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Thursday, March 7, 2024

Integrity in the Organization and Its Effect on Job satisfaction

 Damianus Abun

Introduction

The performance of the organization/business or school does not only depend on how much capital (money) you invest in the school/company. It does not depend only on the managerial skills of the administrators/managers but it also depends on many aspects of organization life. Therefore, paying attention to the details of organisational life is necessary, not only on physical matters or tangible things but the things that we cannot see such as the values of leaders/managers or administrators and employees. Values may be insignificant in the eyes, but if they are not given serious attention, they can be a big hindrance to the development of the organization.

People often focus on big things or big issues such as efficiency, transparency, managerial skills, strategic planning, and leadership skills together with their technical skills in carrying out their duties and responsibilities but one aspect that people often undermine is the values, particularly the moral values of those who lead, those who are on the top of the organization. The motivation of employees to work is not just caused by money but it is also caused by other factors such as employee’s treatment and organizational climate as a whole (McShane, 2000). Moral values that are being practised by the organization are considered as one of the sources of motivation.

One of the moral values that are often undermined is integrity. Such value may be considered insignificant to some and therefore it is often ignored, if not forgotten and taken for granted. However, though it may be insignificant, but the effect of ignoring it can have a tremendous impact on the organization. The administrators/managers often commit mistakes by focusing on the big picture such as vision; mission, and objectives but small factors that contribute to the achievement are neglected. The foundation of management should be solidly founded on integrity. 

The value of integrity is often written in the handbook of the organization/business or schools as their core values. The value of integrity may seem to be small in our eyes but it has a tremendous power to bring down or up the organization. We may mention several examples of successful companies that have applied integrity as one of their values namely Accenture and Barness & Noble Booksellers. These companies have been included in the Fortune 500 Company (http://fortune.com/video/2016/03/04/best-companies-to-work-for-hospitals/) because of their success stories and their success stories can never be achieved without practising the value of integrity. We also mention several companies that went into trouble such as ENRON and WorldCom. Their bad stories were caused by some wrong behavior which we may call “lack of integrity (Edmonds, 2001, Gison, 2008). Somehow based on the report, the managers and accountants committed fraud in their financial reporting that misled the public and investors.  Those are just examples of having no integrity in managing a business. It has been always the reason that bankruptcies are caused by criminal CEOs. The criminal CEOs are not following the rule of law and ethical practices (Howe 2011).  

Integrity Defined.

Originally the word “integrity” was used only for material objects which means wholeness or intactness. It is a condition in which an object is not damaged or corrupted. Such meaning later on is used for human persons. Integrity is used as a virtue; it refers to a quality of a person’s character. A person of integrity is then defined as a person who has not been damaged inside–out by wrongdoing or immoral act. Thomas More (1633as cited by Nillsen (2005) has used the word integrity which means wholeness which means moral soundness. Moral soundness refers to strong moral principles specifically uprightness, honesty and sincerity. To expand our concept of integrity, we are going to see different concepts of integrity offered by different philosophers.

Condit & Caudill (1999) defines integrity as consistency of actions, values, methods, measures, principles, expectations and outcomes. Integrity in their case refers to consistency, in the sense that there should be no alteration or flip-flopping. Such understanding then is associated with honesty and truthfulness or accuracy of one’s actions. Thus, it is now considered as a moral character. A person of integrity now means a person who has not been broken by immorality. Stemming from such understanding, integrity is connected to acting morally. In this case, there is a substantive aspect of what it is to act with integrity (Stanford Encyclopedia of Philosophy, 2011).  Substantive integrity is the wholeness or intactness of a person. What you see from the outside is a reflection of what is inside you. The inner moral values of the person and actions of the person are jibed, in coherence. Inside and outside of the person is the same. His/her action is a reflection of his/her inner values. Word and action are one, inside and outside are one. Such a view indicates that a good action is originated from a good intention, good heart, and good mind. One can read a person, and what kind of person he/she is, from the action. Integrity then is necessarily seen in action and it is through action we can evaluate if such a person is a person of integrity or not.   

