Transformative Organizations Response Books_14 docx

CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 469 Conversely, it is held that the management practices inconsistent with societal culture are likely to impede organizational effectiveness (Newman and Nollen, 1996). Another way of approaching the role of societal culture is to recognize that different configurations of societal culture may be associated with different organizational qualities. For instance, Hofstede (2001) observes that the societal culture dimensions of uncertainty avoidance and power distance have an influence on the quality of organization. A societal culture (a) high in uncertainty avoidance and high in power distance is likely to be associated with the organizational quality of standardized bureaucracy, with an emphasis on standardized work processes; (b) high in uncertainty avoidance and low in power distance is likely to be associated with the organizational quality of professional bureaucracy, with an emphasis on professional qualification and skills of the workforce; (c) low in uncertainty avoidance and high in power distance is likely to be associated with the organizational quality of authoritarian bureaucracy, with an emphasis on family paternalism; (d ) low in uncertainty avoidance and low in power distance is likely to be associated with the organizational quality of mutually adjusting adhocracy, with an emphasis on market type fluidity. Finally, one may be interested in specific target qualitysuch as the potential of the society to nurture transformative organization, or what may be termed as transformative potential. It would then be possible to identify a configuration of societal culture that would be conducive to the attainment of the target quality and to authenticate the relationship between that benchmarked configuration and the measures of target quality. Specifically, the steps involved in this process are: 1. Define the target quality (in our case, transformative potential), 2. Develop a benchmarked configuration of societal culture for attaining the target quality, 3. Authenticate the relationship between the behavioral benchmark and the measures of target quality. TARGET QUALITYTRANSFORMATIVE POTENTIAL We define transformative potential as the potential of an organization to develop sustainable transformation because of the positive and dynamic features of its societal culture. BENCHMARKED CONFIGURATION OF SOCIETAL CULTURE We rely on the GLOBE program to develop a benchmarked configuration of societal culture in which organizations with high transformative potential are likely to emerge. GLOBE has collected data on cultural values and practices and leadership attributes from 18,000 managers in 62 societies. In GLOBE, nine dimensions are used for a systematic understanding about the culture of each society: (a) Performance Orientation, (b) Assertiveness Orientation, (c) Future Orientation, (d) Humane Orientation, (e) Institutional Collectivism, (f ) Family 470 TRANSFORMATIVE ORGANIZATIONS Collectivism, (g) Gender Egalitarianism, (h) Power Distance, and (i) Uncertainty Avoidance. Performance Orientation was derived from McClellands (1961) work on the need for achievement. Hofstedes (1980) construct of Masculinity was used as a basis to develop the two distinct dimensions: Assertiveness Orientation and Gender Egalitarianism. Assertiveness Orientation is rooted in the interpersonal communication literature (Sarros and Woodman, 1993). Gender Egalitarianism is similar to the United Nations Development Programs (UNDP) concept of Gender Empowerment. Future Orientation is derived from Kluckhohn and Strodtbecks (1961) Past, Present, and Future Orientation dimension, and from Hofstedes (2001) Long Term Orientation, which focuses on the temporal mode of the society. Humane Orientation has its roots in Kluckhohn and Strodtbecks (1961) work on the Human Nature is Good versus Human Nature is Bad dimension. Institutional Collectivism captures (inversely) the same construct as Hofstedes Individualism. Family Collectivism measures pride in and loyalty to the family, and is derived from the Triandis et. al.s (1988) work on in-groups. Power Distance and Uncertainty Avoidance are based on Hofstedes (1980) work. GLOBE measured each cultural construct in two ways: cultural practices focused on how things are (referred to as As Is construct), and cultural values focused on how things should be (referred to as Should Be construct). The items used to measure both practices and values were identical, but the respondents were asked to evaluate them both in as is as well as should be terms. The construct validation of the GLOBE cultural scales is available in Gupta, Sully and House (2003). The major implications of each of the nine dimensions are as follows: 1. Performance Orientation: The performance orientation dimension reflects the extent to which a society encourages and rewards improved performance, goal-oriented behavior, and innovation. Performance oriented cultures encourage people to be in control, using their experience, intelligence and skills to navigate the currents towards their goal. When faced with obstacles, they encourage a diligent and conscientious use of analytical perspectives, such as brainstorming, weighing the options, and plotting the coursethus such societies tend to be adaptable and versatile. Such societies also encourage diversity of perspectives and religious ideologies to foster a more versatile response-ability. 