Facts About Corporate Stress

  • Task completion time is increased and accuracy reduced by stress.
  • Individuals lose their ability to analyze complicated situations and manipulate information.
  • Individuals suffer from performance rigidity or narrow thinking.
  • Communication effectiveness is reduced.
  • Stress can also lead to “groupthink,” in which members of the group ignore important cues, force all members to adhere to a consensus decision — even an incorrect one — and rationalize poor decisions.
  • Extended exposure to stress has severe negative consequences on non-task performance dimensions. For example, high levels of stress can lead to emotional exhaustion, lower organizational commitment, and increased turnover intentions.
  • Stress affects an individual’s decisionmaking process and ability to make effective judgments.
  • Friedman and Mann suggest that when under conditions of stress, individuals fail to consider the full range of alternatives available, ignore long-term consequences, and make decisions based on oversimplifying assumptions.
  • Stress can also contribute to performance decrements by slowing cognition and individual information processing. For example, find that the time to complete a given task doubled with the introduction of an external stressor.



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