IMPACT OF PSYCHOLOGICAL CAPITAL ON EMPLOYEE SUBJECTIVE WELLBEING OF GOVERNMENT BANKING SECTOR IN SRI LANKA

Abstract

In an era where employee well-being is paramount to organisational success, psychological capital emerges as a transformative asset, offering a pathway to unlock resilience, optimism, and positivity among the workforce. During an economic crisis, a country's financial sector relies heavily on its people. That's why government banks prioritise their human capital; hence, this need inspired the focus of this study. Therefore, a current study investigated the impact of psychological capital on employees' Subjective well-being of government bankers using Broaden and Build theory of positive emotions as a foundation for the study. Based on theory and existing literature, the researcher developed a conceptual model grounded in the Broaden-and-Build Theory and supported by empirical evidence. The study used an online-based questionnaire to collect the primary data from the sample. Multiple linear regression analysis and Correlation analysis were applied as data analysis techniques to examine the hypothesis acceptance or rejection of this quantitative study, using SPSS 27 software. The results indicated that psychological capital has a significant positive impact on employee subjective well-being, and resilience had the most significant impact, with is +0.368 beta value of and that impact was significant at a 95% confidence level (P=0.000). Self-efficacy, Hope, and Optimism also have a significant positive impact, respectively. Finally, implications and recommendations that help policymakers and top management to enhance employee subjective well-being through developing related policies, programs and future directions were discussed.