Organizational Virtues: Implications for Performance

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Organizational VirtuesImplications for
Performance

• A Symposium for the Academy of Management
• Organization and Management Theory and Social
  Issues Divisions

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Outline

• The relevance of organizational virtues
• The virtue of organizational forgiveness
• The virtue of courage in organizations
• The virtue of compassion in organizations
• The virtue of organizational altruism
• The virtue of humility and modesty in
  organizations
• Final thoughts and discussion

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Presenters

• Kim Cameron
• David Bright
• Monica Worline
• Jason Kanov
• Arran Caza
• Lauren Kachorek
• David Whetten

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Positive Organizational Scholarship and Positive
Psychology

• Positive psychology is not just the study of
  disease, weakness, and damage it is also the
  study of strength and virtue. Treatment is not
  just fixing what is wrong it is also building
  what is right. It is not just about illness or
  health it is about work, education, insight,
  love, growth, and play. Seligman, 20024
• Positive organizational scholarship focuses on
  the strength-building elements in organizations
  such as compassion, humility, compassion,
  respectful encounters, integrity, positive
  affect, courage, love, and what makes like worth
  living.

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A Continuum Illustrating Positive
Deviance Individual Physiological Illness
Health Olympic Fitness Psychological Illn
ess Health Flow ---------------
-------------------------------------------------
----------------------------- Negative
Deviance Normal Positive Deviance Organization
al Effectiveness Ineffective Effective Excel
lent Efficiency Inefficient Efficient
Extraordinary Quality Error-prone Reliable
Perfect Ethics Unethical Ethical
Benevolent Relationships Harmful
Helpful Honoring Adaptation Threat-rigidity Cop
ing Flourishing Solving
problems Fostering virtuousness
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Organizational Virtuousness

• Developable states not inherent attributes
• Cognitive, emotional, and behavioral
  manifestations
• Antithetical to instrumental motives or reward
• Individual and collective (organizational) levels
• The study of organizational virtuousness is the
  study of the state, capacity, and reserve in
  organizations that facilitate the expression of
  positive deviance among organization members.

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Associations Between Organizational Virtuousness
and Performance

• Three studies of virtuousness in organizations
• Interview studies of two notable virtuous
  organizations
• Examination of 8 matched organizations within a
  parent corporation
• Investigation of 18 public and private companies
  in 16 industries
• Conclusion Virtuousness and organizational
  performance are positively related.

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Interview Study of Virtuous OrganizationsStudy 1
(N 2)
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Empirical Investigation of Organizational Virtues
and Performance After Recent DownsizingStudy 2
(N 8)

• Statistically significant relationships exist
  between organizational virtuousness
• As indicated by forgiveness, integrity, optimism,
  compassion, and trust
• And objective organizational performance
• As indicated by productivity, quality, and
  employee turnover
• And perceived organizational performance versus
  the industry
• As indicated by productivity, profitability,
  quality, and customer retention

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Empirical Investigation of Organizational Virtues
and Performance After Recent DownsizingStudy 3
(N 18)

• Statistically significant relationships exist
  between organizational virtuousness
• As indicated by forgiveness, integrity, optimism,
  compassion, and trust
• And objective financial performance
• As indicated by income relative to total sales
• And perceived organizational performance versus
  the industry
• As indicated by quality, innovation, employee
  turnover, and customer retention

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Some Conclusions

• Evidence does not suggest causality or
  directionality.
• However, organizational performance may be
  affected by virtuousness because
• Virtuousness has an amplifying effect.
  (Virtuousness perpetuates more virtuousness.)
• Virtuousness has a buffering effect.
  (Virtuousness serves a protective function and
  builds resiliency in times of trauma.