Research Paper (undergraduate) from the year 2011 in the subject Business economics - Business Management, Corporate Governance, , language: English, abstract: Stress is the basic factor impacting the organization and is the major causing of reducing the productivity of the organizations. Stress is the basis of conflicts and violence in many organizations. People have problems which need to be resolved otherwise they will put negative impact touching many dimensions of human life reducing the health and the mental balance. The organizational productivity will reduce and there will be problems related to the quality of work life. One of the greatest challenges facing organizations today is the ever-growing competition, the continuous increase in customer expectations and customers’ subsequent demands. Moreover, customers are becoming increasingly critical of the quality of services they experience. In order to be successful, firms must view stress management as an essential part of their strategic process. Increased competition has forced traditional organisations to find ways to retain current employees and to attract customers the major task of organisations is to promote customer satisfaction and loyalty while establishing a competitive advantage a major factor on customer satisfaction and loyalty is the quality. Increased service quality through increased employee performance is a viable way for organisations to remain competitive. One strategy which has gained momentum, in services, is the concept of quality and quality management. Quality can come from happy employees. The stress in the organisations reduces the talents and competencies by which the employees impact the service quality.