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The Happy/Productive Worker Thesis: Job Performance, Job Satisfaction, & Happiness By Zachary A. Wright Senior Seminar Committee Nathalie Coté, PhD Ann Calhoun-Sauls, PhD Jill Bloede, MA Belmont Abbey College December 2016

Zach Wright - Thesis Paper - PC412W 12-14-2016 - FINAL REVISION

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Page 1: Zach Wright - Thesis Paper - PC412W 12-14-2016 - FINAL REVISION

The Happy/Productive Worker Thesis: Job Performance, Job Satisfaction, & Happiness

By

Zachary A. Wright

Senior Seminar Committee

Nathalie Coté, PhD

Ann Calhoun-Sauls, PhD

Jill Bloede, MA

Belmont Abbey College

December 2016

© 2016 Zachary A. Wright

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JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 2

Abstract

This paper will take a deeper look into the idea that job satisfaction relates to the outcome of

the employee’s job performance. Earlier researchers, such as Hersey (1932), have called this

idea “The Happy/Productive Worker Thesis.” Recent researchers, such as Wright, Cropanzano,

and others have suggested we broaden our view on the term job satisfaction as it relates to

happiness in the workplace by adding psychological well-being (PWB) to help form the best

predictor of job performance. Several organizations/researchers want to dismiss the

happy/productive worker thesis (Staw & Barsade, 1993; Wright & Staw, 1999; Wright,

Cropanzano, & Bonett, 2007). Therefore, the purpose of this paper is to explore whether or not

psychological well-being is seen as a moderating factor between job satisfaction and job

performance. Furthermore, this paper argues that organizations should take more of a

responsibility for their employee’s happiness in the workplace. In addition, individuals should

also take responsibility for the enhancement of their own psychological well-being (PWB). I

argue both the individual and the organization are equally responsible for employees’

satisfaction and well-being as it relates to performance in the workplace.

Keywords: job performance, job satisfaction, psychological well-being, the

happy/productive worker thesis, stress management

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JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 3

The Happy/Productive Worker Thesis: Job Performance, Job Satisfaction, & Happiness

In 1929 the fall of stocks created devastation worldwide; this event triggered the Great

Depression. It was known as the most widespread depression of its time and even today.

Ironically, or possibly coincidently, the happy/productive worker thesis also came into existence

during this time. Rexford B. Hersey (1932) suggested that men and women are more productive

when they are in a positive affective state than in a negative state. The year that Hersey made

this observation shows just how long the happy/productive worker thesis has been of interest

in the eyes of organizational scientists and researchers alike; the idea of a happy worker being a

better worker.

Hersey (1932) found a positive relationship between daily emotions and performance;

while Kornhauser and Sharp, in the same year, reported that worker’s attitudes were altogether

unrelated to efficiency. The inconsistencies within the findings have been suggested to be a

result of the inconsistent measures used for job satisfaction. Happiness according to earlier

researchers in this field has been termed “Job Satisfaction.” Defined by Locke in 1976, job

satisfaction refers to “the pleasurable emotional state resulting from the appraisal of one’s job

as achieving or facilitating the achievement of one’s job values” (p. 1297-1349). However,

research from various meta-analyses has shown complications with how job satisfaction is

conceptualized and operationalized.

The term happiness may not be best described through job satisfaction alone.

Organizational psychologist and researchers Staw and Barsade (1993), along with Wright and

Cropanzano (2000), suggested happiness should be viewed as an overall life satisfaction

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JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 4

measure like psychological well-being (PWB). Their reasoning behind changing the view of

happiness to a more global measure, was that characteristics of the job end once employees

leave work, however psychological well-being is continuous across settings. Therefore, by using

PWB as the measure for happiness, researchers can view the employee’s happiness more

globally in and out of the workplace. This creates the potential ability to see how well-being

affects job performance more than just job characteristics and workplace environment. The

importance seen through the evolution of the happy/productive worker thesis is that the

concept of happiness in the workplace can have an affect on people’s PWB. Also, PWB can have

an effect on job satisfaction, making the importance of job satisfaction and psychological well-

being important variables relating to job performance (Staw & Barsade, 1993; Staw, Sutton,

Pelled, 1994; Wright & Staw, 1999; Wright, Cropanzano, & Bonnet, 2007). Therefore, the

purpose of this paper is to express through reviewed literature how PWB is seen as a

moderating factor between job performance and job satisfaction. In addition, I will show the

importance of how positive affect, in dispositional terms, can influence someone’s job

performance. Also, I argue that organizations should take more responsibility for their

employee’s happiness (PWB), but the employee also has responsibility to enhance their own

PWB for the best outcomes of performance.

Job Satisfaction

Theorists have had a number of viewpoints in regards to the job satisfaction and job

performance relationship. For instance, satisfaction causes performance, performance causes

satisfaction, the satisfaction-performance relationship is moderated by a number of other

variables, or both are caused by an exogenous variable are various viewpoints in regards to the

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JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 5

job satisfaction and job performance relationship (Jones, 2006). Although the suggested

relationships above have been tested repeatedly, there remains no clear agreement on which is

the most valid. However, Hackman and Oldham’s (1976) Job Characteristic model demonstrates

a widely accepted theoretical model involving certain core characteristics of the job that can

influence the employee's motivation and satisfaction with the job itself.

Job Characteristics Model (Hackman & Oldham, 1976)

As seen in Figure 1, Hackman and Oldham’s Job Characteristics Model (JCM) (1976)

explains the potential effects job characteristics can have on an employee’s critical

psychological state. Characteristics are suggested as; Skill variety, task identity, task

significance, autonomy, and feedback from the job. Skill Variety refers to the amount of variety

within the job itself. An example of a lack of skill variety can be seen through production

companies and assembly line work. In settings such as production or assembly lines, employees

are asked to do the same skill repeatedly. This shows a lack of skill variety due to the

repetitiveness of the work being performed. Task identity is where the employee can see a job

to completion. Continuing with production companies and assembly line workers, task identity

is seen by the completion of what is being produced on a daily basis. Task significance is the

degree to which a job has an impact on the lives around them. To what extent does the job an

employee holds have purpose? Doctors might experience a higher purpose than other jobs

because they are defined as life savers. According to Hackman and Oldham (1976), skill variety,

task identity, and task significance contribute to the meaningfulness of the employees work.