2. Assertiveness Orientation: The dimension of assertiveness orientation is associated with a strong consciousness, expression, articulation, and communi- cation of ones thoughts, feelings, beliefs, and rights; in public, political and social forums, and is related to physical and psychological aggressiveness and confrontation. Assertive societies emphasize social skills and communication, direct personal influence and expression, and overall inter-personal effectiveness. Assertive orientation also contributes to people being more politically astute they are willing to ask for what they want, deny what is not in their interest, and articulate positive and negative messages to others in an open manner. 3. Future Orientation: The dimension of future orientation is reflected in behaviors such as planning, preparing and investing for the future. In long-term CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 471 oriented cultures, a strong concern for virtue allows a pragmatic integration of morals and practice. As such, the material and spiritual are more integrated. The value of future orientation, with its emphasis on sacrifice, savings and persistence, is associated with a spiritual force to search for the meaning of life beyond the habits of consumption and attraction of materialism. Such positive, meaningful psychology and visualization have an important influence on the capacity of the human body and mind to effect changes over time. 4. Humane Orientation: The humane orientation dimension is concerned with generosity, compassion, and empathy for others. Societies with high humane orientation strive to use reason, the lessons of history, and personal experience to form an ethical/moral foundation and meaning in life. While respecting an unrepressed freedom to pursue individual interests, these societies encourage responsibility and consideration for others. They are founded on civil virtues such as honesty, uprightness, truth, sincerity, integrity, and fairness. The dispo- sitions of greed, envy, hatred, and cheating are checked, and there is limited emphasis on hedonic pleasure, personal comfort, and material success. 5. Institutional Collectivism: Institutional collectivism construct reflects induce- ments and rewards for collective behavior and norms, rather than incentives and rewards for individual freedom and autonomy. Such collectivism is exhib- ited in preferences for closer work relations and higher involvement with ones social unit. In institutionally collectivist cultures, people are encouraged to seek self-critical and self-improving orientations as a means to pursue the cultural goals associated with interdependence and trust. In this manner, institutional collectivism emphasizes shared objectives, interchangeable interests, and respect based on socially legitimized and institutionalized criteria. 6. Family Collectivism: The family collectivism construct is associated with pride in affiliation and a general affective identification with, and a general affective commitment towards, the family, group, community, and nation. It represents a high degree of emotional attachment and personal involvement in the larger group, thus fostering a focus of the people in the overall interests of the group. However, responsibility and identity begins with the immediate group, and then gradually and weakly extending externally. As a result, family collectivism may also be associated with degenerative tendencies such as corruption and nepotism. 7. Gender Egalitarianism: The gender egalitarianism construct reflects the absence of gender-dependent division of roles, expectations, evaluations, and power in a society. In gender egalitarianism societies, there are fewer gender stereotypes that characterize women as passive, weak and deferential and prima- rily domestically oriented. More than economic modernization, it reflects an inherent understanding between men and women, enhancing their ability to work together in social and economic spheres. Gender egalitarian societies not only tolerate diversity, but also emphasize understanding, respect, and nurtur- ing of diversity. 472 TRANSFORMATIVE ORGANIZATIONS 8. Power Distance: The power distance construct reflects the extent to which members of a cultural group expect and agree that power should be shared unequally. Power distance is readily valued at a cultural level when used for social causes, such as through the practice of both empowerment and produc- tivity. Power distance is also associated with monopolistic orientation: endorse- ment of the differentials in the performance capacities of various groups based on their accumulation of the private and intellectual properties. However, unless constrained in some manner, power in high power distance may be exercised in an aggressive manner for self-aggrandizing purposes, to the detriment of the society. 