Effects of Positive Practices on Organizational Effectiveness

Abstract

Emphasis on positivity in organizations in increasing, but the importance and credibility of a positive approach to change—exemplified by Positive Organizational Scholarship—remains controversial. More empirical evidence is needed showing that positive practices in organizations produce desirable changes in organizational effectiveness. Two studies—one in financial services and one in the health care industry—are reported which investigate the link between positive practices and indicators of organizational effectiveness. A positive practices instrument is developed, and evidence is found that positive practices do, in fact, predict organizational performance. More importantly, improvement in positive practices predicts improvements in certain indicators of effectiveness over time. The results are explained by the inherent amplifying, buffering, and heliotropic effects of positivity in human systems.