The aftereffect of Organizational Values on Employees

Objective

The purpose of this report is to critically analyse the role organizational values play in influencing the procedure of employee recruitment and retention and exactly how organisational values influence organisations' policies and practices. This data in this report however is secondary as researcher faces monetary and time limitation to conduct an effective research.

Scope

This report will first define values, organisation and organisational values, and go on to go over the sources and origins of organisational values and the influence of organisational values towards organisational practices and policies. Benefits and drawbacks of organisational values will be discussed. Applicable theories will be attracted to discuss relevant recruiting strategies involved in employee retention, future development and motivation to be able to ensure long term benefits to organisation. Lastly this report will demonstrate the huge benefits and need for recruiting retention.

Organisational Values

Definition

An organisation is an artifact, social entity, has structured activities, nominal boundaries which is goal directed (Rollinson, 2008). Values can be explained in few perspectives according to various sources. In ethics, value represents need for physical and abstract objects which is ideal accepted by individual or group. It can be also thought as qualities that are considered worthwhile that represent an individual's highest priorities and deeply held driving forces. P. Chelladurai pointed out that values are often admixture with knowledge, norms and beliefs (P. Chelladurai, 2006). Beliefs can be proven right or wrong by one however, not values. Beliefs may vary by cohort, time, geographical differences but values are universal, true for those who at any time, whenever an individual is. Organisational values are ethical codes that guide behaviour by putting assumptions into practice. It also serves as qualities an organisation appreciates and would require members of the organisation to chase after. Organisational values are ideology of an organisation and practiced by organisation from the employee treatment, technology development, customer or any other external environment interaction. Ken Blanchard and Michael O'Connor used a tale telling solution to demonstrate that organizational values are influenced by personal values to an extremely much extent (Ken Blanchard and Michael O'Connor, 1993). It really is part of the important component that forms organisation's culture and it emanate deep from an organisation's soul.

Source and Origin of Organisational Values

Organisational values are closely associated with human values. It could be perceived as extension of human values, which is often categorized to two: instrumental and terminal value. Positive, honest, integrity, responsible, helping the needful are some examples of values. Assumption can be drawn by referring to Robert P. Marinelli, Arthur E. Dell Orto (1999) and Marieke K. de Mooij (2010) that terminate value relate with goals or desired stage, while instrumental values relate with what needs to be applied to accomplish a terminal value. Example: one's terminal value being to provide good life to family, and instrumental value being to be hardworking and responsible in everything aspects. Organisation values that contradict with human values will leave the members of the organisation uncertain and confused about their roles. Problems that plague the society will be mirrored in the organisation. Values do not come from conscious intentions but rather, from highest expression out of free will (Aubrey Malphurs, 2004). Some organisational values aren't consciously created but are part of fabric of the organisation, as a result of founders' views. Values might be found out and practiced by founders during the early days. Values remain unchanged but evolved over time unnoticeably before organisation decided to encapsulate it in words and lay as fundamental part of the way the organisation thinks.

Some organisational values are manufactured consciously by management team who opt to improve company's performance systematically. Frameworks, methods might be introduced to capture the organizational values to reveal findings (Barton Cunningham 2001).

Values could be produced from organisation's goals. It really is a set of principles that guide an organisation to success and through difficult situations. It isn't to be compromised for short term expediency or profit.

Organizational values are so special which it superseded corporate strategy, technological advantages or market presence to be the power that resides in shaping a successful organisation. Organizational values define the acceptable standards which govern the behaviour of individuals within the organization. Without such values, individuals will pursue behaviours that are in sync with the own individual value systems, which may lead to behaviours that the business doesn't wish to encourage.

Advantages of Organisational Values

Organisational values promote healthy growth of an organisation. According to Maslow's hierarchy of needs, humans have a simple need to associate with something that they can feel proud. Along with the tight association all members have with an organisation, individual's membership is defined and subsequently creates a committed workforce. Organisational values also let members of the organisation stay motivated. The external motivation by managers is less effective than in a routine-based society and work process. Therefore organisational values should be taken into consideration to market intrinsic motivation of the organisation members.

The nature, role, and function of values are considered a central area of the organisational value foundation of a corporate brand. Organisations with good organisational values perceived as social responsible corporate and generally well accepted by public. Brand value increase and for that reason drive good returns from public, in conditions of sales, as well as brand image. Organisation identity is strong and helps differentiate the organisation from competitors. Organisational values are vital for continuity, consistency and credibility in a value-creating process. Organisational values ensure everyone in organisation is working into the same goals in accordance with the same principles and sticking with the same standards. Organisational values foster organisation's morale and protect organisation's reputation. Values are cognitive, affective and provide directions. It drives organization groups towards the common target.

