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Drawing on affect-based mechanisms, this chapter describes two forms of customer mistreatment, aggressive and demanding mistreatment. Tests are conducted of their lagged effects in predicting within-person fluctuation of employees’ negative mood, as well as the moderating roles of employees’ emotion regulation after work (i.e., rumination and social sharing). 1,185 daily surveys were collected from 149 Chinese customer service representatives from a call center for eight weekdays. Results supported the main effects of both forms of customer mistreatment and partly supported the moderating roles of rumination in strengthening the impacts of customer mistreatment. Implications and limitations are discussed.

We propose that group affective tone may be dysfunctional for teams faced with complex, equivocal, and dynamically changing tasks and environments. Group affective tone (and in particular, a positive affective tone) may exacerbate pre-existing tendencies of teams to develop a single-shared reality that team members confidently believe to be valid and to be prone to group-centrism. Alternatively, heterogeneity in member mood states within teams may lead to the development of multiple-shared realities that reflect the equivocality of the teams’ tasks and circumstances and other functional outcomes (e.g., multiple perspectives and minority dissent), which ultimately may enhance team effectiveness.

In this chapter, we seek to resolve the long-running controversy as to whether moods foster or inhibit creativity. We base our arguments on a new theory, which we refer to as “creativity-as-mood-regulation,” where employees experiencing moods are envisaged to engage in creative behavior in the hope of regulating their moods. We further suggest that employees with different goal orientations will have different likelihoods of choosing creative activities to regulate their moods. Finally, we identify the specific goal-orientation conditions under which positive and negative moods may facilitate or depress creativity, and develop and discuss six related propositions.

The relevance of affective factors in the charismatic leadership process has been widely acknowledged in leadership research. Building on this notion, the present study empirically investigated the role of leaders’ positive mood and emotional intelligence in the development of charismatic leadership behaviors. We developed hypotheses linking these constructs and tested them in a sample of 34 leaders and their 165 direct followers from a multinational corporation. Results showed that both leaders’ positive mood and leaders’ emotional intelligence were positively related to their charismatic leadership behaviors, as rated by followers. Further, we found leaders’ emotional intelligence to moderate the relationship between leaders’ positive mood and their charismatic leadership behaviors. Emotionally intelligent leaders exhibited charismatic leadership behaviors to a high extent, largely irrespective of their degree of positive mood. In contrast, leaders low on emotional intelligence were more likely to exhibit charismatic behaviors when their positive mood was high, while they were less likely to exhibit such behaviors when their positive mood was low. We conclude by discussing the implications of these findings for leadership theory, research, and practice.

Investors frequently make judgments and decisions in the presence of affect (i.e., mood or emotion). Investors' moods may influence the extent to which they incorporate available financial information in their investment judgments. I propose that investors interpret their moods as signals of the extent to which financial information should be processed to make investment judgments, but only when other, more direct signals regarding the need for in-depth processing are unavailable. Consistent with research in psychology, my experimental results suggest that investors experiencing positive mood exert less effort to process available financial information than investors experiencing negative mood. Consequently, positive mood results in lower-quality financial judgments in my setting. However, when investors receive cues suggesting that initially received information is subjective, the effect of mood on effort to process financial information is mitigated. Overall, my results suggest that factors associated with positive investor mood (e.g., positive market sentiment) reduce the depth of investor analysis and lower judgment quality absent signals regarding the subjectivity of financial information.

Purpose – Over the last 15 years, research provided insight into several firm- and country-level determinants of asymmetric cost behavior. Their implicit premise builds on rational trade-off decisions between holding costs of idle resources and adjustment costs. The authors build upon these findings and establish an irrational component – sunlight-induced managerial mood.

Methodology/approach – The authors rely on the established cross-sectional model of asymmetric cost behavior to investigate short-term resource adjustment decisions and extend it by an exogenous proxy for managerial mood (i.e., daily sunshine hours per US county-year).