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The fourth job characteristic, autonomy, is the degree employees have making

decisions on how they do their work (Hackman & Oldham, 1976). This characteristic helps one

experience responsibility. Lastly, feedback from the job refers to the immediate result from the

job. A nurse might see this after caring for a patient and getting praise from the family members

of the patient. When all the core characteristics (Skill variety, task identity, task significance,

autonomy, and feedback from the job) are present they feed into the critical psychological

state, which affects the outcomes (Hackman & Oldham, 1976).

However, there are three moderating factors that can have an effect on critical

psychological states, according to Hackman and Oldham (1976). The first moderator is labeled

as knowledge and skill. This moderating factor can, depending on whether the employee

obtains the correct knowledge to perform the particular skill required, either have a positive or

negative effect on the employee’s psychological state; ultimately affecting their outcome of job

satisfaction. The second moderating factor in the JCM is labeled as growth need strength; Does

the person/employee have a high need for growth? If they do but the job does not offer a way

of promotion, negative affect can take place rather than job satisfaction. Lastly, the third

moderating factor is context satisfaction; to what degree is the employee satisfied with the

context of the job. Any variable within the job environment can be included in context

satisfaction (i.e. the boss, the co-workers, what you are producing as a company) (Hackman &

Oldham, 1976).

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Figure 1. Hackman & Oldham (1976). Job Characteristics Model expresses potential ways that job characteristics can have an impact on an employee’s critical psychological state resulting in the outcome of positive or negative job satisfaction. Three moderators are presented that could have effects on one’s critical state, core job characteristics, or outcomes either positively or negatively. Reproduced with the permission of Oldham.

The Job Satisfaction and Job Performance Relationship

The JCM gives researchers the opportunity to measure job satisfaction through certain

characteristics of the job (Hackman & Oldham, 1976). However, due to the inconsistencies

found in the research with job satisfaction’s conceptualization and operationalization, the

relationship between job performance and job satisfaction in studies have been weak at best

(Jones, 2006; Zelenski, Murphy, & Jenkins, 2008). This can be attributed to job satisfaction

scales not necessarily focusing on emotions but instead asking employees to rate their

satisfaction with their pay, working conditions, or job as a whole (Brayfield & Rothe, 1951;

Quinn, 1979). In addition, analyses involving job satisfaction and job performance have also

seen inconsistent results. Vroom in 1964 reported, through a meta-analysis of 20 studies

between the years of 1949 and 1963, a median correlation of r=0.14. In addition, Iaffaldano and

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Muchinsky’s (1985) meta-analysis of 74 studies reported having a mean corrected correlation

between two variables of 0.17. However, Petty, McGee, and Cavender, (1984), one year earlier,

used a more sophisticated meta-analysis technique consisting of 15 studies used by Vroom

(1964) and 20 additional studies published between 1967 and 1982. The studies used in Petty et

al. (1984) utilized individual-level measures of performance and satisfaction with an estimated

effect size of .23 and reported a mean correlation of .31. Although the meta-analyses suggest a

weak relationship between the two variables, they do suggest some positive relationship.

However, the research between job satisfaction and job performance were all correlational.

Therefore, the question remains unclear as to whether a happy worker really makes a better

worker. For the thesis to be helpful in organizations, the “happy” aspect of the worker needs to

come before the performance is increase to conclude that a happy worker is a better worker.

Happiness Conceptualized and Operationalized as Psychological Well-Being (PWB)

Wright and Cropanzano (2004) brought to the surface an idea that the relationship

between happiness and productivity should be operationalized more broadly than job

satisfaction. They viewed recent research in their 2001 review of the happy/productive worker

thesis and recognized a consistency demonstrating that high levels of well-being boosted

performance on the job. Thus, creating a new direction for the happy/worker thesis in

reference to happiness being operationalized as psychological well-being. According to the

articles gathered for this thesis, there are three characteristics involving PWB: (1) Happiness is a

subjective experience (Cropanzano & Wright, 2001); meaning people are happy to the extent

that they believe themselves to be happy. This is considered a subjective definition of

happiness; it is based on or influenced by emotions. (2) Happiness includes both the relative

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presence of positive emotions and the relative absence of negative emotions (Diener & Larson,

1993). Basically, when you experience positive emotions at a higher level and negative

emotions at a lower level you are considered to be happy or psychologically well. This definition

is more of an objective view. This means that we can actually test someone’s happiness. (3)

Happiness is a global judgment (Diener, 1984). This definition of PWB refers to one’s life as a

whole, unlike job satisfaction where it tends to focus on specific characteristics of the job and

its environment.

Measurements used for PWB

Several scales to measure psychological well-being exist; the majority of them measure

either affective or cognitive components of the participants. However, most of the studies

reviewed for this thesis paper used Berkman’s (1971a) 8-item index of Psychological well-being.

This is an index that provides a look at both negative and positive terms. Respondents were

asked how often they felt “very lonely or remote from other people,” “depressed or very

unhappy,” “bored,” “so restless you couldn’t sit long in a chair,” “vaguely uneasy about

something without knowing why,” “particularly excited or interested in something,” “pleased

about having accomplished something,” and “on top of the world,” (Berkman, 1971a).

The Berkman scale borrows many of the same items seen in Bradburn and Caplovitz’s

(1965) earlier measure of PWB. The difference between the two is that the Berkman's scale has

a more general time horizon (Wright & Cropanzano, 2000). Berkman (1971a) explains the

considerations leading to the selection of the 8-item index used for the measure of reflecting

mental health or well-being was that it has been indirectly and provisionally validated through

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Langner and Michael’s (1963) replications of extensive stress-factor analyses. In Wright and

Cropanzano’s (2000) study, the coefficient alpha was .72. In Wright and Staw's (1999) study,

Cronbach’s alphas for dispositional affect scale were established at .73 and .70 while using the

Berkman’s 8-item Index of Psychological Well-being. Wright and Cropanzano (2000), Wright

and Staw (1999), and Wright, Cropanzano, and Bonett (2007) suggested for a further

description of the validation the reader is referred to Berkman (1971a) and Wright and Bonett

(1992) research using a sample size of 6928 adults.

The Connection between Psychological Well-Being and Job Performance

An increasing amount of empirical research has found support for a connection between

PWB and job performance. Staw and Barsade (1993) did an ex post facto study on MBA

students. In Staw and Barsade (1993) their participants were not randomly assigned. The

participants in their study were first tested to measure their current level of positive affect.

