The Impact of Positive Psychological Capital on Employee Well-Being: The Mediating Role of Authentic Leadership

Introduction

The pandemic took every country in the world by surprise and created great challenges, reminding us that we are all vulnerable and depend on each other (Araújo et al., 2020). The limitations caused by the pandemic had an impact on organizations and the wellbeing of employees (Gomes, 2022; Leal, 2021). Routines were altered, and it was necessary to restructure both personal and professional lives. Therefore, it is essential to understand the impact of Covid-19 in the workplace context, particularly the changes that occurred in work methods (Belzunegui-Eraso & Erro-Garcés, 2020). According to Rodríguez-Modroño and López-Igual (2021), there has been an increasing concern about balancing work with personal life, and organizations have become more flexible to the needs of their employees. Professional activity is essential in the life of any human being, and considering the amount of time we spend in the workplace, it is desirable for the environment to be positive and promote the wellbeing of its employees (Garcia et al., 2019).

Wellbeing in the workplace has been acquiring increasing importance in people's lives, and organizations and their leaders are increasingly being attributed this responsibility (Silva, 2021). In this context, Smith and Smith (2021) state that wellbeing at workplace encompasses three elementary concepts: satisfaction, engagement, and commitment to the organization. Based on these assumptions and in the search for new organizational approaches, at the end of the 20^th century, the concept of positive psychology developed by psychologist Martin Seligman (1999) emerged. Unlike traditional approaches, which focused primarily on mental disorders and negative aspects, it fostered the development of positive emotions and wellbeing (Luthans et al., 2010). This new trend gives rise to two perspectives: Positive Organizational Scholarship (POS) and Positive Organizational Behavior (POB), from which the concept of positive psychological capital emerged (PsyCap; Luthans et al., 2007).

According to Alessandri et al. (2018), PsyCap can be defined as a state of positive individual development characterized by the confidence to exert the effort needed to succeed (self-efficacy), positivity about current and future success (optimism), the ability to overcome obstacles (resilience), and perseverance to achieve proposed goals (hope). The four components of PsyCap, when combined, predict performance better than each individually. These capacities can be developed by anyone and significantly improve individual performance (Imran & Shahnawaz, 2020). Additionally, Kim et al. (2021) refer to the fact that effectiveness in leadership style contributes to improving employee satisfaction levels and, consequently, their wellbeing in the workplace. It is observed that when leaders are authentic, they create an environment of mutual trust with their employees, promoting a healthy, positive, and motivating work environment (Gardner et al., 2021).

Authentic leadership focuses on transparency, honesty, and sincerity on the part of the leader and, as such, has been associated with positive outcomes for both employees and the organization (Novitasar et al., 2020). This leadership style largely contributes to building relationships based on trust, respect, and authenticity, which reflects in higher levels of engagement, better performance, and greater job satisfaction (Purwanto et al., 2021). When organizations are aware that it is the people behind their success, they begin to value their employees and no longer view them solely as labor but invest in their wellbeing and quality of life at work (Monteiro et al., 2018). This research fits into this context and aims to explore the mediating role of authentic leadership in the relationship between PsyCap and wellbeing in the workplace.