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.