Findings – Beyond rational trade-off and planning decisions, the authors provide large-sample evidence on the influence of irrational mood on cost decisions. In accordance with research in psychology showing that higher serotine levels, attributable to sunlight, contribute to happiness and optimism, the results suggest that sunlight-induced mood increases the level of asymmetric cost behavior. Managers from firms headquartered in counties with a higher level of sunlight less likely react to a decrease in sales by reducing idle resources. Instead, they seem to be more optimistic about future demand conditions and, thus, more inclined to “sit out” downturns in firm activity until sales recover.

Research limitations/implications – Although the mood proxy is truly exogenous in the setting, the authors are unable to establish causality as the actual cost management decisions could not be observed directly. Moreover, the analyses are limited to the county level, whereas weather undoubtedly oftentimes exhibits intra-county variation.

Originality/value – This study is the first to establish an irrational antecedent of managerial resource adjustment decisions, which adds to the cost stickiness literature by demonstrating the important role of deliberate managerial decisions for corporate cost behavior.

We offer a new perspective on group affective diversity by introducing the construct of mixed group mood, denoting co-occurring positive and negative mood states between different members of a group. Mixed group mood is characterized by four facets, namely members’ distribution between two positive and negative subgroups, subgroups’ average mood intensity, subgroups’ mood intensity heterogeneity, and individual members’ mood ambivalence. Building on information/decision-making and social categorization/similarity–attraction perspectives, we explore the performance consequences of mixed group mood along these four facets and we discuss implications and directions for future research.

Creativity is increasingly vital to competitive advantage. Leaders are under growing pressure to generate a creative output from themselves and their teams, and human capital managers and consultants are increasingly called to facilitate and build a climate that promotes innovation. Positive emotions are beneficial for big picture, creative, innovative thinking (Fredrickson, 2001; Fredrickson & Branigan, 2005; Subramaniam et al., 2009). Negative emotions create more accuracy, bottoms up neural processing, and problem finding (Forgas, 2013; Forgas & Wyland, 2006). This research investigated if induced positive emotions lead to a higher creative output than negative emotions. An online experiment aimed to induce either a positive or negative mood through video clips before participants undertook a creative task. Personality dimensions were also measured to assess how preferences in information processing impacted creative output. The study demonstrated the efficacy of induced mood and concluded that positive emotions seem to be beneficial for creative output, both quantity and quality. The findings add to the considerable data on the impact of emotions on workplace performance (Amabile et al., 2005) and can be directly applied to learning, innovation, and creative thinking interventions in the workplace. The chapter concludes with a brief discussion of interventions that facilitate a positive emotional climate and how to increase creative potential and performance.

Proactivity is a type of goal-directed work behavior in which individuals actively take charge of situations to bring about future change in themselves or their organization. In this chapter, we draw on goal-regulation research to review conceptual and empirical evidence that elucidates some of the complex links of affective experience and employee proactivity. We identify the different ways in which affective experience influences different stages of proactivity, including employees’ efforts in setting a proactive goal (envisioning), preparing to implement their proactive goal (planning), implementing their proactive goal (enacting), and engaging in learning from their proactive goal process (reflecting). Overall, our review suggests an important, positive role of high-activated positive trait affectivity and moods in motivating proactivity across multiple goal stages, as compared to low-activated positive affectivity and moods. The role of negative affect is mixed, and likely depends on both its valence and the stage of proactivity that is being considered. We identify a lack of research on the role of discrete emotions for employee proactivity. We discuss future avenues for research, particularly the roles of intra- and inter-personal emotion regulation for proactivity and of affective embeddedness of proactive processes in the social environment of organizations.

The influence of affect has become a hot topic in organizational research. This chapter seeks to expand the conceptualization of affect at work to include the role of unconscious affect. In this chapter, we review current research and theory on unconscious affect and extend those findings to organizationally relevant situations. We propose several antecedents, moderators, and outcomes of unconscious affect at work.