CHAPTER 3 RESEARCH GAPS, CONCEPTUAL MODEL, AND HYPOTHESES

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1 CHAPTER 3 RESEARCH GAPS, CONCEPTUAL MODEL, AND HYPOTHESES Studies on PsyCap in Indian context are very few, especially the one which covers the following gaps. Based on the literature review done in chapter II, following gaps have been identified Research Gaps: i) Several researchers have provided empirical evidence that PsyCap engender favorable outcomes at the workplace (Luthans et al., 2007a; Avey et al., 2008b, 2011; Newman et al., 2014). But, the underlying mechanism or path through which PsyCap brings these favorable outcomes is not discussed explicitly in these studies. The variables which will affect the influence of PsyCap to generate positive outcomes need detailed exploration. PsyCap can be expected to first generate intrinsic motivation and commitment among employees which will in turn will have positive effect on the favorable workplace outcomes. ii) Studies have shown that intrinsically motivated employees are performers (Ryan & Deci, 2000). Similarly, employees who are goal-committed are shown as task performers (Locke & Latham, 1990). But, limited studies have studied these two constructs in the single study. iii) Perception about various attributes of job and justice at the workplace have been found affecting the intention and behaviors of employees, as suggested by Judge et al., 2000 in the core self-evaluation theory and in the leadership effect of transformational leadership (Piccolo & Colquitt, 2006). But, influences of organizational justice and job characteristics as 1

2 moderators on the relationship between a) PsyCap and intrinsic motivation, and b) PsyCap and goal-commitment have not been examined in the previous literature. Previous scholars of PsyCap have suggested that exploring the moderators between PsyCap and its outcomes will help in understanding the affects by which PsyCap can be strengthened or weakened (Avey et al., 2011; Newman et al., 2014; Luthans et al., 2015). iv) In today's dynamic working environment fulfilling in-role behavior is not sufficient. One has to display job behaviors that go beyond the job description to meet the demand of this flat' world and turbulent environment (Luthans et al., 2008b; Ryan & Deci, 2000; Friedman, 2005). There is a paucity of research in PsyCap literature where work performance has been studied as a multi-dimensional construct. v) To date, examination of the positive influence of PsyCap on employees attitudes and behaviors is mostly limited to developed countries such as USA (Avey et al., 2011; Newman et al., 2014; Luthans et al., 2015). Scant literature is available which has explored it in developing countries like India Research Objectives On the basis of research gaps, following objectives have been identified, which will be studied on the full time working employees of IT/ITes sector in India (Gap v): i) To examine the direct link between PsyCap and a. Intrinsic motivation, and b. Goal-commitment, (Gap i) 2

3 ii) To examine the direct link between: a. Intrinsic motivation and a) in-role performance, and b) extra-role performance (OCB), and b. Goal-commitment and a) in-role performance, and b) extra-role performance (OCB) (Gap ii) iii) To examine the moderating effect of organizational justice and job characteristics on the link between a. PsyCap and intrinsic motivation, and b. PsyCap and goal-commitment. (Gap iii) iv) To examine the positive impact of PsyCap simultaneously on a. in-role performance, and b. extra-role performance. (Gap iv) 3.3. Hypotheses Development Direct Causal Linkages Relationship between PsyCap and Work Performance Work performance is the cumulative result of behaviors of employees at the workplace (Campbell et al., 1993). Two types of work behaviors: in-role behaviors (IRBs) and extra-role behaviors (OCBs) have been reported as two dimensions of work performance (Williams and Anderson, 1991). A great deal of previous research on PsyCap has empirically confirmed that the four dimensions individually (Bandura, 1998; Bandura & Locke, 2003; Snyder, 2000), and the composite overall PsyCap (Luthans et al., 2005; Luthans et al., 2007a) impact employees task performance and well-being. In the broadenbuild theory of positive emotions, Fredrickson (2001, 2009) stated that the presence of positive emotion broadens the thought-action repertoires which become the source for a wide array of positive behaviors. The broaden-and- 3

4 build theory proposes that positive emotions broaden an individual's momentary thought-action repertoire which further develops the individual's personal resources ranging from physical, intellectual resources, social to psychological. This thought-action repertoire acts as a reservoir for further actions and behaviors of individuals resources (Fredrickson 2001, 2004, 2009). Avey et al. (2008b) argued that PsyCap generates positivity among employees, which in turn strengthens the motivation of employees to get involved in more positive behaviors like OCB. Thus, based on the above discussion we can posit that PsyCap will impact not only task performance (in-role behaviors) but will also lead to OCB (extra-role behaviors). H1-a: Employees PsyCap is positively related to employees in-role/task performance. H1-b: Employees PsyCap is positively related to employees extra-role performance/organizational citizenship behaviors. Relationship between PsyCap, Intrinsic Motivation and Goal-Commitment The four dimensions of PsyCap are suggested to have a synergetic effect. The underlying mechanism shared by these dimensions is one's positive appraisal of circumstances and probability for success based on motivated effort and perseverance (Luthans et al., 2007b). Such cognitive belief will lead to efficacious motivation and perseverance towards realistic goals, action plans through positive and optimistic outlook, hopeful determination, and resiliency towards adversity (Story et al., 2013). It has also been reported that an individual can be either intrinsically or extrinsically motivated towards work (Ryan & Deci, 2000). But, simply having motivation towards the goal will not 4

