I believe many of the stresses and frustrations in the workplace, along with many of the barriers to achieving optimal performance, can be eliminated by paying attention to three specific levels of awareness in the organization: self-awareness, managerial awareness and systems awareness.
I say this not from an academic perspective (I have not formally studied psychology, for example), but from the experience gained from managing dozens of direct and indirect reports over a period of more than 20 years, and from applying sound principles picked up from some of the great management training I have received. Although my personal take on these matters is the sum of many insights from different sources, three specific management books serve to articulate and consolidate ideas on each level of awareness, and I’ll highlight them below.
In the context of the workplace, self-awareness relates to understanding one's own strengths and core values. The book "Now, Discover Your Strengths" provides an accessible and comprehensive framework for achieving this. Other helpful tools include psychometric questionnaires such as the Myers-Briggs Type Indicator. As well as developing an understanding of one's own strengths and values, it is also important to be aware of how others perceive you (and more specifically, how they interpret your behaviors). 360 degree evaluations are very helpful in that respect.
Whereas self-awareness helps the individual figure out their personal strengths and work-style preferences, and how that might be applied to their work performance, I see managerial awareness as being the important second dimension. In this context, I use the term to focus on the manager's role in enabling the employee to perform at their best. The book "First, Break All The Rules" is a compelling summary of attitudes and behaviors of great managers as they enable employees to shine. The best performances from teams that I have managed directly and indirectly have resulted from employees being engaged in actively utilizing their strengths in their day-to-day work, facilitated by a manager (myself or one of my direct reports) that proactively creates an environment where they are confident and empowered to do so.
I have found the best book on the third level of awareness to be "Seeing Systems". Like the other two, "Seeing Systems" is founded on an objective, scientific analysis of key aspects of an organization -- specifically the attitudes, assumptions and behaviors of teams and the relationships between individual contributors, middle managers and senior leaders. The book provides a framework for appreciating the impact of "the system" (i.e. the organization at large) from the perspective of the individual. In particular, it highlights how many of the stresses and frustrations felt by the individual are personalized and are often projected onto the players in the system: colleagues, managers and leaders. The book demonstrates that often the circumstances are not personally targeted, but are natural outcomes of the system (and possibly the unvoiced values of the participants that may be in conflict). And further, it provides a number of healthy ways in which frustrating conflicts and grievances can be surfaced and resolved.
Turning a deliberate eye to examining and developing awareness on these three levels is not necessarily a prerequisite for success. That is, some people may instinctively navigate the organization without formally thinking about these matters. Others may succeed while somewhat oblivious to these perspectives. But in my experience, paying formal attention to these three levels can significantly improve the health of the organization, reduce personal frustrations, help employees grow and develop as contributors and managers, and lead to significant, sustainable improvements in team performance.