The Mediating Role of Psychological Capital in the Relationship between Transformational Leadership and Job Performance

Abstract

In leadership research, Psychological Capital is considered an important construct and gained prominence. For both leadership development and job performance of employees’ psychological capital is considered as a vital factor. The present study investigated the impact of transformational leadership on job performance with the mediating role of psychological capital in the context of Quetta, Pakistan. The survey was conducted in public and private higher educational institutes of Quetta city. Respondents of the study comprised of teaching faculty and their heads of departments (HOD’s). 261 responses were collected, out of which 200 were teachers and 61 were HOD’s. Data were analyzed using the SPSS and AMOS. Results of the study showed that transformational leadership has a positive influence on job performance, in addition, psychological capital fully mediates the relationship between transformational leadership and job performance. Thus, this was revealed that transformational leaders with positive attitudes enhance the psychological capacities of their subordinates and employees with higher psychological capital can do more through their positive work behavior to achieve organizational objectives.