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As CEOs now communicate with a wide variety of stakeholders, it has become increasingly difficult to ensure that the intended meaning of their messages is received. Boas Shamir focuses on how leaders engage in the management of meanings in order to (1) justify their actions and the changes they introduce to the organization; (2) recruit followers and motivate members of the organization to support their actions; and (3) create shared perceptions and interpretations so that members’ actions are guided by a common definition of the situation. Heike Bruch, Boas Shamir, and Galit Eilam-Shamir show how the leader of a large Swiss-based company actively managed the views, interpretations and energy of more than 100,000 employees through weekly e-mail letters when the company faced grave financial difficulties. Gretchen Spreitzer, Mary Sue Coleman, and Daniel Gruber show how an incoming university president dealt with an ongoing lawsuit regarding the university's use of affirmative action in its admissions processes and worked with various stakeholders to firmly establish the university's identity.

This study investigates the situations in which productive organizational energy (POE) and organizational performance increase through customer passion, that is, perceived customers’ affective commitment and customers’ positive word-of-mouth behavior. We integrate research on POE with research on customer influences on employees. Based on emotional contagion processes we develop hypotheses for the energizing influences of customers at the organizational level. We test the hypotheses using a dataset containing 495 board members and 8,299 employees of 152 organizations. The results show that customer passion is positively related to POE, which is in turn positively related to organizational performance. Furthermore, the findings indicate that the effect of customer passion on organizational performance through POE depends on top management team’s (TMT’s) customer orientation. By providing first insights into the linkages and contingencies of customer passion, POE, and organizational performance, this study puts forth a more holistic understanding of the energizing effect of customers on organizations.

While there is growing recognition of the role of leaders as managers of meanings, leadership theories have so far focused primarily on the articulation of a positive vision, the framing of organizational issues as opportunities, and emphasizing potential gains and benefits for the organization and its members. However, these positive frames may not be equally valid under all circumstances and with respect to all issues. This chapter concentrates on exploring leadership as management of meanings in times of crisis and recovery, when leaders attempt to stop deterioration, turn the organization around, and lead it to recovery. We label this leadership approach prevention-oriented leadership. On the basis of an analysis of a series of weekly e-mail letters sent by the CEO of a large company to all organizational members over a period of 22 months we suggest that prevention-oriented leaders may use three related ways to manage meanings, namely (1) generating a clear picture of the negative challenge, (2) strengthening the organizational members’ self-efficacy and confidence in the organization's resources available for coping with the crisis, and (3) creating a sense of progress.

In this chapter, we extend existing models of individual and collective emotional intelligence to the organizational level and provide an empirical study on the performance impact of organizational emotional intelligence. We propose that organizational emotional intelligence is composed of the average level of individual emotional intelligence of organization members and the collectively shared emotionally intelligent norms, values, and behaviors that shape their interaction. Across 156 organizations, we demonstrate sufficient within-organization consistency and between-organization difference to consider emotional intelligence a collective organizational characteristic. In addition, we show that the level of organizational emotional intelligence is positively associated with operational performance, financial performance, and innovation performance, and negatively associated with involuntary absence. Thus, organizational emotional intelligence can be considered a valuable asset for organizations.

The purpose of this paper is to examine, theoretically and empirically, whether an employee training program can enhance the collective perception of empowerment of work units within an organization. The authors hypothesized that training participation relates to empowerment by enhancing the potency, meaningfulness, impact, and autonomy of the employees.

The authors collected data at two time points, before and after the training intervention. Over the two periods, the sample consisted of an average of 2,383 employees nested in 36 work units of a large multinational company.

The results indicated a positive relationship between training participation and increased levels of collective psychological empowerment, with differential effects on the dimensions of empowerment.

This study provides evidence of the positive relationship between training and empowerment, suggesting training effects across levels of analysis. The results indicated dimensions of empowerment that are more and such that are less prone to training. Such knowledge may help to inform organizations in developing training strategies. The authors provide recommendations for a respective training program.

This is one of the first studies to investigate the relationship between training participation of individual employees and shared empowerment perceptions within their work units, adding an important antecedent to the research on empowerment. In addition, the authors propose ways of how individual employees can affect shared perceptions among work-unit members. The study offers insights into the development of empowered work units, the vertical transfer of training across levels of analysis and implications for training programs.

