AIMS International Conference on Value-based Management
August 11-13, 2010
Impact of Workplace Spirituality on Organization Culture through Improved Employee Productivity Yogesh Mehta Srishti Joshi Sapient Institute of Management Studies, Indore
[email protected] [email protected] Recent times buzz about IQ and EQ being insufficient and call for Spirituality at workplace which means a virtuous workplace where employees work for its own sake overlooking extrinsic rewards. It generates excellence for its own sake detaching from selfish gains. Productivity depends on motivation and ability to detach from selfish gains apart from the organizational aspects of resource availability and rewards. To make organizations more productive the right combination of ethics in work and work ethic is essential. This paper highlights the impact of Workplace Spirituality on organization culture and employee productivity. It explores how SQ of employees influences the organizational culture which affects employee productivity. Key words: Workplace spirituality, productivity, organization culture, motivation.
1. Introduction A major transformation is witnessed in the organizations of today with an emerging movement to bring spiritual and ethical values into business. Issues regarding spirituality at workplace are beginning to attract the attention of business leaders, top managers and employees alike. This ‘Spiritual Movement’ in the organizations is different from just abiding by the rules and obeying orders. This dimension deals with adding meaning, purpose and a strong sense of community within the organization. Many organizations no longer see profit alone as the bottom line. Instead they honor a commitment to ‘people, planet, and profit’ also referred to as the ‘triple bottom line’. With Spirituality creeping in the organizations, workplaces are turning inward in search of inner peace and a desire to gain more than a hefty paycheck from business. Employees, working environment and the society have become as important as economics in the eyes of business leaders. Spirituality comes from one’s inner self, benefiting self and others, creating an alignment of purpose and people. It comes with surety validated by the heart instead of the mind alone and creates inner meaning and motivation about work extending inner peace in one’s self with a natural desire to help others grow, learn, and succeed while respecting and valuing individual and group dignity. Scarcity of resources is a well manifested fact. With growing numbers to feed, this problem has taken an enormous shape which forces organizations to be more productive which means efficient utilization of available resources to generate greater levels of outputs to meet the ever-increasing demands. Hence increased or improved employee productivity is viewed as one of the many possible solutions to this critical issue. Studies and researches undertaken on the measures to increase employee productivity reveal the significant role played by the leadership, culture and motivational levels of employees. Increasing attrition rates, grievances among employees, high levels stress and burn-outs, low employee morale, absenteeism and the like are the major indicators as well as the consequences of degrading productivity of employees the reasons of which may be accorded to the nature of leadership, motivation, corporate culture and personal factors of employees such as their role conflicts, values, beliefs, feelings, attitudes, perceptions, goals etc. all rooted in their levels of spiritual intelligence. Thus, it becomes necessary to understand the relationship between spiritual intelligence of employees, workplace spirituality, organizational culture and employee productivity and the manner in which this linkage and be harnessed to create better performing organization.
