The 2008 Great Recession spurred unprecedented deviations from conventional business practices and performance standards worldwide. Leaders were forced to operate in a new reality where traditional means of attaining competitive advantage failed beneath encumbrances of unfamiliar change catalysts, reshaping global economies, and an ambiguous future. By 2010, hard management methods of driving performance were no longer effective, business cultures were crumbling, and leaders needed new mental models toward which to direct revolutionary change if their companies were to endure. Consequently, today’s most pressing leadership issue is how to transformatively drive organizational health as an innovative strategy to improve performance and …show more content…
Ehtesham, Muhammad, and Muhammad (2011) found an empirical correlation between performance and business culture leadership at a .99 confidence level. Surveying over 600,000 employees in over 500 firms worldwide, Keller and Price (2011b) found healthy firms had (a) a 2.2 times greater probability of an above-median EBITDA2 margin, (b) a 2.0 times better prospect of above-median growth in enterprise-to-book value, and (c) a 1.5 times greater chance of having above-median growth in net income to sales than unhealthy companies. Yet at the same time, thousands of executives surveyed indicated that change program failures stemmed from poor organizational health more than 70% of the time.
The correlations among leadership practices, organizational health, and performance are positive and strong. Transformative leaders who invest in organizational well-being reap large performance dividends. Traditional leaders who try to generate change within the context of poor organizational health sustain failures in their change initiatives. Conclusively, as today’s business leaders focus inward toward building healthy organizations, effects on performance will be positive and sustained over time. Advancing a transformative leadership
A healthy organizational culture can be done with two different strategies. The first strategy being an action plan for developing a company that gives back to the employees. A good company understands the importance of building a positive morale and disposition among the staff. Regions Bank has developed a "team works" incentive plan that rewards good sales behaviors for the branches. This has given the employees an opportunity to not only make a base salary, but reap rewards for attainable quarterly sales goals as well. When an employee takes control of their production it gives a sense of ownership to the staff member to take pride in their company and help them develop on a larger basis.
McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a strong organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).
Caldwell, C., Dixon, R., Floyd, L., Chaudoin, J., Post, J., & Cheokas, G. (2012). Transformative Leadership: Achieving Unparalleled Excellence. Journal Of Business Ethics, 109(2), 175-187. Retrieved from:
In today’s business world, one of the most important contributing factors to the overall success of an organization is the effectiveness of their leadership. Effective leaders carry with them a strong skill set along with a broad knowledge base gained from experience that allows them to effectively and efficiently manage change initiatives. An organization that possessing an effective leadership team is more likely to experience success, especially it comes to creating effective change. The leaders’ role is crucial during a change
McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a solid organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).
A strong culture is important to today’s organizations in a fast pace environment affected by a diverse internal workforce (Baker, 2002 p. 4). Schein (as cited in Baker, 2002) defined organizational culture as an arrangement of shared beliefs that the group learned through problem solving, and adapting to internal and external environments (p.4). Culture is not only a means of bettering internal coordination, but is important in facilitating environmental adaptation (Baker, 2002 p. 4).
There’s increasing need for new leadership and helping organizations develop innovative ways to build rapport with workers and improve their management skills. In the health care field, the development of compelling and inspiring leaders is critical. During this age, when the health care field and life in general are surrounded by clouds of uncertainty, medical professionals need encouragement in taking on responsibilities to the full extent of their capabilities. Health care advocates support a three-fold concept of vision, organizational culture and operational excellence to support this kind of work environment. With the right vision and encouragement, health care leaders can create rising
In any organization it is essential to understand the relationship between organizational culture, leadership behavior and job satisfaction. This understanding allows management to know what cultural factors drive the organization and can be used to align the organization with its strategy allow for a good reward system. Culture within organizations is important as it plays an enormous role on whether employees are in happy and safe environments and can perform at the full capacity. Strong cultures are based on two characteristics, high levels of agreement among employees about what’s a valued and high level of intensity about these values CITATION Cha03 \l 1033 (Chatman & Cha, 2003). Although it seemed as if it had a great culture
When trying to maintain a healthy organizational culture the leader has many factors that he/she must balance. Maintaining a healthy organizational culture may be viewed as an entire strategic
There is a tremendous amount of literature regarding Organizational Culture as it relates to corporate business. Peters and Waterman (1982) book, In Search of Excellence: Lessons from America’s Best Run Companies, became the blueprint for organizational success. With the paradigm shift of hospitals becoming more “business- like” through mergers, acquisition, and pay for performance, organizational culture in a hospital setting will need to be furthered analyzed and defined as a predicator of success.
Under the leadership of Bruce Broussard, President and CEO since 2011, Humana have developed and integrated health model system that has continued to lower the cost of healthcare and enhanced quality along with improving member experience. Broussard’s specializations in his work history clearly steered Humana to inviting him to come aboard. He brought Humana an extensive variety of executive leadership experience such as publicly traded and private companies within an assortment of healthcare sectors, including oncology, pharmaceuticals, assisted living/senior housing, home care, physician practice management, surgical centers, and dental networks. However, in addition to Broussard meeting the corporate objectives, he also has executives who are experts in each of their fields. Each executive officer reports to him and each are incremental in setting strategic plans to carry out Human’s objectives. His ability to navigate and influence people credited his success as a leader at Humana. Also, while at a previous position at U.S.
As the healthcare industry continues to evolve, it requires people who attain great leadership qualities. The success of an organization depends on employees that can inspire people around them to achieve greatness and deliver quality care to the patients. Being in the healthcare industry, we have seen many changes recently. Therefore, by having a person with leadership qualities to guide others through these changes, while maintaining an organization that can deliver quality care is indispensable.
In today’s dynamic business environment leadership must understand the value and importance of their organizations’ culture. While it may never be formally defined, leadership must have a vision of their intended culture and a plan for creating and maintaining it. This vision will serve as the potter’s clay that determines everything from the dress code to the organizational structure. This paper examines two methods organizations can choose to create and maintain a healthy culture.
Organizational culture has been described as shared values and beliefs that underline a company’s identity. A strong culture that encourages employees from the top to the bottom in adaptation and change can increase organizational performance by energizing and motivating employees, shape behaviors, unify personnel in the goals / objectives and align employee’s actions with the priorities of the company (Daft, R., 2013). Creating a constructive culture should be a manager’s top priority because the right culture will propel a company into a top performer in its industry.
Organizational culture has an effect on the effectiveness of leadership. If the organizational culture is strong, it could influence the way leadership is created. If it is weak, the leadership models will also be imagined and implemented in different ways. Therefore, we will be able to find which key factors will positively or negatively influence the leadership effectiveness.