The companies investing in people's development and creating a conducive work environment to increase productivity. Harvard Employee Mental Health Letter highlights that employee mental health at the workplace impacts the employee as well as the productivity of the organization. However, due to the stigma attached, mental health issues are neither reported nor treated and reduce output. This study examines the influence of the psychological well-being of the employees on their task and contextual performance in the context of public and private sector organizations. The comparative analysis of public and private companies aims to investigate the employees' psychological well-being, corresponding institutional factors, and their impact on performance. The study findings support workplace realism that in the private sector organizations, jobs are highly demanding and stressful, which negatively impacts employee mental health; when the stress level crosses the threshold, the performance starts declining. However, in public sector organizations, the internal environment is relaxed and less stressful so the psychological well-being of the employees does not pose any threat to the employee as well as his performance. Thus performance of “happy†workers is superior to that of “less happy†ones. The adequate physical and mental health of human capital for retention & superior performance is important. The study results suggest regular interventions to assess the mental health issues of the employees and develop strategies creating a balance between high-performance expectations, stretched organizational goals, and other institutional stressors.
Volume 12 | 08-Special Issue
Pages: 708-719
DOI: 10.5373/JARDCS/V12SP8/20202573