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Procedia Economics and Finance 11 (2014) 95 109

Symbiosis Institute of Management Studies Annual Research Conference (SIMSARC13)

Aligning and Propagating Organizational Values


Dr (Col.) P.S Jamesa *
a

Professor, T.A Pai Management Institute, Manipal, Karnataka

Abstract
That organizational values are positively related to performance is well established by works such as Good to Great (Collins,
2001) and Built to Last (Collins and Porras, 2004). Academic works also show several positive relationship such as 1)
organizational commitment and citizenship behavior (Cohen, 2011; Arthaud-Day et al, 2012; Vurgun and Sezai, 2011), 2)
organizational culture and job satisfaction (Danuta & Vytautas, 2011), 3) work engagement (Anna et al, 2013), 4) lower burn out
(Anna et al, 2013), 5) team performance (Arthaud-Day et al, 2012), 6) organizational learning (Cohen et al, 2011; Cohen & Liu,
2011), and 7) organizational integration (Levent et. Al, 2011). While values are important, whether we align the values of the
individual and organization and propagate them adequately to benefit from their positive relationship is not so clear. This study
is motivated by the observation that many MBA students could not easily find the values of many good Indian companies and
that they could not easily decipher them when tasked to do so as part of their assignment. Auster and Freeman (2013) also found
that value-fit in organizations leaves much to be desired. In this work, I examine the question whether organizations match their
values to the individual values and whether they propagate their espoused values in an easy to access manner. Using secondary
input procured from the web site of companies that figure among the top 25 in the Business Todays ranking, 2012, I examine
these issues by cognitive mapping of the espoused values to the value theory framework (Schwartz, 2006) and find that many
organizations do not map their values to the individual values or propagate them in an easily accessible manner.
Recommendations are given to mitigate this problem.
Keywords: organizational values, cognitive mapping, individual values

B.V. This
is an open
access B.V.
article under the CC BY-NC-ND license
2014
2013 Elsevier
The Authors.
Published
by Elsevier
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and/or peer-review under responsibility of Symbiosis Institute of Management Studies.
Selection and/or peer-review under responsibility of Symbiosis Institute of Management Studies.

* Corresponding author. Tel.: +0-000-000-0000 ; fax: +0-000-000-0000 .


E-mail address: james@tapmi.edu.in

2212-5671 2014 Elsevier B.V. This is an open access article under the CC BY-NC-ND license
(http://creativecommons.org/licenses/by-nc-nd/3.0/).
Selection and/or peer-review under responsibility of Symbiosis Institute of Management Studies.
doi:10.1016/S2212-5671(14)00180-4

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P.S. James / Procedia Economics and Finance 11 (2014) 95 109

1. Introduction
Contribution to the body of knowledge: This paper examines how effectively top business organizations in India do
value mapping to create value congruence between individual and organizational values and effectively they achieve
value propagation. Since values are extremely important for sustenance and performance of an organization, the
knowledge contributes to enhancing organizational effectiveness. The author uses the value theory framework for
this mapping.
Teaching a required course of leadership in a premier AACSB accredited business school which has
leadership as one of the Program Learning Objectives, I had a pleasant surprise while handling one of the student
assignments. The assignment required students to evaluate the vision statements of some major Indian companies
using Collins and Porras model of vision building, a model which includes core values as one of the important
components. The surprise found it difficult to identify the core values of many Indian companies simply because
these were not clearly articulated and easily available and they had to come up with inferences drawn from various
inputs from the company web sites and other resources rather than procure it through a direct search using key word
values or core values in the search window of the company web site. This made me ask some basic question i.e.,
do values matter? Are companies proud of their espoused values and if so, do they really announce them from the
roof tops? How well aligned are the values of the company and the individual?
In this paper I assume that espoused values, distinguished from demonstrated/practiced values, is an essential
precondition if values have to be effective. Then I examine the values of top 25 Indian companies as ranked by
Business Today magazine (BT 500, 2012) from two perspectives. Firstly, I examine whether companies
propagate/announce them in a manner that is articulate and easy to identify and secondly I map the key words of
their values to themes in the value theory (Schwartz, 2006) through a manual cognitive process to find out whether
there is a prima facie case to be concerned about these. Evidence shows that both value propagation and value
mapping needs considerable improvement.
The question whether values are important is a rhetorical one. Classical works such as Good to Great
(Colliins, 2001), Built to Last (Collins and Porras, 2004), The Leadership Challenge (Kouzes & Posner, 2006)
and Emerging Value in Health Care: The Challenges for Professionals (Dumma, 2010) have all articulated the
indispensable role of values. Values are positively related to 1) organizational commitment and citizenship behavior
(Cohen, 2011; Arthaud-Day et al, 2012; Levent et al, 2011), 2) organizational culture and job satisfaction (Danuta &
Vytautas, 2010), 3) work engagement (Anna et al, 2013), 4) lower burn out (Anna et al, 2013; Dylg et al, 2013), 5)
team performance (Arthaud-Day et al, 2012), 6) organizational learning (Cohen et al, 2011), and 7) organizational
integration (Levent et al, 2011). Values are important for for shaping team behavior (Bardi & Schwartz, 2003, p.

