Can Positive Employees Help Positive Organizational Change? Impact of Psychological Capital and Emotions On Relevant Attitudes and Behaviors
Can Positive Employees Help Positive Organizational Change? Impact of Psychological Capital and Emotions On Relevant Attitudes and Behaviors
James B. Avey
Central Washington University
Tara S. Wernsing
Fred Luthans
University of Nebraska–Lincoln
Abstract:
Although much attention has been devoted to understanding employee resis-
tance to change, relatively little research examines the impact that positive em-
ployees can have on organizational change. To help fill this need, the authors
investigate whether a process of employees’ positivity will have an impact on rel-
evant attitudes and behaviors. Specifically, this study surveyed 132 employees
from a broad cross-section of organizations and jobs and found: (a) Their psycho-
logical capital (a core factor consisting of hope, efficacy, optimism, and resilience)
was related to their positive emotions that in turn were related to their attitudes
(engagement and cynicism) and behaviors (organizational citizenship and devi-
ance) relevant to organizational change; (b) mindfulness (i.e., heightened aware-
ness) interacted with psychological capital in predicting positive emotions; and
(c) positive emotions generally mediated the relationship between psychological
capital and the attitudes and behaviors. The implications these findings have for
positive organizational change conclude the article.
Keywords: psychological capital, positive emotions, mindfulness, cognitive me-
diation theory, positive organizational change
48
Can Positive Employees Help Positive Organizational Change? 49
man, 2007; Luthans & Youssef, 2004; Luthans, Youssef, & Avolio, 2007), and
positive emotions (e.g., see Fredrickson, 1998; Lord, Klimoski, & Kanfer, 2002;
Staw, Sutton, & Pelled, 1994) are examples of positive individual-level factors
that may facilitate organizational change. In other words, positive employees,
defined here as those with positive psychological capital and positive emotions,
may exhibit attitudes and behaviors that in turn may lead to more effective and
positive organizational change.
For this study, positive organizational change is any change that does more
good than harm in and for an organization, considering aspects of employees’
psychological resources, behavior, and performance that may be affected by the
change. An important consideration in positive change is the corresponding ef-
fects on employees as well as organizational outcomes. For example, downsiz-
ing is a change intended to be positive by increasing organizational efficiency
but often fails to be positive because of its disastrous effects on employees (Cas-
cio, 2002). It follows from this perspective that one of the most important as-
pects of positive organizational change is how the employees respond in terms
of their attitudes and behaviors.
To explicate the relationship between positive employees and their attitudes
and behaviors that have implications for positive organizational change, we can
draw from a stream of research in positive psychology. Specifically, Fredrick-
son’s (1998, 2001, 2003b) broaden and build theory examining the role that posi-
tive emotions play in generating broader ways of thinking and behaving seems
especially relevant to explaining the role that positive employees can play in pos-
itive organizational change. Research on positive emotions shows that a ratio of
about 3:1 positive to negative emotions leads to flourishing (i.e., high levels of
functioning and wellbeing; Keyes, 2002) due to increased “momentary thought-
action repertoires” (Fredrickson, 2001, p. 219) that come from experiencing posi-
tive emotions (Fredrickson & Losada, 2005). Additional empirical evidence dem-
onstrates that positive emotions can engender better decision making (Chuang,
2007) and are positively related to various measures of success and well-being
(Lyubomirsky, King, & Diener, 2005). In other words, positive emotions may
help employees cope with organizational change by broadening the options they
perceive, maintaining an open approach to problem solving, and supplying en-
ergy for adjusting their behaviors to new work conditions (Baumeister, Gailliot,
DeWall, & Oaten, 2006).
For this study, the proposed process and empirical relationship between
positive employees and positive organizational change is as follows: Employ-
ees’ positive PsyCap, through positive emotions, relates to their relevant at-
titudes and behaviors that can facilitate (or inhibit) positive organizational
change. More specifically, cynical attitudes and deviant behaviors may inhibit
positive change, but their attitudes of engagement and organizational citizen-
ship behaviors may enhance positive organizational change. We now turn to
the background leading up to the specific study hypotheses for this proposed
process shown in Figure 1.
