Psycap Case Study

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AN INVESTIGATION ON THE RELATIONSHIP BETWEEN LEADER AND FOLLOWER PSYCHOLOGICAL CAPITAL, TRUST AND JOB PERFORMANCE IN FINANCE ORGANIZATIONS

Background and Significance of the study
Today, there is an intensifying complexity of businesses, competition and turbulent environment. During this turbulent time, academics (Seligman, 2002; Luthans and Avolio, 2003) have emphasized the importance of hope, optimism, self-efficacy and resiliency. As per the findings of Luthans and Avolio (2003) the investigation of leader’s influence mediating through the followers work will provide a better understanding to the dynamics of leadership process. Walumbwa, Hartnell and Oke (in press) states that followers’ behavior, performance and their states can be positively
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According to Walumbwa et al. (2010) focusing on a moderator the existing knowledge based of PsyCap will increase. Therefore the second objective highlights the importance of combining contextual factors by increasing the practical usage of PsyCap in enhancing Finance performance.
The final objective of this study is to explore whether leaders PsyCap effects of followers PsyCap on their performance. This objective is focused on filling the existing gap in the literature regarding whether leadership affects followers’ positivity on their performance.
The following hypotheses were developed based on the literature review.
Hypothesis 1: Leader PsyCap positively relates to followers PsyCap
Hypothesis 2: Follower PsyCap have a positive relationship between their job performances
Hypothesis 3: Follower PsyCap mediates the relationship between leader PsyCap and follower job performance
Hypothesis 4: Followers trust moderates the influence of follower psycap on their performance
According to the theoretical background and literature review the conceptual framework of the study can be illustrated as follows.

Group
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Since quantitative approach is preferred when testing existing theories. Data will be collected through a survey using questionnaire, participants for the will be selected from Finance organizations. Data will be collected from both leader and follower. To measure PsyCap standard 24 items PsyCap Questionnaire will be used (Luthans et al., 2007). Leader rated performance will be measured using 4 item scale used by Walumbwa, Avolio and Zhu (2008b). The immediate supervisor of each follower will be asked to provide a performance rating of their followers. General information such as Gender, age will also collect. To assess the trust, the organizational trust Inventory (Cummings & bromiley, 1996) will be used. Data will be presented using frequency tables and percentages. Regression, correlation and multicollinearity will be used to analyze the data. Data will be nested and multilevel in nature since followers who evaluated their own perception of trust and their own psychological capital are nested within their supervisors and each leader will evaluate their subordinates besides evaluating their own PsyCap. According to the findings of Raudenbush & Bryk (2002) Hierarchical Linear Modeling (HLM) will be used to test the

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