We’ve all heard of human capital and the importance of the human element. The concept of psychological capital takes that discussion to another level – a level where we can begin to further understand, analyze and actually build on our most significant asset.

Most people believe that their intellect – the combination of their learned knowledge and their ability to process or respond to new information – comprises the bulk of the human capital equation. But, is this really true? What about the imprecise and fluid elements of confidence or determination? Where do these feeling-based dimensions fit into the role of human capital?

It is the inclusion and specificity of both feeling and emotional elements, in addition to intellectual ones, that defines psychological capital.