Does organizational virtuousness and psychological capital impact employee performance: evidence from the banking sector

Abstract

Purpose Positive psychology views organizational virtuousness (OV) and psychological capital (PsyCap) as significant external and internal variables. From a research perspective, both OV and PsyCap have indicated a positive relationship with employee performance. However, the underlying mechanism of the causal relationship needs to be explored. Design/methodology/approach The study employed a cross-sectional design. The sample was collected through snowball technique from (n = 122) Indian bank employees from the public (51 per cent) and private sector (49 per cent). Findings OV and PsyCap reveal a positive effect on self and supervisor-rated performance of the Indian bankers. OV predicts PsyCap. Overall, OV and PsyCap impacts supervisor-rated performance. Research limitations/implications Our study demonstrates that organizations can develop employee OV to enhance their PsyCap. It is essential to improve their perceptions of OV. Moreover, this relationship also empowers employee performance, thereby emphasizing the importance of OV among employees, managers and organizations. Study findings seem robust, but other researchers should extend this work into other sectors and with larger sample sizes. Originality/value Our study is the first to explore the relationships between OV and PsyCap. Also, it assesses the variable’s impact on self and supervisor rated performance. The results of our study provide insights into banking employees' performance that managers can use in their daily operations.

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