Enhancing Economic Performance and Mental Well-being through Psychological Capital-Based Human Resource Management
Zhang Dong, Dengfeng Song, Lulu Deng, Lingli Zhong, Xinchen ShaAbstract
Objective
This study examines how psychological capital (PsyCap) influences the relationship between human resource management strategies and corporate economic performance, with particular focus on its impact on employees' mental health and psychological well-being. The research aims to develop an integrated framework that leverages psychological resources for achieving both organizational success and workforce mental health promotion.
Subjects and Methods
A comprehensive study was conducted with 218 enterprises and 5,240 employees across various industries. Data collection included the Psychological Capital Questionnaire (PCQ), mental health assessments using the WHO-5 Well-Being Index, HR practice surveys, and corporate performance reports. Structural equation modeling and path analysis examined the dual pathways through which PsyCap affects both economic outcomes and mental health indicators.
Results
Psychological capital demonstrated significant mediating effects between HR practices and economic performance (mediation effect = 0.38, p < 0.01), while also showing strong positive correlation with mental health outcomes (r = 0.67, p < 0.01). Organizations implementing PsyCap-oriented HR strategies achieved 26% higher employee engagement, 31% improved operational efficiency, and 35% reduction in work-related stress. Financial analysis revealed an 18.5% increase in return on assets among high-PsyCap organizations.
Conclusions
Psychological capital serves as a crucial mechanism enhancing both economic performance and employee mental health. Organizations should prioritize developing employees' psychological resources through targeted HR practices, creating sustainable pathways for organizational success and workforce psychological well-being.
Corresponding Author
Dengfeng Song, Jiangsu Lushan New Materials Co., Ltd., Changzhou, Jiangsu, 213200, China.