The amount of empirical research is growing in the field of psychological capital (PsyCap), and concepts related to organizational constructs such as work engagement. The purpose of this research was to empirically study the relationship between leader psychological capacities (PsyCap) and employee work engagement at a community bank. The approach for this inquiry was a quantitative research study using a cross-sectional design at a Massachusetts community bank. The instruments used in this study were Psychological Questionnaire and Utrecht Work Engagement Scale. Community banks faced with stiff competition from national banking institutions and financial technology companies or fintechs, moving into the banking space, are also heavily burdened by federal regulation and reform. The main focus for the bank has been to evolve innovative thinking to continue to provide exceptional products and services through end to end digital technology and the bank’s human capital. Community banks support small-business owners, lend money for mortgages for local housing, and often have a strong commitment to the community through community engagement, charitable giving, and volunteerism. The research found a statistically significant relationship between employee perception of leader PsyCap and employee work engagement (r) 201 = .440, p < .001), indicating a moderate association. Multi-regression analysis resulted in the subscales of hope and optimism significantly predicted employee work engagement. This result strongly indicates that leaders with positive PsyCap have higher level of work engagement among employees. PsyCap can be developed and modeled by leaders and peers to increase employee engagement in the banking environment.
|Commitee:||Flowers, Joseph, Philpott, Debbie|
|School:||Indiana Wesleyan University|
|School Location:||United States -- Indiana|
|Source:||DAI-A 82/2(E), Dissertation Abstracts International|
|Subjects:||Organizational behavior, Banking, Occupational psychology|
|Keywords:||Community banks, Employee engagement, Leadership style, Psychological capital, Psychological Questionnaire, Utrecht Work Engagement Scale|
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