Impact of Positive Psychological Capital on

Employees Job Satisfaction and innovative performance

Abstract
The outcomes of positive Organizational Behavior have huge contribution in
positive psychological capital. Since there is too much work has been done on
employee innovative performance and satisfaction. Positive psychological capital
has defined as employees positive attributes towards workplace. The current
study tells us the relationship between the employees Satisfaction and innovative
performance that are positive associated with each other. There higher level of
employees satisfaction moves employees toward innovative job performance
that is in good deed for Organization because without innovation there is no
more future of the organizations in marketplace.

Keywords: Positive Psychological Capital, Job Satisfaction,
Innovative Performance

INTRODUCTION
The purpose of this study is to investigate the impact of psychological capital on
employees satisfaction and enhancing innovating performance.
Employees Satisfaction and performance evaluation is an important concern for
the Organizations and as well as the researchers (Kanter,1988). The speedy
competition among organization leads there human resource to more efficient,
bring up to date, satisfied and productive so that the organizations can achieved
the competitive advantage on their competitors (McAdam & keogah, 2004).
Moreover the organizations need their human resource to achieve the
organizational desired objectives and goals (Amabile, 1988; Carson & Carson,
1993). The human resource is the key success for the organizations and helps to
achieved competitive advantage because the human capital is not easily copied
(Larson & Luthans, 2006; Luthans, Avolio, Avey, & Norman, 2007; Luthans,
Norman, Avolio, & Avey, 2008).

Innovative performance tells us the quantity and quality of the business ideas and
efficiency and effectiveness of the implementations of those ideas these two
parameters are independent, however, when combined they form the definition
of innovative performance. (Amabile, 1988; Carson & Carson, 1993)
Quantity and quality of ideas enhance the innovation performance of the
organizations, while top level management decisions and implementing the
continuous improvement in our human resource in term of training, Orientation,
Knowledge, skills and abilities to perform a certain job that leads to efficiency and
effectiveness in the workplace. That can be shown in figure 1 (Allan Rayan)




The Strategic innovation involves top level management in innovation process
thats defined goals of the top level of management and ways are defined to
achieve those goals (Damanpour, 1991). The continuous innovation is a process in
which a stander is fixed then achieved this stander. When the stander is achieve
the another stander is fix to achieve. When employees achieve a stander they got
satisfied with their work and in innovation performance increase (Amabile et al.,
1996).

Dimensions of independent and dependent Variables

The Independent variable is Psychological Capital that is defined in terms of
efficacy, optimism, hope and resilience. The Dependent variable are employees
job Satisfaction and innovative performance. ( Luthans & Youssef, 2004)

Positive Psychological Capital is defined as
"An individual's positive psychological state of development and is characterized
by:
1. having confidence (self efficacy) to take on and put in the necessary effort
to succeed at challenging tasks;
2. making a positive attribution (optimism) about succeeding now and in the
future;
3. persevering toward goals and, when necessary, redirecting paths to goals
(hope) in order to succeed; and
4. When beset by problems and adversity, sustaining and bouncing back and
even beyond (resilience) to attain success."
So the Psychological Capital consists of efficacy, optimism, hope and
resilience and when combined has been shown to represent a second-
order, core factor that predicts performance and satisfaction better than
each of the four factors that make it up (Luthans, Avolio, et al., 2007)


LITRETURE REVIEW
Psychological Capital has initiate that it is linked with multiple performance and
their results in the workplace, lesser the employee absenteeism, less employee
distrust and also have no purpose to quit, in the results higher job satisfaction,
commitment, and innovative performance (Bartlett & Ghoshal, 1989). Research
has also found Psychological Capital can be improved by a supportive work
climate. In terms of being state-like, Psychological Capital has been developed by
short term training sessions both in classroom or on work, Orientation that is also
a short training about the organization that tells employees about the
organization visions, Mission, goals and achievements that helps and Motivate an
employees to set their targets to achieved Desire goals those are in favor of
organization and as well as the employees (Snyder, 1994).

