Happiness in the workplace doesn't just happen. It's something that must be developed and nurtured. If you want to create a happy atmosphere among employees, provide opportunities to build or improve the organizational culture for greater levels of trust and respect. You must both; if only one or the other, don’t expect much.
Putting employees together in small teams to solve problems or improve processes and walking them through tools such as the Cause and Effect Diagram gets employees talking to each other and sharing expertise in a collaborative and cooperative process. Such tools and processes, if properly facilitated, can improve employee relations and result in far more productivity and creative outcomes. Trust and respect increase when employees work together and gain a better understanding and appreciation of one another.
If you want a happy workplace, employees must trust and respect one another at all levels.