Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
What ought to be: Modeling Culture-Based Managerial
Leadership
Yusuf Nur and Adam R. Smith
Recently there has emerged burgeoning literature on Management by Virtues (MBV)
and concepts closely related to it, penned by practitioners, academics and consultants.
These authors refer to MBV by different names, such as servant leadership, spiritual
leadership, stewardship, principle-centered leadership, management by values, service
leadership, and other similar terms. Although the names used are different, they have
many aspects in common, the main component of which is striving to run an
organization and manage employees according to virtues derived from firm belief in the
spiritual or the transcendental aspects of life. The following paragraphs will attempt to
integrate and summarize several books and articles written on this topic.
Perhaps the first practitioner to write about some aspects of MBV was Robert
Greenleaf who worked for AT&T for decades before publishing his seminal work
Servant Leadership in 1978. Greenleaf’s philosophy is based on the premise that an
effective leader is a trustworthy servant, i.e., earns the trust of his/her followers by being
their servant.
A new moral principle is emerging which holds that the only authority deserving
one’s allegiance is that which is freely and knowingly granted by the led to the leader in
response to and in proportion to, the clearly evident servant stature of the leader.
Those who choose to follow this principle will not casually accept the authority of
existing institutions. Rather, they will freely respond only to individuals who are chosen
as leaders because they are proven and trusted as servants. To the extent that this
principle prevails in the future, the only truly viable institutions will be those that are
predominantly servant-led. (p.10)
Some of the qualities and attitudes that Greenleaf attributes to servant leaders
include that they are adept listeners, excellent communicators, good empathizers, and
are patient and determined. Furthermore, they possess an intuitively developed sense
of direction and they highly value community.
It is evident that the above qualities of servant leadership could be attributed to
leaders who don’t claim to be servants. However, Greenleaf connects his servant
leadership concept to spirituality. To him to be a servant leader, one has to be
necessarily spiritual. Greenleaf defines spirituality as “the animating force that disposes
one to be a servant of others” (Greenleaf, 1982, p. 4-5). For Greenleaf spirituality is not
confined to religious institutions. In fact, according to him, a religious institution may not
be spiritual at all if it doesn’t create a servant environment. On the other hand, a
_________________
Assoc.Prof. Yusuf Nur,
Email: ynur@iuk.edu
School
of
Business,
Indiana
University
Kokomo,
United
States,
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
business organization can create a spiritual environment if its leadership succeeds in
becoming trustworthy servants to their followers.
DePree (1989) emphasizes the importance of belief and spirituality for
management practices implemented in the workplace. He argues that our management
“style is merely a consequence of what we believe, of what is in our hearts” (p. 24).
With admittedly unsupportable exaggeration DePree (1989) further writes, “Managers
who have no belief but only understand methodology and quantification are modern day
eunuchs. They can never engender competence or confidence. They can never be
truly intimate” (p. 27).
Another writer that considers spirituality as a necessary component of effective
management and the vision that is so integral to it is Vail (1990), who contends that a
truly energizing vision has to be necessarily centered in profound spirituality. For Vail,
spirituality is “the search for deeper experience of the spirit of various kinds that one can
feel stirring within... [which is the essence of] being human” (p. 213). Vail goes further
by asserting that true leadership has to be necessarily spiritual since “true leadership
brings out the best in people and since one’s best is tied intimately to one’s deepest
sense of oneself, i.e. one’s spirit” (p. 224).
Ritscher (1986) ascribes ten qualities to spiritual leadership: 1. inspired vision, 2.
clarity of mind, 3. strong will, toughness, and good intention, 4. low ego, 5. no
compartmentalization of life, 6. trust and openness, 7. clear insight into human nature,
8. skill in creating human structures (which he calls groundedness), 9. integrity, and 10.
context of personal growth and fulfillment (p. 62). Ritscher states that all these qualities
are transcendent in nature, i.e., “they go beyond the mundane and measurable effort in
human experience and organizational dynamics.”
One of the CEOs most successful in incorporating spirituality in business
management is Chappell (1994) of Tom’s of Maine. Chappell (1994) considers
managing his business according to values derived from spirituality his “call” in life.
After founding and running a successful business, Tom Chappell realized that his
apparent success didn’t make him happy. He attributed his unhappy state to the fact
that he moved away from his spiritual values as his business became more successful.
He felt empty and disconnected from himself; for him life lost its meaning. He lost his
sense of purpose, a sense he knew he possessed before he and his company became
successful. He set out on a quest to understand what made him lose his sense of
purpose and meaning. This search for meaning and purpose in his life and business life
led him to the Harvard Divinity School and to religion. He was not an irreligious person
to start with, but he felt because of his material success he had drifted away from his
core values. The one question he sought an answer for was “could I stick to my
respect for humanity and nature and still make a successful company even more
successful?” He came to the conclusion that one didn’t have to give up sound business
practices for one’s values to guide every business transaction. He realized that when
he and his wife founded Tom’s of Maine, they started right – their core values guided
their decisions. As time went by and the company grew and became successful, they
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
“slipped” by becoming assimilated into the mainstream business practices where
rational calculations and dry number crunching reigned supreme. He came to learn that
life is a balancing act between the spiritual and the practical – that there is a middle way
of making room for spirit in the world of commerce.
