The Mediating Effect of Psychological Capital on Authentic Leadership and Organizational Commitment among Catholic Higher Education Institutions in Batangas

Abstract

Philippine higher education institutions (HEIs) constantly deal with challenges of increased employee attrition and turnover rates, more recently due to the enhanced attractiveness of free public college education in the country. More than ever, private HEIs call for administrators who exemplify a leadership style that enhances employee commitment. This study determined the mediating effect of psychological capital on the relationship between authentic leadership and organizational commitment among employees of Catholic HEIs in the Batangas province. Explanatory sequential mixed method design was utilized. Sample of the study comprised full-time academic and non-academic employees of the six Catholic HEIs in Batangas who did not hold any administrative position during the conduct of the study. The respondents accomplished a questionnaire containing standardized items for organizational commitment, authentic leadership and psychological capital. Selected respondents participated further in interviews to explore on their experiences of authentic leadership and organizational commitment. Results revealed that employees of Catholic HEIs perceived very high levels of authentic leadership among their immediate heads and they have high levels of organizational commitment and psychological capital. Authentic leadership significantly influenced the employees’ psychological capital and organizational commitment. Nevertheless, psychological capital was not found to mediate the effect of authentic leadership on organizational commitment. The insights shared by respondents during the interviews reinforced concepts of authentic leadership and organizational commitment. A Human Resource (HR) module on leadership is proposed to contribute to the business sustainability of these Catholic HEIs.