This report delves into the multifaceted relationship between authentic leadership, Leader-Member Exchange (LMX), and employee psychological capital, exploring their combined impact on employee performance and organizational outcomes. It defines authentic leadership as a behavior pattern that fosters a positive ethical climate and the development of positive psychological capacities, leading to increased self-awareness and relational transparency. The report highlights the importance of psychological capital, characterized by self-efficacy, optimism, hope, and resilience, and its positive correlation with employee engagement and performance. Furthermore, it examines how organizations can build psychological capital for different employee types. The report also analyzes the impact of emotions on employee performance, emphasizing the role of emotional intelligence and the influence of emotions on decision-making, job satisfaction, and overall workplace dynamics. It discusses the importance of employee engagement, exploring concepts like absorption and dedication, and differentiating between work engagement and burnout. Ultimately, the report underscores the significance of creating a positive work environment that supports both employee well-being and organizational success.