Can Positive Employees Help Positive Organizational Change? 51
Figure 1: Model for Impact of Psychological Capital (PsyCap), Mindfulness, and Positive
Emotions on Attitudes and Behaviors Relevant to Positive Organizational Change
Psychological Capital
Besides the roles of emotions, attitudes, and behaviors, central to our pro-
posed model of the relationship of positive employees in positive organiza-
tional change is psychological capital. This PsyCap is based on the emerging
field of positive organizational behavior (for a recent review article, see Luthans
& Youssef, 2007). Like psychology, positive organizational behavior makes no
claim to discovering the importance of positivity in the workplace but rather
is simply calling for a focus on relatively unique positive, state-like constructs
that have performance impact (see Luthans, 2002a, 2002b). To differentiate
from the positively oriented popular personal development literature (e.g., the
power of positive thinking or the seven habits of highly successful people) or
the relatively fixed, trait-like positively oriented organizational behavior litera-
Can Positive Employees Help Positive Organizational Change? 53
ture (e.g., Big Five personality dimensions or core self-evaluations), the follow-
ing definition of positive organizational behavior has been offered: “the study
and application of positively oriented human resource strengths and psycho-
logical capacities that can be measured, developed, and effectively managed for
performance improvement” (Luthans, 2002b, p. 59; also see Luthans & Youssef,
2007; Nelson & Cooper, 2007; Wright, 2003).
Although a number of positive constructs have been researched (e.g., see Cam-
eron et al., 2003; Nelson & Cooper, 2007), so far the four that have been identified
to best meet the criteria of the definition of positive organization behavior are
hope, efficacy, optimism, and resilience (Luthans, 2002a; Luthans, Youssef, et al.,
2007). When combined, these four have been conceptually (Luthans & Youssef,
2004; Luthans, Youssef, et al., 2007) and empirically (Luthans, Avolio, et al., 2007)
demonstrated to represent a second-order, core factor called psychological capi-
tal. After a brief overview of the four components and their relevancy to positive
organizational change, the precise meaning of PsyCap is provided as it is a major
predictor variable in the proposed process shown in Figure 1.
Conceptually, Snyder, Irving, and Anderson (1991) define hope as a “positive
motivational state that is based on an interactively derived sense of successful
(1) agency (goal-directed energy) and (2) pathways (planning to meet goals)” (p.
287). People who are high in hope possess the uncanny ability to generate multi-
ple pathways to accomplishing their goals. This psychological resource continu-
ously provides hope that the goal will be accomplished. Furthermore, those with
high hope frame tasks in such a way that keeps them highly motivated to at-
tain success in the task at hand. Snyder (2002) notes that agency thinking in hope
“takes on special significance when people encounter impediments. During such
instances of blockage, agency helps the person to apply the requisite motivation
to the best alternative pathway” (p. 258). Therefore, both agency and pathways
thinking are necessary and complementary components of hope. Sustaining
hope during times of crises and change seems imperative for the well-being of
employees and a necessary ingredient of positive organizational change. In par-
ticular, the capacity for generating new pathways seems essential to navigating
discontinuous and unpredictable change processes (Weick & Quinn, 1999).
A second capacity of PsyCap is efficacy. Drawn from the theory and re-
search of Bandura (1997), applied to the workplace, efficacy can be defined as
“the employee’s conviction or confidence about his or her abilities to mobilize
the motivation, cognitive resources, or courses of action needed to successfully
execute a specific task within a given context” (Stajkovic & Luthans, 1998b, p.
66). In relationship to hope, efficacy can be interpreted as the conviction and
belief in one’s ability to (a) generate multiple pathways, (b) take actions toward
the goal, and (c) ultimately be successful in goal attainment. Efficacy has shown
very strong relationships with performance (e.g., meta-analysis by Stajkovic &
Luthans, 1998a) and is generated from four generally recognized sources that
are all relevant to positive organizational change.
