THE MODERATING EFFECT OF PSYCHOLOGICAL CAPITAL ON THE RELATIONSHIP BETWEEN WORK ENGAGEMENT AND JOB PERFORMANCE
Abstract
Background of the study: Psychological capital is increasingly becoming an important and integral aspect in the management of most firms across the world with the advent of globalization. Therefore, business leaders are making great efforts to increase their organizations' competitive capability, and raising employees' job performance is considered as one of the essential solutions. Thus, it is vital to properly identify factors that affect the job performance since this will be the basis for managers to propose recommendations to increase employees' job performance. The workforce in an organization will always change and be dynamic as employees retire and are replaced by employees of the new generation.
Objective of the study: This paper explored the relationship between employee’s work engagement and job performance and the effect of psychological capital, which can provide a way to solve the contradiction between employee’s input and output.
Results and findings: The study findings indicated that psychological capital moderates the effect of employee engagement on job performance of employees. Individuals who have a positive psychological state and initiative in making changes in their work environment will feel more engaged to their work.
Conclusions and recommendations: The study makes some recommendations for managers to increase employees’ job performance by raising their psychological capital and employee engagement. In addition, managers should effectively execute two-way internal communication activities to make employees’ needs, working goals, and assigned works at the personal level mixed match.
Keywords: Psychological Capital, Work Engagement & Job Performance
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