Psychological capital accumulation and depletion during organisational change: consequences for employee well-being

Purpose Few studies have considered how psychological capital accumulates or is depleted during organisational change. We consider the antecedents and outcomes of employee psychological capital during organisational change. We identify transformational leadership and employees’ organisational change history as key antecedents of employee psychological capital. Our model links psychological capital with employee psychological uncertainty about change, which, in turn, predicts employee well-being. Design/methodology/approach This study comprised 206 employees from a wide range of industries within Australia who completed two surveys administered three months apart. Findings Results indicated that the indirect negative relationships between change history, transformational leadership and employee well-being via psychological capital and psychological uncertainty were significant. We conclude that psychological capital is a valuable resource for coping with uncertainty due to organisational change. Originality/value We provide evidence on the influence of one aspect of the internal change context (e.g. change history) and one aspect of the change process (e.g. transformational leadership) on the accumulation and depletion of psychological capital during organisational change. Additionally, we examine employee well-being outcomes and identify the complex mechanisms that shape well-being in changing workplace environments.