Management scholars no longer view economic capital as the primary factor in achieving sustainable competitive advantage for organizations. Rather, the human resource has become the most important element to achieve this advantage. Therefore, this prompted the institutions to adopt leadership styles that enhance the meanings of subordinate service, taking care of them as the main pillar in providing services, working to empower them by giving them responsibility for decision-making and a degree of independence and discretion, with engaging them as solutions to address fundamental problems in the provision of services and restore them when necessary to meet customers' needs and requirements and different expectations.
This research attempts to investigate the mechanism of how servant leadership can enhance and elevate the level of employees' psychological capital (PsyCap) in five-star hotels in Cairo, to achieve this, a questionnaire consisting of 45 phrases was designed. Data was gathered from 383 employees from some of five-star hotels in Cairo. The results proved that servant leadership is high in five-star hotels in Cairo with mean (3.85). Whereas results are showing high level of employees' psychological capital with a high mean (4.12) The results further proved that servant leadership can enhance employees' psychological capital in five-star hotels in Cairo.