7-1 Rights and Obligations

Summary

The transcript discusses the importance of crafting a company culture based on employee obligations rather than rights. It contrasts a rights-based culture, where employees depend on others to uphold their rights, with an obligation-based culture, where individuals are responsible for their conduct. The proactive approach in an obligation-centered culture is shown to be more effective, fostering a positive work environment and high employee retention, as exemplified by Zappos. The summary emphasizes the significance of a values-based, proactive culture for ethical management and employee satisfaction.

Takeaways

• 🏢 Building a company culture can be based on either 'rights' or 'obligations', which fundamentally shapes the organizational structure.
• 🗣️ A culture based on 'rights' might emphasize free speech, but could lead to offensive language and victimization.
• 🤝 An 'obligation' centered culture encourages respectful communication and sets boundaries for expression.
• 🚫 In a rights-based culture, individuals are dependent on others to uphold their rights, whereas in an obligation-based culture, individuals are responsible for their own conduct.
• 💡 Proactive cultures with a clear vision and strategic planning are more effective than reactive ones.
• 🎯 Proactive planning helps businesses set goals and achieve them more efficiently.
• 🌟 Companies like Zappos have demonstrated that a values-based culture can significantly improve employee retention and satisfaction.
• 🌱 Nurturing employees' self-esteem and capabilities in a respectful manner can lead to higher productivity and job enjoyment.
• 👥 A strong company culture can make a significant difference in employee satisfaction and business success.
• 🔑 Understanding and applying ethical management principles can help create a positive and productive work environment.

Q & A

What are the two fundamental choices for building a company culture from the ground up?

The two fundamental choices for building a company culture are creating a culture based on the rights of people or creating a culture based on the obligations of people.

What is the potential issue with a culture based on rights, such as free speech?

The potential issue with a rights-based culture, such as free speech, is that it can lead to offensive or insensitive remarks, as individuals may claim their right to express themselves without considering the impact on others.

How does an obligation-centered culture approach the issue of free speech differently?

An obligation-centered culture encourages free speech but with the condition that it must be respectful, without vulgar language, and without offending the feelings, religions, or racial beliefs of others.

What is the difference between a rights-based and an obligation-based culture in terms of individual responsibility?

In a rights-based culture, individuals are dependent on others to deliver their rights, whereas in an obligation-based culture, individuals have the responsibility to conduct themselves in a certain way, which empowers them and creates a more effective environment.

What is the difference between a reactive and proactive approach in business?

A reactive approach in business involves responding to events as they happen, often in a complaint-driven manner. In contrast, a proactive approach involves having a vision and strategic plan to achieve specific goals and targets.

Why did Amazon purchase Zappos, and what was unique about its business model?

Amazon purchased Zappos for approximately one billion dollars, not for its inventory but because of its unique values-based culture that led to high employee retention and improved customer service, which was a significant differentiator in the market.

How does a proactive culture contribute to employee satisfaction and performance?

A proactive culture that sets clear goals and strategies can nurture employees' self-esteem and capabilities, leading to higher satisfaction and better performance as they feel valued and part of a meaningful mission.

What is the key takeaway from the Zappos example regarding ethical management?

The key takeaway from the Zappos example is that nurturing employees in a respectful and positive environment can lead to higher job satisfaction, reduced turnover, and increased productivity, which are essential aspects of ethical management.

How does the speaker suggest aligning employee behavior with company values?

The speaker suggests aligning employee behavior with company values by creating a proactive, values-based culture where employees understand their obligations and are empowered to uphold those values in their daily work.

What is the importance of having a clear vision and strategy in a proactive culture?

Having a clear vision and strategy in a proactive culture is important because it provides direction and purpose, allowing employees to work towards common goals and making the company more effective and successful in the long term.

