Krystal Woolley,sHRBP
July 13, 2021
Seventy-five percent of employees who quit voluntarily leave their boss and not the organization (Blackard, 2014). Within many organizations, especially within the United States where at-will employment is the employment relationship, high turnover is expected as customer contracts, employee dynamics, age of the workforce, knowledge base of employees, and world experiences change on a consistent basis. Employees, interns, and volunteers experience organizational culture and the changes are inevitable because new rules, regulations, red tape, and retention dynamics change. The structure, mission, values, goals and expectations, and leaders change frequently as well, and furthermore, this is what makes up the personality and culture of an organization. This blog will introduce organizational structure and leader accountability, culture core values and how to establish them, issues with current corporate cultures, and how to change the dynamics of culture in the workplace.
In many seasoned companies, there is a very traditional organizational structure. According to Robbin & Judge, “organizational structure defines how job tasks are formally divided, grouped, and coordinated”. There has not been much change in the chain of command. The organizational chart flows like the below:
This model represents a mechanistic organization. Mechanistic hierarchies have a very beaurocratic standardized process that is systematically formal. HR Department of Ones have no direct subordinates, however, still responsible for everyone including the stakeholders. The position is to protect the company and the employees. Generally, the CEO is at the top and everyone else falls under their umbrella. Within every organizational structure, there are leaders and leaders are responsible for the workflow and results of their team.
Organizations hold their leaders accountable for the results that are driven by employee effort, productivity, quality of products and services, and profits. Leaders uphold and enforce the basic standards for corporate culture. The hierarchy is similar regardless of industry. For example, the controller is the leader and supervisor of the accounting department. The controller is accountable for the accuracy of all the accounting data that the firm presents. If leaders are not held accountable then they and their subordinates keep repeating wrong behaviors (Miller & Bedford, 2014). The mission, values, goals, expectations, and leadership make up the key ingredients in establishing an organizational culture that can be dynamic or tragic (Corporate Culture Consulting, 2014). Employee morale is essential within an organization; the leaders that make up the organization and their demeanor can either boost or deplete morale. From an employee and human resource perspective most cases the leaders of the organization are upper management and when those leaders become directors and no longer lead, the morale, goals, mission, and values within an organization decreased; furthermore, signifying a significant difference between a boss and a leader. It is important to keep morale high in all phases of company growth.
The difference between a boss and a leader is essentially the leadership style. Lee Colan explains the 10 differences between leaders and bosses:
“1. A boss knows it all; a leader is always learning.
2. A boss gives answers; a leader seeks solutions.
3. A boss talks more than listens; a leader listens more than talks.
4. A boss directs; a leader coaches.
5. A boss criticizes; a leader encourages.
6. A boss identifies weaknesses; a leader identifies natural gifts.
7. A boss is all about “me;” a leader is all about “we.”
8. A boss places blame; a leader takes accountability.
9. A boss protects her ego; a leader reveals her vulnerability.
10. A boss demands results; a leader inspires performance.”
(Colan, 2014). Alan Hall of Forbes Magazine in 2013 wrote a similar piece, further explaining the difference between a boss and a leader and simplifying it into three differences. This is the type of leadership that has revealed significantly positive results within an organization, ensuring that the culture of the organization stays intact and decreases employee turnover, and increases retention. Proper leadership paves the way to coveting the core values of an organization.
Power by Kool-Aid definition is just a means to get what you want or need to be done by persuading a person or a group of people. The two most important types of firm power from a human resource perspective are LEGITIMATE POWER and EXPERT POWER.
Legitimate power “represents the formal authority to control and use organization resources based on structural position in the organization” (Robbins and Judge, 2014). Especially in the legal industries, the hierarchical structure and the span of control are very traditional. The Firm Managing Partner is similar to a CEO or President, making decisions on the Firm’s behalf and with a board of partners. Based on where they fit within the chain of command, they can make any decision that they feel is best within the firm. The Firm Administrator is similar to the vice president of an organization. They make many decisions without consulting the managing partner; however, on many occasions, they have to inform and or receive consent from the managing partner with their endeavors. Nonetheless, because of their positions, everyone is expected to listen and follow directives when they are present. Due to their position, it is statutory that everyone is beneath them as it pertains to hierarchy.
The next imperative power is expert power. In the automotive industry, expertise within a specific area of mechanics is imperative. Human Resource professionals would like to think that they try to hire the experts of every position within the organization, including but not limited to the accounting staff, service techs, mechanics, sales reps, and receptionist.
Regardless of the position, there are experts within every organization. They may not have started out as an expert, but the goal is for them to become one within a certain length of service or after training.
There are two main power tactics that the author utilizes on a regular basis. First is pressure “using warnings, repeated demands, and threats” and legitimacy “Relying on your authority position or making a request accords with organizational policies or rules” (Robbins and Judge, 2014). The unfortunate utilization of pressure tactics is imperative as a human resource professional. For example, a staff member has been counseled, coached, given verbal warnings, and now on a strong pathway into receiving a written warning with possible suspension if their actions do not improve immediately. The Human Resources Department must pressure them into acting in accordance with firm policies and procedures while also following the current chain of command in a manner the is both courteous and professional. If they do not show immediate improvement and continue to act in a way that is insubordinate and in direct violations of the firm policies, the firm will have to let them go/terminate employment.
