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Draining of emotional energies in coping with abuse by bosses Loss of motivation because of rude remarks by bosses Unnecessary turf fights and power struggles Unnecessary mistakes and duplications because of refusal to share information THE POSITIVE PSYCHOLOGY OF THE TRANSFORMATIVE ORGANIZATION l l l l 353 Unnecessary mistakes because of refusal to consult Loss of valuable human resources because of oppressive,... describe the process of cultural transformation—for that is the foundation of any transformative organization We then discuss how to develop a transformative culture The Process of Cultural Transformation A diverse domain of management and leadership skills can be brought to bear on cultural transformation These skills include: (a) assessment and diagnosis of present corporate culture, (b) strategic planning... identify both toxic and healthy corporate cultures and explicate the process of cultural THE POSITIVE PSYCHOLOGY OF THE TRANSFORMATIVE ORGANIZATION 343 transformation through an analysis of both surface and deep structures in the work climate We highlight the importance of enhancing SES capital on a sustained basis We will also discuss the implications of transformative culture for management Corporate... states, a culture emerged of self-dealing and self-enrichment at the expense of shareholders Accountants and lawyers signed off on flawed and improper decisions every step of the way.’ In essence, social/emotional/spiritual (SES) dimension of corporate culture has played a key role in Enron’s collapse The executives created a culture of greed, corruption and deceit, but their house of cards could not survive... study helped explain the occurrence of international franchising in firms within the same industry The results of the model in this study were largely consistent with expectations The sign of all the coefficients, except for the age variable, confirmed the hypotheses, and four out of the five independent variables were significant The amount of resources and the ability of franchising firms to monitor... should possess the attributes of all four types of healthy corporate cultures One of the key competencies in management is to create and maintain a healthy corporate culture Cultural Transformation and Transformative Culture Culture is not just a state, but also the vehicle for corporate transformation Toxic cultures can kill a company loaded with money and talent Positive cultures can make a less endowed... productive, four cores areas are important: (a) financial capital in terms of investments and profits, (b) technological capital in terms of cutting-edge software and hardware, (c) human capital in terms of knowledge, expertise, and creativity, and (d ) social/emotional/spiritual capital in terms of relationship, morale, meaning and purpose Of these, the fourth area is the most difficult to manage and most... consulting fees Under mounting pressure, Enron’s eventual disclosure of its overstatement of profits in November 2001 immediately triggered the collapse of the company and its bankruptcy filing on December 2, 2001 A special panel of Enron’s Board has recently issued a 217-page report condemning Enron’s management for inflated profits and the failure of control at every level According to Eichenwald (2002), ‘As... work climate High absenteeism because of low morale and a stressful work climate Wastage of creative talents and ideas because of autocratic, authoritarian leadership Many companies fail because of an accumulation of the above wasteful activities Ignoring the culture-climate competency attributes not only to loss in productivity and profits, but also to the human toll of suffering and attrition problems... exploring the nature and power of collective thinking and how it shapes the culture of a group When we learned that one of the dialogue’s primary purposes is to affect a transformation in collective consciousness, we recognized its potential in the area of organizational change.’ There are four building blocks in the ‘technology’ of dialogue (Gerard and Teurfs, 2002): 1 Suspension of judgment: We are prepared . = 367 X1 X2 X3 X4 X5 X6 X7 X8 X9 min 0 1 0 .88 0 0 0 0 0 1 max 6,705 119 22 1 1 1 7 975.5 69 mean 184 .04 17 .80 0.59 0.26 0.62 0. 28 3.44 1 38. 31 9.46 sd 4 38. 64 19. 08 1.94 0.09 0.49 0.44 2.37 142.95. and hypothesized relationships. Table 18. 1: Measurement of the Variables and Hypotheses Hypotheses Variable Measured As Relationship H1 Size Total number Positive of units H2 Age Number of years. structure of a small firm and the econo- mies of scale of a multinational company (Feketekuty, 1 988 ). This chapter builds on the previous studies on the organizational deter- minants of international