Organizational Dynamics, Vol. 33, No. 4, pp.

379–392, 2004 ISSN 0090-2616/$ – see frontmatter

ß 2004 Elsevier Inc. All rights reserved. doi:10.1016/j.orgdyn.2004.09.005
www.organizational-dynamics.com

The Virtuous Organization:

The Value of Happiness

in the Workplace
JOANNE H. GAVIN RICHARD O. MASON

THE IMPORTANCE OF Working in America

HAPPINESS AT WORK
Every society has jobs that must be done in
Our culture is founded on the concept order for it to survive and to improve its
of the American Dream. We work hard members’ lives. Consequently, work is an
our entire lives to attain it: the perfect important source of peoples’ well-being.
spouse, the perfect children, the perfect Today, however, many American workers
career, the perfect automobile, and the per- are spending much more time at work.
fect house in the suburbs. Work is the Recent surveys have shown that over 25
primary means by which we acquire million of the 130.5 million workers in Amer-
the resources needed to realize this Dream. ica work 49 or more hours a week. Over 10
Pursuit of the Dream influences everything million spend 60 h or more at work.
we do. We read about it in a vast array Although the average workweek now hovers
of life style magazines. We watch prime around 34 h, a recent study conducted by the
time television programs depicting it. We Organization for Economic Cooperation and
think about it. We covet it. Yet many who Development shows that Americans still
aspire to this ideal or even those near work longer hours than their counterparts
achieving it do not experience the happi- in other countries. The average American
ness or feelings of success for which they worker spent 1,815 h on the job in 2002.
long. People are still wondering, ‘‘What Our closest national competitor was the Uni-
more can there be?’’ Or, with Peggy Lee ted Kingdom at 1,707 h. German workers log
‘‘Is that all there is?’’ Something is missing an average of only 1,444 h annually. There
in our lives. figures are reinforced by Juliet Schor’s
Aristotle argued that the greatest human research. In The Overworked American she
good is to live a good life. In a good society, estimates that the average employed person
all of its members flourish. ‘‘Happiness’’ is in America currently works 163 h more than
the modern word, usually translated from he or she did in 1969. That is the equivalent of
the original Greek (eudaimonia), used to one month’s additional work. These observa-
describe the good life. It is accomplished tions raise some key questions. Is all of this
by living well and doing well over time. added work improving the workers’ situa-
The something that is missing in many peo- tion? Contributing to their happiness? Are
ple’s lives today is happiness as Aristotle people better off? Are they really achieving
conceived of it, and the conduct of the mod- the Dream?
ern workplace is a major reason why it is Other surveys show that as our work hours
missing. are increasing our leisure time is concomi-
379
tantly decreasing. Americans spend only debilitation’’—and in effect dehumanizes
about 20 h a week in pursuit of leisure activ- them. In a speech at the University of North
ities. In 2003, American workers returned an Carolina, Federal Reserve Chairman Alan
average of 1.8 days apiece, worth almost $19.5 Greenspan referred to this outcome as creat-
billion, in unused vacation time to their ing a widespread ‘‘perception that skills are
employers. This lack of leisure time clearly becoming redundant at a rate unprecedented
gives workers fewer opportunities to recreate in human history.’’ Because these workers
themselves and to seek new meaning in their may be more readily replaced by machines or
lives. It also makes it more important for other workers—perhaps less skilled and
individuals to find fulfillment during the time likely lesser paid workers—their job security
they spend at work. is undermined while their bargaining power
in the workplace is being weaken.
Productivity in the Workplace
Stress on the Job
Since the U.S. economy took off during the
early 1970s, national productivity has Another pervasive unfavorable outcome
increased sharply. Whereas the national of employing these productivity-enhancing
average annual productivity gain from practices is a sharp increase in the levels of
1870 to 2003 was 2.3%, from 1995 to 2003 stress people experience at work. Indeed, the
productivity increases surged to a rate of practice of having job tasks timed and mon-
3.2% per annum. In The New Ruthless Econ- itored and their status communicated to
omy: Work and Power in the Digital Age, inter- management by means of signals such as
national correspondent Simon Head green or red lights—a technique used on
attributes much of this productivity gain to automobile assembly lines and in digital call
extended use of two things: new technology, centers—is frequently referred to as ‘‘man-
especially information technology, and cor- agement by stress.’’ The results are disturb-
porate work practices based on scientific ing. For example, Prevention magazine found
management and mass production concepts. in a survey conducted in 1996 that the pro-
The new bywords are ‘‘lean production,’’ portion of American workers experiencing
reengineering,’’ and ‘‘enterprise resource high levels of stress on a weekly basis was a
planning’’ (ERP). The Federal Reserve Bank disconcerting 75%. This is up substantially
of Dallas’ 2003 Annual Report, A Better from 55% who reported feeling ‘‘great stress’’
Way: Productivity and Reorganization in the in the magazine’s 1983 survey.
American Economy, further documents And the effects of stress do not stop at
Head’s contention. The practices implemen- work. They spill out into the rest of the work-
ted in the current workplace are based on ers’ lives. In a recent survey of British work-
the simplification, standardization, measure- ers regarding job stress, eight million
ment, monitoring and control of job tasks, workers complained that the pressure of
and they accordingly serve to strengthen work gave them headaches, and 12 million
hierarchical relationships between employ- said that they get bad tempered and irritable
