Psychological capital refers to the positive psychological capacities including hope, efficacy, resilience, and optimism that individuals and organizations can develop to achieve goals and overcome challenges. Developing psychological capital provides benefits like increased well-being, improved performance, and being more resilient to stress for individuals, and higher productivity, better employee retention, and increased innovation for organizations. Strategies for developing psychological capital involve training and education, coaching and feedback, employee involvement, and creating a positive work environment.