2. Executive Summary Researchers at the Gallup Leadership Institute study the role that positive psychological capacities play in authentic leadership and human resource development/performance. Researchers at the Gallup Leadership Institute study the role that positive psychological capacities play in authentic leadership and human resource development/performance. We call these positive capacities “Psychological Capital” or simply PsyCap because they represent individual (and team) resources that can be invested in and developed for increased performance. We call these positive capacities “Psychological Capital” or simply PsyCap because they represent individual (and team) resources that can be invested in and developed for increased performance.

3. Two main studies indicated that PsyCap: Two main studies indicated that PsyCap: Can be reliably and validly measured Can be reliably and validly measured Developed using relatively short two-hour micro-interventions Developed using relatively short two-hour micro-interventions Have a positive impact on performance and satisfaction Have a positive impact on performance and satisfaction Utility analysis of these results indicated: Utility analysis of these results indicated: Substantial return on development (ROD) Substantial return on development (ROD) Gained from the investment in and development of PsyCap Gained from the investment in and development of PsyCap

4. Sample Items from the PsyCap Questionnaire (PCQ)-24 Below are statements about you with which you may agree or disagree. Using the following scales, indicate your level of agreement or disagreement at the present time. Below are statements about you with which you may agree or disagree. Using the following scales, indicate your level of agreement or disagreement at the present time. (1 = Strongly disagree, 2 = disagree, 3 = somewhat disagree, 4 = somewhat agree, 5 = agree, 6 = strongly agree) (1 = Strongly disagree, 2 = disagree, 3 = somewhat disagree, 4 = somewhat agree, 5 = agree, 6 = strongly agree)

5. 1. I feel confident helping to set targets/goals in my work area. 2. I feel confident presenting information to a group of colleagues. 3. There are lots of ways around any problem. 4. I can think of many ways to reach my current work goals. 5. When I have a setback at work, I have trouble recovering from it and moving on. 6. I usually take stressful things at work in stride. 7. When things are uncertain for me at work I usually expect the best. 8. I’m optimistic about what will happen to me in the future as it pertains to work.

13. Key Initial Research Findings on PsyCap Psychological Capital (PsyCap) measurement was found to be reliable and valid. Psychological Capital (PsyCap) measurement was found to be reliable and valid. PsyCap seems to have a significant positive relationship with performance and satisfaction. PsyCap seems to have a significant positive relationship with performance and satisfaction. PsyCap seems to be a core capacity that is greater than the sum of its parts (hope, optimism, efficacy, and resiliency), i.e., PsyCap appears to be synergistic. PsyCap seems to be a core capacity that is greater than the sum of its parts (hope, optimism, efficacy, and resiliency), i.e., PsyCap appears to be synergistic.

14. It was found that PsyCap can be developed through a short, highly focused training session. It was found that PsyCap can be developed through a short, highly focused training session. Increases in training participants’ PsyCap leads to increases in their performance. Increases in training participants’ PsyCap leads to increases in their performance. Both the development and performance of those with relatively low levels of initial PsyCap are more greatly affected by the PsyCap training intervention. Both the development and performance of those with relatively low levels of initial PsyCap are more greatly affected by the PsyCap training intervention. Investment in the development of PsyCap can lead to a very high return. Investment in the development of PsyCap can lead to a very high return.

15. Implications for Practical Application of PsyCap PsyCap can be developed in human resources through a short training intervention. PsyCap can be developed in human resources through a short training intervention. Enhancing the levels of human resources’ PsyCap leads to increased performance. Enhancing the levels of human resources’ PsyCap leads to increased performance. Investing in and developing PsyCap can result in very high returns. Investing in and developing PsyCap can result in very high returns.

16. PsyCap of groups/teams may determine how agile and adaptable groups/teams are in challenging contexts. PsyCap of groups/teams may determine how agile and adaptable groups/teams are in challenging contexts. PsyCap and other human capital dimensions in combination can help account for the human “intangibles” in organizations that contribute to sustainable, veritable performance. PsyCap and other human capital dimensions in combination can help account for the human “intangibles” in organizations that contribute to sustainable, veritable performance. PsyCap may be an important input and outcome of authentic leadership development (ALD). PsyCap may be an important input and outcome of authentic leadership development (ALD).

17. References Luthans, F., Avey, J.B. & Avolio, B.J. (2006). The development and performance impact of positive psychological capacities: A micro intervention study. Gallup Leadership Institute Working Paper Luthans, F., Avey, J.B. & Avolio, B.J. (2006). The development and performance impact of positive psychological capacities: A micro intervention study. Gallup Leadership Institute Working Paper Luthans, F., Avey, J.B., Avolio, B.J., Norman, S. & Combs, G. (2006). Psychological capital development: Toward a micro-intervention. Journal of Organizational Behavior, 27, 387-393. Luthans, F., Avey, J.B., Avolio, B.J., Norman, S. & Combs, G. (2006). Psychological capital development: Toward a micro-intervention. Journal of Organizational Behavior, 27, 387-393. Luthans, Youssef, & Avolio (2007). Psychological Capital: Developing the Human Capital Edge. Oxford, UK: Oxford University Press. Luthans, Youssef, & Avolio (2007). Psychological Capital: Developing the Human Capital Edge. Oxford, UK: Oxford University Press.

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