Self-regulation does not only play a pivotal role in coping with job demands and major life events, but also shapes personality development in a way that builds protective resilience, integrative abilities in holistic processing of negative and positive experiences, and autonomous functioning. Therefore, in facing setbacks and failures, intrapsychic self-regulatory mechanisms determine recovery and learning processes, in order to stabilize well-being and ensure psychological functioning. In the present chapter, the author will focus on such self-regulatory mechanisms, which influence coping processes after experiences of failure and setbacks at work. In doing so, the author draw from the Personality–System–Interaction Theory, which provides in-depth insights into different motivational and volitional processes of self-regulation. Firstly, the author elaborates on inter-individual differences in self-regulation, which can be conceptually distinguished into action and state orientation. Whereas state orientation impedes effective coping with setbacks and failures, action orientation enables building resilience and goal-focused self-regulation, especially when employees are confronted with setback experiences. Secondly, the present chapter involves findings on recovery processes and mindsets, which are relevant for the theoretical understanding about the impact of setbacks and failures on employees’ psychological functioning. Thirdly, the author discusses affect modulation as a specific form of self-regulation, which allows for reducing negative affects and increasing positive affects, in order to facilitate holistic and integrative processing of setback experiences. Finally, proceeding from insights into how employees can overcome setback experiences and learn from failure, The author will provide practical implications for human resource management, training, and leadership.
