Impact of COVID-19 stress on employee performance and well-being: role of trust in management and psychological capital

Purpose The COVID-19 pandemic presents an unprecedented case of organisation–environment interaction in the occupational settings. Using Palmer and colleagues (2003) model of work stress, this study aims to examine the influence of COVID-19 stress on employee performance and psychological well-being. Furthermore, drawing on conservation of resources theory (Hobfoll, 1989), the role of trust in management and psychological capital as moderators has also been explored. Design/methodology/approach Data were collected from the service sector employees (N = 507) using purposive sampling technique. Findings Structural equation modelling analysis revealed the negative impact of COVID-19 stress on employee performance and psychological well-being; moderated by trust in management and psychological capital, respectively. Research limitations/implications The proposed conceptual model contributes to the stress management literature by providing an understanding of how COVID-19-related stress impacts employee behaviour in organisational context. The present study considers the COVID-19 stress as bio-psycho-socioeconomic challenge that impacts and determines nearly all the activities of the individuals, groups and organisations at a global scale. Practical implications The findings of the studies offer several managerial implications pertaining to performance and well-being at workplace especially during such crisis characterised by the elements of uncertainty and ambiguity. Identification of the personal resources would prove beneficial for the management in devising and implementing customised interventions for employees and the organisation. Since the pandemic has impacted each individual differently, human resource managers should remind their employees to be vigilant about self-care and take advantage of their health care benefits, particularly with regards to mental health. Originality/value The proposed conceptual model contributes to the workplace stress management literature by providing an understanding of how COVID-19-related stress impacts employee outcomes in the organisational context. Furthermore, identifying personal resources would prove beneficial for the management in devising and implementing customised interventions at the workplace.