Psychological safety and performance standards are two separate, equally important dimensions - both of which affect team and organizational performance in a complex interdependent environment.
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Psychological safety is not immunity from consequences, nor is it a state of high self-regard. In psychologically safe workplaces, people know they might fail, they might receive performance feedback that says they're not meeting expectations, and they might lose their jobs due to changes in the industry environment or even to a lack of competence in their role. These attributes of the modern workplace are unlikely to disappear anytime soon. But in a psychologically safe workplace, people are not hindered by interpersonal fear. They feel willing and able to take the inherent interpersonal risks of candor. They fear holding back their full participation more than they fear sharing a potentially sensitive, threatening, or wrong idea. The fearless organization is one in which interpersonal fear is minimized so that team and organizational performance can be maximized in a knowledge intensive world. It is not one devoid of anxiety about the future!
We now know that psychological safety emerges as a property of a group, and that groups in organizations tend to have very interpersonal climates. Even in a company with a strong corporate culture, you will find pockets of both high and low psychological safety.
In contrast, psychological safety is about candor and willingness to engage in productive conflict so as to learn from different points of view.
Their work shows that psychological safety makes it easier for people to speak up about problems and to alter and improve work processes rather than engaging in the counterproductive workarounds.
In these studies, psychological safety acts (using statistical language) as a moderator that makes other relationships weaker or stronger. Psychological safety has been found to help teams overcome the challenges of geographic dispersion, put conflict to good use, and leverage diversity.