The challenge of personal happiness Class 11 Managing in the 21st century- Changing paradigms for a globalizing world.

The challenge of personal happiness

Class 11

Managing in the 21st century-Changing paradigms for a globalizing world

Agenda Housekeeping General remarks Take away and managerial implications Relevance Survey of happiness research Life plan

Knowing thyself Asking the right questions

Housekeeping Late assignments

feedback Missing Assignments

Make sure you submit all assignments to drop box

Send email to John and me, when you do so.

Final assignment Special session: when?

Final AssignmentBenchmarking report

Section 1: presentation of framework (5-7 pages) Describe the organization of your choice and your relationship with it. Choose two challenges you want to look at and provide a rationale of

why you chose those 2. Present one or two frameworks that allow you to evaluate and

analyze how the organization of your choice is doing and provide recommendations to the organizational leadership.

Section 2:: (5-10 pages) Application of framework Evaluation how your organization is currently dealing with the

challenges chosen Analyze information on potential for improvement Provide recommendations that are strategic as well as practical.

Learning journey reflection

General Remarks

This course is not ‘real’. Too idealistic. Not mainstream Too philosophical

General Remarks

Challenges System Level

Environmental sustainability Social inequity

Organizational level Declining Stakeholder trust Low employee commitment Starfish challenges

Individual Level Personal ambitions /understanding people

Take away and managerial implications

Groups of 3

Take away and managerial implications

Groups of 3

Relevance of happiness challenge Assumptions of business as usual vs. new paradigm

Relevance Complexities increasing Increased questions about the meaning of it

all Most people rank happiness and leading a

meaningful life above pursuing wealth power and status (Diener & Ouchi, 2005)

Conflict of intrinsic and extrinsic motivation Problem with materialism and happiness

(Hedonic treadmill) => Managers need to understand intrinsic

motivations better.

Relevance To understand others better, need to

understand themselves better Know thyself (Oracle of Delphi)

Leadership necessary to deal with challenges

Entrepreneurial mindset crucial Authenticity (George, 2003) Developing authenticity through self

reflection

Relevance Self-reflection about:

The question of questions How can we help ourselves and others—individuals, communities,

and society—become happier? (Tal Ben Shahar)

The ultimate currency

Happiness is the meaning and purpose of life, the whole aim and end of human existence.” (Aristotle)

“If we were to ask the question: ‘What is human life's chief concern?’ one of the answers we should receive would be: ‘It is happiness.’ How to gain, how to keep, how to recover happiness, is in fact for most men at all times the secret motive of all they do, and of all they are willing to endure.” (William James)

“Whether one believes in religion or not, whether one believes in this religion or that religion, the very purpose of our life is happiness, the very motion of our life is towards happiness. (Dalai Lama)

Survey of happiness research

Historical BackgroundHappiness a policy objective:Life, Liberty and the pursuit of Happiness. (Declaration of Independence)

Current Policy Objective:GDP = consumption + investment +

government spending + (exports − imports) Main policy objective increase in GDP Main organizational objective increase in profit

Means have become an end (Diener& Seligman)

Survey of happiness research

Historical BackgroundLife, Liberty and the pursuit of Happiness. (Declaration of Independence)

Current Policy Objective:GDP = consumption + investment +

government spending + (exports − imports) Main policy objective increase in GDP Main organizational objective increase in profit

Means have become an end (Diener& Seligman)

Survey of happiness research

Industrial revolution focus on economic prosperity a good proxy for well being

Now, many people rank happiness and satisfaction ahead of money as a life goal

GDP or money as a proxy for well being is flawed

‚well-being‘ instead should become the policy focus

(Diener Seligman, 2004)

Discrepancy between economic and well being indicators

Societal conditions related to well being

Social capital (low divorce rates, high rates of membership in voluntary organizations, high levels of trust)

Democratic institutions Governmental effectiveness Stability Wealth Religious belief

(Diener & Seligman 2004)

