Section 6
Positive Organizational Behavior
Leaders are Readers
The Art of Possibility
 Zander 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”.

POSITIVE ORGANIZATIONAL
BEHAVIOR (POB)

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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.
1
Positive Psychology
Positive psychology is concerned with optimal
human functioning instead of pathological human
functioning.
The three levels of positive psychology are:
1. Valued subjective experiences.
2. Positive individual traits.
3. Civic virtues and the institutions that move
individuals toward better citizenship.
These very “positive” goals have obvious
implications not only for therapy, education, family life,
and society at large, but, importantly, also for
organizational life and behavior.
Positive Psych Research

20 years of experiments by Isen find people
who are positive/feel good, their thinking is
more
 - creative
 - integrative

- flexible
- open to information
Positivity may be hedonistic (enjoy the
moment) but at the same time, research
shows building longer-term resources:
◦
◦
- physical
- intellectual
- social
- psychological
3
Positive Psych Research
Positivity does more than feeling good in the
present (also in the future, a contagion effect)
 Positivity not only affects individuals, but also
can transform:

 - groups/teams
 - organizations
 - communities

Isen found upward spiral of positivity leads to
caring/compassion, leads to more positivity
3
POB

POB DEFINED: The study and application of
positively oriented human resource strengths
and psychological capacities that can be
measured, developed and effectively managed
for performance improvement in 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 Behavior States

Several important positive psychology states
are emerging to help in both the better
understanding and effective application of
organizational behavior
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Optimism
Resilience
Hope
Confidence
Emotional Intelligence
Psychological Well-Being
Positive Psychological Capital (PsyCap)
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
6
Optimism- Martin Seligman:
attribution of failures

Optimistic- Cognition and Emotion
◦ External, Unstable, Specific attributions (my
boss is mean when X happens)

Pessimistic
◦ Internal, Stable and Global attributions
(managers are mean and selfish slimeballs)
Optimism- attribution of successes

Pessimistic Cognition and Emotion
◦ External, Unstable, Specific attributions (my
boss is mean when X happens)

Optimistic◦ Internal, Stable and Global attributions
(managers are mean and selfish slimeballs)
Optimism

(Continued)
The 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
Hope and Happiness

Hope
◦ 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 Happiness

(Continued)
Happiness or Subjective Well-Being
(SWB)
◦ The Background on SWB
◦ Temperament and Personality Dispositions
◦ The Role of Goals
◦ Across Cultures  Job Satisfaction
Emotional Intelligence

The Role of Emotion
◦ Emotional Processing
 Personality Effects
 Mood Effects
◦ Types of Emotions- Primary
◦ Emotional Categories and Continuum
Emotional Intelligence

The Role of Intelligence
◦ Nature versus Nurture Intelligence
◦ Recognition of Multiple Intelligences
◦ Intelligence as Cognitive Mental Ability
(Continued)
Emotional Intelligence

(Continued)
Emotional Intelligence in the Workplace
◦ Goleman’s Approach to EI in the Workplace
◦ Initial Supporting Evidence
◦ Application to Leadership
Self Efficacy

Orbiting the Giant Hairball (1998) by
Gordon Mackenzie

“Orville Wright did not have a pilot’s
license”

So what did he have?
Self-Efficacy- Albert Bandura
“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-Efficacy
Sources of Self-Efficacy
 Implications for Self-Efficacy in the
Workplace

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Selection of Human Resources
Training and Development
Other Applications
Meta-Analysis
(Continued)
Self-Efficacy
(Continued)
Self-Efficacy
(Continued)
Resilience

“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.
Resilience
COMMON CHARACTERSTICS IN RESILIENCY THEORIES (Coutu,
2002).
◦ Staunch acceptance of reality. (Admiral Stockdale, Morgan Stanley)
◦ Propensity to make meaning of terrible times; strong values. (Why
not me? True, I lost many things, but I found many more)
◦ Uncanny ability to improvise; make do with whatever is at hand. Not really
creativity, concentration camp inmates who pocketed pieces of
string or wire)
 DIFFERS FROM OTHER POSITIVE CAPACITIES
◦ - smaller domain
◦ - reactive rather than proactive
◦ - 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 POB
Antecedents
 Outcomes
 Upcoming Research

Studies 1 and 2
Measurement
 Relation to Performance and Satisfaction
 Development
 Development for Performance Impact

Executive Summary

Research at Central Washington University
and The University of Nebraska-Lincoln study
the role that positive psychological capacities
play in authentic leadership and human
resource development/performance.

We call these positive capacities
“Psychological Capital” or simply PsyCap
because they represent individual (and team)
resources that can be invested in and
developed for increased performance.

