2.3.1. Meaning and Defmition of Values · · .

values can be defined as broad preferences concerning appropriate courses of action or outcomes. As sue
1
'"" "es reflect a person's sense of right and wrong or what "ought" to be._Values are so embedded that they c
1 1
·• -' ,erred from people's behaviour and·their perception, personality and motivation. They generally influen
: __ ·: •· )iaviour. Values.are relatively stable and enduring. This is because of the Way in which they
· .,..11,ad:/ 1earnt. ·
• ._ •· L,f: .,:, ::.;,-.m is vwwed as a relatively permanent perceptual framework which influences the nature of t
n.r,:vidu~,l's behav iou r. The val ues are the attributes possessed by an individual and thought desirable. Value
are :-ir.;i~ar tO attitudes but are more permanent and weli built in nature.
'. -. , ,yone i1as a hierarchy of values that forms value system. This system is identified by the reiative importano
: 1ty ~5.:stgn to such values as freedom, self-respect, honesty, obedience, equality, and so on.
Acco nHng to l\'lilton Rokeach, "Values are global beliefs' that guide actions and judgments across a variety o
~/.:3··,ons)'. . · ·
perceP uon, , .... ,u uv ~•u • wues lChapter 2) 43

rding to Stephen P. Robbins "V · . . · 11

i;.cco • lly preferable to an op . , alues are specific mode of conduct or end state of existence 1s persona Y
or soc ta · posite or converse mode of conduct or end-state of existence".
rding to Eduard Spranger "V · · · ·
1u~s are constellation of likes, dislikes, viewpoints,
00 I and irrational judgm
;.c~o , inner 1~clmat1ons,
ratt !
world• ents, preJudices, and association pattern that determine a person's view of the

2,3.2.Nature of Values
Nature of values is as follows:
part of Culture: Values are el . . . .
1) h eaningful symb I h ements of culture, which 1s a complex set of values, ideas, attitudes, and
ot erl ID: that society :hs to s ape human behaviour in the society. Every society has its own culture and
peop e m a ere to cultural requirements. .
2) Learned Responses: Values ~e learn d · · ti d.
. everyday , experiences
• such that w e •responses.
, Some of these responses are learned rom b irect h
. • fr h.' h th e mamtam those responses whenever we are confronted y t e
experiences omtw ic_ ey developed. Other orientations are learned from vicarious experiences, such
that our response o a gIVen exper1·e · · - · • ·
nee 1s genera11sed to other similar experiences.
3)' Inc~l~ted:
instt_tut :t
1 i~es are ?1~ulcated and are passed through generation to generation by specific groups and
~c altrans_m_ission
te
starts from the family from where the socialisation process starts. Apart from
' fanuly, ucation ' bgious, and ethnic institutions also transmit cultural values from one generation to another.
4) . Social ~h~no~enon: _Y alues are a social phenomenon, that is, cultural habits are shared by aggregates of
peopl~ hvmg mst1~rgamsed society. An individual's way of thinking and behaving is not culture, rather group
beh~viour ~on !utes culture. Group is, developed and reinforced through social pressure upon those who
are mteractmg with one another. · . ·

5) Gratifying Res~onses: Values exist to meet the biological and other needs cifthe individuals in the society.
Th~s, elements ~n the culture bec<;>me extinguished when they are no longer gratifying to members of the
society. The society rewards behaviours which are gratifying for its members.
6) Adaptive Process: Culture is adaptive, either through a dialectical pro~ess or evolutionary process.
Dialectical or sharply discontinuous change occurs when the value system of a culture becomes associated
with the gratification of only one group or class in the environment. In such a case, other classes of the
society reject the logic of the value system and replace it with a new value system, such as through
revolution or other methods .. In the evolutionary process, the change occurs slowly as a gradual process, but
not through revolution.

2.3.3. . Types of Values

According to Rokeach classification, values··can be of following types:
1) Terminal Values: 'Tenninal vali1es''J ead to ~nds to be achieve,d,.~.g., ~omfortable life, ·family security,
self-respect and sense of accomplishment. Terminal values reflect what person is ultimately striving to
achieve. A tenninal value is a desired end state or outcome that people seek to,achieve. Qrganisations.might
adopt any of the following as tennina~ valu~s, or guiding principles - quality, responsibility, innovativeness,
excellence, economy, morality, apd profitability. Large insurance companies, e.g., may value profitability,
but their tenninal values are often stability and predictability because the company cannot afford to take
risks. It must be ther~ to pay-off policyholders' claims. Tenninal · values, such as a sense of
accomplishment, happiness, pleasure, silvation, and wisdom, are desired end-states or life goals. These
values represent the things which an individual wantto achieve or accomplish during their lives.
2) Instrumental Values: .'Instrumental values' relate to·means for achieving desired ends, e;g., ambition,
courage, honesty and imagination. Instrumental values reflect how the person gets there. An instrumental
value is a desired mode . or type of behaviour. Modes of behaviour that organisations advocate include
working hard, .respecting traditions and ~uth~rity, being ~on~e~ati~e and cautious, being fru_gal, being
creative and courageous, being honest, takmg nsks, and mamtammg high standard. ,
Instrumental values are alternative behaviours or _means by which a person achieves desired end-states.
Sample instrumental values include ambition, honesty, independence, love, and obedience.
 44 (Unit-II) · detennmmg
. th t they direct us m · · how Indiv·
·
They key thing to rememb~r about instromental values is a . l~
should behave in the pursuit of our goals.T 0 I and Jnstrumen taI Values ·
Table 2,1: ermI •
Termla•I V•~•es ("ends")
Comfortible hfe
~n:~:::° tal Values ("means")