Outlines

00:00

🌟 Building a Company Culture: Rights vs. Obligations

This paragraph discusses the foundational aspects of creating a company culture, focusing on the dichotomy between a rights-based and an obligations-based approach. The speaker emphasizes the importance of understanding how a culture is crafted and the impact it has on the structure and functioning of an organization. A rights-based culture is described as one where employees' rights are prioritized, potentially leading to issues like offensive speech, as individuals may claim their right to free speech without considering the impact on others. Conversely, an obligations-based culture is characterized by a focus on the responsibilities of individuals to behave respectfully and considerately, which can lead to a more harmonious and effective work environment. The speaker argues that while rights-based cultures depend on others to uphold rights, obligations-based cultures empower individuals to take responsibility for their actions, fostering a more positive and productive atmosphere.

05:03

🚀 Proactivity in Business and Life

The second paragraph delves into the concept of being proactive versus reactive in both personal life and business. The speaker contrasts the two approaches, with the majority of businesses and individuals being reactive, responding to situations as they arise. In contrast, a proactive approach involves having a clear vision and strategic planning to achieve specific goals. The speaker advocates for a proactive culture within organizations, where employees are encouraged to communicate with respect and consideration for others, anticipating potential issues and addressing them preemptively. The paragraph also highlights the importance of setting clear objectives and working towards them, rather than merely reacting to daily surprises. The speaker uses the example of Zappos, an online shoe retailer, to illustrate the success of a values-based, proactive culture that led to high employee retention and a positive work environment, ultimately contributing to the company's significant value.

10:06

🌱 Ethical Management and Employee Nurturing

The final paragraph emphasizes the significance of ethical management and the nurturing of employees' self-esteem and capabilities in a respectful and positive manner. The speaker suggests that when employees are provided with an environment that fosters their growth and well-being, they are more likely to enjoy their work, leading to increased productivity and a better overall output. The paragraph concludes with the idea that understanding and applying ethical management principles can lead to the creation of a supportive and successful work culture, as exemplified by companies like Disney and Zappos. The speaker leaves the audience with this thought, encouraging them to consider the ethical implications of their management practices as they engage in their professional roles.

Keywords

💡Culture

Culture in an organizational context refers to the shared values, beliefs, customs, and behaviors that characterize a group or organization. In the video, culture is discussed as a foundational element that can be intentionally crafted, with a choice between emphasizing rights or obligations. The speaker emphasizes the importance of creating a culture that fosters respect and positive interactions, which is crucial for employee satisfaction and retention, as illustrated by the example of Zappos.

💡Employee Obligations

Employee obligations refer to the responsibilities and duties that employees have within an organization. The video discusses how focusing on obligations can lead to a more proactive and respectful work environment. It contrasts with a rights-based culture, where employees might act without considering the impact on others, leading to potential conflicts. The concept is central to the video's theme of building a values-based organization.

💡Rights-based Culture

A rights-based culture is one where the focus is on the entitlements and freedoms of individuals within an organization. The script mentions that such a culture might emphasize rights like free speech, which could lead to employees expressing themselves without consideration for others' feelings, potentially causing offense. This approach is contrasted with an obligation-based culture, where the emphasis is on how employees should behave towards one another.

💡Proactive

Being proactive in the video refers to taking initiative and planning strategically to achieve goals, rather than merely reacting to situations as they arise. The speaker argues that a proactive approach to culture and management can lead to more effective and harmonious workplaces. For example, proactively setting standards for respectful communication can prevent issues that might arise from a purely rights-based approach to free speech.

💡Reactive

Reactive behavior, as discussed in the video, is responding to situations as they occur without a strategic plan or vision. The speaker points out that most businesses are reactive, dealing with issues as they come up, rather than working towards a proactive vision. This can lead to a lack of direction and less effective management, as opposed to a proactive stance that anticipates and plans for the future.

💡Free Speech

Free speech in the context of the video is the right of employees to express their thoughts and opinions without censorship. However, the speaker notes that in a rights-based culture, free speech can lead to insensitive or offensive remarks, causing conflict. This is contrasted with an obligation-based approach where free speech is balanced with the need for respect and consideration for others.

