Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Impression of Spirituality on Organizational Effectiveness Harris Saseendran Instructor, Business Department, Bahrain Training Institute (Ministry of Education), P. O. Box 33090, Isa Town, Kingdom of Bahrain. Mob: +973 36305218; Email: teacherharris12@gmail.com Page | 1 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Impression of Spirituality on Organizational Effectiveness Abstract: Spirituality is the latest buzz word in the field of human resource management. It is seen as the single answer to deal with all kinds of employee-related problems including work stress, inability to be a team player and lack of motivation. The paper reviews literature related to spirituality and its impact on organizational effectiveness as a result of improved employee performance. The paper reviews papers on workplace spirituality to analyze their findings on the effect of spirituality on organizational performance. Three different perspectives are discussed on how spirituality benefits employees and supports organizational effectiveness: Spirituality enhances employee well-being; provides employees a sense of purpose and meaning at work; spirituality also provides employees a feeling of bonding and being part of a community. A conceptual framework about the various propositions that work towards sculpting a spiritual organization is discussed. The paper gives potential benefits of bringing spirituality into the workplace; providing suggestions for practitioners to incorporate spirituality positively in organizations. Key words: Spirituality at work, performance, effectiveness, organizations, human resources, review Introduction The purpose of this paper is to review literature about spirituality in the workplace and to explore the effect of spirituality to improve employee performance thereby leading to better organizational effectiveness. The paper reviews about 55 papers/ articles on workplace spirituality to study their findings on how spirituality supports performance of organizations. Based on the findings, three different standpoints are introduced on how spirituality benefits employees and supports organizational performance. Page | 2 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Research shows that there is a paradigm shift in dynamics of organizations, the way they function and as a result the changes in management theory and practices in the last decade (Capra, 1996; Harman and Hormann, 1990). Below is a summary of organizational changes that reflect a paradigm shift to more spiritual forms: - from a predictable outlook to chaos (Gleick, 1987) - from fear-based command and control approach to trust and empowerment (Conger and Kanungo, 1988) - from simplicity to complexity (Lewin, 1992) - from transactional leadership to transformational leadership (House and Shamir, 1993) - from self-centeredness to interconnectedness (Capra, 1993) - from self-interest to service (Block, 1993) - from materialistic to a spiritual orientation (Fox, 1994) - from closed systems to complex adaptive systems (Dooley, 1997). These changes in management include a shift from a totally economic focus to a balance of profits for the management, quality of life for customers and employees, spirituality within the workplace, and social responsibility towards consumers and citizens (Walsh, Weber, and Margolis, 2003). According to Ashmos and Duchon (2000), these emerging changes in organizations have also been called as “the spirituality movement” where organizations make room for the spiritual dimension, which has to do with meaning, purpose, and a sense of community. Scholars over the last few years have reported a steady increase of interest in organizational spirituality issues among management researchers and business managers (Cavanagh, 1999; Ashmos and Duchon, 2000). According to Howard (2002), the explosion of interest in spirituality as a new dimension of management is one of the most significant trends in management over the last five decades. The growing interest in spirituality is evident in a growing numbers of organizations, including MNCs such as Intel, Coca-Cola, Boeing, among others (Burack, 1999; Gogoi, 2005). Some spiritual practices merge with religious beliefs where companies have Bible, Quran, or Torah study groups; forming voluntary prayer groups; forming interfaith dialog groups; having “higher power lunches” and offering meditation exercises. Page | 3 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Although the literature and interest on spirituality at work is growing rapidly; there is confusion around how spirituality influences organizational performance. This paper seeks to contribute to the research of literature on spirituality at work in order to explore how spirituality is related to organizational effectiveness. Definitions of spirituality at work The term “spirituality” comes from the Latin word “spiritus” or “spiritualis” that means breathing, breath, air or wind (Merriam-Webster). This implies spirit is the life force that inhabits us (Garcia-Zamor, 2003). According to Mitroff and Denton (1999a), it is “the basic feeling of being connected with one’s complete self, others and the entire universe” (p.83). Spirituality has been defined as “the unique inner search for the fullest personal development through participation into transcendent mystery” (Delbecq, 1999, p.345). In simpler terms, spirituality is defined as our inner consciousness (Guillory, 2000), a specific form of work feeling that energizes action (Dehler and Welsh, 1994), “a process of self-enlightenment” (Barnett, Krell, and Sendry, 1999, p. 563), “a worldview plus a path” (Cavanagh et. al., 2001, p. 6), “access to the sacred force that impels life” (Nash and McLennan, 2001, p. 17). In this paper ‘work-spirituality’ is defined as the organization’s search to find and inculcate in employees a sustainable, meaningful and sacred understanding of the self and his/her relationships with others. Unlike religion it does not adhere to the beliefs, rituals, or practices of a specific organized religious body or tradition. Spirituality and organizational effectiveness Whether incorporating spirituality practices in organizations will result in an increase in productivity is a controversial issue. Some researchers view spirituality as anti-materialist (Dent et. al, 2005). On the other hand, some scholars argue that spirituality can be used to improve organizational performance (Ashmos and Duchon, 2000; Garcia-Zamor, 2003). In the last decade, many research projects have reported positive relationships between spirituality at work Page | 4 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain and organizational effectiveness and performance (Bierly, Kessler, and Christensen, 2000; Delbecq, 1999; Mitroff and Denton, 1999b). Yet research conducted on the impact of spirituality on organizational performance has not been consolidated and reviewed in depth. This paper seeks to apply spirituality in human resource management so as to change the workplace for the better. According to Karakas, F. (2010), the three perspectives of spirituality that can positively impact organizational performances are: i. HR perspective: Spirituality enhances employee well-being and quality of life ii. Interpersonal perspective: Spirituality provides employees a feeling of interconnectedness iii. Philosophical perspective: Spirituality provides employees a sense of purpose Source: Karakas, F. (2010) Perspective 1: Quality of Life By approaching from a Human Resources perspective, spirituality can improve employee well-being and quality of life by increasing their morale, commitment, and productivity. Spirituality also decreases employees’ stress and burnout in the workplace, both of which are high in today’s offices. Thus this perspective is particularly important in today’s workplaces where employees spend most of their lives, develop friendships, create value, and make their most meaningful contributions to. Page | 5 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain With increasing complexity of work, associated problems too have crept in. Stress caused by long hours at work can result in higher absenteeism, lower productivity, and increased health issues including chronic illnesses, pain, fatigue, fear, and guilt (Killinger, 2006). Research suggests that the development and expression of the spirit at work may indeed solve these problems of stress and burnout, as well as have beneficial consequences for the well-being of employees. A growing number of managers and employees have resorted to meditation and spiritual practices as a method of coping with stress and uncertainty at work (Dehler and Welsh, 1994; Cartwright and Cooper 1997). Bento (1994) reviewed research proposing that spiritually empowered employees are found to be more honest, courageous, and compassionate individuals and they can represent these characteristics on their job. Krishnakumar and Neck (2002) suggested that the encouragement of spirituality in the workplace can lead to benefits in the areas of creativity, honesty, personal fulfillment, and commitment, which will ultimately lead to increased organizational performance. Some forms of encouragement of spirituality in the workplace include organizing optional morning prayers or yoga sessions; designing multi-faith prayer spaces; or introducing spiritual wellness programs for employees (Krishnakumar and Neck, 2002; Mitroff and Denton, 1999). Perspective 2: Sense of interconnectedness This approach is from an interpersonal perspective, connected to the concepts of belonging, community, and connectedness. It is centered on relationships and social dynamics of spirituality. It argues that incorporating spirituality at work provides employees a sense of community and connectedness, increasing their attachment, loyalty and belongingness to the organization. Providing employees a sense of community and connectedness is critical in today’s workplaces. In