VALUE BASED

MANAGEMENT
UNIT -II
VALUE BASED MANAGEMENT
the management philosophy and approach that
enables and supports maximum value creation in
organizations, typically the maximization of
shareholder value.
VBM encompasses the processes for creating,
managing, and measuring value.
Elements of VBM
Creating Value(Ways to increase or generate
maximum future value)
Managing for Value (Governance, change
management, organizational culture, communication,
leadership)
Measuring Value (Valuation of economic (Shareholder
Value) or can also aim at other constituents directly
(Stakeholder Value).
RELEVANCE OF VBM
Managerial effectiveness based on value based
management can solve problems and offers human welfare,
nature welfare, the quality of life and quality of work.
Selfless action purifies our mind/intellect.
Purer mind concentrate, contemplate and mediate to
approach divinity or perfection, i.e., pure consciousness.
 Self surrender to the god and emotionally we can reach the
goal of pure consciousness.
VBM provide proper use of valuable human and material
resources offered by the mother earth.
RELEVANCE OF VBM
It promotes work culture, self discipline and
consciousness among the employees.
It helps in bringing the human harmony and
happiness in the organization.
It cares for its people and protect them from unwanted
stresses and strains, unrest, loneliness and adverse
organizational work life.
VBM helps in reducing conflicts and disputes.
This enhances reputation and goodwill of the
organization.
Values for Indian Managers
Integrity
Willingness to take risk.
Optimism and enthusiasm.
Commitment to growth.
Vision
Pragmatism.
Responsibility
Hard work and conscientiouness
Values for Indian Managers
Self confidence
Emotional intelligence
Expertise in Industry.
Ability to engage others.
Trans-Cultural Human Values
The word ‘value’ means the worth, merit, usefulness
or importance of a thing. Everyone does not hold the
same values. 
Culture refers to a shared general beliefs and values
that defines what is right and what is wrong and what
is good and what is had. 
The values which are same across the different
cultures in the whole world are called Trans-cultural
Human Values. 
Trans-Cultural Human Values
Unbiased personality.
Loyalty towards workers
Cooperation
Open minded and transparency in dealing
Clear objective
Self-discipline
Managing Interpersonal role
Socially responsible
Inspiration to give
Relevance of Trans cultural values
Helps to generate credibility among stakeholders.
It corresponds to basic human value.
Helpful in decision making.
Helps in profit earning.
Develop Management credibility with employees.
Clarify objective.
Self discipline :
Secular v/s Spiritual Values
Secularism is the doctrine that morality should be
based solely with regard to the well-being of mankind
in the present life to the exclusion of all considerations
drowns from belief in God.
Spiritual means religious one or the people who
believe in religion. They behave that work and religion
are two side of a coin. Spiritual values are important
source of information.
Secular Values
Emphasis on material and cultural improvement of
human beings.
Primary Profit Oriented.
No responsibility towards Society.
Professionalism.
Under management by secularism
Workers are demoralised
Labour management conflict.
Human welfare neglected.
Soul is lost
Spiritual Values
Divine Qualities.
Work is Worship.
Control over Mind/Self Disciplined.
Belief in Religion.
QUERIES