What are Organizational Values?

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Presentation transcript:

What are Organizational Values? Amity Business School What are Organizational Values? Values are basic convictions on how to conduct yourself or how to live your life that is personally or socially preferable – “How To” live life properly. Values are the guiding principles that determine what behaviors, events, situations, and outcomes are desirable or undesirable. Types Terminal Instrumental There are two kinds of values: terminal and instrumental. A terminal value is a desired end state or outcome that people seek to achieve. An instrumental value is a desired mode or type of behavior. Examples are provided on the next slide. An organization’s culture consists of the end states that the organization seeks to achieve (its terminal values) and the modes of behavior the organization encourages (its instrumental values). Ideally, instrumental values help the organization achieve its terminal values.

VALUES Shape & determine individual behavior. Dominant force that evolve the adjustment pattern in a stimulus situation. Basic conviction-beliefs. Specific mode of conduct-personally or socially acceptable. Judgement element of what is right or wrong or desirable. Have both content ( what is imp)& intensity (how imp). Eg- freedom, pleasure, self respect, honesty, obedience, equality..

Importance of Values Provide understanding of the attitudes, motivation, and behaviors. Influence our perception of the world around us. Represent interpretations of “right” and “wrong” Imply that some behaviors or outcomes are preferred over others.

Values, Loyalty, and Ethical Behavior Ethical Values and Behaviors of Leaders Ethical Climate in the Organization Values, Loyalty, and Ethical Behavior

SOURCES OF VALUES Family, friends, teachers, society. Therefore relatively stable and enduring as a result of the way it was originally learned. Learning pattern of values assures their stability and endurance.

Classifying Values – Rokeach Value Survey Terminal Values: Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime Instrumental Values: Preferable modes of behavior or means of achieving one’s terminal values. People in same occupations or categories tend to hold similar values But values vary between groups Value differences make it difficult for groups to negotiate and may create conflict. 4-6

Terminal and Instrumental Values Amity Business School Terminal and Instrumental Values Organizational Values Terminal Values Instrumental Values This slide illustrates how an organization’s terminal and instrumental values ultimately lead to the development of specific norms, rules, and standard operating procedures that support the culture of the organization. These norms, rules, and SOPs encourage members of the organization to adopt certain terminal and instrumental values and behave in certain ways. Norms are largely informal so many of the most crucial values an organization has are not written down. Specific norms, rules, and SOPs

Values in the Rokeach Survey

Value Differences Between Groups