Creativity-based well-being ofemployees as a basis of future

economy and societySimona Sarotar Zizek, Sonja Treven and Matjaz Mulej

Faculty of Economics and Business, University of Maribor,Maribor, Slovenia and

IRDO Institute for Development of Social Responsibility, Maribor, Slovenia

Abstract

Purpose – A new non-technological innovation to manage socio-economic crises and to build neweconomy and society. Economic theory that is based on fictitious market cannot manage buildingthem, because it is one-sided and fails; the model suggests solving the crises and building neweconomy and society based on human requisite holism (HRH), creativity-based well-being (CBWB) andsocial responsibility (SR). The paper aims to discuss these issues.

Design/methodology/approach – Qualitative economic analysis using HRH, CBWB, SR anddialectical systems theory (DST) is applied.

Findings – The current global socio-economic/environmental crisis reflects decision-makers’one-sidedness and resulting oversights. HRH and SR support both holism and honesty and help tocombat the negative impact of decision-makers’ behaviour. SR can support holism and honesty better,if well-being is extended to CBWB, and if SR is upgraded with increasing CBWB, not welfare alone.Both SR and CBWB support HRH. The innovative synergy of CBWB and SR enables the solution ofcrises and the new economy and society beyond the currently practiced fictitious market. DST backsHRH, CBWB and SR, an ethic of interdependence and requisite holism (RH) approach, enablingrequisite wholeness of outcomes.

Research limitations/implications – Empirical data are from Slovene enterprises.

Practical implications – The RH approach to managing socio-economic crises helps practitionersto rebuild modern society.

Originality/value – Available literature offers no similar concept.

Keywords Well-being, Social responsibility, (Human) requisite holism, Creativity-based well-being,Dialectical systems theory, Socio-economic crisis

Paper type Research paper

1. The selected problem and aspect of treatmentWithout requisite holism (RH) one makes too many oversights and resulting mistakesto prosper and solve the current world-wide socio-economic crisis caused byneoliberalism that has supported monopolies rather than the real market for decades.The prevailing practice of commanding rather than cooperating management styletoday prevents RH enabling systemic, i.e. requisitely holistic, behaviour replacingone-sidedness (Mulej et al., 2014). Creative and innovative employees (“knowledgeworkers”) are increasingly more numerous (Florida, 2005), interdependent due to theirnarrow specialization, and less replaceable with tools than physical workers; thisrequires motivation and education for creativity and cooperation. Hence, humanresource management (HRM) must attain RH to dig creativity and make co-workersinnovative; preconditions include employees’ well-being (WB) (Zadel, 2013), developed

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Received 11 July 2013Revised 4 December 2013Accepted 17 January 2014

KybernetesVol. 43 No. 2, 2014pp. 210-227q Emerald Group Publishing Limited0368-492XDOI 10.1108/K-07-2013-0150

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into creativity-based well-being (CBWB), replacing laziness. Cooperative rather thanone-sidedly commanding management is needed (Mulej et al., 2013). For managersan innovation of mind-set from “persecution” of bad work (“traditional psychology”)into the “validation” and “promotion” of good work (“positive psychology”) matters.Traditional psychology focused on the negative events, properties and consequences,therefore on problems, decreasing optimism and its positive effects on employees andorganizational performance. Positive psychology offers new opportunities. It fortifiesStafford Beer’s “viable systems model” exposing the upper organizational hierarchylevels’ role to provide information and enable creative work and cooperation ofemployees who are much more than living tools under one-way command, usual inarmy and old times (Mulej et al., 2013).

Hypothesis under consideration: if well-being (WB) is CBWB, employees’ WBincreases their physical, psychological, spiritual, and social health; then employees’WB supports the success of their employers.

The applied methodology includes dialectical systems theory (DST) and fieldresearch by survey in Slovene companies except the micro ones.

2. Positive psychology and psychological WBPositive psychology is included in policies by responsible enterprise for developingCBWB. CBWB has subjective and objective dimensions. Generally, WB can bemeasured at individual, organizational, or societal levels; it covers elements of lifesatisfaction that cannot be defined, explained or primarily influenced by economicgrowth (SDRN, 2005, p. 2; summarized after Mulej et al., 2014). WB is complex and itsmeaning remains contested; key distinctions are between:

. hedonic and eudemonic WB; and

. objective and subjective measures (SDRN, 2005, p. 4; Mulej et al., 2014).

CBWB differs from WB (Sarotar Zizek, 2012). Authors define WB differently, whileCBWB is seldom mentioned.

WB includes both objective descriptors and subjective assessments of the physical,material, social and emotional WB, and adds the scope of personal developmentand purposeful activity, all weighed with selected values (Felce and Perry, 1995;summarized in Sarotar Zizek et al., 2011). WB is a positive and sustainable condition,allowing humans, groups or nations to thrive and flourish (Huppert et al., 2005). CBWBseems to be addressed indirectly.