Two main studies indicated that PsyCap:
◦ Can be reliably and validly measured
◦ Developed using relatively short two-hour microinterventions
◦ Have a positive impact on performance and
satisfaction

Utility analysis of these results indicated:
◦ Substantial return on development (ROD)
◦ Gained from the investment in and development of
PsyCap
Sample Items from the PsyCap
Questionnaire (PCQ)-24

Below are statements about you with
which you may agree or disagree. Using
the following scales, indicate your level of
agreement or disagreement at the
present time.
◦ (1 = Strongly disagree, 2 = disagree, 3 =
somewhat disagree, 4 = somewhat agree,
= agree, 6 = strongly agree)
5
1.
2.
3.
4.
5.
6.
7.
8.
I feel confident helping to set targets/goals in my
work area.
I feel confident presenting information to a group
of colleagues.
There are lots of ways around any problem.
I can think of many ways to reach my current work
goals.
When I have a setback at work, I have trouble
recovering from it and moving on.
I usually take stressful things at work in stride.
When things are uncertain for me at work I usually
expect the best.
I’m optimistic about what will happen to me in the
future as it pertains to work.
Key Initial Research Findings on PsyCap
Psychological Capital (PsyCap) measurement
was found to be reliable and valid.
 PsyCap seems to have a significant positive
relationship with performance and satisfaction.
 PsyCap seems to be a core capacity that is
greater than the sum of its parts (hope,
optimism, efficacy, and resiliency), i.e., PsyCap
appears to be synergistic.

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 Application of
PsyCap
PsyCap can be developed in human resources
through a short training intervention.
 Enhancing the levels of human resources’
PsyCap leads to increased performance.
 Investing in and developing PsyCap can result
in very high returns.

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 Development
Study 3
ANZ- Australia Financial Firm
ANZ PsyCap
Results from February 2007
Pilot Test
James 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.
1
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.
1
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.
1
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.
1
Study 4
Avey Dissertation
Boeing Leadership Experiment
Boeing- Leader Psychological Capital
117 Aeronautical, Mechanical and Electrical Engineers
in Commercial Airplane Manufacturing
 Field Experiment:

◦ Kurt Lewin- “You can not understand a system until you try
to change it”

Evidence Based:
◦ Intangible Engineering Performance- Quality and Quantity
of Solutions to Engineering Problems
Solve Issue X
Leader
Message
Solutions
Leader Positivity
Main Effect
Differences
on Attitudes
Attitudes
Leader PsyCap,
Employee
PsyCap
and
5
4
3
2
Engagement
Task Confidence
Task Hope
Low Leader Positivity
Task Resilience
High Leader Positivity
Task Optimism
Leader PsyCap
and Employee
Performance
Leader Positivity
Main Effect Differences
on
Objective Outcomes
4
3
2
1
0
Quality of Solutions
Low Leader Positivity
Number of Solutions
High Leader Positivity
Leaders………..Drive Conditions…….that Drive Outcomes
PsyCap Directed
Toward Team
PsyCap in
the Task
Performance
Outcomes
Implications

Not whether you (others) have PsyCap, but how can I (others)
have more PsyCap?
◦ PsyCap is not finite point, not a destination.
◦ PsyCap is an ongoing process, is a journey.
◦ PsyCap is an unlimited psychological resource.

Tal Ben-Shahar: “While I do not believe that things necessarily
happen for the best, I know that some people are able to make the
best of things that happen.”
Positivity Profile
(a.k.a. Hamburger Model, Ben-Shahar, 2007)
The key roles of the present benefits (detriments) versus (and) future benefits (detriments)
Rat Racer
Sacrifice present for the future.
Never ending “arrival fallacy.”
(Vegetarian Burger)
Future
Benefit
Present
Detriment
Nihilist
Neither enjoys present nor has sense
of future purpose.
Learned helplessness.
(Worst Burger)
Full PsyCap Potential
Confident, hopeful, optimistic, and resilient in
present will also lead to fulfilling future. Enjoy
the journey to a valuable destination.
(Ideal Burger)
Present
Benefit
Detriment in
Future
Hedonist
Seeks pleasure of present.
Lacks purpose, unfulfilled.
“Floating moment fallacy.”
(Junk-food Burger)
Practical Guidelines for Managing Self and Others PsyCap

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Self-discipline usually insufficient (New Year’s resolutions
fail)
Implement the PsyCap Development Model
Start with three critical questions to get into the “right
fit”:
◦ What provides me with a sense of meaning and purpose? Do I
have a calling rather than just a job or career?
◦ At work, what do I enjoy doing?
◦ What am I good at? Do I do what I do best every day?

Introduce and follow RITUALS (Loehr & Schwartz, 2004)
◦ “Requires defining very precise behaviors and performing them
at very specific times.”
◦ Initiating rituals difficult, maintaining rituals easy (top athletes to
brushing your teeth).
Introduce and follow RITUALS Continued
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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 thankyou 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
Exercises for Developing PsyCap
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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