|dc.description.abstract||The purpose of this study was to examine the relationship between a nurse manager's level of Positive Psychological Capital (PsyCap) and his or her ability to foster a healthy work environment as perceived by nursing staff. Studies have shown PsyCap to be positively correlated to improved work-related outcomes including job satisfaction, organizational commitment, and employee performance, as well as, negatively related to employee stress and anxiety (Avey et al., 2011). ). The literature has cited the central role a nurse manager plays in fostering a healthy work environment, which in turn allows nurses to function at their best and deliver quality care to patients (Leiter & Laschinger; 2006; Manojlovich & Laschinger, 2007; Twigg & McCullough, 2014; Warshawsky & Havens, 2011). This research intended to discover whether a nurse manager with higher levels of PsyCap would be perceived by their staff as a more effective manager and able to foster a healthier work environment. The researcher wanted to validate this relationship to provide scholars and practitioners with new insights into how PsyCap could enable nurse manager effectiveness, as well as, the health of their teams. To examine this relationship, the Psychological Capital Questionnaire (PCQ), a survey instrument measuring individual PsyCap, was administered to 102 nurse managers who supervise departments within a multi-hospital healthcare system. The PCQ data were compared to previously collected organizational survey data measuring the health of the work environment and nurse manager effectiveness as perceived by nursing staff. Three research hypothesis were tested to understand the relationship among nurse manager PsyCap, the health of the work environment and nurse manager ability, leadership, and support of nurses as perceived by nursing staff. Findings from the study indicated there was no statistically significant relationship between a nurse manager's level of PsyCap and the health of the work environment as perceived by nursing staff. Moreover, there was no statistically significant relationship between a nurse manager's level of PsyCap and their ability, leadership and support of nurses as perceived by nursing staff. There was, however, a statistically significant relationship between a nurse manager's level of efficacy and their ability, leadership and support of nurses as perceived by nursing staff. The study offered some alternatives to better understand the relationship between these factors, as well as, develop nurse manager self-efficacy. These included; using other ways to measure nurse manager PsyCap and nurse manager effectiveness, structuring the data collection to account for the time it takes for the cognitive state of PsyCap to manifest into desired performance and enabling a deeper exploration of the role self-efficacy plays in predicting nurse manager effectiveness. Recommendations for developing nurse manager self-efficacy included structuring activities that enable practice and mastery of the job-related tasks for creating a healthy work environment.