How Organizational Models Focus on People and Promote Wellbeing

Back in the late 60s, the prevailing theory was known as Theory Y, which emphasized the importance of caring for employees. While the terminology has evolved, the core principles remain similar. Modern management practices are based on the belief that when you genuinely care about your employees, they will reciprocate by performing better and staying longer with the organization.

Two contemporary theories that focus more on the people are Servant Leadership and Authentic Leadership. However, it's often more practical to focus on organizational models that encompass a broader array of philosophies and practices.

Organizational Models: A Comprehensive View

In his book, Reinventing Organizations, Frederic Laloux introduced a color-coding system to represent different organizational models throughout history. Each model reflects a unique mindset and approach to management.

Recent and Prevalent Models

Amber Confirmist - This model values a common world view and following the rules. The military is often cited as a typical example. Orange Achievement - This is the most prevalent model in today's organizations and society. It emphasizes performance, achievement, and individual success. Green Pluralist/Familial - These organizations place a high value on the well-being of their people and the environment. Creativity and contributions are encouraged, as seen in firms like Southwest Airlines. Teal Wholeness - This model, highlighted in Reinventing Organizations, focuses on promoting the overall well-being of employees and their contributions to society. Several organizations have adopted this approach, often outperforming their industries.

Servant Leadership: Focusing on the Greater Good

Servant Leadership is a popular approach that emphasizes putting the needs of others first. In this model, leaders focus on serving their employees and helping them grow. Key traits of servant leaders include:

a strong sense of empathy putting the needs of employees and the organization above personal gain a commitment to building a supportive and inclusive environment

By prioritizing the well-being and growth of their team members, servant leaders help create a positive work culture that fosters enthusiasm, loyalty, and high performance.

Authentic Leadership: Being True to Oneself and Others

Authentic Leadership focuses on leaders being genuine and transparent in their interactions. Key features include:

genuineness and transparency open communication and feedback inspiring trust and respect

By aligning their actions with their values, authentic leaders build trust and create a culture where employees feel valued and heard. This approach promotes innovation, loyalty, and overall job satisfaction.

Southwest Airlines: A Model of Green Leadership

Southwest Airlines is often cited as a successful example of a Green Pluralist organization. This company emphasizes the well-being of its employees and the environment. Some of the strategies they use to achieve this include:

Creating a positive work environment that fosters creativity and innovation Implementing flexibility in work schedules and remote work options Encouraging employee engagement and offering professional development opportunities

These strategies have not only improved employee satisfaction but have also led to better business outcomes, making Southwest Airlines a standout in the industry.

As we look into the future, there's a growing trend towards more holistic and well-being-focused organizational models. The shift towards the Teal Wholeness model is particularly significant, as it emphasizes the well-being of employees and their contributions to society beyond just work. By adopting these models, organizations can create a more positive and productive work culture that benefits everyone.