THE EFFECTS OF DISRUPTION ON MANAGER-LEADER PSYCHOLOGICAL CAPITAL DURING THE COVID-19 PANDEMIC

Abstract

The world is volatile, uncertain, complex, and ambiguous, increasing by the week. On top of this, extraordinarily disruptive events capable of altering humanity’s status quo are occurring with increasing frequency. The recent COVID-19 pandemic is one such event, and its disruptive effects on the psychological capital of manager-leaders and their followers in organizational settings during the first 18 months of the pandemic is the focus of this research. Psychological capital comprises four first-order constructs: hope, self-efficacy, resilience, and optimism. A pragmatic mixed-methods study of phenomenological interviews of 21 participants, from frontline support staff to Chief Executive Officers of various organizations, was conducted between May and October 2021. Two quantitative assessments supported these qualitative interviews. Several important findings regarding the effects of disruption on the psychological capital of the workers emerged from the data: 1) The disruptive effects of the COVID-19 pandemic affected all 21 interviewees, but the effects varied widely in meaningful ways. 2) All interviewees reported experiencing multiple significant adverse effects attributed to the pandemic, but almost all could relate at least one substantial positive outcome they ascribed to the pandemic. 3) Individuals in the study who exhibited the highest levels of psychological capital not only described experiencing significantly less negative stress than individuals with the lowest levels of psychological capital, they also tended to view the pandemic disruption as a rare opportunity for individual growth and advancement, as well as a strategic opportunity for their organizations. 4) The specific circumstances and context of each individual significantly affected their level of psychological capital while their psychological capital was simultaneously affecting their circumstances and context in a bi-directional and mutually influential dynamic. Finally, this study contributes to psychological capital theory’s body of knowledge by providing an in-depth qualitative examination of the construct. Drawing on the actual lived experience of workers during a complex and demanding event and presenting practical evidence of the disruptive effect on their psychological capital provides a new perspective for the construct while offering pragmatic recommendations for building individual and organizational psychological capital.