Learn to build an error management culture

Abstract

Purpose Emphasizing that errors are unacceptable and will be sanctioned does not prevent that errors are made – but can cause workers to cover up mistakes. Making an effort to identify things that go wrong to learn from them and prevent errors in the future offers a more fruitful approach. By sharing an applicable LEARN framework, this paper aims to inspire and give direction to financial corporations in building an error management culture within their organizations. Design/methodology/approach The behavior and culture team of the Dutch Authority for the Financial Markets (AFM) collaborated closely with social and organizational psychologists from Utrecht University to study error management. The results of a literature study were combined with the findings obtained from a survey (N = 436) and in-depth interviews (N = 15) among employees of 13 Dutch financial corporations that are active within the infrastructure of the capital markets. Findings Tone at the top and direct managers’ behavior were positively related to error management culture, which in turn related to more learning. Combining these findings with relevant psychological literature resulted in the LEARN framework, which can guide organizations in developing actions and interventions to build an effective error management culture: Let the board take ownership, Engage employees, Align structure and culture, Refocus from person to system and Narrate the best examples. Originality/value Stimulating financial corporations to start building a healthier corporate culture by offering the LEARN framework – and recruiting insights from social and organizational psychology to do so – extends traditional supervisory approaches.

Impact of organizational culture on strategic planning

“…Top managers' behavior was positively associated with an error management culture, especially with learning objectives (van steenbergen et al , 2019), organizational goals and performance (van Dyck et al , 2005), organizational and individual innovativeness (Fischer et al , 2018) and employees' psychological state and creativity (Geng et al , 2017). Apart from these constructs, our study found that an error management culture positively impacted strategic planning.…”

“…An error management culture fosters learning (van steenbergen et al , 2019), which enhances strategic planning in organizations. This study could not examine the contribution of an individual and organizational learning orientation and knowledge management in the relationship between an error management culture and strategic planning but encourages future researchers to investigate the same.…”

Reflective and decisive supervision: The role of participative leadership and team climate in joint decision‐making

“…Based on the outcomes of this examination, managing board members might benefit from taking a close look at their exemplary behavior, in the view of encouraging participative leadership behavior (Van Steenbergen et al . 2019). In this way, both managing board members and team leaders can take a role in contributing to a climate of cooperative trust and goal commitment, to improve the decision‐making taking place within supervisory bodies.…”

“…To gain more insight into the organizational climate, the managing board of a supervisory organization might conduct questionnaires and in-depth interviews to examine how supervisory officers and higher managers experience various aspects of the organizational climate, such as cooperative trust. Based on the outcomes of this examination, managing board members might benefit from taking a close look at their exemplary behavior, in the view of encouraging participative leadership behavior (Van Steenbergen et al 2019). In this way, both managing board members and team leaders can take a role in contributing to a climate of cooperative trust and goal commitment, to improve the decision-making taking place within supervisory bodies.…”

Error management culture in schools and its relationship with teachers psychological withdrawal behaviors

“…Thus, an error management culture is built in organizations. While building an error management culture, in conjunction with positive psychology sharing the best examples and positive results may facilitate this process by encouraging work engagement (Van Steenbergen et al, 2020). On the other hand, withdrawal behaviors are considered to be an indicator of work disengagement.…”