peers, and experience burnout.

Toxic amounts of stress can bring about physical and mental side effects. These effects can contribute to increased business costs associated with worker’s compensation, absenteeism, and higher turnover. As illustrated in the infographic below, research indicates employee stress may cost American businesses around $300 billion annually.


Company Leaders Central to Controlling Workplace Stress

When stress across a team begins to impact an entire organization, this can be referred to as organizational stress. While managers can’t control the personal lives of their employees or directly influence how they perceive stress, leaders are in a crucial position to implement management strategies to reduce the stress in their employees’ workday.

When employees have open communication with management and greater flexibility in how they work, they are more likely to find satisfaction at work. Managers who understand what motivates employees by offering development opportunities and a positive work environment (as well as tangible incentives such as extra pay and benefits) can help their staff better cope with challenging workloads.


Transformational Leadership Equals High-Performance Teams

The case studies in the infographic show teams led by managers with a transformational leadership style – encourages positive change and focuses on the good of the organization over self-interest – have 37.5% higher productivity levels than teams led with a different style.

There are countless leadership strategies and styles. There may not be a one-size-fits-all solution for every manager dealing with organizational stress. However, these tips can help any manager get started in preventing and identifying this stress before it begins to take a toll on their team and business.

For more information about organizational stress and how managers can reduce it in their workspace, view the infographic below created for Pepperdine University’s Online MBA Program or visit www.measureyourstress.com.


Surviving Organizational Stress



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Tim Wayne