💡Respect

Respect in the video is highlighted as a critical value in an obligation-based culture, where employees are expected to treat each other with dignity and consideration. The speaker suggests that fostering a culture of respect can enhance employee satisfaction and productivity, as opposed to a culture that might allow for disrespectful behavior under the guise of free speech.

💡Zappos

Zappos, mentioned in the video, is used as an example of a company that successfully cultivated a values-based culture, leading to high employee retention and satisfaction. The company's focus on creating a positive and respectful work environment is highlighted as a key factor in its success, which ultimately contributed to its high valuation when acquired by Amazon.

💡Ethical Management

Ethical management, as discussed in the video, involves creating a work environment that nurtures employees' self-esteem and capabilities in a respectful manner. The speaker suggests that by focusing on ethical management practices, such as fostering a culture of respect and obligation, organizations can achieve better employee engagement and performance.

💡Strategic Planning

Strategic planning in the video is presented as a proactive approach to business management, where goals and strategies are set to achieve specific outcomes. The speaker contrasts this with the more common reactive approach, arguing that strategic planning is more effective in driving business growth and success, as it involves intentional actions towards predefined objectives.

Highlights

Culture in an organization can be crafted based on either rights or obligations of employees.

A rights-based culture focuses on the entitlements of employees, such as free speech.

Rights-based cultures may face issues with offensive or insensitive speech.

An obligation-based culture emphasizes respect and boundaries in communication.

In obligation-based cultures, individuals are responsible for enforcing respectful behavior.

Contrasting rights-based and obligation-based cultures reveals different power dynamics.

Proactive cultures are more effective than reactive ones in business and life.

Proactive planning involves setting strategic goals and working towards them.

Zappos exemplifies a successful values-based culture with high employee retention.

Zappos' unique culture was a key factor in its acquisition by Amazon.

Call centers typically struggle with high turnover and low customer service.

Zappos created a culture that nurtured employee self-esteem and capabilities.

Disney and Zappos demonstrate the positive impact of a values-based approach.

Ethical management involves creating an environment that respects and nurtures employees.

When employees enjoy their work, the organization benefits from increased output.

The Zappos business model was centered around a proactive, values-based approach.

Transcripts

okay um

i think in order to start this section

on employee obligations

it's really

important to talk a little bit about

how a culture is crafted in an

organization

so essentially if you had to build

a team from from from zero

or a company from zero

you would have two choices in terms of

the culture that you

could create

you could create a culture based on the

rights

that people have

or

you could create a culture based on the

obligations

that people had and they're two very

different

perspectives

whichever one you pick of course is

going to be the way the company is

structured so let's take a look at what

the differences are

when you decide to create a culture

based on the rights of people

clearly you'll meet with the team

and you'll talk about what rights

should be entrenched

written down

put into an email or or a bill of rights

for the employees

and you'll come up with different ideas

one of the things that you might have

is for example

free speech

that the people in the organization have

the right

to be able to express themselves

in uh

about any subject and in any way

that they that they feel is appropriate

for them

now that seems to make a lot of sense

everybody has the right to talk about

whatever they want to talk about and

that might become your value

of course

the problem

then might emerge is that people will

say things

that are

offensive

or insensitive

to other members of the team

from a racial perspective from a

religious perspective

and they can claim listen we have a

fundamental right to free speech i get

you don't agree with me

but

i have the right

to to say that

and then what happens of course these

people get victimized

on the other hand

if you have a

obligation

centered

culture

excuse me

you then would think about that same

issue of free speech and say

um

well what we would like to have here is

that people can speak

um

[Music]

