Introduction to Organizational Behavior

Session 8: Values
Session Objectives

• Understand the concept of values

• Contrast between terminal and instrumental values

• Effect of personality and value in the workplace

• Develop an understanding of international values

Values

• Basic convictions that a specific mode of conduct or end-state of existence is personally or

socially preferable to an opposite or converse mode of conduct or end-state of existence.
o Has a judgmental element.

o Has two attributes:

i. Content: Mode of conduct or end-state of existence is important.

ii. Intensity: Specifies how important is the content.

• Value System
o A hierarchy based on a ranking of an individual’s values in terms of their intensity.
Characteristics of Values

• Many values are established in the early years of our lives.

• Relatively stable and enduring.

 Comes from the absolute, black or white characteristic.

• Values may change, if we question it.

• Values are motivational.

Organization of Values

Values

Terminal Values Instrumental Values

Desirable end-states of existence; Preferable modes of behavior or
the goals a person would like to means of achieving one’s terminal
achieve during his or her lifetime. values.
Why are values important?

• Helps to form the notion of what “ought” or “ought not” to be.

o Contain our interpretations of right or wrong.

o Builds our preference for certain behaviors or outcomes over others.

o Clouds objectivity and rationality.

• Lays the foundation of our understanding of people’s attitudes and motivation and influence our
perception.
Are values same across generational cohorts?

Cohort Dominant Values

Baby Boomers Equal Rights, Work Centrality, Personal Gratification, Organized, Team Oriented

Millennials Achievement Oriented, Sociable, Fun, Tech-savvy, Personalized Feedback,

Multiculturalism

Gen Z Diversity, Pragmatic, Continuous Learning, Work-life Balance, Individual

Expression, Mobility, Environmentally Conscious
Effect of personality and value in the workplace

• Person-Job Fit
o The theory argues that people in jobs congruent with their personality should be more
satisfied and less likely to resign than people in incongruent jobs.

• Person-Organization Fit
o People are attracted to and selected by organizations that match their values, and they leave
organizations that are not compatible with their personalities.
o Example: Microsoft’s Values-
 Respect: We recognize that the thoughts, feelings, and backgrounds of others are as important as our own.
 Integrity: We are honest, ethical, and trustworthy.
 Accountability: We accept full responsibility for our decisions, actions, and results.
Examples

• Apple Core Value:

https://www.youtube.com/watch?v=JHXp1kTZMys&t=150s

• Apple Environment Goal:

https://www.apple.com/in/environment/

• H&M:
https://www.youtube.com/watch?v=tLfNUD0-8ts

• Life inside a Taliban town

https://www.youtube.com/watch?v=MTVfCpLrIrc\
International Values

• Hofstede’s cultural dimensions theory

o Framework used to understand the differences in culture across countries

o Explains the effect of society’s culture on the values of its members.

o Six Dimensions:

1. Power Distance Index

2. Individualism vs. Collectivism

3. Uncertainty Avoidance Index

4. Femininity vs. Masculinity

5. Short-Term vs. Long-Term Orientation

6. Restraint vs. Indulgence

1. Power Distance

• A national culture attribute that describes the extent to which a society accepts that power in
institutions and organizations is distributed unequally.

• High rating on power distance

o Large inequalities on power and wealth exist and are tolerated in the culture.

• Low rating on power distance

o Societies that stress equality and opportunity.
2. Individualism vs. Collectivism

• A national culture attribute that describes the degree to which people prefer to act as individuals
rather than as members of groups.

• Individualism
o Degree to which people prefer to act as individuals rather than as members of groups and believe in individual rights
above all else.

• Collectivism
o Emphasizes a tight social framework in which people expect others in groups of which they are a part of to look after
them and protect them.
3. Uncertainty Avoidance Index

• A national culture attribute that describes the extent to which a society feels threatened by an
uncertain and ambiguous situation and tries to avoid them.
• High on uncertainty avoidance
o People have an increased level of anxiety about uncertainty and ambiguity and use laws and controls to
reduce uncertainty.
• Low on uncertainty avoidance
o People are more accepting of ambiguity, are less rule oriented, take more risks, and more readily accept
change.
4. Feminity vs. Masculinity

• What values are considered more important in a society.

• Feminity
o A national culture attribute that indicates little differentiation between male and female roles

o High feminity rating means the women are treated equals of men in all aspects of the society.

o Femininity, stands for a preference for cooperation, modesty, caring for the weak and quality of life.

• Masculinity
o A national culture attribute that describes the extent to which the culture favors traditional masculine work roles
of achievement, power, and control.
o Does not view men and women as equals.

o Preference in society for achievement, heroism, assertiveness and material rewards for success.
5. Long Term vs. Short Term Orientation

• Measures society devotion to traditional values.

• Long term orientation
o The basic notion about the world is that it is in flux, and preparing for the future is always needed.
o People look to the future, and view adaptation and circumstantial, pragmatic problem-solving as a
necessity. 
o Emphasizes persistence, perseverance, thrift, and long-term growth.
• Short term orientation
o The world is essentially as it was created, so that the past provides a moral compass, and adhering to it
is morally good.
o Places a stronger emphasis on the present than the future.
o Prefer to maintain time-honoured traditions and norms.
6. Restraint vs. Indulgence

• The extent to which people try to control their desires and impulses, based on the way they were
raised.

• Indulgence
o Indulgence stands for a society that allows relatively free gratification of basic and natural human drives
related to enjoying life and having fun.

• Restraint
o A society that suppresses gratification of needs and regulates it by means of strict social norms.
India
Limitations of Hofstede’s Model

• The cultural dimensions assume that all people within a country share the same values.
o There can be a great deal of variation within a culture.​

• Hofstede’s sample was drawn entirely from employees of one company- IBM.

• World has changed a lot over the past ~35 years.