A CRITICAL EVALUATION OF THE NEXUS BETWEEN OFFICE POLITICS AND OCCUPATIONAL STRESS IN THE BANKING INDUSTRY

Background to the Study

Occupational stress is a prominent issue in many countries, recognized as a workplace problem that is negatively impacting both individuals and organizations (Gabrielli, & Lund, 2020). The phenomenon of stress in organizations is currently seen as a prevalent issue. Stress encompasses not only personal and social issues, but also poses a challenge for managers and organizations, as a significant portion of organizational resources and competencies are located within individuals.  Occupational stress refers to the detrimental physical and emotional reactions that arise when the demands of a job do not align with the abilities, resources, or requirements of the worker. Job-related stress can result in adverse health effects, including physical harm. It can be understood as a dynamic imbalance between an individual and their work environment, where the individual's perceived ability to cope with the circumstance is compromised. The outcome of this process will be determined by factors such as the type and magnitude of the demands, the individual's traits, the level of social support, and the limitations within which the coping process occurs (Gabrielli et al, 2020). Spanos, Strigas, Travlos, & Kipreos (2020) highlighted that within the global landscape, specifically in the domains of work and business, has experienced a significant increase in the speed of change due to factors like innovation, increased competition, and the need for exceptional quality. Stress ensued among the workers as the demands placed upon them increased in tandem. Personal factors, such as leisure activities and interpersonal connections, can also be contributing factors to stress, alongside the challenges that arise from the work environment such as office politics.

Contextually, the banking industry, known for its high-pressure environment and stringent performance targets, has increasingly become a fertile ground for office politics. Office politics refers to the strategies individuals use within an organization to gain advantage, often at the expense of others or the organization itself (Fredrick., 2020). These behaviors, which can range from manipulation to alliances and covert power struggles, are often motivated by the desire for career advancement, recognition, and control over resources (Vigoda-Gadot & Drory, 2018). While some level of political behavior is inevitable in any organization, the banking sector, with its competitive atmosphere and hierarchical structure, is particularly prone to such dynamics.

Consequently, the influence of office politics on employees' well-being and job performance has been a subject of growing concern. Studies have shown that office politics can lead to negative outcomes such as decreased job satisfaction, reduced organizational commitment, and increased turnover intentions (Kacmar & Baron, 2019). More critically, office politics is closely linked to occupational stress, a condition characterized by physical and emotional strain resulting from job-related factors (Cooper, Dewe, & O'Driscoll, 2021). The nexus between office politics and occupational stress is of particular importance in the banking industry, where employees often face high expectations and must navigate complex interpersonal dynamics. The competitive nature of banking can exacerbate political behavior, as employees vie for promotions, bonuses, and other rewards. This environment can lead to increased stress levels, particularly for those who feel marginalized or unfairly treated (Cropanzano, Howes, Grandey, & Toth, 1997). The stress induced by office politics can, in turn, affect not only the individual's mental and physical health but also the overall performance of the organization.

According to Uzondu (2023), occupational stress triggered by office politics in the banking industry has been associated with a range of adverse effects, including burnout, anxiety, and decreased productivity. Beehr & Newman (2019) mentioned that the impact of office politics on occupational stress is not uniform across all employees. Factors such as gender, age, tenure, and personality traits can influence how individuals perceive and respond to office politics. For instance, employees with higher levels of political skill may be better equipped to navigate office politics without experiencing significant stress, while others may find the same environment overwhelming and demotivating (Treadway& Frink, 2021). These variations suggest that a one-size-fits-all approach to managing office politics and occupational stress may not be effective. Gotsis & Kortezi, (2020) added that there has been increasing recognition of the need to address the detrimental effects of office politics on occupational stress within corporate sector like banking. Thus most organizations are beginning to explore strategies for mitigating the negative impacts, such as promoting transparency, fostering a collaborative culture, and providing support systems for employees. However, despite these efforts, the problem persists, indicating a gap in the understanding and management of the relationship between office politics and occupational stress in the banking sector.

1.2 Statement of the Problem

It is no doubt that the Nigerian banking industry is characterized by a high level of competition and performance pressure, making it a fertile ground for office politics. Employees are often required to navigate complex interpersonal relationships, manage conflicts, and engage in political behavior to secure their positions and advance their careers. While these dynamics are common in many organizations, their intensity in the banking sector can lead to significant occupational stress. The stress associated with office politics not only affects individual employees but also has broader implications for organizational performance, including increased absenteeism, lower productivity, and higher turnover rates (Victor & Olamide, 2022). To corroborate Victor and Olamide’s assertion, Chrisstopher and Benedict (2023) highlight that the banking industry is notorious for its high-pressure environment, where employees are constantly driven to meet targets and maintain high levels of performance. Within this competitive atmosphere, office politics often thrives, creating a complex web of interpersonal dynamics that can significantly impact employees' well-being. 