P.S. James / Procedia Economics and Finance 11 (2014) 95 109

120), for resolving team conflicts (Jehn & Mannix, 2001; Kirkman & Shapiro, 2005) and that they influence
organizational performance.
Intuitively, all of us define values are something that are very close and important to us. We feel guilty when we
violate them. Formally, values can be defined as serious and deeply held normative principles which guide a
persons beliefs, attitude and behavior (Lawson, 1989). Values are beliefs, have motivational constructs, transcend
specific actions and situations, guide selection or evaluation of actions, policies, people and events and are ordered
in their importance (Swhwartz 1994, 2005a, 2006; Allport 1961; Feather, 1995; Inglehart, 1997; Kohn, 1969;
Kluckhohn, 1951; Morris, 1956 and Rokeach, 1973). They involve choosing, prizing and acting (Dudley, 1995).
Choosing implies existence of several values from which one selects alternatives with free will and consciousness.
Prizing implies the worth we attribute to each value or the pecking order of these values. Acting implies that we
operationalize the values through practices. Though values are stable (Rokeach, 1973), our motivation and
consciousness are contingent and hence we re-order our values and this makes it dynamic and this enables an
individual to align his/her values to the organizational values.
The stable yet dynamic nature of values makes them foundation of behavior and identity (Dose, 1999; Meglino
& Ravlin, 1998, p. 354). It is also a social science concept used across all social science disciplines (Rokeach &
Ball-Rokeach, 1989, p.775). They have substantial influence on behavioral responses (Locke, 1976; Rockeach,
1973; Postman, Bruner & McGinnies, 1948; Williams, 1979; Epstein, 1979) and dictate socially desirable conduct
or end-states of existence (Kabanoff, Waldersee, & Cohen, 1995, p. 1076) by creating compulsion to conform to
the social values (Kluckhohn, 1951). Because they are socially desirable, we express them publically. These are
called espoused values (Agryris & Schon, 1978). Espoused values can be differentiated from internalized or
demonstrated values (Rousseau, 1990, Schuh & Miller, 2006) which manifest through policies, practices, action and
persistent reinforcement (Peters and Waterman, 1982). Moreover, espoused values increase legitimacy and image of
an organization (Siehl and Martin, 1990; Sutton and Callahan, 1987) and reputation (Sutton and Callahan, 1987).
Hence having espoused values and articulating them in an easily accessible manner is necessary for creating valuefit or value congruence.
Since values are endearing and stable, there is an inherent contradiction in realigning them i.e. re-prioritizing
them. To do this, the force of organizational values would have to overcome the static force of individual values.
Since values result in behavior, value similarity/congruence would result in similar behaviour. It follows that if there
is similarity in values of the individual and organization, it would be easier to overcome the static force of stability.
Value similarity is important because it creates the social system to achieve common goals (Kluckhohn, 1951),
predicts interpersonal interactions, reduce role ambiguity and conflict and leads to greater satisfaction in
interpersonal interactions (Fisher & Gitelson, 1983 and Byrene, 1971), all of which are essential for organizational