This is how Chappell (1994) defines spirit or spiritual:
By spirit or spiritual, I mean the part of you that survives when you eliminate your flesh
and bones – the part you can’t point to but can feel, the part you might describe to
someone else as your essential being, your soul. Soul is what connects you to
everyone and everything else. It is the sum of all the choices you make. It is where
your beliefs and values reside. Soul is at the center of our relationships to others, and
for me it is at the center of the business enterprise.
Like DePree (1989), Chappell came to the conclusion that beliefs drive strategy.
Creating a spiritual climate allows workers to be fully engaged. In contrast, if the driving
principle of the company is to maximize profit, workers will limit themselves to the bare
minimum required of them. When workers are engaged fully, when they and their
managers have common values and shared sense of purpose, their daily work would be
imbued with deeper meaning, which leads to satisfaction and fulfillment. Chappell came
up with a vision of working hard “to make good products for customers who care as
much as we do about our health, the environment, and the future of our communities.”
Some companies support community projects mainly for public relations purposes.
Tom’s of Maine believes that doing good is an end in itself. The company can do good
and profit at the same time; the two are not mutually exclusive.
Chappell attributes his business philosophy to ideas he culled from a number of
religious thinkers including Martin Buber, Immanuel Kant, and Jonathan Edwards,
whose works he studied at the Harvard Divinity School. According to Chappell, our
values are the driving force behind the decisions we make. In regular business
situations, the right decision is the one that leads to the maximum profit. This attitude is
called utilitarianism. In contrast to utilitarianism, formalism is the belief that making
money is not the only goal of either business or work. Formalism has to do with “inner
sense of obligation and human connection that people feel for their friends, neighbors,
and family.” People are not motivated by mere material considerations. They could be
motivated by respect for them exhibited by their bosses and co-workers
Chappell derives his management philosophy from Martin Buber’s I and Thou.
Buber divides relationships into two categories. In an “I-It” relationship people are
treated like objects to be used to attain our goals. People are valued for their utility. In
an “I-Thou” relationship, however, we relate to people not for anything in return but in
simple respect, love, friendship, and honor for their own sake. According to Chappell
most businesses are predicated on an “I-It” relationship. This is the standard way of
doing business.
According to Chappell, the natural outcome of doing business according to IThou principles is high morale, loyalty, commitment, and workers going beyond the call
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
of duty. Chappell maintains that business needs and spiritual needs can and should be
balanced. When such a balance is attained management will be able to contribute to
the spiritual growth of its workers. By fostering the quest for meaning of life that
everybody feels, business will create meaning of work that is so necessary for the
morale and motivation of the workers. On the other hand, if business confines itself to
profit-making only, and neglects the spiritual side of business life, it will strip away a part
of the worker that needs to thrive if they are to lead a healthy work life. This in turn will
lead to listlessness and apathy on the part of worker. The driving concern for the
worker will then be to do the minimum in order to please his/her boss.
Another seminal work on MBV and spirituality in the workplace has been penned
by Marcic. Marcic (1997) maintains that the world we live in obeys not only physical
laws but also spiritual ones. These spiritual laws are taught by all traditional religions
and are not confined to one specific religion. Marcic compares some of the basic
teachings of all major religions and comes to the conclusion that they all emphasize
love and service for others, honesty in dealings, justice for all, patience and tolerance,
dealing with others with pure intentions, and avoidance of corrupt practices, among
other teachings.
According to Marcic, behaviors are the outer manifestation of attitudes, which are
in turn based on deeply ingrained beliefs. These beliefs come from religious teachings
on spirituality or spiritual laws. Spirituality addresses the world of spirit and the soul – a
world unseen but as real as the physical world to those who believe. By following
spiritual laws we develop virtues that help us deal properly with others. These spiritual
laws are universal. For example, the golden rule is found in all religions, although it is
expressed in different ways. Spiritual laws specify cause and effect in the same way
that physical laws specify cause and effect. Breaking spiritual laws, whether we are
aware of them or not, entails certain consequences. For example, practicing honesty
leads to building trust. Likewise dishonest behavior destroys trust. The business world
is not exempt from spiritual laws in the same way that it is not exempt from physical
laws. Virtuous behavior results from following spiritual laws. For example following the
Golden Rule in business entails that we would not intentionally hurt our subordinates,
bosses or colleagues, that we would not treat them unjustly, and that we would not hurt
their dignity or disrespect them because we would not want anybody to do these things
to us.