9. Uncertainty Avoidance: The uncertainty avoidance construct focuses on the extent to which people seek orderliness, consistency, structure, formalized procedures, and laws to deal with naturally occurring uncertain as well as important events in their daily lives. Uncertainty avoidance is also associated with the social reliance on experts, technology, money and material possessions, as well as social organization, legislation, and governance. Material accumulation and technological advancements, for instance, can help in dealing with the uncertain changes in the environment, and allow exploitation of newly emergent opportunities in an entrepreneurial fashion while containing the risks. Based on the above, we propose that the societal culture dimensions of performance orientation, assertiveness orientation, future orientation, humane orientation, institutional collectivism, gender egalitarianism, and uncertainty avoidance are positively related with the transformative potential of the organi- zations. In contrast, the societal culture dimensions of family collectivism and power distance are inversely related with the transformative potential of the organizations. Therefore, we define transformative potential Index as follows: Mean (performance orientation, assertiveness orientation, future orientation, humane orientation, institutional collectivism, gender egalitarianism, uncertainty avoidance) æææææææææææææææææææææææææ Mean (family collectivism, power distance) The average scores for the 10 GLOBE cultural clusters on the Transformative Potential Index are given in Table 26.1, separately for practices and values measures of the cultural dimension constructs. There is no significant difference among various cultural clusters on the value-based transformative potential index. However, there exist statistically significant differences among various cultural clusters on the practice-based transformative potential index. Specifically, the three Protestant culture clustersNordic, Germanic and Angloshow significantly higher scores on practice-based transformative potential index, while the Confucian culture cluster shows average scores. On the other hand, Sub-Sahara Africa, Southern Asia, and Latin Europe are moderately weak in practice-based transformative potential index. Finally, Middle East, Eastern Europe and Latin America are significantly low in practice-based transformative potential index. CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 473 Importantly, the societies value transformative potential index (mean=1.17) more than they practice it (mean=0.79). In all societies, except New Zealand and Denmark, value-based transformative potential index exceeded practice-based index. Danish society, for instance, is distinctive for its high prominence to history, with very wide time frames, in the media. Danish media regularly contains stories about or references to history, not necessarily as a background for todays events, but just as anecdotes that appear to serve little more than an entertainment value (Ekecrantz, 2001). In such a situation, there is a sense of appreciation for the existing transformative practices, and further transformation in such practices is not necessarily deemed of high value. Table 26.1: Mean Scores for Practice-based and Value-based Transformative Potential Index, by Cultural Clusters Practice-based Value-based Transformative Transformative Potential Index Potential Index Nordic Europe 1.04**+ 1.13 Germanic Europe 0.92**+ 1.21 Anglo 0.90**+ 1.12 Confucian Asia 0.79 1.18 Sub-Sahara Africa 0.78* 1.19 Latin Europe 0.77* 1.20 Southern Asia 0.73* 1.21 Middle East 0.72** 1.13 Eastern Europe 0.71** 1.16 Latin America 0.70** 1.20 Overall 0.79 1.18 *: p<0.05; **: p<0.05; +: significantly high; : significantly low AUTHENTICATION OF THE TRANSFORMATIVE POTENTIAL INDEX Table 26.2 reports correlation of practice-based transformative potential index with several measures of transformative effectiveness in social, economic, tech- nological, and political domains in each society. The data was drawn from Gupta and Chhokar (2003) database of GLOBE Education and Research Foundation, originally taken from published sources such as World Bank and United Nations. The societies that score high on practice-based transformative potential index tend to devote a greater share of their national income to education and health, live longer lives, and have more developed human resources and more women in governance positions. They also have higher per capita incomes, greater tertiary employment, more stock market wealth, less income inequality and a low unemployment rate. There is greater mass usage of technological resources such as Internet, telephones and personal