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performance. Values also lead to external adaptation and internal integration (Meglino and Ravlin, 1998). But values
required for external adaptation may be very different from those required for internal integration and organizations
may interact in highly efficient manner and yet fail to survive (Meglino and Ravlin, 1998). In sum, there could be
some inconsistencies in the values that individuals and organizations define for themselves. This makes it difficult
but important to create value congruence. People join and leave organizations but the organizations are ongoing
entities. Therefore, organizations face the challenge of being a crucible which continuously receives people with
different values and then creating congruence. This complexity is increased when we consider that the other stake
holder could have contending values and value priorities have to be evolved in an integrated manner (Schwartz,
1996). Articulating the values clearly and in an easily accessible manner helps in creating value congruence. An
equally important issue is whether organizations can espouse values so that the individuals and other stake holders
can create congruence with ease.
There are many ways to approach this e.g., we can identify an individual value frameworks such as terminal and
instrumental value framework (Rokeach, 1973) value theory framework (Schwartz, 2006) and align the
organizational values to these as much as possible which means that both the organization and the individual adapts
to each others values. In this essay, we follow the value theory framework to do this. The model proposes that there
are ten basic values and these can be divided into five dimensions and three themes. The dimensions of Selfdirection and simulation can be combined to indicate the theme of openness to change, while dimensions of security,
conformity and tradition can be combined to indicate the theme of conservation. These are relatively opposed to
each other i.e. if the priority of values related to openness to change is high, those related to conservation would be
low. Similarly, value of achievement and power indicate self-enhancement theme while its opposite is selftranscendence consisting of benevolence and universalism. Hedonism is a value without any opposing force. The
amplification of these values is given in Table 1.

P.S. James / Procedia Economics and Finance 11 (2014) 95 109

Table 1: Amplification of values included in value theory framework (Adapted from Schwartz, 2006)
Value
What it means
What behavior can you expect?
1
Openness
to Self-Direction
Independent in thought Creativity, exploring e.g., Vasco da
change
and action
Gama, researchers.
2
Stimulation
Excitement
Seeks novel experiences and
challenge. E.g., an entrepreneur.
3
conservation
Security
Safety, stability and Gives and expects assurances,
harmony
guarantees and written rules.
4
Conformity
Restraints actions and Limits actions that may upset
inclinations
others and social norms
5
Tradition
Respect
and Accepts customs, religious beliefs
commitment
to and ways of doing things
existing things
6
SelfAchievement
Personal success
Demonstrates
and
values
enhancement
competence and works very hard
7
Power
Provides social status Controls and dominates people
and prestige
e.g., many politicians who are not
typically leaders.
8
SelfBenevolence
Welfare and goodness Tends to support others and
transcendence
of others
redistributes resources.
Protection and welfare of all
9
Universalism
Understanding,
appreciation
and people, nature, sustainability.
tolerance
10
Hedonism
Pleasure seeking
Having fun, entertainment e.g.,
Google, Southwest Airlines.
While there is overwhelming evidence in support of the organizational benefit of values, and espoused values are
important, do organizations really ensure that they are articulated in an easily accessible manner? Do they strive to
achieve value congruence or do they merely spell out some values and then expect the stake holders to adapt. From
the experience of students who were doing the assignment, one suspects whether organizations approach this in a
serious manner. Auster and Freeman (2013) also find that application of value-fit is limited in organizational
context. When organizations define the values clearly and follow up with practices and actions such as setting goals
in alignment with these values, individuals pick up the cues and reprioritize their values to create congruence
(Maurino, S. V., & Domenico, S. M. R. D., 2012). It is possible to enhance congruence by aligning the practices to
the espoused values (Jolita; Gulbovaite, Evelina, 2012). In this paper, I examine two issues i.e. 1) whether Indian
companies make espoused values easily accessible and 2) how well they align are the individual and organizational
values using value theory framework. For example innovative organizations should lay much emphasis on selfdirection and stimulation values and correspondingly reduce values related to conservation. While they need to
create a balance between self-enhancement and self-transcendence, they cannot focus on the latter at the expense of
the former. They can define hedonism related values such as having fun at work and entertainment to augment the
innovative culture and mitigate stress invariably related to innovation and change. Similarly organizations which
need conservation rather than innovation should pick and choose appropriate values.

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In this work, I confine to espoused values and do not address demonstrated values. Nor do I create a hypothesis
and test whether the relation between degree of congruence or articulation with performance through rigorous
statistical methods. However, I do examine through cognitive mapping and cross tabulation whether there is a prima
facie case to examine this issue further, which is the purpose of this research.
2.

