PSYCHOLOGICAL CAPITAL AS INSTITUTIONAL CURRENCY: ENHANCING FACULTY WELLBEING FOR ORGANIZATIONAL RESILIENCE AMONG HIGHER EDUCATION INSTITUTION

Abstract

Globally, universities are gradually acknowledging faculty wellbeing as a foundational pillar for institutional growth and development, innovative thinking and sustainability. This chapter will examine the psychological capital (PsyCap)—comprising growth mindset, efficacy, psychological resilience, and optimizing academic career growth—as a strategic resource within the higher education context. The conceptual framework has been grounded employing positive psychology and organizational behavior, the chapter explores how cultivating PsyCap among academicians can enhance higher teaching effectiveness, student engagement, research rigor, and the overall building a stronger institutional climate. It emphasizes PsyCap not only as an employee asset but as a form of “institutional currency” that organically ensures meaningful and long-term academic outcomes. The chapter will evaluate faculty development models practiced by globally ranked institutions, particularly featured in the QS World University Rankings and THE Impact Rankings. The chapter will explore these institutions adopting faculty well-being initiatives in their strategic goals through evaluating their reflective leadership frameworks, wellness-centered policies, mentorship structures, and professional learning development programs. This integrated approach can serve not only as a benchmark for Indian universities but realign their strategic plan that ensures global ranking and strengthen university ethos. The discussion aligns with Sustainable Development Goals—SDG 3 (Good Health and Wellbeing) and SDG 8 (Decent Work and Economic Growth)—offering a multi-level analysis relevant to academic leaders, policymakers, and faculty development units. The chapter accentuates that implementing psychological capital into higher education is not a marginal issue but can act as strategic necessity for developing inclusive, high-performing, and intrinsic driven academicians, future-focused and institution embedded in sustainable practices.