The next tactic that human resources utilize on a regular basis is legitimacy. It is the human resources position to hold the firm’s policies and procedures to the highest level. It is important Human Resources Departments and leaders keep their credentials up to date so that the expertise is kept to a maximum. Multiple times leaders are questioned on the firm policies and procedures and if they are necessary or if there is a loophole to go around certain obstacles. However, there are times that the firm cannot allow for many actions to take place, above all, make sure that our actions are consistent with every staff member and attorney for legality purposes. In order to ensure the policies and procedures are enforced, communication is a priority.
Next, establishing communicating or reestablishing core values within an organization must be a priority in sustaining a healthy corporate culture. The organization’s core values need to be effectively communicated to an employee, partner, or executive upon the date of hire either through explaining the policies and procedures, the mission statement, or setting the precedence through leadership examples. By neglecting the core values of an organization in the startup phases of employment, employees are left to create their own values that may not be accepted by the organization. The core values guide decisions and prioritize what is essential to an organization as it changes and grows as well as encourages organizational performance (Evans, 2012). Organizations that establish and practice their core values see productivity increase, turnover decrease, and increased employee satisfaction for the organization and leadership; therefore, creating a company composed of stability, longevity, and sustainability.
Many organizations do not know or have lost what their true essential core values are. Method Frameworks, an organization that creates strategic and operational planning for companies around the world, has created a simple model illustrating how to establish and communicate values to current and prospective employees.
1. Develop a list of values, both personal and corporate. This is a perfect brainstorming session between all the leaders within an organization.
2. Reconcile/ Vote/ Rank values in accordance to the business needs, creating the essential ideologies of the organization.
3. Test the values to see if they meet up to the standards for employees and clients. If they do not, leaders may need to tweak the values to match up to organizational needs.
4. Outline behaviors that represent cultural core values.
5. Establish how cultural core values will be measured.
6. Communicate values to the organization. Those who oppose the values may not be the kind of employees that are wanted or needed to make an organization great (Evans, 2012).
Organizations that have a defined corporate culture and value system will have a prolonged employee engagement and clients will notice. Although the culture and value is defined, it does not mean that it does not have problems.
Many organizations have a problem with their current culture. Just like poisonous water can make a person sick, a toxic culture can weaken an organization. There are many toxins that contribute to a problematic culture. For example, managers or supervisors that react too slowly to an issue or do not acknowledge that there is a problem, too many policies and procedures that holt productivity, lack of opportunity to grow within an organization, and more focus on failure rather than success. Establishing the cultural problem within the organization is imperative to creating an environment where clients and employees are welcomed and can prosper. Not accounting for issues creates many issues including a hostile work environment, promotes harassment, increases conflict, and decreases productivity including the quality of the products or services rendered. Changing the corporate culture will be the only means of preserving the integrity of the organization.
Finally, “You can’t trade your company’s culture in as if it were a used car. For all its benefits and blemishes, it’s a legacy that remains uniquely yours” (Katzenback, Steffen, & Kronley, 2006). Changing corporate culture does take some investment, time, and work, however, the end result is much greater and reward more elaborate than ignoring the issue from experience in corporate change, before an organization does anything they must first establish what their current culture is and establish where it needs to go. Next, finding the right individuals to encourage the change along with illustrating the change within all members of management is key. Management support is essential, if the organizational leaders are not supportive and ready to make the change, then cultural toxicity is inevitable. The leaders have to train and educate employees. Employees will either be behind the change or against it and the dynamic of the organization will be prosperous for the greater good.
In a nutshell, the mission, values, goals and expectations, and leaders change frequently, and furthermore, this is what makes up the personality/culture of an organization and if the change is needed to cure company toxicity, then an organization should do it before the company loses ground. Employees generally do not like to quit their job, longevity is important, but an acceptable culture is more important.
References
About Corporate Culture-It’s the Values and Behaviors of Your People. (2014). Retrieved from Corporate Culture Consulting http://www.corporatecultureconsulting.com/facts_and_faq
Blackard, J. P. (2014). 10 shocking statistics about employee engagement [infographic]. Retrieved from Daily Infographic http://dailyinfographic.com/10-shocking-statistics-about-employee-engagement-infographic
Brown, D. (2011). Organization Renewal: The Challenge of Change. In an experientiential approach to organization development (Eighth ed., p. 10-12). UppeRovvinsr Saddle River: Pearson.
Colan, L. (2014). Are you a boss or a leader: The distinction between being a boss and being a leader may seem small, but it means the world to the people who work for you. Inc. Retrieved from http://www.inc.com/lee-colan/are-you-a-boss-or-a-leader.html .
Hall, A., (2013). My boss is a jerk! Three reason why leaders succeed and bosses fail. Forbes Magazine. Retrieved from http://www.forbes.com/sites/alanhall/2013/04/05/my-boss-is-a-jerk-three-reasons-why-leaders-succeed-and-bosses-fail/
Evans, J. (2012). Six things CEOs Should Know About Corporate Core Values. http://www.methodframeworks.com/blog/2012/six-things-ceos-should-know-about-corporate-core-values/index.html.
Katzenback, J. R, Steffen, I.,& Kronley, C. (2012). Cultural change that sticks. Harvard Business Review. Retrieved from http://hbr.org/2012/07/cultural-change-that-sticks/ar/1 .
Miller, J., & Bedford, B. (2014). Culture of Accountability. Leadership Excellence, 31(2), 23-24.
Robbins P. & Judge, T. (2014) Essentials of Organizational Behavior (12th ed.).Upper Saddle River, NJ: Pearson (pp. 231-242)