The WB paradigm is associated with empirical research within two philosophies:

(1) in hedonism, WB unites pleasure and happiness; and

(2) in eudemonism, WB reaches beyond happiness to the actualization of humanpotential.

Hence, eudemonism is closer to Beer’s viable system model and CBWB.Experiences show that WB is a multidimensional phenomenon including aspects

of hedonistic and eudemonistic concepts. Ryan and Deci (2001, p. 148) discussedauthors with similar findings.

Compton et al. (1996) investigated connections between 18 indicators of WB,identifying two factors:

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(1) subjective WB; and

(2) personal growth.

These two factors were only modestly related. Their survey indicated that thehedonistic and eudemonic views both overlap and differ. Results also revealed thatmeasuring in distinctive ways can improve understanding of WB. King and Napa(1998) asked laymen to identify characteristics constituting good life: they includenotions such as happiness and meaning. McGregor and Little (1998) analysed manymental indicators and highlighted two factors: happiness and the fullness of meaning.People who pursue personal goals and happiness search for meaning and integrity.

Although both theories overlap, the most interesting outcomes result from findings,resulting from differences between the theories rather than from the overlappingattributes.

Musek (2008, p. 140) combined all three models (subjective emotional WB,psychological WB and self-determination) into a general factor of psychological WB.Musek’s model includes hedonistic and eudemonic parts of WB in the context ofbroader factors (Musek, 2008, p. 152).

We developed further our CBWB model and also tested our attempt empirically(Sarotar Zizek, 2012). Essential attributes are discussed below.

3. Effects of WB and its measurement3.1 Measurement and thresholdTo measure psychological WB, we designed a new measurement scale, including theselective elements/claims of measurement scales, which were designed and presentedby authors for subjective emotional WB, psychological WB and self-determination(Sarotar Zizek, 2012 and references therein). There is no room for details here.

In Mulej et al. (2014) we presented empirical findings of several researchers: whenindividual’s income reaches a threshold, it becomes less relevant for further growth ofWB; interpersonal relations and satisfaction at work matter more. We also summarizedsome of Diener and Seligman’s (2004, p. 1) major findings, including:

. Non-economic indicators of social WB matter, especially social capital, democraticmanagement and human rights, impacting satisfaction and profitability at work.

. The expected (economic) results more often result from WB than vice versa.

. People with higher WB scale have more income and more success at work thanthose with lower WB.

. People with more WB have better social relations.

. Happy people are more likely to get married, stay married and have a successfulmarriage.

. Such people are healthier and live longer.

. A high WB is not precious only in its own context: it is economically useful.

3.2 Impacts of CBWB on employeesEmployees’ CBWB could soon replace the traditional measuring of business success;employees with high CBWB are more productive, efficient and loyal to theirorganization than employees with lower CBWB. Such studies clarify ratings of human

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CBWB in particular areas of life including job. Continuous positive experiences withina job allow humans to establish positive relationships with others; this impactspositively the quality of other works.

Studies also emphasize the individual purpose in life; consequently motivation,strengthening the role and rewards lead to personal growth (Garg and Rastogi, 2009,p. 43). CBWB seems to be meant here indirectly.

3.2.1 Impacts of CBWB on employees’ health. Wright (2003) researched therelationship between employee’s WB and human cardiovascular health: both physicaland psychological WB increase efficiency. Human psychological WB is best viewed inpsychological health; psychologically healthy people are able to optimally balancetheir negative and positive emotions.

Wright’s research is based on measurements of cardiovascular health for efficiency;he detected that WB predicts cardiovascular health, as shown by measurement of pulsefrequency. Cardiovascular diseases imply high cost for people and organizations byaffecting every third American. The American Heart Association’s statistics showthe high cost of cardiovascular diseases – Wright ascribes 60 percent or $259 billion todirect medical costs and 40 percent or $173 billion to lost productivity (www.ehstoday.com). This reference indicates no differences between WB and CBWB.

3.2.2 Other impacts of employees’ psychological WB. WB refers to employees’physical and mental health:

Benefits and facilities that employers might provide include: a pension scheme; medical care;a healthy and safe working environment; help with long-term sickness; assistance withfamily matters, such as bereavement, creche facilities, paternal leave for fathers, help withschooling and transport for families of employees who are moved around geographically;counselling; employee support schemes, e.g. an internal Occupational Support Scheme (OSS),or an Employee Assistance Programme (EAP); staff restaurants; social and recreationalfacilities; preparation for redundancy and retirement; advisory policies for contemporarywelfare issues, such as HIV/AIDS and sexual health generally, alcohol and drug abuse, andpolicies such as those on smoking in the workplace (Currie, 2001, pp. 2-3; summarized afterMulej et al., 2014).