computers in such societies. Finally, such societies offer high civil liberties and a transparent governance system, with little or no corruption. Thus, we conclude that the proposed transformative 474 TRANSFORMATIVE ORGANIZATIONS potential index does measure the potential of the organizations in a society to realize sustainable transformation. Table 26.2: Correlates of Practice-based Transformative Potential Index Measure of Transformative Quality Pearsons Correlation Coefficient Social Domain  Human Development Index 0.51** (n=56)  % women in government 0.40** (n=52)  % Education expenditure/GDP 0.46** (n=55)  % Health expenditure/GDP 0.40** (n=55)  Life expectancy at birth in years 0.40** (n=55) Economic Domain  GNP per capita 0.67** (n=61)  % service workers 0.44** (n=54)  % Stock Market Capitalization/GDP 0.65** (n=52)  Gini Index of income inequality 0.46** (n=48)  Unemployment rate 0.38** (n=48) Technology Domain  Telephone main lines per capita 0.67** (n=55)  Mobile phones per capita 0.58** (n=55)  Personal computers per capita 0.79** (n=50)  Internet hosts per capita 0.70** (n=56) Political Domain  Civil liberties 0.50** (n=57)  Lack of corruption 0.68** (n=55) **: p<0.01 FURTHER MANAGERIAL AND RESEARCH CONSIDERATIONS F ROM TRANSFORMATIVE POTENTIAL TO TRANSFORMATIVE ORGANIZATION The foregoing analysis suggests that it would be easier for the firms to sustain their transformations in a society with high practice-based transformative potential index, because in such societies the social, economic, technological and political institutions are likely to be better developed and more sophisticated. On the other hand, it would be quite challenging for the firms in low practice-based Transformative Potential Index societies to sustain their transformations. The concept, technique, and methodology of transformative organization would, therefore, be most relevant and valuable for the firms in such societies to realize their valued transformative potential. The GLOBE study suggests that value-based leadership can be quite effective in forging an ideological foundation for the transformational initiatives (Hartog, House, Hanges, Ruiz-Quintanilla, and GLOBE, 1999). However, value-based leadership has not been easy to enact in many societies. According to Robert CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 475 House (1996), a key impediment is the lack of appropriate institutional foundation: All scholars who have attempted to explain value based leadership agree that it must be based on the articulation of an ideological goal. However, since ideological goals often challenge the status quo, their expression is often suppressed. Opportunity to articulate such a goal, whether in stressful or non- stressful situations, can thus be considered as one of the situational requirements for a person to emerge as a value based leader. It is perhaps lack of such opportunity that accounts for the absence of value based leaders, under condition of suppression of democracy, of protest movements in totalitarian countries. Therefore, there is a need to develop a leadership that can focus on the transformative potential values aspired by the people in most societies, and use that as a basis for transformative interventions. Thereby, the organizations would be able to offer more meaningfulness, spiritual well being, self-expression, and emotional fulfillment, to their employees by emphasizing the value of transfor- mative potential, and making efforts to actualize this potential in their prac- tices. Such an approach would facilitate a focus on how to create and develop the supportive social, economic, technological and political institutions. There would be less concern with the inherited quality of the institutions, and more interest in actualizing the valued and preferred quality of institutions. One possibility is to rely on entrepreneurial leadership for discovering and executing opportunities for transformative interventions. Entrepreneurial lead- ership is a leadership that creates visionary scenarios, that are used to assemble and mobilize a supporting cast of participants who become committed by the vision to the discovery and exploitation of strategic value creation (Gupta, Macmillan, and Surie, 2003). Entrepreneurial leaders are most effective in situa- tions where the funds are tight and human resources are drained where win- dows of opportunity must be identified to mobilize resources and gain workers commitment to incremental value creation. To do this requires the combined creation of a vision and a cast of supporters capable of enacting that vision: there is little relevance of a vision where the cast of supporters cannot enact, and of a cast of supporters without a suitably compelling vision. Entrepreneurial leaders therefore seek to envision proactive transformation of the firms exchange sys- tem to mobilize support from a workforce to enact the new value-creating net- working system. However, entrepreneurial leaders are not necessarily heroes more often they