Method
There are methods for assessing organizational core values (Van Reckom et al, 2006). However since the

purpose is to evaluate whether they are effectively propagated and aligned, the researcher followed the method of
collecting secondary data from the web sites of 25 top companies from BT 500 (2012) and adopted manual
cognitive mapping.
Ease of access was identified as easy and not easy (yes or no). This is an evaluative statement but was based on
the following parameters.

Is it easy for an external person to identify the espoused core values?


o

Direct hit on search word values or core values.

Easy identification from the obvious pages such as about us, corporate, vision, mission pages

Is it easy to understand the these values


o

Key terms are mentioned.

Terms are self-explanatory or are explained if required.

For checking the alignment to value theory, key terms were picked up and fitted into the cross tabulation against
the dimensions of value theory (See Table 5. The list of companies given in the table is at random and does not
follow the BT ranking).
For the purpose of giving weight to these values, forceful key words were selected under each dimension and
given a weigh of 2 while other words were given 1. If the term was used in value theory framework (See Table 1), it
was given 2. Additionally, a few words were also given the value of 2 based on the context of the use of the term. If
a term largely meant the same or was used in a compound sense e.g., innovation and change, or safety, health and
environment, only one of the key words was given weight and not all. Thus a term like innovation and change
would score only two and not four. Similarly, when a large number of key words or values are subscribed to in one
dimension, the maximum value was confined to six i.e. as if it had only three key words. See Table 3 for the key
words that were given a weight of 2.

P.S. James / Procedia Economics and Finance 11 (2014) 95 109

Table 2: Key Words and Weights

3.

Ser No
1
2

Dimension
Openness to change
Conservation

Self-enhancement

Self-transcendence

Hedonism

Key words given a weight of 2


Change, self-direction, simulation, independence, excitement,
Security, conformity, tradition, loyalty, corporate citizenship, avoidance of
conflict, stability, harmony, respect, commitment, customs, assurance,
norms.
Achievement, power, status, prestige, success, challenge, control,
dominance, competes, excellence, entrepreneurship
Benevolence, universalism, welfare, empathy, understanding, appreciation,
protection, support, environmental, sustain, trust etc.
Fun, enjoy.

Findings (See Table 4 for details)

Only 44 per cent of the companies articulate their espoused values in an easy to find manner (11 out of 25).

Only 12 per cent (3 out of 25) describe them as core values.

Openness to change and conservation themes.


No of companies which have included both 16 (64 percent).
No of companies which have excluded both themes 6 (24 percent).
No of companies with the theme openness to change 13 (52 percent).
No of companies with conservation as theme 7 (28 percent)
Most frequent word used is innovation.

Self-enhancement and self-transcendence theme.


No of companies which have included both 17 (68 percent).
No of companies which have excluded both the themes 2 (perhaps this ie because the researcher
could not trace their values).
No of companies which have included the theme Self-enhancement 17 (68 percent).
No of companies which have included the theme Self-transcendence 25 (100 percent).
Merit, challenge, achievement and such emphatic words related to Self-enhancement is seldom
used.
Term excellence is the most frequently used term to indicate self enhancement and eight
companies have used it.
In Self-transcendence theme, the most frequent term used is respect which nine companies have
used. Seven companies have used the key word health, safety and environment and perhaps these
are directly picked up terms from ISO related activities. Six have used the term integrity and three
each have used transparency and empathy.

No one has used hedonism theme.

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The mean of weight for the various dimensions were as follows i.e. weight of all the companies in question
for a dimension divided by 25.
Change 1.2
Conservation 0.88
Self-enhancement 1.92
Self-transcendence 4.04
Hedonism 0
Table 3: Cross Tabulation of Organizational Values with Dimensions of Value Theory
to

Conservation

Self enhancement

Self-transcendence

change,
learning

Corporate
citizenship

Excellence

Quality,
research
and
developme
nt

Quality,
challenge

Integrity,
respect for
the
individual,
and sharing
Health,
safety,
environment
,
Human
resources
development
,
energy
conservation
Ethics and
org values,
safety,
health,
environment
,
trust,
transparency
,
mutual
concern,
customer

Environment
,
sustainabilit
y

Hedonism

Value Weight

Universalism

Benevolence

Value Weight

Power

Achievement

Value Weight

Tradition

Conformity

Security

Value Weight

Stimulation

Remarks
Self-Direction

Are values
articulated

Org No

clearly

Openness
change

Mentions
under what
they care
and not as
values

Mixed
with
several
other
factors
such
as
integrated
business,
dominant
Indian
leadership
Derived
from the
vision.

