ABSTRACT: Psychological Capital (PsyCap) construct is a core concept of positive psychology consisting of the positive psychological resources of self-efficacy, hope, optimism, and resilience. Previous studies confirmed link of PsyCap with employee attitude, behavior, workplace outcomes and job performance. In today's competitive environment, it is a challenging task for all organizations to enhance the level of engagement of employees. Employee engagement (EE) contribute positively to different workplace outcomes and performance level of employees. The current study focuses on the relationship between PsyCap and employee engagement. Data from 420 middle level IT professionals (working in different IT industries in Indian context) were collected for current study. Regression analysis, basic descriptive analysis, Confirmatory factor analysis, model fit analysis etc. analysis were performed. Results revealed positive impact of PsyCap on Employee Engagement. Moreover a fit model was also identified between PsyCap and EE with both construct's factors. Results of current study demonstrated that employee with higher level of PsyCap (in terms of hope, confidence level, bounce back capability and optimistic view) show higher level of work engagement at workplace in IT industries.

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