Role of Self-efficacy, Optimism and Job Engagement in Positive Change: Evidence from the Middle East

Abstract

Executive Summary Positive change comprises an examination of the factors that influence the adaptation of a positive lens, positively deviant performance, the effects of an affirmative bias, and the impact of pursuing the best of human conditions in an organization. To generate positive change, a Middle Eastern financial services firm designed and implemented a positive business initiative ‘RACE’, which involved various sports, arts, cultural, and everyday business activities, intended to engage employees and build their psychological strengths. In the context of RACE initiative, this study examines the role of self-efficacy, optimism, and job engagement in positive change. Self-efficacy is a specific, positive expectation of success based on belief in one’s individual abilities. Employees’ with higher levels of optimism tend to maintain positive expectation about what will happen to them in the process of change. Employees who are engaged in the jobs bring in their complete selves by investing physical, emotional, and cognitive energies. This study explores the relationship of self-efficacy and optimism with performance outcome. It further provides an explanation of this relationship through the mediating role of three dimensions of job engagement, that is, cognitive, emotional, and physical. Responses were collected from 406 employees who participated in the RACE initiative. While all of the respondents are based in the UAE, the sample is international in nature, encompassing 15 countries. These respondents were asked to assess their own self-efficacy, optimism, and job engagement, along with their perception of the team-level performance of the branch office in which they work. The hypothesized relationships were tested in AMOS 20 using structural equation modeling. The results indicate that higher levels of self-efficacy and optimism significantly predict higher levels of cognitive, emotional, and physical engagement. Also, the higher levels of cognitive, emotional, and physical engagement significantly predict performance. Further, significant indirect effects support the mediating role of job engagement in relationship between these psychological strengths and performance outcome. Thus, employees’ level of self-efficacy, optimism, and job engagement can be enhanced by designing and implementing business initiatives that are relevant to positive change.