The purpose of this study is to examine the antecedents and consequences of psychological capital, defined as the complex of positive psychological states including self-efficacy, hope, optimism, and resiliency. Recent development in the emerging fields of positive psychology and positive organizational behavior reflects the increasing importance of positive aspects of individuals in organizations. While previous research has focused mainly on whether employees’ psychological capital leads to positive organizational outcomes, not much is known about how employees develop high level of psychological capital. Although considering the general question of whether psychological capital is meaningfully related to individual and organizational effectiveness is an important progress toward our understanding of its role in organizational functioning, subsequent research on how it forms and develops is called for. Drawing on positive psychology and positive organizational behavior literature, we developed arguments that transformational leadership and leader’s use of humor are related to employee’s psychological capital, and that psychological capital is, in turn, related to perceived work performance. The data were collected from a sample of 425 employees from multiple organizations in Korea. The results of hierarchical regression analysis showed that the relationships between transformational leader’s behavioral factors (core transformational behaviors, intellectual stimulation, and individual consideration) and psychological capital were statistically significant. However, the relationship between leader’s use of humor and psychological capital did not turn out to be statistically significant. The results also showed that psychological capital was indeed related to employee’s perceived performance. Implications, limitations, and suggestions for future research conclude the article.