ejeem Open Access Journal

European Journal of Emerging Economics and Management

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Cultivating Organizational Well-Being: The Impact of Empowering Leadership and Psychological Strengths on Trust and Flourishing

1 Department of Organizational Behaviour, Indian Institute of Management (IIM) Bangalore, Karnataka, India
2 School of Psychology and Cognitive Science, Central University of Karnataka, Kalaburagi, India

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Abstract

This article delves into the powerful connection between positive leadership and our inner psychological strengths (what we call Psychological Capital or PsyCap), exploring how they collectively build trust and help people truly thrive at work. We gathered insights from two separate studies in India, surveying individuals in the bustling IT-BPM sector (310 participants) and various other service industries (255 participants). Using advanced statistical modeling, our findings consistently show that when leaders embrace positive approaches, it significantly boosts trust within the organization and strengthens employees' psychological resources. We also discovered that these psychological strengths are a strong indicator of both how much people trust their workplace and how well they are flourishing. Importantly, both positive leadership and our personal psychological strengths directly contribute to a sense of flourishing, even when we consider the role of trust. These insights highlight just how vital it is for organizations to foster empowering leadership styles and help their people build resilience, hope, optimism, and self-belief. Doing so creates a high-trust environment where everyone can truly thrive, offering valuable lessons for building healthier, more vibrant workplaces.


Keywords

Positive leadership, psychological capital, organizational trust, employee flourishing

References

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Addison, J. T., & Teixeira, P. (2020). Trust and workplace performance. British Journal of Industrial Relations, 58(4), 874-903. https://doi.org/10.1111/bjir.12517

Andony, T., Gorjian, N., & Finkelman, J. (2016). Effects of positive leadership and flow on employee well-being through the PERMA lens. Austin Journal of Psychiatry & Behavioral Science, 3(1), 1051-1056. https://austinpublishinggroup.com/psychiatry-behavioral-sciences/fulltext/ajpbs-v3-id1051.php

Arakawa, D., & Greenberg, M. (2007). Optimistic managers and their influence on productivity and employee engagement in a technology organization: Implications for coaching psychologists. International Coaching Psychology Review, 2(1), 78-89. https://doi.org/10.53841/bpsicpr.2007.2.1.78

Bakker, A. (2008). Building engagement in the workplace. In R. J. Burke & C. L. Cooper (Eds.), The peak performing organization (pp. 50-72). Routledge. https://doi.org/10.4324/9780203971611-14


How to Cite

Cultivating Organizational Well-Being: The Impact of Empowering Leadership and Psychological Strengths on Trust and Flourishing. (2024). European Journal of Emerging Economics and Management, 1(01), 10-29. https://parthenonfrontiers.com/index.php/ejeem/article/view/52

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