National wealth and well being

Substantial correlation (.5/.7)(Diener & Biswas-Diener, 2002) Drop if controlled for quality of government

Above a moderate level (GDP > 10.000USD) of income there are only small increases in well being (Frey and Stutzer, 2000)

Unclear findings about correlation between rise in wealth and rise in well being (Zigzag)

rises in well being have not been remotely commensurate with increasing wealth

Same income in the US adjusted for inflation bought more happiness in 1973 than in 1995 (escalating material desires-“frustrated achievers“)

GDP as a measure of well-being very inaccurate

Money and Well Being

Money and Well Being Average well being higher in wealthy nations

than in poorer nations Within nations small positive r between income

and well being Individual well-being higher when income

higher than that of peer group, effect is cancelled out when all get higher income

Rising aspirations seem to nullify 70% of the income increase effect on well being

Productivity and Well-Being Job satisfaction and job performance r=.3

(Judge, Thoreson, Bono, And Patton, 2001) positive mood contributes to higher levels

of productivity Happy employees change jobs less, shirk

less, are more cooperative and are more productive

Well being of employees predicts customer satisfaction and loyalty

Cost of unhappy workers to the economic productivity is enormous

Social Relations and Well Being Life satisfaction best predicted by quality of

social relationships Fully functioning adults do not only need to

be loved but need to love also (Fromm, 1956)

Receiving support but also giving support is found to increase well being highly. (Brown, Nesse, Vinokur, and Smith, 2003)

Importance of marriage GDP does not include value of social

relationships unless they are manifested by consumption

What makes people happy? Living in a democratic and stable society that provides

material resources to meet needs Having supportive friends and family Having rewarding and engaging work and an

adequate income Being reasonably healthy and have treatment

available in case of mental problems Having important goals related to one’s values Having a philosophy or religion that provides

guidance, purpose and meaning to one’s life

(Diener and Seligman, 2004)

What makes people happy?

A balance of 1) The pleasant life2) The engaged life3) The meaningful life

4) When survival and growth needs are met.

( Seligman, 2002)

Idea of a Life plan Having important goals related to one’s values Having a philosophy or religion that provides

guidance, purpose and meaning to one’s life Self concordant goals

Aligned with personal interests and values Freely chosen goals ‘Want to’ vs. ‘Have to’ “What do you really, really want to do?”

Idea of Life Plan Vision /Mission Goals What are my passions What are my skills Where are my passions and skills needed How can I balance my survival and growth

needs How does my current job help/stand in the

way Next Steps

Something to consider... “People seeking greater well-being would be well advised to focus on the pursuit of (a)

goals involving growth, connection, and contribution rather than goals involving money, beauty, and popularity and (b) goals that are interesting and personally important to them rather than goals they feel forced or pressured to pursue.”

Sheldon et al. (2004)

“Contemporary researchers emphasize that it is the process of striving after goals—rather than goal attainment per se—that is crucial for happiness and positive affectivity.”

David Watson

Happiness is not about making it to the peak of the mountain, nor is it about climbing aimlessly around the mountain; happiness is the experience of climbing toward the peak.

“Happiness grows less from the passive experience of desirable circumstances than from involvement in valued activities and progress toward one’s goals.”

Myers & Diener

Becoming self concordant..

“is a difficult skill, requiring both accurate self-perceptual abilities and the ability to resist social pressures that may sometimes push one in inappropriate directions.”

Sheldon & Houser-Marco (2001)

Clear sense of direction

Written plan (Claypool & Cangemi, 1983) Specific goals (Ajzen & Fishbein, 1982) Setting lifelines (Tami, 1999)

goals in-spire goals are life-enhancing

Not too easy… The need for challenge (Bexton et al., 1954) Stretch goals (Locke, 2002) “The best moments usually occur when a

person’s body or mind is stretched to its limits in a voluntary effort to accomplish something difficult and worthwhile” (Mihaly Csikszentmihalyi)

Big, hairy, audacious goals (Collins & Porras, 1994)