ees and their managers. That is, they enhance at home as a result of their workday experi-
managerial power. One key result of the ence.
application of these managerial techniques Job stress is felt when the demands of the
is a speedup in the functioning of business work exceed the workers’ belief in their
processes that leads to increased labor pro- capacity to cope. Contemporary theory states
ductivity. that stress on the job increases whenever
But there are several other less salutary something in the work environment thwarts
outcomes as well. One is that the increased workers’ abilities to achieve their personal
use of these practices renders many workers’ goals. That is, when working conditions do
jobs ‘‘dumbed down’’—Head calls it ‘‘skill- not contribute to workers’ Aristotelian hap-
380 ORGANIZATIONAL DYNAMICS
piness and, instead, threaten their sense of different walks of life—actors to office work-
competency and self-esteem. According to ers, teachers to waiters, hookers to sanitation
these theories, two chief stressors stand truck drivers—Terkel was able to provide a
out: job-specific factors and organizational panoramic snapshot of how Americans
factors. Job-specific stressors include long viewed their work. A grave digger, for exam-
working hours, high workloads, conflicting ple, explained why he took care to dig such
or ambiguous requests for work to be done, straight lines and square edges: ‘‘A human
and work versus family conflicts. Organiza- body is goin’ into this grave. That’s why you
tional stressors include job insecurity, inter- need skill when you’re gonna dig a grave.’’
personal conflicts, major changes in working Work, for most of Terkel’s interviewees, was
conditions—including installing new tech- a key source of pride and meaning in their
nology—and perceived injustices in the lives.
workplace. As related above, all of these Many organizations have ignored this
stressors are to be found in the contemporary fundamental lesson. When a workplace is
workplace. designed and managed to create meaning
One of the central dysfunctional outcomes for its workers they tend to be more healthy
of stress is dissatisfaction with one’s job. In and happy. Healthy and happy employees
recent years, job satisfaction has continued to tend to be more productive over the long run,
decline. A 2003 study by the Conference generating better goods and more fulfilling
Board reports that less than 49% of workers services for their customers and the others
are satisfied with their jobs. This was a drop with whom they interact and do business.
from 59% reported in 1995. What does it These three things—health, happiness, and
mean when more than half of workers are productivity—are the essential ingredients of
dissatisfied with their jobs? a good society. Improvement in productivity
Meanwhile, headlines are filled with alone, which is almost the sole emphasis of
reports of executives receiving multi-million many organizations today, is not enough.
dollar pay packages and extravagant bene- It seems clear that if there is any hope for
fits, justified in large measure by the profits people to find general happiness in their lives
generated by productivity gains. The average today, they must be happy at work. Work by
worker, however, has not fared so well. itself, of course, cannot make a person happy,
Worker pay has not kept pace. During the but a person cannot be genuinely happy if he
last three years (2000–2003) corporate profits or she is unhappy at work.
improved by over 80%, allowing senior Just as individuals need role models to
executives to award themselves significant guide their development, so do organiza-
pay increases. In contrast, workers’ wages tions. In our studies we have become
rose by only about 5%. Pay is not the only acquainted with two companies that are
motivator or satisfier, but it is nevertheless addressing successfully the challenging
one of the key hygiene factors affecting work- situation outlined above. They strive to cre-
ers. Importantly, notions of justice and fair- ate a happy work environment, one that
ness are also an integral part of the Dream results in only moderate employee stress.
and essential components of happiness. Per- For the most part their employees are happy
ceived unfairness in pay is a demotivator. at work and are healthy, productive and
responsible citizens. The following section
summarizes some of the attributes of these
exceptional companies. Next, the concept of
THE VALUE OF WORK
happiness, deriving from Aristotle, is dis-
Work, at its core, is a search for ‘‘daily mean- cussed as it pertains to work. This is followed
ing as well as daily bread.’’ So found author by a brief discussion of recent developments
Studs Terkel in his classic 1972 book Working. in positive psychology, a new approach to
By interviewing men and women from many the science that helps people fulfill their
381
needs and helps promote happiness. In the
concluding section some lessons gleaned for
TABLE 1 FORTUNE: BEST
improving happiness in work are brought COMPANIES TO WORK FOR RANK
together. THE CONTAINER TDINDUSTRIES—
YEAR STORE—TCS TDI
2004 3 7
2003 2 7
TWO COMPANIES WHERE 2002 2 4
HAPPINESS COUNTS 2001 1 6
2000 1 4
*
Near the corner of Valwood Parkway and 1999 2
Diplomat Drive in Dallas lies the headquar- 1998** *
5
*
ters of two companies in very different Was not evaluated.
**
1998 was the first year of rankings.
industries. One central commitment they
share, however, is a passion for creating a
healthy, happy and productive workplace.
The Container Store (TCS) is a chain of 20 placement on this important indicator (see
specialty retail stores that sells just about Table 1).
anything you need for organizing your Fortune authors Robert Levering and
home, office, car or indeed your life. TDIn- Milton Moskowitz explain how the firms
dustries (TDI) is a basically a construction are evaluated:
company that works on new and existing
commercial, industrial and large multifamily ‘‘The most important factor in select-
buildings. It provides mechanical and elec- ing companies for this list is what
trical construction and facility management employees themselves have to say