In the development of the discussion of integrity, Cox, Case, and Levine (2017) as cited from Frankfurt (1987) classified integrity as the integration of self, integrity as maintenance of identity, integrity as standing for something, integrity as moral purpose and integrity as a virtue (Stanford Encyclopedia, 2013, 2017). Integrity as self-integration means keeping the self-intact and uncorrupted (wholeness/intactness). In this sense, integrity is a condition of unbrokenness.  According to them, a wholly integrated person is a person who acts without any conflicting desires or a person who constitutes themselves without ambivalence. In terms of integrity as maintenance of identity, integrity means a person’s holding steadfastly true to their commitment, (Frankfurt 1987).  A person of integrity in this sense is one who is committed to people, institutions, traditions, causes, ideals, principles, jobs/ duties and so on.  However, commitment in this case is not just any commitment because people can be committed to a certain act that is not good or even immoral. Bernard Williams (1973) argued that integrity in terms of commitment means a commitment to what is most deeply, and fundamental to one’s life. In that sense, to abandon integrity is to abandon what is fundamental to one’s life, to abandon what gave him/her identity or virtuous character. Therefore, integrity in this case is a virtue.  A virtue motivates a person to act in desirable ways or it enables a person to act in desirable ways.  A person of integrity is a person who can act in a way that reflects his sense of who he is/she is, who acts from her/his motives, his/her interests and commitments that are her/his own (Williams, 1981). The questions here are: what are those commitments, motives, and interests because commitments, motives and interests can be anything either is good or bad?  Cox, Caze and Levine (2003) answered that those commitments, motives and interests must be expressions of great moral values (Stanford Encyclopedia, 2017).

Deepening further the discussion of integrity, Colhoun (1995) tries to view integrity as a social virtue. As a social virtue, integrity is defined only by others, in the sense that integrity cannot be understood if it is not lived in the social context.  Such value exists and is understood because of one’s relation to others. In this case, the integrity of a person can only be understood and seen in his/her relations with others in the community. Colhoun (1995) pointed out that “integrity is not just a matter of a person’s proper regard for their own best judgment but a person of integrity stands for his/her best judgment within a community. A person of integrity treats their own endorsement as ones that matter or ought to matter to fellow deliberators”. In this case, a person of integrity is committed to what is best, not only for himself but also for the community. The person stands for what is good for the community and does not lie to his own statement/decision, conceal them, recant them under pressure, selling them out for rewards or change stand under pressure. He stands for what he/she believes to be best not only for him/herself but also for the community. Therefore, Halfon (1989) later argues that integrity has a moral purpose. It is not just for the sake of integrity itself but a person of integrity in this case is a person who is dedicated to pursuing a moral life by living up to their moral principles and commitment to others. He/she is pursuing a commitment to do what is best morally.

Integrity in Organization

The application of integrity is not just within the sphere of individual life but it is within the social context or social domain. Integrity is not just an individual value but a value that has to be lived in the community or in the organization where one relates himself/herself to others. Therefore, we want to see how integrity is being practised in the organization or in the school context. School is also an organization with its special character and purpose. Thus, when we talk about the organization in this paper, we refer it to as school. The integrity that we discuss in this study is integrity in the school context.

