Volume 12, Issue II, March 2023, ISSN: 2277-1255

BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH

A quarterly peer reviewed International Journal of Research & Education

Psychological Capital: Definition, Components and Effects

*Dr. Menka Choudhary & **Dr. Geeta Parbha

*Abstract
Positive psychological capital (PsyCap) is a crucial concept that refers to a
person’s positive psychological world, including hope, self-efficacy, optimism,
and resilience (Luthans & Youssef, 2004). These resources are related to
various positive results, like job satisfaction and performance, as well as stress
reduction and well-being (Luthans & Youssef, 2004). Positive psychological
capital management (PsyCapM) has been shown to enhance creativity and
innovation, as well as reduce turnover and absenteeism (Luthans et al., 2007).
In the context of school students, concepts related to positive psychological
capital include growth mindset, positive identity, emotional regulation, and
purpose in life (Dickson & Anderson, 2012; Eccles &Roeser, 2011; Gross,
2002). These concepts are important for promoting academic motivation,
engagement, and well-being in students (Dickson & Anderson, 2012; Eccles
&Roeser, 2011). Therefore, incorporating positive psychological capital
management strategies in schools and classrooms can have positive impacts on
school students' success and well-being (Dickson & Anderson, 2012). Overall,
the concept of positive psychological capital and related concepts play a crucial
role in promoting success and well-being in individuals and should be
prioritized in various settings, including schools.
*Keywords: Psychological Capital. School Student, Component of
Psychological Capital

*Assistant Professor, Ganga Institute of Education, Kablana Page 16

**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

Introduction:
Psychological capital, also known as psycap, is a concept that refers to the positive
psychological resources or strengths that individuals possess within themselves (Luthans,
Avolio, Avey, & Norman, 2007). Psychological capital includes four dimensions: self-
efficacy, optimism, hope, and resilience (Avey, Luthans, & Youssef, 2011). Self-efficacy
refers to the belief in one's abilities to produce desired results, optimism is the positive
outlook on the future, hope is the belief that desired outcomes can be achieved through effort
and determination, and resilience is the ability to recover from adverse events (Luthans et
al., 2007). Research has revealed that psychological capital has a positive effect on various
aspects such as job satisfaction, job performance, and well-being (Avey et al., 2011). The
positive development and enrichment of psychological capital can lead to improved
employee engagement, creativity, and overall success in the workplace (Luthans, Youssef,
& Avolio, 2015).

Definition:
Psychological capital (PsyCap) defines as an individual's positive psychological resources or
traits which can be developed and sustained to boost well-being and performance (Luthans
& Youssef, 2004). These resources include hope, self-efficacy, optimism, and resilience
(Luthans & Youssef, 2004). PsyCap is seen as a way of investing in people to achieve
competitive advantage (Luthans & Youssef, 2004).Self-efficacy belongs to the belief in
one's own abilities to produce desired results and overcome obstacles (Bandura,
1977).Optimism means the positive outlook on the future, characterized by the belief that
good things will happen and that negative events are temporary and isolated (Scheier&
Carver, 1985).Hopere presents belief that desired outcomes can be achieved through effort
and determination, and that obstacles can be overcome (Snyder, Irving, & Anderson,
1991).Resilienceis the factor to recover from adverse events, bounce back from challenges
and difficulties, and persist in the face of adversity (Luthans & Jensen, 2002)

Psychological capital Vs Positive Psychological Capital:

*Assistant Professor, Ganga Institute of Education, Kablana Page 17

**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

Psychological capital refers to the positive psychological resources or strengths that

individuals possess within themselves (Luthans, Avolio, Avey, & Norman, 2007)which
includes the four dimensions of self-efficacy, optimism, hope, and resilience (Avey,
Luthans, & Youssef, 2011). Positive psychological capital, on the other hand, refers to the
development and enhancement of psychological capital through the cultivation and
promotion of positive psychological traits and capacities (Luthans, Youssef, & Avolio,
2015). This approach focuses on increasing positive psychological resources and promoting
well-being, rather than merely addressing mental health problems (Luthans et al., 2007).

