Journal of Organization and Human Behaviour

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of Psychological Capital on Organizational Effectiveness:Role of Positive Psychology at Work


Affiliations
1 Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Uttrakhand, India
     

   Subscribe/Renew Journal


Achieving organizational effectiveness is the ultimate purpose of any organization that takes enormous effort to maximize employees' task efficiency, commitment, and sustain intrinsic motivation to perform well in difficult times. This is why recent efforts to improve organizational performance have begun to inculcate positive organizational concepts like trust, engagement and psychological capital (PsyCap). The purpose of this paper is also to examine the significance of psychological capital (PsyCap) in the prediction of organizational effectiveness and how positive psychological strengths and capabilities motivate employees to perform more than their job description that leads to organizational efficiency. The study has been conducted on a sample of 200 IT professionals. Data analysis was performed using correlation analysis and SEM. The results indicated positive and significant correlation between PsyCap and organizational effectiveness with calculation r = 0.50 (significant at 0.01 level). Regression analysis, basic descriptive analysis, Confirmatory factor analysis, model fit analysis were performed. Results revealed positive impact of PsyCap on Organizational Effectiveness. Moreover a fit model was also identified between PsyCap and organizational effectiveness with both construct's factors. The finding suggests PsyCap is a significant predictor, along with other variables in fostering organizational effectiveness.

Keywords

Psychological Capital, Organizational Effectiveness, Positive Psychology.
Subscription Login to verify subscription
User
Notifications
Font Size

  • Avey, J. B., Luthans, F., & Youssef, C. M. (2010). The additive value of positive psychological capital in predicting work attitudes and behaviors. Journal of Management, 36(2), 430-452.

  • Avey, J. B., Reichard, R. J., Luthans, F., & Mhatre, K. H. (2011). Meta-analysis of the impact of positive psychological capital on employee attitudes, behaviors, and performance. Human Resource Development Quarterly, 22, 127-152.

  • Buckingham, M., & Coffman, C. (1999). First, break all the rules: What the world’s greatest managers do differently. Simon and Schuster Australia, Sydney.

  • Cameron, K. (1981). Domains of organizational effectiveness in colleges and universities. Academy of Management Journal, 24(1), 25-47.

  • Cameron, K. (1986). A study of organizational effectiveness and its predictors. Management Science, 32(1), 87-112.

  • Chen, D. J., & Lim, V. K. (2012). Strength in adversity: The influence of psychological capital on job search. Journal of Organizational Behavior, 33, 811-839.

  • Cheung, F., So-kum Tang, C., & Tang, S. (2011). Psychological capital as a moderator between emotional labor, burnout, and job satisfaction among school teachers in China. International Journal of Stress Management, 18, p.348.

  • Culbertson, S. S., Fullagar, C. J., & Mills, M. J. (2010). Feeling good and doing great: The relationship between psychological capital and well-being. Journal of Occupational HealthPsychology, 15, 421-433.

  • Fineman S (1996). Emotion and Organizing, in Clegg S R, Hardy C and Nord W R (Eds.), Handbook of Organizational Studies, London: SAGE.

  • Goldsmith,A.H., Darity, W.,& Veum, J.R. 91998). Race, cognitive skills, psychological capital and wages.Review of Black Political Economy, 26, 13-22.

  • Henry, E. A. (2011). Is the influence of organizational culture on organizational effectiveness universal? An examination of the relationship in the electronic media (radio) service sector in the English speaking Caribbean.University of Mississippi.

  • Hoyle, R.H. (1995). The structural equation modeling approach: Basic concepts and fundamental issues. Structural equation modeling: Concepts, issues, and applications, pp.1-15. Thousand Oaks, CA: SAGE Publications.

  • Jöreskog, K.G., & Sörbom, D. (1996). LISREL 8: User’s reference guide. Chicago: Scientific Software International.

  • Luthans, F. (2002). The need for and meaning of positive organizational behavior. Journal of Organizational Behavior, 23, 695-706.

  • Luthans, F., & Youssef, C. M. (2004). Human, social and now positive psychological capital management: Investing in people for competitive advantage. Organizational Dynamics, 33, 143-160.

  • Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33, 321-349.

