Impact of Psychological Capital on Employee Engagement: An Empirical Study on Northern Indian Banking Sector

Abstract

With increasing competition in Indian banking sector need for high positive behaviour and employee engagement has become the need for sustaining the employees.  The psychological capital is an emerging concept of positive organizational behaviour is a higher order construct having four dimensions of hope, resiliency, self-efficacy and optimism. Employee engagement is stronger predictor of positive organizational performance clearly showing the two-way relationship between employer and employee. The engaged employees are emotionally attached to their organization and highly involved in their job with a great enthusiasm for the success of their employer, going extra mile beyond the employment contractual agreement. There have been several studies that directly correlate high job involvement with job satisfaction and how it makes a difference in the organization.  The study aims at studying of psychological capital and employee engagement behaviour among the employees of select banks in north India. A data of 159 employees working at different managerial levels was collected from different banks. The Pearson’s correlation and regression analysis were performed. The results showed that psychological capital is positively related to employee engagement at workplace in Indian banking sector.