Partnership Culture is Best for Success


Partnership CultureCertain workplace culture characteristics consistently bring about higher financial performance. That was the finding of one researcher. The researcher, organizational psychologist Dr. Richard Petronio, surveyed 200,000 employees of 50 employers in a cross-section of industries — high tech, health care, insurance, transportation, manufacturing, finance, services and retail.

The study identified the workplace culture characteristics that correlate with financial success. The study categorized five major types of employer-employee cultures: Entrepreneurial (“leader-follower”), Paternal (“parent-child”), Mechanical (“machine-part”), Exploitative (“master-slave”), and Partnership (“partner-partner”).

Although many companies aspire to an entrepreneurial style, the study found it’s the partnership style employers that outperform.

There were certain employers who consistently outperformed others financially — even in worse economic times. The study investigated whether there were factors in the employers’ cultures that brought about the success or whether success brought about a certain culture.

The Petronio study found that the highest-performing employers had the following culture characteristics:

  • Strong system of employee rights.
  • Empowered, responsible employees.
  • Equal application of personnel policies across the organization.
  • Shared rewards when the company is profitable.
  • Extremely open cultures.
  • Management perceived as fair, credible, trustworthy and sincerely concerned about employees.
  • High sense of employee identity with the employer and its products or services.
  • Valued tenure of employees.
  • Good teamwork.
  • Employees treated with high respect and fairness.

The study found about a 0.65 correlation between the presence of these characteristics and business performance. (A perfect correlation would be 1.0.) As the presence of these characteristics increased, there was a significant increase in profitability.

These characteristics were common in the partner-style cultures, but lacking in the others. “It’s clear that certain things in the workplace culture lead to higher profits, and other things don’t have an effect,” Petronio concluded. “We hardly ever found a correlation between pay and benefits and job satisfaction,” noted Petronio. On the other hand, management’s credibility is almost always predictive of high business performance.

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