Marcic (1997) contends that one of the most important spiritual laws all religions
teach is purity of intention or motive. This law teaches people to be sincere in what they
do and how they deal with others – not to obtain anything specific in return, but to do it
for its own sake. Spiritual managers don’t treat workers well in order to get them to
produce more. They treat them well because they sincerely believe that treating others
well is a virtue required by your beliefs. Because employees are affected not only by
actions directed at them but also the motives behind those actions, when programs that
are intended to make workers feel good but not bring about any substantive change are
implemented, workers become cynical and disillusioned. Workers have countless ways
of getting back at organizations that deal with them with insincerity. Workers can detect
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
whether proposed changes reflect core values of the organization as represented by its
top managers or they are intended as a way to pay lip service to expectations.
It is important to note here that spirituality is practiced as an end itself, and not as
a means to an end. The overall attitude that spiritual managers are reputed to have is
that the positive outcomes attributed to the practice of spirituality will take care of
themselves. In other words, these outcomes are not to be sought in their own merit.
Building on models developed by Vail (1989) and Hawley (1993), Marcic (1997)
identifies five dimensions of work: physical, intellectual, emotional, volitional and
spiritual. Most efforts at organizational design and improvement have been directed at
the first two dimensions. To a lesser degree, the volitional (desire or will to change for
the better) side of work is sometimes addressed. However, the emotional and the
spiritual dimensions are in most cases ignored. Marcic believes that most changes
instituted in organizations fail because they neglect the emotional and spiritual side of
these changes.
Toward a Definition of MBV
From the above brief review of the literature, it is evident that MBV as a concept
has an abstract dimension, which most of the literature calls spirituality, and a more
practical dimension, which is related to virtuous behaviors resulting from spirituality. In
the following paragraphs these two aspects of MBV and their relationship will be
delineated.
Marinoble (1990) conceives of spirituality as the central aspect of a person’s life
orientation that involves finding and making sense of life’s significant questions,
adhering to that meaning, and acting it out. Spirituality entails an openness to both
rational and non-rational dimensions of reality that includes a striving for the
transcendental, which Ritscher (1990) defines as “go[ing] beyond the mundane and
measurable effort in human experience and organizational dynamics” (p. 62).
Spirituality imparts to the one who practices it an inward reality, the outward
manifestation of which could include the ability to touch people and to evoke a caring,
creative, and ethical atmosphere in the workplace (Jacobsen, 1994). In other words,
spiritual leaders are sensitive to issues of meaning, care, and wonder in the personal
dimension, which allows them to be sensitive to these issues in their organizations.
According to Jacobsen (1994), spiritual leaders can create an environment where
“leaders and followers raise one another to higher levels of morality and motivation” (p.
95).
According to Mitroff and Denton (1999), spirituality consists of deeply engrained
beliefs, which by their very nature compel a person practicing it to be characterized by
virtuous behaviors. The beliefs consist of belief in a deity, supreme power, or being that
controls the universe. Integral to the belief in a deity is the belief that there is purpose
behind creation, that the universe and life on earth are not meaningless.
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
Meaningfulness and purpose ascribed to life in general have important
ramifications for meaning ascribed to work-life. Spirituality also entails belief in the
interconnectedness of everything.
A spiritual person deems it unnatural to
compartmentalize one’s life (Ritscher, 1986). This feeling of being connected to others
gives one a sense of community (Chappell, 1994). Spirituality requires faith and
hopefulness, which eliminate fear and pessimism. Finally, spirituality fosters positive
assumptions about human nature and human relationships. Human beings are treated
as ends in themselves and not as means to an end. Human beings are to be treated
with respect and accorded dignity, an inalienable right that comes with being a human
being.
Ashmos and Duchon (2000) define spirituality as “that dimension of human
beings which is concerned with finding and expressing meaning and purpose and living
in relation to others and to something bigger than oneself” (p. 131). Spirituality gives
people who practice it a sense of purpose and meaning in their lives. It allows them to
fully express their being, not only physically, but also mentally and emotionally. This
quality of meaningfulness felt in one’s inner self leads to a more meaningful outer life
and work-life. Managers who encourage their employees to actively practice spirituality
also create an environment that fosters the development of this inner dimension. MBV
managers recognize this need and know that the work environment can either nurture it
or stifle it. A spiritually nurturing workplace would allow employees to fully apply
themselves, which in turn has positive implications for the business. Ashmos and
Duchon (2000) contend that the meaning sought in work and putatively provided in MBV
organizations is different from the kind of meaning addressed by the job design
literature, the emphasis of which is on finding meaning in the performance of tasks
(Hackman & Oldham, 1975).
Mitroff and Denton (1999) have carried out one of the few empirical studies on
spirituality. Mitroff and Denton conducted more than 100 in-depth interviews with CEOs
and senior managers. The subjects consisted of both supporters and opponents of the
practice of spirituality in the workplace, the latter being managers who believe that
spirituality is a private matter and there is no place for it a business organization.
