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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
© 2016 Zachary A. Wright
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
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
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
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.
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 6
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 7
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 8
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 9
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 10
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 11
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 12
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 13
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 14
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 15
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 16
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 17
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 18
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 19
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
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 21
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 22
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 23
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 24
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 25
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 26
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 27
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 28
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 29
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 30
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 31
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.
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 32
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 33
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).
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 34
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.
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 35
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
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 36
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.
JOB PERFORMANCE, JOB SATISFACTION, AND HAPPINESS 37
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