have humble origins and they have a deep appreciation of the values and ethos of the community around them, and of the practices that the community would like to see transformed (Gupta, Macmillan and Surie, 2003). Gupta, Macmillan and Surie (2003) identify entrepreneurial leadership to be distinctively more effective in the Protestant cultures, compared to the rest of the world. Their finding is consistent with the thesis of Weber (1930:224), who held that the Protestant ethic is associated with leadership in entrepreneur- ship, because it emphasized the sinfulness of the belief in authority, which is only permissible in the form of an impersonal authority. Table 26.3 gives the mean scores of 10 cultural regions, using data derived from the GLOBE Study 476 TRANSFORMATIVE ORGANIZATIONS and reported in Gupta, Macmillan and Surie (2003). The data indicates that entrepreneurial leadership is also highly effective in the Southern Asia cluster, and there is no significant difference between the efficacy of entrepreneurial leadership in the Southern Asia cluster and Protestant cultures clusters. Interest- ingly, another cultural region with strong efficacy of entrepreneurial leadership based on GLOBE data is Latin America. The chapters contained in this book suggest that in Latin America, a high significance is attached to the role of lead- ers in helping the workforce to see positive and creative meaning in organiza- tional initiatives. Table 26.3: Mean Scores on the Effectiveness of Entrepreneurial Leadership in Different Cultural Regions on a scale of 1 to 7, 1 = Very Strongly Counter-effective, 7 = Very Strongly Effective Cultural Region Mean Cultural Region Mean Effectiveness Effectiveness Anglo 6.19 Latin Europe 5.98 Nordic Europe 6.13 Sub-Sahara Africa 5.98 Latin America 6.13 Eastern Europe 5.91 Southern Asia 6.10 Confucian Asia 5.85 Germanic Europe 6.09 Middle East 5.67 Source: Derived from Gupta, Macmillan and Surie (2003). Surprisingly, in Southern Asia, the effectiveness of entrepreneurial leader- ship stands out despite the clusters notably high scores on power distance and family collectivism (Gupta, Surie, Javidan, and Chhokar, 2002). Since Southern Asia shares several of the institutional constraints with other emerging markets that suffer from low practice-based transformative potential, the techniques, methodologies and approaches used by the firms in Southern Asia to execute entrepreneurial leadership should be insightful. The Southern Asian model of entrepreneurial leadership can help managers around the world gain better appreciation of how to discover window of opportunities within a constrained institutional setting, and how to mobilize the cast and envision scenarios for sustainable transformative interventions. SOUTHERN ASIAN MODEL OF ENTREPRENEURIAL LEADERSHIP Though it is difficult to identify one model of entrepreneurial leadership specific to all the firms in Southern Asia, some fundamental and common elements can be identified that pervade several leading firms in many cultures and sub-cultures of Southern Asian cluster. At its very root, the Southern Asian model of entrepreneurial leadership is founded on the Doctrine of Karma. People believe that their present personality and socio-economic status have largely generated from their actions and lifestyles in previous births (Gopalan and Rivera, 1997). Individuals are reborn into wealthier and happier families if they perform their moral duties well in their previous birth (known as the Doctrine of Dharma). CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 477 Similarly, people believe that if they perform their moral duties well in this birth, they will accomplish a better life in their subsequent births. However, the effect of the present actions is seen as not independent of the influences of behaviors from the prior births and before this birth. Therefore, people believe that to improve the future situation, a great deal of planning, learning, experience, and support is needed. To envision a transformational scenario, they often seek to rely on their elders, superiors, and teachers. They also take a cautiously optimistic outlook towards their present situation believing that they would someday, somehow get the needed support and opportunity to redeem their past lapses in moral responsibilities. Contributing to the community by helping friends and relatives in need are deemed important to help maintain this sense of optimism, order, and serenity in the society. In addition, the Southern Asian consciousness sees time as comprising of several phases. The present phase is believed to be the Kali Age (the impersonal machine age) where evil and immorality predominate, as opposed to a stronger prevalence of purity and goodness in the earlier phases (Saha, 1992). The entrepreneurial leaders are therefore expected to strive to rekindle and promote purity and goodness in the society. The leaders are not respected for the material wealth they have acquired or accumulated, but for their entrepreneurial