When we talk of organizational integrity, we cannot avoid of talking personal integrity because the organization is composed of individual persons and these may include administrators and employees. We cannot deny that the integrity of those who run the organization can affect the integrity and the image of the organization. Thus, administrators or managers must acknowledge their role in shaping organizational ethics and seize this opportunity to create a climate that can strengthen the relationships and reputations on which their companies’ success depends (Paine, 1994). In this case, integrity is indispensable, it is hard to ignore. In short, not living and practising integrity can lead to bankruptcy. Managers, in this case, are the first one to live such value in their decisions because if they do not, then they run the risk of personal and corporate liability. Such a view supports our belief that individual integrity matters to organizational integrity. What does it mean? When managers do not live moral lives, do not live by their moral example, they can affect the values of the employees. Do not expect employees to be moral when the managers are not. Along such a concept, Dugar (n.d) argued that “at the corporate level it takes individuals of integrity to develop a consensus around shared values. As this consensus builds, the corporation develops a culture of integrity. A culture of integrity creates a highly valued work environment; it impacts the quality of corporate governance; and it provides a foundation for solid long-term financial performance”. In other words, organizational integrity is derived from individual integrity. Verhezen (2008) confirmed such a link between organizational integrity and individual integrity as he argues that individual integrity reinforces organizational integrity. At this level, all employees of the organization adhere to moral principles despite pressure or personal temptations (Adler & Bird, 1988). Now integrity gains respect in concrete situations in relationships with others and within the community or organization.

Along with the stated idea above, integrity failure in an organization is originally caused by character flaws of the responsible individual. The responsible individuals are managers. Most of the time, they need to discern what is morally appropriate and what is not in their daily decisions. Most decisions are not based on good motives and good purpose, but are driven by self-interest and sadly their wrong values affect the rest of the organization which consequently destroys organizational integrity (Rodrigues, 2007). Thus, organizational integrity becomes a social virtue that emphasizes connectedness with a large purpose. A manager of high integrity must act according to moral principles and values that relate to other members of the organization (Becker, 1998). In other words, organizational integrity is a standard of personal moral excellence (Habermas, 1998) of all people working within the organization. Managers’ job is to see to it that all employees are guided by the moral principles, guided by the moral values adopted by the organization. There should be no possible internal conflict between personal values and organizational values.

It is therefore necessary to create an environment where employees are encouraged to live the value of integrity. The organization needs to express those values in a normative statement which can be included in the organization’s mission statements (Paine 2003). However, even though an organization has organizational values, it does not guarantee that all employees will act according to the stated organizational values. One needs an attitude of integrity that not only follows the letter of the rules but adheres to deeply held and internalized ethical values. In this case, leadership maintains organizational ethos about collective mission, identity and long-term objectives. The most challenging is when managers or administrators are confronted with competing and ambiguous demands. In such a situation, a person of integrity needs to make a decision about right versus right, inevitably leading to certain compromises that do not undermine integrity (Badaracco, 2002). 

Integrity and the Bankruptcies

Stories coming from other parts of the world are enough evidence for us to tell that the value of integrity is crucial to the survival of the organization. It has been the reality that not living the integrity means the collapse of the organization.  The stories of several big corporations such as ENRON, WorldCom, Parmalat, Waste Management, Qwest Communications, Tyco International, AIG, Satyam Computer Services, Adelphia Communications, AOL Time Warner and many more are enough evidence to tell us that it is time to give attention to the value of integrity. All these companies are brought down not because of capital inadequacy but because of fraud. The managers and the auditors are conniving to mislead the public by not telling the truth about the financial situation of their companies (Patsuris, 2002). The lack of integrity which is indicated by poor governance led directly to the demise of Enron and Andersen (Veherzen 2008).  The collapse of those organizations does not only destroy the organization itself but even the personal reputations of board members and management.

Just by knowing what happens to those companies and asking why, we simply say that they cheated, they lied or they were not honest. The prize of being dishonest was so expensive. Their stories tell us that the bottom line of bankrupt stories is the lack of integrity. Solving bankruptcy is in the first place to manage integrity. Managing integrity is to manage individual integrity and individual integrity management is a way to build organizational integrity. It is only through such consensus; that the corporation can develop a culture of organizational integrity. As argued by Duggar (n.d) a culture of organizational integrity creates a highly valued work environment for the employees, pride of being part of the organization and improves the brand image of the organization. Consequently, it provides a foundation for solid long-term financial performance.

