The influence of organizational atmosphere and psychological capital on work performance: The moderating role of psychological contract

This study explores the interconnected roles of organizational atmosphere, psychological capital, work engagement, and psychological contract on the work performance. Structural equation modeling and moderated mediation analyses were conducted to test the hypothesized relationships. Methodologically, the study employed a stratified random sampling of 369 faculty members across various disciplines. Key findings reveal that both organizational atmosphere and psychological capital have a significant positive impact on work engagement, which in turn, enhances work performance. Work engagement acted as a mediator in these relationships. Moreover, the psychological contract was found to moderate the relationship between work engagement and work performance, indicating that the engagement-performance link is stronger when employees perceive their psychological contract has been fulfilled. The implications of this research are multifaceted. Theoretically, it contributes to organizational behavior literature by integrating psychological contracts into the engagement-performance narrative. Practically, it provides actionable insights for university administrators, suggesting that investments in a supportive organizational atmosphere and the development of faculty psychological capital are likely to yield improvements in engagement and performance. The study also underscores the importance of effectively managing psychological contracts to maximize employee output.