Modern human beings spend their maximum amount of time in the work setting. Hence, how they feel at the workplace has a direct influence on their overall quality of life. Therefore, understanding what makes us happy or unhappy at work is very crucial. Surprisingly, there is an absence of a sound theoretical and conceptual framework for understanding the concept of happiness from the organizational perspective. For developing a conceptual framework for happiness at work, two components are relevant -the external work environment and the internal mental mapping. The concept of happiness in psychology has been equated with pleasure, a mixture of pleasure, engagement and meaning, or with the concept of well-being. A precise definition of happiness is missing. There have been numerous studies on the contributions of positive psychology to happiness and its influence on employees’ well-being and productivity. Most researches concentrate on the external happiness of individuals. But in the future, organizations need to focus on the intrinsic happiness of employees as well, to get the best outcome at the workplace. This chapter covers the causes and consequences of happiness in the workplace. Ways of inculcating happiness at the workplace to increase organizational productivity and create happy employees have also been discussed
