Impact of Perceived Organizational Virtuousness and Psychological Capital on Work Performance The Mediating Effect of Employee Well being

Abstract

newline In today s extremely competitive and highly complex business world, organizations across the world are facing unpredictable challenges. In this regard, employee well-being can be a sustainable competitive advantage for the corporate world by which employees performance can be improved. The term well-being is understood in a variety of ways and there are several operational and conceptual definitions of well-being. The major division is between hedonic well-being and eudaimonic well-being . Several models of workplace well-being exist, and Fisher s (2014) model is more comprehensive as it includes hedonic well-being, eudaimonic well-being, and social well-being . The present study developed an employee well-being measure based on Fisher s (2014) conceptualization of overall employee well-being. Taking the lead from positive psychology, the present study integrated organizational level factors such as perceptions of organizational virtuousness, and individual-level factors such as PsyCap, to examine the relationship with employee well-being and employee work performance. Six hundred and forty four responses were collected from the Indian public and private bank employees. For hypothesis testing, Structural Equation modeling (SEM) was used because it simultaneously tests the indirect and direct effect of independent variables and mediating variables on the dependent variables. The results indicate that both perceptions of organizational virtuousness and PsyCap are significantly related to employee well-being and employee work performance. Employee well-being mediated the relationship between perceptions of organizational virtuousness and in-role performance and employee well-being mediated the relationship between PsyCap and organizational citizenship towards individual.