First, Bandura (1997) has conceptually and empirically demonstrated that
task mastery, or successfully accomplishing a task, is a primary source of effi-
cacy. When employees successfully accomplish a task or cope with change, they
are more likely to believe they can do it again. Other major sources of efficacy in-
54 Avey, Wernsing, & Luthans in J. of A p p l i e d B e h a v i o r a l S c i e n c e 44 (2008)
Affective events theory explains that an event elicits an initial evaluation “for
relevance to well-being in simple positive or negative terms. This initial evalua-
tion also contains an important evaluation which influences the intensity of the
emotional reaction” (Weiss & Cropanzano, 1996, p. 31) and leads to a second-
ary appraisal associated with discrete emotions. These initial and secondary ap-
praisals can occur automatically, below the threshold of conscious awareness
(Bargh, 1994). Therefore, multiple appraisals occur from events experienced at
work that generate emotions.
For example, research shows that the same event can occur to two differ-
ent people and cause stressful emotions in one of them but not in the other
(Lazarus & Folkman, 1984). Thus, employees may automatically interpret orga-
nizational change events in ways that cause them to experience dysfunctional
attitudes such as cynicism and exhibit deviant behaviors, perhaps even with-
out conscious awareness of the connection between their thoughts and emo-
tions. On the other hand, those employees who interpret events in a positive
way, namely, with hope, optimism, efficacy, and resilience (i.e., PsyCap), may
be more likely to experience positive emotions at work even during potentially
stressful events associated with organizational change. Therefore, as shown in
Figure 1, PsyCap is proposed as a source of positive emotions.
We suggest that overall PsyCap will contribute to individual positive emo-
tions. For example, first, if employees are optimistic and efficacious, they gen-
erally possess positive expectations for goal achievement and successfully cop-
ing with change and thus experience positive feelings of confidence. Positive
emotions are in turn likely to broaden or multiply the pathways that are gener-
ated in goal pursuit (Fredrickson, 2001). If a setback or challenge occurs during
a process of change, they are likely to attribute the setback to external, one-time
circumstances and immediately consider alternative pathways to goal success,
demonstrating hope and resilience. Tugade and Fredrickson (2004) also sup-
port the position that cognitive states and abilities such as resilience precede
positive emotions and found that “high-resilient individuals tend to experience
positive emotions even amidst stress” (p. 331). As organizational transitions are
associated with higher levels of stress (Ashford, 1988), PsyCap may help main-
tain a more positive climate during such periods of change.
Martin, Jones, and Callan (2005) have recently extended Lazarus and Folk-
man’s (1984) research on stress and coping to show that employee perceptions
of organizational climate affect their appraisals and emotions, which affect their
organizational commitment, job satisfaction, and absenteeism. In addition, re-
lated research in positive psychology also suggests the mediating role of posi-
tive emotions. For example, Tugade, Fredrickson, and Barrett (2004) found that
those individuals higher in resilience used positive emotions to cope during
and after stressful events. Similar results were found by Fredrickson, Tugade,
Waugh, and Larkin (2003) when studying the role of resilience in responding to
the 9/11 attacks in New York.
In sum, we posit a mediating role of positive emotions in the relationship
between PsyCap and employee attitudes and behaviors relevant to organiza-
tional change. In particular, given (a) the explanatory framework of the cogni-
tive mediation theory that proposes cognitions precede emotions; (b) previous
Can Positive Employees Help Positive Organizational Change? 57
Method
Sample
The heterogeneous sample for this study was comprised of 132 working
adults from a wide cross-section of U.S. organizations who volunteered to par-
ticipate in a large Midwestern university–sponsored research project on moti-
vation and leadership. Participants were targeted through contacts of manage-
ment faculty and students at the university. Those who agreed to participate
were provided a link to an online secure server, where they read and approved
the informed consent form and registered their e-mail address. At this point
they were assigned a randomly generated seven-digit code for tracking, and
132 fully participated and completed all of the survey measures described in
the following section.
Participant ages ranged from 18 to 65 with a mean age of 30.4 years. They
had a mean of 10.8 years of experience and 6 years at their existing organiza-
tion. The majority of the sample was white (90.2%), with 5.3% Asian, 1% black,
1% Native American, and the rest (< 2%) not reporting ethnicity. There were
68 men and 64 women, and 32% reported working virtually from their man-
ager 50% or more of the time. Nonmanagerial employees comprised about two
thirds of the sample. Among the 35% of the sample in some supervisory role,
8.5% were in a first-level supervisory role, 13.2% were in a division or depart-
ment leadership role, 8.5% were executives, and 4.7% were business owners.
