IMPACT OF ORGANIZATIONAL TRUST AND FORGIVENESS ON HAPPINESS OF EMPLOYEES

Abstract

Amidst the new realities of the modern world, a happy and satisfied workforce has become a necessary requirement for organizations to maintain their competitive edge. As most of the available literature on happiness is concerned with positive psychology, there is a dearth of studies on understanding the relationship between organizational trust, forgiveness and happiness in organizational setting in India. Keeping this in mind, the present study aims to investigate the impact of organizational trust and forgiveness on the happiness of employees. Specifically, the study examines how the propensity to organizational trust and tendency to forgive help in affecting the employees’ perception of happiness. An effort has been made to investigate how the dimensions of organizational trust (competence, benevolence and reliability) and forgiveness (self, others and situations) predict employees’ happiness. Additionally, the study proposes and tests a model of happiness by examining the mediation effect of forgiveness while establishing the relationship between organizational trust and happiness. The present study also investigates the role of demographical differences (age, gender and organization type) in employees’ propensity for organizational trust, tendency to forgive and perceptions of happiness. Additionally, the moderating influence of these demographical differences is tested on the association between forgiveness and happiness. The data were gathered from 432 employees working at junior, middle and senior level positions in selected Indian public and private sector organizations. Simple random sampling method was used to collect the data and respondents were contacted through training programmes organized by selected Indian public and private sector organizations. After preliminary data screening and testing, the scales used in the present study were subjected to exploratory factor analysis, confirmatory factor analysis and validity analysis to test the factor structure of selected variables. Various statistical techniques like correlational analysis, t-test, one-way ANOVA and multiple hierarchical regression were used to test the hypotheses. The results of the study indicate that there are significant differences in age, gender and the type of organization in the dimensions of organizational trust, forgiveness and happiness. Further, the findings indicate that the dimensions of organizational trust and forgiveness are significant predictors of employees’ happiness. Also, while testing the overall impact of organizational trust on happiness of employees, it was found that forgiveness partially mediates this relationship. The results further indicate that demographic variables (age, gender and organization type) moderate the association between forgiveness and happiness. iv The findings of the present study augments to the existing literature in different ways. First of all, the study adds to the literature on happiness at work by empirically testing and analyzing a unique and unexplored combination of variables as potential predictors of happiness of the employees, namely, organizational trust and forgiveness. Additionally, by providing the support on the association between forgiveness and happiness at work, the present study addresses the scarcity of literature regarding the missing link between forgiveness and happiness in organizational context. Also, the study contributes to the literature on relationship satisfaction domain of happiness by exploring how forgiveness explains the relationship between organizational trust and happiness. Further, this study attempts to rationalize the impact of forgiveness on happiness through the lenses of age, gender and organization type. The findings of the present study have potential implications for managers and organizations in developing positive psychological interventions and practices to enhance happiness among employees. Fostering forgiveness might also work as a preventive therapy to regulate conflicts and contribute to the satisfaction of the employees. Present study also validates instruments in Indian organizations as the importance of measuring the variables under study cannot be denied. HR managers, professionals, practitioners and behavioral scientists should realize the importance of trust, forgiveness and happiness at work in bringing positive changes in the employees and should assess these variables. The results so obtained would help in encouraging the top management and HR managers to review their work policies, task structures and job designs in enhancing the levels of employee’s happiness at work and well-being. It is emphasized in the present study that in management circles, forgiveness is rarely discussed and seldom included in the training programmes. Therefore, the study posits that training programmes should be organized in order to guide them about the critical strengths of a trustful and forgiving culture. It will also unwelcome the consequences of negative affect at work. In turn, this could help employees to utilize forgiveness process in the efforts to improve their overall well-being. Further, the present study also discusses about the limitations and future research directions.