387 psychological capital significantly predicted their job engagement
ˆ
= .92, p  .001; Model 3. Similarly,  HLM  results  revealed  that  supervisors’  psychological  capital  significantly  predicts
subordinates’ psychological capital 
ˆ
= .15, p  .05; Model 1. These results provide support for Hypothesis 1 and Hypothesis 2, respectively.
Table 1 presents the HLM results. In the first step, supervisors’ psychological capital needs to be related to job engagement. In support of this condition, HLM results revealed that supervisors’
psychological capital was significantly related to job engagement( 
ˆ
= .17, p  .05; Model 2. In  the  second  step,  supervisors’  psychological  capital  needs  to  be  related  to  subordinates’
psychological capital, which was supported in our testing of Hypothesis 2 above. Step 3 requires that  individuals’  psychological  capital  be  related  to  job  engagement.  This  requirement  was
supported by the results of Hypothesis 1 see Model 3. Finally, in the fourth step, we included both individuals’ psychological capital and the mediators in the regression. As reported in Model
4 in Table 1, the effect of supervisors’ psychological capital was not significant( 
ˆ
= .06, ns, Model  4,  but  it  was  reduced  in  magnitude  compared  with  the  effect  in  step  1.  Therefore,
subordinates’  psychological  capital  mediated  supervisors’  psychological  capital  on  job engagement,  providing  support  for  Hypothesis  3.  A  Sobel  1982  test  also  confirmed  that  the
indirect effect was significant t = 5.59, p  .001.
5. Discussion
One  of  the  critiques  of  positive  organizational  behavior  raises  concern  about  the  utility  of PsyCap with respect to job outcomes Avey,  Luthans,  Youssef, 2010; Luthans, et al., 2007;
Walumbwa et al., 2010. However, at this stage  in the development of  positive organizational behavior
,  empirical  analysis  is  need  to  assess  whether  PsyCap  adds  value  to  job  engagement, which,  to  date,  remains  untested.  This  is  the  first  study  to  examine  the  relationship  between
PsyCap  and  job  engagement.  This  study  supports  that  job  engagement  as  a  potential  valuable positive psychological resource may lead to increased employee engagement. The findings thus
provide empirical support for Sweetman and Luthans’ 2010 argument that a key component in developing job engagement can be found in developing PsyCap.
388 A second major implication is that the results highlight the offering theory, which explains how
supervisors’ psychological capital is related to subordinates’ job engagement. The present study extends  the  research  and  tests  social  contextual  factors,  namely,  that  supervisors’  display  of
psychological  capital  will  be  positively  related  to  subordinates’  psychological  capital  display. The results provide support for the motivational process of the COR theory. When subordinates
experience  positive  psychological  support,  they  tend  to  seek  signs  of  the  availability  of compensatory  psychological  resources  by  observing  their  supervisors’  energy  levels  and
behaviors. Thus, the relationship between subordinates’ display of psychological capital becomes more positive as the supervisors’ PsyCap increases.
Whereas the present study integrates conservation of resources theory and social learning theory research, we propose that supervisors’ psychological capital may also influence subordinates’ job
engagement  by  directly  influencing  the  subordinates’  psychological  capital.  Indeed,  we  found that,  as  expected,  supervisors’  psychological  capital  mediated  the  relationship  between
subordinates’ psychological capital and subordinates’ job engagement. Our findings suggest that subordinates’ psychological capital played a dominant role relating to employee job engagement.
5.1 Practical Implications
The  present  research  indicated  that-in  addition  to  the  states  and  behaviors  of  subordinates- subordinates’ positivity is also essential to organizational performance. Furthermore, the analysis
of  supervisors’  psychological  capital  provided  more  evidence  that  COR  theory  and  social learning  theory  may  influence  individual-level  constructs  at  group  levels  Clapp-Smith,
Vogelgesang,  Avey, 2009. Along these lines, West, Patera, and Carsten 2009 suggested that training  directed  at  team-level  capacities  may  yield  more  advantages  than  individual-level
training,  especially  if  the  training  can  be  executed  through  individuals  but  made  operational through the team. Because psychological capital is malleable and can be developed, determining
how  to  cultivate  and  manage  subordinate’  psychological  capital  is  crucial  for  supervisors.  We provide the following advice for supervisors and practitioners.
First, when a company engages in the recruitment or selection process, managers need to take into  account  the  candidate’s  existing  psychological  capital.  Second,  in  addition  to  considering
applicants’ psychological capital, supervisors and team members can, through sharing successful stories,  enhance  the  self-confidence  of  new  hires,  thereby  improving  their  job  performance.
Supervisors  can  also  set  specific  and  challenging  goals  for  employees.  In  this  way,  employee uncertainty  will  be  reduced  and  managers  can  help  employees  develop  more  positive  and
optimistic attitudes toward work. Finally, team supervisors are usually regarded as role models in their  team,  and  other  team  members  will  sometimes  imitate  their  speech  and  behavior.  Thus,
determining  how  to  maintain  good  relationships  with  these  significant  personalities,  and simultaneously  helping  them  to  identify  with  their  team  members  and  develop  their
psychological capital, will be crucial for supervisors.
6. References
Avey, J. B., Luthans, F.,  Mhatre, K. H. 2008. A Call for Longitudinal Research in Positive Organizational Behavior. Journal of Organizational Behavior, 295, 705-711.
Avey, J. B., Luthans, F.,  Youssef, C. M. 2010. The Additive Valueof Positive Psychological Capital in Predicting Work Attitudes and Behaviors. Journal of Management, 362, 430-