Findings expose the fact that employees should work in a stress-free and physicallysafe environment, to be creative; some organizations achieve this situation moreeasily than others. But this view is narrow: humans are multi-layered, not onlyprofessional entities. In synergies, not only per parts, humans are: (1) physical, (2)mental, (3) social, (4) spiritual, and (5) economic entities, marked by requisitely,though not absolutely, holistic pattern of relatively permanent characteristics, due towhich (6) individuals differ from each other, and also as (7) specialized professionals(Sarotar Zizek, 2012 and references therein). Companies that prosper withoutCBWB of employees, do not prosper long (Collins and Porras, 1994; Collins, 2001;Florida, 2002).

Therefore, we must mention Nelson et al.’s (2008, p. 51; summarized after Mulej et al.,2014) finding: WB, in its broadest and most comprehensive sense, recalls Aristotle’seudemonia, i.e. realisation of one’s true potential, as an overarching indicator of WBand happiness and its causes. WB reaches beyond absence of the negative; instead,it reflects the positive (Mulej et al., 2014). The resulting positive outcomes enablepositive outcomes at the work, team, and organizational levels (Nelson et al., 2008, p. 57;summarized after Mulej et al., 2014). This is reminiscent of CBWB.

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3.3 The impacts of CBWB on organizationsResearchers increasingly explore WB’s impacts (Currie, 2001; summarized afterBaptiste, 2008, p. 284). In the modern world, characterized by inter-dependence andcomplexity, pressures negatively impact employees’ health and WB and causes highcosts due to absence from work, in both private and public organizations (Departmentfor Work and Pensions, 2006). Baptiste (2008, p. 285) concludes that employees’ WB isimpacted especially by: increasing age of workers, people’s need to work longer hoursto earn enough, even after retirement. WB is, additionally, impacted by newtechnologies, increasing the speed of change. Employment of both parents in a family,endangering balance between work, family and life satisfaction, also influences WB.WB impacts the working environment, its requirements, work organization, etc.CBWB impacts it more positively than laziness-based WB.

Therefore, the interest in employees’ CBWB within their workplace, both inbusiness and in governmental organizations, is increasing. Because healthy and happyworkers matter for their influence on the organizations’ existence and development,and for the entire society’s development, decision-makers must ensure conditionswhich support employees’ safe, happy and healthy working lives. Organizations thathave invested in the vision-based healthy work and CBWB as assets for the future,today benefit (Sarotar Zizek, 2012).

WB in the workplace is increasingly recognised as a support to organizationaleffectiveness (Tehrani et al., 2007). Department for Work and Pensions (2005) sees thereason for this: healthy employees, who feel well, are essential preconditions fororganizational success and viability. More and more employers recognize the “benefitsof wellness policies”: satisfied employees are also healthy colleagues (Tehrani et al.,2007). Overcoming of health problems of workers belongs to good employmentpractices, effective return to work, rehabilitation, and proactive support to employersproviding employees’ WB. Again, CBWB is crucial, in economic terms and interests ofboth employers and employees.

The previous psychological contract between employers and employees changed(Rousseau, 2003). The management’s short-term oriented and unethical behaviour andperception of personal performances contributed to the growth of cynicism at work,which deteriorates employees’ WB and consequently also work performance (Rogers,1995, p. 15). To eliminate that perception, Rogers says, managers should pay moreattention to trust, respect people and communicate with all employees in a wayexpressing honesty and commitment. CBWB provides for more of them thanlaziness-based one (Sarotar Zizek, 2012).

HRM techniques affect the employee WB, which forces managers – for economicreasons, based on good results of innovative and dedicated employees – to:

. create supportive and trustworthy management: good relations betweenmanagers and employees are keys to WB;

. create a positive environment in which employees can thrive and increase theirfeelings of WB within a job;

. promote an organizational culture based on trust, honesty, mutual support andengagement;

. motivate employees and develop an atmosphere of equality and fairness bycreating opportunities for employee involvement in decision-making and teamwork,

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which encourages employees’ WB; this leads to participation, flexibility, balancebetween work and personal life, increases operational efficiency and reducesabsenteeism;

. continuing care for the development, education, training and appropriateremuneration; and

. promote employees’ mental and emotional health by developing mind-set allowingemployees’ self-confidence, self-esteem, sense of goal fulfilment, feelings ofimportance, and emotional resilience (Baptiste, 2008, pp. 303-304).

The cited authors provide an overview of differences between CBWB and other formsof WB.

Research shows that organizational objectives serve the economic ones (finalbenefit) if the important, but often overlooked, CBWB within a job is included; this canmake an appropriate framework for employees’ requisitely holistic happiness andorganizational success. Neglecting the support of CBWB and employee satisfaction atwork to improved productivity, reduced absenteeism or other organizational benefitscan hinder the organization’s stability, employees’ CBWB and social stability(Sarotar Zizek, 2012).

N.B.: The “Mitbestimmung” models were not considered here, because they considerpolitics rather than HRM. The older practices of bosses-employees relations were notconsidered, because the novelistic literature about the nineteenth century practicesshows that WB was out of scope then (e.g. Dickens, Mann, Zola, etc.). The trade-unions’fights for an acceptable length of working time were necessary for workers to surviveand hence for employers to have a workforce.

