Why is hospitality employees’ psychological capital important? The effects of psychological capital on work engagement and employee morale

This study examines work engagement as a partial mediator of the effect of psychological capital (PsyCap) on employee morale in a sample of hotel employees. A survey was carried out with 312 front-line staff from 15 five-star hotels in Seoul, Korea. A one-month time-lag design (Time 1: PsyCap and work engagement; Time 2: employee morale) was used to reduce potential common method bias. The hypothesized relationships in the model were tested using structural equation modeling. The results suggest that work engagement partially mediates the effect of PsyCap on job satisfaction and affective organizational commitment. Specifically, front-line employees with high PsyCap are more engaged with their work and more likely to display job satisfaction and affective organizational commitment. The study concludes with a discussion of its empirical findings, strengths, theoretical contributions, and practical implications. Limitations and their implications for future studies are also reviewed.