Managing for Happiness

“Management 1.0”

Traditional management philosophy focuses on changing employees’ attitudes and behavior. It posits that leaders are responsible for improved company functionality and for motivating workers to achieve greater productivity. In a Management 1.0 environment, managers identify and assist or replace underperforming employees. Corporate policy encourages competition and gives awards for individual achievement. Managers distrust employees, and may monitor their computer use to ensure they put in an honest day’s work.

“Management 2.0”

A Management 2.0 culture acknowledges that employees are important assets, and managers must embrace “servant leadership” to move their organizations forward. Leaders with honorable motives organize 360-degree feedback exercises and hold one-on-one sessions with employees to set individual goals. Though this is a vast improvement over Management 1.0, both styles depend on a “top-down” philosophy. Management 2.0 still uses targets and metrics to govern an entire corporate system when, in reality, performance takes place in the relationships between departments and individuals. Both Management...