1. 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.

2. 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..

3. 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.

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

5. 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.

6. 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.
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7. 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

8. Values in the Rokeach Survey

9. Value Differences Between Groups