Among active supporters and promoters of the practice of spirituality, the most recurring
notions associated with spirituality were the feeling of being connected with one’s
complete (inner and outer) self, other human beings (especially those one closely
associated with) and the entire universe. As Marcic (1997) theorized, Mitroff and
Denton (1999) report that employees and managers who worked for organizations
where the practice of spirituality was encouraged, claim that they could bring more of
themselves to work and give more of themselves. In other words, MBV organizations
are able to harness not only the physical, intellectual and emotional energies of its
employees, but also their spiritual energies. MBV managers say that spirituality imparts
a strong sense of purpose and direction, and it imbues life with meaningfulness – a
purposefulness and meaningfulness derived from religious beliefs that teach that life is
not just about making money, but about spreading and increasing goodness on earth.
These beliefs also teach that work-life cannot be separated from life outside work.
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
From the above review, it can be concluded that MBV consists of the following
dimensions: belief in a deity and the inner awareness that such a belief fosters,
heightened consciousness of the meaningfulness and purposefulness of life, a strong
feeling of community and connectedness, and an I-Thou attitude, which engenders
faithfulness and sincerity in relationships.
Theoretical Justifications for MBV
The above review was mainly based on the spirituality literature, which usually
does not appear in mainstream academic outlets. There are mainstream concepts,
however, which lend much support to MBV. In the following section, some important
concepts and themes that provide theoretical bases for MBV will be discussed. As will
be shown, MBV has many aspects in common with concepts that have been around for
a long time in the literature of organizational theory.
Firmly Held Moral Values
One of the most important contributions of Chester Barnard (1938) to
organizational theory is his insistence on the importance of strongly held moral values to
secure the willingness of the participants that organizations rely on. According to the
author, material incentives to induce this willingness are necessary but not sufficient.
The moral basis of cooperation may be even more important than any material
incentives. This is absolutely necessary in order for the manager to secure, create and
inspire morale in the participants. One of the most important functions of the executive
is to gain the commitment of the participants to the common purpose of the
organization. Although Barnard’s “moral imperialism” has come under scathing attacks
(e.g., Perrow, 1986), his ideas formed the basis of neoclassical organizational analyses
that emphasize the essential importance of strongly held moral values for the
establishment of effective organizational cultures.
Deontological Paradigm as an Alternative
According to Etzioni (1988), the neoclassical economic paradigm, which views
human beings as rational utility maximizers, pervades the analysis of not only economic
relationships but also all other social relations. Etzioni proposes a different way of
looking at ourselves as human beings. He calls his proposal a deontological paradigm.
(A paradigm is a set of assumptions that provide an orderly way of organizing our
thinking about a particular phenomenon.) This assumes that human beings have other
goals besides maximizing their individual pleasures or interests. Today’s studies of
societal relationships are based on this “utilitarian ethic.” A second aspect of this
position is that it refutes that people seek the most efficient way to attain their goals.
The deontological paradigm maintains that people choose means to their goals based
on emotions and value judgments. Drawing on emotions and value judgments does not
necessarily mean that people make poor choices. A third aspect of this new paradigm
is that it views people as members of social collectives. People’s decisions are shaped
by their social collectives. It is the social collective that determines feasible exchanges
and markets within which these exchanges take place.
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
The new paradigm is based on three core assumptions, all of which are
modifications of three core assumptions that are integral to the neoclassical paradigm.
The first assumption is that people pursue not one but two “sources of valuation,”
pleasure and morality (pp. 4-5). The second assumption is that decision-making (i.e.,
selection of choices) is done on the basis of values and emotions and not just on
rational consideration, as the neoclassical paradigm holds. This decision-making
framework holds in both social settings and economic settings, such as employeremployee relationships. Etzioni doesn’t deny that one can practice rational decision
making, and critical thinking, even with reference to values and emotions that enter into
the evaluation of alternative courses of action. The third assumption is that the
decision-making unit is not just the individual but the individual within the collectives to
which the individual belongs. According to Etzioni, the collectivities have their own
structures, which constrain the individual decision maker. The individuals within the
collectivities adhere to shared moral values that are internalized.
When the
neoclassical paradigm recognizes the existence of collectivities, it recognizes them as
mere aggregates of individuals. Etzioni states that “individuals and community are both
completely essential, and hence have the same fundamental standing. … [T]he
individual and the community make each other and require each other” (p. 9). This
does not negate the necessity of individual freedom or liberty. True individual liberty
requires a community which ensures that individual liberty does not violate the order of
that community. It is this balance of freedom and order that permits the ordering of
preferences in the marketplace.
