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Value-Based Management

According to Malbasic, values within the organization are crucial in handling the operations of the business. Organizations set their values in alignment with their goals to increase their overall performance. Whether long-term or short-term, organizations attain their goals in an economic, social, and cultural environment. It is, therefore, important for organizations to have diverse values to meet those goals. Organizational values help the organization strike a balance between its values and its goals.

Having clearly defined values help in shaping the employees to achieve the organization’s objectives (Malbašić, 2015, p.238). Choosing the correct values to use in an organizational set-up will allow the organization to achieve greater success. Values selected by an organization should be classified under a category for effectiveness. Having balanced corporate values is determined by the competing values framework and Schwartz’s model. The models help decide the psychosocial nature of human beings and help the organization implement its importance for effectiveness.

Organizations that have managed to balance their values can easily adapt to any changes within their environment because they are flexible (Malbašić, 2015, P. 439). Thus, they can remain competitive. Organizational values are classified in terms of clan culture. It comprises values that enhance teamwork, trust among employees, collaboration, interpersonal relationships within the organization, and caring for people.

Entrepreneurial culture focuses on promoting innovation, creativity, entrepreneurship, and business adaptability. Bureaucratic culture establishes control, centralization of power within the organization, stability, discipline among the workforce, and security. And lastly, market values promote profitability, achievement of the organization’s goals, the organization’s development, and its efficiency in managing its operations.

Schwartz values are motivational in the organization. It is easy for organizations to put the conflicting values on the same level to manage their operations effectively. It is easy to make changes within the system because of its flexibility (Malbašić, 2015, p. 439). The theory is also universal and transcendent. Although the concept has been effective in managing societies, it is ineffective when running organizations. It can be used used in managing an organization, but it is not that effective.

The theories developed for organizational value are not enough to make an organization perform well. New models have to be set to meet the challenges associated with organizations’ other models in the past (Malbašić, 2015, p. 443). New models have to be developed to have a balanced organizational development. The three models research on the paper may prove effective when used by organizations to establish their values. By integrating the three different models in the identified companies used for the investigation, the report proves to be productive and applicable by many business set-ups.

Organizational values can be established through the administrative environment and also its orientation. The business can enhance its social and self-orientation. Thus, it is easy to promote the sustainability and success of the organization (Malbašić, 2015, 443). The new mission-based model focuses on business values, rational values, developmental values, and contribution values. The new models developed will help in running modern businesses that are affected by contemporary issues. The paper clearly shows that the models developed are scientific and solve modern companies’ current problems.

The article by Porter shows the promise of a values-based organization. If employees have a better knowledge of the organizations’ mission and objectives and have clearly defined values, they will work together to achieve them (Potter, 2021). As a result, their performance is enhanced. Understanding the values also enables them to feel like part of the organization and makes them feel wanted. Thus, their esteem is boosted, and they work towards achieving the objective of the organization. It also defines their roles clearly. The organization requires them to do and how best they can do it to increase their productivity and enhance its success. The management, therefore, benefits from low turnover and having a motivated workforce.

Modern organizational management theories focus on the managers working with the employees to increase the Company’s productivity rather than the traditional ones like scientific management by Fredrick Taylor, which emphasizes the employees’ productivity rather than their capabilities (Potter, 2021). The modern theories allow employees to prove their capabilities and abilities, thus improving their self-esteem by motivating them. By managers working with the employees, they can understand them better and unleash their potential productivity.

Understanding employees better by the management involves accessing their values in terms of personality. The importance of a person is normally consistent from childhood to adulthood. Research work proves that people’s personality traits are five in number and the values are ten. The ten values include; achievement, benevolence, conformity, hedonism, power, security, self-direction, stimulation, tradition, and universalism (Potter, 2021). Understanding employees’ importance helps the management know-how to group them to promote teamwork and social relations among the employees. The administration will develop a relationship with the employees and enhance their cooperating and cooperation even in the future.

