Policies on psychosocial hazards at work are gaining importance. Subsequently, a number of indicators have been proposed to assess the phenomenon such as the Management Standards Indicator Tool (MSIT). This study focuses on the short-version of the MSIT and aims to evaluate the convergent and discriminant validities of the measures, explore whether these measures can be represented by a higher-order factor of work-related stress and to contribute towards better understanding of its concurrent validity. Data were obtained from 452 full-time managerial-grade employees working in a multinational manufacturing plant in Malta. The study shows that the original 25-item MSIT measures have convergent and discriminant validity issues. Following the removal of five items, the revised indicator demonstrated good construct validity and was well-represented by a higher order factor. Additionally, the second-order factor of the modified MSIT mediated the relationship between psychosocial safety climate and psychological well-being and slightly interacted with engagement to explain improved well-being in the mediational pathway. This study suggests that the modified MSIT is effective in assessing psychosocial factors in stress-management interventions. The MSIT has good prospects to be further adopted in the process of developing better policy and standards for the improvement of psychological conditions at work.