After determining their affect level, they were placed into groups accordingly: high affect,

medium affect, and low affect (Staw & Barsade, 1993). High positive affect relates to PWB in

regards to Diener and Larson’s (1993) definition for the term PWB. Staw and Barsade (1993)

then examined the contrast between individuals with high positive affect and individuals with

other affect levels through a managerial simulation. Results were that individuals with higher

positive affect or well-being were superior decision makers (r = .20), showed better

interpersonal behaviors (r = .24), and received higher overall performance ratings (r = .20). This

suggest that PWB, if high, has a positive relationship with performance (Staw & Barsade, 1993).

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Staw and his colleagues (1994) furthered their research by doing an 18-month

longitudinal study on workers. They wanted to determine whether a single dimension measure

of well-being could predict changes in performance. Well-being predicted changes in salary,

performance evaluations, and supervisory support (Wright et al., 2007). The importance of

Staw and Barsade (1993) and Staw et al. (1994) research is seen through their research

methods. Their studies suggest a causal relationship expressing performance increases when

well-being is high. They also create an argument against the possibility that correlations

between well-being and job performance are misconceptions (Staw & Barsade, 1993; Staw et

al., 1994).

To add to their research, Wright and Staw (1999) formed a 5-year longitudinal study in

the purpose to test forms of affects as it relates to job performance. The forms of affect

examined were state affect and dispositional affect. State affect refers to a person’s mood at a

particular time; whereas dispositional affect refers to a trait. It is the tendency to see situations

in a positive or negative manner (Wright & Staw, 1999). Participants consisted of individuals

employed within a public sector, social welfare department (n=81) of a major city in California.

Employees were labeled as professional (e.g., 4-year college degree required) and all performed

their job under the same job description (Wright & Staw, 1999). They had a mean age of 45.3

years and a mean job tenure of 16.7 years. Two measures of employee performance were

assessed in the process of Wright and Staw’s (1999) study; (1) 1-item global rating of

performance which asked the employee’s immediate supervisor questions such as; “Overall,

how would you rate this employee’s performance at this time?” (2) The second supervisory

performance evaluation was a composite scale of performance including: work facilitation, goal

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emphasis, support, and team building. The supervisor rated each employee’s success for the

past year at time 2 (year 3) and time 3 (year 4), and at time 4 (year 4 1/2) the employee was

rated based on the past 6 months. Time 1 was used as a baseline for the employee’s

performance level to compare times 2, 3, & 4 (Wright & Staw, 1999).

Wright and Staw (1999) found that PWB significantly predicted supervisory ratings

beyond the variance accounted for by supervisory ratings at an earlier time. This suggests that

dispositional affect of employees who saw situations in a positive manner had a significant

relationship to job performance over time. The combination of Staw and Barsade (1993), Staw

et al. (1994), and Wright and Staw (1999) studies demonstrate that PWB, if high, is a good

predictor of performance.

In relevance to well-being; prior research on affect and performance has shown that

poor mental health is related to alcoholism, drug consumption, frequent job changes,

hypertension, loss of self-esteem, and role of stress (Cooper & Marshall, 1976; Furnham &

Shaeffer, 1984; Isaksson, 1990; Kelloway & Barling, 1991; Martin, 1984). Therefore, the

importance of the results on affect and well-being is supported through the findings that

express how low well-being can potentially effect one’s life negatively, mentally and physically.

Psychological Well-Being, Job Satisfaction, and Job Performance

Although the Staw and Barsade (1993) and Staw et al. (1994) studies are important, we

have to remember that job satisfaction does have a weak positive relationship with job

performance. Therefore, it would be a smart decision to look at a meta-analysis pertaining to

the relationship between PWB and job satisfaction. This allows us to decide if researchers

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should completely forget job satisfaction all together or add PWB to increase the likelihood of

finding the best way to predict performance. In 1989, Tait, Padgett, and Baldwin conducted a

meta-analysis containing 34 studies creating a sample size of 19,811. They reported the

relationship between job satisfaction and PWB to be r = .44. The direction for causality was

undetermined. However, we do learn that PWB and job satisfaction have a moderate positive

relationship (Tait, Padgett, & Baldwin, 1989). In addition, Judge and Watanabe (1993) used a

structural equation model (SEM), which is a statistical technique for building and testing

theoretical models, and found that job and life satisfaction (PWB) showed evidence of a

reciprocal relationship. This means that job and life satisfaction showed similar behaviors at the

same point in time or in a back and forth manner. The direction of causality was undetermined.

However, through their cross-lagged correlation they found that life satisfaction was a

significant predictor of job satisfaction five years later. Their studies suggested that individuals

with happier lives were more likely to have satisfaction with their jobs (r = .41, p < .01, one-

tailed). When the variables were reversed; individuals with high job satisfaction were more

likely to have happier lives (r = .31, p < .01, one-tailed) (Jones, 2006).

Having known the significant relationship between PWB and job satisfaction, Wright,

Cropanzano, and Bonett (2007) wanted to explore the possibility of PWB as a moderating factor

between job satisfaction and job performance. During this study they acquired data from 109

managers employed by a large (over 5000 employees) customer service organization. The

demographic characteristics were selected by participant's responses on a questionnaire given

by the first author through examination of company records, with the CEO’s permission (Wright

et al., 2007). The logic for this selection process is due to the study examining PWB as a

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moderating factor. They needed to see if PWB had any effect on the two variables at hand. The

broaden-and-build model by Fredrickson (2001) was used as the theoretical base. Wright et al.

(2007) found that job satisfaction was not as good at predicting job performance when PWB is

low among employees. These findings suggest that even the most satisfied employee cannot be

expected to have better performance if their PWB is low. However, PWB was seen as a

moderating factor between job satisfaction and job performance when well-being was high.

This suggests that job performance is best predicted when job satisfaction and PWB are both at

high levels (r = .38) (Wright et al., 2007).

The Importance of the Results

The studies mentioned above support the happy/productive worker thesis. By

presenting data that states if psychological well-being and job satisfaction are high, then

performance will likely be high as well. Which raises the question, why do organizations not

focus more on the happiness of their employees when wanting to increase their productivity?

Before answering this question let us explore how most organizations as well as people view

the formula of success and happiness. According to Shawn Achor (2012), a positive psychologist

out of Harvard University, most people believe that success precedes happiness, “once I get a

promotion, I’ll be happy” or “once I hit my sales target, I’ll feel good” (p. 1-18). The problem

with this interpretation of success preceding happiness is that companies have promoted this

way of thinking for decades. Yet, if we use this method we will always chase happiness because

happiness is on the other side of success (Achor, 2012). When we look at research such as Staw

and Barsade (1993) and Staw et al. (1994), we see the opposite is actually true. They found that

if happiness (PWB) is high, promotions are achieved more than for an employee with lower

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PWB, creativity/decision making is enhanced, and employees high in well-being showed better

interpersonal behaviors. This suggest that happiness actually fuels the fire of success.

