Unveiling the Potential: Psychological Capital's Impact on Organisational Performance

Abstract

The present research centres around the significance of psychological capital, also known as PsyCap. This includes hope, efficacy, resilience, and optimism, all of which play a crucial role in enhancing performance at both the individual and organisational levels. Based on current research and our own study, we highlight the importance of individual and team PsyCap in driving exceptional job performance and employee engagement, ultimately contributing to the success of the organisation. Our research suggests that the presence of team PsyCap has a notable impact on how the enhanced benefits of individual PsyCap contribute to overall organisational outcomes. In addition, the research highlights the importance of transformational leadership in promoting PsyCap. This leadership style brings out the potential in individuals and supports their psychological growth, benefiting the entire team. However, it is important to note that this study has certain limitations, such as its cross-sectional design and reliance on self-report measures; In order to gain a deeper understanding of the proposed relationships, it would be beneficial for future research to include longitudinal designs and utilise multiple methods. Therefore, it is important to thoroughly examine the industry-level impacts of PsyCap and the cultural contingency model. This paper not only emphasises the importance of PsyCap for organisational improvement but also provides guidance for leaders looking to cultivate these valuable psychological assets.