PSYCHOLOGICAL CAPITAL: CONCEPT, DEFINITION AND EFFECTS
Abstract
Post-pandemic organisations are facing lot of challenges which are difficult to handle. Organisations today require new capabilities in their employees to cope with an array of challenges, from coping with narrowing profitability gaps to enabling continual innovation; increasing stakeholders responsiveness to meeting regulatory requirements; and uncertainty to managing increasingly complex new services and value chains. These challenges can be managed only if human resource is managed effectively. People are intellectual/creative Capital for an organization and they constitute important source of dynamic input in any organization. Performance of an employee significantly influences Organisational performance. There have been several studies to indicate that there is a significant correlation between people and the profits they bring to the organization. As per Luthans (2002a), the study of psychological capital can be used in Organizational HRM (Human Resource Management). This paper is an attempt to understand the concept of psychological capital and its impact on various aspects of Individual/ Organsiational outcomes. Psychological Capital is a positive cognitive resource comprising four dimensions (hope, self-efficacy, Resiliency & optimism) which influences not only employees’ efficiency at work but also increases organisational effectiveness. Objective of this paper is to explore all concepts of psychological Capital and its significance by reviewing literature and theory on the subject.
Keyword : Psychological Capital, Psychological skills, Positive psychology
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