The importance of the statement above and the research that provided these results is

that in today’s society we spend most of our waking hours working and many of us are not

satisfied with our job or workplace:

“To spend the majority of one’s waking hours at a dissatisfying job appears to

have a significant influence on the overall experienced well-being in one’s life.

Conversely, spending an equal amount of time at a satisfying and perhaps

challenging and motivating job has a strong positive influence on one’s

subjective well-being (PWB). The role of work and work satisfaction in one’s life

should not be underestimated” (Judge & Hulin, 1993, p. 414).

Therefore, according to Judge and Hulin (1993), unsatisfied employees can experience a

negative impact on their PWB. This in turn, can have a negative effect on job performance.

When PWB and job satisfaction are low, job performance will suffer as well. This ultimately

hurts the organization’s productivity and bottom-line results (Wright et al., 2007).

Bottom-line results in a company refers to their net income or total earnings for the

entire year after subtracting the cost of interest, taxes, and other expenses. Included in other

expenses are the company’s cost for absenteeism and turnover. We learned in Mobley’s (1982)

study that turnover and absenteeism showed linkages to satisfaction. Linkages suggested that

when job satisfaction is low, turnover and absenteeism is increased. Crook, Todd, Combs,

Woehr, and Ketchen’s (2011) study found that when turnover rates increased, performance

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was reduced throughout the organization. Based on their meta-analysis, a one standard

deviation increase in turnover rates from 12% to 22% decreases workplace productivity

from .22 to .13; which is a 40% reduction (Park & Shaw, 2012).

Along with turnover rates affecting the organization's productivity and profit, studies

have shown that poor mental health and poor PWB are related to alcoholism, drug

consumption, frequent job change, hypertension, loss of self-esteem, and role of stress (Cooper

and Marshall, 1976; Furnham & Shaeffer, 1984; Isaksson, 1990; Kelloway & Barling, 1991;

Martin, 1984). When the employee’s PWB and mental health are poor, they tend to stay home

an average of 1.25 more days a month; which translates into 15 days a year (Gallup-

Healthways, 2008). Although 15 days a year might not sound necessarily devastating to the ear,

if you multiplied 15 days by the number of employees with low PWB this can add up rapidly.

According to the Work Institute (2005), absenteeism can cost anywhere from 5.7% to 7.4% of

the total payroll for the organization. This equates to approximately 2 million dollars for a

smaller organization and all the way to 35 million for larger organizations per year.

Organizations would actually benefit from focusing more on their employee’s happiness.

This lowers absenteeism cost by focusing on PWB and job satisfaction of their employees. The

idea is that when PWB and job satisfaction are at higher levels, the employee will be less likely

to have health issues that result in an absence compared to employees with low PWB. This

results in better performance outcomes due to the lack of absenteeism (Gallup-Healthways,

2008; Wright et al., 2007; Wright & Staw, 1999). Also, when PWB is increased to a higher level,

job satisfaction can be enhanced. This creates less turnover rates allowing the organization to

save costs on training and hiring expenses (Noe, Hollenbeck, Gerhart, & Wright, 2014).

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Therefore, organizations should bear more responsibility for the happiness of their workers if

they want to lower costs, increase performance, and reduce turnover rates. This would give the

employee an opportunity to live a healthier life while working.

Improving Happiness for The Individual by The Individual

Many employees tend to put the blame solely on the organization when it comes to

being unsatisfied with their jobs. But is it fair to blame our happiness on just the organization

when we have the opportunity to increase our own psychological well-being in and out of the

workplace? Although job characteristics might not be as easy to influence in the purpose of

increasing our happiness in terms of job satisfaction, psychological well-being seems rather

obtainable. Recent research on neuroplasticity, the brain’s ability to change even in adulthood,

reveals that when we develop a new habit, we rewire our brain. The information and research

on neuroplasticity suggests that we can exercise our brains to form a new habit (Achor, 2012).

Achor (2011) and Lyubomirsky and Layous (2013) suggest that happiness (PWB) can be

improved by exercises correlated with positive change. These are examples of positive exercises

that can potentially increase your well-being: (1) Write down three things you are grateful for,

(2) Write a positive message to someone in your social support network, or write an email in

the morning thanking or praising a member on your team (for work related exercises), (3)

Meditate at your desk for two minutes, (4) Exercise for 10 minutes, (5) Take two minutes to

describe in a journal the most meaningful experience of the past 24 hours (Achor, 2011).

Achor (2011) used this strategy in a study working with tax managers at KPMG located

in New York just before the worst tax season in decades. Half of the tax managers in the study

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were given a three-hour introduction to positive psychology and how to apply the principles at

work. The other half did not receive the training. Afterwards, the employees who received the

training went through three evaluation periods: (1) before the training, (2) a week after the

training, and (3) four months after the training (Achor, 2011). Using the Zimet social support

scale (Zimet, Dahlem, Zimet, & Farley, 1988), Achor’s research showed happiness at work

moved from 22.96 on a 35-point scale before the exercise training, to 27.23 four months later.

Through simple exercises focusing on positive aspects of the participant’s day, results showed

an impact on their overall outlook with happiness at work. This suggests we, as individuals, can

increase our own psychological well-being as it relates to the job itself without relying on the

organization (Achor, 2011).

In addition, Lyubomirsky and Loyous (2013) created the positive-activity model, seen in

Figure 2. They used theoretical and empirical evidence to depict ways in which positive activity

improves well-being. The positive-activity model is used to explain why and how performing

positive activities make people happier. Lyubomirsky and Loyous (2013) explain that positive

activities increase positive emotions, positive thoughts, positive behaviors, and need

satisfaction. Through these behaviors and actions, well-being is enhanced in the process. They

suggest that features of positive activities and features of the person influence the degree to

which the activities improve well-being. Positive activities include: dosage (frequency and

timing), variety, sequence, and built-in social support. In contrast to Achor’s research (2011),

instead of performing a single task every day, Lyubomirsky and Loyous (2013) found that

performing five acts of kindness once a week (for 6 weeks) showed a larger increase in well-

being rather than performing five kind acts throughout the week. The possibility for seeing

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increased well-being at a larger rate with once a week activities could potentially be due to the

many cultural routines that are conducted weekly. For instance, church on Sunday for religious

people (Lyubomirsky & Loyous, 2013).

