Abstract:
In the twenty-first-century business. organizations are operating in a very competitive
environment and business practitioners have identified the need for having a sustainable
competitive advantage. Therefbre, Human resources have become a sustainable
competitive advantage and employee performance is the key to increasing
organizational performance with the ultimate purpose of achieving its goals and
objectives. Consequently, the objective of the current study is to identify the extent to
which psychological capital impacts on employee performance of selected private
sector banks in the Anuradhapura and Thambuththegama Areas. The current study
hypothesized that there is a positive impact of psychological capital; its dimensions
(Self Efficacy, F{ope, Resiiience, and Optimism) on employee performance. A
quantitative. deductive approach with a positive paradigm using a cross-sectional
survey strategy was used in the study. Standard 24 item psychological capital
questionnaire (PCQ) and Individual work performance questionnaire were used as the
research instrument. 207 employees were selected using the simple random sampling
method as the sample (N:207) among the population of 273 Bank employees. Tiie
data were analyzed using correlation and regression analyses. Four dimensions of
psychological capital and psychological capital as a core construct had a significant
positive relationship with employee performance. In summary, the current study
concludes that psychological capital impacts on employee performance of selected
private sector banks in the Anuradhapura and Thambuththegama Areas
