Thesis (Ph.D.) Wits Business School University of Witwatersrand, Johannesburg South Africa December 2016 / Employee psychological capital (PsyCap) is described as employee belief in performing one’s work well (efficacy), in succeeding now (optimism), succeeding in the future (hope), and in persevering amidst challenges or opportunities (resilience) in the workplace. A body of research knowledge provides empirical evidence that PsyCap is linked to positive individual, team and organisational outcomes. A review of literature found a few studies that have explored determinants of employee psychological capital; particularly, no study had examined the relationship between positive organisational emotional intelligence (OEI) theory and PsyCap. OEI is the emotional and social climate of an organisation. Thus, the purpose of this study was to test a model fit of the influence of OEI on PsyCap. A positivist quantitative methodology approach was used to establish whether there was a significant positive relationship between OEI and PsyCap. A cross-sectional survey quantitative research design was adopted for the study. From a population of about 295,100 employees in the public sector, data was collected voluntarily from 668 participants, randomly sampled from employees in public sector organisations. A self-administered questionnaire adapted from previously validated instruments for OEI and PsyCap was used to collect data. The pre-test supported the psychometric scales of the constructs, demonstrating reliability, validity and relevance in the workplace. This non-experimental study adopted structural equation modelling (SEM) and Average Moments of Structures (AMOS) for data analysis. The analysis established a model fit, implying there was a positive association between OEI and PsyCap among public servants in Uganda. However, out of the eight dimensions of OEI specified for the model, only four dimensions, namely job happiness, supervisory leadership, organisational responsiveness and positive impression, were significantly associated with employee PsyCap. The other four OEI dimensions, namely, compensation satisfaction, organisational cohesiveness, work–life balance and diversity management, were not significantly associated with workplace PsyCap. The study thus recommends that, in Uganda, the OEI model by Stein (2005), particularly the dimensions of job happiness, organisational responsiveness, supervisory leadership and positive impression, can be applied to enhance employee PsyCap. The other dimensions of Stein’s OEI model, which do not have significant association with employee PsyCap, require further investigation to understand whether they can be applied. The study makes a theoretical contribution by linking the organisational emotional intelligence and PsyCap theory. It makes an empirical contribution to psychological capital theory by highlighting OEI dimensions that could develop PsyCap in organisations. Testing a theoretical model of OEI and PsyCap and establishing a model fit suggests that managers of public sector organisations in developing countries such as Uganda need to improve their OEI stance, in order to enhance employee PsyCap for positive individual and organisational outcomes. Further research can base on the study findings to advance knowledge in PsyCap. / MT 2018