Figure 2. (Lyubomirsky & Loyous, 2013). The positive-activity model is used to help explain why and how performing positive activities make people happier. Lyubomirsky & Loyous (2013) explain that positive activities increase positive emotions, positive thoughts, positive behaviors, and need satisfaction. Through those behaviors and actions, well-being is enhanced in the process. Positive activities and features of the person serve as moderators which can influence the degree to which the activities improve well-being. Reproduced with the permission of Lyubomirsky.

Features of the person is another moderator of the positive-activity model which

includes: motivation and effort, baseline affective state, personality, social support,

demographics (Lyubomirsky & Loyous, 2013). Motivation and effort can be one of the best

predictors in improving PWB when the individual illustrates a desire to become happier. For

people to benefit from positive activity they have to be engaged in the process and believe in it

(Lyubomirsky & Loyous, 2013). In addition to motivation and effort, people’s baseline affect also

predicts how much they can benefit from positive affect. If a person has low positive affect or is

considered moderately depressed, these participants will seem to benefit the most from

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JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 20

positive activities. However, this could be a result from having more of a range to improve

rather than the exercises themselves (Lyubomirsky & Loyous, 2013). The positive-activity model

could help individuals with low positive affect as seen in Staw and Barsade’s (1993) study. This

could decrease the benefit gap (changes in salary, performance evaluations, and supervisory

support) seen between high positive affect employees and low affect employees.

The last section of the positive-activity model involves the interaction of both activity

features and person features. Labeled, person-activity fit, which is a notion that activity and

person features interact with one another to create the best outcome of increased well-being.

Studies show that the degree to which the participants report liking a positive activity results in

how often they complete that activity and how much satisfaction they receive from it

(Lyubomirsky, 2008).

Through the brief explanation of the positive-activity model we have seen another way

to increase our own well-being. The importance of this research is that as individuals, according

to the Declaration of Independence, we have the right to the pursuit of happiness. Therefore,

rather than putting the blame solely on the organization, we should as individuals take the

initiative to create a happier us. By doing so, we not only increase our well-being but also

enhance our likelihood of job satisfaction. This can ultimately result in promotions, better

interpersonal behaviors, and enhanced decision making (Staw & Barsade, 1993; Staw et al.,

1994; Wright & Staw, 1999). Most importantly, the individual can have less negative outcomes

of health (Staw & Barsade, 1993; Wright & Cropanzano, 2001). However, it remains important

for the organization to also take responsibility for the happiness of their employees; thus

reaching the best predictor of performance (Wright et al., 2007).

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Improving Happiness through Organizational Strategies

The idea of individuals increasing their own well-being is not the only portion of the

equation. For the best outcome, it has to be a combination of the individual and the

organization. According to Grant, Christianson, and Price (2007), there are four particular areas

to focus on when referring to increasing well-being of the employee through organizational

strategies: (1) Enriching Task; (2) Increasing Rewards; (3) Improving Relationships; and (4)

Enhancing Health.

Enriching Task, also known as work redesign, focuses on increasing the employee’s well-

being by increasing the employee’s engagement. Most of work redesign strategies are based off

of the job characteristics model described earlier by Hackman and Oldham (1976). The idea is

to enrich the job characteristics at hand by implementing greater skill variety, task significance,

task identity, autonomy, and feedback (Grant et al., 2007). This strategy can improve the

meaningfulness that employees experience, lead employees to feel personally responsible for

their work, and give employees clear knowledge of their work through immediate feedback

(Grant et al., 2007; Hackman & Oldham, 1976).

Increasing Rewards, also known as incentive compensation practices, focuses on

increasing well-being by creating dimensions that reward through compensation (Grant et al.,

2007). The purpose of rewards is to enhance performance by aligning the interest of the

employee to match those who own the company (Eisenhardt, 1989; Gerhart & Rynes, 2003;

Grant et al., 2007). Many researchers suggest that compensation will lead to greater job

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satisfaction. This is due to the prospect of earning higher pay and being recognized for the

effort they bring to the organization (Staw & Barsade, 1993; Staw et al. 1994).

Improving Relationships, also known as team-building practices, focuses on increasing

well-being through the changing of social dimensions within the organization. Team-building

tries to improve interpersonal relationships and cohesion in the workplace to improve

performance of the employee (Buller & Bell, 1986; Katzell & Thompson, 1990). Practices such

as; collective problem-solving, brainstorming, and goal-setting are viewed as team-building

activities. Researchers have discovered well-designed team-building can increase interpersonal

interactions throughout the organization (Thye & Lawler, 2002). As suggested by Achor (2012),

social support, also termed as interpersonal interaction, has a strong significant positive

relationship to happiness.

Lastly, Enhancing Health, also known as safety practices, focuses on increasing well-

being by changing the context of organization’s physical dimensions (Grant et al., 2007). This

strategy is used to help increase performance by decreasing the chances of injury, illness,

absenteeism, death, and other negative physical outcomes for employees (Fleming & Lander,

1999). The implementation of safety practices can increase the employee’s outcomes of

positive health (physical well-being). This in return should increase the organization’s

productivity numbers (Grant et al., 2007).

Stress Management

The key aspect when speaking of the strategies above is to focus on stress management

within the company itself. This is for the employee’s benefit as well as the overall effectiveness

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of the company’s productivity and performance. The idea of stress management is not only to

reduce absenteeism and turnover rates to create a healthier and more effective organization,

but also to increase motivation and engagement (Gilboa, Shirom, Fried, & Cooper, 2008).

Increasing motivation and engagement has been an aspect of the happy/productive worker’s

thesis for decades. More specifically, through Hackman and Oldham’s (1976) job characteristics

model. However, throughout the research and inevitable changes in organizations due to the

advancement of technology and other aspects, the ways in which a company can increase

motivation and engagement has changed. The increase of hours worked in today's society puts

an increase of stressors in the workplace (Judge & Hulin, 1993; Gilboa et al., 2008). Therefore,

before motivation and engagement strategies can be implemented, the cause of de-motivators

must be examined and acknowledged.