Efficacy: The efficacy believes in ones ability to mobilize cognitive
resources to obtain specific outcomes.
Self-efficacy or efficacy is the belief about ones ability to accomplish a task,
influences perception, motivation, Satisfaction and innovative performance of the
task. Managers attempting to increase self-efficacy in its employees must first
identify its source. Below are 4 principle sources of self-efficacy in the workplace.
Those are past performance, Modeled Behavior, Self persuasion and
psychological response
Past Performance: The most effective way of developing a strong sense of
efficacy is through mastery experiences. Employees who have previous
experience with on the job success have more confidence to complete similar
tasks (high self-efficacy) than those who do not (low self-efficacy). If employees
are satisfied with their past performance then they are motivated and satisfied
with work and the result is Innovative work performance.
Modeled Behavior: Self-efficacy can achieve by learning from modeled behavior.
When an employee examine a coworker successfully complete a task, they will
feel more confident they can also successfully complete a similar task. Seeing
people similar to oneself succeed by sustained effort raises observers beliefs that
they too possess the capabilities master comparable activities to succeed.
Modeled behavior helps employees to remain satisfied on work and achieve
innovative performance.
Social Persuasion: Employees can be persuaded to believe that they have the
skills necessary to successfully complete a task. Both positive encouragement
(Satisfaction) as well as convincing others that they have the ability to succeed at
the particular task (innovative performance) can facilitate self-efficacy. When
managers are confident that their employees can successfully perform a task,
they perform at a higher level, in a result innovative performance increase.
Psychological Response: The emotional, physiological and psychological response
of an individual can influence their level of perceived efficacy. A person who
expects to fail at a task, or finds the task too demanding will experience a set of
emotional cues: racing heart, blushing, sweating, headaches, etc. If these
physiological cues are persistent and severe enough, they contribute to a sense of
weak self-efficacy in the employee. The employees are more satisfied, the more
the innovative performance is.
Hope: Hope is defined as a positive motivational state where two basic elements
Successful feeling of l oriented determination) and pathways (or planning to
achieve those goals) interact.
The Psychological capital model describes hope as having the willpower and
pathways to attain ones goals (Luthans & Youssef, 2004, p. 152).
As per definition hope is a Satisfaction and motivational state in which there are
two elements the first is ones willpower and second is way to achieve those goals.
Employees have willpower to achieved goals that motivate and satisfy employee
and organizations are defined ways how these goals are achieved by innovative
work performance.
Optimism: An Optimistic person is defined as one that makes "Internal" or
"dispositional", fixed and global attributions for positive events and "External" or
"situational", not fixed and specific attributions to negative events. Optimism in
Psychological capital is thought as a realistic construct that regards what an
employee can or cannot do, as such, optimism reinforces self efficacy and hope.

Resilience: Is defined in Positive Psychology as a positive way of coping with
danger or distress. In organizational aspect, it is defined as an ability to
recuperate from stress, conflict, failure, change or increase in responsibility
Psychological capital is a positive state-like capacity that has undergone extensive
theory-building and research. Psychological capital is defined as "an individual's
positive psychological state of development and is characterized by:
Having confidence (self efficacy) to take on and put in the necessary effort to
succeed at challenging tasks;
Making a positive attribution and expectation (optimism) about succeeding now
and in the future;

Persevering toward goals and, when necessary, redirecting paths to goals (hope)
in order to succeed; and
When beset by problems and adversity, sustaining and bouncing back and even
beyond (resilience) to attain success.

Positive psychology, the study of optimal human functioning, is an attempt to
respond to the systematic bias inherent in psychology's historical emphasis on
mental illness rather than on mental wellness (Seligman, 2002), mainly by
focusing on two, forgotten but classical psychological goals:
Two new branches of positive psychology are being implemented into the
industrial-organizational world.
Positive organizational scholarship- a research field that emphasizes the
positive characteristics of the organization that facilitates its ability to function
during periods of crisis.
Positive organizational behavior (POB) focuses on measurable positive-
psychological abilities of the employee. The research is trying to discover and
develop those abilities in order to improve job performance.

There are some positive and negative factors of psychological capital. I work
on Positive factors of psychological capital, that enhance job satisfaction,
commitment and as well as employee performance. In recent years,
organizational behavior research has taken a slight shift from seeing
individuals as coping with negative weaknesses to those enhancing their
positive strengths and well-being at the workplace, individuals are now seen as
decision makers, with choices, preferences, and the possibility of becoming
masterful, efficacious, or, in malignant circumstances, helpless and hopeless.






Theoretical Framework
Framework adopts the perspective that in order to understand the psychological
capital, that is based on hope, resilience, optimism and efficacy. Its Desirable
attitude involves satisfaction and well being enhance the employee performance
and overcome the undesirable attitude, stress and anxiety.
In recent years, organizational behavior research has taken a slight shift from
seeing individuals as coping with negative weaknesses to those enhancing their
positive strengths and well-being at the workplace, individuals are now seen as
decision makers, with choices, preferences, and the possibility of becoming
masterful, efficacious, or, in malignant circumstances, helpless and hopeless.

Meanwhile, a growing body of positive-oriented research has advanced the
exploration of the wellness and wellbeing of humans in general and in particular
to its relevance to workplace. This body of knowledge includes Positive
Organizational Behavior
(POB, Luthans)



Hypothesis:
Psychological capital is positively related to Job Satisfaction and innovative
performance.