services in areas such as heating, ventilation, about their workplaces. Some
air conditioning, plumbing, electrical, pro- 46,526 randomly selected employees
cess and high purity piping, automation sys- from 304 candidate companies filled
tems, and refrigeration. Periodically, Jack out an employee-opinion survey (the
Lowe, Jr., Bob Ferguson, or Ben Houston— Great Place to Work Trust Index, an
the senior executives at TDIndustries—and instrument created by the Great
some of their ‘‘partners’’ meet informally Place to Work Institute in San Fran-
with Kip Tindell, chief executive officer cisco). Nearly half of them also gave
(CEO) and president, or Garrett Boone, chair- us written comments about their
man, of The Container Store and some of workplaces. Each candidate com-
their associates to exchange ideas about their pany also filled out a questionnaire
unique philosophies of management. All are detailing its people policies, prac-
fervent in their belief that success begins with tices, and philosophies. We evalu-
a deep respect for their employees, and that ated each company on both the
this respect must extend outward to their employee surveys and the company
customers, suppliers and community mem- questionnaires, with the employees’
bers. opinions accounting for two-thirds
One measure of the success of their com- of the total score.’’
mitment is how well both firms have placed
in Fortune magazine’s ‘‘The 100 Best Compa-
The Container Store
nies to Work For.’’ TCS has ranked in the top
three for the last five years; TDI has ranked in Why has this small retailer performed so
the top seven since 1998 when the rankings well in meeting the health and happiness
began. TCS has been ranked first twice; needs of its employees? To begin with, TCS
TDI reached second place in 1999. Both orga- pays well. Sales people average over $36,000,
nizations show remarkable consistency of among the highest pay scales in retail. Ben-
382 ORGANIZATIONAL DYNAMICS
efits are substantial. For example, the com- six Foundational Principles to guide every-
pany makes a 100% match for an employee’s one every day. These are, in summary:
401(k), up to 4% of her or his pay. Domestic
partners also receive benefits. But this is only 1. ‘‘Fill the other guy’s basket to the
a small part of the story. The deeper reason is brim. Making money then becomes
TCS’s culture of mutual respect. Ninety-four an easy proposition.’’ TCS encourages
percent of the employees told Fortune that employees to use their imagination to
they felt they ‘‘made a difference’’ by work- craft creative and mutually beneficial
ing for the company. Ninety-eight percent relationships with its customers, ven-
said, ‘‘I think that TCS is a friendly place.’’ dors and employees by doing every-
The reason? Ninety-seven percent stated that thing possible to ‘‘fill their baskets to
‘‘people care about each other here.’’ Conse- the brim.’’
quently they encourage their friends to 2. ‘‘Man-in-the-desert.’’ Based on the
apply. Over 40% of the company’s new hires observation that a thirsty man reach-
result from referrals made by existing ing an oasis needs more than just a
employees. drink of water, TCS employees are
implored to ‘‘astonish’’ their custo-
Education and communication. The com- mers. They work not just to fulfill their
pany is committed to employee education customers’ immediate needs but also,
and communications. During their first by exploring the broader context of
year employees receive a venerable 235 h of those needs, to exceed their custo-
formal training. The average for all TCS mers’ expectations.
employees is 162 h per annum. Uniquely, 3. The exceptional human being formula.
after 10 years employees are encouraged to ‘‘1 average person = 3 lousy people.
take a sabbatical. The company’s books are 1 good person = 3 average people.
transparent. Everyone knows where the com- And, 1 great person = 3 good people.’’
pany stands financially at any given time. In Therefore, a great person is equivalent
fact every employee is expected to know to about 9 lousy ones. TCS seeks great
TCS’s current sales information at the outset people and pays them well based on
of every day. This is so that he or she can make the belief that the company realizes on
better business decisions as the day pro- average three times the productivity
gresses. that average employees generate. TCS
Betty Murray is an information systems accordingly can afford to pay them
director at the Dallas headquarters. She is about twice as much as the going rate.
also a part-time yoga instructor who teaches 4. ‘‘Intuition does not come to an unpre-
a free session once a week to any local TCS pared mind. Your need to train before
staff who want to participate. About 25% it happens.’’ This is why TCS is so
now join her in the relaxation, bending and committed to education and training.
stretching sessions. ‘‘It’s good mental prac- It is crucial for developing each
tice that can be applied to physical pur- employee’s ability to create unique
poses,’’ she explains. Yoga is just one of solutions to customer’s needs and to
the stress reducers the company offers. Also solve other stakeholder’s problems.
available are stretching classes, monthly 5. The merchandising formula. ‘‘The
chair massages, and an online exercise and best selection [of products] anywhere
nutrition diary that’s personalized to every + the best service anywhere + the
employee. best—or equal to the best—pricing
While many companies require employ- in our market area.’’ TCS focuses on
ees to consult large policy books when deci- excelling on all three key customer
sions need to be made or to follow buying factors—selection, service
predetermined scripts, TCS depends on just and pricing—simultaneously.
383
 6. ‘‘Air of excitement!’’ Three steps into focused values of the owners. The quest for
the door customers or visitors should excellence pays off in human terms, as well
sense that they have arrived at a dif- as financial terms. Employees love working
ferent place, one that adds drama and in this company that celebrates excellence,
fun to the serious business of satisfy- and customers love the experience of shop-
ing their needs. ping in the stores.’’

