Mgt 386 Section 6- Pob

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Section 6Positive Organizational Behavior



Leaders are Readers

The Art of Possibility

Zander and Zander (2002)

A show factory sent two marketing scouts to

a region in Africa to study the prospects forexpanding business. One sends back atelegram saying, SITUATION HOPELESSSTOP NO ONE WEARS SHOES

The other writes back triumphantly,GLORIOUS BUSINESS OPPOTURNITYSTOP THEY HAVE NO SHOES”.



1

POSITIVE ORGANIZATIONALBEHAVIOR (POB)

APPEAL OF POPULAR BOOKS (Blanchard, Covey,Johnson)

But, no theory, no research, and no performanceoutcomes

GALLUP’S POSITIVE, STRENGTHS APPROACH

Don Clifton’s Positivity and Emphasis on Strengths

Books: NDYS, 12 Elements

Harter, Schmidt & Hayes JAP article

POSITIVE PSYCHOLOGY MOVEMENT

Background

Seligman, Diener, Peterson, et al.



Positive Psychology

Positive psychology is concerned with optimalhuman functioning instead of pathological humanfunctioning.

The three levels of positive psychology are:

1. Valued subjective experiences.2. Positive individual traits.3. Civic virtues and the institutions that

move individuals toward better

citizenship.These very “positive” goals have obvious

implications not only for therapy, education, familylife, and society at large, but, importantly, also for

organizational life and behavior.



3

Positive Psych Research

20 years of experiments by Isen findpeople who are positive/feel good, theirthinking is more - creative - flexible

- integrative - open to information

Positivity may be hedonistic (enjoy the

moment) but at the same time, researchshows building longer-term resources:◦ - physical - social

◦

- intellectual - psychological



3

Positive Psych Research

Positivity does more than feeling good inthe present (also in the future, a contagion

effect) Positivity not only affects individuals, but

also can transform:

- groups/teams - organizations

- communities

Isen found upward spiral of positivity

leads to caring/compassion, leads to more



POB

POB DEFINED: The study and applicationof positively oriented human resourcestrengths and psychological capacities thatcan be measured, developed andeffectively managed for performanceimprovement in today’s workplace (Luthans,AME, p. 59).◦ Based on Theory and Research

◦ Unique Concepts (not old OB in new POB

bottle)◦ Valid Measures◦ Open to Development (i.e., State-like)◦ Managed for Performance Improvement



Positive Organizational BehaviorStates

Several important positive psychologystates are emerging to help in both thebetter understanding and effectiveapplication of organizational behavior

Optimism

Resilience

Hope

Confidence

Emotional Intelligence

Psychological Well-Being

Positive Psychological Capital (PsyCap)



POSITIVE PSYCHOLOGY

Positively Oriented

Traditional OB

• Emotions

• Affect

• Reinforcement

• U. Mich. POS

Positive Organizational

Behavior (POB)

• Valid Measures

• Open to Development

(State-like vs. Traits)

• Performance Impact• Confidence, Hope,

Optimism, Resiliency

Gallup Strength-Based

Management

Consulting Practice

PSYCHOLOGICAL

CAPITAL (PsyCap)

• Beyond Human/SocialCapital

• Core Factor of POB

• Valid PsyCap Measure

• Return on Investment/

Development in PsyCap

• For Competitive Advantage



Optimism- Martin Seligman:attribution of failures Optimistic- Cognition and Emotion

◦ External, Unstable, Specific attributions(my boss is mean when X happens)

Pessimistic◦ Internal, Stable and Global attributions

(managers are mean and selfishslimeballs)



Optimism- attribution ofsuccesses Pessimistic Cognition and Emotion

◦ External, Unstable, Specific attributions(my boss is mean when X happens)

Optimistic-◦ Internal, Stable and Global attributions

(managers are mean and selfishslimeballs)



Optimism

The Dimensions of Optimism◦ Optimism as Human Nature

◦ Optimism as an Individual Difference

◦ Optimism and Performance at Met Life◦ Some Unresolved Optimism Issues-

realistic optimism and a lack of affect

(Continued)



Hope and Happiness

Hope◦ Agentic Capacity (aka agency or goal

directed energy)

◦ Pathways Thinking No pathways to accomplish goal, no

subsequent hope the goal will beaccomplished?