Finally, 3.8% reported completion of high school only, whereas 52.3% reported
completion of high school and some college or vocational training. Another
34.8% of participants reported a bachelor’s degree, with 7.6% reporting a mas-
ter’s degree and 1.5% reporting a PhD or equivalent.
Study Procedures
The independent and dependent variable survey measures (covered next)
were separated by time to reduce common method bias as recommended by
Podsakoff, MacKenzie, Lee, and Podsakoff (2003) who note this temporal sep-
aration procedure “makes it impossible for the mindset of the source or rater
Can Positive Employees Help Positive Organizational Change? 59
to bias the observed relationship between the predictor and criterion variable,
thus eliminating the effects of consistency motifs, implicit theories, social desir-
ability tendencies” (p. 887) and other individual attributes that may influence/
bias the responses. First, the participants completed the PsyCap, mindfulness,
and positive emotions instruments. After a week of separation the participants
logged on and completed the dependent variable instruments for cynicism, em-
ployee engagement, organizational citizenship, and deviance.
Measures
Psychological capital was measured by the 24-item PsyCap questionnaire or
PCQ (Luthans, Avolio, et al., 2007; Luthans, Youssef, et al., 2007). This instru-
ment includes 6 items for each of the four components of hope, efficacy, resil-
ience, and optimism measured on a 6-point Likert-type scale. Sample items are
as follows: efficacy—“I feel confident helping to set targets/goals in my work
area;” hope—“If I should find myself in a jam at work, I could think of many
ways to get out of it;” resilience—“I usually take stressful things at work in
stride;” and optimism—“When things are uncertain for me at work, I usually
expect the best.” Reliability coefficients for all the components were greater
than .70, as was the overall PsyCap instrument, which was .95 (see Table 1 for
the reliabilities of all study measures). A confirmatory factor analysis (CFA)
was also conducted on the PsyCap instrument using maximum likelihood tech-
niques. Previous research has shown strong factor-analytic fit for the PsyCap
questionnaire across multiple samples (e.g., Avey et al., 2006; Luthans, Avolio,
et al., 2007). Similar to these findings, in our study the PCQ yielded adequate fit
in terms of indices (Comparative Fit Index [CFI] = .93, root mean square error
of approximation [RMSEA] = .07) with all items loading greater than .70 and no
cross-loading items.
Mindfulness was measured using the instrument developed by Brown and
Ryan (2003), where ratings for 15 items were set on a 6-point scale ranging from
strongly disagree to strongly agree. A sample item from this scale is: “I find my-
self doing things without paying attention.” The reliability coefficient for the
mindfulness instrument was also acceptable (.91).
60 Avey, Wernsing, & Luthans in J. of A p p l i e d B e h a v i o r a l S c i e n c e 44 (2008)
Results
Means, standard deviations, and item correlations for study variables are
shown in Table 1. Hypothesis 1 was that employees’ positive emotions would
be positively related to their emotional engagement and negatively related to
their cynicism. For these analyses we used hierarchical regression where the
covariates of age, gender, tenure, job level, and education were entered into
Step 1 and positive emotions were entered into Step 2. The purpose was to see
the independent effects of positive emotions on both attitudes. As seen in Table
2, when entering positive emotions into the regression model, it predicted sig-
nificant variance beyond the covariates. In each case, the model in Step 2 shows
positive emotions related positively with engagement and negativity with cyn-
icism. Therefore, there was full support for Hypothesis 1.
Can Positive Employees Help Positive Organizational Change? 61
Table 2. Effect of Positive Emotions on Attitudes and Behaviors Relevant to Positive Orga-
nizational Change
Engagement Cynicism Citizenship Deviance
Step 1 Step 2 Step 1 Step 2 Step 1 Step 2 Step 1 Step 2
β β β β β β β β
Age –.045 .001 –.419* –.449* –.221 –.186 –.059 –.104
Gender .089 .045 –.096 –.067 .254** .221* –.232* –.189*
Tenure .097 .033 .364* .405* .292 .244 –.054 .010
Job level .193 .107 .035 .064 –.020 –.054 –.025 .018
Education .274** .150 –.277** –.198* .242* .150 –.206* –.086
Positive emotions .531** –.342** .394** –.519**
ΔR2 .256** .106** .141** .245**
* p < .05 ; ** p < .01.
dict positive emotions such that the relationship between mindfulness and
positive emotions is stronger when PsyCap is lower. However, when PsyCap
is high, mindfulness does not have a significant effect on positive emotions.
