Psychological Capital
Most Important Investment for Your Wealth
Psychological capital (PsyCap) is a different form of capital than you may know so far. The concept of positive psychology aims to focus on the strengths and psychological meanings of individuals in order to improve them and measure their developmental processes, rather than focusing on their weaknesses (Luthans & Youssef, 2004). PsyCap is a concept developed by Luthans, Youssef, and Avolio (2007) to explain the fields of positive psychology and organizational behavioral psychology together with the concept of positive psychology. PsyCap defines as follows:
PsyCap is an individual’s positive psychological state of development and is characterized by (1) having confidence (self-efficacy) to take on and put in the necessary effort to succeed at challenging tasks; (2) making a positive attribution (optimism) about succeeding now and in the future; (3) persevering toward goals and, when necessary, redirecting paths to goals (hope) in order to succeed, and (4) when beset by problems and adversity, sustaining and bouncing back and even beyond (resiliency) to attain success
(Luthans et al., 2007, p. 3).
Therefore, PsyCap aims to demonstrate individuals’ capability of developing themselves and investing in themselves psychologically in a measurable way. PsyCap has four basic features; (1) self-efficacy, (2) optimism, (3) hope, and (4) resilience.
This concept is beyond the human capital (what you know) and the social capital (who you know) of a person because PsyCap pays attention to who you are and what you are becoming. Therefore, it has a development focus as well. PsyCap also includes who you are (your skills, attitudes, resources). However, by focusing on what you are becoming, it goes beyond who you are the focus. This approach is more optimistic and concern about what you can achieve in the future. Besides, PsyCap concentrates on the assets of a person.
Why this is important?
Research shows that companies focus on the employee’s self-efficacy, hope, optimism, and resilience, these employees’ performance is raising incredibly. This is an amazing feature that you can use with your children as well.
Once the person’s social network develops through friendship, cooperation with the community, new co-workers, or the children, this person started to develop optimism, hope, self-efficacy, and psychological resilience towards the difficult situations that he/she faces. PsyCap covers all these constructs and helps you to build, develop, and improve all these important aspects. It is greater than its parts! And encourage you to build new psychological capacities.
