Reference #287: The First 90 Days
The relationship between stress and performance is depicted on the Yerkes-Dotson as an inverted U.
Some stress is needed to be productive. This often comes from positive incentives or from consequences of inaction.
Too little stress is detrimental for performance, leading to inaction. As is too much stress, which can lead to chronic underperformance — you continually work harder but achieve less and less. In rare cases this causes exhaustion and burnout.
Watkins. The First 90 Days, 2013. (226-227)