Reversion to Pre-industrial Moral-Unity
Shepard and colleagues (1996) concur with Etzioni’s (1988) analysis. According
to the authors, Etzioni’s “new” paradigm is not really new. It is actually much older than
the neoclassical paradigm it is supposed to augment. The norms and moral values
championed by the new paradigm prevailed in the preindustrial economic and social
situation in the West. In the preindustrial period, societies were characterized by “moral
unity,” (i.e., “the same set of values, rules, norms, and customs applied to all groups,
including business organizations”, pp. 580 –581). Only in the industrial period did this
situation change to one, which exempted business relations from the moral constraints
which applied to other social relationships. This was the essence of the amoral
paradigm.
According to Shepard and colleagues (1996), there are a number of clear
indications that economic relationships in the United States are reverting to the preindustrial moral unity paradigm. First, the theoretical justifications for the amoral
paradigm, which at one time appeared to be unassailable, are now being attacked by
prominent social scientists, and by economists. Viewpoints attributed to Adam Smith,
the father of laissez faire economics and its underlying neoclassical paradigm, have
come under attack. It appears that Adam Smith was misinterpreted. According to
Shepard and colleagues, Adam Smith never intended to separate morality from
economics. Adam Smith’s pursuit of self-interest was not a goal in itself, but rather a
means to attain the general welfare of the society. Second, numerous empirical studies
have demonstrated that the one-sided view of human nature fostered by neoclassicism
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
is too simplistic to account for human economic decisions. The neoclassical paradigm
does not have a place for economic decisions made on moral grounds.
Another
neoclassical position refuted by the above empirical studies is the atomistic separation
of economic decisions from societal and cultural contexts within which they are made.
The market does not operate independent of social considerations. Economist Lester
Thurow (1984) rejects the basic assumptions underlying neoclassical theory of
economic behaviors, specifically rational decision making based on utility maximization.
A third reason why economic relationships are reverting back to the preindustrial moral
unity paradigm is that a number of studies attribute contemporary economic prosperity
of a number of countries to their communitarian cultures (Hofstede, 1991; HampdenTurner & Trompenaars, 1993). Among the countries with strong communitarian values
and successful economies are Japan, Hong Kong, Singapore and Taiwan. Indeed
Weber (1958) attributes the success of capitalism to the Protestant Ethic of Western
Communities where it first took root. It is important to note, however, that there are
many communitarian cultures around the world that are not associated with economic
success.
Agency Theory and Its Shortcomings
One of the most influential management theories that is often used to explain and
predict employee-employer behaviors in organizational settings is Agency Theory.
Agency theory derives its impetus from assumptions about the nature of man underlying
the neoclassical paradigm (see Eisenhardt (1989) for a review of Agency Theory).
Recently a number of major criticisms has been lodged against Agency Theory (David
et al., 1997; Hirsch et al., 1987; Perrow, 1986; Jensen & Meckling, 1994; Doucouliagos,
1994). Most of these criticisms revolve around the limited conceptualization of man,
which Agency Theory borrowed from economics.
Agency Theory assumes the
existence of an agency problem arising from the rational, selfish, utility maximizing
behaviors of those who are put in principal-agent situations. According to the theory,
without bureaucratic controls, the agents will maximize their utility at the expense of the
principals. Agency Theory is based on a narrow, oversimplified picture of human
nature. Part of the reason Agency Theory resorts to such oversimplification is that it is
hard to capture all the complexities of human nature and human economic behaviors in
the mathematical models. Thus, Agency Theory and the assumptions it is based on
overlook situations where human beings do not act in the prescribed fashion.
Stewardship Theory as an Alternative
Davis and colleagues (1997) and Donaldson (1990) proposed Stewardship
Theory to rectify the limitations of Agency Theory. Stewardship Theory postulates that
human beings do not always act individualistic or in a self-serving manner. When such
situations arise, Agency Theory attributes them to irrationality on the part of the actors.
As we have seen, Etzioni (1988) maintains that moral utility maximization does not
entail irrationality. In stewardship theory, the so-called agent is not motivated by selfinterest but communatarian interests as well. In other words, according to Stewardship
Theory, the interests of the organization as a collective are aligned with the interests of
the individual. In such organizations, structures are created that empower people and
that make them feel trusted, whereas organizations acting in accordance with Agency
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
Theory would resort to internal and external controls which lead to distrustful processes.
Human behavior depends in large part on how humans are treated. Organizations that
are designed along the lines of the neoclassical paradigm, therefore, introduce distrust
into the work environment and create a self-fulfilling prophecy.
Summary and Synthesis
Barnard’s (1938) strongly held moral values as an imperative for organizational
participation, Mitchell’s (1993) leadership legitimization through moral rectitude,
Etzioni’s (1988) deontological alternative to neoclassical economic paradigm, and
Shepard and colleagues’ (1996) moral-unity reversion claim, all support the contention
that MBV rests on strong theoretical justification supported by existent mainstream
organizational theory literature. Similarly, Stewardship Theory’s reliance on intrinsically
motivated workforce, parallels the proposed style of management’s reliance on the
development of the inner-self. Both base their contentions on the premise that the
fulfillment of human beings higher order needs can be used to raise them to their full
potential. This does not mean that MBV ignores extrinsic motivational tools. Whereas
management theories based on economic assumptions use these rewards as tools of
control, MBV relies on self-control and self-monitoring, both of which derive their
impetus from moral values.