Haooiness: satisfaction in life Coura2e

Peace and hannonv in the world HoneslY
itv: ealth Helofulness
SProsoenf accomolishment
w lndeoendence
ense o . f
Pride in accomolishment lma21~a ion
S· ity; freedom from threat Assertiveness .
ecun . Hard work and achievement
Mature love Education and intellectual oursuits
Self-respect .
Lastina friendshios Obedience .
Knowledsze and wisdom Open-mindedness
Courteous
Salvation· findina eternal life

2.3.4. Classification of Values

Values can be classified as follows: . • all
1) Ruman Values: Human values consist of all those values th~t are umvers Y a~p ica e all Peoi
r bl tO
These values relate truth, righteousness. peace, Jove, compasSion, bannony, non-v10Jence and appr"Jltjl
10
ethical, humane behaviour. · . · ·
2) 111 Social Values: Social values are certain qualities and beliefs that.are shared a SJ'<:cific cul~ or group
people. In other words, social values comprise all those values ~h1~h ~pie hvmg m ~oc1ety ~d having conill(
needs and requirements, should practice and strictly adhere to, m the interests of making the hv~s of all meni~
of society congenial and happy, thereby pro~oting the welfare of the people. These values include tole!¾
mutual respect, unde~ding, ~xistence, coo~on, coordination, etc., for the good of one.and all.
3) Basinm Values: Business values co11:1prise all those ethi~ behavioural aspects in ~1 bus_iness d~alings
transactions. Hannonious and .holistic business practices will ensure greater customer satisfactron, whde bus~ 2
values cannot bypass profits earned ~nably and ethically respecting the laws of the land. It is imperative \
business does not get entangled ·in unscrupulous, unethical, immoral practices involving harmful repercussil J.
- on the concerned persons. Business can ethically survive if customers are encouraged to thrive.
4) Community Valu~:. Community values consist _of the rules framed ~or_ the welfare ~d devel~p~ent of "'
concerned communities. These nonns are prescrrbed by clubs, associations, and pubhc ·organ1sat1ons or . ~,
the committees pf panchayats in villages and rur~l area$~ u'
. ,:· '

5) Family Values: Family vaiues involv~ the bonds of affection between different members within nuclear c
joint f~ilies, and respect towards elders. Ethical behaviour of youngsters towards their parents m
teachers and also the responsibilities ~f parents towards their children, are values to be cherished. ~)
6) Professional V~lues: Professional values include ·the rules of condu~t, ethical behaviour, patterns fl
norms for various professions. . • '6)
7) Na~ional Values: .N~tiona.1values_comp~ise the.rights and responsibilities of citizens. They also include
. entire gamut of c1v1c duties. National mt~grat1on can be promoted if citizens promote activities for
promotion of ~ominuna~ ·harmony, nat~onal integrati~n and -understanding between various classes/
persons bel~ngmg to va_rrous parts o~ the co1.1n~: National prestige can be enhanced by strengthening
bonds ofumty and affinity between different rehg1ous gr<>ups in the country.
8) Secular Val~es: In secular value system approach, the facts of life are the major source of inspiration g
I
n~t the. reUg1ou~ •way. It treats--the--persen· on the basis of actuality. Secular values focus on pracril 7) .
orren!3t1on ~d .~ndepende~t efforts. These values focus on scientific facts. It emphasise that there is
sup~ryor or 1pfenor caste; the same way th~re is no superior or inferior religion. All human bein,
equal·and should be ~eated m the same manner. - . ·
9) Spirit~a,I Va!u,: ~piritµali~ r~fe~ ~o the co~~ept ~fsoul or the feelings what we have in our inner h
Out of the Jumlaltons ~f physical ltfe there' is a: Umltle;, world, .where_a person wotlcs from his ~
8)

1
 u¼i~atisfaction or _i~er satisfaction and, for satisfaction of others. The things, which really affect human being,
·'are c~lled spmtu~l things. The spiritual value for managers suggest on having a hig~er l~vel of
consciousness, which means that a manager must be aware of positive and negative effects of his action and
decisions undertaken, which are consciously performed. · ·

