Impact of psychological capital on performance of employees of Indian insurance sector

Pages: 1528-1532
Suresh K. Darolia and Neelam (Department of Psychology, Kurukshetra University, Kurukshetra, Haryana)

Job performance of the employees is one of the central constructs which plays a crucial role in achieving organizational goal. The concept of psychological capital (PsyCap) has received much attention in the recent past as a new approach to enhance the job performance of the employees. However, the extent of the association between PsyCap and job performance has not been investigated in India among banking or insurance sector employees. On the other hand the work values, attitude, and work conditions of Indian employees are different from those of other countries. Variations along these factors may affect the relationship between construct of psychological capital and the job performance. Therefore, this study was designed to propose a conceptual model for empirical examination of the association between psychological capital and job performance of insurance sector employees. This study was conducted on 300 Life Insurance Corporation agents and officers drawn from eight district of Haryana state. The psychological capital questionnaire by Luthans (2007) and job performance scale by Singh and Pestonjee (1988) were administered to achieving the research goal. The obtained data were treated statistically for descriptive statistics, Pearsonian correlation and linear multiple regression. The results of the study indicate strong association between each of the individual PsyCap constructs, the global PsyCap and job performance. Resilience correlates .61, Efficacy .55 Hope .50, & Optimism .45, respectively with job performance. Overall PsyCap measure has yielded a higher degree correlation with performance, i.e., .64. Regression analysis suggests that among four PsyCap constructs Resilience and Efficiency emerged as most potent predictors of job performance of insurance sector employees.