Besides financial rewards, organizational integrity creates a great place to work. Great Place to Work Institutes, Inc. (n.d) pointed out trust and integrity as the essential factors to create a great workplace to work in. It maintains that trust and integrity contribute positively to the bottom line. When these values are being practised in the organization, employees will be happy to be part of the organization and it can lower turnover rates. Beyond that, it will be easy for the company to recruit qualified applicants, and have better employee morale. Such an environment indirectly or directly generates higher earnings and high performance (GPWI, n.d.).

One may conclude that practising dishonesty can destroy the workplace environment and it can cause short-term and long-term consequences. Short-term consequences include employees’ dissatisfaction, employees’ demoralization and work performance. Long-term consequences may lead to bankruptcy. But what is frightening is not just financial bankruptcy but moral bankruptcy, the bankruptcy of society or the organization. It is a state of being devoid of morality and ethics for business. As O, Connor (2014) put it, “it is the state a person reaches when he trades away or violates too many of his core moral values and commitments. He may also lose important relationships either as a cause or a consequence of his loss of moral commitments. Someone who is morally bankrupt may or may not recognize that he has reached this state”.

Job Satisfaction

Job satisfaction is the output of how people feel toward their jobs.  It is how much workers like or dislike their jobs. There have been a lot of theories related to job satisfaction. We recall the five hierarchy needs of Maslow, Herzberg's theory and many more. Job satisfaction is a product of the fulfilment of different needs which is produced by the work. The needs must be met and the needs that create job satisfaction are not only physical needs but also psychological needs. In terms of physical needs, it can be identified such as basic needs and wants, however, when it comes to psychological needs, it is hard to pinpoint exactly what exactly those needs are, given the fact that humans are different in nature. Psychological needs encompass many aspects of life and many factors either internal or external can affect psychological needs. Thus the term “job satisfaction” is understood to mean everything from “making all aspects of a job easy for employees” to “making the job meaningful, significant and challenging.” Even such description is still limited because aspects of jobs are not the only ones that make people happy but there are unrelated aspects to jobs that make people happy. In other words, we can say that all the factors contributing to employee motivation and effectiveness are not captured in any one of the single ambiguous concepts of job satisfaction. Thus, much of the quantitative research has not been verified by qualitative data. Research conducted by Schleicher, Watt and Greguras (2004) for example, indicated that individuals with identical responses to questions on job satisfaction often possess entirely different behaviours relating to job performance. Additionally, differing factors relating to job satisfaction hold varying degrees of importance to individuals. Thus, a proven model showing the relationship between job satisfaction and performance has been elusive despite the vast quantity of qualitative data supporting the relationship. These issues are very complex and have simply not been fully deciphered by researchers.

Scheid (2010) argued that although job satisfaction, employee motivation and productivity are complex and confusing issues, management should not stop finding out how to improve job satisfaction. It is important to understand them and find out why so. Understanding the reasons for job dissatisfaction and motivation should temper your approach to improving job satisfaction. It is recommended therefore that managers focus on two areas to improve job satisfaction and they are motivation and productivity. The two factors refer to how employees are treated and the content of their work. Managers must monitor the effect of their management practices through feedback. A good employee survey should help management focus on areas which are creating dissatisfaction or which are not providing adequate motivation.

Many researchers have identified tangible ways how to improve job satisfaction. Benefits have been always identified as one of the sources of satisfaction or dissatisfaction. Only a few researchers have identified job satisfaction or dissatisfaction to intangible factors such as behaviour or treatment. According to Voon (2010), organizational success depends on the leaders of the organization and their leadership styles. By adopting the appropriate leadership styles, leaders can affect employee job satisfaction, commitment and productivity. Narasimhan & Lawrence (2011) also emphasized leader’s behavior and style influence employees’ perception of their leaders and such a situation leads to desirable workplace outcomes. Beyond leadership styles, Xiao (2008) pointed out that work values have something to do with job satisfaction. Work values are related to various facets of job satisfaction, which in turn influence employees’ commitment to the organization.