Gilboa et al. (2008) formed a meta-analysis based-on 169 studies, creating a sample size

of 35,265 employees. They investigated the relationship between the seven work-related

stressors with job performance: role ambiguity, role conflict, role overload, job security, work-

family conflict, environmental uncertainty, and situational constraints. Importantly, they found

a negative mean correlation between each job performance measure and each stressor

measure involved in their analysis (Gilboa et al., 2008). That is, job performance was lower

when stressors were higher. Out of the seven work-related stressors, role ambiguity and

situational constraints were seen to have the strongest negative relation to performance

(Gilboa et al., 2008).

Role ambiguity refers to the relative unpredictability of the outcome of an individual’s

behavior. In simpler terms, role ambiguity is a lack of clarity about expected behavior from a job

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or position (Gilboa et al. 2008). Situational constraints refer to the individual’s ability to

function because the individual has little control over these constraints, so these are likely to be

detrimental to the employee’s performance (Gilboa et al., 2008). Situational constraints can

include improper equipment or inadequate supplies. Situational constraints are anything within

the work environment that can constrain the employee’s performance. Role ambiguity was

examined through measures of performance as follows: general performance, self-related

performance, supervisor-rated performance, objective assessment of performance, and

qualitative assessment of performance (Gilboa et al., 2008). Whereas situational constraints

only examined general performance and supervisor-rated performance (Gilboa et al., 2008).

The importance of the information above is seen through company’s strategies and how

most organizations are based on bottom-line results (Bock, 2015). This means that they push

for productivity and profit; undermining the employee’s health and satisfaction (PWB). By using

bottom-line strategies, role ambiguity and situational constraints can create an outcome of

stress and possibly a feeling of lack of support from the organization. This results in an outcome

of unsatisfied and less productive workers (Gallup, Klein, & Jiang, 2008; Gilboa et al., 2008; Staw

& Barsade, 1993; Wright et al., 2007). Therefore, companies may actually hurt their potential of

profit by focusing on productivity rather than their employees’ well-being.

The relevance of Gilboa's et al. (2008) study in relationship to organizational approaches

is found in various studies mentioned throughout this thesis paper. Stress can affect PWB in a

negative manner with the potential to affect the employee’s job satisfaction and job

performance (Cooper & Marshall, 1976; Furnham & Shaeffer, 1984; Isaksson, 1990; Judge &

Hulin, 1993; Kelloway & Barling, 1991; Martin, 1984). As we have seen, PWB is a moderating

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factor between the two variables (Wright, Cropanzano, & Bonett, 2007). If we can manage

stress in a way that directs the organization into a motivating and more engaging environment,

we may not only see PWB and job satisfaction raise to higher levels, but also see an increase in

performance and productivity. This results in an increase in the organization’s overall bottom-

line results (Mobley, 1982; Staw & Barsade, 1993; Wright et al., 2007; Wright & Staw, 1999).

Creating an environment that is acceptable to motivating and engaging factors will increase the

likelihood of employees to feel meaning and purpose in the work they do for their organization

(Gallup et al., 2008; Grant et al., 2007; Hackman & Oldham, 1976). Grant et al. (2007) suggests

that the best approach to effectiveness of increasing well-being in the organization is through

managerial support.

Managerial Support and Refocused Attention on Employees

Managers can have either a positive or negative effect in the company when it comes to

employee’s satisfaction and happiness. In many cases, organizations tend to view managerial

candidates solely on their performance. However, it is important to add to the equation the

candidate’s ability to manage properly. The issue that presents itself when managers are not

properly trained for management roles is the possibility of the employees feeling a lack of

support and frustration within the organization’s environment (Gallup, Klein, & Jiang, 2008;

Grant et al., 2007). Lack of support from the management team can create a negative effect on

the satisfaction, PWB, and performance of the employee (Gallup et al., 2008; Grant et al.,

2007).

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In fact, in a study from Gallup et al. (2008) examining job characteristics linked to job

satisfaction, managerial support was found to significantly influence job satisfaction in both

temporary (TEs) and permanent employees (PEs). A member of the research team studied

training needs of workers from an organization (Information Systems Field) in South Florida.

The team member found that management perceived TEs as the solution to three needs: (1) To

handle peak periods of systems development that required skills in multiple areas; (2) To

provide backfill while PEs attended training, and (3) Provide specialized skills for short-term

engagements (Gallup et al., 2008). After the needs were categorized, researchers used focused

groups to interview employees (PEs and TEs) to help determine variables related to job

satisfaction. The interview lasted one half hour. Interviews focused on the training needs, work

content, and work context. These sessions were used to determine variables to include in the

subsequent interview (Gallup et al., 2008). To test the relationship between employee’s work

content and context variables to job satisfaction, the researchers used a regression analysis.

Results showed temporary employees having a moderate relationship between managerial

support and job satisfaction; whereas permanent employees were slightly lower but still seeing

a significant positive relationship. Gallup et al. (2008) helps guide us into Grant’s et. al. (2007)

recommendations for increasing managerial attention and noticing managers' impact on

employee’s well-being.

According to Grant et al. (2007), there are two broad options an organization can use to

help with managerial support; (1) influence managerial attention by encouraging managers to

notice the impact of their actions on employee’s well-being, and (2) influence managerial

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motivation by encouraging managers to value the impact of their actions on the employee’s

well-being.

Managerial Attention. Strategies for increasing well-being of the employee often have

tradeoff implications (Grant et al., 2007). Tradeoffs occur when a strategy to increase one form

of well-being has a negative counteraction to another form of well-being. For instance, a

manager who is concerned with physical safety may focus on the implications related to

physical well-being; overlooking the potential negative effects it could have on one’s PWB

(Grant et al., 2007). A strategy to help decrease the negative effects on PWB is to involve the

employees in the decision making of the physical health safety policies. By doing so, the policies

implemented are approved by the employees and are more likely to be appropriately accepted

in the organization. Also, lowering the possibility of tradeoffs to occur (Grant et al., 2007). The

purpose for mentioning tradeoffs is to form an understanding of how managerial attention can

be enhanced when implementing strategies. As managers, it is important to think more broadly

about who is being affected and how (Heath et. al., 1998).

According to Molinsky and Margolis (2005), companies that train managers to consider

the consequences of who will be affected by their actions and how these constituents will be

affected can improve the likelihood that managerial practices will have a positive effect on

employee’s well-being (Grant et al., 2007). Therefore, the selection of managers needs to focus

on all aspects of the job. This includes the knowledge of proper training for particular

organizations and positions. Furthermore, managers who are high in integrated complexity

(tend to think in shades of gray, rather than strictly black and white) are able to recognize

tradeoffs, inconsistencies, and contradictions in their practices more often (Tetlock et al., 1993).

