Positive Organizational Behavior

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Chapter 7

• Positive Organizational Behavior

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Learning Objectives

• Frame the chapter in terms of the positive
  psychology movement.
• Discuss the theory, research, and application of
  optimism, hope, happiness/subjective well-being
  (SWB), and resiliency.
• Present the theory, research, and application of
  emotional intelligence (EI).
• Explain the specific roles that emotion and
  intelligence play in emotional intelligence.
• Present the theory, research, and application of
  self-efficacy.
• Give particular attention to the processes,
  sources, and applications of self-efficacy.

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POSITIVE ORGANIZATIONAL BEHAVIOR (POB)

• APPEAL OF POPULAR BOOKS (Blanchard, Covey,
  Johnson)
• But, no theory, no research, and no performance
  outcomes
• GALLUPS POSITIVE, STRENGTHS APPROACH
• Don Cliftons Positivity and Emphasis on
  Strengths
• Books NDYS, 12 Elements
• Harter, Schmidt Hayes JAP article
• POSITIVE PSYCHOLOGY MOVEMENT
• Background
• Seligman, Diener, Peterson, et al.

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Positive Psychology

• Positive psychology is concerned with optimal
  human functioning instead of pathological human
  functioning.
• 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,
  family life, and society at large, but,
  importantly, also for organizational life and
  behavior.

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Positive Psych Research

• 20 years of experiments by Isen find people who
  are positive/feel good, their thinking is more
• - creative - flexible
• - integrative - open to information
• Positivity may be hedonistic (enjoy the moment)
  but at the same time, research shows building
  longer-term resources
• - physical - social
• - intellectual - psychological

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Positive Psych Research

• Positivity does more than feeling good in the
  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 positivity

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POB

• POB DEFINED The study and application of
  positively oriented human resource strengths and
  psychological capacities that can be measured,
  developed and effectively managed for performance
  improvement in todays 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

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Positive Organizational Behavior States

• Several important positive psychology states are
  emerging to help in both the better understanding
  and effective application of organizational
  behavior
• Optimism
• Resilience
• Hope
• Confidence
• Emotional Intelligence
• Psychological Well-Being
• Positive Psychological Capital (PsyCap)

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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/Social
• Capital
• Core Factor of POB
• Valid PsyCap Measure
• Return on Investment/
• Development in PsyCap
• For Competitive Advantage

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Optimism- 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 selfish slimeballs)

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Optimism- attribution of successes

• 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 selfish slimeballs)

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Optimism
(Continued)

• The Dimensions of Optimism
• Optimism as Human Nature
• Optimism as an Individual Difference
• Some Unresolved Optimism Issues

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Hope and Happiness

• Hope
• Agentic Capacity
• Pathways Thinking
• No pathways to accomplish goal, no subsequent
  hope the goal will be accomplished?

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Hope and Happiness
(Continued)

• Happiness or Subjective Well-Being (SWB)
• The Background on SWB
• Temperament and Personality Dispositions
• The Role of Goals
• Across Cultures ? Job Satisfaction

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Emotional Intelligence

• The Role of Emotion
• Emotional Processing
• Personality Effects
• Mood Effects
• Types of Emotions- Primary
• Emotional Categories and Continuum

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Emotional Intelligence
(Continued)

• The Role of Intelligence
• Nature versus Nurture Intelligence
• Recognition of Multiple Intelligences
• Intelligence as Cognitive Mental Ability

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Emotional Intelligence
(Continued)

• Emotional Intelligence in the Workplace
• Golemans Approach to EI in the Workplace
• Initial Supporting Evidence
• Application to Leadership

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Self-Efficacy

• Its hard to lead a cavalry if you think you
  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

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Self-Efficacy
(Continued)

• Sources of Self-Efficacy
• Implications for Self-Efficacy in the Workplace
• Selection of Human Resources
• Training and Development
• Other Applications
• Meta-Analysis

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Self-Efficacy
(Continued)
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Self-Efficacy
(Continued)
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Resilience

• BEYOND SIMPLE ADAPTION AND COPING, IS THE
  POSITIVE CAPACITY TO REBOUND, TO BOUNCE BACK
  FROM ADVERSITY, OR EVEN CHANGE.
• AT FIRST THOUGHT EXTRAORDINARY, A SPECIAL GIFT,
  NOW KNOWN TO BE ORDINARY, NEEDS TO BE UNLEASHED.
• AT FIRST THOUGHT HARDWIRED, DISPOSITIONAL, NOW
  RECOGNIZED CAN BE LEARNED, STATE-LIKE.

