PSYCHOLOGICAL CAPITAL AND EMPLOYEE PERFORMANCE: A LATENT GROWTH MODELING APPROACH

The positive core construct of psychological capital (consisting of efficacy, hope, optimism, and resilience) has been conceptually and empirically demonstrated to be related to employee performance. However, much of this work has relied on cross-sectional designs to examine these relationships. This study utilizes longitudinal data from a large financial service organization (N= 179 financial advisory-type employees) to examine within-individual change in psychological capital over time and if this change relates to their change in performance. Latent growth modeling analyses revealed statistically significant within-individual change in psychological capital over time, and that this change in psychological capital was related to change in 2 types of performance outcomes (supervisor-rated performance and financial performance, i.e., individual sales revenue). Moreover, results of an exploratory cross-lagged panel analysis suggested a causal relationship such that prior psychological capital leads to subsequent performance rather than vice versa. Taken together, these results highlight the impact employees’ psychological capital may have on their subjectively and objectively measured performance over time and offer evidence-based practical guidelines for human resource selection, development, and performance management.

[1]  Fred Luthans,et al.  : Authentically leading groups: The mediating role of collective psychological capital and trust , 2011 .

[2]  Fred O. Walumbwa,et al.  AN INVESTIGATION OF THE RELATIONSHIPS AMONG LEADER AND FOLLOWER PSYCHOLOGICAL CAPITAL, SERVICE CLIMATE, AND JOB PERFORMANCE , 2010 .

[3]  Bruce J. Avolio,et al.  The impact of positivity and transparency on trust in leaders and their perceived effectiveness , 2010, The Leadership Quarterly.

[4]  F. Luthans,et al.  The Additive Value of Positive Psychological Capital in Predicting Work Attitudes and Behaviors , 2010 .

[5]  B. Avolio,et al.  The Development and Resulting Performance Impact of Positive Psychological Capital. , 2010 .

[6]  Robert E. Ployhart,et al.  Longitudinal Research: The Theory, Design, and Analysis of Change , 2010 .

[7]  Amy Wrzesniewski,et al.  I won't let you down... or will I? Core self-evaluations, other-orientation, anticipated guilt and gratitude, and job performance. , 2010, The Journal of applied psychology.

[8]  Fred Luthans,et al.  Psychological capital: A positive resource for combating employee stress and turnover , 2009 .

[9]  C. R. Snyder,et al.  Oxford Handbook of Positive Psychology , 2009 .

[10]  Alexa A. Perryman,et al.  Effects of selection and training on unit-level performance over time: a latent growth modeling approach. , 2009, The Journal of applied psychology.

[11]  B. Avolio,et al.  Inquiry Unplugged: Building on Hackman’s Potential Perils of POB , 2009 .

[12]  Brayden G. King,et al.  The Practice of Theory Borrowing in Organizational Studies: Current Issues and Future Directions , 2009 .

[13]  C. R. Snyder,et al.  Oxford handbook of positive psychology, 2nd ed. , 2009 .

[14]  T. Judge,et al.  How the rich (and happy) get richer (and happier): relationship of core self-evaluations to trajectories in attaining work success. , 2008, The Journal of applied psychology.

[15]  Fred Luthans,et al.  Experimental Analysis of a Web-Based Training Intervention to Develop Positive Psychological Capital , 2008 .

[16]  Bruce J. Avolio,et al.  The mediating role of psychological capital in the supportive organizational climate—employee performance relationship , 2008 .

[17]  A. Bandura.  An agentic perspective on positive psychology. , 2008 .

[18]  James B. Avey,et al.  POSITIVE PSYCHOLOGICAL CAPITAL: MEASUREMENT AND RELATIONSHIP WITH PERFORMANCE AND SATISFACTION , 2007 .

[19]  Simon S. K. Lam,et al.  Embracing transformational leadership: team values and the impact of leader behavior on team performance. , 2007, The Journal of applied psychology.

[20]  T. A. Wright.  A Look at Two Methodological Challenges for Scholars Interested in Positive Organizational Behavior , 2007 .

[21]  Alexander D. Stajkovic,et al.  Development of a core confidence-higher order construct. , 2006, The Journal of applied psychology.

[22]  Larry Dossey,et al.  Optimism , 1908, Explore.

[23]  Kenneth A. Bollen,et al.  Latent curve models: A structural equation perspective , 2005 .

[24]  B. Avolio,et al.  The High Impact Leader , 2005 .

[25]  R. Vandenberg,et al.  The role of change in the relationship between commitment and turnover: a latent growth modeling approach. , 2005, The Journal of applied psychology.

[26]  T. Judge,et al.  THE CORE SELF‐EVALUATIONS SCALE: DEVELOPMENT OF A MEASURE , 2003 .

[27]  J. Singer,et al.  Applied Longitudinal Data Analysis , 2003 .

[28]  S. Hobfoll.  Social and Psychological Resources and Adaptation , 2002 .

[29]  F. Luthans.  The need for and meaning of positive organizational behavior , 2002 .

[30]  C. R. Snyder,et al.  Handbook of positive psychology , 2002 .

[31]  W. Fleeson.  Toward a structure- and process-integrated view of personality: traits as density distribution of states. , 2001, Journal of personality and social psychology.

[32]  T. Judge,et al.  Relationship of core self-evaluations traits--self-esteem, generalized self-efficacy, locus of control, and emotional stability--with job satisfaction and job performance: a meta-analysis. , 2001, The Journal of applied psychology.

[33]  A. Bandura.  Self-Efficacy: The Exercise of Control , 1997, Journal of Cognitive Psychotherapy.

[34]  Russell Cropanzano,et al.  A 5-year study of change in the relationship between well-being and job performance. , 1999 .

[35]  S. Parker,et al.  Enhancing role breadth self-efficacy: the roles of job enrichment and other organizational interventions. , 1998, The Journal of applied psychology.

[36]  David Chan,et al.  The Conceptualization and Analysis of Change Over Time: An Integrative Approach Incorporating Longitudinal Mean and Covariance Structures Analysis (LMACS) and Multiple Indicator Latent Growth Modeling (MLGM) , 1998 .

[37]  Alexander D. Stajkovic,et al.  Self-efficacy and work-related performance: A meta-analysis. , 1998 .

[38]  Wynne W. Chin.  The partial least squares approach for structural equation modeling. , 1998 .

[39]  C. R. Snyder,et al.  Development and validation of the State Hope Scale. , 1996, Journal of personality and social psychology.

[40]  K. Hooker,et al.  Stability and change in optimism: a study among spouse caregivers. , 1995, Experimental aging research.

[41]  S. DeLaune,et al.  Learned optimism. , 1993, Aspen's advisor for nurse executives.

[42]  H. Young,et al.  Development and psychometric evaluation of the Resilience Scale. , 1993, Journal of nursing measurement.

[43]  C. R. Snyder,et al.  Hope and health. , 1991 .

[44]  J J McArdle,et al.  Latent growth curves within developmental structural equation models. , 1987, Child development.

[45]  C. Carver,et al.  Optimism, coping, and health: assessment and implications of generalized outcome expectancies. , 2009, Health psychology : official journal of the Division of Health Psychology, American Psychological Association.

[46]  A. Bandura.  Social Foundations of Thought and Action: A Social Cognitive Theory , 1985 .

[47]  J. Conley,et al.  The hierarchy of consistency: A review and model of longitudinal findings on adult individual differences in intelligence, personality and self-opinion , 1984 .

[48]  Raymond B. Cattell,et al.  The Radial Parcel Double Factoring Design: A Solution to the Item-Vs-Parcel Controversy , 1975 .