In one line: People’s energy and initiative depend less on who they are than on the context management creates, the “smell” of the place. Change the context and you change the behavior.

Core idea

In a well-known talk, management scholar Sumantra Ghoshal described visiting his hometown in summer. The heat and humidity drained him so completely that he could barely move, while the same person, walking in a cool spring forest, felt full of energy and wanted to run. Organizations, he argued, have the same effect. Most companies create a stifling atmosphere of constraint, compliance, control and contract, then complain that employees lack initiative. The alternative is an atmosphere of stretch, discipline, trust and support, in which ordinary people take initiative naturally.

How it works

Ghoshal’s two contexts, paraphrased:

StiflingEnergizing
Compliance: do what you’re toldDiscipline: people keep commitments because they own them
Control: watch and inspectSupport: leaders help rather than police
Contract: do what you’re paid forTrust: fairness and involvement in decisions
Constraint: stay in your boxStretch: ambition and personal meaning
  • Management creates the smell. Front-line behavior is a symptom; context is the cause.
  • Discipline and stretch are the “hard” side. The model is not soft: it demands high standards and high support.

In practice

The talk raises hard questions for a leader in the middle:

  • How far can you influence climate when “bad management” above you is draining morale?
  • Can you weed out toxic elements when the “bad apples” have power?
  • How would you respond if your own team told you that your behavior was creating the toxic climate?

A recurring answer is that middle leaders can create a local smell, a micro-climate of trust and support inside a team. It is sustainable only as long as the team chooses to maintain it, and it works best when it stays consistent with the organization’s best espoused values rather than opposing them.

Questions to ask yourself

  • What is the smell of my team right now: summer heat or spring forest?
  • Which of the four stifling elements do I add without meaning to?
  • What could I change this month to add trust or support?

Connections

Sources

[1]
S. Ghoshal, “The Smell of the Place.” Recorded talk. [Online]. Available: https://youtu.be/YgrD7yJwxAM