When discussing CBWB, we can add to novelists of the nineteenth century the factthat at that time, industrial and other activities required physical rather than creativework of employees; machine-based equipment was in its infancy, while automatedequipment had its turn much later. The first theory of organization and management,“scientific management”, supposed that the boss must think instead of his un-educatedemployees, following the logic “the thinking tank and the working tank differ”. Thislogic is only now being replaced by the logic “we all think and we all work”.Alan Mogensen (often referred to as “Mogy”) was educated as an industrial engineer inthe scientific management. In 1926 he consulted a motion study in Kodak, Rochester,NY. He filmed the studied worker to more easily think instead of him. Incidentally,against the bosses’ and consultant’s will the worker saw the film about himself;he asked Mogy to not use the film, since he can do a better job. This experienceinformed Mogy: “workers’ creativity is wasted”. He developed “Work Simplification”that became the basis for “the Suggestion or Submit Your Idea System” activatingcreativity of employees now around the world. In terms of this article, this started themove from no WB toward general WB and CBWB, suggested here.

An over-simplified treatment of co-workers, that “only machines and hence onlytechnological innovations are essential, while humans are avoidable sub-systems ofmachines causing cost rather than benefit”, has often caused the oversight that thetechnological progress has both beneficial and detrimental consequences. In biased,one-sided estimations these consequences are called side-effects or even left aside,while in reality they may have significant long-term consequences (Bourg, 2007;summarised after Sarotar Zizek et al., 2009a, p. 5). Among others, there are data

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revealing that the growth of wealth of the western hemisphere over the lasthalf-century has been much bigger in book-keeping than in long-term economic reality:the West has not and does not cover the cost of maintenance of the naturalpreconditions for human life in real time, but postpones them and piles them up(Bozicnik, 2007; summarised after Sarotar Zizek et al., 2009a, p. 5). The economicconsequences of such short-sighted abuse of the law of external economics areenormous (Stern, interviewed by Stein, 2007, pp. 14-15): if humankind does not act onclimate changes very quickly and radically, these climate changes might costhumankind as much as e5,500 billion, which reaches beyond the cost of both worldwars combined. Without actions diminishing the hot-bed gasses the world-wide GDPwill fall for 5 percent, maybe even 20 percent (Stern, interviewed by Stein, 2007,pp. 14-15; summarised after Sarotar Zizek et al., 2009a, p. 5). New data in the mediaconfirm this terrible situation. CBWB, along with political decisions, is needed for thesurvival of the current human civilization; RH must replace one-sided and short-termlogic of the capital owners, be they enterprise-owners or government.

One should remember several different levels of CBWB. In the modern crisis, lowCBWB can take many forms, from employees’ diseases to strikes; methods of solving theproblem must be adapted to the various forms of combining solidarity, economics andintegrity. Their common denominator may be social responsibility (SR), which exposesinterdependence and holism (ISO, 2010; EU, 2011) and principles and measures ofbusiness innovation as an integral part of the values, culture, ethics and norms (VCEN)of behaviour. Their implementation should ensure that people, for normal egoisticreasons, are less selfish (short-term and narrow-minded) than in the previously dominantpractice. This innovation of VCEN is indispensable for humankind to survive. Therefore,the solution to the problem can be found in the new synergy of knowledge of the growingdominance of the creative class, RH and SR, replacing affluence as a dead-end with thenew motivation: employees’ CBWB (Sarotar Zizek et al., 2009a, p. 9).

Organizational development may cover co-workers’ WB: consideration of them ascreative humans with equal rights enables employers to avoid resistance, revolt,striking, and similar disturbances of creativity in work processes. Hence, the abovementioned practices regarding the treatment of co-workers fail to include RH,expressed as SR-based honest consideration; absent/poor SR offers no solutions, butcauses absenteeism, fictitious and serious illnesses, resistance to work instead ofgladness to have chances to be creative, using all kinds of tacit striking, includingco-workers’ proving to their bosses that the bosses’ instructions cannot be realizedbecause they are not requisitely realistic, etc. (Sarotar Zizek et al., 2009a, p. A125).Perhaps the effort aimed at innovative business and SR is a basis for work successbacked by CBWB and resulting in co-workers’ impetus for their creative work to thebenefit of their organization and broader society, rather than for obstacles andobstruction of several kinds; it could enable the contemporary quality of business andits achievements. The (inter-)national governing bodies should and could support thiseffort, e.g. by providing an (inter-)national strategy for development of co-workers’WB, including measurement of the given state and trends (Leicester, 2007; summarisedin Sarotar Zizek et al., 2009a, p. A125).

