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Section 6

Section 6. Positive Organizational Behavior. Leaders are Readers. The Art of Possibility Zander and Zander (2002)

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Section 6

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  1. Section 6 Positive Organizational Behavior

  2. 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”.

  3. POSITIVE ORGANIZATIONAL 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. 1

  4. 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.

  5. Positive Psych Research • 20 years of experiments by Isen find people who are positive/feel good, their thinking is more • - creative - flexible • - integrative - open to information • Positivity may be hedonistic (enjoy the moment) but at the same time, research shows building longer-term resources: • - physical - social • - intellectual - psychological 3

  6. 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

  7. 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

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

  9. 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

  10. 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)

  11. 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)

  12. 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

  13. 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?

  14. 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

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

  16. Emotional Intelligence (Continued) • The Role of Intelligence • Nature versus Nurture Intelligence • Recognition of Multiple Intelligences • Intelligence as Cognitive Mental Ability

  17. Emotional Intelligence (Continued) • Emotional Intelligence in the Workplace • Goleman’s Approach to EI in the Workplace • Initial Supporting Evidence • Application to Leadership

  18. Self Efficacy • Orbiting the Giant Hairball (1998) by Gordon Mackenzie • “Orville Wright did not have a pilot’s license” • So what did he have?

  19. 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

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

  21. Self-Efficacy (Continued)

  22. Self-Efficacy (Continued)

  23. 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.

  24. 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.”

  25. Research on POB • Antecedents • Outcomes • Upcoming Research

  26. Studies 1 and 2 • Measurement • Relation to Performance and Satisfaction • Development • Development for Performance Impact

  27. 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.

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

  29. Sample Items from the PsyCap Questionnaire (PCQ)-24 • Below are statements about you with which you may agree or disagree. Using the following scales, indicate your level of agreement or disagreement at the present time. • (1 = Strongly disagree, 2 = disagree, 3 = somewhat disagree, 4 = somewhat agree, 5 = agree, 6 = strongly agree)

  30. 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.

  31. 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.

  32. 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.

  33. 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.

  34. 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).

  35. PsyCap DevelopmentStudy 3 ANZ- Australia Financial Firm

  36. ANZ PsyCap Results from February 2007 Pilot Test James B. Avey

  37. 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

  38. 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

  39. 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

  40. 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

  41. 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

  42. Study 4Avey Dissertation Boeing Leadership Experiment

  43. Boeing-Leader Psychological Capital • 117 Aeronautical, Mechanical and Electrical Engineers in Commercial Airplane Manufacturing • Field Experiment: • Kurt Lewin- “You can not understand a system until you try to change it” • Evidence Based: • Intangible Engineering Performance- Quality and Quantity of Solutions to Engineering Problems Solve Issue X Leader Message Solutions

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