There is an intangible capital in every company from which we can start again in the post-pandemic workplace. Theorized for the first time by Fred Luthans, psychological capital is an excellent theoretical tool to cope with the stress of the current situation and bring wellbeing and happiness back to the centre of corporate policies. Penny Lloyd and Madoka Kumashiro, in the “Mind Space – Work & Wellbeing in Concert” webinar organized by Herman Miller and selected in the WOWbinar column, spoke about the PSYCAP 4 + 4, the dimensions most impacting on the company’s psychological capital: 4 personal qualities (confidence, optimism, resilience, energy) and 4 axes on which every organization can work (purpose, autonomy, recognition and relationality).

Starting from a universally recognized assumption – human resources represent a competitive advantage for organizations – in 2007 Fred Luthans theorized the psychological capital (PSYCAP) defining it as the positive psychological state of development of an individual.

A capital built over time, based on a latent knowledge gained through the experience of the individual and the group which, and unique, cumulative, interconnected and not transferable to competing companies: these qualities provide a great competitive advantage in nowadays economic system.

In a period in which the corona virus crisis has increased the perception of a stressful and rapidly changing reality, Penny Lloyd and Madoka Kumashiro have introduced a simple formula – PSYCAP 4 + 4 – to help bring wellbeing back to the center of corporate policies. We list them here, explaining them briefly.

4 Quality: self-confidence, optimism, resilience and energy.

• • Self-confidence. Self-confidence is a quality that takes time and experience to build. It is that same quality, as Kumashiro explained, we use when we learn to ride a bicycle and for the first time, we lift our feet or break away from the grasp of our parents. The more we feel confident about ourselves, the easier it is to face a new task or situation and take risks.
    

• • Optimism. Optimism is a rational and proactive quality: the ability to see reality for what it is, trusting the fact that our actions can lead to a better future situation. In short, it means recognizing the temporary nature of the problem and proactively acting to overcome it. 
  • Resilience. A step beyond optimism, resilience is the creative ability to adapt and live through challenges using one’s own resources, and to face moments of difficulty as an opportunity for personal growth and the development of new skills and abilities.

• • Energy. The ability to mobilize energy is a characteristic on the border between the individual and his environment. Indeed, energy can be contagious and depends on a dialogue between the internal quality of the individual and the atmosphere of the group. In this regard, the office, especially in an age of agile work, can be metaphorically conceived as a gas station, or a place capable of providing new energy, where you can recharge to get back on the road.

4 conditions for making psychological capital flourish: purpose, autonomy, recognition and relationship.

• • Purpose. Having a meaningful vision of our life, something to be committed to, is fundamental for every human being. Organizations, where there is a clarity of purpose and where employees are proud of working for them, are tendentially those where the level of wellbeing is greater.

• • Autonomy. Autonomy means feeling in control of your life. Research results on burnout syndrome and depression indicate the cause of loss of control and a sense of passivity in managing one’s life. A company policy based on real smart working policies, a good work-life balance and empowerment provide good foundations for the development of a healthy sense of autonomy.

• • Recognition. Simply feeling valued and understood for your own characteristics. An approach based on dialogue and enhancement of the strengths of each human resource is essential to make everyone feeling important and significant for the company.

• • Relationality. This ability to actively work to understand ourselves, others and the world is favoured by organizational policies that stimulate continuous formal and informal confrontation and meeting, as well as certain ways of working as goal-focused teams or interdisciplinary or intersectoral teams.

Text by Gabriele Masi.
Opening picture by Bambi Corro on Unsplash