Therefore, the compensatory effect of mindfulness on positive emotions occurs
only when PsyCap is low. A test of the simple slopes confirms that the relation-
ship between PsyCap and positive emotions is significantly different than zero
at the levels of mindfulness examined (t tests significant at p <.001).
Discussion
citizenship) that previous research has shown to directly and indirectly facili-
tate and enhance positive organizational change. In other words, in answering
the question posed in the title of the article, positive employees’ psychological
capital and emotions may indeed be an important contribution to positive or-
ganizational change.
In addition, employees’ awareness of their thoughts and feelings, namely,
mindfulness, was found to interact with PsyCap to predict positive emotions. In
the observed interaction, when PsyCap is low, high mindfulness seems to com-
pensate for this and individuals may still experience more positive emotions. It is
important to note that this effect is stronger at low levels of PsyCap, suggesting
that mindful employees have greater opportunity to become aware of thinking
patterns that challenge their ability to be hopeful, efficacious, optimistic, and re-
silient at work, especially during times of organizational change. Such awareness
may lead employees to intentionally choose more hopeful, efficacious, optimistic,
and resilient ways of dealing with stress and resistance to change.
Besides the impact that employee positivity through PsyCap and emotions
has on attitudes and behaviors relevant to positive organizational change and
the moderating role of mindfulness, another major finding from the study is
the mediating role positive emotions seems to play in the relationship between
PsyCap and the attitudes and behaviors. Given that research to date has mainly
considered the direct effects of PsyCap on employee work outcomes (e.g., Lu-
thans, Avolio, et al., 2007; Luthans et al., 2005), mediating mechanisms are just
starting to be explored to better understand how PsyCap may affect outcomes
in the workplace. Results from this study suggest that positive emotions may
mediate the relationship between PsyCap and at least the attitudes of cynicism
and engagement and the behaviors of citizenship and deviance. In other words,
employees who are higher in PsyCap are likely to have more positive emotions
and subsequently be more engaged and less cynical and also exhibit more or-
ganizational citizenship and less deviant behaviors. In addition, the results also
seem to indicate that PsyCap has a stronger direct and independent effect on
employee cynicism than the indirect effect of PsyCap through positive emo-
tions. Future research could replicate and extend these findings by examining
this meditational model over time during specific organizational discontinuous
events and incremental change processes (Tushman & O’Reilly, 1996).
Finally, the study’s findings build more evidence supporting a cognitive
mediation theory (see Lazarus, 1993, for overview; Weiss & Cropanzano, 1996)
of employee emotions in the workplace. That is, employees’ psychological be-
liefs, expectancies, and appraisals (i.e., hope, efficacy, optimism, resilience, or
PsyCap) may be a good potential source of positive emotions and subsequent
employee attitudes and behaviors related to positive organizational change.
Study Limitations
As with any empirical study, there are methodological limitations that need
to be recognized. First, no causal conclusions can be drawn. Specifically, nei-
ther experimental manipulation nor random assignment was part of the study
design. Thus, causal effects between PsyCap and positive emotions and be-
66 Avey, Wernsing, & Luthans in J. of A p p l i e d B e h a v i o r a l S c i e n c e 44 (2008)
tween positive emotions and the identified attitudes and behaviors cannot be
determined. For example, one alternative explanation from this study’s find-
ings could be that employees highly engaged in their work leads them to have
more positive emotions.
In addition to the direction of causality limitation is that the same source was
used to gather data on both independent and dependent variables. Podsakoff
and colleagues (2003) note that this common source bias can lead to inflated rela-
tionships. Thus, this study followed their recommendations to separate data col-
lection of variables over time. This procedure can help minimize but obviously
does not eliminate this limitation. However, recently some organizational re-
search methodologists have argued that the threat of common method variance
may not be as big a problem as once assumed (see Spector, 2006).
how PsyCap can be developed. Although this study only tested the relation-
ships between two measurable positive constructs on relevant attitudes and be-
haviors, the findings provide beginning support that positive employees may
indeed be a very important ingredient in positive organizational change.
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