Abstract This article examines the research on the role of employee psychological well-being in organizational success, including a review of relevant leadership research and the impact that leaders have on the well-being of their workgroups. The concept and measurement of psychological well-being is explored and distinguished from related concepts such as job satisfaction, organizational commitment, and engagement. Traditionally, research on psychological well-being in organizations has focused on the negative consequences of pressure in creating stress and damaging psychological well-being. This article reviews research evidence linking psychological with organization-level outcomes. It also examines the potentially important role of leader personality. One of the clear implications of the research is the key role that management and leadership have in determining employee psychological well-being.
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