Disadvantages of Organisational Values

Values are essential to study organizational behaviour because values are the foundation of how people behave (Stephen P. Robbins, 2004). Personal values might be contradicted with organisational values although values are usually good in nature. Example some organizations' reward system is dependant on seniority. Individuals who value performance higher than seniority will have a tendency to need to deal with disappointment when they are bounded by reward system based on seniority. Both seniority and performance are good values however in this case people disappoint due to different value hierarchy. When there is certainly contradiction, individual could either place personal values as top priority against organisational values, and vice versa. When individual prioritized personal values, organisations' benefits are at risk to be sacrificed. Individuals might feel depressed as well when organisational values took over personal values.

Individuals might suffer imbalanced life from practicing organisational values, such as 'hardworking' as organisational value and person in the organisation might be asked to practice it and slack in conditions of personal life, which is not a good sign from society harmony perspective.

Organisational values somehow define organisations' goals to certain extent. It might limit organisation's quest for other achievable goals due to principles and standards produced by the defined organisational values.

Organisational values make an organisation harder to change their existing reputation if an organisation made a decision to change public's perception that has long formed. It creates an established organisation's journey to breakthrough existing image, a difficult one.

How Organizational Values Influence Organizational Practices and Processes

Personal values form individuals' attitude and impact an individual's behaviour. Similarly, organisational values also influence how an organisation 'behaves' since it will then determine the destiny of that organisation. Organisation Practices and Processes are then set up, to be followed, serve as guide books to guarantee the organization is pursuing the correct path towards common goals on the day to day execution perspective. These practices and processes served as written controls and guidelines for members of an organisation to perform their daily job in order to attain the common organisational goals. Business processes are group of living documents although there should not be frequent changes but to be reviewed from time to time. Some organizations spend large amount of investment to examine and redesign processes. The look teams tend to be ambitious to design processes that 'work on paper'. Issues arise during the execution phase (Varun Grover, William J. Kettinger, 2002). Situations are more complicated if staffs aren't governed by the organizational values. Policies and practices are as effective as the human that man many subsystems and sub processes.

An organisation can contain the best designed processes but nonetheless cannot be the top notch organization if humans, within the key factor are not behaving how they must be. Other than processes, policies and practices likewise incorporate organisational enablers. An enabler is a technical facility or resource that means it is possible to perform an activity, activity or processes. Organisational values also influence the organizational enablers directly which consequently impact the organisation's policies and practices.

Typical business processes involved in invoice and servicing customers include billing the client, provide after sales service and giving an answer to customer inquiries. If an organisation induce 'trust and personal responsibility to every client's success' as an organizational value and this has been practiced across the organisation including the invoice department, it is almost certain that customers will receive superb customer services and this organisation can expect regular return customers without much of marketing effort. If the invoice department will not practice the organizational value, it is most likely to be the pain point for customers to deal with, and the staffs do not feel their responsibility towards organisation's success.

If an organisation is sales-oriented and take customers as highest priority, the inner policies making would also aligned to support organisation's values. This direction does not only apply to external customers, but will also determine inter-departmental interaction mode. One department becomes another department's internal clients and staffs take cross departmental interaction seriously rather than having bureaucracy attitude.

World famous technology leader, Sony's core values is usually to be leader, not follower. The organisational value has been driving the business to be notable as the 'first' to introduce leading edge electronic devices, recording and storage technologies to market all time. Sony refuse to stay in the position of adopting standards of other manufacturers set. Sony spends million of dollars in the study and Development Department every year to sustain as the first choice in new product introduction. 'Walkman' is a Sony brand trademark at first used for lightweight cassette player. It was invented by Sony's audio tracks division engineer Nobushi Kihara in 1979 and other electronic companies then followed the theory, innovatively. Sony also was the first to launch other electronic products such Compact Disc players, gaming system, Play Station to mention a few.

