Effects Of Psychological Capital On Employee Performance: The Mediating Role Of Quality Of Work Life Among Employees At The Offinso Municipal Assembly

Abstract

The purpose of this study was to investigate the effects of psychological capital on employee performance; the mediating role of the quality of work life among employees at the Offinso Municipal Assembly. Using an explanatory research design and adopting the quantitative method of research, structured questionnaires were administered to 272 randomly sampled employees at the Offinso Municipal Assembly. The study's hypotheses were tested using partial least squares structural equation modelling and descriptive analyses were performed using Statistical Package for the Social Sciences. The study's results showed that each of the four components of Psychological Capital; optimism, self-efficacy, hope, and resilience had a significant and positive relationship with employee performance and the relationship was partially mediated through the Quality of work life of the employees. In view of this, it is recommended that management put in place interventions to help employees obtain and maintain positive psychological resources (e.g., self-efficacy, hope, optimism, and resilience) which are fruitful for their Quality of work life and performance. The Quality of work life of employees should be improved by designing a work environment with safe working conditions, opportunities for growth and advancements and also a sense of belongingness. This will make employees more enthusiastic, dedicated, and focused on their work, which will further improve their performance.