Abstract

Workplace democracy is a mode of governance in which a firm is managed by those whose well-being is affected by the firm and, most notably, by its workers. However, research on happiness and well-being in democratic business structures is mixed. One explanation is that workplace democracy provides unique opportunities to fulfill or frustrate basic psychological needs that underpin emotional well-being. This chapter provides a psychological framework that clarifies some of the ambiguous effects of workplace democracy on happiness, in light of the needs proposed by self-determination theory. The primary goal of this chapter is to identify research questions for both well-being and organization researchers, by describing areas of each discipline that are particularly informative for the other.