The Impact of “Organizational Ghosts” on Corporate Functioning

by Manuel Costa
10 comments
Organizational Ghosts

Photo credit: Nate Edwards/BYU

This Halloween, a business professor at Brigham Young University (BYU), Jeff Bednar, is investigating a unique kind of specter: the impact of “organizational ghosts” on corporate entities.

Though devoid of conventional ghost-hunting tools like night vision and high-sensitivity microphones, Bednar, along with Jacob Brown of the University of Illinois, has identified numerous such ghosts, including several within BYU itself.

These organizational ghosts are different from the folklore ghosts often associated with Halloween. They are figures like Walt Disney, Coco Chanel, or Steve Jobs—esteemed past leaders who become the living representation of a company’s ethos and identity, continuing to wield considerable influence long after their departure. Interestingly, these figures seem to make frequent visits to their former professional domains.

The Various Forms and Influence of Organizational Ghosts

According to Bednar, who is an associate professor at BYU’s Marriott School of Business, organizational ghosts can manifest in diverse manners. Employees might ask themselves if a past leader would approve of their actions, or they could consider how such a leader would tackle a specific task before embarking upon it themselves.

These entities outlive their physical existence, becoming ingrained in the fabric of an organization through associative learning, perpetuated practices, and collective memory. Recent research published in the Academy of Management Journal indicates that these ghosts may act as protective shields against risky decisions, validate the choices of current leadership, or undermine the credibility of new leaders and competing organizations.

During his 2005 internship at Walmart headquarters, Bednar himself observed the lingering influence of Walmart’s founder, Sam Walton, who passed away in 1992. He noticed that Walton’s photographs and quotes adorned the walls, and employees frequently invoked Walton in conversations, illustrating the lasting impact of the founder more than a decade after his death.

Long-Term Legacy Beyond Founding Figures

Bednar and Brown’s study concluded that not only founders but any leader who significantly embodies the values of an organization can leave a legacy that surpasses their term of service. For instance, at BYU, President Spencer W. Kimball and Hall of Fame football coach LaVell Edwards have become organizational ghosts influencing current leadership and institutional practices.

Once ingrained in the collective memory, these figures may also become immortalized through tangible memorials such as trees, parking spaces, or named buildings. Consequently, they can be “reactivated” in the collective consciousness when organizational members face decisions, drawing on the remembered actions of these “ghosts” as guiding principles.

Awareness of Historical Influences in Organizations

Bednar emphasizes that being conscious of these organizational ghosts is not solely the prerogative of researchers; everyone should be mindful of the lingering presences that shape their behavior and decision-making. This awareness is particularly critical for new leaders who must navigate the complex historical dynamics that underpin organizational culture.

Reference: “Organizational Ghosts: How ‘Ghostly Encounters’ Enable Former Leaders to Influence Current Organizational Members,” by Jeffrey S. Bednar and Jacob A. Brown, published on August 25, 2023, in the Academy of Management Journal. DOI: 10.5465/amj.2022.0622.

Frequently Asked Questions (FAQs) about Organizational Ghosts

What are Organizational Ghosts?

Organizational ghosts refer to esteemed past leaders who have left a significant impact on a company and continue to influence its culture and decision-making long after their departure. These figures become living embodiments of the organization’s values and ethos.

Who conducted the study on Organizational Ghosts?

The study on organizational ghosts was conducted by Jeff Bednar, a business professor at Brigham Young University (BYU), in collaboration with Jacob Brown from the University of Illinois.

How do Organizational Ghosts manifest within companies?

Organizational ghosts can manifest in various ways, from employees considering what a past leader would do in a specific situation to tangible memorials like named buildings or parking spaces. They become part of the company’s associative learning, perpetuated practices, and collective memory.

What impact do Organizational Ghosts have on decision-making?

According to the study, organizational ghosts serve multiple roles. They can act as protective barriers against risky decisions, legitimize the actions of current leaders, and even undermine the credibility of new leaders or rival organizations.

Is the concept limited to company founders?

No, the concept is not limited to founders. Any leader who has had a significant impact on the organization’s values can become an organizational ghost. Their legacy can shape the organizational culture long after their tenure has ended.

How did the researcher Jeff Bednar come across the concept of Organizational Ghosts?

Jeff Bednar first observed the phenomenon of organizational ghosts during his 2005 internship at Walmart headquarters. He noted the lasting influence of Walmart’s founder, Sam Walton, on the company’s culture more than a decade after Walton’s death.

Are there real-world examples of Organizational Ghosts at Brigham Young University?

Yes, BYU itself has organizational ghosts, including President Spencer W. Kimball and Hall of Fame football coach LaVell Edwards. Both figures have left a lasting legacy that continues to influence the university’s leadership and institutional practices.

What is the broader significance of being aware of Organizational Ghosts?

The study emphasizes that awareness of these organizational ghosts is crucial for everyone, not just leaders or researchers. Understanding the lingering influence of these figures can provide valuable insights into the complex historical dynamics that shape an organization’s culture.

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10 comments

TechNerd October 31, 2023 - 6:35 pm

No wonder some companies just can’t seem to move on from their past. The ghosts are holding em back!

Reply
FinanceGuru92 October 31, 2023 - 8:27 pm

intriguing stuff. organizational culture is so complex and this ghost thing adds another layer to it.

Reply
AutoEnthusiast October 31, 2023 - 8:28 pm

Reminds me of how Enzo Ferrari still looms large over Ferrari. His legacy’s pretty much alive in every car they make.

Reply
PoliticalAnalyst November 1, 2023 - 4:44 am

Fascinating. It’s kinda like how founding fathers still influence nations, but on a corporate scale.

Reply
SamanthaJ November 1, 2023 - 5:57 am

Whoa. I’m sharing this with my team. We should all be asking ourselves, “what would our organizational ghost do?”

Reply
CryptoQueen November 1, 2023 - 6:14 am

Interesting read! Makes total sense though, look at Apple. Steve Jobs’ spirit is like, everywhere.

Reply
EcoWarrior November 1, 2023 - 8:11 am

If companies had more positive organizational ghosts maybe we’d have better corporate responsibility? just a thought.

Reply
JohnDoe24 November 1, 2023 - 9:05 am

Wow, never thought about this before! Makes me wonder who the “ghosts” are in my own company. Real eye-opener, this piece.

Reply
YoungEntrepreneur November 1, 2023 - 1:31 pm

Taking notes! Hope I can be an organizational ghost one day, in a good way of course.

Reply
Investor101 November 1, 2023 - 2:26 pm

Hmm. Need to consider this when looking into a company’s long-term stability. Can ghosts also spell bad news?

Reply

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