The Role of Envy and Psychological Capital on Performance in Banking Industry of Pakistan

Abstract

The objective of this study is to provide a criterion for businesses in making the right decisions about a conventionally negative emotion such as workplace envy. This study contributes to the literature by exploring the positive side of envy and by comparing it with the traditional antecedent of individual and organizational performance like psychological capital (PsyCap). Such comparison can help organizations to decide if they should continue their current efforts to build PsyCap or shift their focus towards regulating envy. Data were collected in two waves from branch managers and operations managers of 360 bank branches across Punjab province in Pakistan. Combined positive effects of envy and PsyCap are observed on individual and organizational outcomes, using Structural Equation Modeling (SEM) approach. It is found that envy work as a stronger motivational force towards favorable outcomes. Hence, it is recommended that organizations should steer their efforts and resources towards regulating envy.