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10

11
*
12

N
N

13

Innovat
ion

Innovat
ion and
speed,

Creativ
e
solution
s,
innovati
on

Excellence

Organization
al
pride,
professional
pride,
devoted

Team work,
loyalty

Apolitical,
avoid
conflict

Client
value incl
in ST

Culled out
from
about us

Excellence,
Product
leadership,
customer
focus
Excellence,
enterprising

Ethics,
environment
,
sustainabilit
y,
mutual
respect,
trust,
transparent,
customer
focus.

Entreprene
urship,
passion,

Respect,

Relationship
, nurture the
values and
ethos,
Law abiding,
mutual trust,
respect,
responsible,
mutuality,
safety,
health,
develop
people,
dignity
of

Culled out
from goals

Culled out
from
principles

Trusteeship,
respect for
people,
nation
orientation
Example,
integrity,
transparency
,
fairness,
Client value
Commitment
to
nation,
touching
lives
of
people
People

Defend
business
interest,

Customer
focus incl
in ST

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14

Innovat
ion

Fortitude

15

Innovat
ion,
learning

Entreprene
urial,

16
*

17

18

19
*

20

Innovat
ion,
agility

Excellence,
speed,
product
focus

individual,
consultative,
governance,
socially
responsible,
environment
al,
fair
competition,
integrity.
Not win at
any
cost,
respect,
trust,
environment
, empathy,
integrity
Customer
satisfaction,
empowered,
caring, trust,
Customer
service,
upgrade
employee
skills
Nil

Inclusion,
accountabilit
y, customer,
environment

Culled out
from
vision
Culled
from
objectives.

Not
included in
vision or
mission
either
5

Unable to
trace
vision,
mission or
values
from the
web site
Innovat
ion

Security

Self-belief,
confidence,
passionate

Teamwork,
helping,
listening,
sharing,
caring,
empathy,
culturally
sensitive,
health,

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21

Innovat
ion
(creativ
ity,
learning
,
flexible
,
change)

Pride,
dedication,
commitment

Passion,
(inspiration
,
ownership,
zeal
and
zest)

22

Innovat
ion

Loyalty,
commitment

Excellence

23

Innovat
ion

security

Inspiring

24

25

Entreprene
urship,
growth,
excellence,
Perfection,
speed,
excellence

Innovat
ion

Commitment

Mean
1.2
Note: * indicate inability to trace the data.

4.

.88

1.92

safety,
accountable
Care
(concern,
empathy,
understandin
g,
cooperation,
and
empowerme
nt),
trust
(delivering
promises,
reliability,
dependabilit
y, integrity,
truthfulness,
transparency
).
Integrity, ,
teamwork,
governance,
respect,
Nurturing,
empowering,
healthy,
safety,
environment
Trust,
sustainabilit
y
Safety,
health,
environment
,

Culled out
from TPM
policy and
safety,
health and
Environme
nt policy

4.04

Conclusion

Although almost all companies have espoused values, many of them do not communicate them in an easily
accessible manner. Hence prima facie there is an obstacle to internalizing them. It is easy to solve this problem and
requires negligible resources.

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Organization need both change and conservation and therefore, they should normally have values from both these
themes. Though there could be bias for one against the other, ignoring any one of themes and worse still, both is
inadvisable. 24 percent of the top 25 companies of BT 500 skipping these themes altogether and many others not
balancing them suggest that in general, Indian companies need to do more on this area. The values of the companies
are clearly skewed towards Self-transcendence than Self-enhancement which can hamper the competitive spirit of
companies. Though all of them are doing well (that is why they are in the top of BT 500), the question is whether
they are living upto their potential. Though current generation of young working professionals like to have fun and
entertainment in the work place and several innovative companies like Google and Southwest Airlines vouch by it, it
came as a surprise that no companies in the top of BT 500 included it as a value. Perhaps they are missing some
good opportunity here. Mapping of the organizational values to the value theory indicates that while creating the
values, organization tend to skip the mapping process.

As a result, companies could be missing out on

opportunities.

Prima facie there is reason to investigate the problem in greater depth by including a larger sample and using
more rigorous statistical methods.
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