SR saves costs, e.g. prevents strikes and lost relations, and causes costs, e.g. forsustainability and charity; hence co-workers’ WB requires also a global/planetaryethic/SR for equal bases of competitiveness. Single organizations may find SR costs

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difficult to accept as the only ones. However, poverty resulting from poor WB andrelated bad productivity and rationality resulting from poor innovativeness, belongs tothe biggest threats to the global harmony (Marcuello Servos, 2006, p. 10). This conclusioncan be related to data that the distribution of the global wealth has fundamentallychanged since times of Adam Smith when contemporary economic theory started to becreated: then the wealth span between the big areas of civilization on the Planet Earthused to be under 2:1, now it is reaching beyond 74:1 (Bourg, 2007; interviewed by Sciama,2007, p. 16). The current civilization is ruining itself, because it respects no limitations inany areas: humankind needs planetary ethic (Bourg, 2007; interviewed by Sciama, 2007,p. 16). Namely, “un-equalities ran beyond any proportions, causing hyper-terrorismagainst the privileged ones”. Thus, there is “a big challenge: to modernize relation ofhumans to their natural environment toward a global ethic”. These un-equalities causepoverty to cover broader circles in socio-economic development including people livingin affluence: they also live unhealthy lives.

Employees’ CBWB, hence, supports organizations’ innovative activities; CBWBcauses higher revenues and lower costs, i.e. higher organizational performance.

3.4 The effects of CBWB for societyThe wealth in “advanced” countries means that real needs no longer must be met withtoo few resources, a fundamental theme of the traditional economic aspect of life.Instead, due to affluence, supply now considerably exceeds demand. Therefore,suppliers create artificial and fictitious needs (Prosenak et al., 2008), total quality, lowprices and wide choice; they often neglect the natural environment, and thereforehealth, inadequate welfare of workers and people who cannot afford everything theyneed. Competitive pressure helps, if the substantial side-effects of the traditionaleconomics is not ignored: natural preconditions for the humankind’s existence andWB are expensive. Economic growth does not serve people, when the naturalconditions are disappearing and people are neither healthy nor happy, but onlywealthy (Sarotar Zizek et al., 2009a, p. 7).

In the USA, only 23 percent of workers’ capabilities are used (Ackoff andRovin, 2003). This percentage cannot be higher in transitional societies, as theproblems have equal roots. The owners and their authorized representatives –governors and managers, unlike in Beer’s viable system model, all too often considerthe organizational hierarchy their one-way dictatorship and its objective conditions thesame as in ancient times of building the Egyptian pyramids; when a commandinghierarchy emerged to enable a swift transfer of the few experts’ knowledge to the largenumber of their co-workers (Schmidt, 1993; Mulej et al., 2000). The rise of the quoted23 percent has a very direct and fundamental importance for economy and society.Probably its growth depends on development of employees’ CBWB.

Better used capabilities could lead us out of the blind-alley of the affluent societywith its destroyed natural environment, in which creativity has been understoodand practised too narrowly; even more narrow have been the economic measures ofeffectiveness. Gross domestic product (GDP), for example, measures the volume ofoperations including the exploitation of nature, without saying how much of nature’scapacity for self-reproduction (and therefore for the further existence of humancivilization) remains. Economic growth does not serve itself – it provides a part ofmeans for the socio-economic development serving the people’s WB.

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The affluence mentioned above is, of course, a relative conception, if one uses thetraditional economic indicators. One should measure affluence from the negative side:it destroys the ambition to work (James, 2007). Thus, reasonable indicators wouldinclude, e.g. percentage of people, poisoning themselves with drugs (from marijuana toalcohol or passive TV-mania and computer games), seeing no sense in life, having anunpleasant work-time with poor CBWB and an empty leisure time, for they lackcreativity. Therefore, they have a low self-esteem with many negative consequences,including poor economic results. Many potential talents remain socially and personallyunused (Sarotar Zizek et al., 2009b, p. A127).

The way to better use capabilities includes the creation of an ethic of interdependencerather than (bosses’) independence (“because we are untouchable”) or the (employees’)ethics of dependence (“life like others’ living tools reduces our interests to free time”). TheEuropean Union supports this way by suggesting application of ISO 26000 exposinginterdependence and holism, and urges member-states to be leaders of SR (EU, 2011).Human egoism therefore can be reduced by the provision of CBWB in an innovativesociety. Research data support this conclusion (Schmidt, 1993; Sarotar Zizek et al., 2009b,p. A126): friendship/interdependence is much more productive than narrowly conceivedegoism, at least in the long run; mutual help relieves many problems which egoismcannot, but egoism has caused them by the need for finding alternative suppliers,customers, co-workers, and control over workers. Less egoism (narrowness) wouldbenefit people for pure selfish reasons, by making others better and be more accepted bythem too (Mulej in Sarotar Zizek et al., 2009b, p. A126). If specialists are willing and ableto cooperate, they can solve many more problems than with the knowledge of one singlediscipline (Barbic Goles, 2008; Sarotar Zizek et al., 2009b, p. A126). Hence, CBWB ingroup stimulates cooperation and creativity enabling innovation. The next basis ofcompetitiveness, after ownership of natural resources and investment (Mulej et al., 1994;Sarotar Zizek et al., 2009b, p. A126) is the innovative phase, which an affluent societyfollows, causing the modern dead-end without the ambition to work hard in order tohave more, once one has everything essential.

