Psychological Capital Augments Employee Engagement

The purpose of this paper is to examine the importance of psychological capital as a significant predictor of employees' engagement and also how these positive psychological capabilities motivate employees to perform beyond their job description. In today's competitive environment, it is a challenging task for all organizations to enhance the levels of work engagement among employees. To address this challenge, the present study focuses on how core dimensions of psychological capital are related to employee engagement, as it contributes positively to different workplace outcomes and performance level of employees. The study has been conducted using a sample of 200 IT professionals. Data analyses were performed using correlation analysis and structural equation modeling. The result of path coefficient (beta=.70, p<.001) suggested that high (low) psychological capital was associated with high (low) employee engagement. A positive and significant correlation was reported between psychological capital and employee engagement. The findings suggested psychological capital work as a significant predictor, along with the other variables in fostering employee engagement.