Living by these principles engenders TDIndustries

respect on the part of employees, customers,
‘‘We are committed to providing out-
vendor and others. Respect begets trust and
standing career opportunities by exceeding
vice-versa. CEO Kip Tindal explains:
our customers’ expectations through contin-
uous aggressive improvement.’’ This is TDI’s
‘‘TCS’ [Foundational Principles]
vision. Every employee is exposed to it from
empower our employees to serve
his or her very first moment on the job. The
the customer in the true sense of
fact that the company lives the vision every
the word. Employees are trusted to
day is one of the reasons, one partner told
make whatever decision necessary to
Fortune, ‘‘this company makes you feel like a
help a customer. Even if it’s repla-
human being again.’’
cing a customer’s bag of merchan-
TDI’s stock is held by its employees. The
dise at no charge that she left in the
30 top managers and the company founder’s
parking lot of our store—as one of
widow own about 25% of the stock; lower-
our Chicago area store employees
level employees own the rest. No one owns
did—without even talking to the
more than 9%. Differences in ownership
manager. Or, there’s the time when
appear to have little effect on the respect
one of our employees accidentally
accorded to each of the partners. Ninety-
ripped a customer’s car seat loading
one percent of the company’s employees
product and immediately dipped
responded in the Fortune survey that they
into the cash register to pay for the
were treated as full members regardless of
repair—again without manager
their position. Consistent with TDI’s open
approval. And I just love the story
book policy, a monthly business meeting is
of our employee who was ap-
held to inform all partners about the com-
proached in an airport by a stranger
pany’s financial condition and results.
and asked to deliver her husband’s
Health insurance premiums for a generous
left-behind wallet in the destination
care plan are indexed to income: the more an
city simply because she had a TCS
employee makes, the more he or she pays. An
shirt on and the customer knew a
entry-level worker can cover his or her family
TCS employee was someone she
for about $25 a week. Employees get two
could trust.’’
weeks of paid personal time off after one
TCS was one of 14 companies that Dr. year’s service. They receive an astonishing
Leonard Berry identified as providing 12 weeks at full pay after three years. New
exemplary service through values-driven hires are given free work boots. Education is
marketing practices. In Discovering the Soul a paramount concern at TDI. In addition to
of Service, he writes ‘‘TCS is one of America’s their participation in numerous in-house
most successful retail chains because it has education and training programs, employees
employees who delight in helping customers are allowed 100% reimbursement of tuition,
solve problems—and who possess the free- fees, and books at any state-supported col-
dom and confidence to do so. TCS has been lege.
notably successful in attracting exceptional In Fortune’s 2003 survey 85% of TDPart-
employees who share the strong customer- ners agreed with the statement ‘‘Manage-