MBV also ties to Hackman and Oldham’s (1975, 1976, 1980) work on motivation
through work characteristics. Under MBV, workers experience intrinsic meaningfulness
of work. They are respected as human beings and trusted, which in turn gives them
strong feelings of responsibility. To create internal work motivation, Hackman and
Oldham (1980) recommend increasing skill variety, task identity, task significance,
autonomy, and feedback. Although these factors are important, not every job can be
designed that way. The intrinsic motivation of MBV instead relies on infusing
transcendental meaning to work – meaningfulness that is not contingent on the
specificity of the work. Hackman and Oldham contend their redesign of work leads to
highly motivated workers and good performance. MBV attains the same goal by
tapping and unleashing the human spirit through transcendentally meaningful work.
Employees in MBV situations develop a strong identity with the organization.
The process of identification starts during recruitment. MBV managers screen potential
employees for their acceptance of the organization’s mission, vision, and objectives.
Thus, one can expect high identification with the organization on the part of these
employees. Employees that strongly identify with the organization internalize the
successes and failures of those organizations. If the organization succeeds, it is their
mission that has succeed; and if the organization fails they take it personally. To them
there is more at stake than their employment. There is a downside to selectivity,
however. The strong values proposed above may in the long run trump technical
competence, ability, and creativity as criteria for selection, attraction and retention of
individuals.
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
Spirituality fulfills a number of innate needs human beings have. One of these is
the need to relate to something bigger than oneself or the created things and beings
that surround us. Another need is to seek meaning and purpose in life. Since work-life
is such a huge part of our daily lives, an integral part of this need is to ascribe meaning
and purpose to work-life. The practice of spirituality gives workers the opportunity to
express aspects of their being other than the performance of physical or intellectual
tasks. An integral part of belief in deity is a deep recognition of the spiritual dimension
of human beings. Spirituality assumes that there is an inner part of human beings
(called the soul, spirit or inner self), which needs nourishment as much as our outer
(physical, intellectual and emotional) parts need nourishment. When this inner part is
nourished well it leads to a more meaningful and more productive outer life.
Belief in the spiritual (the transcendental) holds that development of the spirit (the
soul) is as important as, if not more important than, development of the mind and the
physical body. Spiritual managers realize that work can either damage or nurture one’s
inner self. For spiritual employees, meaningful work means work that gives meaning to
their work-lives, work that doesn’t conflict with their inner beings, work that gives
opportunities to contribute to the general well being of the immediate community and
humanity in general. In other words, meaningful work allows one to accomplish the
purpose of one’s existence through one’s work (Novak, 1996; Chappell, 1994). Mitroff
and Denton (1999) report that one of the factors that impart meaning and purpose to
work is being associated with an ethical organization whose actions and decisions are
guided by spiritually imbued values – actions and decisions that are deemed to be
ethical and caring.
Spirituality also comprises an awareness of the interconnectedness of everything
in life and connectedness to other human beings. MBV managers create a work
environment that is conducive to spiritual growth, which then fosters their
connectedness to each other. Spiritual managers recognize this part of human nature
and nurture it through meaningful work, through strong sense of community, and
through interconnectedness. There is a strong belief among spiritual managers that
such a work environment has powerful positive implications for organizational
performance. It is important to note, though, that spiritual managers do not create such
an environment as a means to increasing organizational performance. They believe
that human beings are ends in themselves; performance and profit would naturally
follow suit if MBV is practiced as an end in itself. In such an environment employees
feel respected as human beings and they grow to their potential while accomplishing
meaningful work that fulfills their need for human connectedness and community.
Proposed Model
It is clear from the above review of the literature on the concept this paper calls
MBV that there are certain beliefs and virtues that are unique to those managers who
actively practice this style of management. The main concepts associated with MBV
are belief in a deity, belief in the meaningfulness and purposefulness of life, a feeling of
community and connectedness, and an I-Thou attitude. The following section will
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
describe the proposed model, which will attempt to explain the motivational processes
and dynamics involved in the practice of MBV.
The MBV manager is driven or motivated by a religious ideology. Based on this
religious ideology, the leader articulates a vision that is transcendental in nature. The
vision agrees with the moral values derived from the manager’s spirituality.
Spirituality addresses three fundamental aspects of life: belief in the
transcendental deity, purpose of life, and assumptions about human nature. Human
beings are not viewed as selfish utility maximizers but are driven by moral values, which
are derived from religious principles. These moral values emanate from deeply held
beliefs of self-perception and self-esteem. Their practice of spirituality motivates them
to maintain their self-esteem. According to House and Shamir (1993), self-esteem has
two components: self-worth and self-efficacy. “Feelings of self-worth are derived from a
sense of virtue and morality and are grounded in social norms and cultural values
concerning conduct” (p. 89). Self-efficacy has to do with a person’s belief in his/her
ability to accomplish tasks. Moral values also motivate people to ensure that their
behaviors are congruent with their beliefs. Finally, beside self-identity, human beings
also have a strong collective identity, which sometimes can override selfish motivations.