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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. Not really creativity,
  concentration camp inmates who pocketed pieces of
  string or wire)
• DIFFERS FROM OTHER POSITIVE CAPACITIES
• - smaller domain
• - reactive rather than proactive
• - like hope pathways, but not will power
• It is not what happens to you that matters, but
  how you take it.

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Research on POB

• Antecedents
• Outcomes
• Upcoming Research

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Studies 1 and 2

• Measurement
• Relation to Performance and Satisfaction
• Development
• Development for Performance Impact

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Executive Summary

• Research at Central Washington University and The
  University of Nebraska-Lincoln study the role
  that positive psychological capacities play in
  authentic leadership and human resource
  development/performance.
• We call these positive capacities Psychological
  Capital or simply PsyCap because they represent
  individual (and team) resources that can be
  invested in and developed for increased
  performance.

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• Two main studies indicated that PsyCap
• Can be reliably and validly measured
• Developed using relatively short two-hour
  micro-interventions
• Have a positive impact on performance and
  satisfaction
• Utility analysis of these results indicated
• Substantial return on development (ROD)
• Gained from the investment in and development of
  PsyCap

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Sample Items from the PsyCap Questionnaire
(PCQ)-24

• Below are statements about you with which you may
  agree or disagree. Using the following scales,
  indicate your level of agreement or disagreement
  at the present time.
• (1 Strongly disagree, 2 disagree, 3
  somewhat disagree, 4 somewhat agree, 5
  agree, 6 strongly agree)

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• I feel confident helping to set targets/goals in
  my work area.
• I feel confident presenting information to a
  group of colleagues.
• There are lots of ways around any problem.
• I can think of many ways to reach my current work
  goals.
• When I have a setback at work, I have trouble
  recovering from it and moving on.
• I usually take stressful things at work in
  stride.
• When things are uncertain for me at work I
  usually expect the best.
• Im optimistic about what will happen to me in
  the future as it pertains to work.

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Key Initial Research Findings on PsyCap

• Psychological Capital (PsyCap) measurement was
  found to be reliable and valid.
• PsyCap seems to have a significant positive
  relationship with performance and satisfaction.
• PsyCap seems to be a core capacity that is
  greater than the sum of its parts (hope,
  optimism, efficacy, and resiliency), i.e., PsyCap
  appears to be synergistic.

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• It was found that PsyCap can be developed through
  a short, highly focused training session.
• Increases in training participants PsyCap leads
  to increases in their performance.
• Both the development and performance of those
  with relatively low levels of initial PsyCap are
  more greatly affected by the PsyCap training
  intervention.
• Investment in the development of PsyCap can lead
  to a very high return.

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Implications for Practical Application of PsyCap

• PsyCap can be developed in human resources
  through a short training intervention.
• Enhancing the levels of human resources PsyCap
  leads to increased performance.
• Investing in and developing PsyCap can result in
  very high returns.

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• PsyCap of groups/teams may determine how agile
  and adaptable groups/teams are in challenging
  contexts.
• PsyCap and other human capital dimensions in
  combination can help account for the human
  intangibles in organizations that contribute to
  sustainable, veritable performance.
• PsyCap may be an important input and outcome of
  authentic leadership development (ALD).

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PsyCap DevelopmentStudy 3

• ANZ- Australia Financial Firm

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ANZ PsyCap Results from February 2007 Pilot
Test James B. Avey
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• 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 performance and 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.

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• 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.

