Psychological Capital (PsyCap), also known as AQ (Adversity Quotient), is found to have a strong correlation with the capacity of an organisation to thrive in challenging times.

It measures the “toughness” of an organisation in navigating through challenging situations. Organisations with high PsyCap are able to find ways to outmanoeuvre their competitors, generate new pathways, build on the positives, and most importantly, unify the team to achieve shared goals.

The measures of PsyCap can be found in the acronym HERO – Hope, Efficacy, Resilience and Optimism.


Hope is about persevering towards goals and, when necessary, redirecting paths to goals in order to succeed.


Efficacy is about having the self-confidence to take on and put in the necessary effort to succeed in challenging tasks.


Resilience is about sustaining and bouncing back when beset by adversity to attain success


Optimism is about making a positive attribution about succeeding now and in the future.


Once PsyCap is established in an organisation, interventions can be developed to enhance the levels over time. It will become your organisation’s best asset in an economic downturn.

The above excerpt is our compilation of ideas for business leaders in the areas of people management, leadership, and workplace happiness. 

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