The concept of faith in a better future, that efforts bring about results, and that the
importance of keeping hope are also integral to the assumptions that motivate people to
be persistent.
MBV allows leaders to increase followers’ level of self-worth, self-efficacy, faith in
a better future, and commitment to the values espoused in the leader’s religiously
inspired vision. The leader taps into the motivational powers of the self-esteem, selfworth, and community identification of the followers. Thus the followers’ values and
self-concepts are engaged in such a way that their behaviors are aligned with their
moral values. This makes them less concerned with selfish gains and more with
community welfare.
The above behaviors are expected to have intensive motivational effects on the
followers. They raise their self-consistency, self-esteem, self-worth and heighten faith in
what the future holds. These effects will in turn produce organizational outcomes that
are conducive to increased commitment, loyalty and organizational citizenship
behaviors (performance beyond the call of duty that is required for the survival of the
firm).
Treating employees as ends in themselves ensures sincerity in the decisionmaking. Decisions about work design and work environment are made based on purity
of intention and motive and not for public relations purposes only. One indication of
sincerity on the part of management is leading by example. Virtues attributed to the IThou attitude (Chappell, 1994; Marcic, 1997) include trustworthiness, which entails
accountability, honesty, integrity, and ethical behavior; sense of community, which
ensures commitment to employees, reciprocity, coaching rather than controlling, and
consensus building; treating others with respect and according them dignity; justice
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
which entails empathy and equitable compensation; and service (stewardship), which
entails humility and selflessness.
All of the above behaviors on the part of management lead to an organizational
climate that encourages employees to be engaged not only intellectually, but also
emotionally and spiritually. In such an environment, employees develop to their full
potential. Managers and their subordinates raise one another to higher levels of
morality and motivation. According to Chappell (1994), this in turn will lead to high
morale, loyalty, and commitment on the part of workers and managers. Workers will
also be more willing to go beyond the call of duty in carrying out their daily tasks.
Organ coined the term Organizational Citizenship Behavior (OCB) to denote
“individual contributions in the workplace that go beyond role requirements and
contractually rewarded job achievements” (Organ & Ryan, 1995, p. 775). OCB goes
beyond role requirements, being characterized by spontaneity and innovativeness.
Organ agrees with Chester Bernard (1938) that such spontaneous behaviors are
important for the effectiveness of any organization. Throughout any organization, there
are countless acts of OCB, which members of the organization perform on a daily basis.
Although these acts, taken for granted most of the time, may not individually amount to
much of significance, they are indispensable for the smooth running of the operations of
any organization. Organ (1988) argues that high occurrences of OCB “in the
aggregate” should lead to more organizational effectiveness (p. 6). Regardless of how
organizational effectiveness is conceptualized, ultimately it has to do with how efficiently
the organization utilizes its productive resources and/or its success in procuring and
retaining them. Organizations spend a substantial amount of resources on maintaining
their internal social systems. The more resources the organization spends on internal
maintenance, the less efficient it will be since those same resources could have been
used for production of goods and services. Inasmuch as OCB contributes to lowering
the cost of system maintenance and/or procurement and retention of tangible and
intangible resources, it would render the system more effective.
There are at least three empirical studies (Karambayya, 1989; Podsokoff &
MacKenzie, 1994; and, Podsokoff et al., 1997) that have confirmed the positive effects
OCB could have on organizational effectiveness as gauged by different measures of
productivity.
In today’s organizations, contextual performances like the ones
encompassed in OCB, assume more weight and importance since it is becoming harder
and harder to incorporate everything that needs to be done in in-role job descriptions.
A research stream spawned by Bateman & Organ (1983) (Organ, 1988;
Konovsky & Organ, 1996; Organ & Ryan, 1995; Podsakoff et al., 1997) delineated and
refined OCB. OCB is defined to consist of such factors as Altruism (providing aid to a
specific person, such as a coworker); General Compliance (conscientiousness in
attendance, use of work time, respect for company property, and faithful adherence to
rules about work procedures and conduct); Sportsmanship (demonstration of
willingness to forbear minor and temporary nuisances without fuss, appeal, or protest);
Civic Virtue (responsible and constructive involvement in the issues and governance of
Proceedings of 3rd Global Business and Finance Research Conference
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the organization); and Courtesy (gestures taken to help prevent problems of work
associates) (Organ & Ryan, 1995).
