When a Good Organisational Culture isn't Enough
BBC online Oct. 1, 2019

When a Good Organisational Culture isn't Enough

Ex-Thomas Cook staff across England are working for free to help holidaymakers to salvage their trips. Employees who lost their jobs when the travel firm collapsed have set up pop-up shops to help customers fill in claim forms or rebook holidays.

It is pretty amazing, this level of irrational (i.e., not self-serving) dedication that TC employees display in a time when they face crisis themselves. This clearly points out to a very strong Organisational Culture anchored in customer-care and Organisational Citizenship Behaviour (see brief explanation of OCB below).

"Former branch manager Donna Jones said staff were working for free "out of our love for our customers."" In any customer-service driven organisation, this type of dedication would be valuable as much as customers are. That these type of quiet-heroic behaviours were displayed by Thomas Cook rank-and-file employees speaks volumes to the success of the company to build a strong and effective organisational culture. Such culture, especially in a large organisation, is built over time and it is likely that is an outcome of decades of leadership. Organisational Culture is the predominant internal factor that affects how well an organisation

The tragic element of the story is that in the case of Thomas Cook, a strong culture and dedicated employees were not enough to save the company. This corroborates my analysis of the causes of failure and confirms that the major causes of company's failure were to be found in the top leadership who failed to effectively attend to external factors (a strategy that responds to changes in customers' behaviours and global economic and socio-political forces). Any company that hires Thomas Cook employees is making a good bet on acquiring high quality human resources.

Organisational Citizenship Behaviour refers to actions taken by employees that, while beneficial and may be even crucial for the effectiveness and success of a company, are not required by employees' official job description and go beyond their work role. There is a wide range of OCBs; for example, helping new team members integrate better, helping colleagues with their tasks, and speaking favourably about the organisation to outsiders. Studies identified nearly 30 types of OCB and management scholars classified them into seven categories: helping behaviours, sportsmanship, organizational loyalty, organizational compliance, individual initiative, civic virtue, and self development. In spite of the fact that the OCB has been studied since the early 1980s, many managers and leaders are not aware of it, don't realise how much it contributes to company's success and, crucially, do not know how to encourage OCB among their employees.

Quotes are from: https://www.bbc.com/news/uk-england-49878197

thanks for a thoughtful piece!?

Dr Payal Kumar

Principal Academic Advisor, ISH | Visiting faculty, XLRI | Global L&D Advisor, MaximizeU | Award-winning author |

5 年

I agree with you Jacob. Such exemplary customer-centric behaviour was also to be seen in the 2018 terrorist attack on The Taj hotel, Mumbai, India, where staff put their clients' well-being above their own, some even laying down their lives in the process. True examples of service above self.

Niall Fitzgerald

FCA I Head of Ethics and Governance I Sustainability Leader I Non-Executive I Rugby and Hiking Enthusiast

5 年

A very sound opinion Jacob Eisenberg?- I agree, it does take strong leadership to embed a healthy organisational culture. This involves not only remaining faithful to the organisations values but enabling people to bring their values that compliment this to the fore. I think we should acknowledge that the selfless dedication, outlined in the article, from these TC employees speaks volumes for their personal ethics and their inherent values that motivate them to do good. Any organisation should be proud to have them. As for leaderships failure to respond to external factors, there is much more to this and I have no doubt more will be revealed in the post mortem. However, your article does accentuate the importance of innovative and strategic thinking as part of the governance process and long term success. Such a pity to see a 178 year old company such as Thomas Cook?go out like this.?

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