More attention to co-workers’ CBWB could support transition for all societiesto more easily become innovative. Worldwide, the most developed areas are thosewith the biggest share of the “creative class”, not the ones with the most mineraland similar natural wealth (Florida, 2005). The CBWB of co-workers belongs tothe essential transition factors. Thus, after affluence, the fifth phase, mentionedelsewhere as our hypothesis could become reality, helping humans overcome thepresent blind-alley. The current crisis is only superficially a financial or economiccrisis, but a crisis of a socio-developmental concept. The traditional concept works nolonger, the new one is not provided. With the model combining the employees’CBWB, SR, innovation and RH rather than laziness, the chances grow. But one mustknow how to define and measure it; sources known so far in literature accessible to usoffer no answers (Sarotar Zizek et al., 2009a, p. 10) although we have attempted thisourselves (Sarotar Zizek, 2012).

4. The link of employees’ CBWB with their organizations’ successIn organizations innovativeness must grow. Hence, HR management needs newfoundations. Methods to be applied include DST to put all quoted findings in synergy,and applied HRM and psychology methods.

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Humans reach beyond “homo oeconomicus” to who profit means everything, evenwhen their important needs are fulfilled. Humans are much more holistic and complex.Their achievements, measured with economic indicators, partially enable satisfactionand WB. Without CBWB economic indicators neither show the essence nor offer a RH,i.e. dialectically-systemic, basis for action. Therefore, business policy should pay moreattention to factors of CBWB – co-workers’ evaluations and feelings about their lives.The usual business policy focuses too narrowly on economic data, although economicindicators neglect, and even misinform about, what co-workers really need. Importantnon-economic CBWB indicators include SR, social capital, democratic governance andhuman rights. At work these, fictitiously non-economic, indicators support satisfactionand success. Therefore, organizations must monitor and improve the workers’ CB.Assessing the individuals’ CBWB from psychological and sociological viewpointsuncovers better the problems and chances for improvement of economic outcomes thanthe economic indicators do. The more and the less innovative organizations differ. Nomodel for the integration of economic and other indicators is known.

Supportive, reliable social relations enable CBWB, which in turn enables good socialrelations and economic outcomes, rather than only vice versa, by supporting creativecooperation (Sarotar Zizek, 2012). People who are excluded from the groups or havepoor relationships in groups suffer. Creative social relationships are crucial fororganizational management and may seriously influence management’s policy andsuccess. For example, companies should apply RH when relocating their employees toother workplaces: trust and support between co-workers can be violated and harmCBWB. The good results, even the economic ones, are more often caused than followedby CBWB.

Encouragement of the use of outcomes of CBWB in shaping management requires asystematic and RH measurement tool for assessing key CBWB variables. They wouldinclude positive and negative emotions, commitment, purpose and meaning, optimism,trust, innovation, and a wide concept of life satisfaction, linked with economicindicators. The current findings are derived from diverse and incompatible measuresbased on various concepts, unfortunately. The current findings have interestingsamples related to management, but they provide no RH policy basis. Periodic and RHassessment of CBWB offers managers more insights for their work.

We built our model with qualitative and quantitative research methods to establishCBWB as a primary managerial focus. It enables its users to consider that CBWBinvolves positive emotions, commitment, purpose and meaning; it contributes to thebusiness quality reflected in the organizational success.

Thus, organizations intervene to ensure the quality of life in order to strengthenemployees’ CBWB on job, to improve productivity, performance and employees’potential. Investigators in organizational behaviour rarely researched employees’psychological WB in terms of their happiness (Garg and Rastogi, 2009, p. 42); WB isprimarily associated with the efficiency and quality of work. Increasing WB at work isassumed to enhance employees’ efficiency, productivity and commitment (Garg andRastogi, 2009, p. 42). CBWB is not mentioned.

WB reflects how happy people are with their overall life quality, including theirjudgment of their individual sustained mood (happiness), evaluation of their humanebeing (satisfaction with the humane humans’ social, physical and mental healthand performance), and its relationship to physical and psychosocial environment

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(life satisfaction and job satisfaction). Humans can build their WB-based happinessusing psychological benefits including daily practice and important developmentgoals. Differences between domain-specific WB areas are essential for effects of thetransfer of experiences between life areas – for example malaise at the workplacediminishes WB at home. Dissatisfaction in marriage and family problems diminishsatisfaction at work (Garg and Rastogi, 2009, pp. 42-43).

The attained human CBWB, which is often based on multiple domains includingwork, matters: creative satisfied employees are more productive, efficient and loyal tothe organization. Also, humans’ continuous positive experience at work enables theirestablishment of positive relations with others, making the basis of positive feedbackinformation from colleagues on the quality of their work, of construction of humanpurpose in life and their personal growth resulting from motivation, empowerment andrewards (Garg and Rastogi, 2009, p. 43).

