Rlchard Pettlnger

MANAGERIAL EXPERTISE

Effective stress management is based on the collective and individual willingness to understand and accept each of these elements as prior- ities for attention and to connect these with effects on organizational performance, effectiveness, success, and profitability.

Financial aspects

Quite apart from any moral or enlightened imperative, effective stress management is extremely profitable compared with ignoring or institu- tionalizing the problems. Effective stress management removes major

66 STRESS MANAGEMENT



Fig. 6.1 Major components of burnout. Source: Greenberg, J. and Baron, R.A. (1995).
causes and volumes of grievance and dispute. Less fixed cost expen- diture is required in creating labor and industrial relations support functions to deal with stress. Staff spend a greater proportion of their time at work being productive rather than off sick with stress-related illnesses, or using excuses and alternatives to mask the real problems.

Organizations that take active steps to manage stress are much less likely to face lawsuits, potentially crippling damages, loss of internal and external reputation, and respect. They have greater attraction to potential employees. There is also the belief and perception that organizations which take active and positive steps in the management of stress are much more likely to place higher levels of general respect and value on employees.

Each of these aspects can be clearly quanti fied. Extensive public rela- tions activities are required and have to be paid for by bad employers to counter the effects of negative reputation. Such employers also have to commit greater resources more often to recruitment advertising,

THE STATE OF THE ART 67
selection processes, sick pay, and support and administrative systems functioning. Those that take an active approach to stress management have to commit resources to training and development of manage- rial expertise, and organizational and environmental development. However, this is paid for by not having to meet the other demands.

In particular, damages for cases where bullying, victimization, harass- ment, including sexual harassment, and discrimination are proven are unlimited in the US, Canada, the EU, Australia, and New Zealand. The highest pro file cases always attract adverse publicity. This compounds recruitment, retention, and commercial dif ficulties, and leads to wider loss of reputation and customers.