Value Management is a effective technique for increasing employees’ commitment to their firms’ missions. Employees who share corporate values are content with their work, actively engaged in carrying out their responsibilities, and committed to their organisations’ success.
In this regard, it is critical to reimagine human resource value management and leadership approaches of businesses, focusing on people rather than results, in order to manage the contemporary employment market’s complexity, uncertainty, and competition.
Value management in the emergence of new management and human resource management models
Direction by Instructions (DpI) from the early twentieth century and Direction by Objectives (DpO) introduced in 1960 and still in use today appear insufficient in terms of value management. In 1997, under the leadership of S. Garca and D. Dolan, a new paradigm, the Directorate of Values (DpV), was formed, focusing on the person rather than on production (DpI) or processes (DpO), recognising that people are the primary value of businesses.
The underlying premise of this humanistic viewpoint is that although objectives help to translate activities into effective performance, values serve to give such acts meaning.
It is self-evident that if an employee sees a clear meaning in his or her work and believes that the company is the place where his or her wishes, aspirations, and goals can be fulfilled, he or she will feel fulfilled in their work, will be fully engaged in their task, and will utilise their full potential to become enthusiastic about the organization’s strategic goals.
Is it advantageous to invest in Value Management?
Without a doubt. As evidenced by the current Barometer of Employee Engagement in Spain (Tatum and Meta4, 2015), investing in employee engagement is a beneficial business strategy that results in greater sales, improved customer experience, and cost savings.
On the contrary, employee disengagement stops them from actively contributing to the fulfilment of business objectives. Lack of commitment also results in talent flight, increased turnover, and presenteeism. These implications result in a rise in costs, a drop in production, and a decline in organisational efficiency.
Employee involvement and corporate values in Value Management
As a result of the report’s findings in value management, the three levers of employee commitment are as follows: identification with corporate values first, followed by a sense of fulfilment in the performance of job and a sense of challenge or difficulty in accomplishing goals.
Thus, it appears as though the implementation of value management in corporates takes precedence over the set of organisational practises aimed to mobilise employees’ commitment and affective adherence to their company.
What does it mean to “implement corporate values” in a business?
To begin, let us define what Value Management does not imply! Implementing corporate values does not mean arbitrarily deciding which values best represent the organization’s core, nor does it mean dictating to employees which behaviours and actions coincide with those values are desirable for the company.
By contrast, implementing corporate values entails developing them together, clarifying them, and translating them into organisational behaviour and practises that are aligned with the goal of internalising and incorporating them into the ordinary way of working.
Additionally, it is to conduct frequent audits of value management system to verify that they are set definitively and serve as a clear guide for action for the entire organisation. In a nutshell, it is to imbue the entire organisation with a shared way of thinking, feeling, and acting that is accepted and trusted.
The IIC conducts research into the evaluation of value management at workplace
In this regard, the IIC has been conducting research and measuring personal values and organisational values in recent years with the goal of assisting businesses considering or currently implementing a management by values approach. More precisely, they have created an online assessment instrument for personal and organisational values under value management with the following two broad goals:
- Values are quantified on a personal and organisational level by defining the values that are most important to both parties, their nature, and, most importantly, the relationships of adjustment, alignment, and congruence between the individual and the organisation.
- Assess the influence of management by values practises on a personal and organisational level, for example, communication actions. The ultimate goal is to establish a metric that indicates the effectiveness of corporate values implementation, not merely their exposure.
Online tool for evaluating personal and organisational values
From the examination of several theoretical models (Schwartz, 1992; Valderrama, B. 2010; and Garca, S. and Dolan, S. 1997), as well as various instruments and procedures for measuring values, and, most importantly, from a focus on market demands the IIC has developed its own securities evaluation exam in this area, which has the following primary characteristics:
- Administration, correction, and interpretation are all automated.
- Configuration of the test according to the client’s evaluation requirements.
- The test is divided into three general scales for the purpose of measuring various variables: a) A sense of fit and affiliation with the organization’s values; b) A hierarchy of personal and organisational values; and c) Consistency between the values claimed by an individual or organisation and the actual conduct witnessed at work.
- Assessment of 25 universal values that are applicable to any organisational culture and are manifested behaviourally.
- The value system under value management is evaluated in three dimensions in accordance with the nature or ultimate aim that prevails in each. They can be societal values that are personal – emotive, productive – pragmatic, or ethical.
- Individual automated report detailing the amount of achievement for the many indicators measured, as well as the potential impact on one’s style of thinking, feeling, and acting at work.
When and Why Should Values Be Evaluated?
The evaluation by values test was designed to be used in a variety of human resource procedures and for a variety of purposes, including the following:
1. Processes for internal evaluation
The evaluation’s objectives of value management are as follows:
- Participate in the process of defining business values.
- Assess the extent to which business ideals are being implemented (Audit of values).
- Assess the influence of organisational practises on employees (OT).
- Assess employee fit based on position and organisation (P- O fit).
- Values are measured in the organisation through desirable behaviours as a complement to existing performance evaluation metrics.
2. Processes of external selection
The evaluation’s objectives of value management are as follows:
- Utilize behavioural evidence to ascertain the candidate’s values.
- Assess the candidate’s identification with the company’s values in order to determine how this should be adjusted for the future position.