Psychological capital, adaptability, engagement and performance in a multinational company following the GFC

The Global Financial Crisis (GFC) affected many organizations across the world. There are numerous studies that have examined the financial impacts on organizations and employees but few that have investigated the human capabilities and qualities of employees who survived the crisis. The current study examined the relationships among Psychological Capital (PsyCap: involving self-efficacy, optimism, hope and resilience), employee engagement and employees’ self-perceptions of performance and of personal adaptation after the GFC, in a multinational organization with headquarters in Europe. The sample totaled 183 employees from across Europe, the US and Asia, enabling cross-cultural comparisons of the relationships among PsyCap, engagement, performance and perceptions of how well the changes occasioned by the GFC were handled. The Psychological Capital Questionnaire, the Utrecht Work Engagement Scale, and specially developed self-assessment scales assessing perceived performance and perceived coping were administered (online). PsyCap significantly predicted all elements including the self-assessed competence in handling the GFC-occasioned changes that had occurred. These results occurred across the total sample and were seen also in each region. The GFC may well have impacted the different regions differently but the similarities in the models across each region suggest that organizational managers and HR will find value in understanding and using Psychological Capital in their recruitment, selection and employee enhancement programs.