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In addition to thinking more broadly, managerial attention can be impacted by thinking

in relation to long-term rather than just short-term goals. As mentioned in Grant et al. (2007),

organizations can achieve this goal by training managers to consider long-term horizons and

select managers who are more oriented toward future thinking. Training and selecting

managers who think and practice long-term strategies can increase the likelihood of managerial

practices that are beneficial to employee’s well-being (Bluedorn & Standifer, 2006;

Mosakowski, 2000). Asking managers to think about past events is a technique that helps

broaden their outlook for what could happen in the future. Companies use this technique to

encourage managers to think about the long-term impacts of their practices; thus lowering the

risk of undermining tradeoffs from occurring (Bluedorn & Standifer, 2006).

The third aspect of managerial attention includes action from the manager to collect

more information on employees’ attitudes about current practices (Grant et al., 2007). For

instance, if the current dissatisfaction with pay is rooted in feeling devalued, a new

compensation plan may not be the best strategy for increasing the employee's well-being. If the

employee feels devalued, an increase in pay will not necessarily help their satisfaction in the

organization. The implementation of practices to improve the organization as well as the

employee’s well-being needs to focus on the actual issues causing the problems. The

organization can help improve managerial practices by training and rewarding managers who

actively seek feedback on their employee’s attitudes and opinions (Ashford, Blatt, &

VandeWalle, 2003). Regular attitude surveys can be administered by the organization to benefit

employee's well-being and to enhance manager’s engagement. However, for this strategy to

operate properly, managers have to act on the feedback they receive. Otherwise, employees

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are likely to react with frustration rather than appreciating the opportunity to express their

opinions (Cumming & Worley, 2005; Huselid, 1995).

The combination of these three aspects to increase managerial support will help reduce

the possibility of tradeoffs occurring when implementing new strategies (Grant et al., 2007).

However, if tradeoffs do present themselves, the managerial strategy to collect more

information on their employees’ attitudes will increase the likelihood of finding the problem

early. The knowledge of the tradeoffs occurring can be handled by the strategy of the manager

to, not only fix the issue for the short-term, but also think ahead for the long-term impact in the

future. This creates an increase in the employee’s well-being; which in return has a positive

effect on job satisfaction and performance of the company (Grant et al., 2008; Staw & Barsade,

1993; Staw et al. 1994; Wright et al., 2007).

Managerial Motivation. According to Grant et al. (2007) and Kunda (1990), there are

many motivational biases related to how managers prioritize certain actions, outcomes, and

interpretations. These factors may have an influence that prevent managers from having

concerns about multiple consequences of practices they design and implement (Grant et al.,

2007; Kunda, 1990). To reduce bias, there are two action steps to help with selecting and

training managers; (1) Broaden the range of outcomes important in the organization, and (2) Be

willing to reconsider practices (Grant et al., 2007). This increases the chance that manager’s

actions will place more value on the employee’s well-being.

Broaden the range of outcomes refers to managerial practices that go beyond just

economic and rational outcomes by promoting human relations that increase well-being. For

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example, instead of managers implementing a safety insurance policy to maximize profits, they

should implement the insurance policy with the goal to increase the employee’s well-being

(Grant et al., 2007). The idea is to have less focus on the profit and adjust the focus to increase

the employee’s well-being. As we have learned through Staw and Barsade (1993), Staw et al.

(1994), Wright et al. (2007), Wright and Staw (1999), and Mobley (1982) studies, if the

employee’s well-being is high, the performance is more likely to increase; while the turnover

and absenteeism rates should experience a decrease. As a result of the findings mentioned in

this paper, the attempt to increase well-being is seen as a win-win strategy. The employee is

happier and healthier overall compared to an employee with low PWB (Gilboa et al., 2008;

Mobley, 1982). The organization’s productivity and bottom-line results should see an increase

in every aspect (Wright et al., 2007; Wright & Staw, 1999).

The findings of the research bring us to the second portion of managerial motivation;

the willingness to reconsider practices. If we find that the results show a happy worker does

actually make a better worker, why not reconsider how organizations operate? Staw and Ross

(1989) suggest that managers (and organizations alike) tend to justify their initial choices.

Managers are likely to find ways to justify their policies even when the feedback from the

employees is seen to be negative (Grant et al., 2007). Due to this behavior from managers,

commitment to an unfavorable practice can result in negative consequences for the well-being

of the employee. However, when organizations reconsider and adjust focus on proper training

of managers to engage more thorough reasoning, reevaluate their decisions, and discount sunk

costs, it can potentially enhance the likelihood of managerial practices to be beneficial to the

employee's well-being (Nisbett, Fong, Lehman, & Cheng, 1987). Therefore, reconsidering

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practices not only helps correct the justification of manager’s actions, but also gives the

employee an opportunity to have a voice and be heard. This enhances the employee’s sense of

value in the company (Bock, 2015; Grant et al., 2007).

In summary, managerial attention and motivational strategies help enrich task, increase

rewards, improve relationships, and enhance health while keeping in consideration the

potential tradeoff effects certain policies may have on one’s PWB (Grant et al., 2007). The

proper selection and training of managers will help decrease the stress levels within the

organization and enhance the employee’s well-being (Gilboa et al., 2008). By enhancing the

well-being of employees, the organization’s productivity and bottom-line results will increase

according to Wright et al. (2007). Therefore, the organization should take more of a

responsibility on the employee’s psychological well-being by reconsidering past strategies to

enhance their overall job satisfaction and job performance (Achor, 2012; Gallup et al., 2008;

Grant et al., 2007; Lyubomirsky & Loyous, 2013; Staw & Barsade, 1993; Wright et al., 2007;

Wright & Staw, 1999).

Organizational Approaches for an Effective Work Environment

Results throughout this thesis paper could have implications for the betterment of

individuals and managerial practices in the organization; organizations may want to pay more

attention to the well-being of their employees. According to Ilgen (1999), employee-focused,

positive psychological-based work interventions take 3 forms: composition, training, and

situational engineering.

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Composition. Composition refers to the focus on selecting and placing individuals into

appropriate positions. When employees are placed into positions that are appropriately skilled

for them, their PWB will be higher than someone who does not possess the skills and

knowledge required (Hackman & Oldham, 1976; Ilgen, 1993). When an employee is placed in a

position unrelated to, or above their skill knowledge, they often feel overwhelmed with the

tasks of the job (Noe, Hollenbeck, Gerhart, & Wright, 2014). In addition, companies tend to take

more time training inexperienced workers who are not skilled. This results in a higher deficit for

the company (Noe et al., 2014).

