Results 1 HLM Results References

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-