2.3.5. Sources of Values

parents, frie nd s, teachers and external reference groups can influence individual values. Indeed, a p~rson's
values develop as 8 product of learning and experience in the cultural setting in which he lives. As learnmg and
experie~ces v~ fr:om one per~on to another, Value differences are the inevitable result. Not only the values but
atso their rankmg 10 terms of importance differs from person to person. A person learns and develops values
because of the following factors or sources:
-----------,
Sources of Values

Familial Factors
Social Fact.o rs
Personal Factors
C1.1ltural Factors
L Religious Factors
Life Experiences
Role Demands
Halo Et'fect

J) Fan_iilial Fact~rs: A ~ignifican~ factor influencing the process of s09ialis~tio~ of an individual i~ role of ~e
fam~ly. The child reanng practices that parents use shape the individual's personality. The leanung of social
.behaviour, values and norms come tl)rough these practices. For exampie, through reward and punishment,
parents_show love and affection to their child that motivates them to perform better and bec9me a good person.
_2) Social Factors: Of the societal factors, s~hool has a major role to · play in the development of values.
Through discipline in school, a child learns desirable behaviours important in the school setting.
3) Personal Factors: Personal factors like aptitude, look, skill, and individual level of education or knowledge
determine his development of values. For example, one's :higher level-of intelligence may. result in faster
understanding of values.
4) Cultural Factors: Culture refers to a set of values, rules& standards transmitted amqp.,g.generations and
acted upon to produce behaviours that fall within acceptable limits. These rules and standards always.play
an important part in determining values. For example, it is good to give place to elder one~
5) Religious Factors: Individuals, generally,- receive strength and comfort from their ·religion. Religion
comprises of a formal set of values· which are .passed on front-" generation to generation. Advancement- in
technology has under viewed faith in ~ditional religious beliefs and values. •
, 6) Life Experiences: A man learns the most from his own personal life experience. Sometiines 11:1an cart learn
from the experience of others also. In the long run, most of the values which influence our .behaviour are
validtted by the satisfaction we have experienced in pursuing them. Individuals work out their valµes on the
basis of what seems most logical to _them. Values carry importance in din;ct pf<?pc;>rtion to ho~ much faith
the individual has in them. He shoµld h~ve those values which can s~d the test of reality. He .should not
have rigid values but flexible system which can change with the changes in the individual himself, his
situation and the socio-economic environment. ·
7) . Role Demands: The role de~and refers to the behaviour. -~ociat~~Lwit.ll ,particulai: position in the
organisation. All organisations have some formal and s9me informal code of behaviour. ~ole demand can
create problems when there is a role conflict. Thus, the managers will have to quickly learn the value
system prevalent in the organisation, if they -want to m9v:e .upJh~ ll\dc;l~r Qf ~ucp~~s/ P~or e~mple, if the
informal code of behaviour says that the manager must mix up socially with the subordinates, he· should
learn to do so even though, his personal value system conflicts with his rol~ as ·a manager. ,
. . . , ' ' . ' -; . . .
Balo Effect: The halo effect refers to the tendency of judging people on the basis of a single trait, which
may .be good or bad, favourable or unfavourable. Sometimes, we judge a ~rson by one first impression
 about him or her. For example .if a person is kind, he will also be perceived as good, able h 1
cheerful, nice, and intelligent ~d so on. On the other ban~ if a person is abrasive, h~ shali a~s~\
Perceived as bad' awful ' . unkind ' aggressive' harmful and wicked. Thus, what one sees m .the un·IV11sl
1
1

de~ends partly on one's inner needs. Th_us, with the help of halo effect, we see certam val~es in Ot~\
•

which are actually not there,.but we perceive them to be there. ··

2.3.6. Importance of Values · . ·

Values are important to the study of organisational behaviour because of the foll~wmg rea~ons: .
I) Effects Individual's Thoughts and Actions: Gracious values are refle~ted m the ~ct1on of an employe1
an individual. Through their excellence in action an employee can easily fetch rewards. Whereas neg'·}
approach towards values can bring disaster, that will result in bad effect on an employees career. · ilti
2) Influences Employee's Motivation: Values affect employee's motiv.ation by determining wh~t_rewards
required. Employee's preference is given imp?rtan~e in providing re'_Var~ that can be monet~ gain 01
holiday package with family. Values have a direct Impact on the mot1vat1on system_. An understandin
t.hese may help the manager in designing a suitable motivation system for employees m the organisation~
. .