Hope and Happiness

Happiness or Subjective Well-Being(SWB)

◦ The Background on SWB

◦ Temperament and PersonalityDispositions

◦ The Role of Goals

◦ Across Cultures Job Satisfaction

(Continued)




The Role of Emotion◦ Emotional Processing

Personality Effects

Mood Effects

◦ Types of Emotions- Primary

◦ Emotional Categories and Continuum




The Role of Intelligence◦ Nature versus Nurture Intelligence

◦ Recognition of Multiple Intelligences

◦ Intelligence as Cognitive Mental Ability

(Continued)




Emotional Intelligence in theWorkplace

◦ Goleman’s Approach to EI in the

Workplace

◦ Initial Supporting Evidence

◦ Application to Leadership

(Continued)



Self Efficacy

Orbiting the Giant Hairball (1998) byGordon Mackenzie

“Orville Wright did not have a pilot’slicense”

So what did he have?



Self-Efficacy- Albert Bandura

“It’s hard to lead a cavalry if you thinkyou look funny on a horse”

The Theoretical Background and

Meaning of Self-Efficacy◦ Specific versus General Self-Efficacy

◦ How Self-Efficacy Differs from Established

Organizational Behavior Concepts The Process and Impact of Self-

Efficacy



Self-Efficacy

Sources of Self-Efficacy

Implications for Self-Efficacy in theWorkplace

◦ Selection of Human Resources

◦ Training and Development

◦ Other Applications

◦ Meta-Analysis

(Continued)



Self-Efficacy(Continued)



Self-Efficacy(Continued)



Resilience “a class of phenomena characterized by

patterns of positive adaptation in thecontext of significant adversity or risk”

Beyond simple adaptation nad coping, it is

the ability to rebound and bounce back fromadversity

In the beginning scientists thought it was for

a select few gifted children. Now we knowotherwise, that it can be enabled.

In the beginning scientists thought it wasfixed, now we know it can be devleoped.



Resilience

COMMON CHARACTERSTICS IN RESILIENCY THEORIES(Coutu, 2002).◦ Staunch acceptance of reality. (Admiral Stockdale, Morgan

Stanley)◦ Propensity to make meaning of terrible times; strong values.

(Why not me? True, I lost many things, but I found many more)◦ Uncanny ability to improvise; make do with whatever is at hand. Notreally creativity, concentration camp inmates who pocketedpieces of string or wire)

DIFFERS FROM OTHER POSITIVE CAPACITIES◦ - smaller domain◦

- reactive rather than proactive◦ - matters most in difficult times◦ - like hope pathways, but not will power◦ “It is not what happens to you that matters, but how you take

it.”



Research on POB

Antecedents

Outcomes

Upcoming Research



Studies 1 and 2

Measurement

Relation to Performance andSatisfaction

Development

Development for Performance Impact



Executive Summary

Research at Central WashingtonUniversity and The University ofNebraska-Lincoln study the role that

positive psychological capacities play inauthentic leadership and human resourcedevelopment/performance.

We call these positive capacities“Psychological Capital” or simply PsyCap because they represent individual (and

team) resources that can be invested inand develo ed for increased erformance.



Two main studies indicated that PsyCap:◦ Can be reliably and validly measured

◦ Developed using relatively short two-hourmicro-interventions

◦ Have a positive impact on performance andsatisfaction

Utility analysis of these results indicated:

◦ Substantial return on development (ROD)◦ Gained from the investment in and

development of PsyCap



Sample Items from the PsyCapQuestionnaire (PCQ)-24

Below are statements about you withwhich you may agree or disagree.Using the following scales, indicate

your level of agreement ordisagreement at the present time.

◦ (1 = Strongly disagree, 2 = disagree, 3 =somewhat disagree, 4 = somewhat agree,5 = agree, 6 = strongly agree)



1. I feel confident helping to set targets/goals inmy work area.

2. I feel confident presenting information to agroup of colleagues.

3. There are lots of ways around any problem.4. I can think of many ways to reach my current

work goals.5. When I have a setback at work, I have trouble

recovering from it and moving on.6. I usually take stressful things at work in stride.7. When things are uncertain for me at work I

usually expect the best.8. I’m optimistic about what will happen to me in

the future as it pertains to work.

















Key Initial Research Findings onPsyCap

Psychological Capital (PsyCap)measurement was found to be reliable andvalid.

PsyCap seems to have a significantpositive relationship with performance andsatisfaction.

PsyCap seems to be a core capacity thatis greater than the sum of its parts (hope,optimism, efficacy, and resiliency), i.e.,PsyCap appears to be synergistic.