Organizations and their managers succeed in the preparation, adoption andimplementation of decisions, including those regarding WB, if they attain RH. Successresults equally from knowledge and information, therefore professionalism, and fromthe (interdependent) VCEN: they direct the use of professional skills (Potocan andMulej, 2007). RH/wholeness essentially depends on VCEN, which we express with anethic of interdependence (Mulej and Kajzer, 1998a, b): humans need each other tocomplement each other in order to find ways toward RH and hence to success. A singleindividual is able to attain RH/wholeness alone only in very simple situations.Significantly more holism and wholeness can be achieved through creativeinterdisciplinary cooperation.

Several professions, inter-disciplinary creative cooperation, and an ethic ofinterdependence in really democratic processes, including organizational as well aspolitical processes – this combination/synergy enables humans to attain RH. RH isaimed at by SR, when it is based on principles and measures of innovative business,as a relation helping humans attain WB. SR addresses doing something good and goingbeyond the scope required by power-holders in legislation (www.irdo.si) and takingresponsibility for one’s impacts on society (EU, 2011). CBWB covers interdependencebetween SR, economic efficiency, and RH/wholeness as a triple bottom-line ofeconomic success. Individuals enter this triple synergy every moment, sometimesconsciously, sometimes sub-consciously, actively, or passively. They contribute to SRby their RH economic efficiency; they receive through SR when entitled to support, or asthe lucky and happy ones who live in well-arranged conditions and feel WB at workand otherwise (Sarotar Zizek et al., 2009a, pp. 6-7).

Therefore, the synergy of CBWB and SR provides the basis for the new economyand society.

5. The link between CBWB and SR, defined after ISO as basis for the neweconomy and societyCreating a basis for a new economy and society requires humans to:

. think systemically, not analytically;

. see the ultimate purpose of any social subsystem in helping it; and

. consciously redesign society to provide more equitable distribution of wealth,quality of life, and opportunities for everyone (Ackoff and Rovin, 2003).

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The ISO 26000 standard on SR was prepared for harmonized, globally relevantguidance (but not certification). It helps all organizations including the public sector tounderstand and voluntarily include SR into their operations. The major stakeholdersare grouped as: government, industry, services, labour, non-governmentalorganizations, and customers.

To further develop the understanding and practice of SR the most importantelements of ISO 26000 are:

(1) Seven principles:. accountability;. transparency;. ethical behaviour;. respect for stakeholder interests;. for the rule of law;. for international norms of behaviour; and. for human rights (ISO, 2010, pp. 10-14).

(2) Seven core subjects (ISO, 2010, pp. 19-68):. organizational governance;. human rights;. labour practices;. environment;. fair operating practices;. consumer issues; and. community involvement and development.

These are all interrelated and are bonded with organizational governance of theorganization in the centre. Due to objective circumstances the organization decideswhen it puts more emphasis on some core subjects; and in different circumstanceson other subjects. We find the two concepts linking them equally important:interdependence and a holistic approach (ISO, 2010, lines 896-900).

(3) Seven steps of the procedure of introduction of SR into the organization:. The relationship of an organization’s characteristics to SR.. Understanding the organization’s SR.. Practices for integrating SR throughout the organization.. Communication on SR.. Enhancing credibility regarding SR.. Reviewing and improving the organization’s actions and practices related

to SR.. Voluntary initiatives for SR.

Holistic approach and interdependence are defined (lines 896-900 in ISO 26000) andalso addressed indirectly. This means that interdependence is considered and leadsto (requisite) holism attainable by their interaction similar to an informal

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systems/cybernetics thinking/behaviour. This is very close to the pioneers of systemstheory and cybernetics: Von Bertalanffy (1968, p. VII) wrote explicitly that he hadcreated his General Systems Theory “against overspecialization”, Wiener practicedinterdisciplinary creative cooperation, and so did Beer.

SR is intended to lead humankind out of the current crisis.Cassiers (2011) helps in understanding the crisis:. The crisis is multi-dimensional, including culture, politics, finances, economics,

food, ecology, and society.. Growth that has been so much exposed over the recent several centuries, cannot

be put equal to prosperity because one sees distinction between economic growthand satisfaction with one’s life, ecological limits, and inequality and poverty.

. Quality of life depends on human being and human having; human being can bemeasured by WB, happiness, and a good life, while human having depends onacquiring of wealth, business success, and affluence.

Measurements in the book backing the quoted text found that human having iscertainly an important source of a good life, but far from being the only one: Belgium,the USA, Japan, France and Denmark showed no serious growth of prosperity in theperiod of the very rapid growth of GDP in 1955-2010. Data also show that six decadesof economic growth has neither increased life satisfaction in the West nor swept awaythe world’s misery.

These findings also say that the neo-liberal economics have failed to make humanshappy except a too small percentage. SR offers an alternative chance. But SR, of course,must still pass the entire non-technological invention-innovation-diffusion process tobecome a prevailing culture, with practices and ethics of interdependence (rather thanabuse) and holism (rather than one-sidedness) instead of neo-liberalism.