2. Review of Literature Jean-Claude Garcia-Zamor, Florida International University (FIU): Workplace Spirituality and Organizational Performance, Public Administration Review, Volume 63 Issue 3, Pages 355 – 363 Published Online: 29 Apr 2003. This article reviews the literature on workplace spirituality, pointing out emergent theories and examining the links between this phenomenon and organizational dynamics and examines workplace spirituality in a historical context and compares it to religious beliefs and to established ethical theories and moral principles. It also looks at organizations in which an emphasis on spiritual values has had an impact on work 221
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productivity and suggests ways that managers and administrators in both the public and the private sector can use workplace spirituality to increase performance and develop ethical organizations. Robert W. Kolodinsky, Robert A. Giacalone and Carole L. Jurkiewicz Workplace Values and Outcomes: Exploring Personal, Organizational, and Interactive Workplace Spirituality, Journal of Business Ethics, Volume 81, Number 2 / August, 2008, p-465-480, publisher- Springer Netherlands, Published online: 25 July 2007. This study examined previously unexplored workplace spirituality outcomes. Using data collected from five samples consisting of full-time workers taking graduate coursework, results indicated that perceptions of organizationallevel spirituality appear to matter most to attitudinal and attachment-related outcomes. Specifically, organizational spirituality was found to be positively related to job involvement, organizational identification, and work rewards satisfaction, and negatively related to organizational frustration. Personal spirituality was positively related to intrinsic, extrinsic, and total work rewards satisfaction. The interaction of personal spirituality and organizational spirituality was found related to total work rewards satisfaction. Cathy Driscoll and Elden Wiebe: Technical Spirituality at Work, Jacques Ellul on Workplace Spirituality, Journal of Management Inquiry December 2007 vol. 16 no. 4 333-348. The authors assess the current state of workplace spirituality from the philosophical perspective of Jacques Ellul and show how the workplace spirituality movement has not escaped the infiltration and pervasiveness of technique. They suggest some possibilities for moving toward an authentic spirituality at work followed by some implications for undertaking scholarly research on workplace spirituality that explicitly recognizes technical dominance in spirituality. Louis W. Fry, Tarleton State University-Central Texas, 1901 South Clear Creek Road, Killeen, TX 76549, USA: 2003Toward a theory of spiritual leadership, The Leadership Quarterly, Volume 14, Issue 6, December 2003, Pages 693-727 Accepted 3 September 2003. ; Available online 29 November. In this article, a causal theory of spiritual leadership is developed within an intrinsic motivation model that incorporates vision, hope/faith, and altruistic love, theories of workplace spirituality, and spiritual survival. It was indicated that the purpose of spiritual leadership is to create vision and value congruence across the strategic, empowered team and individual levels and, ultimately, to foster higher levels of organizational commitment and productivity. It argued that spiritual leadership theory is not only inclusive of other major existing motivation-based theories of leadership, but that it is also more conceptually distinct, prudent, and less conceptually puzzled. And, by incorporating calling and membership as two key follower needs for spiritual survival, spiritual leadership theory is inclusive of the religious and ethics and values-based approaches to leadership. Finally, the process of organizational development and transformation through spiritual leadership is discussed. Suggestions for future research are offered. James S. Sass: Characterizing organizational spirituality: An organizational communication culture approach, Communication Studies, Volume 51, Issue 3 Autumn 2000 , pages 195 – 217, Previously published as: Central States Speech Journal (0008-9575) until 1989. This study extends the academic literature on spirituality in organizations. It was based on qualitative field research in a nursing home, advanced understanding of spirituality in organizations by identifying three central characteristics of organizational spirituality: value alignment, personal spirituality, and relationship-based organizing. These central characteristics, supported by the field research and current literature on spirituality in organizations, lead to issues for further research. The study concluded with an invitation for dialogue on the emergent topic of organizational spirituality.
3. Workplace Spirituality Work life has become more demanding, fast-paced, stressful, ambiguous, and chaotic that employees are compelled to seek value-oriented answers and means of attaining personal stability from within. They have come to realize that inner wisdom is the only source that can sustain their adaptation and stability in the long run. Spirituality in the Workplace is a movement that began in the 1990s in which individuals seek to live their faith and spiritual values in the workplace. Employees find nourishment for both the vertical and horizontal dimensions of their spirituality at work. It is about individuals and organizations seeing work as a spiritual path, as an opportunity to grow and to contribute to society in a meaningful way. It is about care, compassion and support of others; about integrity and people being true to themselves and others. Examples of vertical organizational spirituality include: meditation time at the beginning of meetings, retreat or spiritual training time set aside for employees, appropriate accommodation of employee prayer practices, and openly asking questions to test if company actions are aligned with higher meaning and purpose. Companies with a strong sense of the horizontal will generally demonstrate the following: caring behaviors among co-workers; a social responsibility orientation; strong service commitments to customers; environmental sensitivity; and a significant volume of community service activities. The necessity for spirituality has intensified because of the pressures of today’s workplace in terms of personal stability, balancing work and personal life, greater performance, adding more meaning to work, work force 222
