Munir Butt, Sumaira2016-03-292016-03-292015https://escholar.umt.edu.pk/handle/123456789/1634The objective of this study is to identify the relationship between challenge hindrance model of stress and employee engagement. This research study also aims at identifying the role of psychological capital in challenge hindrance and employee engagement relationship. Individuals from management positions from telecommunication sector participated in this study. Data was collected by using survey method. All the variables of interest score high on reliability tests. The outcome of the research showed the moderating role of psychological capital in the relationship between challenge-hindrance stress and employee engagement and in the light of the study findings it is suggested that, those employees who take challenge stressors as potential gains, they are hopeful, confident, consistent and optimist regarding the stressful event that they will come out of it with success and will achieve their goals. Following the same note they exert their maximum efforts with dedication and energy to achieve desired output. Hence it can be posited that psychological capital helps employees to accept challenge stressors potential gains and work with engagement. Although our research does not identify any new stress management practices per se, our research does illustrate the potential utility of diagnosing stressors as challenges or hindrances, and then applying well-known remedies selectively. On the one hand, managers could attempt to reduce or eliminate hindrances, because these types of demands do not seem to have any positive effects. We note that this idea stands in sharp contrast to implications of the inverted-U perspective, which suggests to managers that up to some point, all types of stressors at work are good. On the other hand, instead of reducing or eliminating challenge stressors (because of the positive associations with motivation and performance),5managers could actually increase levels of challenge stressors as long as they also used practices that reduced or buffered the associated strains.MS ThesisStressEmployee EngagementPsychological capitalThesis