Related Literature on Integrity

Integrity emerges from the literature as a feature of both conviction and personality. At its most neutral, it is identified with coherence between one’s convictions/one’s words, and one’s actions.  The word alone is associated with ethics. Ethics and integrity are often used interchangeably but they are clearly different. Ethics are the moral behaviours prescribed by society or culture that determine “good” and “bad” conduct for its society or organization members  (Pojman, 1995 as cited in Kaiser & Hogan, 2010). While integrity is the moral attribution we apply to one’s observed behaviour (Kaiser  & Hogan, 2010).  Scherkoske (2010) in his essay on Integrity and Moral Danger argued that persons of integrity are a person who is consistently living his moral values in every day’s life and such consistency merits respect. Two influential accounts suggest why. Bernard Williams as cited by Scherkoske (2010) emphasized that integrity is 'a person's sticking by what she/he regards as ethically necessary or worthwhile. People without integrity trade action on their own views too cheaply for gain, status, reward, approval or for escape from penalties, loss of status, or disapproval.

Consistently in line with what we have discussed at the earlier part of this paper, integrity is becoming also a social value because it is only understood in the social context such as community or organization. Such value is not only the value of individual person but it is also attributed to organizations. In this case, though originally integrity is a personal value, it becomes the value of the organization in which all individual persons who are working in and for the organization are living the value of integrity. Srivastava (1988) in her book, “Executive Integrity: The Search for High Human Values in Organizational Life”, shows that executive integrity is not merely a moral trait but a dynamic process of making empathetic, responsible, and sound decisions. Key features of executive integrity include effective social interaction, open dialogue, and responsive leadership. Such value is not just for oneself but it should be displayed through action in everyday management practices such consistent moral action can radiate around the organization to inspire more employees to follow and finally, it can improve the image and performance of the organization.   

Along such a line of argument, integrity can be considered a business asset. Integrity can enhance business outputs and such assets are crucial to the operation and success of business operations. Koehn (2005) in her writing: Integrity as Business Assets, stressed the need for integrity. He pointed out that in today’s organization, employees seldom see executives with integrity. Koehn cited a new survey by the Walker Consulting Firm to prove his point. According to the survey, less than half of workers thought their senior leaders were people of high integrity. However, integrity is not an instrumental value but it must be an intrinsic value of the managers or executives. Often time integrity is used to achieve the ends but it is not really the inner value of the person. Integrity should be a character of the executive, not treated as an instrument used to achieve a certain purpose. Though Koehn sees integrity as an intrinsic value or it may be called the intactness of the character of a person, however Planalto (2012) sees integrity not only as an intrinsic value or psychological harmony but it has also a practical value. Such value must be practised in daily life. According to him persons of integrity remain true to their commitment to action and deliberation. He suggests that practical integrity captures other features of character and action often related to the ascription of integrity.

Expanding on the meaning of integrity, Cox and Caze (2013) argued that integrity is attributed to various parts of a person’s life such as professional, intellectual and moral integrity. Integrity refers to general character. Since it is the general character of the person, integrity would mean how a person exhibits integrity throughout his life. In other words, the main concern of integrity is how a person of integrity lives his life which can be exhibited in his/her personal, professional and intellectual life. Therefore, integrity is now classified into two kinds. One aspect of integrity is related to a formal relation one has to oneself, and the other aspect is related to an important way of acting morally.

On Integrity and Job Satisfaction

Few literatures have been written along this line. However, we try to examine some available literature on job satisfaction and integrity. It has been stated above that integrity is an essential value of the organization. It has been emphasized that practising such values naturally will improve organizational climate, work environment and finally job satisfaction. Callaway (2006) argues that a lack of organizational communication and organizational performance may decline. Integrity and trust have been identified as a crucial ingredient for organizational effectiveness and it has been also established that there is a linkage between trust and job satisfaction in private organizations.  