times of uncertainty; employees and managers face significant challenges and Page | 6 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain traumatic experiences in their lives; such as death, divorce, illnesses, and layoffs which force them to reach out to their communities for support, guidance, and help. Trust is crucial in forming a sound basis for commitment (Kriger and Hanson, 1999). Spirituality increases commitment by establishing a climate of trust in the workplace (Burack, 1999). Concerns about ethical violations over the years, including the recent world recession that originated from shady American banking practices and infamous cases in India such as Satyam and Union Carbide have had a negative effect on people, eliminating trust and a sense of community. Gull and Doh (2004) argues that corporate scandals have resulted from self-centered greed, egoism, and selfish passion instead of caring for others. This perspective stresses that organizations are not just centers for making profits by providing goods and services but also human communities that foster satisfying and meaningful life experiences for individuals, families, and society as a whole (Gull and Doh, 2004). For example, according to a study conducted by Ashar and Lane-Maher (2004), mid- and senior level executives did not describe success in materialistic terms (such as money or promotion), but instead used terms such as being connected, balance, and wholeness to define success. Consequences of spiritual relationships include intimacy, authenticity and integrity (Kendall, 1994; Burack, 1999; Stiles, 1994). There is considerable amount of research linking spirituality to consideration towards others at work (Milliman, Czaplewski, and Ferguson, 2003; Burack, 1999). Perspective 3: Sense of meaning and purpose This approach brings spirituality from a philosophical perspective connected to the concepts such as search for meaning and purpose in what employees are doing at the workplace. Providing a deeper sense of purpose for employees enables them to perform better and be more productive and creative at work. Unfortunately workplaces have increasingly become emotionally and spiritually devoid of deeper meaning and spirit. When success is measured in financial terms such as sales, cash flow and market share; the interpersonal and spiritual goals have taken a back seat in today’s corporations (Walsh, Weber and Margolis, 2003; Hertz, 2002; Page | 7 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Gull and Doh, 2004). The assumption that material wealth equals success is starting to be questioned as people desire more meaning and quality of life at work (Cash and Gray, 2000; Gull and Doh, 2004). A large number of employees today feel psychologically isolated at work (Cavanagh, 1999; Harman, 1992; Bolman and Deal, 1995); as well as a lack of meaning in their work lives (Cavanagh, 1999, Dehler and Welsh, 1994). Oldenburg and Bandsuch (1997) explain that there’s a longing in people's souls for deeper meaning, connection and greater simplicity. Companies expect employees to separate work, life, family, and spirit into compartments which result in people feeling unfulfilled, stressed and alienated (Cavanagh, 1999). The following three existential questions that are part of a series introduced by Kouzes and Posner (2003), which employees reflect and ask themselves, denote this search of purpose for employees (p. 69-70):    What do I want for my life? What do I really care about?” Is there a reason for my existence and the organization's? What is the meaning of the work I am doing? Where does this lead me to? (p. 69-70) To implement the above perspectives in human resource management, the below propositions (P1, P2, P3 and P4) need to be taken into consideration. Page | 8 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Figure 2: A conceptual framework showing the expanded version of the Douchon and Plowman (2005) model Proposition 1. The inner life of every individual affects the whole organization A spiritual organization recognizes that employees have an inner life that nourishes and is nourished by all other zones related to self and connecting with others, including meaningful work all of which takes place in the context of community”. In the workplace this community includes co-workers, subordinates, and bosses. These individuals may not have similar ideologies or life-styles, but in a spiritual environment, they all recognize and embraces diversity, valuing each employee as a person. In such a workplace, the spiritual elements of each individual is considered a foundation to the dynamics of organizational effectiveness. Proposition 2. The community of the work environment is one of many Page | 9 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain In the model, the ‘Self’ is represented by the inner life circle which through interconnections of the double-ended arrows is related to complex composite interrelationships between almost our past and present