5 lead to the accomplishment of goals. Perhaps focus and commitment towards goal until its completion is also as crucial as motivation towards goals. Goalsetting theory (Locke & Latham, 1990) states that the willingness to work for the attainment of the goal is the main source of job motivation. To accomplish a task or a goal, the theory states that two conditions are essential employees self-belief and the commitment or determination to reach the goal. Employees self-belief that is a belief that one has the requisite potential to perform the task is similar to the self-efficacy of PsyCap. Self-efficacy develops confidence in one s own ability (Bandura, 1998) to reach the goal. Further, some of the PsyCap s dimensions such as hope and resilience makes individual committed to their task. Hope provides necessary willpower to reach the goal and if beset with problems it provides alternate pathways towards the goal (Snyder, 2000). Similarly, resilient is the bouncing back ability which keeps individual focused and determined to reach the goal irrespective of challenges and hurdles (Masten & Reed, 2002). Even overall PsyCap is found generating motivation propensity among the individuals that keep employees dedicated to their organization and work (Totawar, 2016). Thus, based on the above arguments it can be said that PsyCap will keep employees internally motivated and persistent towards goal. Hence, we can hypothesize that: H2: Employees PsyCap is positively related to employees intrinsic motivation. H3: Employees PsyCap is positively related to employees goal-commitment. Relationship between Intrinsic Motivation and Work Performance Ryan & Deci (2000), while explaining the intentions of individuals towards completion of the task, suggested that individuals who are intrinsically 5

6 motivated are self-motivated to perform, for them task itself is rewarding. But performance is the cumulative effect of two types of behaviors, both in-role and extra- role (Williams & Anderson, 1991). OCB is the discretionary extrarole behavior which individuals' displays out of their own desire. Organ (1988) stated that OCB are a matter of personal choice and not enforceable by the organization. Intrinsically motivated individuals found the task itself as rewarding and move towards its completion for their own self. At the same time, citizenship behaviors are discretionary and individuals perform it out of their own wish and interest. Thus, one can say that intrinsically motivated individuals will engage not only in in-role behavior but also in extra-role behaviors. On the basis of the above discussion, we posit that: H4: Employees intrinsic motivation is positively related to employees in-role /task performance. H5: Employees intrinsic motivation is positively related to employees extrarole performance/ organizational citizenship behavior. Relationship between Goal-Commitment and Work Performance In the goal-setting theory, goal-commitment has been suggested as a precursor of task performance. Individuals first accept and internalize the goals and then proceed to achieve them (Snyder, 2000). Acceptance is nothing but a type of commitment towards a goal (Locke et al., 1988). The goal-setting theory states that the willingness to work for the attainment of the goal is the main source of job motivation (Locke & Latham, 1990). Two eventualities of the goal-setting theory are self-efficiency and goal-commitment. Self-efficiency is the selfbelief and confidence of the individual in one s ability that one has the requisite potential to perform the task. Employees will be committed and 6

7 dedicated to goals if the goal is self-set, open, clear, and has a link to the organization's overall goal. Thus, to accomplish a task or a goal, the theory states that employees' self-belief and determination to reach the goal are important. In today s flat and boundaryless work environment, employees work on diverse projects with diverse work members (Alok, Raveendran, & Shaheen, 2014; Friedman, 2005). Hence, to accomplish the group goal these members are expected to work in close coordination, cooperation, and collaboration with each other (Alok, et al., 2014). Working in close coordination and collaboration requires helping and supportive behaviors. Helping co-workers in the work related activities, passing information on time, finishing work before the deadline, and assisting others when they require help, are nothing but the extra-role behavior and are termed as OCB (Organ, 1988; Williams & Anderson, 1991). To complete group goals commitment towards task as well as coordination and supportive behaviors are the norms of a group. Thus, based on the above arguments, we posit that: H6: Employees goal commitment is positively related to employees in-role /task performance. H7: Employees goal commitment is positively related to employees extrarole performance/ organizational citizenship behavior. Moderation Relationships PsyCap, Intrinsic Motivation and Goal-Commitment: Moderation of Organizational Justice The fairness perception of organizational actions by their employees is found to be significantly related to the favorable workplace outcomes (Cohen- Charash et al., 2001). It has been found that both PsyCap and OJ translate into 7