Preconditions for this process and resulting innovation (rather than any change)include organizations’ duty to look at humans as multi-layered, not only asprofessional entities, as we wrote above. Humans’ CBWB is crucial for successful wayto the new socio-economic order (Mulej et al., 2013).

We have no room here for details of our empirical research (Sarotar Zizek, 2012;Sarotar Zizek et al., 2012a, b; Sarotar Zizek and Milfelner, 2013, 2015). The hypotheseswere proven: if WB is CBWB:

(1) Employees’ WB positively influences their physical, psychological, and socialhealth.

(2) Employees’ WB positively influences success of their employers.

6. ConclusionsWB matters for both employees and their organizations, if it is CBWB, improving theirsuccess and innovativeness. Organizations with greater CBWB of employees care morefor their employees with programs reducing employees’ stress. They enjoy lessabsenteeism, more employee satisfaction at work and better results. A positive relationbetween CBWB and success of organizations was proven in empirical researchperformed in Slovenia in 2011. A structured survey was used for the measurement ofresearched concepts. In order to maintain the content validity of the scale, themeasurement instrument was first tested on a smaller sample of post-graduate students.

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The reliability and validity tests showed the instrument’s adequacy for measuring theabove mentioned constructs. Our sample consisted of employees from 2,426 companiesin Slovenia with more than ten employees. 470 employees responded to ourquestionnaire for employees. 370 managers responded to our questionnaire formanagers. In the first phase of the analysis confirmatory factor analysis was employedto asses dimensionality, reliability and validity of the reflective latent constructs. In thesecond phase structural equation modelling was performed to test the researchhypotheses (Sarotar Zizek, 2012; Sarotar Zizek and Milfelner, 2015).

Without socially responsible behaviour (ethics of interdependence and RH) basedon CBWB the current civilization hardly has a chance to survive. Economics is a tool ofgovernors and managers, while management and organization serve humans to improvetheir life, including economic viewpoints, if they succeed, by practicing SR via CBWB. SRshould include the wider view, beyond CSR, in the governance and management of profitand non-profit organizations, human resources, consumer and customer relations, humanrights, fair and just business practice, community involvement and development,individuals’ CBWB and, especially, natural environment. Their interrelations shouldcover consideration of:

. interdependence as the basis;

. holism as the top intention/achievement; and

. individuals’ CBWB as their basis and goal of realization.

We prefer SR as one’s personal responsibility toward society over limitation of SR tocompanies by CSR: they follow influential humans’ decisions. SR is a human (sociological)attribute. Interdependence makes humans honest and leads from one-sidednesstoward holism, and toward survival of humankind. CBWB and SR make the viablesystem model viable in the current crisis. Not only our empirical research in amarket-latecomer country, but also the findings about visionary companies and their way“from good to great” and about the “rise of the creative class” prove this conclusion.

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About the authorsSimona Sarotar Zizek, PhD, is an Associated Professor. PhD in economic and business sciences.She completed up her theoretical knowledge permanently by the practical work. In 1998, she wasemployed with the company Mura d.d. as Assistant Director, Total Quality Management Department.In 2004, she became Secretary of the Board of the Company Mura d.d.; later she became the Head ofStrategic Development. After nine years, she joined University of Maribor, Faculty of Economics andBusiness in 2007 as Associated Professor in HRM. She is Author or Co-author of articles in severalinternational and Slovenian journals and scientific and expert conferences. Simona Sarotar Zizekis the corresponding author and can be contacted at: simona.sarotar-zizek@uni-mb.si

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Sonja Treven, PhD, Professor, employed at the School of Economics and Business at theUniversity of Maribor in Slovenia for the field of human resource management and organizationalbehaviour. She is the Head of the Department of Organization and Informatics. She is the Author ofthree books (human resource management, international organizational behaviour and stressmanagement), Co-author of seven books as well as more than 50 scientific articles that werepublished in journals like Cybernetic and Systems, Kybernetes, etc. She participated in more than200 domestic and international conferences with her papers.

Matjaz Mulej, PhD, Professor Emeritus, University of Maribor, Faculty of Economics andBusiness, Razlagova 14 Maribor, SI 2000, Slovenia. MA in development economics, Doctorates insystems theory and in management. Retired as Professor Emeritus of Systems and InnovationTheory. þ1,500 publications in þ40 countries (see: IZUM – Cobiss, 08082). Visiting Professorabroad for 15 semesters. Author of the DST (Francois, 2004, International Encyclopedia) andInnovative Business Paradigm for catching-up countries. Member of New York Academy ofSciences (1996), European Academy of Sciences and Arts, Salzburg (2004), European Academyof Sciences and Humanities, Paris (2004), President of International Academy of Systems andCybernetic Sciences, Vienna (2010-2012), now Vice-President. Many “Who is Who” entries,including Hall of Fame for Distinguished Accomplishments, ABI, Raleigh, NC.

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