experiences, in all zones. These arrows illustrate that the size and shape of our zones varies from person to person. The work-environment is affected by all these interconnecting factors. Proposition 3. The degree of influence of the various zones varies within each employee An employee may have a large influence from extended family, ethnic heritage, or their personal relationships. Another person may be influenced most by their personal beliefs; derived from their temple/ mosque/ church. An employee’s work, and the organization itself, may replace any need of another community while another person may be very dependent on his/her own circle. Hobbies and interests, goals and aspirations, personal histories can all be interactive slices of the holistic person. Experiences, relationships, tragedies, successes, age, gender, interests, vocation, habits, addictions all nourish and are nourished by our inner life. Proposition 4. Certain expressions of who the employee is may not be fully welcome It is quite likely that persons derive the same virtues from very different sources. The virtue (for example truthfulness), therefore remains just as acceptable in the relatively secular environment of the workplace as in a religious setting. The source, for example the Bible or Quran may not be as welcome in the organization. Managers want their employees to display ethical conduct without going deep into religious teachings. Certain requirements of religions, such as propaganda or spreading the word, are strictly forbidden on company time and company property. Thus a spiritual workplace is one that treats employees holistically, recognizing the multi-faceted aspect of the human spirit. Suggestions It is critical to proceed carefully in incorporating spirituality at work, so as to avoid being counterproductive and alienating some people. The following suggestions can address the potential dangers of bringing in spirituality into the workplace: Page | 10 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain Accommodation of spiritual requests: Although organizations may not have any spiritual orientation, still managers can try to accommodate and encourage the spiritual requests of some employees, as long as they do not limit the freedoms of others (Cavanagh, 1999). Respect for diversity: Since spirituality is a highly individualistic experience, it is important that spiritual practices be customized in each organization based on the principle of respecting and valuing each employee’s unique perspective, diversity of beliefs and thoughts by enforcing codes of conduct as well as instilling values of tolerance and compassion (Milliman, Czaplewski, and Ferguson, 2003; Kouzes and Posner, 1995). Openness and freedom of expression: Spirituality policies should put openness and respect for diversity at the center of organizational focus. Employees should be able openly express their inner feelings and spirituality, without fear of alienation or exclusion from the team (Milliman, Czaplewski, and Ferguson, 2003). The goal of a spiritual environment should be to ensure expressions of intuition, creativity, honesty, authenticity, trust, and personal fulfillment (Krishnakumar and Neck, 2002). Acknowledgement of employees as whole persons: It is important to acknowledge and know a person’s emotional, intellectual, and spiritual needs, values, priorities and preferences. Leigh (1997) states that workplace spirituality starts with the acknowledgement that employees do not bring only their bodies and minds to work; but also their hearts, souls, creativity, talents and unique spirits. Conclusion Maslow’s hierarchy of needs suggested that ‘self-actualization’ is the last of all human needs. But at a time in which organizations are faced with more complexities, global competition, and change than at any other time in history, the need for self-actualization and spirituality is a direct solution for many of the challenges faced by businesses (Karakas, 2006). Page | 11 Impression of Spirituality on Organizational Effectiveness – Research Paper for the 1 BTI st 26/05/16 Annual Research Symposium 2016 organized by Bahrain Training Institute, Kingdom of Bahrain With her ancient cultural heritage, India has always been considered as the centre of spirituality. In the 21st century, organizations in the country need to re-incorporate humanistic and spiritual values into workplaces to enable human hearts, spirits and souls to grow and flourish. Employees and managers need to reflect on the ways of incorporating spirituality, wisdom, inspiration, creativity, and compassion into work. Human resource managers need to develop ways and means to motivate employees in reaching their true potential by providing a work-life balance that brings long-term happiness. It is hoped that this literature review can contribute to the introduction of spirituality at work and provide insights on the application of spirituality in work settings. 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