Eva

Reader Response to [“How Great Companies Think Differently” by Rosabeth Moss Kanter]

2.  Six Facets of Institution Logic

2.1 a Common Purpose

 “The name can change, but the identity and purpose will live on. ”

 

1>Great companies create culture based on a common purpose to provide coherence amid diversity, providing an identity for the  employees.

 

 

2.2  a Long-term View

“Great companies identify something larger than transactions to provide purpose and meaning.”

1> Unlike common companies, great companies have courage to sacrifice short-term financial opportunities which are incompatible with institutional values. 

2> The long-term view fully reflects that the controlling function of managers for that managers can intervene when goals are not met.

 

 

2.3 Emotional Engagement 

 

“Strong Institutional values can evoke positive emotions, stimulate intrinsic motivation, and propel self- or peer regulation.”

 

1> Great companies are aware of taking care of emotions of  employees by well-understanding them, increasing employee engagement.

2> The companies purpose, values and  principles can giving meaning to the company’s brands, evoking strong emotions in employee.

3> Emotional engagement also reflects that the leading and developing function of managers for that managers motivate and  influence their subordinates.

 

 

2.4 Partnering with the Public (Community Building)

 

 

“Great companies know that employees are both internal actors and the company’s representatives in the external community.”

 

1> When great companies allocate resources to community projects without seeking immediate returns, they win social trust and good fame.

2> It give expression to managers’ interpersonal role for acting as a liaison between interior and exterior.

 

 

2.5 Innovation

 

“Articulating a purpose broader than making money can guide strategies and actions, open new sources for innovation, and help people express corporate and personal values in their everyday work.”

 

1> When serving for society, they also consider unmet societal needs, which produce innovations.

2> Interactions with society, great companies express corporate values and produce valuable learning,creating opportunities for more people.

3> This emphasize on constant creativity and importance of teamwork of managers .

 

 

2.6 Self-organization

 

“Trusting people to make choices about where, when, and with whom they should work makes jobs more engaging.”

 

1> Instead of taking employees as robots who only follow rules and structures, great companies assume that they can trust people and rely on relationships.

2> Networks created by self-organization should be encouraged, which can stimulate beneficial reformation.