Influence of Managerial Employee’s Psychological Capital on Organizational Performance

Abstract

Performance management reforms are essential for an organized business with strong economic value to improve further. Strengthening employees' knowledge and skills necessary for their work can enhance organizational performance. In the current stage of the enterprise, the psychological capital of managers plays an increasing role in enhancing organizational performance. Creating a psychological environment with a greater sense of well-being, achievement, and belonging, it goes to have an impact on the behavior of managers to achieve the maximization of organizational benefits and management performance. In the process of personnel management in the past, the main concern of enterprises is how to improve the organizational performance of employees, while ignoring the psychological needs of managers, so that many incentives can not be effectively implemented. Based on this, this paper studies the three dimensions of psychological capital and the three dimensions of organizational performance, and constructs a relevant structural equation test model, using theoretical analysis and empirical analysis methods, to verify the positive impact of psychological capital on organizational performance, to provide a reference for the study of the impact of managers' psychological capital on organizational performance, and to play a more positive role in promoting the company's strategic objectives.