Chapter 3: Human Resource and the Happiness: Performance Link

In today’s dynamic and competitive corporate climate, human resources (HR) plays a strategic role that goes beyond administrative responsibilities and includes developing employee satisfaction as a driver of organisational performance. This chapter discusses the developing link between HR practices, circular happiness, and workplace productivity, based on the concepts of positive psychology. Drawing on previous research, it investigates how employee happiness – defined as work satisfaction, engagement, and emotional well-being – directly influences performance outcomes such as commitment, creativity, and low turnover. The chapter also explores how trust and psychological safety contribute to a positive culture. Strategies like promoting self-awareness, empathy, handling hurdles with a curious perspective, a trustworthy leader and encouraging team culture to foster trust at the workplace were also discussed. This chapter also discusses the role of diversity and inclusion in organisational sustainability, along with leadership. At the end, the importance of recognition, rewards, and motivation in an organisational setting is discussed.