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reduction, Humanistic Organizational Cultures – the connect (or disconnect) between an individual's personal values and the organization's practiced values and Self-Management. Solutions to these challenges require "inner space" exploration and resolution which are spiritual process. Workplace spirituality includes practices of humanistic and employee-friendly work environments, service orientation, creativity and innovation, personal and collective transformation, environmental sensitivity, and high performance. The key elements in integrating spirituality into the workplace are: people, service, organizational self-awareness, wisdom and the new leadership. Workplace activities such as Bereavement programs, Employee Assistance Programs, Programs that integrate work/family and Diversity programs that create inclusive cultures etc. are spiritually sourced and are gaining acceptance in many modern day organizations. A workplace comprises of employees right from the office boys and attendants to the top level managers. Hence workplace spirituality can be attributed to the level of spiritual intelligence (or Spiritual quotient) of all of them. This is so, since the workplace can be transformed spiritually only when its employees have a spiritually sound mind and a high score on the parameters (as described by Zohar) of Self-Awareness which is to know who you really are that you are connected with the whole universe, Vision & Values Led or Idealism which is the natural will to serve and is definitive of our humanity, The Capacity to Face and USE Adversity, which means to own our mistakes and adversity and use pain and tragedy to learn, To be Holistic which is Seeing the connections between things, being open to and interested in everything, Diversity that deals with thriving in and celebrating variety in everything, Field Independence (Courage) which is a term from psychology that means the courage not to adapt, to be independent, The Tendency to Ask WHY? Questions are infinite and questions create reality, The Ability to Re-Frame that is to put things into a larger context of meaning and Spontaneity which is being responsive to the world without acting in any whim. Thus workplace spirituality can be studied as the aggregation of spiritual intelligences of the employees working in it and the practices they undertake to sustain the level of spirituality at workplace.
4. Spiritual Leadership and Workplace Spirituality The role of leadership in promoting spirituality becomes very significant in turning organizations into ‘Living Organizations’ as termed by William A. Guillory in ‘THE LIVING ORGANIZATION, Spirituality in the Workplace’, Innovations International, Salt Lake City, UT, 1997. The top managers and business leaders need to themselves should score high in spiritual intelligence to create a spiritual workplace and in turn motivate employees to reap maximum benefit, inner peace and improved productivity in the long run. Spiritual leadership differs from traditional leadership which is objectives/outcomes driven by being values driven. Spiritual leadership involves motivating and inspiring workers through an uplifting vision and a culture based in philanthropic values to produce a more motivated, committed and productive workforce. It involves having a clear vision, risk-taking ability, courage, inspiration, trust and persistence. It comprises the values, attitudes, and behaviors essential to fundamentally motivate one-self and others in order to have a sense of spiritual well-being i.e. to experience meaning in their lives, have a sense of making a difference, and feel understood and appreciated. This effects in establishing leader and follower spiritual well-being with value congruence across the strategic, empowered team, and individual levels to, finally, foster higher levels of employee positive human health, psychological and spiritual well-being, organizational commitment, productivity and, ultimately organizational performance. In order to incorporate activities which enhance and encourage spirituality at workplace such as Bereavement programs, Employee Assistance Programs, Programs that integrate work/family and Diversity programs that create inclusive cultures etc, the faith and approval of business leaders in this direction becomes utmost important. If the leaders themselves fail to comprehend the necessity of workplace spirituality and its benefits and importance then such programs would be ineffective in producing desired transformation in the workplace. Studies and researches have revealed that leadership based on vision, altruistic love, hope and faith is assumed to result in an increase in one’s sense of spiritual well-being and ultimately positive organizational outcomes such as increased organizational commitment, productivity and continuous improvement and Profits and sales growth.
