Positive organizational behaviour (POB) is defined by Luthans (2003) as the “study and application of positively oriented human resource strengths and psychological capacities that can be measured, developed, and effectively managed for performance improvement in today’s workplace” (p. 178)
According to Luthans and Youssef, the definition of POB includes positive psychological capacities or resources that can be validly measured, developed, and have performance impact. The constructs that have been determined so far to best meet these criteria are efficacy, hope, optimism, and resiliency.
Positive psychology has emerged and gained momentum as an approach that redirects focus from what is wrong with people or organizations toward one that emphasizes human strengths that allow individuals, groups, and organizations to thrive and prosper. The overall goal of positive psychology is to create organized systems that actualize human potential (Peterson & Spiker, 2005)
Applied positive psychology is concerned with facilitating good lives and enabling people to be at their best. In Industrial Organizational (I/O) psychology, positive psychology applications are represented throughout work on transformational leadership, employee engagement, positive organizational scholarship, POB, appreciative inquiry, and strengths-based organization. Over the years, both management practitioners and academics have generally assumed that positive workplaces lead to desired outcomes. Additionally, considerable attention has also been devoted to the study of positive topics such as job satisfaction and organizational commitment. However, to place a scientifically based focus on the role that positivity may play in the development and performance of human resources, positive organizational behavior and psychological capital have recently been introduced into the management literature (Luthans&Youssef, 2009)
An organization’s success depends on employees’ creativity, innovation and commitment. Employees can significantly enhance their organisations’ performance by inspiring the soul and creativity and maximizing the potential of the workforce. POB enables organizations to undertake a more complete view of the individual employee, enabling a better understanding of the workforce and a strategic means to influence behaviours. Furthermore, POB enables employees to understand the work they do, their colleagues, those for whom they work, and those who work for them.
The value of such knowledge is that stronger team efforts will prevail, given a higher level of appreciation for others and the inter-subjectivity that exists within the workforce (Ramlall 2008).

Sources: Oxford handbook of positive psychology (2nd ed.). Lopez, Shane J. (Ed.); Snyder, C. R. (Ed.); pp. 35-47. New York, NY,
Authors:
Luthans, Fred, Department of Management, University of Nebraska, Lincoln, NE, US
Youssef, Carolyn M.,

Journal of Applied Social Psychology, Vol 38(6), Jun, 2008. pp. 1580-1600.

Authors:
Ramlall, Sunil J., School of Business, Hamline University, St. Paul, MN, US,