THE MODERATING ROLE OF PSYCHOLOGICAL CAPITAL IN THE RELATIONSHIP BETWEEN PERCEIVED ORGANIZATIONAL POLITICS AND EMPLOYEE COMMITMENT: A STUDY OF SRI LANKAN PUBLIC SECTOR EMPLOYEES

Abstract

The influence of psychological capital on the relationship between perceived organizational politics and employee commitment is not well understood, particularly in Sri Lanka. This study aims to examine the role of psychological capital as a key resource within the framework of the Conservation of Resources (COR) theory, focusing on its ability to buffer the adverse effects of stressors such as perceived organizational politics. Specifically, this study seeks to elucidate how psychological capital, defined as an individual's positive psychological state, moderates the relationship between perceived organizational politics and employee commitment. Data were collected using questionnaires from public sector employees in Sri Lanka using a convenience sampling method. Through a quantitative analysis of 211 usable responses from a sample of 400, this study used SPSS to reveal a notable negative correlation between perceived organizational politics and employee commitment, and the significant moderating role of psychological capital. This study revealed a significant negative relationship between perceived organizational politics and employee commitment. Furthermore, our findings highlight the significant role of psychological capital as a moderator, demonstrating that an individual's psychological state moderates the effects of perceived organizational politics on employee commitment. Therefore, this study demonstrates that an individual's positive psychological state positively moderates the relationship between perceived organizational politics and employee commitment. This research contributes to the existing body of knowledge by deepening our understanding of the role of psychological capital in organizational settings, particularly within the context of the COR theory. This study also provides valuable insights into the protective function of psychological resources against workplace stressors. This study underscores the imperative for organizations to acknowledge and address the detrimental effects of perceived organizational politics on employee commitment. Additionally, it emphasizes the importance of fostering the positive attributes of psychological capital to enhance an individual's ability to manage stress and recover from challenging situations.