Organisational Values, Recruitment and Selection

Internal

External

Individual

Personal

Personal values and beliefs

Character

Personal actions and behaviours

Collective

Culture

Group values and beliefs

Social Structures

Group actions and behaviours

Modified Ken Wilber's Four Quadrant Model- Richard Baratt (2006)

As the quadrant model above suggest, personal values extend to group or organisational values at collective level. It's important to select new employees that not merely most suitable to the job, but also to find people that believe the organisational values. Large part of partnership didn't work due to failure of both parties to plainly state and agree mutual expectation in advance. Verplanken and Holland (2002) stated, values influence choice by determining the attractiveness of outcomes relevant to those values. Organisational values, organisation culture, ethics, characteristic of the organisation must be shared by recruiter within recruitment strategy in order to attract the right candidates. This information will become conditions for potential employees during evaluation stage. According to a study done based on Attraction-Selection-Attrition (ASA) model (Schneider, 1995) tend to compare their own personalities and the attributes of an organisation. Attractiveness to the organisation becomes a function of people's implicit judgments of the congruence between themselves and the organisation (Kristof, 1996). If an organisation recruits employees that not appreciate organisational values, the employee will have difficulties adapting to the organisation's culture, the new staff will not be able to perform at the most optimum degree of the person's ability. Eventually the employee lost interest, lost motivation and might eventually impact the social life. The organisation will also have to deal with various human resource issues which can be non productive. Recruiting employees that aren't aligned with organizations values will impact the return of investment and can be avoided by including organisational values as part of human resource recruitment strategy.

One of the main element factors of organisation's success is establishing a reciprocal, balanced level of expectations between your organisation and employees. The initiative to instill and further induce organisational values must continue within an organisation to ensure employee retention. This will be included as part talent management. It is prolonged training and development activity to constantly reiterate the organisational values to employees which in return provide a pool of talents that are loyal to the organisation. Vancouver and Schmitt (1991) compared the impact of member-constituency congruence and supervisor-subordinate congruence and realised that member-constituency congruence has greater positive impact on job attitudes. Coaching and counseling that involve organisational values will retain employees because employees will be motivated and even more willing in which to stay the organisation that share the same missions. Incentives should get to employees that appreciate and apply the organisational values in day to day job as sign of appreciation from management. Personal values determine how a person lives (Rokeach 1979), so that it can be derived that organisational values determine how members in an organisation works, which then form the organisation culture. It's the way the members of organisation work. Conversely, values are equipments that help employees to keep just how an organisation works and it will become each member's mantra and Raison d'etre- reason to live on.

From management of your organisation's perspective, that organisation needs to practice what has been pitched to employees. Organisational values should also play within employee welfare system. Examples if integrity is one of the organisational values, employees are expected to perform their tasks with integrity, vice versa, integrity must be one of the factor of employee welfare system that protect employees from exploitation. Welfare system is fair to the hiring party and the employees.

Benefits of Retention

Human resource management practices emerge constantly from strategic outsourcing non core functions, increase use of information technology, adopting versatility in working environment to mention a few examples. These practices cannot be realised without taking organisational values into consideration. Exemplory case of organisational values is usually to be dedicated to every client's success. Staffs are anticipated to be attentive to clients' requests and sometimes clients might need employees to wait critical meetings after working hours. To become fair, the employee should be provided versatility such as allowed to work from client's office instead of required to report directly into office and lots of time will be wasted on the highway while travelling between own office and clients' location.

Employee success and satisfaction is important indicator of company's success. Retaining employees build a strong knowledge base to the organisation which really helps to ensure daily procedure efficiency. Organisations are stable if employees stay for long time period and this will increase productivity. The expense of unwanted and unavoidable turnover can be significant but management of an organisation would not normally understand the actual turnover cost (Jack J Phillips, Adele O. Connell). Emphasis on organisational values as the tool of retention help organizations to avoid turnover cost which is greater than retention cost. When an employee leaves the organisation, the result is felt by other staffs. Turnover could be a spiral motion that triggers other employees to reconsider staying back at the same organisation. Remaining employees are required to handle the job left by terminated employees which will further intensify the rest of the employees. Customer services will be disrupted as well if the employee who owns good relationship with customers decided to leave the business. Low turnover rate translate to raised employer image because public will perceive that the organisation takes care bout employees, which makes employees to stay back and improve that organisation. It can help build good corporate reputation that generally welcomed by public. An excellent corporate image is a priceless asset that each organisations want to acquire because it means strong brand value and free positive publicity.

Human resource retention strategies help organisations keep the talents to aid organisations' growth. People have a tendency to leave the business and go to competition which is a threat with an organisation that the impact should not be under estimated. Competitors 'growth increase the business risk for an organisation to sustain the current market position and finally an organisation must play the 'catching-up' game which is not really a position an organisation wants to be in. Retention strategies not only support organizations growth but also decelerate competitors' growth rate. Worse scenario can be an organizations training the troops that become competitors' weapons to kill that organisation in exchange.

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