ORGANISATIONAL FINANCING AND INDIVIDUAL PSYCHOLOGICAL OUTCOMES
TIME AND MONEY
People are more stressed, anxious and burned out than ever before. People are working longer hours and unable to properly 'switch off' from work. The global economy is increasingly competitive and organisations are demanding more from their members to simply tread water.
People are struggling.
The fundamental cause, whether anyone cares to admit it, is a lack of time; and as a proxy for time, a lack of money.
Organisational Financing touches almost every process and every decision within an organisation. It is an ever-present companion in our organisational lives. Whether it is constant reforecasting or budget processes, or completing time sheets for month end productivity analyses, or simply just being able to afford to recruit additional members to our teams, Organisational Financing is there to guide us and shape our experiences of our organisations.
During 2022, following the completion of my MSc Psychology (Conversion), I decided to undertake a PhD to further develop my research and analytical skills whilst trying to add new knowledge and understanding in how organisations (specifically organisational financing) shape and impact the psychology of individual members.
This page is dedicated to my research into Organisational Financing and Individual Psychological Outcomes.
Research studies into Organisational Finance regarding mental illness and other individual psychological outcomes is limited. Most studies as at the time of writing focus on 'financial shocks' such as M&A, PE buyouts, Insolvencies or other significant transactions. Likewise these 'shocks' have been considered through considered the external environment and how recession conditions impact individuals both within organisations and outside organisations.
However, the impact of these 'shocks' is important. These have been connected to mental illness, burnout, lack of job satisfaction and job insecurity at an individual level. These all in turn impact upon productivity and performance of an organisation. However, financial shocks have been shown in some cases to improve workplace safety, develop better management practices and improve the quality of products.
My research is focused towards 'non-shock' organisational finance.
Below are some of the mechanisms (or mediators) that I am proposing of the relationship between Organisational Financing and Individual Psychological Outcomes. These are by no means certain, definitive or concluded upon yet, but I wanted to share some of my thoughts to give you insight into what I am researching.
Leadership Style is a central component of much research into organisations. Leadership is considered to be one of the primary culture-embedding mechanisms that can shape the experiences of individual members. Leaders pay attention to Organisational Financing to measure, control, reward and allocate resources and are part of the review process of the 'rites and rituals' associated with finance. Leadership has been shown in some instances to reduce employee burnout, reduce employee stress, increase job satisfaction and also improve performance.
Organisational Structure is grounded in Structural Contingency Theory which posits that organisation operate in context specific ways, adapting to their environments. Structure is often considered as polarities between Mechanistic (often considered 'Tall') and Organic (often considered 'Flat') structures. These differing structures can be considered as 'how' other mediators operate within an organisation. The majority of research has shown that Organic structures often lead to increased job satisfaction and commitment, however in some cased the freedom associated with such structures can lead to stress and anxiety amongst members.
Organisational Culture is often confused with Organisational Climate. Both are similar constructs that consider the experiences of organisational members. Culture relates to assumptions, values and beliefs that are taught as the ways to think and feel within and organisation. These are often communicated to newcomers through myths and stories about how the organisation adapted and solved and external problem. Cultural sacralisation and formalisation mirrors the description of objective regularity norms and are less about 'features' and more connected to context.
Organisational Climate is another lens through which to consider member experiences and descriptions of their work setting. Climate is focused on the perceptions and meaning attached to policies, practices and processes that are experienced and expected within an organisation. This is similar in concept to subjective representational norms which are an interpretative framework of what is perceived and experienced. Climate relates to features as opposed to context.
This is all very new and subject to change. Undertaking a PhD is a process of learning, investigating, understanding and refining knowledge. This is where I am now in my thought process as I start this journey. The synthesis and evolution of this that takes place over the next three to four years will undoubtedly change my thoughts. I will do my best to keep this website up to date, but it may become challenging depending on time commitments etc. If you are interested in finding out my latest thoughts on this matter, please do not hesitate to get in touch.
As part of undertaking my PhD I've committed to try and keep a video diary of my experiences and thought processes throughout this journey. I'm trying to keep to one episode a week and under 20 minutes to allow people to quickly dip in and out.
Maybe someday someone will analyse these to see what a PhD does to an individual!