Section 6Section 6Positive Organizational Behavior

Leaders are Readers Leaders are Readers The Art of PossibilityZander and Zander (2002)A show factory sent two marketing

scouts to a region in Africa to study the prospects for expanding business. One sends back a telegram saying, SITUATION HOPELESS STOP NO ONE WEARS SHOES

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

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POSITIVE ORGANIZATIONAL POSITIVE ORGANIZATIONAL BEHAVIOR (POB)BEHAVIOR (POB)

APPEAL OF POPULAR BOOKS (Blanchard, Covey, Johnson)

But, no theory, no research, and no performance outcomes

GALLUP’S POSITIVE, STRENGTHS APPROACH Don Clifton’s Positivity and Emphasis on

Strengths Books: NDYS, 12 Elements Harter, Schmidt & Hayes JAP article POSITIVE PSYCHOLOGY MOVEMENT Background Seligman, Diener, Peterson, et al.

Positive PsychologyPositive PsychologyPositive 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 ResearchPositive 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 ResearchPositive Psych ResearchPositivity 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

POBPOBPOB 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 today’s workplace (Luthans, AME, p. 59).◦ Based on Theory and Research◦ Unique Concepts (not old OB in new

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

Positive Organizational Positive Organizational Behavior StatesBehavior 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

Optimism- Martin Seligman:Optimism- Martin Seligman:attribution of failuresattribution of failuresOptimistic- 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)

Optimism- attribution of Optimism- attribution of successessuccessesPessimistic 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)

OptimismOptimismThe Dimensions of Optimism

◦Optimism as Human Nature◦Optimism as an Individual Difference◦Optimism and Performance at Met

Life◦Some Unresolved Optimism Issues-

realistic optimism and a lack of affect

(Continued)

Hope and HappinessHope and HappinessHope

◦Agentic Capacity (aka agency or goal directed energy)

◦Pathways Thinking No pathways to accomplish goal, no

subsequent hope the goal will be accomplished?

Hope and HappinessHope and HappinessHappiness or Subjective Well-

Being (SWB)◦The Background on SWB◦Temperament and Personality

Dispositions◦The Role of Goals◦Across Cultures Job Satisfaction

(Continued)

Emotional IntelligenceEmotional IntelligenceThe Role of Emotion

◦Emotional Processing Personality Effects Mood Effects

◦Types of Emotions- Primary◦Emotional Categories and Continuum

Emotional IntelligenceEmotional IntelligenceThe Role of Intelligence

◦Nature versus Nurture Intelligence◦Recognition of Multiple Intelligences◦Intelligence as Cognitive Mental

Ability

(Continued)

Emotional IntelligenceEmotional IntelligenceEmotional Intelligence in the

Workplace◦Goleman’s Approach to EI in the

Workplace◦Initial Supporting Evidence◦Application to Leadership

(Continued)

Self EfficacySelf EfficacyOrbiting the Giant Hairball (1998)

by Gordon Mackenzie

“Orville Wright did not have a pilot’s license”

So what did he have?

Self-Efficacy- Albert Self-Efficacy- Albert BanduraBandura“It’s 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

Self-EfficacySelf-EfficacySources of Self-EfficacyImplications for Self-Efficacy in

the Workplace◦Selection of Human Resources◦Training and Development◦Other Applications◦Meta-Analysis

(Continued)

Self-EfficacySelf-Efficacy(Continued)

Self-EfficacySelf-Efficacy(Continued)

ResilienceResilience“a class of phenomena characterized by

patterns of positive adaptation in the context of significant adversity or risk”

Beyond simple adaptation nad coping, it is the ability to rebound and bounce back from adversity

In the beginning scientists thought it was for a select few gifted children. Now we know otherwise, that it can be enabled.

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

ResilienceResilience 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◦ - matters most in difficult times◦ - like hope pathways, but not will power◦ “It is not what happens to you that matters, but how you take it.”

Research on POBResearch on POBAntecedentsOutcomesUpcoming Research

Studies 1 and 2Studies 1 and 2MeasurementRelation to Performance and

SatisfactionDevelopmentDevelopment for Performance

Impact

Executive SummaryExecutive SummaryResearch 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.

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 satisfactionUtility analysis of these results

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

development of PsyCap

Sample Items from the PsyCap Sample Items from the PsyCap Questionnaire (PCQ)-24Questionnaire (PCQ)-24Below 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)

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

2. I feel confident presenting information to a group of colleagues.

3. There are lots of ways around any problem.

4. I can think of many ways to reach my current work goals.

5. When I have a setback at work, I have trouble recovering from it and moving on.

6. I usually take stressful things at work in stride.

7. When things are uncertain for me at work I usually expect the best.

8. I’m optimistic about what will happen to me in the future as it pertains to work.

Key Initial Research Findings on Key Initial Research Findings on PsyCapPsyCap

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.

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.

Implications for Practical Implications for Practical Application of PsyCapApplication 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.

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).

PsyCap DevelopmentPsyCap DevelopmentStudy 3Study 3ANZ- Australia Financial Firm

ANZ PsyCap

Results from February 2007 Pilot TestJames B. Avey

Purpose of Pilot Test

•Skills development will be complemented with PsyCap training within ANZ

• Inform the training and development of PsyCap within ANZ

•Determine the extent to which PsyCap is related to 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, let’s 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. 1

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 4Study 4Avey DissertationAvey DissertationBoeing Leadership Experiment

Boeing-Boeing- Leader Psychological Leader Psychological CapitalCapital117 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 LeaderMessage Solutions

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3

4

5

Engagement Task Confidence Task Hope Task Resilience Task Optimism

Low Leader Positivity High Leader Positivity

Leader PsyCap, Employee PsyCap and Attitudes

Leader Positivity Main Effect Differences on Objective Outcomes

0

1

2

3

4

Quality of Solutions Number of Solutions

Low Leader Positivity High Leader Positivity

Leader PsyCap and Employee Performance

PsyCap Directed Toward Team

PsyCap in the Task

PerformanceOutcomes

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

ImplicationsImplications 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.”

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

Future Benefit

Present Detriment

Present Benefit

Detriment in Future

Full PsyCap PotentialConfident, hopeful, optimistic, and resilient in present will also lead to fulfilling future. Enjoy the journey to a valuable destination.(Ideal Burger)

HedonistSeeks pleasure of present. Lacks purpose, unfulfilled. “Floating moment fallacy.”(Junk-food Burger)

NihilistNeither enjoys present nor has sense of future purpose. Learned helplessness.(Worst Burger)

Rat RacerSacrifice present for the future. Never ending “arrival fallacy.”(Vegetarian Burger)

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

resolutions fail) Implement the PsyCap Development ModelStart 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).

Introduce and follow Introduce and follow RITUALS RITUALS ContinuedContinued 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).

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.” Edison’s public announcement by Dec. 31, 1879 have light. Kennedy’s 1962 declaration of man on the moon by end of

decade.◦ Goethe: “Whatever you can do, or dream you can, begin

it! Boldness has genius, magic, and power in it.”◦ Goals create our present reality and future, rather than

have us try to react to it.◦ Research indicates goal attainment (or not) will have only

short-term impact.

◦ The key is not so much on attaining goals, but having them. 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 do–want to do–really want to do–really, really want to do. Can do’s = possible goals (constraints make necessary to do). Really, really want to do = PsyCap goals (those with personal

passion).

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

Exercises for Developing Exercises for Developing PsyCapPsyCap 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