Organ (1990) traces employee satisfaction, particularly that aspect of satisfaction
that has to do with the cognitive appraisal of job conditions, as opposed to its
dispositional aspects, as one of the major antecedents of OCB. As such, “OCB is
deliberate and controlled, not impulsive or merely expressive of mood.” (p. 58). It is
theoretically sound to expect higher OCB in MBV organizations, not only because these
organizations claim a highly satisfied workforce, but also because of the perceived
inherent fairness associated with them.
Organ (1990) reports that a sizable part of job satisfaction measures and
responses is attributed to the cognitive and fairness component of job satisfaction.
Organ hypothesizes that “job satisfaction cognitions relate to OCB to the extent that
they reflect fairness judgments,” which in themselves are cognitive judgments.
Empirically Organ & Konovsky (1989) attempted to pin down which job satisfaction
component, affective or cognitive, drives OCB. Their findings supported the hypothesis
that cognitive job appraisals predict occurrences of OCB better than affective or mood
states of employees can. Since MBV organizations are reputed to be extremely fair, it
is reasonable to expect that they would score high on measures of OCB. Furthermore,
Organ (1990) reports that Farh, Podsakoff, and Organ (1988) found that stimulating job
characteristics (as per Hackman and Oldham, 1975) to be one of the predictors of OCB.
As mentioned earlier in this study, MBV’s work meaningfulness is putatively more
intense than Hackman and Oldham’s (1975) job meaningfulness. The findings of Farh
and colleagues (1988) support that job meaningfulness has a direct effect on OCB
independent of satisfaction or fairness.
Organ (1990) offers a social exchange explanation of OCB. Social exchange
organizations create cultures, which predispose them to emphasize the wholistic nature
of a specific member’s contribution. In contrast, organizations based on economic
exchange have a market culture, which predisposes them toward quid pro quo
relationships with their members. MBV organizations are inherently predicated on
social exchange not only in terms of their reliance on intensive socialization, but also the
self-selected nature of their employees who seem to be a priori committed to the stated
goals of the organization. Organ (1990) theorizes that the type of organizational
exchange – economic or social – can either encourage or stifle the dispositional
antecedents of OCB.
MBV organizations seem to create an environment of
socialization, which motivates its members to establish social exchange relationships,
which in turn encourages a high incidence of OCB.
In many respects, MBV organizations are similar to covenantal organizations, as
described by Graham & Organ (1993). Graham & Organ (1993) classify organizations
into transactional, social exchange and covenantal, depending on the type of contract
underlying relationships among organizational participants. Both transactional and
social exchange organizations are characterized by quid pro quo arrangements,
predicated on a mix of self-interest, commitment as well as the value of fairness. In
contrast, contractual relationships in covenantal organizations are not limited to dictates
Proceedings of 3rd Global Business and Finance Research Conference
9 - 10 October 2014, Howard Civil Service International House, Taipei, Taiwan ISBN: 978-1-922069-61-0
of self-interest, although self-interest is not abrogated altogether.
Covenantal
organizations commit participants to “a transcendental set of values,” vision of a future
state, and a mission of how to get there, all espoused by the leader (p. 490).
Participants are motivated by a desire to realize these sets of transcendental values.
Covenantal organizations bind participants into long-term and intensive relationships,
which demand committed and active involvement of the whole person. Such
organizations create a work environment that does not draw distinctions between in-role
and extra-role behaviors.
Similar to covenantal organizations, MBV organizations are characterized by
strong organizational commitment (OC) and higher levels of OCB.
Organ (1990)
makes a clear distinction between OC and OCB. According to Organ, OC, or at least its
affective dimension, precedes OCB. In their meta-analytic review of 55 empirical
studies on OCB Organ and Ryan (1995) conclude that affective commitment correlates
positively with OCB. O’Reilly and Chatman’s (1986) work assessed OC as a concept
that denotes the strength of attachment to an organization. Mowday, Steers and Porter
(1979) conceptualized organizational commitment as a form of identification with, and
dedication of, one’s energies to the organization’s goals and values. As such,
commitment consists of such factors as (1) belief in and acceptance of organizational
goals and values, (2) willingness to exert effort towards organizational goal attainment,
and (3) strong desire to maintain organizational membership. Allen and Meyer (1990)
name these three components of commitment affective, normative and continuance,
respectively. Other researchers lump together the affective and normative components.
In this case, affective commitment refers to “the strength of an individual’s identification
with and involvement in a particular organization” (Mowday et al., 1974, p. 604),
whereas continuance commitment is the tendency to engage in “consistent lines of
activity,” not because the individual necessarily has strong identification with the
organization, but because of the perceived costs doing otherwise (Becker, 1960, p. 33.)
Thus, affective and continuance commitments are driven by different motivations.
According to Mowday and colleagues (1982) those who value and want to maintain
membership in the organization should be willing to exert considerable effort on behalf
of the organization. On the other hand, those who feel compelled to maintain
membership to avoid financial or other costs may do little more than the minimum
required to retain employment.
Proceedings of 3rd Global Business and Finance Research Conference
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