How To Strengthen A Sense Of Psychological Ownership In An Organization

Why we need to talk about ownership before leadership

Psychological ownership is the feeling that you have a stake in something and that you act with a feeling of belonging, stewardship, increased motivation and loyalty within an organization.

We have chosen to write on ownership before leadership because of actions we noticed as a result of the pandemic. As companies streamline, the observation is that the next levels are being asked to step up and take on bigger roles with more depth and scope. In some cases, this is seen as an amazing opportunity to prove one’s ‘worth’; in others we have seen quite the opposite response. This is likely due to the lack of a sense of ‘psychological ownership’ to do more, to work harder and to take on (possibly) more stress.

The ins and outs of psychological ownership

Here we will break down possible paths to creating a culture where psychological ownership becomes a natural part of the organization.

When this happens, employees will feel more committed and individuals will have a greater emotional connection to the organization’s vision.

How to strengthen a sense of psychological ownership in an organization?

Independence

Individuals need to be given opportunities at every level to have leadership and control over a role or play a part in the organization. However, this means reciprocity between organization and employee. If not managed well, it can cause territoriality and a reluctance to share knowledge.

Share information and communicate generously to all

Sharing of information about projects, teams, organization in a systematic and equal way is essential so there is little room for biases. 

Accountability

Give employees an openness to contribute to their work creatively and contribute to decisions. This expands to a sense of shared burden and authority.

Outcomes we would like to encourage

Citizenship behaviour

This is often described as all the positive and constructive employee actions and behaviors that aren’t part of their formal job description. It’s anything that employees do of their own free will that supports colleagues and benefits the organization as a whole.

Organizational citizenship behavior was first defined by Dennis Organ in 1988 as ‘individual behavior which is not rewarded by a formal reward system….but that, when combined with the same behavior in a group, results in effectiveness.’

The five most common behaviors that he defined through an extensive study are altruism, courtesy, sportsmanship, conscientiousness and civic virtue.

Discretionary effort

Discretionary effort is the level of effort people could give, if they wanted to, that’s over and above the minimum expectation.

How do you encourage this? Give them a reason or permission of ownership, the support and space they need; acknowledge their efforts and be consistent and positive.

Personal sacrifice

‘It’s really important to be able to receive love and receive compassion. It is as important as being able to give it’ – Pema Chodron

But what is the right balance between an employee and an organization? Too much giving or sacrificing can cause resentment and is not always helpful but giving to grow and thrive and cease opportunity is valuable. So, it’s important to identify your give-and-take ratio, prioritize, express your needs and have the right boundaries in place. 

Responsible stewardship

This is the obligation to carry forward responsibilities in a trustworthy and accountable manner in the interest of a group. This includes the ability to respond to changing dynamics, new technologies and to respond with leadership and respect for the needs of the employees.

So if you are a business owner or a leader in an organization, it’s so critical that the ‘psychological ownership’ culture is in place before you make changes to structures so that everyone can thrive together.