Training. Training is an important aspect of the organization’s work intervention. It

emphasizes assisting employees to better fit their jobs (Ilgen, 1999; Wright et al., 2007). As

mentioned in the JCM (Hackman & Oldham, 1976), knowledge and skill can have an impact on

the employee’s psychological state; serving as a moderator between motivation and

satisfaction within the job. This suggests that, if conducted appropriately, a combination of

composition and training can increase the chance of employee satisfaction (Hackman &

Oldham, 1976; Wright et al., 2007). Therefore, the organization not only needs to place the

appropriate workers in the appropriate positions, but they also need to take the time to train

them properly for the best outcome in their company. Training, if appropriate, can be viewed as

a way to initiate the organization’s mission and goals upfront (Noe et al., 2014). It is seen as a

way to let the employee know what the organization expects from their workers.

Mission. The idea of a mission is to give the employee a purpose, because most people

want to be part of a bigger picture (Bock, 2015). The mission statement describes what the

company does and why it exists. Employees who believe in the mission will be drawn to that

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company, creating a selection effect. It will keep them driven and motivated thus enhancing

engagement because they believe in what they are working for (Bock, 2015). Hackman and

Oldham’s (1976) Job Characteristics model states that purpose is a critical psychological state

that can have a positive effect on one’s job satisfaction. An appropriately executed mission

statement enhances the work environment. It aligns the employees purpose with the

organization’s goals. (Grant et al., 2007). A combination of mission, composition, and training

are ways an organization can lower stress, further enhance PWB, job satisfaction, productivity

and engagement (Bock, 2015; Grant et al., 2007, Noe et al., 2014).

Situational Engineering. Training and composition relates more to the organization’s

practiced strategies and their effects on employee outcomes of knowledge and skill; whereas

situational engineering refers to the work environment fitting the needs of the employees

(Wright et al., 2007). Therefore, the company must supply the appropriate resources for

implementing strategies and setting new goals to increase the well-being of the worker (Wright

et al., 2007). For instance, if a mobile home production company expects their workers to finish

9 houses a day, the organization must have enough materials to complete their expected goals.

Along with materials, they should have proper functioning tools for their employees to

complete the task with high quality and in a timely manner. If an organization does not give the

employees what is needed to complete the task, the employee is likely to experience higher

stress levels (Gilboa et al., 2008). This can cause a negative impact on the employee’s overall

health and psychological well-being. As a result, absenteeism increases, productivity decreases,

and the organization’s bottom-line results are negatively impacted (Gallup et al., 2008; Grant et

al., 2007; Park & Shaw, 2013; Staw & Barsade, 1993; Wright et al., 2007; Wright & Staw, 1999).

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Transparency. Transparency is a practice by organizations to create an open-source

community (Bock, 2015). This allows them to minimize the divide between employees,

managers, and owners alike. This approach reiterates many practices mentioned through

managerial attention and motivation. Transparency gives every employee knowledge of the

company’s quarterly goals and weekly status reports. The information is interpreted directly by

the Board of Directors meetings (Bock, 2015). Giving the employee more context about the

company enables them to work more effectively. Instead of working just to get compensated,

they are working for a mission. The key aspect of transparency is to make every employee feel

involved so that their engagement and purpose increase (Bock, 2015; Hackman & Oldham,

1976; Ilgen, 1999; Wright et al. 2007).

Voice. Voice refers to allowing employees to translate their beliefs and knowledge into

action (Bock, 2015). This gives the employee a chance to be heard at any level in the

organization. There are several ways organizations can give employees voice; direct emails to

any leader of the company, various sites provided by the company, department meetings, and a

wide range of surveys (Bock, 2015). The idea of voice works similarly to the managerial practice

of collecting more information from employees. For voice to work properly, organizations have

to act on the feedback they receive. A combined effort from transparency and voice can create

an environment fostering to creativity, commitment, and innovation (Bock, 2015). In this

environment the needs of the employees are met through the proper administration of

situational engineering (Bock, 2015; Grant et al., 2007). Intervention strategies mentioned

above express how individuals and organizations can work together for the betterment of both

sides.

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Ethical Issues

According to Wright and Cropanzano (2000), if PWB is used to evaluate current and

future employees in an organization, it may constitute significant ethical and practical dilemmas

for organizations and individuals. Moreover, if the various measures of PWB are incorrectly

used, moral concerns could arise for the management team that aid in the selection and

training processes as well as developmental decisions. For instance, if a potential candidate for

a position is not selected because their PWB is considered insufficient, that candidate could

become further saddened or depressed. In turn, this could make that individual less employable

in the future (Wright & Cropanzano, 2000). In addition, the experimental research could have

potential ethical issues if the data is not delivered to all the participants after the research is

conducted. It would be considered unethical to keep one group of participants in the dark from

data that could help improve their health. Therefore, it is important for the researchers to

debrief the people involved for the benefit of their health and wellness.

Conclusion

Well-designed, longitudinal, and meta-analyses studies provide evidence for the

happy/productive worker thesis when happiness is measured by psychological well-being.

Wright et al. (2007) found that PWB was seen as a moderating factor between job satisfaction

and job performance. Staw et al. (1994) showed results that positive dispositional affect

increased the employee’s chance of changes in salary, performance evaluations, and

supervisory support. Therefore, the individual’s efforts to increase their own well-being is

encouraged to enhance their job satisfaction. In addition, the organization is encouraged to

take more of a responsibility in their employee’s satisfaction and psychological well-being. This

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paper presents evidence of the negative effects that low PWB and job satisfaction can have on

the individual’s health and happiness. Gilboa et al. (2008), shows how stressors of the job can

harm the employee’s health. Bock (2015) and Grant et al. (2007) provide ways that

organizations can improve their employee’s well-being. Managerial practices and interventions

can create an environment that fosters employee’s well-being and satisfaction (Bock, 2015;

Gallup et al., 2008; Grant et al, 2007). Employees with higher PWB and job satisfaction are

beneficial to the performance of the organization (Wright et al., 2007). Therefore, organizations

should be held responsible for their employee’s happiness while individuals should be held

accountable for their own psychological well-being. A combination of these efforts will promote

an environment of high psychological well-being and overall performance.

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