Value Based Managememt:: Shared Organizational Values

VALUE BASED MANAGEMEMT:
Value based management is a n approach to managing in which managers are guided

by the organization’s shared values in their management practices. An organization’s values reflect what
it stands for and what it believes in. The shared organizational values from the organization’s culture
and serve many purposes.
PURPOSES OF SHARED VALUES:

There are four purposes of shared values. They are:
 Guide Managers Decisions & Actions.

 Shape Employee Behavior.
 Influence Marketing efforts.
 Build Team Spirit.
SHARED ORGANIZATIONAL VALUES
GUIDE MANAGERS SHAPE INFLUENCE BUILD TEAM

ACTIONS &
EMPLOYEE MARKETING SPIRIT
DECISIONS
BEHAVIOR EFFORTS
We have gone through the credo of JOHNSON & JOHNSON and we would analyze that whether
the credo penned by R.W.JOHNSON lies under the above mentioned categories.
GUIDE MANAGERS DECISIONS & ACTIONS
Manager’s decisions and actions are dependent on various axioms. Those axioms must be
overlooked again and again while taking decision and acting on it.. They know the importance of each
and everything like in Johnson and Johnson’s credo it has been mentioned that “there must be an
opportunity for Advancement “. Now that shows the value of opportunity to the employees. If
employees would not be given the opportunity there would be no advancement in the company or
organization. Similarly it has been also mentioned in the credo that “each person must be considered an
individual”. This statement expresses that the value an individual that he/she is playing an important
role in that particular organization.
SHAPE EMPLOYEE BEHAVIOR

Shape employee behavior means that while on the job the employee must know what to do?
How to do? What is our priority mission? Etc. Another purpose of shared value is to shape employee
behavior and communicate what the organization expects of its members. In the Johnson and Johnson
credo following points has been observed which would be kept in mind by the employees when they are
on the field:
 How to make products?

When making the products the employee should think of cutting the corner but then he
would recall the motive of the organization mentioned in the credo that is OUR
PRODUCTS MUST ALWAYS BE OF THE HIGHEST QUALITY.
 Should we continue our routine life cycle?
The employees might keep on moving their life wheels as a daily routine life cycle. But
while doing that they’ll recall that purchasing power of the people is not so strong and
according to the credo we should CONSTANTLY STRIVE TO REDUCE COST OF THE
PRODUCTS.
 How to negotiate with dealers?
Apart from our own wages and making profits for our own organization should we think
of somebody else than the statement OUR DEALERS ALSO MUST HAVE A FAIR PROFIT
would come to their minds.
INFLUENCE MARKETING EFFORTS
Shared corporate values also influence marketing efforts. As if AVON would not have created
awareness about cancer it sales would not have shoot up. Similarly in the credo of Johnson & Johnson
they have also marked few statements for their future marketing and shown them as they are also
SOCIALLY RESPONSIBLE enough as well. They stated OUR FOURTH RESPONSIBILTY IS TO THE
COMMUNITIES IN WHICH WE LIVE. WE MUST BE A GOOD CITIZEN AND WOULD SUPPORT GOOD
WORK AND CHARITY AND BEAR OUR FAIR SHARE OF TAXES. WE MUST PARTICIAPTE IN PROMOTION
OF CIVIC IMPROVEMENT, HEALTH, EDUCATION AND GOOD GOVERNMENT AND ACQUAINT THE
COMMUNITY WITH OUR ACTIVITIES. Now that shows the social responsibility at the end for their own
marketing purpose so more people would be diverted to them thinking that they are fulfilling their
responsibilities towards the society and they keep on thinking for the betterment of the society. They are
playing their role for the greening of the management and even using an activist approach.
BUILD TEAM SPIRIT

Finally, shared values are a way to build team spirit in organizations. When employees embrace
the stated corporate values, they develop a deeper personal commitment to their work and feel obliged
to take responsibility for their actions. Because the shared values influence the way work is done,
employees are more enthused about working together as a ream to support the values they believe in.
Similarly in the credo the management is promising their employees that they must have a sense of
security in their jobs , wages must be fair and adequate, management would do justice, hours would be
reasonable and working conditions clean and orderly. EMPLOYEES SHOULD HAVE AN ORGANIZED
SYSTEM FOR SUGGESTIONS AND COMPLAINTS and department heads must be fair-minded. Now that
means no employee would going to think about injustice in the working hours, in the wages. They would
consider them as an important part of this organization because suggestions and complaints are
welcomed openly. Through this procedure they can attain a shared common vision and they are:
 Business must make a sound profit

 Reserves must be created
 Research must carry on
 New machines purchased
 New plants built
 New products launched
 New sales plans developed
An organization can achieve these goals only when employees are ready to work as teams
because this is not possible involving one person only. The shared corporate values not only
guide the way they work, but they also serve to unite them in common quest.

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VALUE BASED MANAGEMEMT:

Value based management is a n approach to managing in which managers are guided

PURPOSES OF SHARED VALUES:

 Guide Managers Decisions & Actions.

SHARED ORGANIZATIONAL VALUES

GUIDE MANAGERS SHAPE INFLUENCE BUILD TEAM

SHAPE EMPLOYEE BEHAVIOR

 How to make products?

BUILD TEAM SPIRIT

 Business must make a sound profit

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