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date: 22 April 2021

Abstract and Keywords

The conventional wisdom that “happy workers are productive workers” goes back to the beginning of the field of organizational behavior and human resource management. However, there has generally been a lack of rich theoretical development and supporting empirical research testing this hypothesis until the stimulation provided by the positive psychology movement. This chapter focuses on the emerging domain of positive organizational behavior and specifically the core construct of psychological capital (PsyCap) consisting of the positive psychological resources of hope, efficacy, resilience, and optimism. Four processes are presented through which PsyCap may contribute to employee happiness—cognitive, affective, conative, and social mechanisms. Psychological capital development and implications and future directions for its research and practice conclude the chapter.

Keywords: psychological capital, positive organizational behavior, cognitive mechanisms, affective mechanisms, conative mechanisms, social mechanisms

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