8 the higher level of employees' job satisfaction and work performance (Colquitt, Conlon, Wesson, Porter, & Ng, 2001; Paré & Tremblay, 2007; Totawar et al., 2014; Totawar, 2016). PsyCap fosters positive cognitions among the employees (Luthans et al., 2007a) which leads to the positive emotional experiences and which in turn allow employees to build their personal resources (Fredrickson, 2001). Positive emotional experiences at the workplace are conditional and dependent on the employees' perception of the justice in the organization (Totawar et al., 2014). Adam s equity theory (1965) also justifies the same. Equity theory suggests that individuals compare their outcome (rewards/pay) ratios to inputs (total work done) with the outcome/input ratios of other individuals. In metaanalysis studies on organizational justice, it has been found that the employees justice perception influences employees attitudes and behaviors (Cohen-Charash et al., 2001; Colquitt et al., 2001). When employees perceive that their efforts are acknowledged and rewarded in a similar manner to their colleague, then they feel motivated and committed to their goals (Greenberg, 1987). PsyCap employees are highly capable, but like any other individual when they will perceive injustice in their workplace in terms of resource allocation, fairness in policies and procedures, and transparent information dissemination, then possibility is that they might get demotivated and dissatisfied with their job, as justice perception has been seen impacting the job satisfaction and commitment level of the employees (Totawar, 2016). Past studies have found employees' perception of the support and fairness received from the organization influencing their motivation and behaviors (Lynch, Eisenberger, & Armeli, 1999; Paré & Tremblay, 2007). Broaden-build theory 8

9 of positive emotions (Fredrickson, 2001) also suggests that positive feelings develop a reservoir of positive experiences, which builds the personal resource of an individual. Organizational justice is found generating positive experiences among the employees (Tekleab, Takeuchi, & Taylor, 2005). That is if an employee perceives that his organization is fair and just then he will experience more positive feelings and employees will feel motivated and confident. Further, PsyCap gives necessary willpower to the individuals to reach the goal and when beset with problems it provides alternate pathways to reach the goal. It induces confidence and resiliency among the individuals and keeps them optimistic about their success. Goal-commitment provides a determination to the employees to remain focused and dedicated towards goal. A goal-committed employee accepts the goal and channels his/her energy to accomplish it. PsyCap through its willpower, confident and optimistic approach makes an individual more persistent and committed towards goals. On the other hand perception of being treated equally by the organization generates positive attitude and behavior among employees (Cohen-Charash et al., 2001; Lynch at al., 1999). Thus, both PsyCap and organizational justice will interact with each other and will influence employees cognition that leads to positive approach toward the accomplishment of task/goals. On the basis of above argument, we posit that: H8-a: Employees perceived organizational justice moderates the relationship between PsyCap and employees intrinsic motivation. H8-b: Employees perceived organizational justice moderates the relationship between PsyCap and employees goal-commitment. 9

10 PsyCap, Intrinsic Motivation and Goal-Commitment: Moderation of Job Characteristics Job characteristic theory explains how the characteristics of a job (JC) and characteristics of individual interact with each other to give beneficial outcomes such as job satisfaction, intrinsic motivation, task performance and less turnover intention (Hackman & Oldham, 1976). Utilizing this theory organization can encourage positive work attitudes and behaviors of employees by enhancing jobs along five dimensions (Piccolo & Colquitt, 2006). But, individual s perception and attitude about their job will also affect the consequences of JC (Saavedra & Kwun, 2000). Employees' perception about their job exclusively doesn't depend on objective characteristics of the actual job, but instead also relies on the available information about the job and their self-interpretation of their own abilities (cf. Piccolo & Colquitt, 2006). It has been seen that one person is more reactive to enriched job while other may not (Hulin, 1971), as individual's interest and perception differs from each other. PsyCap, owing to its positive outlook, will make a person more receptive and reactive to the enriched job. It has been suggested that JC predicts intrinsic motivation and task performance (Hackman & Oldham, 1976). Similarly, it has been confirmed that PsyCap enhances performance and extra-role behavior (Avey et al., 2008b). Changes in the job will be challenging to someone while it is a source of motivation for others (Hulin, 1971). But, their response towards the enriched job will depend on the personal resources of the individuals and PsyCap is the source of this personal and psychological resource as postulated in the job-demand resource model of 10

11 Bakker and Leiter (2010). Thus, it can be said that both JC and PsyCap will make an individual motivated and committed towards their goal. On the basis of above arguments, it can be hypothesized H9-a: Employees perceived job characteristics moderate the relationship between PsyCap and employees intrinsic motivation. H9-b: Employees perceived job characteristics moderate the relationship between PsyCap and employees goal commitment The Conceptual Model The model in Figure 5.1 posits that PsyCap will have a direct effect on (a) intrinsic motivation and goal-commitment, and (b) the two types of work performance in-role(task) and extra-role (OCB) performance. Intrinsic motivation and goal-commitment will have a direct effect on the two types of work performance (in-role and extra-role). Organizational justice and job characteristics are hypothesized to moderate the relationship of PsyCap with intrinsic motivation and goal-commitment. The hypotheses and model specification related to the proposed model are explained in the subsequent section. 11

12 H1-a H2 Psychological Capital (PsyCap) H8-a Organizational Justice H9-a Job Characteristics Intrinsic Motivation H5 H4 Task Performance Goal - Commitment H6 H7 Organizational Citizenship Behavior (OCB) H8-b H9-b H3 H1-b Figure 1 Proposed Conceptual Model 12

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