384 ORGANIZATIONAL DYNAMICS

ment is honest and ethical in its business mysteriously disappears. Upon his exit the
practices.’’ With respect to fair treatment of group almost immediately falls apart, and
employees regardless of age, 90% agreed the the journey is quickly abandoned. Years later
company was fair; with respect to race, 85% one of the party is admitted into ‘‘The Order’’
agreed; sex, 92% agreed; and sexual orienta- only to discover that the person whom he
tion, 91% agreed. These results compared had previously known as Leo the servant
very favorably with all of the other compa- was in fact the head of the organization
nies the magazine surveyed. Nevertheless, and revered as its great and noble leader.
managing partner Jack Lowe, Jr. is not satis- The senior Lowe was entranced by the tale
fied. ‘‘Of course, if 85–95% of our Partners and the essential lesson Greenleaf drew from
agree with these statements,’’ he observes it: leaders are first servants of those they lead.
with both pride and concern, ‘‘it is equally That is, the best leadership is provided by
true that about 15% disagree. And that means those with both a compelling vision and a
we have work to do!’’ desire to serve others first. Jack Lowe, Sr.
acquired copies of the essay for all of his
Servant leadership. TDI conducts all of its employees. (Greenleaf phoned him at the
business based on a deeply held philosophy time to find out why a small company in
of servant leadership. Robert Greenleaf, who Dallas was the largest purchaser of his essay.
originated the idea, describes the concept as Soon thereafter they became lifelong friends.
follows: Jack Lowe, Jr. currently serves as president of
the Greenleaf Foundation.) All TDI employ-
‘‘It begins with the natural feeling ees at the time, most of whom had not even
that one wants to serve, to serve first. graduated from high school, were invited to
Then conscious choice brings one to read through the essay and, then, to gather at
aspire to lead. The difference mani- the Lowe’s house—Mrs. Lowe served break-
fests itself in the care taken by the fast—to discuss its meaning for their work
servant—first to make sure that and personal lives. This became a monthly
other people’s highest priority needs ritual and, with appropriate changes has
are being served. The best test, and become a corporate tradition.
difficult to administer, is: do those In the ensuing years, the company has
served grow as persons, do they grown to about 1,400 employees. Jack Lowe,
while being served, become heal- Jr. and other top managers now meet at the
thier, wiser, freer, more autonomous, corporate headquarters with every partner at
more likely themselves to become least once every two years in small group
servants? And, what is the effect sessions of about 25 called ‘‘Partner Round-
on the least privileged in society, will tables.’’ They enjoy breakfast, and for about
they benefit, or at least, not be further 3 h discuss anything that is on their minds as
deprived?’’ well as give and receive input on specific
issues that have arisen. During these meet-
In 1971 TDI’s founder Jack Lowe, Sr. ings TDI’s culture and the vision and values
stumbled upon Greenleaf’s classic essay philosophy is thoroughly reviewed and
‘‘The Servant as Leader.’’ Greenleaf was debated. Other ideas for managing—such
inspired by Hermann Hesse’s novel Journey as those of Peter Drucker and Meg Wheat-
to the East, in which a young man named Leo ley—have been added, but the spirit remains
accompanies a band of men on a long journey the same as it was during the original Lowe
sponsored by ‘‘The Order.’’ Leo performs all home sessions. In addition, at least once a
of the group’s necessary menial chores. All month every partner meets with others in his
during the journey he sustains their morale or her department and/or in company wide
with his joyfulness, uplifting spirit and jubi- sessions to discuss how they can work
lant singing. The trip proceeds well until Leo together to make the company better and
385
enrich each other’s personal lives. Today any visit any member of the leadership team at
TDPartner who supervises at least one per- any time and to discuss anything that con-
son must go through training in servant cerns them. And this is not hard to do. At
leadership, and every new employee is given TDI, everyone works out of the same stan-
a copy of ‘‘The Servant as Leader’’ essay and dard open cubicle space, including the CEO.
expected to read it. Jack Lowe, Jr. jokingly refers to this as the
Servant leadership is at the heart of TDI’s company’s ‘‘no-door’’ policy.
business theory, which is based on a meta-
phor of the construction industry in which Trust. Establishing a culture of trust has
they work. A building is erected in steps. enabled TDI to deal effectively with several
Accordingly, so too must an ethical corporate major challenges. A touching illustration
culture. Servant leadership in TDI’s practice took place in the late 1980s, when the com-
is the essential process for preparing a firm, pany faced its first financial loss in over 30
bedrock site upon which to build. This pro- years. The construction market had essen-
vides the necessary grounding for laying tially collapsed and every major bank in
down a foundation of trust. Trust, then, Texas, including TDI’s bank, had failed. As
undergirds four key ascending pillars: con- a result TDI owed a demanding Federal
tinuous learning, shared commitment, Deposit Insurance Corp. (FDIC) about 16
authentic diversity, and strategic planning. million dollars which it didn’t have. The
These pillars, in turn, support a canopy com- leaders did everything they could to keep
munity of powerful trusting partners. The the company afloat at the time, but to no
partners work together to delight their cus- avail. Bankruptcy was in the offing. After
tomers. Satisfied customers result in business several unsuccessful efforts to borrow the
success, which further reinforces the commu- money or raise capital, TDI’s leadership, as
nity of powerful, trusting partners. This vir- a last resort, asked its partners to consider
tuous cycle may be summarized: servant investing their own retirement funds into the
leadership ! trust ! continuous learning, company. This was a lot to ask. Each parti-
shared commitment, authentic diversity, cipating partner would be risking a large
and strategic planning ! powerful trusting proportion of his or her personal resources
partners (i.e. all employees) ! delighted cus- to help the company return to solvency.
tomers ! business success ! ! more Almost every partner, however, said ‘‘yes.’’
powerful trusting partners ! ! more deli- Collectively, they contributed over
ghted customers ! ! more business success, $1,250,000 from their retirement accounts
etc. The cycle is reinforced by constantly main- (about 30% of their aggregate accumulated
taining a culture of trust, service, quality, and funds at the time) and invested it back into
learning. By means of meetings, surveys and the company. In less than a year TDI recov-
many different communication techniques ered. Subsequently, the FDIC was paid back
TDI communicates and tests its business the- in full.
ory and other basic elements of its values and Partners participate actively in the design
vision as it affects all partners. For example, and conduct of their own training. When the
annually all partners are required to rate their company wanted to develop materials in
supervisors anonymously in the areas of com- such sensitive areas as harassment, use of
munication, servant leadership, productivity, corporate resources, and how a manager
people building, motivation and quality. The should deal with an employee who has
results of this survey and others are fed back to made a significant mistake, self-selected
relevant parties and summaries are discussed teams were formed to study each problem
during the frequent corporate meetings. and formulate solutions. The teams became
