When fear about health hurts performance: COVID-19 and its impact on employee’s work

Abstract

This study utilized terror management and conservation of resources theory to fulfill its aim of investigating the effects of fear of contamination of COVID-19 on performance of employees in the banking sector of Pakistan. A survey was conducted to collect data in two waves from 206 bank employees in Punjab region. SPSS was used for data analysis. The results demonstrated that such fear leads to emotional exhaustion which in turn negatively affects employee’s work performance. However, the perceptions of better precautionary measures taken by the organization against the spread of the disease moderated the said relationship and weakened the strength of fear on performance through emotional exhaustion. Amid the widespread fear, panic and detrimental effects of COVID-19 on organizations and economies of the worlds, this research has implications for policy makers by showing the importance of organizational measures taken and displayed to employees in decreasing the negative effects of extensive fear and uncertainty prevailing due to the pandemic.