Some component related Psychological capital:

The basic components of psychological capital are self-efficacy, optimism, hope, and
resilience (Luthans, Avolio, Avey, & Norman, 2007).Self-efficacy belongs to the belief in
one's own abilities to produce desired results and overcome obstacles (Bandura,
1977).Optimism is the positive outlook on the future, characterized by the belief that good
things will happen and that negative events are temporary and isolated (Scheier& Carver,
1985).Hope is the belief that desired outcomes can be achieved through effort and
determination, and that obstacles can be overcome (Snyder, Irving, & Anderson,
1991).Resilience is the inner power which helps to recover from adverse events, bounce back
from challenges and difficulties, and persist in the face of adversity (Luthans & Jensen,
2002). Let’s talk about various variables which related or affected by components of Positive
Psychological Capital.
Self-efficacy:
Self-efficacy reflects to an individual's belief in their own capabilities to produce desired
results and overcome obstacles (Bandura, 1977). It is a person's confidence in their capacity
to perform specific tasks and achieve goals (Luthans, Avolio, Avey, & Norman, 2007).Self-
efficacy is formed through four main sources of information: mastery experiences, social
persuasion, emotional and physiological arousal, and symbolic modeling (Bandura, 1977).
Mastery experiences refer to successful experiences in performing a task, social persuasion
involves others telling the individual that they are capable, emotional and physiological
arousal involves experiencing positive emotions and feeling energized, and symbolic

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**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

modeling refers to observing others who are successful and similar to oneself.Self-efficacy
beliefs can play a significant role in shaping an individual's thoughts, feelings, and behaviors,
influencing their persistence in the face of challenges and their likelihood of success
(Luthans et al., 2007).Some research depicts that higher levels of self-efficacy are related
with better job performance, satisfaction, and well-being (Avey, Luthans, & Youssef, 2011).
Optimism:
Optimism is the positive outlook on the future, characterized by the belief that good things
will happen and that negative events are temporary and isolated (Scheier& Carver, 1985). It
is the perspective of looking at the world in a positive light and having faith that things will
work out for the best (Luthans, Avolio, Avey, & Norman, 2007).Optimism also works as
protective factor against stress and work as for predictingof well-being, as well as positive
outcomes in various domains including health, academic performance, and job satisfaction
(Luthans et al., 2007). Research has also depicted that optimistic individuals are more
resilient and better able to cope with adverse events (Scheier& Carver, 1992).However, it is
important to note that optimism should not be confused with unrealistic positivity, as having
a balanced and realistic perspective is also important for well-being (Seligman, 1990).
Hope:
Hope is a positive emotion that involves a belief in oneself and the expectation that the future
will bring good outcomes (Snyder, 1991). It is a combination of agency (i.e. the belief in
one's capability to take action) and paths (i.e. the belief that there are ways to reach desired
goals) (Snyder, 2002).Hope has been shown to be a factorwhich show protection against
stress and predict the positive outcomes in various domains, like academic performance, job
satisfaction, and mental and physical health (Luthans, Avolio, Avey, & Norman, 2007).
Research has also shown that hope is positively related to resilience and adaptive coping
(Snyder, Michael, &Cheavens, 2000).Additionally, hope has been found to be positively
related to creativity, innovation, and problem-solving abilities (Luthans, Youssef, & Avolio,
2007).
Resilience:
Resilience is the ability to bounce back and cope effectively with adversity, stress, or change
(Luthans & Youssef, 2004). It is a dynamic and adaptable quality that enables individuals to