Consistent with the servant as leader con- so captivated by the issues and their impor-
cept TDI has always maintained an open tance to the company that they decided to
door policy and encourages any partner to write scripts depicting good and bad prac-
386 ORGANIZATIONAL DYNAMICS
tices. Other groups were equally energized. TDIndustries, the world would only
As a result, the teams decided—with man- need half the attorneys, judges, and
agement’s full support—to act out the courtrooms.’ When you search for
scripts and to video each session. Also good, you’re more likely to find
caught up in the excitement, management good. When you expect the best of
sponsored an ‘‘Academy Awards’’ session people, they rise to your highest
at one of the company’s Friday morning expectations!’’
meetings. A variety of awards were given
in such areas as best script, best production,
HAPPINESS
most humorous, best actor, best actress and
the like. The awards session was a fun-filled Aristotle, too, sought for the good. He taught
event complete with ribbing and jousting, that human living is best characterized as a
but it also was a highly effective means to longing and desire for a good life. People
communicate the company’s culture and want to do good things, to live well, to do
values. The videos are still used for training, well. He and other early Greek philosophers
and partners still take delight in pointing insisted that human life is by nature an inter-
out one of their own in the role of an actor. personal and political affair. An individual is
Today a TDI manager may well learn les- not a separate, exclusionary self that is some-
sons on how to manage by viewing a video how distinct from other selves or from his or
written, produced and acted by one of his or her social and political environment. Rather,
her own employees. a person is a complex self, a self that is at once
Engaging employee teams to solve impor- an individual constituted by his or her deci-
tant corporate problems has become a stan- sions and choices, and also a social being
dard operating practice at TDI. CEO Lowe, constituted by his or her interpersonal and
who graduated magna cum laude from Rice political relationships. ‘‘My good,’’ therefore,
University, doesn’t believe he has all the is inextricably interwoven with the good of
answers. For example, for years he managed others and of the community as a whole.
the company’s healthcare plan only to have Consequently, an essential theme in the
the total cost continue to go up every year. So Greek’s teachings was that in order to
he brought together a diverse group of part- achieve the good life people need to live in
ners to form a Healthcare Quality Team. a good society, one that nurtures and sup-
With considerable pride and humility Lowe ports them and helps them flourish. This
reports that once the team took over owner- precept still holds. Today, as recounted
ship, TDI saved millions of dollars while at above, large numbers of people in our society
the same time improving all employees’ spend a considerable part of their lives work-
overall coverage and the perceived fairness ing in organizations. Because we are now
of the premium system. spending so much time at work and devote
Jack Lowe, Jr. reflects: so much of our energy and attention to it, our
organizations have become the source of
‘‘Until someone has been in our many of our interpersonal, social and poli-
work environment, where the indi- tical relationships. Aristotle’s argument must
vidual is valued, encouraged, chal- now be expanded to include: ‘‘In order to
lenged, guided, given freedom to achieve the good life people must work in
perform and is loved, it is difficult good organizations.’’
to comprehend the power of the trust No one can work and mature in an orga-
that exists here. People often com- nization without internalizing aspects of it.
ment that TDIndustries ‘feels’ differ- Organizations are in large measure our kee-
ent the minute they walk through the pers and our experience in them serves to
door. As our attorney expressed shape who we are. As we have seen, on the
recently, ‘If all businesses were like one hand working in organizations can be
387
overly confining, as appears to be the case (Consistent with his times, Aristotle
with the more than half of American workers believed that children, slaves, and
who are dissatisfied with their jobs. The work women could not achieve true happi-
reductionist techniques of simplification, ness because they lacked the freedom
standardization, measurement, monitoring necessary to control their lives. Over-
and control employed by many organiza- coming this has been one of great
tions serve to isolate the individual from struggles of humankind ever since.
others in the workplace and often to mini- Companies like TCS and TDI with
mize his or her unique human contribution to mature diversity policies have helped
the job. On the other hand, working can be in the struggle.)
made uplifting—as appears to be the case 2. Knowledge. Happiness requires infor-
with companies like TCS, TDI and other of mation, knowledge and the ability to
the best places to work. Both TCS and TDI reason. If workers are allowed to
pursue quality with empathy. They work make important decisions they need
hard to be more efficient and to provide to know about the business, how the
the highest levels of service, but they do it world works and something about
in a way that not only preserves but also human psychology. Importantly, they
enhances their employees’ dignity. If work- need to know how to make intelligent
ers are going to enjoy the good life, to be truly decisions by means of practical rea-
happy, they need to work in good organiza- soning. This is one reason why TCS
tions like these. and TDI have open books and provide
Happiness is a holistic ideal. It speaks to transparent information to their
the whole person, one whose whole life is employees. It is also the justification
complete in the sense that his or her reason- for these companies’ exceptional com-
able desires are fulfilled over his or her life- mitment to communications, educa-
time. He or she is secure in the sense that tion and training.
others will rally around to aid in the event 3. Virtue. Happiness requires moral
that misfortune strikes. Both TCS and TDI character. Interestingly, neither TCS
have many heartwarming stories to tell about nor TDI have formal ethics or charac-
how their employees gave of themselves to ter development programs, yet each
come to the aid of an employee or close has been given prestigious ethics and
relative who was seriously ill or suffered related awards. Ethics and character
from some natural disaster such as a flood building permeate everything they
or tornado. do. Moral training comes in large part
Happiness, according to the Greeks, is not from the corporate visions and foun-
primarily rooted in receiving sensual plea- dational principles that all employees
sure, honors or money; although these may learn, assimilate and continue to prac-
be a contributing part of a greater pattern of tice. This moral guidance, coupled
positive factors. Rather, happiness derives with the responsibility to make deci-
from three key defining characteristics: sions, helps develop the moral char-
acter and intellectual expertise
1. Freedom. Happiness mostly results necessary to make good decisions.
from an individual’s ability to make Making good decisions results in
choices. Happy people are those who authentic and justifiable pride—self-
can think independently and are free esteem, self-respect, self-approval,
to choose. Accordingly, they control a self-admiration, self-actualization.
large measure of their own fate. That All of this is essential for reducing
is why TCS, TDI and other best places the negative effects of stress, for
to work give their employees a great enhancing one’s ability to cope and
deal of autonomy and discretion. strong feelings of self-efficacy. For

