The Effects of Group Conflict and Work Stress on Employee Performance

Abstract

This study investigates the positive and negative effects of group conflict and work stress. It uses a multilevel analysis to examine the effects of task-related conflict and relationship conflict on two different types of work stress, namely, challenge-related stress and hindrance-related stress. Furthermore, the study analyzes the effects these types of stress have on hotel employees’ job performance and job satisfaction. The results of hierarchical linear modeling from a survey of 265 employees and their managers in fifty Chinese hotels reveal that (1) team task conflict was positively associated with challenge-related stress, which in turn, was positively associated with job performance and satisfaction; and (2) team relationship conflict was positively associated with hindrance-related stress, which in turn, was negatively associated with job performance and satisfaction. We also found that work stress mediates the cross-level relationship between group conflict and the individual outcomes relating to performance and satisfaction. The key implication of the findings is that work-related conflict and stress are not always necessarily bad for organizational outcomes. Instead, task-related conflict and the resulting stress may improve employees’ sense of accomplishment when the task is complete. By the same token, relationship-based conflict and stress generally lead to negative outcomes for the employee and organization.