Written by Trevor McGlochlin, Research Consultant
Leadership has so many important facets. One of those is attitude. When a leader embraces a positive leadership style and optimistic mindset, he or she can initiate meaningful change across their organization. Their positivity can be contagious and spread quickly, creating a healthy work culture of comradery, loyalty, and trust. Here, we’ll explore three ways positive leaders can effectively impact and shape an organization.
How does positive leadership impact organizations?
1. Positive leaders foster positive attitudes to improve work cultures
Kim Cameron, a professor at the Ross School of Business at the University of Michigan, has studied the effects of positive leadership on organizations for years. His research shows a link between leadership and positivity, with an increase in job satisfaction, workplace well-being, employee engagement, and performance. It also shows that positive leadership can help increase cohesion among team members, boost experimentation and innovative thinking, and improve team performance.
The Institute of HearthMath Research Center supports this idea, revealing that there is an actual change in heart rhythms when a person feels frustrated or appreciated. While the heart rhythm for frustration is irregular and random, appreciation leads to consistent and balanced patterns. Moreover, additional studies indicate that mental acuity is greater when focusing on positive events compared to negative events (Sharot, Riccardi, Raio & Phelps, 2007). The positive effects of leadership in the workplace extend even further, as positivity has also been shown to enhance nerve functioning and long-term wellness (Cohn & Fredrickson, 2011).
The research shows that when employees experience positive emotions at work, it can have a significant impact on the following (Lyubomirsky, King & Diener, 2005):
- Higher job performance
- Increased employee engagement
- Enhanced organizational citizenship
- Reduced risk of burnout
- Less likely to partake in counterproductive work behaviors
Therefore, organizations who prioritize leadership and positivity within their hiring practices and culture can create a more engaged and resilient workforce.
2. Positive attitudes are highly contagious
If we stop and think about this concept for a second, we quickly realize the truth in it. I know I’ve worked with leaders who were so positive that it kind of drove me crazy. Honestly though, I admit it was very difficult to have a negative attitude around them. It reminds me of dialogue between two high school football players in the movie, Remember the Titans. After a player says he’s going to look out for himself rather than seek the best interest of the team, the captain responds by saying, “See man, that’s the worst attitude I ever heard.” To which the player throws back, “Attitude reflects leadership, Captain.” Understanding how leadership impacts an organization means recognizing that a positive leader can inspire a wave of optimism throughout their team. If we don’t lead with a positive attitude, we cannot expect others to follow with a positive attitude.
3. Positive leadership builds loyalty and trust
When an employee knows that their boss cares about them and seeks out their best interests, trust is established. An organization led by individuals with a positive leadership style not only builds trust and loyalty, but instills a sense of security among employees. You can see what I mean with the following example from Southwest Airlines. On September 11, 2001, the terrorist attacks on the United States had a significant impact on the airline industry as shown by the below image.
When Southwest Airlines CEO Jim Parker was asked about the decision to not make layoffs following the terrorist attacks of September 11, he stated:
“Nothing kills your company’s culture like layoffs. Nobody has ever been furloughed [at Southwest], and that is unprecedented in the airline industry. It’s been a huge strength of ours. It’s certainly helped us negotiate our union contracts. One of the union leaders came in to negotiate one time and he said, ‘we know we don’t need to talk with you about job security.’ We could have furloughed at various times and been more profitable, but I always thought that was short-sighted. You want to show your people that you value them, and you’re not going to hurt them just to get a little more money in the short term. Not furloughing people breeds loyalty. It breeds a sense of security. It breeds a sense of trust.”
In the years that followed, Southwest Airline’s stock recovered the quickest out of all the airlines, underscoring the profound impact of positive leadership on workplace resilience.
The positive effects of leadership on organizational performance
While positive leadership and a healthy culture at work aren’t the only keys to organizational success, they are crucial components that can elevate both individual contributors and the organization as a whole. Therefore, a consistent focus on leadership and positivity can lead to remarkable improvements in an organization’s culture and performance.