388 ORGANIZATIONAL DYNAMICS

 Aristotle this type of pride was the The goal of positive psychology is to help
‘‘crown’’ of the virtues because ‘‘it transition the discipline from relying primar-
enhances them and is never found ily on a healing perspective to one that
apart from them.’’ Importantly, exer- emphasizes prevention. It is focused at three
cising the virtues is a person’s route to levels: subjective experiences (feelings), indi-
true happiness. vidual traits, and institutions or organiza-
tions. At the subjective level the new
Aristotle wrote over 2000 years ago. In approach to the science seeks to place more
recent years a group of psychologists, stimu- value on enriching human experiences such
lated in part by his thought, have sought to as ‘‘well-being, contentment, and satisfaction
bring more modern tools to bear on the pur- (in the past); hope and optimism (for the
suit of happiness. future) and flow and happiness (in the pre-
sent).’’ Flow is used here in Csikszentmiha-
lyi’s conception to mean that people have a
continuing sense of absolute involvement in
POSITIVE PSYCHOLOGY
what they are doing and are focusing their
In January 2000, a special issue of American total attention on the activity. This high level
Psychologist was dedicated to furthering the of active participation results in a loss of self-
concept of positive psychology. According to awareness. Flow, then, is a condition—fre-
the authors, since the development of psy- quently of exhilaration—that people feel
chology and psychiatry at the beginning of when they are thoroughly involved in their
the 20th century, the primary focus of these jobs. At the level of the individual, positive
disciplines has been on recognizing and heal- psychology seeks to develop positive traits
ing the symptoms of mental disorders. This such as ‘‘the capacity for love and vocation,
focus on healing has been somewhat success- courage, interpersonal skill, aesthetic sensi-
ful in relieving suffering but has done little to bility, perseverance, forgiveness, originality,
reduce the growing number of people with future mindedness, spirituality, high talent,
depression or other psychological pro- and wisdom.’’ Finally, at the organizational
blems—some of which derive from job- or group level positive psychology ‘‘is about
induced stress or dissatisfaction. In effect, the civic virtues and the institutions that
our society has generated stress and its move individuals toward better citizenship:
related disorders faster than it has discov- responsibility, nurturance, altruism, civility,
ered cures or preventive measures. moderation, tolerance, and work ethic.’’
The positive psychology movement’s Contributors to the special issue contend
aim is to help people embrace and enjoy life that psychologists should devote more of
as they live it. These psychologists are trying their efforts to helping people fulfill their
to help individuals find genuine happiness in personal and communal needs and desires
their everyday lives and not waste their lives and to leading more successful lives. That is,
dreaming of something they never seem to psychologists should help people achieve
achieve. In his book Authentic Happiness, happiness. To attain this state people must
Martin Seligman (who with Mihaly Csiks- live in good communities and work in good
zentmihalyi edited the special edition) tells organizations. They must be able to recog-
us that if we can discover a calling or some- nize and experience—perhaps even cher-
thing that links us to a greater good we tend ish—feelings of well-being, contentment
to be happier. Organizations like The Con- and satisfaction with their pasts. They should
tainer Store and TDIndustries have done just feel happiness in the present and be optimis-
that. They have given their employees an tic about their future. That is, they must
opportunity to spend their days not only develop the character traits associated with
earning a good living but also feeling as if Aristotelian pride. A positive psychology
they are contributing to the ‘‘greater good.’’ develops ways and means to help people
389
experience worthy emotions like personal in people’s work that Studs Terkel’s workers
happiness, both within themselves and found so essential in the quest for a good
within the broader social context in which life.
they work and live. The American Dream does not, in the
final analysis, rest on materialism. Good
spouses, children, careers, automobiles,
houses, cell phones, PCs, televisions and ‘‘a
CONCLUSION
chicken every Sunday’’ are merely outward
If we are to create and maintain healthier, manifestations of our citizens’ deeper inward
happier and more productive workplaces, aspirations for a good life. What is ultimately
organizations are well advised to place more good is not any one particular good but an
emphasis on positive psychology. In recent overriding, all encompassing good. It is not
years economic productivity has been wrung an external good such as income or wealth:
out of the average worker, in large measure, not a physical good such as sensual pleasure:
at the cost of his or her health and happiness. not even an intellectual good such as knowl-
This trend towards pathological and dys- edge and skill. The summum bonum, Aristo-
functional effects needs to be reversed. Our tle’s life goal of happiness, is whatever makes
society should set as its primary goal secur- one’s whole life as a human being good. It is
ing the good life as Aristotle envisioned it, intrinsic and sought in its own right. ‘‘Hap-
and we should re-energize ourselves around piness,’’ Aristotle famously said, ‘‘more than
Jefferson’s inalienable human rights of ‘‘life, anything, is absolutely final. For we always
liberty and the pursuit of happiness.’’ For our choose it for the sake of itself and never for
industrial qua information society this means the sake of something else . . .’’ Organizations
that organizations as well as political institu- have the capacity to create healthy and
tions must be designed and managed so that happy as well productive lives for their
they promote happiness for all of their mem- members, if only their leaders commit them-
bers. The Container Store and TDIndustries selves to it.
may serve as role models in this pursuit.
These companies are among the few
that have developed philosophies and meth-
ods that instill the kind of ‘‘daily meaning’’

