In today’s competitive global environment, employee productivity is an essential element of a company’s success. Employee productivity can be significantly hindered by high levels of stress experienced in the work environment. Stress is a universal element that persons from nearly every walk of life has to face stress. Employers today are critically analyzing the stress management issues that contribute to lower job performance of employees. The main aim of the study was to evaluate effects of employees’ stress on organization productivity in Uganda. The study was conducted at Bomah Hotel Limited, Kitgum. Descriptive survey was adopted as the research design. Purposive and simple random sampling techniques were used in selecting a sample size of 30 out of a population of 50 employees. Questionnaires and interviews were used as data collection instrument. From the results obtained, it was evident that there were many stress factors that the respondents endured, and the enquiry proved that stress had an effect on productivity of an organization. Majority of the respondents reported to work under pressure and that they feel uncared for by the organization. The fact that majority of respondents thought of leaving their job, and felt that the organization did not care about them was a reflection of huge dissatisfaction that undoubtedly lowered productivity. It was recommended that Management must conduct an analysis of the organizational mood and climate by assessing the reasons why the employees think Bomah Hotel Ltd does not care about its employees and what they can do to change it. It was also suggested that an Employee Assistance Program be introduced for early identification and intervention on problems so that productivity levels do not decrease.