*Assistant Professor, Ganga Institute of Education, Kablana Page 19

**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

maintain positive outcomes despite the presence of challenges (Rutter, 1987).Resilience has
been shown to be positively related to various outcomes, including academic performance,
job satisfaction, and mental and physical health (Luthans & Youssef, 2004). Research has
also shown that resilient individuals are more likely to be optimistic and have a greater sense
of control over their lives (Luthans, Avolio, Avey, & Norman, 2007).Additionally,
resilience is a factor which also positively related to other psychological capital factors, such
as hope and self-efficacy (Luthans, Avolio, Avey, & Norman, 2007).
Positive psychological capital management:
Positive psychological capital management is the process of promoting and utilizing the
positive psychological resources of employees to enhance performance, satisfaction, and
well-being (Luthans & Youssef, 2004). This involves identifying and developing the
positive psychological capital factors of hope, resilience, self-efficacy, and optimism, and
using them as a competitive advantage in the workplace (Luthans, Avolio, Avey, &
Norman, 2007).
Research also revealed that positive psychological capital management is positively related to
various outcomes, including increased job satisfaction, improved performance, reduced
stress, and increased well-being (Luthans, Avolio, Avey, & Norman, 2007). It has also been
shown to enhance innovation and creativity, as well as reduce turnover and absenteeism
(Luthans, Youssef, & Avolio, 2007).Positive psychological capital management can be
understandthrough individual and organizational interventions, such as training, coaching,
mentoring, and creating a positive work environment (Luthans, Youssef, & Avolio, 2007).

Other concepts which related to Positive psychological capital:

There are several concepts that are related to positive psychological capital of school
students, including:

Growth Mindset is related to positive psychological capital. This refers to the belief that
intelligence and abilities can be developed through effort and practice (Dweck, 2006).It also
positively related to academic performance and is considered a key aspect of positive
psychological capital (Luthans, Avolio, Avey, & Norman, 2007).Next one isPositive

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**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

Identity which related to Positive PsyCap. This refers to a positive self-concept and a sense of
belonging in a school setting (Eccles &Roeser, 2011). Positive identity also positively
related to academic motivation, engagement, and well-being (Eccles &Roeser,
2011).Emotional Regulation also related with positive Psycap. This refers to the ability to
manage and control one's emotions in response to stress or challenges (Gross, 2002).
Emotional regulation alsorevealed to be positively related to academic performance and well-
being in school students (Gross, 2002).Furthermore, Purpose in Life also affect positive
Psycap of a person. This refers to having a clear sense of direction and meaning in one's life
(Dickson, & Anderson, 2012). Purpose in life has been shown to be positively related to
academic motivation, engagement, and well-being in school students (Dickson, & Anderson,
2012).Positive psychological capital is also positive related with Life Skills as depicted by a
research showed Life Skills Intervention Program positively significantly affect the
Psychological Capital of students(Choudhary, & Rani, 2020).

Discussion and conclusion:

In conclusion, PsyCap is a crucial notion in the field of psychology, as it refers to the positive
psychological resources that individuals possess, like hope, resilience, self-efficacy, and
optimism. These resources have been shown to be positively related to various outcomes,
including job satisfaction, performance, stress reduction, and well-being (Luthans &
Youssef, 2004). Additionally, positive psychological capital management has been shown to
enhance innovation, creativity, and reduce turnover and absenteeism (Luthans, Avolio,
Avey, & Norman, 2007).When it comes to school students, several concepts are related to
positive psychological capital, including growth mindset, positive identity, emotional
regulation, and purpose in life (Dickson & Anderson, 2012; Eccles &Roeser, 2011; Gross,
2002). These concepts are crucial for promoting academic motivation, engagement, and well-
being in school students (Dickson & Anderson, 2012; Eccles &Roeser, 2011).In light of
this, it is important for schools and teachers to incorporate positive psychological capital
management strategies, such as promoting growth mindset, creating a positive school
environment, and helping students find purpose in life, in order to promote academic success
and well-being in school students (Dickson & Anderson, 2012).Overall, the concept of

*Assistant Professor, Ganga Institute of Education, Kablana Page 21

**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

positive psychological capital and its related concepts are crucial for promoting success and
well-being in individuals and should be incorporated into various settings, including schools.

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*Assistant Professor, Ganga Institute of Education, Kablana Page 22

**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com
 Volume 12, Issue II, March 2023, ISSN: 2277-1255
BHARTIYAM INTERNATIONAL JOURNAL OF EDUCATION & RESEARCH
A quarterly peer reviewed International Journal of Research & Education

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**Principal, Ganga Institute of Education, Kablana, geetaaoffice @gmail,com