Business Administration Proposal



Business Administration Proposal

Abstract

The purpose of the paper will be to test the measurement properties of the psychological capital based on a questionnaire (PCQ) and the authentic leadership questionnaire (ALQ). Both scales' properties will be tested in a diverse sample of working adults, compared across genders, and assessed for their performance in a new national culture. Design/methodology/approach

This paper will use survey data from a random, nationally representative sample of working adults. Structural equation modeling will be used to conduct confirmatory factor analysis and to test for measurement invariance in both scales. Chapter 1 Introduction

The paper will examine the measurement properties of scales for two recently developed constructs: psychological capital and authentic leadership. Both constructs are associated with “positive organizational behavior (POB),” which is a research program focused on performance-related human resources that are amenable to scientific measurement and to management intervention. POB is part of a more general emphasis on studying “positive” phenomena in organizations. This analysis will provide confirmatory tests of both scales' factor structures in a representative sample of working adults. It will also provide evidence of measurement invariance across gender for both scales, suggesting that they are equally valid for men and women. (Battaiola, A.L. et al. 2007 Pp. 67)

Chapter 2 Literature Review

The construct of psychological capital is a recent extension of the economic notion of capital. In classical economics, capital refers to durable goods that serve as factors of production (e.g. land, labor, and equipment). In some formulations, these goods are presumed to also include non-tangible factors such as management and organization. The idea of non-tangible capital led to familiar variations including human capital and social capital. Psychological capital is similar to these, being a non-tangible factor that can provide competitive advantage to an organization. In the same way that natural resources, cash, and machinery can benefit organizational performance, employees' psychological states represent a potential resource that can contribute to performance. The internal factors faced by any company in a time of any change are directly related to its internal resources. These internal resources include human capital as well as financial capital. Since human capital drives the financial capital, the largest amount of focus and effort should be on the internal employees.

The biggest internal challenge is in regard to the human capital and the human resource function. Internal resources must be identified; external consultants or experts on the consumer side must be hired. The shift must start with a strong goal and plan that is provided by the leader, along with a shift in expectations that permeates through all parts of the business. The business must be protected during a cultural shift, and management needs to be prepared for this commitment. The quality of the final product and processes regarding manufacturing and delivering the product will be impacted by this shift. The turn and drop in morale caused from the culture shift will impact benchmarked strength in the organization. Additional costs associated with support functions include an increase in the staff of the ...