Contingent Effect of Conflict Management Towards Psychological Capital and Employees' Engagement in Financial Sector of Isalmabad

Abstract

The development and existence o f Psychological Capital (PC) and Conflict Management (CM) among employees could have an influence on positive work-related attitudes and behaviour fo r instance Employees ’ Engagement (EE) in every sector o f the industry. There is a gap in the management studies which cover the relationship o f psychological capital and employees’ engagement with the moderating role o f conflict management specifically among the employees working in the financial service sector. This study is an effort to examine this association between psychological capital and employees ’ engagement with the moderational role o f integrating style o f conflict management in the financial service sector o f Islamabad. These variables are becoming vital and play a significant role in business operations. A cross-sectional survey design was implied to gather primary data. A questionnaire comprised o f established scales was administered to 600 employees belonging to the financial service sector, including various banks, investment companies, insurance companies, brokerage firms, and real estate companies located in Islamabad, the Capital o f Pakistan with Ninety Two percent (92%) response rate. A deductive research approach has been adopted andpositivism philosophy is implied in this study. The collected data was then analysed with the inference o f correlation and counter checked by bootstrapping analysis, regression, confirmatory factor analysis (CFA), and structural equation modelling (SEM) were run through Statistical Package fo r Social Sciences (SPSS) and Analysis o f Moment Structures (AMOS) to evaluate the research model. The results o f the analysis indicate that psychological capital positively influences employees’ engagement significantly in the financial service sector and this relationship improves further positively with the inclusion o f an integrating approach or xiv style o f conflict management, when conflicts are handled and managed effectively and efficiently. The current study would give helpful directions to the managers o f the financial service sector and others and has implications fo r the design and implementation o f employees’ engagement practices and employees’ engagement policies to improve employees ’ performance at workplaces. Overall, this effort will contribute towards the being literature on the history o f employees ’ involvement, by investigating the unswerving impact ofpsychological capital on employees ’ engagement and with the moderating impact o f integrating approach or style o f conflict management in the financial service sector. This study will also highlight the importance and implementation o f psychological capital, conflict management, and employees’ engagement in the financial service sector in a developing country like Pakistan. Keywords: Conflict Management, Employees' Engagement, Field of Positive Psychology, Financial Sector of Islamabad, Psychological Capital.