390 ORGANIZATIONAL DYNAMICS

 SELECTED BIBLIOGRAPHY

Summaries of the rankings and comments on the Nature of Legitimate Power and Greatness
The Container Store and TDIndustries may (New York: Paulist Press, 1977). A more
be found in Fortune’s Special Report ‘‘The 100 recent review is contained in The Power of
Best Companies to Work For’’ (January 12, Servant-Leadership, edited by Larry C. Spears
2004) and in comparable issues ranging back (San Francisco: Berrett-Koehler, 1998).
annually to 1998. Both TCS and TDI have For additional information on the Amer-
received the Greater Dallas Ethics Award ican worker we suggest: Studs Terkel’s Work-
given by the Society of Financial Service ing (New York: New Press, 1997), Simon
Professionals in conjunction with Southern Head’s The Ruthless Economy (New York,
Methodist University’s Cox School of Busi- Oxford, 2003), and Juliet B. Schor’s The Over-
ness and Maguire Center for Ethics and Pub- worked American (New York: Basic Books,
lic Responsibility. The companies’ entry 1993). For information on current workforce
forms contain considerable relevant informa- issues contact the Bureau of Labor Statistics
tion. Over the last decade we have met infor- or a variety of organizations, such as The
mally and occasionally for formal interviews Conference Board and the Organization for
with many members of each organization Economic Cooperation and Development,
including their leadership. This experience who conduct employment surveys. Survey
too was a source of background information. information about how Americans work and
The TDI history is told in A Partnership of the live can also be found on the internet at such
Spirit: The Story of Jack Lowe and TDIndustries sites as www.salary.com or www.ewin.com.
by Ashley Cheshire (Dallas: Taylor Publish- Recent productivity data is available in the
ing, 1987). Professor Domenec Mele has Federal Reserve Bank of Dallas’ 2003 annual
recently published a highly relevant and report A Better Way: Productivity and Reorga-
teachable case ‘‘TDIndustries: Developing a nization in the American Economy.
Corporate Culture’’ (IESE, International The following sources contain useful
Graduate School of Management, University readings in positive psychology: Martin
of Navarra, Barcelona-Madrid, #0-303-009; Seligman’s Authentic Happiness (New York:
TD-153-E, dated 11/18/02). Free Press, 2002), his classic Learned Optimism
Aristotle’s notions of happiness are pre- (New York: Knopf, 1990); Debra L. Nelson
sented in his classic The Necomachean Ethics, and Bret Simmons’ ‘‘Chapter 5: Health Psy-
translated by J. A. K. Thomson (London: chology and Work Stress: A More Positive
Penguin Books, 1953, 1976). Alasdair MacIn- Approach,’’ in the Handbook of Occupational
tyre provides a modern review and critique Health Psychology (Washington, DC: Ameri-
in After Virtue, 2nd ed. (Notre Dame, Indiana: can Psychological Association, 2003); and
University of Notre Dame Press, 1984). A Mihaly Csikszentmihalyi’s Beyond Boredom
useful overview may be found in Introduction and Anxiety (San Francisco: Jossey-Bass,
to Virtue Ethics: Insights of the Ancient Greeks 1975). For the application of positive psychol-
by Raymond J. Devettere (Washington, DC: ogy to management and organizational
Georgetown University Press, 2002). behavior, see Fred Luthans’ ‘‘Positive Orga-
There are two good sources on servant nizational Behavior: Developing and Mana-
leadership. The essential one is Robert K. ging Psychological Strengths’’ in the Academy
Greenleaf’s Servant Leadership: A Journey into of Management Executive, 2002, 16, 57–72.
391
Also, the January 2000 edition of American sey-Bass, 1993) and the Harvard Business
Psychologist is entirely devoted to the concept Review’s book on Work and Life Balance (Cam-
of positive psychology. bridge: Harvard Business School Press,
Additional in-depth understanding of 2000). There are also websites such as
the effects of stress on the job and measures www.worklifebalance.com or www.workli-
for preventing it may be found in Preventive febalancecenter.org to help individuals with
Stress Management in Organizations by James these issues.
Campbell Quick, Jonathan D. Quick, Debra The quote from Dr. Leonard Berry is
L. Nelson, and Joseph J. Hurrell, Jr. from Discovering the Soul of Service: Nine Dri-
(Washington, DC: American Psychological vers of Sustainable Business Success (New York:
Association, 1997) and FAST FACTS: Stress Free Press, 1999). The quote by Alan Green-
and Strain, 2nd ed., by James Campbell Quick span is from ‘‘Education, Technololgy, and
and Cary L. Cooper (Oxford, England: Economic Growth,’’ remarks at the building
Health Press, 2003). dedication ceremonies at the Kenan-Flager
Insight into the issues of work/life bal- Business School, University of North Caro-
ance can be gained by from reading Joan lina, Chapel Hill (September 12, 1997): 1,
Kofodimos’ Balancing Act (San Francisco: Jos- available at www.federalreserve.gov.

Joanne H. Gavin received her Ph.D. from The University of Texas at

Arlington. She is co-author of articles appearing in Academy of
Management Executive, Applied Psychology: International Review,
Academy of Management Journal, Organizational Dynamics and Real
Estate Law Review. She also co-authored The Financial Times Guide to
Executive Health (Tel.: +1 845 575 3000x2908; fax: +1 845 575 640; e-mail:
Joanne.Gavin@Marist.Edu).

Richard O. Mason is Director, Cary M. Maguire Center for Ethics and

Public Responsibility and Carr P. Collins Professor of Management
Information Sciences at the Edwin L. Cox School of Business at Southern
Methodist University. In 2001, he was given The LEO Award by the
Association of Information Systems for Lifetime Exceptional Achieve-
ment in Information Systems. His books include, Ethics on Information
Management (1995), Waves of Change (1995), and FrameBreak: The Radical
Redesign of American Business (1994), and Challenging Strategic Planning
Assumptions (1981). He previously published in Organizational Dynamics,
‘‘Lessons in Organizational Ethics from the Columbia Disaster’’ (Tel.: +1
214 768 3145; e-mail: mason@mail.cox.smu.edu).

392 ORGANIZATIONAL DYNAMICS