5. Workplace Spirituality, Employee Productivity and Organization Culture Organizational culture describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization." Strong culture is said to exist where staff respond to stimulus because of their alignment to organizational values. In such environments, strong cultures help firms operate like well lubricated machines, cruising along with outstanding execution and perhaps minor tweaking of existing 223
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procedures here and there. Conversely, there is weak culture where there is little alignment with organizational values and control must be exercised through extensive procedures and bureaucracy. Organizational culture can be measured on the parameters such as employee participation or involvement, employee empowerment, team orientation, capability development, consistency, core values, agreement, coordination and integration, adaptability, creating change, customer focus, organization learning, mission, vision, strategic direction and intent, goals and objectives etc. Almost all these factors are affected by the level of workplace spirituality. In order to compensate for the loss of job security and the continuing need for high-performing employees, today’s productive and profitable workplaces require organizational cultures that integrate humanistic core values with core business policies, decisions, functions, and behaviors; cultures that support the physical, mental, and spiritual well-being of its employees. Studies and researches reveal that leadership effectiveness has an impact on the organizational culture. A leader scoring high on spirituality is bound to establish procedures and systems that empower his employees and at same time are team-oriented, adaptable, consistent and coordinated. He would also have clarity of goals, mission and vision of his organization and would spread the same among his subordinates. Such an environment fosters organizational learning and also reduces grievances, role conflicts thereby reducing attrition rates. So it can be inferred that spiritual leadership acts as a catalyst in enhancing the levels of spiritual intelligence of the employees. Spiritually intelligent employees contribute in making the workplace spiritual along with their leader. This has a positive impact on their motivational levels, making them self-motivated. Being largely self motivated and lesser reward driven, they are able to contribute more towards better organization performance thereby increasing their productivity. This increase in productivity reinforces their motivation levels and establishes a strong organization culture. Again, a flexible and stable organization culture having both internal as well as external focus acts as a catalyst for higher employee productivity. A more productive workforce motivates and inspires the new employees as well for achievement of better results and thus establishes a strong spiritually sound workplace with an enabling organizational culture. Employee Productivity deals with efficient utilization of available resources to generate increased outputs, reduce wastages and enhance organizational performance. When we talk about workplace spirituality, there is an indication towards reduction of wastage of resources in conflict management, grievance handling and employee stress levels. Such practices lead to goal congruence and accomplishment of organizational mission facilitating an empowering, encouraging organizational culture. This indicates towards development of a spiritual workplace to as to enhance employee productivity levels and establishment of an enriching organizational culture. The Model Spiritual Leadership
Organization Culture
Employee Productivity
Workplace Spirituality
Organizational Performance
Employee Motivation
The above figure shows the relationship between spiritual leadership, workplace spirituality, Employee motivation level, employee productivity, organization culture and organizational performance. All this starts with sound spiritual leadership so that activities enhancing workplace spirituality are fostered and encouraged. Once the leaders are spiritual, they propagate the same down the workplace at every level. This is the main reason behind workplace spirituality. Hence, to establish a spiritual workplace, spiritual leadership is essential. A spiritually intelligent workforce is self motivated and is not entirely dependent on rewards or benefits alone for feeding their motivational needs. They start working for the sake of working and in a way, are directed towards ‘nishkaam karma’. This enhances their productivity as they are self motivated and no more 224
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driven by external stimuli. A force, strong and internal keeps them going to achieve something even beyond their imagined potentials. With this, they are in a better position to resolve conflicts, co-ordinate well with each other, attain greater levels of satisfaction with their jobs and are able to relate in a better manner with the goals of the organization. All the more, a spiritually strong business leader establishes a strong organization culture with a sound value system, clear mission, vision and achievable and desirable goals contributing the most to the society keeping in mind the triple bottom line. This organization culture, set up by the leader needs to be understood, maintained, sustained, spread, and propagated by the employees. This is possible only when the employees are motivated and spiritually powerful. Productive employees are more confident, goal oriented, positive in their mental disposition and willing to spread the same in the organization. Thus, they become the main contributors towards an encouraging, healthy, growth oriented organizational culture. This motivates the leader as well to continue the methods adopted by him and gives an impetus to him, raising his self confidence. He would now be free to experiment since the employees are open to change and are willing to innovate. An encouraging organizational culture and powerful spiritual leadership also enhances employee motivation levels and builds up their trust in the organization. The cycle continues and it is seen that rate of grievances, employee absenteeism, attrition rates diminish. The dotted arrow in the figure depicts the impact of all the factors in enhancing organizational performance. Moreover, organizational culture, employee motivation, spiritual leadership, workplace spirituality and employee productivity, all are positively related with organizational performance.
