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Master's Thesis from the year 2012 in the subject Leadership and Human Resource Management - Miscellaneous, , course: Master of Commerce, language: English, abstract: Today's business environment is facing the challenges and problems to achieve effective performance by employees. The core construct of psychological capital or PsyCap (involving Hope, Self-efficacy, Optimism and Resilience) is associated with various employees attitudinal or performance effects. Therefore, the objective of this study is to investigate the influence of the dimensions of psychological capital (hope, optimism, self-efficacy and resilience) on employee engagement. The data is collected from 171 employees engaged in the Commercial Banks of Lahore through questionnaires. Data is analyzed with the help of Statistical Software SPSS 16. The correlation, regression analysis, histograms and descriptive statistics are analyzed. Self-efficacy, hope, optimism and resilience have positive and significant relationship with employee engagement. The conclusion, discussion, limitations are also included.