behavior, or what is termed as gyana (knowledge) orientation that is focused on serving the community with a unified consciousness, and thereby gaining a communion of the self (Atman) with the Almighty (the Brahman). This differs from the societies with a doing orientation, where emphasis is given on personal achievement, accomplishment, and accumulation of material wealth alone, for instance in terms of a calling from God as in the Protestant cultures (Weber, 1930). Similarly, the masses in Southern Asian society are respected not for their personal gains, but for their ability to provide for the material well-being of their families. Even students are respected for their sharing of knowledge and helping one another, rather than for their learning alone. Thus, each member of the society is expected to operate as an entrepreneurial cast. Further, dana (giving or offering) is recognized as an important dharma, or moral imperative, for all entrepreneurial leaders in the Southern Asian society. The Gift of food (anna dana) is the most common form of dana, that involves the sharing of food with othersboth who have given the food to the person (such as teachers, ancestors and deities) as well as those who are dependent on the person (such as family members and visitors). On special occasions, food is also donated on a large scale to the impoverished people, and some food may be donated on a regular basis to a smaller group of people in need depending on what the person can afford (Sugirtharajah, 2001). Several other forms of gifts are well recognized, including donation of labor or physical service (shram dana). Because giving is an act of moral duty, dana does not carry an expectation of a return favor from the recipient (Sinha, 1978). These features have important implications for a transformative organization. For instance, suppose an organization negotiates a contract with a customer for delivery of certain products. As part of that deal, the customer informs it of new equipment, which enables expansion of the production scale and the lowering 478 TRANSFORMATIVE ORGANIZATIONS of costs. Grateful for this transformative insight, the organization may offer its products to that customer near or even below its costs, partly as its donation or consideration for the customers leadership (in terms of sharing the knowledge about the new equipment). Such a transfer of consideration may occur even without any implicit or explicit expectation for such gift on the part of the customer. Using an exchange costing approach, taking into account not just the added costs of various services, but also cost savings and growth from the customer advice, the entrepreneurial leaders can gain substantial business without falling victim to the forces of extortion and corruption. INFOSYS MODEL OF ENTREPRENEURIAL LEADERSHIP IN SOUTHERN ASIA Infosys, founded under the leadership of N.R. Narayana Murthy in 1981, has been consistently rated as Asias most admired company, the best employer, and the best in corporate governance and business ethics, and is the worlds second most valuable IT services company, after Accenture. Over the past 10 years (19932003), its turnover has grown about 200 times, from Rs 150 million ($5 million) to nearly Rs 30 billion ($600 million), and has continued to grow rapidly even after the meltdown of the new economy over the past few years. The principles of Karma (action), Dharma (morality), Gyana (knowledge), and Dana (gift) are at the core of the Infosys model of entrepreneurial leadership that has facilitated its rise to the top. Below we illustrate our proposition, drawing upon the factual information and interview data presented by Alam Srinivas in his two Outlook India reports (2003a; 2003b). Karma: Infosys puts a strong emphasis on old-fashioned performance evalua- tion to guide and focus-actions. It has been focused on becoming the master of the opportunity offered by the meltdown of the new economy, rather than falling a victim of the crisis situation. According to its CEO, Nandan Nilekani, During the boom times, our focus was on scalability, how to ramp up opera- tions in view of an ever-growing business. Suddenly, we had to change our mental model. We had to deal with competition, streamline cost structures and look at efficiencies. Earlier, Infosys pioneered in India the concept of making work a fun and leisure placeconstructing gymnasiums, swimming pool, sauna, jacuzzi, jogging track, and tennis and basket ball courts in the office complex, and offering flexible work hours to its employees. But with the meltdown, it quickly refocused on an alternative mental model. The employees were requested to use leisure facilities only during the after-hours, and to work during the regu- lar hours. Dharma: Infosys takes pride in its motto of being a company by the people, for the people and of the people. It has steadfastly rejected bribes and layoffs, and was the pioneer in India to introduce stock options for all its employees, thereby distributing the wealth generated through their efforts among them. Since the meltdown of the new economy, several thousand of its engineers were rendered surplus, but it reskilled and reutilized them. Its CEO Nandan Nilekani recently observed, We have invested in extremely talented people. They were our assets and we had to keep these folks. Infoscion, as the Infosys employees [...]