Final answer:
The term 'self-concept' refers to fundamental premises about oneself and functioning in the world, encompassing thoughts and feelings about oneself. High congruence between one's real and ideal selves leads to a positive self-concept, which is critical to a person's psychological well-being.
Step-by-step explanation:
The term that refers to the fundamental premises people hold about themselves and their functioning in the world is identified as self-concept. This term encompasses all of our thoughts and feelings about ourselves and can come from how we answer the question, "Who am I?" According to Carl Rogers, a humanistic psychologist, our self-concept is shaped by our ideal self (the person we would like to be) and our real self (the person we actually are). High congruence, or consistency between these two selves, leads to a healthier life and a higher sense of self-worth. Parents play a critical role in this by providing unconditional positive regard to their children, which fosters a more positive self-concept. Related concepts in psychology include self-esteem, which relates to the confidence in one's own abilities, and self-efficacy, which is the belief that one can control one's own outcomes. Understanding these concepts helps us to comprehend how individuals perceive themselves and navigate their world.