Organizational cultural dilemmas have shown a lack of psychological safety and sense of belonging, which may be positively impacted by the application of combined servant leader (SL) and inclusive leader (IL) behaviors. SL focuses on serving others' needs first, embracing the individual's strength, and stirring towards inclusiveness. Controversy exists in the literature regarding SL's ability to promote inclusiveness in the workplace. This chapter explores factors that link SL and IL from the angles of others-focused orientation and of psychological safety, empowering uniqueness and sense of belonging in followers. A framework of inclusive servant leader (ISL) is explored. This study is significant. As younger generations enter the workforce demanding more equitable leadership treatment, servant and inclusive behaviors have come to the forefront of organizational attention; nevertheless, its application is still in its infancy. A multiple case study research was conducted.
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Industry experts are taking a strong stand on the urgent and important need to focus on the topics of Diversity and Inclusion (D&I), not only within governmental and public institutions but more intensely in private organizations. Gallup has shown evidence of organizational engagement rates stagnation and decreases over a longitudinal study (Harter, 2020), due to the combination of lack of leadership direction and inclusive culture. Studies from BCG showed evidence of positive impact when companies are perceived to be inclusive, resulting in increased stock price by 14% during the 2008-2009 crisis (BCG, 2021). In a 2020 survey by McKinsey showed that 39% of job seekers turned down a job due to perceived lack of inclusion in the organization, and for those employed, junior associates perceive less sense of inclusion than senior managers, regardless of their gender, age, ethnicity, sexual orientation, and gender identity; all in all, they felt that there were barriers to establishing organizational inclusiveness, caused by behaviors such as micro-aggressions and lack of respect for individuals (Bailinson et al., 2020). Deloitte has identified seven areas of organizational challenges in driving D&I within organizations, and these are: creating a culture that promotes respect for individuals, defining with clarity the concept of inclusion in own organization, focusing on gender and sexual orientation, providing formal programs to building an inclusive environment, focusing on global cultural diversity, supporting new family models in workforce, providing development for cross-generational workforce (Bourke & Stockton, 2014). Bersin by Deloitte 2015’s study of inclusive organizations impact of their financials and performance displayed: 2.3 times higher cashflow per employee in a three-year period, 13 times higher mean cashflow from operations, 1.8 times more change-ready, 1.7 times more likely to be innovation leaders in their market; 3.8 times more able to coach people for improved performance, 3.6 times more able to handle personal problems, 2.9 times more likely to identify and build leaders (Bersin, 2015). To sum up, employees that perceived to be included are three times more likely to be committed and feeling excited about the work they do and for being part of the organization (McKinsey, 2021).
D&I drives employee well-being, and as organizations cannot only be run by top managers, building an environment conducive to D&I is imperative, not just for financial performance, but for the sustainability of its stakeholders that run the organization, especially when hybrid workplace designs and norms are becoming a necessity (Kuknor, & Bhattacharya 2020; Bailinson et al., 2020; Dowling & Prince, 2021).
The focus on inclusion has taken a more important stand compared to diversity management, as the presence of the later does not represent the existence of the former (Bernardo & Ferdman, 2010). Despite organizational HR efforts on establishing leadership competencies, setting goals and training programs on inclusion, little progress has been shown in its application and revitalizing engagement in the workplace (Sanyal et al, 2015). Research demonstration of organizational benefits of inclusion is coherent with industry analysis, in that, it attenuates negative aspects at work, such as, unexpected performance ratings, limited growth opportunities, assignments less desired, as it engages people in dialogue and understanding (Sanyal et al, 2015). As organizations augment in size, operational leadership and team members take a stronger importance in driving the business for their market knowledge and interactions with customers, thereby, their ability to understand and close the gap of employees’ needs is crucial. When managers and team members feel unincluded resulting in disengagement, a long-term economic impact is evident in the organization. Hence, promoting efforts of inclusion is not simply an HR key performance indicator, but an important all-company strategic imperative, indispensable to implement throughout all echelons, as a way of life, and as a healthier workplace culture. Thus, inclusiveness is not just passive targets (Kuknor, & Bhattacharya 2020; Atewologun, & Harman, 2020).