A criterion that organizations should consider over work performance.

Wealth and prosperity are important, but they are not the only things that make people happy and satisfied with their lives. Psychologists have studied what makes people have good well-being, including physical health, mental and emotional stability, good relationships, and a sense of purpose. These things, along with wealth and prosperity, can lead to happiness and satisfaction in life.

Psychologists who study well-being in organizations have written articles to point out that organizations should not focus on performance alone. Organizations should also be concerned with other factors that contribute to well-being. By applying the concept of well-being, which means that individuals are effective in living their lives at an appropriate level, to the context of work in organizations, well-being can be divided into four main areas:

1. **Employee well-being** is not just about feeling good or having positive emotions. It also includes well-being in the broadest sense, which is to live a flourishing life at work. This includes having friends at work, work experiences, professional interests, a sense of flow at work, mastery of skills, professional strengths, achieving professional goals, and regulating positive and negative emotions at work. Employee well-being in everyday life also includes financial well-being, family, social relationships, and leisure activities.

2. **Organizational well-being** is the effective and appropriate functioning of culture, environment, and leadership. Generally, organizational effectiveness is measured by financial performance, market share, and returns to shareholders and investors. However, organizational effectiveness should not just include economic value but also a system that can work effectively, from the personnel selection and promotion system to internal communication.

Organizational well-being also includes organizational culture, which includes beliefs, values, expectations, norms, structures, practices, and even leadership. Good organizational well-being is the result of these elements working together to promote the effective functioning of the organization. It can also be seen as a positive working environment.

3. **Customer well-being** goes beyond customer satisfaction, emotions, and positive behaviors. It also includes fair pricing, not just pricing for the company's benefit. It also includes the quality of products and services that are reliable, durable, and safe to protect the physical and mental well-being of customers. It also includes providing products and services that meet customer needs.

4. **Social and environmental well-being** is important because organizations are part of society and the environment. Therefore, organizations should also play a role in promoting social and environmental well-being. This can be done through corporate social responsibility (CSR) activities to promote economic development and environmental sustainability. These activities can range from supporting communities to environmental projects.

In conclusion, with the growing trend of social engagement and environmental sustainability, organizations have developed guidelines for measuring, evaluating, and communicating well-being in these areas. However, there is still room for improvement in employee well-being. Measuring and evaluating well-being with various psychological measures, such as emotional well-being at work, meaningful work, and collective flourishing, is a good starting point for transforming organizations from focusing on production and financial efficiency to organizations with well-being that is well-rounded in the future.

Source
Tay, L., Batz-Barbarich, C., Yang, L. Q., & Wiese, C. W. (2023). Well-Being: The ultimate criterion for organizational sciences. Journal of Business and Psychology, 38(6), 1141-1157.