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• 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 and decrease in referrals.
• For simple math, lets say that referrals were
  worth 10,000,000 over the course of a year for
  all of ANZ. (e.g., all closed referrals for one
  year led to an overall financial increase of
  10M)
• This indicated that PsyCap accounts for 900,000
  per year.

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• Estimated Return on Development (ROD) for
  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.

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• Summary and Next Steps for PsyCap
• Results from the pilot test suggest that
  development of PsyCap may enhance performance and
  referrals rates within ANZ.
• The PsyCap training is currently preparing to
  launch within ANZ.

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Study 4Avey Dissertation

• Boeing Leadership Experiment

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Boeing- Leader Psychological Capital

• 117 Aeronautical, Mechanical and Electrical
  Engineers in Commercial Airplane Manufacturing
• 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 X
Leader Message
Solutions
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Leader PsyCap, Employee PsyCap and Attitudes
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Leader PsyCap and Employee Performance
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Leaders..Drive Conditions.that Drive Outcomes
PsyCap Directed Toward Team
PsyCap in the Task
Performance Outcomes
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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 are able to make the best of
  things that happen.

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Positivity Profile

• (a.k.a. Hamburger Model, Ben-Shahar, 2007)
• The key roles of the present benefits
  (detriments) versus (and) future benefits
  (detriments)

Future Benefit
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)
Rat Racer Sacrifice present for the future.
Never ending arrival fallacy. (Vegetarian
Burger)
Present Detriment
Present Benefit
Nihilist Neither enjoys present nor has sense of
future purpose. Learned helplessness. (Worst
Burger)
Hedonist Seeks pleasure of present. Lacks
purpose, unfulfilled. Floating moment
fallacy. (Junk-food Burger)
Detriment in Future
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Practical Guidelines for Managing Self and Others
PsyCap

• Self-discipline usually insufficient (New Years
  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
  performing them at very specific times.
• Initiating rituals difficult, maintaining rituals
  easy (top athletes to brushing your teeth).

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Introduce and follow RITUALS Continued

• About the same time, at the end of each day, jot
  down in your PsyCap 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 in your work
  relationships and 6 positives to 1 negative in
  your personal relationships (Fredrickson
  Losada, 2005).
• At the end of each work-week, list two or more
  successes/wins.
• At the end of each year, assess yourself on each
  of the quadrants of the Positivity Profile (give
  examples of each burger you have tasted/eaten).
  
• Repeats are OK keeps positivity and efficacy
  fresh and contagious.
• At least twice a year, write a gratitude letter
  and/or make a gratitude visit to someone you
  really care about (more than thank-you note).

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• Besides rituals, set GOALS
• Goals make a commitment in words, in present that
  have the power 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.
• Edisons public announcement by Dec. 31, 1879
  have light.
• Kennedys 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 us try to react to it.
• Research indicates goal attainment (or not) will
  have only short-term impact.

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• The key is not so much on attaining goals, but
  having them.
• The journey, striving for goals, contributes to
  positivity.
• Goals liberate us so we can enjoy the present and
  have meaningful future (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
  than status/financial gain).
• Business goals because of excitement/interest
  (rather than status/financial gain).
• Distinguish Can dowant to doreally want to
  doreally, really want to do.
• Can dos possible goals (constraints make
  necessary to do).
• Really, really want to do PsyCap goals (those
  with personal passion).

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• Such PsyCap goals helps keep positive and true to
  oneself.
• Authentic leadership
• More effective and successful
• Every three years, set two or more challenging,
  long-term goals for your career, toward your
  calling (set at level that you enjoy the journey,
  not that you necessarily attain 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
  action plans (dates, actual activities).
• We are developing and managing positive PsyCap
  when we derive pleasure and fun from the journey
  and find meaning and purpose in our work and
  personal lives. It is really that simple if we
  just do it!

Gallup Leadership Institute
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Exercises for Developing PsyCap

• 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 at least daily.
• Builds PsyCap by reinforcing and highlighting
• Accomplishments
• Strengths
• Positive Future Expectations