Integrity in the organization starts with the manager. It must be a personal value of the manager that has to be seen in action.  A manager who has integrity helps employees, listens to their innovative ideas, motivates them, directs them, and remains open and friendly with them. In that regard, a manager’s integrity helps an organization in achieving short-term and long-term goals because a manager’s value plays a significant role in employee involvement. It inspires and motivates employees to engage. See to it that the ethical code that is set by the manager must be lived by himself and acceptable to the employees. All actions and decisions must be based on the value of integrity and it reflects the intensity of integrity of the manager (Eby &Lentz, 2006).  

It cannot be denied that job satisfaction and a manager’s integrity have a direct relationship. The actions and words of the manager govern the actions of employees. If the manager’s words depict trust and honesty, employees will follow the manager. Therefore, integrity is significant to the employer-employee relationships. When there is trust, there can be a good relationship and when there is a good relationship, employees behave ethically and use ethical ways to complete their tasks and achieve organizational objectives (Kosgaard 2006). Lack of it can weaken the performance of an organization because employees can be dissatisfied and demotivated. When the employees perceive unfairness and inequality, they will adopt unethical behaviour (Cropanzano & Mitchell, 2005). Building trust relationships between employees and employers is necessary to achieve the objective of the organization. Employers and employees can work as a team. Teamwork creates a friendly and cooperative environment that makes employees and employers emotionally attached to each other. Emotional attachment builds a trust-based relationship between employees and managers. In light of this theory, managers and employees share a formal relationship. Both work for the betterment of the organization. Social exchange theory exchanges social benefits such as support, advice, etc. (Grant & Sumanth, 2009)

Related Studies On Integrity and Job Satisfaction

Studies have proven that integrity influences job satisfaction or dissatisfaction. It affects the organization positively and negatively depending on how integrity is exercised by those who lead the organization. Along this line, there have been a lot of studies on integrity and how it affects the job satisfaction of employees. Some researchers argue that leaders need integrity to be effective, while others argue that only results matter, not how you get them. Few have empirically examined the impact of integrity on leadership effectiveness. Hooijberg and Lane (2005) examined the impact of leadership behaviours on effectiveness as well as values such as integrity, flexibility and conformity on effectiveness. They found that the values of integrity and flexibility have a significant impact on effectiveness over and above the impact of various leadership behaviours. Going into the same line of interest of study, Davis & Rothstein (2006) conducted a study entitled, The Effect of the Perceived Behavioral Integrity of Managers on Employee Attitudes: A Meta-Analysis. It tried to examine the relationship between the perceived behavioral integrity of managers and the employee’s job satisfaction, organizational commitment, satisfaction with the leader and attitude toward the organization. Results indicate a strong positive relationship between the perceived behavioural integrity of managers and employee’s attitudes toward the organization. From such findings, the study concluded that behavioural integrity should be given serious attention by those who are in the position of leadership. Lack of integrity would result in reducing organizational commitment and dissatisfaction.  This finding was also supported by the study by Protass (2007) who tried to assess the value of integrity of managers and how it affects employee’s attitudes toward the organization and their commitment toward the organization.  The study concluded that perceived behavioural integrity (PBI) was positively related to job satisfaction and commitment to the organization but negatively related to stress, poor health, and absenteeism. It means that lack of integrity does not affect stress and poor health of employees.

Following the same lead, Yammarino and Palanski (2011) also introduced a similar study on the impact of behavioral integrity of managers on follower job performance, follower’s behavioral integrity. Findings from the studies indicated that leader behavioural integrity was not directly related to follower job performance, but it can affect trust in the leader and follower satisfaction with the leader. It was only the integrity of employees themselves that has a relationship toward job performance. Therefore, Somer (2001) recommended that integrity should be written in the manual of the organization to guide the behaviour of its employees.    

Conclusion

Integrity is not spare parts that are needed when it is needed. It is the value that holds an organization together and brings the organization forward. Without integrity, organizational objectives cannot be achieved.

 

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