6. Recommendations Spirituality is more of a process than an end. It is about how things are performed instead of just achieving goals. The development of an individual and building on creativity will naturally require spiritual practices in the process of achieving an organizational goal. The rate at which an individual grows is mostly selfdetermined. For example, an organizational goal to deliver a product on time within budget may force or inspire an employee to learn new skills and take on greater responsibility to achieve that goal. Here, spiritual goals and organizational goals are not compatible as well as mutually beneficial. The following recommendations should help leaders and employees alike to establish workplace spirituality and reap the benefits of increased employee productivity leading to a flourishing organizational culture. 1. Appointment of a committee to determine the role played by spirituality in the organization with an appropriate definition of "spirituality at workplace" is the first step towards establishing workplace spirituality. 2. The strategic intent and the strategic plan need to be defined integrating it with spirituality. 3. A Spirituality Survey of the organization would aid in understanding the present levels of spiritual intelligence of the workforce and the scope of further improvement in the direction. 4. For this to become possible, it becomes necessary that the organization has an environment of trust so that the employees find if comfortable to question, learn, and contribute. 5. Personality development seminars and workshops that include clarity of values and desired behavior of employees with a humanistic tilt should be incorporated with higher frequency. 6. The organization should set up policies that facilitate and foster diversity in culture, ideas and thoughts. 7. To adapt in a workplace scoring low in spirituality, spiritually sourced personal values such as family, personal time, creativity, religious practices, health, etc. need to be defined, and compared to the personal workplace values of money, respect, quality, empowerment etc. and then decide to either remain non reactive to the workplace, bring a positive change in the working atmosphere or look for a workplace that satisfies your spiritual urge and provides you with inner peace. 8. Leaders who need to lead a spiritually less intelligent team should first begin with spreading and strengthening values and morals in the name of business ethics. 9. Brainstorming sessions, discussions, and exposure to literature on ethical practices in business or ethical business conduct, initially and gradually on spirituality would go a long way in raising the spiritual quotient of employees. 10. In order to practice workplace spirituality, it becomes necessary that the employees are free to make mistakes as far as they learn from every mistake not repeating the same mistake. This is because; spirituality can spread its wings only in the absence of fear. The fear of losing a job, of a pay cut or of demotion are nothing but demotivating factors for employees which hampers their productivity as well as serves as a barrier to spiritual growth since it blocks their potentials to be ready to experiment, change and innovate. It also has negative impact on the organization culture. 11. Spirituality is not absence of competition; it is absence of unhealthy competition. Hence, organizations should aid healthy competition by disseminating information to all uniformly, giving the employees an equal opportunity to learn and grow and allows the best man to win. 225
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7. Conclusion While many people think there is nothing spiritual about work and the workplace, there are many areas of working life in which spiritual intelligence can be applied and benefits can be reaped to the maximum. This study helped us to conclude that workplace spirituality plays a significant role in establishing a strong, well understood and encouraging positive organizational culture by enhancing employee motivation level. It also brings to light the importance of spiritual leadership, organizational culture and employee productivity in improving organizational performance. Through the model proposed in this paper, a relationship between the workplace spirituality, spiritual leadership, employee motivation, employee productivity, organizational culture and organizational performance is established. Workplace spirituality is thus very important in every organization as it has positive impact on employee job performance and on employee productivity. Also, organizational culture affects the level of organizational productivity in a positive way. Thus, workplace spirituality is important to find and utilize the deepest inner resources from which comes the capacity to care and the power to tolerate and adapt with other employees at the workplace, to develop a clear and stable sense of identity as an individual in the context of shifting workplace relationships, to discern the real meaning of events and circumstances, and make work meaningful, to identify and align personal values with a clear sense of purpose and to live those vales without compromise and demonstrate integrity by example.
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