Saturday, February 6, 2010

The importance of Psychological Capital

Although education and training can determine an employee’s business success, their psychological capital is worth more than anything. Psychological capital consists of a positive attitude and belief in their abilities. Such attributes in employees are attractive to companies because it is these employees that will better their work atmosphere and introduce innovative ideas. Attitudes are contagious. If one co-worker is stressed and in a bad mood, that feeling carries over to other employees. In contrast, optimism and a good sense of self in employees fuel a positive work environment because employees are motivated to improve their efforts and with a more self-reliant/self-motivating team, projects are accomplished faster and more efficiently.
According to Ramón Valle Cabrera, Pablo de Olavide University in Spain, Physiological is often overlooked during poor economic times. Companies often simply down-size, reducing quantity and overlooking quality. Firing personnel has long-term effects upon a firm, such as reduced company loyalty, negativism towards the future and disconnectedness within the company. It is more beneficial for a firm to expand their stock or find a creative way to boost revenue so that down-sizing is not needed. However, if this is impossible, managers need to take into account what personal attributes each employee gives to their company. Mr. Cabrera believes that such attributes are worth more than an employee’s talent
Universia-Knowledge@Wharton. "Managing Talent During a Period of Crisis." (2008): n. pag. Web. 6 Feb 2010. sh>.


  1. good topic choice. it's true that layoffs can affect the morale of the remaining employees. apart from seeing friends and colleagues being forced to leave a company, those left with jobs can often be stressed, thinking that they may be next. emotion in the workplace is a well-researched topic, and it's good that you decided to focus on these aspects of personality. cool topic.

  2. I think that a lot, if not all, of these emotions tie in with self esteem too. In an example from the book, a man who was laid off after over 50 years of work said: I had never felt so lonely and helpless ... A job isn't just about working. A job helps define who we are" ( Kreitner 131). To some, a job isn't a way to simply make money, it's a way to express ourselves another part of ourselves and an array of emotions that we wouldn't necessarily have the opportunity to in "daily life."