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A framework is offered to explain the psychological processes promoting positive leadership. We model how positive leadership, represented by the four psychological capital (PsyCap) constructs of hope, optimism, confidence and resiliency, are activated through a leader’s cognitive affective processing system (CAPS). CAPS provides a dynamic personality approach to leadership explaining how encoding categories, expectancies, goals, values, affects and self-regulatory plans are activated to produce PsyCap in certain contexts and not others. We further discuss the influence of the leader’s self-concept on PsyCap activation and conclude with the role of authenticity and a strengthbased organizational context for sponsoring such positive leadership.

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