Having owned her own businesses and now consulting, post author Megan Barnes has extensive experience in business psychology. She particularly enjoys researching new ways businesses can make the most of their opportunities. 

There are many factors that combine to affect the health of a company. One aspect that can be particularly detrimental is organizational stress. Any organization that experiences stress in the workplace can be adversely affected in any number of ways. A new infographic from Pepperdine University Graziadio School of Business and Management aims to highlight the components of organizational stress and how it can have such a debilitating influence on the performance and long-term health of a business.

Surviving Organizational Stress

The financial implications are alarming, with employee stress estimated to cost American businesses $300 billion each year, and the potential consequences of that stress—mental health issues—adding a further $150 billion to the toll on businesses overall.

One of the most common causes of organizational stress is communication. If business managers and owners consistently fail to communicate effectively with their employees, this can have a profound effect on performance and morale. Regular appraisals and staff meetings often help to improve lines of communication and should allow any potential issues to come to light before they become a source of stress.

In addition, inflexibility has been tied to employee apathy, carelessness, and lack of pride. The autonomy and engagement associated with a flexible workplace can lower stress and boost productivity.

There are a number of distinctly different managerial styles that can be adopted according to the personality and preferences of senior management and their team, and certain styles are more effective at reducing and preventing organizational stress than others. A transformational style of management is likely to be most conducive to a near stress-free workplace, rather than a transactional style. The qualities of a transformational manager include an ability to embrace and encourage change and a willingness to prioritize the good of the organization over any self-interest.

photo credit: istockphoto.com