  • Luthans, F., Avey, J. B., Avolio, B. J. Norman, S. M., & Combs, G. M. (2006). Psychological capital development: toward a micro-intervention. Journal of Organizational Behaviour, 27, 387-393

  • Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive psychological capital: Measurement and relationship with performance and satisfaction. Personnel Psychology, 60, 541-572

  • Luthans, F., Youssef, C. M., & Avolio, B. J. (2007). Psychological capital: Developing the human competitive edge. New York: Oxford University Press.

  • Luthans, F., Youssef, C. M., & Rawski, S. L. (2011). A tale of two paradigms: The impact of psychological capital and reinforcing feedback on problem solving and innovation. Journal of Organizational Behavior Management, 31, 333-350.

  • Lyubromirsky, S, King, L., & Diener, E. (2005) The benefits of frequent positive affect: Does happiness lead to success.Psychological Bulletin, 131, 803-855.

  • Masten, A. S. (2001). Ordinary magic: Resilience processes in development. American Psychologist, 56, 227-239.

  • Podsakoff N P, Whiting S W, Podsakoff P M & Blume B D (2000). Individual and organizational-level consequences of organizational citizenship behaviors: A meta-analysis. Journal of Applied Psychology, 94(1), 122-141.

  • Roberts, L. M. (2006). Shifting the lens on organizational life: The added value of positive scholarship. Academy of Management Review, 31(2), 292-305.

  • Rutter, M. (1987). Psychological resilience and protective mechanism. American Journal of Orthopsychaitry. 57, 316-331

  • Seligman, M. E. P. (1998). Learned optimism. New York, NY: Pocket Books.

  • Snyder, C. R. (2002). Hope theory: Rainbows in the mind. Psychological Inquiry, 13(4), 249-276.

  • Snyder, C.R., Irving, L., & Anderson, J.R. (1991). Hope and health: measuring the will and the ways. Handbook of social and clinical psychology: The health perspective (285-307).

  • Suldo, S. M., & Huebner, E. S. (2004a). Does life satisfaction moderate the effects of stressful life events on psychopathological behavior in adolescence? School Psychology Quarterly, 19, 93-105.

  • Suldo, S. M., & Huebner, E. S. (2004b). The role of life satisfaction in the relationship between authoritative parenting dimensions and adolescent problem behavior. Social Indicators Research, 66, 165-195.

  • Sundaray, B. K. (2011). Employee engagement: A driver of organizational effectiveness. European Journal of Business and Management, 3(8).

  • Van Katwyk, P.T., Fox, S., Spector, P. E., & Kelloway, E.K. (2000).Using the job-related affective well-being scale to investigate affective responses to work stressors. Journal of Occupational Health Psychology, 52, 219-230.

  • Wright, T. A. (2003). Positive organizational behavior: An idea whose time has truly come. Journal of Organizational Behavior, 24, 437-442.

  • Yuchtman, E., & Seashore, S. E. (1967). A system resource approach to organizational effectiveness. American Sociological Review, 32, 891-903.


Abstract Views: 375

PDF Views: 0




  • Impact of Psychological Capital on Organizational Effectiveness:Role of Positive Psychology at Work

Abstract Views: 375  |  PDF Views: 0

Authors

Kumari Soni
Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Uttrakhand, India
Renu Rastogi
Department of Humanities and Social Sciences, Indian Institute of Technology Roorkee, Uttrakhand, India

Abstract


Achieving organizational effectiveness is the ultimate purpose of any organization that takes enormous effort to maximize employees' task efficiency, commitment, and sustain intrinsic motivation to perform well in difficult times. This is why recent efforts to improve organizational performance have begun to inculcate positive organizational concepts like trust, engagement and psychological capital (PsyCap). The purpose of this paper is also to examine the significance of psychological capital (PsyCap) in the prediction of organizational effectiveness and how positive psychological strengths and capabilities motivate employees to perform more than their job description that leads to organizational efficiency. The study has been conducted on a sample of 200 IT professionals. Data analysis was performed using correlation analysis and SEM. The results indicated positive and significant correlation between PsyCap and organizational effectiveness with calculation r = 0.50 (significant at 0.01 level). Regression analysis, basic descriptive analysis, Confirmatory factor analysis, model fit analysis were performed. Results revealed positive impact of PsyCap on Organizational Effectiveness. Moreover a fit model was also identified between PsyCap and organizational effectiveness with both construct's factors. The finding suggests PsyCap is a significant predictor, along with other variables in fostering organizational effectiveness.

Keywords


Psychological Capital, Organizational Effectiveness, Positive Psychology.

References