... should engage in such practices We refer to these responses as ‘as is’ and ‘should be’ responses That is, the ‘as is’ responses described practices as they are and the ‘should be’ responses described what the respondents believed should be the appropriate level of each of the practices with respect to each of the dimensions Two sets of 488 TRANSFORMATIVE ORGANIZATIONS questionnaires were used in each... language Empowering entrepreneurial leadership to discover the value of these unique approaches would be the real key to perpetuate transformative CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 481 organization throughout India Similarly, it is imperative for the organizations worldwide to leverage and develop their own cultural endowments, and to perpetuate and exchange techniques and technologies... states of India as separate samples Whereas Phase II was concerned with search for CLTs, cultural practices (as is responses to questionnaires and unobtrusive measures) and values (should be responses to questionnaires), and their antecedents, Phase III will concern: 494 TRANSFORMATIVE ORGANIZATIONS (a) tests of structural contingency theory hypotheses, (b) analyses of relationships of the GLOBE societal... respondents to answer questions relevant to their organizations These two sets of questionnaires were administered to different subsamples of managers in each organization in order to prevent common method bias when relating the responses of the first set to the second set S TRUCTURAL C ONTINGENCY T HEORY The central proposition of this theory is that as organizations grow they must respond to organizational... organizational contingencies impose demands on organizations that are so strong that it is imperative for all organizations to respond in essentially the same way to them in order to perform effectively and survive in competitive environments While this is a popular theoretical perspective, its empirical verification is mostly limited to small sample studies of organizations in industrialized countries... and Maher, 1991; House, Wright, and Aditya, 1997) AN OVERVIEW OF THE GLOBE RESEARCH PROGRAM 489 Fig 27.1: Theoretical Model 490 TRANSFORMATIVE ORGANIZATIONS 3 Organizational culture and practices also affect what leaders do Over time, founders and subsequent leaders in organizations respond to the organizational culture and alter their behaviors and leader styles (e.g., Schein, 1992; Trice and Beyer,... assessing questionnaire responses AN OVERVIEW OF THE GLOBE RESEARCH PROGRAM 485 from 17,000 middle managers in the three industries described above, with respect to the values they endorse and reports of practices of entities in their societies The value questionnaire responses concern respondents’ reports of their values with respect to nine cultural attributes The entity questionnaire responses concern... effects of organization size, technological uncertainty, environmental uncertainty, and environmental hostility on organizational form In addition, we will test the 496 TRANSFORMATIVE ORGANIZATIONS hypothesis that the effectiveness of organizations will be a function of the fit between organizational form and strategy and the above organizational contingencies Finally, we will test the hypothesis that... organizational forms and strategies will be either impediments to, or enhancement of, organizational responses to strategic organizational contingencies For example, it is hypothesized that organizations in high uncertainty avoiding cultures will be resistant to formalization of organizational forms and strategies, and organizations in low uncertainty avoiding cultures will more readily adopt more formalization... and leader behavior Phase III research will also enhance existing knowledge of culture-specific leader behaviors, culturespecific manifestations of leadership, and culture specific responses to leaders 500 TRANSFORMATIVE ORGANIZATIONS POTENTIAL BENEFICIAL SOCIAL AND ECONOMIC APPLICATIONS The GLOBE research program is expected to lead to increased communication between members of cultures who would . corruption. Thus, we conclude that the proposed transformative 474 TRANSFORMATIVE ORGANIZATIONS potential index does measure the potential of the organizations in a society to realize sustainable. the real key to perpetuate transformative CONCLUDING COMMENTS ON TRANSFORMATIVE ORGANIZATIONS 481 organization throughout India. Similarly, it is imperative for the organizations worldwide to. in such practices. We refer to these responses as as is and should be responses. That is, the as is responses described practices as they are and the should be responses described what the respondents