Impact of psychological capital on employee engagement, job satisfaction and employee performance in the manufacturing sector in Zimbabwe

Abstract

Orientation: Human capital lies at the heart and centre of any organisation’s success. It is for this reason that entrepreneurial envisioned corporations embrace the role of psychological capital in order to optimise their employees’ competences and potential.Research purpose: The study underscores the role that psychological capital plays on employee engagement, job satisfaction and employees’ performance in the manufacturing sector of a developing country context.Motivation for the study: The study was motivated by the need to assess the impact of psychological capital on employee engagement, job satisfaction and employee performance in the manufacturing sector organisations.Research approach/design and method: Quantitative approach and design was used in this study, with 257 respondents selected from 15 manufacturing firms based in Bulawayo, Zimbabwe. Collected data were analysed using structural equation modelling (SEM) technique.Main findings: The results showed that psychological capital significantly positively influence employee engagement, job satisfaction and employee performance. Employee engagement significantly positively influences employee performance and mediate the influence of psychological capital on employee performance. Whilst job satisfaction positively influences employee performance and employee engagement, respectively, it mediates the influence of psychological capital on employee performance.Practical/managerial implications: Human capital drives organisational success. The manufacturing companies’ management need to maximise their human capital core-competence by strategically embracing psychological capital to optimise employees’ performance.Contribution/value-added: This study extends the theoretical academic debate on psychological capital, its effects on employee engagement, job satisfaction and employee performance beyond the current and existing discoveries.

Employee Engagement as An Effort to Improve Work Performance: Literature Review

“…The findings of Sekhar, Patwardhan & Vyas (2017) that individuals who feel engaged with their work and have a higher sense and involvement in activities in their organization will produce good job performance (Ngwenya, & Pelser, 2020). This is in line with existing findings that indicate employee engagement, directly and indirectly, affects individual performance (Azizah & Gustomo, 2015).…”

Influence of engagement, work-environment, motivation, organizational learning, and supportive culture on job satisfaction.

“…The study on employee engagement has emerged reasonably in the recent literature. A recent study by Ngwenya and Pelser (2020) in the manufacturing sector in Zimbabwe has shown that employee engagement has significantly influenced employee performance and job satisfaction positively influenced employee engagement. Another empirical study on employee engagement and job satisfaction in China indicated that workplace has a large influence on employee engagement and job satisfaction (Rashidin, Javed & Liu, 2020).…”

“…Hence it is vital to make sure that employees have the skills that meet organizational needs. Furthermore, human capital leads to organizational success and organizations need to maximize human resources competencies strategically to boost employees" performance (Ngwenya & Pelser, 2020). According to Zahari et al, (2020) the successfulness of an organisation has been associated to attain job satisfaction at a greater level.…”

Progressing Organisational Behaviour towards a New Normal

“…In contrast, through experiencing positive emotions, employees are engaged in their work which in turn creates a positive impact on their performance [11]. These individuals involve themselves in activities and attain high job performance, indicating individual performance is directly and indirectly linked with employee engagement [12] which is shaped through organisational behaviour. The level of stress encountered within the organisation affects employee performance levels.…”