Combined Effects of Psychological Capital and Psychological Contract on Employees’ Job Level Outcomes

Abstract

This study examined the direct effect of psychological capital on employees’ job level outcomes. In addition, the study also examined the moderating role of psychological contract types (relational and transactional contract) on the direct relationship between PsyCap and job level outcomes. Longitudinal research design was adopted for this study and data were collected from employees working at different organizations in telecom sector. After deleting incomplete and invalid survey instruments the remaining sample size left with 411 respondents. Findings of the study revealed that PsyCap was positively related with employees’ behaviors and in-role- performance. The results also showed that psychological contract types (Relational and Transactional contract) moderated the direct relationship between PsyCap and counterproductive work behavior; however, psychological contract types (Relational Contract and Transactional contract) did not moderate the direct relationship of PsyCap with OCB, and in-role performance.Future research directions and implications of the study are also discussed.

Keywords: PsyCap, relational contract, transactional contract, OCB, CWB, in-role-performance.