The theory of attraction explains why people of the same attitudes will work together perfectly because they understand each other better. Forming teamwork through this theory improves the employees’ performance and promotes the long-term success of the organization. By determining the employees’ values in an organization, management can redefine its values and match them with their employees’ values to increase their performance and make its operations more effective (Potter, 2021). It also helps the organization retain its new employees and reduce the turnover rate in the workplace. An s a result, the organization can increase their shareholder’s wealth by generating more revenues through working with their employees well.

To determine the values of the employees, the organization measures them depending on a hierarchy basis. It can be conducted through surveys or by using the MaxDiff Analysis. Therefore, it is for the managers to understand their employees better to solve many issues that may pose a challenge to the organization (Potter, 2021). Organization value-based management is crucial in increasing the organization’s performance, motivating employees, and achieving a business’s objectives. The organization can always change its mission objectives to match its employees’ values to understand the management activities better and maximize the shareholder’s wealth.

According to Sullivan, it is important to match the organization’s values with its employees for better performance. Basing values in an organization helps to achieve success for both the employees and the organization (Sullivan, 2001, p.247). It helps the organization’s people be more committed to their work and enhance their performance to achieve greater results. Values are focused on concern for the employees and their engagement mentally in the organization. An organization that uses values is more respectful, and they value their employees. Employees place their values in the workplace in terms of their responsibilities. It increases their performance to achieve more significant results, use their talents and skills, and recognize their performance capabilities.

Companies that use value-based management have outperformed the others by increasing their revenues, grown and developed expansively, reduced the high rate of employee turnover, and increased their profit ratio in a greater percentage than their competitors. Values are also used to recruit new employees and retain employees for a long time (Sullivan, 2001, p.247). Thus, the organization can retain its workforce because it keeps them more engaged and involved with the organization’s activities. As a result, employees feel they are wanted and committed to their various duties within the organization. Individuals are motivated, and their performance improves their self-gratification.

On the other hand, the organization bases its values on integrity, customer satisfaction, and quality of work produced by employees, innovation at the workplace, equality, and employee involvement (Sullivan, 2001, p. 248). Linking the two values of the organization and individuals will help the organization achieve greater success. It is meant for motivating and analyzing activities within the workplace. If the organization fails to match their values with those of their employees, they make them feel unwanted, and as a result, it affected their esteem and reduces their productivity. The management is also affected by this action.

Values make employees more active by giving them a direction to take when performing their duties. Because the organizational values match their goals, they are determined and focused on running in that direction because it is not conflicting with their values. The organization also acts and moves towards the values it has set (Sullivan, 2001, p.248). It promotes effective coordination and control of activities within the management. It also helps the individuals working in the organization to make decisions aligned with the organization’s values. As a result, it empowers them and gives them confidence in themselves. An organization that uses values in its management can adapt to any changes when surrounded by difficult circumstances such as reorganization, mergers, downsizing, and dealing with a stressed workforce.

Integrating the management process with organizational values is determined by the management’s time and focus in defining its organizational goals. The management takes into account their employee’s feedback. Incorporating their values and that of the organization gives them a chance to make decisions on their own. It also makes them more involved and committed to the organization’s objectives (Sullivan, 2001, p.247). An organization that integrates the value of their employees and that of the organization is more likely to be successful because they have an added advantage to surviving the challenges that affect businesses, such as high employee turnover rates.

The three articles indicate that organizational values are crucial for any organization to effective in its operations. It enhances motivation and makes the employees more committed to the organization. They also help the workforce reduce a high employee turnover rate since their workforce will feel more wanted and motivated to continue working for the organization in the future.


Sullivan, W., Sullivan, R. and Buffton, B., 2001. Aligning individual and organizational values to support change. Journal of Change Management2(3), pp.247-254.

Potter, J., 2021. The Promise Of A Values-Based Organization. [online] Forbes. Available at: <> [Accessed 27 March 2021].

Malbašić, I., Rey, C. and Potočan, V., 2015. Balanced organizational values: From theory to practice. Journal of Business Ethics130(2), pp.437-446.


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