Ans. The word ‘Value’ is derived from a French word, ‘Valoir’ which means the worth, merit, usefulness or importance of a thing. Value concept is more relative than absolute. A value is a belief on which a man acts by preference. A value is a prescriptive belief. The individual attitudes are based on the personal value system of the decision maker. Thus, values are a prescriptive belief which depict what is good and what is bad. Value shapes beliefs which determine behaviour and personality of an individual. Value shapes beliefs, perceptions, attitudes behaviour and personality.
Value Based Management: it can be defined as judgment and guided actions which are based on individual’s beliefs or convictions. They represent what an individual or group considers proper or right. Every organisation has its own beliefs and convictions. To a great extent, business values reflect the values of society in which a business firm operates. A manager’s values determine the managerial functions he performs. A manager’s value system plays a significant role in the performance appraisal of his subordinates. The job of planning, organizing and controlling the behaviour of employees should be compatible with managerial values. The sources of values in all societies have been the wisdom of its thinkers and leaders. There exists a remarkable degree of agreement about values like:
Value based management can be promoted by the following factors:
(1) Environmental Factors : These factors like natural environment, culture, friend circle and educational institution help in formation of values.
(ii) influence of Superiors : Parents, elders, teachers, religious leaders etc., helps in value formation.
(iii) Media: Newspapers, journals, magazines, film and radio play a vital role in value formation.
Source : A significant portion of our value is genetically determined.
Need for Value based Management: Human harmony and happiness are the main objectives of any enterprise in order to justify its survival and progress. Phenomenal material progress is achieved but we are far away from achieving any target of human happiness.
Let us mention two examples to prove that value based management is essential and there is no other choice.
(1) Exploitation of Nature: Service and technology brought about phenomenal industrialization at the cost of indiscriminate and ruthless exploitation of nature. It was wrongly assumed that man has a birth right to draw on resources supplied by the nature at his will. Under the holistic approach, man and nature are deeply interconnected and interdependent. Therefore, there is no such right to exploit nature for purely selfish motives.
If exploitation of one person by another is now considered unethical, we cannot justify exploitation of earth merely to satisfy greed and not need. Value based management alone can prevent this exploitation of earth.
(2) Man Machine Equation: In the 19th century, man was regarded as a cog in the machine, as a commodity to be bought and sold, to be used and discarded. Behavioural scientists considered man as human being as the world received increasing attention for human welfare and satisfaction. Noman is recognized as divine being in the grab of human form and he has huge potential energy to achieve excellence in his actions. Value based management will recognize the divine model of man and will alter the old man-machine equation. Man would be considered as master and not a slave of machine.
Relevance of Value Based Management in Global Change: The change is inevitable, whether we like it or not, but changes are always there. Globally everything is changing fastly in this fast moving era. There is a growing concern for deteriorating values as it threatens the stability of society. It has become clear in recent years that management mst work to develop organisational values. They help us to distinguish between the short term and the long term changes in the society, the right or the wrong in actions.
Skills related to leadership, negotiation, counselling, communication, public relation, team building etc. will not serve their purpose well unless they flow from a value based pure mind.
Management by values highlights the following points:
(i) Managerial decision making requires an inter-play of both analytic and holistic facilities.
(ii) The key to cooperation and team work that the same soul dwells in all and we should respect each other.