3) Relates to Belief System: The principles or ideas in which groups a~d individuals_ ma~ bel_ieve strongly
they are the means to guide their respective behaviours. The behaviour of organisations 1s ·a1so gui~ed
\hese principles. ·
4) Forms Core of Identity: Values reflect their. fundamental beliefs, guide their behaviour· an.d influen
decision-making. Values take their form in actions, not in words; they are expressed not by what one sa
but by what one does. Values can be used to harness the human energy of an organisation and to create
atmosphere of via~ility, loyalty and pride. Values have been increasingly recognised as providing
essential foundation and framework for guiding individual and organisational behaviour. · '•
5) Works as Unifying Force: Values are always the unifying force of organisation and have a strong identi
It is an approach to organisational change based on a reassessment and realignment of values that guide
work of those in the organisation has proven successful in transfoqning a v~riety of public org_ani~ation~.
6) Influences Attitude and Behaviour: Values lay the foundation for understanding one's a,ttitude .
behaviour. It is, therefore, these values that .are taken into account by the manager while formulating vari
personnel policies in the organisation. Alignment of values with organisational policies may enco
employees to produce more desirable working behaviour.and to develop a favourable attitude. If organisatio
policies are not in line with personal values of the employees, they may get disappointed-dnd-'their perform
level may be adversely affected. For example, employees who give more value to efficiency and hard work
secure promotion may be upset if promotions are granted only on a seniority basis. ·
7) Creates Credibility: An organisation that is believed to be driven by· ·moral values is respected in
society even by those who may have no . informatiori about the working and the-· businesses or
organisation. For example, Infosys is perceived ·as an organisation for _good · corporate governance
social responsibility initiatives. This perception is held far and wide even by those who do not even kno
what business the organisation is into.
8) Provides Guidelines for Decision-Making and Conflict Resolution: Those mahagers who give value
personal integrity are less likely to make decisions they know can be more injurious to others. Honesty te
and integrity are the most interesting development in the area of values and decision-making.

2.3. 7. Managerial Implications of Values

The managerial implications of values are as follows:
1) Hiring Practices: The first tangible application of core values shows itself in hiring practices. M
companies bemoan the cost of turnover, but few conduct an analysis of "integrity of fit'' of candidates du ·
the recruiting_and hiring process. A good hiring or functional manager, equipped with a set of questions
detennine the consonance between the candidate's·values and the organisation's values, will make a J11
better choice than the manager considering credentials alone about whether or not the candidate will w
well in that company's environment. Integrity of fit reduces the likelihood of friction between the emplo~
and organisation, turnover, and_time consuming and costly employee relations work later on.
Perception, 4,ttitude and Values (Chapter2) 47
2) Sets D_irec~on: ~he second place values play an important organisational ~Qle, j~ in helping to set direction.
In coi:lJ~nction with mission and vision, values help form an organisation's.identity and culture. Leadership
mu st.,ahgn around a set of behaviours by which they will .conduct their business, communicate them
verbal_ly, and demonstrate them behaviourally. While there· are many 9pportunities for leaders to be
inclus_1ve. and egalitarian, when it comes to setting the example for what . success looks like in an
orgamsatlon, all eyes are on them. When leaders delegates this responsibility, it is tantamount to abdicating
a core element of their role and sending the message to the organisation that the leadei:s are unwilling to be
~eld accountable for their behaviour and are operating a "we will make it up as we go ·along" culture. In the
best cases, organisational leaders are acutely aware of how they demonstrate the organisation values and
reinforce them in all their interactions with people on a daily basis .. These behaviours, on display for
everyone to see, become nonnative models for all others to emulate.
3) Assistance in Decision-Making: Clearly defined values provide critical assistance in decision-making,
parttc~l_arly for leaders who are not at the very top of the organisation. One of the biggest challenges for
middle'. managers is making 'decisions that can stand up to scrutiny and the second-guessing of stakeholders
who.,fr, not reap immediate b~riefits.'from those decisions. Underth'.e right conditions, decision-making can
come virtually to a halt, as managers seek approval and 'advice from those ·stakeholders who live higher up
on the.. food chain. 'Naturally; m~ny of these stake.holders have conflicting interests, and their advice is too
often ,influenced by those interests as opposed to what the best outcome would be for the organisation. Of ·
course, what is good for the .organisation is reflected in its values. ·Any decision-maker, at any level in ai1
organisation, who makes decisions that align with the organisation's values will be able to justify a decision
to any other stakeholder in that organisation (a~d will derive the fringe benefit of being able to sleep better).
While, alignment does not guarantee their decision will be 'implemented, it does ensure they will be able to
. answer the second guessing, and stand behind any decision they make.
4) Aligned to the Organisation Strategy: Finally, values have a-relationship to an organisation's strategy.
Strategy is the plan leaders put in place to .achieve their· mission. As leadership teams conduct strategic
planning, they rightfully focus on how well they have perfonned against their goals. Less often they ask,
"How can we build for the future in a way that is consistent with our core values?" Leaders asking this
question are setting their organisation.s up-for-long-tenn health and sustainability .