Abstract:
The objective of this study was to investigate the impact of occupational stress on employees’ performance and to determine the major sources of occupational stress experienced by teaching staff in state universities in eastern province of Sri Lanka. To analyze this condition, one hypothesis was formulated using deductive approach. The study was conducted by using a random sample of 2 state universities in eastern province of Sri Lanka. Type of investigation was correlational and it was crosssectional on time horizon. The unit of analysis was organizational level; each university. Academic staff served as respondents on behalf of the firm. Measures of the study were of good quality after assuring reliability and validity. Data were collected from 133 respondents which was 100% response rate. In order to test the hypothesis that was concerned with relationship between perceived degree occupational stress and perceived degree of employees’ performance, the Pearson Product Movement Correlation technique was applied. The results of the study showed a significant and negative relationship between perceived degree occupational stress and perceived degree of employees’ performance in the universities. The relationship was significant (r =-.199, p=.022) with employee performance.