According to Sanusi & Ismail (2020), in Nigeria, the banking industry has undergone significant changes over the past few decades, with various reforms aimed at improving efficiency, transparency, and profitability. These reforms have led to increased competition among banks, which in turn has intensified the pressure on employees. The competitive environment has also heightened the prevalence of office politics, as employees strive to secure their positions, gain promotions, and achieve financial rewards. The intersection of these dynamics has made the Nigerian banking industry a critical area for examining the relationship between office politics and occupational stress. While office politics is a common feature in most organizations, its prevalence and intensity in the banking sector can lead to severe occupational stress. This stress not only affects individual employees but also has broader implications for organizational performance, including increased absenteeism, lower productivity, and higher turnover rates.

Bizarrely, existing research has shown that the presence of office politics can have detrimental effects on employees' well-being, leading to reduced job satisfaction, decreased motivation, and higher turnover rates (Kacmar & Baron, 1999). In the Nigerian context, these issues are further compounded by cultural and societal factors that influence workplace interactions and power dynamics. For instance, the hierarchical structure commonly found in Nigerian organizations can exacerbate the effects of office politics, as employees may feel compelled to engage in political behavior to align with those in positions of authority (Gbadamosi, 2006). Despite the growing recognition of the impact of office politics on occupational stress, there is a notable gap in research specifically focused on the Nigerian banking industry. While studies in other regions have highlighted the negative consequences of office politics, there is limited empirical evidence that explores how these dynamics play out in Nigeria's unique socio-economic and cultural context. This gap in the literature is concerning, given the significant role that the banking sector plays in Nigeria's economy and the well-being of its workforce.This study seeks to fill this gap by providing a critical evaluation of how office politics contributes to occupational stress in the banking sector and by offering recommendations for reducing the negative impact of these dynamics on employees and organizations.

1.3 Objectives of the Study

The objective of this study is focused on a critical evaluation of the nexus between office politics and occupational stress in Nigeria banking industry. Specifically, the study seeks to:

To examine the extent of office politics in Nigeria banking industry.

To assess the impact of office politics on occupational stress in in Nigeria banking industry.

To identify the specific factors within office politics that contribute to increased levels of occupational stress among banking employees.

To recommend strategies for managing office politics in a way that minimizes occupational stress in the banking sector.

1.4 Research Questions

What is the extent of office politics in Nigeria banking industry?

How does office politics impact occupational stress in in Nigeria banking industry?

What specific factors within office politics contribute to increased levels of occupational stress among banking employees?

What strategies can be recommended for managing office politics to minimize occupational stress in the banking sector?

1.5 Research Hypotheses

Ho: There is no significant relationship between office politics and occupational stress in the banking industry.

Hi: There is a significant relationship between office politics and occupational stress in the banking industry.

1.6 Significance of the Study

This study holds both practical and theoretical significance. Practically, the findings of this research can be utilized by banking institutions to develop more effective strategies for managing office politics and reducing occupational stress. By identifying the key factors that contribute to stress in the context of office politics, banks can implement targeted interventions that address these issues, leading to a healthier work environment and improved employee well-being. Additionally, the study's insights into the role of individual differences can help organizations tailor their stress management programs to better meet the needs of diverse employees.

Theoretically, this study contributes to the existing body of literature on organizational behavior, specifically in the areas of office politics and occupational stress. By focusing on the banking industry, this research fills a gap in the literature and provides a deeper understanding of how these dynamics play out in a high-pressure, performance-driven environment. The study also offers new perspectives on the role of individual differences in moderating the effects of office politics, which can inform future research and theory development in this area.

1.7 Scope of the Study

The scope of this study is both content-based and geographical. Content-wise, the study focuses on the relationship between office politics and occupational stress, specifically within the banking industry. The geographical scope is limited to banking institutions within [specific region or country], where the research will be conducted. The study aims to provide insights that are relevant to the banking sector in this particular context while also contributing to broader discussions on organizational behavior and employee well-being.

1.8 Limitations of the Study

One of the primary limitations of this study is the reliance on self-reported data, which may be subject to bias. Participants may underreport or exaggerate their experiences with office politics and occupational stress d ue to social desirability or fear of repercussions. To mitigate this issue, the study will employ anonymous surveys and ensure confidentiality to encourage honest responses. However, the potential for bias cannot be entirely eliminated, and this should be considered when interpreting the findings.

Another limitation is the focus on a specific geographical region, which may limit the generalizability of the results to other contexts. The banking industry in different regions or countries may have distinct characteristics that influence the dynamics of office politics and occupational stress. Therefore, while the findings of this study are expected to provide valuable insights, they may not be fully applicable to other settings. Future research could address this limitation by conducting comparative studies across different regions or industries.

1.9 Definition of Key Terms

Office Politics: The use of power and social networking within an organization to achieve personal or organizational goals, often at the expense of others.

Stress: A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Occupational stress: Occupational stress is a term used to describe the physical, emotional, and mental strain that individuals experience as a result of factors associated with their work environment or job responsibilities. It is observed when there is a perceived imbalance between the demands of a job and an individual's ability to cope with those demands.

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