Today’s best managers know that employees have psychological capital when they: 1) have confidence that they can succeed at challenging tasks, 2) are optimistic about being successful now and in the future, 3) work hard to reach goals, but change their goals if necessary, and 4) are resilient and can bounce back from adversity. Having psychological capital can lead to higher levels of performance, job satisfaction, and commitment, and lower levels of absenteeism for employees. Managers used to believe that people were just born with a certain level of psychological capital. However, today’s best managers know that employees can develop and improve their psychological capital.
Source: Luthans, F., Avey, J. B., & Patera, J. L. 2008. Experimental analysis of a web-based training intervention to develop positive psychological capital. Academy of Management Learning & Education, 7, 209-221.
