Refers to a set of positive psychological resources that help individuals, especially in the workplace, pursue goals, respond to challenges, adapt to change, and perform effectively. Psychological capital is commonly associated with four capacities: hope, efficacy, resilience, and optimism, sometimes described by the acronym HERO: 

• Hope: The motivation to pursue goals and the ability to identify different ways to reach them when obstacles arise.
• Efficacy: Confidence in one's ability to take on challenging tasks and put forth the effort needed to succeed. It is also commonly referred to as self-efficacy.
• Resilience: The ability to recover, adapt, and continue moving forward following setbacks, difficulties, or change.
• Optimism: A generally positive but realistic expectation about present and future outcomes and one's ability to influence them.

Psychological capital emerged from research in positive psychology and positive organizational behavior. Unlike approaches that focus primarily on stress, illness, or problems in the workplace, psychological capital focuses on psychological resources that can help people function effectively and grow.

An important feature of psychological capital is that it is considered developable rather than fixed. Research suggests that hope, efficacy, resilience, and optimism can be strengthened through learning, experience, coaching, leadership practices, and other forms of development. Studies have linked higher psychological capital with outcomes such as job performance, job satisfaction, organizational commitment, employee well-being, and adaptability. Research has also examined psychological capital among students and in other settings beyond the workplace.

Psychological capital can also have an organizational dimension. Leaders, managers, teams, and workplace environments can influence whether these psychological resources are encouraged and strengthened. Research, for example, has found relationships between leaders' psychological capital and that of their team members. This makes psychological capital relevant not only to individual development but also to leadership development, organizational culture, talent development, and workforce resilience.

Psychological capital should not be confused with mental health or employee well-being. Rather, it describes psychological resources that may help individuals and organizations navigate challenges, pursue goals, learn, adapt, and perform effectively.