Worker Credits

“Organizations need strong leadership and strong management for optimal effectiveness”^{1 (p.151)} is almost cliché. The challenge for organizations is making it happen. Leaders display a wide range of behaviors but most, if not all, can be categorized into two buckets. That is, studies conducted at Ohio State in the 1940s identified two basic styles—initiating structure (task orientation) and consideration (relationship focus).¹ Leaders tend to behave in one or the other style, and some integrate their style with the use of power. That is, leaders can follow a more coercive approach exhibiting an “I am in charge” attitude (coercive power), while others follow “we are in this together,” attracting workers based on their characteristics (e.g. friendliness, respect, ease of getting along). Hollander et al.² identified the latter as Inclusive leadership, which is defined as leaders working in tandem side-by-side with followers as opposed to acting as superior.  

One failing of some leaders is the recognition of the equality of workers in the leadership equation. Considering leadership equals the outcomes from the interaction of leaders and followers in a given context, ⁶ the question becomes the significance of each in the equation. Many would argue that followers have as much to do with organizational success as the leader. Granted, even though leaders have position power and their role is to guide organizational change, it cannot be done alone. That is, without a constructive and ongoing positive interaction between a leader and follower, and equal sharing in the work to reach outcomes, nothing is achieved. "The benefits that flow from such active involvement also include bolstering of credibility, trust, and loyalty in leader-follower relations [and] ... respect, recognition, responsiveness, and responsibility, in both directions.”^{2, (p. 1)} When their relationship is on solid footing, the follower and leaders can switch roles (e.g. follower becomes leader). This flexibility can improve results because leaders and followers become joint owners of success. 

To get to this point, leaders must earn the follower's attention. Therefore, leaders must behave in such a way that workers (1) desire and want to be better citizens (i.e. organizational citizen behaviors) and (2) allow errors and strangeness. Mistakes can come in the form of business errors, human errors or in behavioral unconventionality. 

Hollander offers an interesting perspective in his theory of idiosyncrasy credits.³ He describes the natural relationship trajectory between leaders and followers; that is, as their relationship solidifies, leaders become more able to “push the envelope.”³ Leaders are only able to do this because of credits they have earned from followers. The concept parallels what happens when a new worker joins a group. At first the unit compels the individual to conform to its rules, procedures and norms. Once credibility and acceptance is gained, he or she is given legroom to make mistakes and perhaps even suggest new ways of doing things. If these suggestions occur too early, the group will shun the individual. This is how Hollander viewed idiosyncrasy credits.³ He theorized that at first the leader needs to get the followers on his or her side. Once a leader gains prominence and confidence among them, like a bank account, his/her credits (a currency of leading) will have risen to a sufficient level that he or she can push for revolutionary change and have it accepted without being "deposed." That is, the surplus credit account permits the leader the latitude to make mistakes, behave oddly and drive bigger and more dramatic changes in the organization. 

The level of credits the leader has earned frames the boundary of permissible action. The growth in credits, to a large extent, is an outcome of the behaviors exhibited by the leader.  This may seem obvious, but while many organizations claim they value their worker as a key resource, many do not adhere to their words. In fact, many behave the opposite. For example, consider the organization that executes a layoff but fails to offer communication about the situation to the remaining stakeholders, or the worker who  leaves on a business trip only to return and find his desk has been taken by a new hire. Actions like these decrease trust. Leaders fail sometimes to consider how each episode or event is recorded in the workers' minds. For each negative, the worker consciously and unconsciously begins to decrease a leader’s credits and vice versa. Leaders, for obvious reasons, must approach followers as equal partners and expend effort to build credits.

Hollander’s theory provides a way to view the hundreds of events that occur between a leader and follower and an accounting mechanism; if the positives exceed the negatives, the worker will be more willing to accept a leader's actions. 

Research on Hollander’s idiosyncrasy credits has had mixed results;² while it does not have solid research support, its value is in its practicality and simplicity for leaders. Leaders simply need to work to improve relationships with workers as a means to increase credits. Leaders can build credits through the demonstration of expertise and by first adopting the norms of the group he/she is leading.³ Beyond this starting point, here are a few other ideas for consideration: 

• Carl Rogers, a past humanistic psychologist, has suggested that one should always have positive regard for a fellow human being.⁴ 
•  “Respect, recognition, responsiveness and responsibility.”² 
•  Praise in public and punish in private (except when a clear example needs to be made). 
•  Be authentic as a leader; genuineness engenders trust and trust is an essential ingredient in leading others.⁵ 
•  Extend individualized consideration—be concerned about those who work with you (see Transformational Leadership literature). 
•  Never delegate what you would not be willing to do yourself. 
•  Respect the individual’s outside world; family friendliness. 
•  Create equity, fairness and standardization in organizational decisions, especially as it relates to human issues such as promotions. 
•  Etc.

Leaders sometimes fail to recognize that they are not in it alone; instead the workers are equal partners in the leadership of the organization and the corresponding outcomes. Leaders need to build idiosyncrasy credits to earn the right to drive for significant organizational changes and improve success; that is, gain the “right” to deviate from what is expected by the group.³ Therefore, getting followers on your side is essential.

Please feel free to make comments.

References

¹ Robbins, S., & Judge, T. (2012). Essentials of Organizational Behavior (11th ed.). Upper Saddle River, NJ: Prentice Hall.

² Hollander, E.P., Park, J., Boyd, B., Elman, B. and Ignagni, M.E. (2008). Inclusive Leadership and Leader-Follower Relations: Concepts, Research, and Applications, published by The Member Connector, International Leadership Association, www.ila-net.org (May/June 2008). Retrieved 10-10-13. 

³ Stone, T.H., Cooper, W.H. (2006). Idiosyncrasy Credit Theory Revisited. ASAC, 2006, Banff, Alberta. Retrieved online 10-11-13.

⁴ Rogers, C.R. (1961). On Becoming a Person: A Therapist's View of Psychotherapy. Boston: Houghton Mifflin.

⁵ Robbins, S., & Judge, T. (2011). Organizational Behavior (14th ed.). Upper Saddle River, NJ: Pearson Education.

⁶ Hughes, R.L., Ginnett, R.C., & Curphy, G.J. (2009). Leadership: Enhancing the Lessons of Experience (6th ed.). New York, NY: McGraw Hill Irwin.