It was found that PsyCap can be

developed through a short, highly focusedtraining session.

Increases in training participants’ PsyCapleads to increases in their performance.

Both the development and performance ofthose with relatively low levels of initialPsyCap are more greatly affected by the

PsyCap training intervention. Investment in the development of PsyCap

can lead to a very high return.



Implications for Practical Application ofPsyCap

PsyCap can be developed in humanresources through a short training

intervention. Enhancing the levels of human resources’

PsyCap leads to increased performance.

Investing in and developing PsyCap canresult in very high returns.



PsyCap of groups/teams may determinehow agile and adaptable groups/teams arein challenging contexts.

PsyCap and other human capitaldimensions in combination can help

account for the human “intangibles” inorganizations that contribute tosustainable, veritable performance.

PsyCap may be an important input andoutcome of authentic leadershipdevelopment (ALD).



PsyCap Development

Study 3ANZ- Australia Financial Firm



ANZ PsyCap

Results from February 2007

Pilot TestJames B. Avey



Purpose of Pilot Test

•Skills development will be complemented with PsyCap training

within ANZ

• Inform the training and development of PsyCap within ANZ

•Determine the extent to which PsyCap is related to performanceand referral metrics within ANZ

Procedure of Pilot Test

• ANZ employees complete PsyCap survey. These results are

then aligned with their performance and referral metrics to

determine the strength of relationship between these and PsyCap.

1



Results of Pilot Test

•PsyCap positively related to both performance and

referrals.

•Suggests that the development of PsyCap may enhance

both performance (PM) and referrals.

1

Estimated Return on Development (ROD) for




Referrals

• Specific PsyCap accounts for approximately 9% of the variance

in referrals.

• This indicates that PsyCap scores predict 9% of increase anddecrease in referrals.

• For simple math, let’s say that referrals were “worth”

$10,000,000 over the course of a year for all of ANZ. (e.g., allclosed referrals for one year led to an overall financial increase

of $10M)

•This indicated that PsyCap accounts for $900,000 per year.

1




Referrals Continued

• Given the previous assumptions, the

development of PsyCap by X% will lead to an

increase of X% of the $900,000.

•For example, if PsyCap increases by 10%, the

estimated ROD would be $90,000 (minus the cost

of tool development).

•This does not include the expected financial

impact of increased performance (measured by

PM scores), group impact and customer impact. 1



Summary and Next Steps for PsyCap

• Results from the pilot test suggest that development of

PsyCap may enhance performance and referrals rateswithin ANZ.

•The PsyCap training is currently preparing to launch

within ANZ.

1



Study 4

Avey DissertationBoeing Leadership Experiment



Boeing- Leader Psychological Capital

117 Aeronautical, Mechanical and ElectricalEngineers in Commercial AirplaneManufacturing

Field Experiment:◦ Kurt Lewin- “You can not understand a system until

you try to change it”

Evidence Based:◦ Intangible Engineering Performance- Quality and

Quantity of Solutions to Engineering Problems

Solve Issue XLeader

MessageSolutions



2

3

4

5

Engagement Task Confidence Task Hope Task Resilience Task Optimism

Low Leader Positivity High Leader Positivity

Leader PsyCap, Employee PsyCap and Attitudes



0

1

2

3

4

Quality of Solutions Number of Solutions

Low Leader Positivity High Leader Positivity

Leader PsyCap and Employee Performance



PsyCap DirectedToward Team

PsyCap inthe Task

PerformanceOutcomes

Leaders………..Drive Conditions…….that Drive Outcomes



Implications

Not whether you (others) have PsyCap, but how can I(others) have more PsyCap?

◦ PsyCap is not finite point, not a destination.

◦ PsyCap is an ongoing process, is a journey.

◦ PsyCap is an unlimited psychological resource.

Tal Ben-Shahar: “While I do not believe that things

necessarily happen for the best, I know that some people areable to make the best of things that happen.”

Positivity Profile



Positivity Profile(a.k.a. Hamburger Model, Ben-Shahar, 2007)

The key roles of the present benefits (detriments) versus (and) future benefits(detriments)

FutureBenefit

Present

Detriment

Present

Benefit

Detriment in

Future

Full PsyCap Potential

Confident, hopeful, optimistic, and resilient in

present will also lead to fulfilling future. Enjoy

the journey to a valuable destination.

