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  • Writer's pictureNell Puetter

PsyCap is Your Superhero Toolkit for More Performance Supercharged with Wellbeing

So, what exactly is PsyCap? The secret sauce for individuals and organisations, a hidden gem coined by the wise Professor Fred Luthans from the University of Nebraska-Lincoln. 

Luthans defines psychological capital (or PsyCap for short) as:

“Positive psychological state of development that 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 at challenging tasks, (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 (resilience) to attain success.”

And to make it easier to remember, Luthans gave us the HERO acronym: hope, efficacy, resilience, and optimism – the essential ingredients for building up our psychological capital. Like a good recipe, they work best when combined. 

According to Professor Fred Luthans focusing on Psychological Capital development can give organizations a competitive edge. He and his colleagues came up with the term "Psychological Capital," or PsyCap for short, and trust me, it's an investment worth considering.

Now, you might wonder, why bother with PsyCap? 

Short answer: it's totally worth it. Individuals and organizations with higher psychological capital see some impressive results. Better job performance, lower turnover rates, and positive attitudes like satisfaction and commitment are just the beginning. Positive vibes are contagious, and leveraging them boost business performance and profitability significantly.

According to the 2015 Gallup Strengths Meta-analysis Report, teams with a positive outlook experienced a 270% performance increase, a 15% spike in customer engagement, and a whopping 29% profit boost. The HERO traits play a big role here because they make individuals feel more equipped to handle challenges, bounce back after failure, and navigate adversity.

And it's not just about business – more psychological capital is linked to better health, lower cholesterol, and higher satisfaction in relationships. 

Trait vs. State:

Well, these four traits are flexible. Sure, some folks might naturally lean towards optimism, but the beauty is, you can train yourself to be more optimistic. Consider them less like fixed character traits and more like something you can cultivate!

  • Trait (e.g., Personality): Think of it like your superhero identity, kinda fixed and doesn't change much.

  • State (e.g., PsyCap): This is more like your superhero gadgets – changeable and influenced by training. It's like getting a power-up! 

PsyCap's Impact on Performance:

PsyCap is crucial for performance development and management. It focuses on elements often overlooked in building a strong performance culture. Instead of just setting goals and holding people accountable, PsyCap helps boost personal resources and guide employees to success.

Research Connections:

  • Hope and Optimism: Similar to Carol Dweck's "growth mindset," emphasizing the power of yet. It links to methodologies that enhance resilience.

  • Self-efficacy: Building confidence ties to psychologist Richard Boyatzis' work, showing positive brain responses when focusing on strengths rather than weaknesses. 

Building PsyCap Into Strategy:


Goal Setting: Let individuals set their own goals and recognize creative ways of achieving them.

Coaching: Help people overcome obstacles to maintain hope.


Mastery and Success: Celebrate small successes, recognize personal achievements, and align goals with strengths.

Vicarious Learning: Allow individuals to observe others overcoming barriers to foster self-confidence

Positive Feedback: Build confidence through social persuasion and positive feedback.

Psychological Stimulation: Leaders can help reframe thinking to enhance confidence.


Asset-focused Strategies: Enhance resources through training, peer learning, and coaching

Risk-focused Strategies: Help individuals interpret risks positively through continuous feedback and mentorship.


Realistic Expectations: Set achievable goals to empower individuals.

Identifying Strengths: Remind individuals of their strengths and past successes.

So, whether it's overcoming obstacles at work or in your personal life, building up your Psychological Capital seems like a holistic win-win-win!

Psychological Capital Deep Dive

Experience an in-depth exploration of the pillars of psychological capital—hope, efficacy, optimism, and resilience. Learn to cultivate these attributes within yourself and instill them throughout your team for unparalleled success.


  • Increase individual and collective Performance, Productivity and Profitability

  • Improve team morale and overall wellbeing

  • Enhance individual and collective resilience

  • Develop leaders who inspire and motivate

  • Foster a positive work environment for increased Productivity.

  • Equip teams to navigate challenges with a Positive Mindset.

Are you ready to revolutionize your approach to leadership, fortify your team's psychological capital, and witness the transformation of your workplace into a beacon of collaboration, innovation, and unparalleled success?

Then discover extraordinary power of positivity and resilience – the catalysts for a thriving, unstoppable team. Unlock the full potential of your team by fostering a positive work culture through our comprehensive training program on Positive Leadership and Psychological Capital. 

Improving performance starts with PsyCap. By integrating the HERO framework into management, leaders inspire teams to make meaningful contributions. With the right emotional and intellectual tools, individuals can embrace challenges without fearing failure.

Looking to increase employee performance? It all starts with the manager. 🚀✨

More Info >>>

As organizations increasingly recognize the importance of psychological well-being in achieving business success, PROHSPER stands out as a valuable tool for optimizing sales team performance and driving sustainable results.

Consider this for a moment: the emotional well-being of you and your team is not just a consequence of success but a catalyst for it. It's not the promotion or the deal that brings happiness; it's happiness that propels us toward success. Investing in the psychological capital of yourself and your employees transforms the workplace into a positive haven, filled with individuals who find joy in their journey.

Creating this uplifting atmosphere isn't just a feel-good initiative – it's a strategic move that benefits your bottom line. Achor's wisdom holds true: happiness fuels success. Imagine a workplace where each accomplishment is not just a step toward a goal but a celebration of shared joy.

As you reflect on the potential within your team and organization, we invite you to consider the transformative power of PROHSPER model training. By embracing and enhancing the psychological well-being of your team, you're not just fostering success; you're creating a culture where everyone thrives.


Ready to embark on the path of enhanced performance and prosperity by mastering self-leadership?

Any journey starts with looking at the road map, where you are now and where you want to go!

To help you know where you stand in terms of your own self-leadership start FREE PROHSPER ASSESSMENT >>> HERE >>>

Discover (in 3 minuets) how much inner power (Psychological Capital) you have to slice through the ups and downs in the ocean of life.


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