about whatever their they they feel they

need to express but it must be done with

respect

without

vulgar language and without offending

the uh the feelings the religions or the

or the racial beliefs of other people

so that's a totally different

perspective because right now or at that

point you have a boundary that's been

created around your ability to express

yourself

and not only that but the boundary is

enforced by you

you understand what it is

but the responsibility falls on you to

to enforce the boundary whereas where

when you say you have free speech the

individual person has no boundary that

binds them because they have the ability

to say whatever they want

that's what free speech means

so they are entirely dependent

essentially on what

the other people are are going to

feel about whatever it is they say

so what you observe when you take a look

at the contrast between a rights based

and an obligation-based culture

is that in rights

the employees are dependent on other

people for delivering

those rights to them

and if people choose not to deliver them

then they don't have that right

effectively

whereas in an obligation based

um culture

you as the individual have the

obligation

to conduct yourself in a certain way

and

that leaves all the power with you

and it makes a much for a much more

effective

um environment and culture that's works

much

much much better

with the people

it's the same the same thing is true in

in life

as in business

we have two kinds of ways of engaging

life

just like business

first of all we can be reactive

we respond

to whatever is going on

so if we have our quote-unquote rights

violated we respond

to that violation and with a complaint

and we have the ability to say that

the same thing if we want to express

ourselves we respond

to that

so that's one

methodology it's called being reactive

and

98 of business is essentially reactive

two percent

of people in life and in business

are proactive not reactive

what's the difference proactive has a

vision

of what they believe should be the end

goal or

the path

or

the options that should be available and

they strategically say that's what we're

going to do

so when i say that we're going to have a

proactive culture

and we choose to

allow each other to speak

but with respect and without vulgar

language

that's being proactive

acknowledging that people

might be hurt by offensive language

so that's a proactive approach and in

business

it's the same thing we make our

strategic plans we look at growth in the

company

hopefully from a proactive perspective

so that we have a target that we're

looking for we'd like 10 percent growth

we'd like 20 new customers

whatever

whatever aspect of the business you're

in we'd like to modernize the the

warehousing facility

so you can see that proactive

planning that achieves goals and

specific strategies

is much more effective than coming to

work every day and being reactive

now that doesn't mean that you don't get

surprises you definitely get surprises

when you come to work as a proactive

manager and you do have to react to

those surprises but overall

strategically

you're working towards

a goal

and that's very important

and here again when you're dealing with

your employees if everybody knows where

you're going

how we are responsible for ourselves

clearly you have an environment that

nurtures people

and tries to bring out the best that's

in them

you know there's a company called zappos

they're a shoe company

they're online

and amazon bought them

um

probably about eight years ago

for approximately one billion dollars

now that's a lot of money

to pay

for a shoe company

and they didn't pay the billion

because of the inventory

they paid the billion because there was

something unique about zappos

that was essentially

not available anywhere else

the zappos business model

like so much stuff that's online

was a call center

call centers are notorious

for high staff turnover

and low customer service

because the people that are working in

call centers are constantly

getting a lot of negative reinforcement

from

customers that maybe are not too happy

and it takes an emotional and

psychological toll on people and so they

do the job for a certain amount of time

and and then they

they just can't do it anymore

but zappos had created a different type

of culture a values-based culture i'm

not going to review the va the the

zappos

strategy but they created this

values-based structure

um

in the company

and the

employee retention went through

the roof

people didn't quit

people enjoyed the work

they enjoyed coming to work they enjoyed

dealing with the customers because

everything was based around

this

proactive values-based

um

approach

and

that's

the key to understanding this aspect of

ethical management if you look at the

employees

and you understand

that if you put them in a

in an environment

where their self-esteem

and their um and their capabilities are

nurtured

in a respectful and positive way

the ultimate end result is that they're

going to enjoy coming to work and that

you're going to get

the greatest output possible from them

you see that with disney you see that

with zappos in the example that i gave

you and you see that with many other

organizations

as well

so i'm leaving you with that thought so

that as you

engage in this module you can keep that

ethical concept

in your mind

thank