(Ideal Burger)

Hedonist

Seeks pleasure of present.Lacks purpose, unfulfilled.

“Floating moment fallacy.”

(Junk-food Burger)

Nihilist

Neither enjoys present nor has sense

of future purpose.

Learned helplessness.

(Worst Burger)

Rat Racer

Sacrifice present for the future.

Never ending “arrival fallacy.”

(Vegetarian Burger)

Practical Guidelines for Managing Self and Others



Practical Guidelines for Managing Self and OthersPsyCap Self-discipline usually insufficient (New Year’s

resolutions fail)

Implement the PsyCap Development Model

Start with three critical questions to get into the“right fit”:

◦ What provides me with a sense of meaning and purpose?

Do I have a calling rather than just a job or career?

◦ At work, what do I enjoy doing?

◦ What am I good at? Do I do what I do best every day?

Introduce and follow RITUALS (Loehr & Schwartz, 2004)

◦ “Requires defining very precise behaviors and performingthem at very specific times.”

◦ Initiating rituals difficult, maintaining rituals easy (topathletes to brushing your teeth).

Introduce and follow RITUALS Continued



Introduce and follow RITUALS Continued

About the same time, at the end of each day, jot down in yourPsyCap journal two or more things for which you are grateful

(Emmons & McCullough, 2004). Also at the end of each day, approximate if you have met the

ratio effectiveness standard of 3 positives to 1 negative inyour work relationships and 6 positives to 1 negative in yourpersonal relationships (Fredrickson & Losada, 2005).

At the end of each work-week, list two or moresuccesses/wins.

At the end of each year, assess yourself on each of thequadrants of the Positivity Profile (give examples of each“burger” you have tasted/eaten).

Repeats are OK – keeps positivity and efficacy fresh andcontagious.

At least twice a year, write a gratitude letter and/or make agratitude visit to someone you really care about (more thanthank-you note).



Besides rituals, set GOALS

◦ Goals make a commitment in words, in present that have thepower to create the future.

◦ Goals communicate, to ourselves and others, the willpower,efficacy and optimism of overcoming obstacles.

Your journey hits a wall, goals “throw your knapsack over.”

Edison’s public announcement by Dec. 31, 1879 have light.

Kennedy’s 1962 declaration of man on the moon by end of decade.

◦ Goethe: “Whatever you can do, or dream you can, begin it!Boldness has genius, magic, and power in it.”

◦ Goals create our present reality and future, rather than have ustry to react to it.

◦ Research indicates goal attainment (or not) will have only short-term impact.

◦ The key is not so much on attaining goals, but having them.



y g g g

The journey, striving for goals, contributes to positivity.

Goals liberate us so we can enjoy the present and have meaningfulfuture (“ideal burger”).

Goals should be viewed as means, not just ends.◦ Set PsyCap goals.

Based on personal conviction/passion and interest.

Express part of self rather than trying to impress others.

“Want-to” goals rather than “Have-to” goals.

◦ If in health care, goals to help people (rather thanstatus/financial gain).

◦ Business goals because of excitement/interest (rather thanstatus/financial gain).

◦ Distinguish: Can do –want to do –really want to do –really, reallywant to do.

Can do’s = possible goals (constraints make necessary to do).

Really, really want to do = PsyCap goals (those with personalpassion).

Such PsyCap goals helps keep positive and true to



Suc syCap goa s e ps eep pos t e a d t ue tooneself.

◦ Authentic leadership

◦

More effective and successful Every three years, set two or more challenging, long-

term goals for your career, toward your calling (set atlevel that you enjoy the journey, not that you necessarilyattain them).

At the beginning of each year, set two or more short-term goals within your current work.

For both long and short-term, develop specific actionplans (dates, actual activities).

We are developing and managing positive PsyCapwhen we derive pleasure and fun from the journey andfind meaning and purpose in our work and personallives. It is really that simple – if we just do it!

Gallu Leadershi

Exercises for Developing



Exercises for DevelopingPsyCap

Write a letter of gratitude twice a year At least once a year:

◦ List 3 things you do well that few people know about.

◦ List 3 things you do very well in your job.

◦ List 3 high level goals you would like to do in your lifetime.

◦ List 3 relationships you are thankful for and tell them.

Celebrate a success at least once a week

Make a mental note of a good thing you accomplished atleast daily.

Builds PsyCap by reinforcing and highlighting:

◦ Accomplishments

◦ Strengths

Documents

Mgt 386 Section 6- Pob