Organizations evolve to meet a need and add worth to itself and also to contribute to the social environment. It exists to accomplish certain goals. The main objective of a business is to make profits and this is achieved while being socially responsible (Malbašić, Rey & Potočan 2015). As we now live in this rapidly volatile, uncertain, complex and ambiguous (VUCA) environment, it is important for an organisation to have some core values which cater as the essence of its existence and support its overall vision (Bennett & Lemoine 2014). People are the brand and backbone of any organisation and subsequently it is essential to hire people with values and keep it in congruence with the organisational values. Having a value model creates a reciprocal behaviour in an individual in that organisation (Creating organizational cultures based on values and performance 2016). Therefore, it is significant to balance individual values with organisational values to ensure its success.
Malbašić, Rey and Potočan noted that there are various concepts and models that show organisational values (OV) are essential for running an organisation successfully. Creating organizational cultures based on values and performance also notes the same and mentions that every organisation should have a high performance value based model. This creates leaders that drive values, which then drives behaviour, behaviour drives culture and culture in turn drives performance. These theory shows that there is a link between OV and individual values and how there is a need for balanced values as it ultimately drives performance.
Organisations are comprised of individuals who possess different kind of personal values and these personal values shapes the values of the organisation. So it is important to follow a value based hiring as said in the Ted Talk. But there is also a need to differentiate personal values from OV as personal values directs decisions and actions towards achieving personal goals, while OV provide norms that specify how organizational members should behave and how resources should be allocated in order to achieve organisational goals (Edwards & Cable 2009). This can create a contradiction in values. Values are also said to have a significant impact on the affective and behavioural response of an individual (Meglino & Ravlin 1998). So value based hiring can only be successful if there is a balance of personal values and OV.
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Competing Value Framework (CVF) Model developed by Quinn and Rohrbaugh (1983), explains about the different values existing in different organisations. This model describes business performance and most importantly organisational culture. The model indicates that organisations with balanced organisational culture tend to be more flexible and adaptive while still being successful. At a macro organisational level, high performing organisations are characterised by an adaptive culture (Kotter & Heskett 1992). Hence, in this VUCA world it is extremely important that the organisation remains flexible. The Ted Talk mentions how past behaviour is predictive of future behaviour and also states that values and culture together makes an organisation successful. This shows that a change in the culture of an organisation is driven by past behaviour of individuals and hence it is necessary to inculcate balanced OV and individual values right from the beginning in order to be successfully and dynamic.
Schwartz’s values model describes ten different motivational types of values which are further represented by 56 specific values. In this model, compatible values are placed next to each other and contradicting values are placed opposite to each other and they are assessed on the basis of the dynamic relation between them. The findings of the study suggest that there is a substantial difference in an individual’s value priorities (Schwartz 1992). As an organisation consists of ‘n’ number of employees who have different value priorities, it is important to balance them and create a shared value system. Value sharing produces a social culture that facilitates necessary interactions for individuals to achieve their common goals which will further result in achieving organisational goals (Meglino & Ravlin 1998). As there is an existence of compatible and contradicting values on the basis of the value structure, actions in pursuit of any value have consequences that conflict with some values but are congruent with others (Schwartz 1992). Since actions of an individual to achieve some personal value can result in a consequence which affects OV, it is understood that even though it is necessary to balance individual and OV, it may not always be possible to do so, as some values constantly remain opposing to each other.
Management by Mission (MBM) model which was proposed by Cardona and Rey (2008), talks about distributing corporate mission to all levels of the company. The bottom line is that OV should be incorporated within the concept of its mission. But the challenge of this model is that the values are more organisationally centred rather than being personal. This means that there exists a degree of mismatch between the balance of personal and OV. This imbalance of values can halter organisational success. Malbašić, Rey & Potočan (2015) suggests a new model which incorporates the CVF model, Schwartz’s values model and MBM model of OV in order to decrease the degree of imbalance between personal and OV. This model is effective as it addresses the inclusion of personal values as well and also the model is more applicable in this contemporary world than the other three models in achieving balance of values.
In this VUCA world there is a need to inculcate values in an individual and also in an organisation. From comparing various value models and the Ted Talk, it is clear that there is a relationship between organisational success and values. It is understood that an organisation achieves success by striking a balance between organisational values and personal values. This balance also helps the organisation be adaptive and flexible in this dynamic environment. It should also be taken into consideration that personal and organisational values cannot always be balanced. The personal values of an individual may differ from and contradict with the organisational values and this in turn may affect organisational success. In this circumstance it might prove hard to balance these values. In order to reduce the degree of imbalance, value based hiring can be followed and while hiring, organisational values should be effectively communicated with prospective employees to ensure that there is value congruence. People are the most valuable asset of any organisation and therefore it is essential that personal values are given as much as importance as organisational values. The balance and achievement of both personal and organisational values will undoubtedly ensure the success of any organisation.
