18Jun

CEO and line manager behaviours shape organizational performance and organizational identity

CEO and line manager behaviours shape organizational performance and organizational identity

Research findings from the Institute of Leadership and HR Management from the Univeristy of St Gallen reinforce what we have known for many years now, and that is that CEOs play a significant role in influencing lower-level leaders, organizational identity, and organizational performance. They act as role models for the firm's management and determine which leadership behaviours will be rewarded or punished, thus having an important influence on the company's transformational leadership climate. In addition, CEOs are an important source of organizational identity strength. CEOs communicate the company's values internally and externally. Consequently, they have the opportunity to shape the perception of the company. CEOs should take advantage of this unique opportunity. They should be clear regarding how they want the company to develop eg.,vision, and should transmit the feeling that they are part of the company and that all company members are part of the same team. Importantly, these are behaviours that every leader can exhibit. Thus, even though certain individuals might seem more charismatic than others, all top managers can adopt important behaviours to influence both the leadership climate and organizational identity.

Line managers are also important for shaping the organizational identity and subsequently performance, which they can do by adopting a transformational leadership style. Many of line managers' expected behaviours match charismatic CEO behaviours, for example, creating a vision for their team that is in line with the company vision and values, creating a joint team spirit, and leading by example. All these behaviours enhance the organization's organizational identity. In addition, HR processes can be adapted to foster a transformational leadership climate as well. The selection of new managers and criteria for promoting existing leadership personnel should include behavioural aspects, which are in line with the company values. The same is true for firm-wide leadership trainings, which should target the demonstration of transformational leadership behaviours including charisma. Finally, organizations can try to influence the company organizational identity directly. In order to develop pride in the organizational goals and values, employees need to be aware of them. Therefore, internal marketing activities via the intranet, company newsletters, and firm events should deliver appropriate messages. By answering and communicating such information thoroughly, companies can create a pronounced organizational identity.

Leave a comment

Please login to leave a comment.