Effect of psychological capital on employee performance, work stress, job insecurity, and job satisfaction: evidence from India

Employee performance achievement, ensuring job satisfaction, reducing work related stress, and minimizing job insecurity are the important pressing issues in human resource management. Work stress has become a ubiquitous aspect of contemporary work environment and Indian workforce is also suffering from increased job insecurity. This research examines effect of psychological capital (PsyCap) on stress, job satisfaction, job insecurity, and employee performance. It also examines the ecological validity of PsyCap construct in the Indian socio-cultural system with reference to employee performance and job satisfaction. This research was done on a sample of 300 employees working in life insurance and telecom organizations in the private sector. Findings revealed that PsyCap has a positive association with employee performance and job satisfaction but inversely related to job insecurity and stress. The paper discusses managerial implications and offers theoretical contributions.