The purpose of this paper is to explore how and when customers influence organizational climate and organizational health through their feedback. Based on affective events theory, the authors classify both positive and negative customer feedback (PCF and NCF) as affective work events. The authors expect that these events influence the positive affective climate of an organization and ultimately organizational health, and that the relationships are moderated by empowerment climate.

Structural equation modeling was utilized to analyze survey data obtained from a sample of 178 board members, 80 HR representatives, and 10,953 employees from 80 independent organizations.

The findings support the expected indirect effects. Furthermore, empowerment climate strengthened the impact of PCF on organizational health but does not affect the relationship between NCF and organizational health.

The cross-sectional design is a potential limitation of the study.

Managers should be aware that customer feedback influences an organization’s emotional climate and organizational health. Based on the results organizations might actively disseminate PCF and establish an empowerment climate. With regard to NCF, managers might consider the potential affective and health-related consequences for employees and organizations.

Customers are able to contribute to an organization’s positive affective climate and to organizational health if they provide positive feedback to organizations.

By providing first insights into the consequences of both PCF and NCF on organizational health, this study opens a new avenue for scientific inquiry of customer influences on employees at the organizational level.

In light of the increasingly aging workforce, it is interesting from both a theoretical and practical perspective to investigate empirically the commonly held stereotype that older workers are more resistant to change (RTC). Thus, the main purpose of this paper is to investigate the age/RTC relationship, considering tenure and occupational status (blue/white collar employees) as additional boundary conditions. Furthermore, the paper investigates the relationship between RTC and individual performance, thereby introducing RTC as a mediator in the age/job performance relationship.

Study hypotheses are tested among a sample of 2,981 employees from diverse companies. Structural equation modeling with bootstrapping procedures is applied to investigate the moderated-indirect model.

Contrary to common stereotypes, employee age is negatively related to RTC. Tenure and occupational status are further identified as boundary conditions for this relationship. Moreover, RTC also shows an association with individual job performance, which allows for the establishment of an indirect-mediation mechanism from age to job performance via the intermediation of RTC. These results can be explained using current life span concepts, particularly the selective optimization with compensation (SOC) model.

Hypotheses were tested in a cross-sectional data set, which does not allow for conclusions of causality.

This study contributes to the age stereotyping literature that has thus far neglected the age/RTC relationship. Furthermore, the age/job performance literature is extended by introducing RTC as an important mediating factor. In sum, this study should help provide a more positive and more differentiated picture of older employees in the workplace.

The relevance of affective factors in the charismatic leadership process has been widely acknowledged in leadership research. Building on this notion, the present study empirically investigated the role of leaders’ positive mood and emotional intelligence in the development of charismatic leadership behaviors. We developed hypotheses linking these constructs and tested them in a sample of 34 leaders and their 165 direct followers from a multinational corporation. Results showed that both leaders’ positive mood and leaders’ emotional intelligence were positively related to their charismatic leadership behaviors, as rated by followers. Further, we found leaders’ emotional intelligence to moderate the relationship between leaders’ positive mood and their charismatic leadership behaviors. Emotionally intelligent leaders exhibited charismatic leadership behaviors to a high extent, largely irrespective of their degree of positive mood. In contrast, leaders low on emotional intelligence were more likely to exhibit charismatic behaviors when their positive mood was high, while they were less likely to exhibit such behaviors when their positive mood was low. We conclude by discussing the implications of these findings for leadership theory, research, and practice.

The purpose of this paper is to empirically investigate hierarchical impacts on specific transformational leadership (TFL) behaviors (i.e. idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration).

Survey data on TFL, job satisfaction, and hierarchy were collected from 448 managers from a multinational corporation in Sweden.

Idealized influence and inspirational motivation occurred more frequently among upper rather than middle managers, while there were no differences for intellectual stimulation and individualized consideration. Also, idealized influence, inspirational motivation, and intellectual stimulation were more effective in strengthening subordinates' job satisfaction among upper rather than middle managers, while individualized consideration was similarly effective in both groups.

The cross‐sectional research design precludes causal conclusions and potentially allows for common method bias. With the main research interest pertaining to hierarchical differences in TFL, however, method bias seems unlikely to fully account for the results.

Study results emphasize the necessity to strengthen TFL on lower managerial levels. Organizations might achieve this by cutting administrative constraints and empowering lower level leaders.

The study addresses repeated calls for a consideration of contextual factors in TFL research. It points to the role of hierarchy as a boundary condition of TFL.