TYPES OF VALUE AND ITS FORMATION

ORGANIZATIONAL BEHAVIOUR
The final project submitted on complete fulfillment of the course, organizational behaviour,
during the academic session 2019-2020, Semester-3.

Submitted by

Name: Madhavi Bohra

Roll No.:2023

Class: BBA LL.B. (H)

Submitted to

Ms. Kirti

Faculty of law of contract

September, 2019

CHANAKYA NATIONAL LAW UNIVERSITY, NYAYA NAGAR, MITHAPUR,

PATNA- 800001.

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 ACKNOWLEDGEMENT

I would like to thank my faculty Ms. Kirti whose assignment of such a relevant
topic made me work towards knowing the subject with a greater interest and
enthusiasm and moreover he guided me throughout the project.

I owe the present accomplishment of my project to my friends, who helped me

immensely with sources of research materials throughout the project and without
whom I couldn’t have completed it in the present way.

I would also like to extend my gratitude to my parents and all those unseen hands
who helped me out at every stage of my project.

THANK YOU!
NAME-Madhavi Bohra
ROLL NO- 2023
3rd Semester (bba.llb)

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 DECLARATION

I hereby declare that the work reported in this project report entitled “types of value and its
formation” submitted at Chanakya National Law University, Patna is an outcome of my work
carried out under the supervision of Ms. Kirti. I have duly acknowledged all the sources from
which the ideas and extracts have been taken. To the best of my understanding, the project is
free from any plagiarism issue.
Madhavi Bohra
DATE- 11-09-2019

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Table of Contents
1 Introduction meaning and definition of values- ............................................................................. 5
2 Types of values- .............................................................................................................................. 9
2.1 Allport and associates- ............................................................................................................ 9
2.2 Rukeach Value Survey ........................................................................................................... 10
2.3 Schwartz theory of basic values ............................................................................................ 11
3 Importance of values in an organisation- ..................................................................................... 12
4 Functions and characteristics of values in organization ............................................................... 13
5 Effect of Values at work and organizational culture- ................................................................... 14
6 Conclusion-.................................................................................................................................... 15
6.1 Suggestions- .......................................................................................................................... 15
6.2 Hypothesis conclusion- ......................................................................................................... 15
7 Bibliography- ................................................................................................................................. 16

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1 Introduction meaning and definition of values-
Another source of individual differences is value. Values exist at a deeper level than attitudes
and are more general and basic in nature. We use them to evaluate our own behaviour and that
of others. Value is an enduring belief that a specific mode of conducts or end state of existence
is personally and socially preferable to the alternative modes of conduct or end states of
existence. Once it is internalised it becomes consciously or unconsciously, a standard or
criterion for guiding action, for developing and maintaining attitudes toward relevant objects
and situation, for justifying one's own and others' actions and attitudes for morally judging one
self and others and for comparing one self with others. Value, therefore, is a standard or
yardstick to guide actions, attitudes, evaluations and justifications of the self and others. Values
are very important to the study of the organisational behaviour, silent force affecting human
because values have an important influence on the attitudes, perceptions, and needs and
motives of the people at work. Values are the basis of human personality and are a very
powerful but silent force affecting human behaviour. Values are so much embedded in the
personalities of the people that they can be inferred from people’s behaviour and their attitudes.
Effective managers have to understand the values underlying the behaviour of the employees,
because only then they will realize why the people behave in strange and different ways
sometimes.

A value system is viewed as a relatively permanent perceptual frame work which influences
the nature of an individual’s behaviour. The values are the attributes possessed by an individual
and thought desirable. Values are similar to attitudes but are more permanent and well built in
nature. A value may be defined as a “concept of the desirable, an internalized criterion or
standard of evaluation a person possesses. Such concepts and standards are relatively few and
determine or guide an individual’s evaluations of the many objects encountered in everyday
life.”

According to Milton Rokeach, a noted psychologist “Values are global beliefs that guide
actions and judgments across a variety of situations.” Values represent basic convictions that a
specific mode of conduct (or end state of existence) is personality or socially preferable to an
opposite mode of conduct (or end state of existence)”.

Ronald D White and David A Bednar have defined value as a "concept of the desirable, an
internalised criterion or standard of evaluation a person possesses. Such concepts and standards

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are relatively few and determine or guide an individual's evaluations of the many objects
encountered in everyday life".

Values are tinged with moral flavour, involving an individual's judgement of what is right,
good or desirable. Thus values:

• Provide standards of competence and morality.

• Are fewer in number than attitudes.
• Transcend specific objects, situations or persons.
• Are relatively permanent and resistant to change.
• Are more central to the core of a person.

Individuals learn values as they grow and mature. They may change over the life span of an
individual develops a sense of self. Cultures, societies, and organizations shape values.

Values are important to the study of organizational behaviour because they lay the foundation
for the understanding of attitudes and motivation and because they influence our perceptions.
Individuals enter an organization with preconceived notions of what "ought" and what "ought
not' to be. For example, If Jeevan enters IG Ferns and Curtains with a view that salary on piece-
rate system is right and on time-rate basis is wrong. He is likely to be disappointed if the
company allocates salary on time-rate basis. His disappointment is likely to breed his job
dissatisfaction. This will, in turn, adversely affect his performance, his attitude and in turn,
behaviour would be different if his values are aligned with the company's reward/ pay policy.

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RESEARCH METHODOLOGY:

This project would follow doctrinal methodology. Descriptive and analytical research
methodology will be followed by researcher in this project. Primary and secondary sources
have been helpful in gathering relevant information regarding project. Secondary sources like
books and articles which are available online have been used. Books suggested by faculty have
also been referred to have a detailed idea about subject matter and to give a firm structure to
project. Footnotes have also been given to acknowledge wherever necessary.

Method of Writing:

The method of writing followed in the course of this research project is primarily analytical.

Mode of Citation:

The researchers have followed a uniform mode of citation throughout the course of this
project.

LIMITATIONS OF THE STUDY:

The researcher has territorial, monetary and time limitations in completing the project.

Aims and objectives:

• The researcher’s prime aim is to present a detailed study “importance and formation
of value in an organisation through articles, affirmations, research studies and
suggestions.
• The researcher aims to descriptively provide how the value affect individual as well as
any organisation.
• The main goal of this research is to understand the how the values are helpful in success
of an organization

Research questions:

• How many types of values?

• What is importance of values in organisation?
• How the formation of values affects the behaviour of workforce?

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Hypothesis:

• Values affect the individual’s behaviour, perception which ultimately affect the
operation of organization.
• Values are very important for success of an organization and manager tries to analyse
the behaviour of every employee to maintain the organization.

SOURCES OF DATA:

The researcher will be relying on both primary and secondary sources to complete the project.

PRIMARY SOURCES

• Survey

SECONDARY SOURCES:

1. Websites and Blogs.

2. Newspapers.
3. Magazines.
4. Books and research paper
5. Essay.

Literature review-

• Milton Rokeach, (Book- Understanding human values, Simon and Schuster, 2008.)

Values refer to what is desirable and worthy, both socially and personally. Values are stabilized
beliefs about personally or socially acceptable behaviour or end states of conduct.

• Mark Schwartz, (Book- The art of business value, 1st Edition- April, 1997.)

Individuals who are considered to be a part of the culture are encouraged to maintain these
cultural values and established beliefs because they justify behaviours that support the goals of
the group.

• Kluckhohn, 1951; Rokeach, 1973; Schwartz, 1994 ( Article- definition and types of
value.)

Personal values are desirable, trans-situational goals that serve as guiding principles in peoples’
lives.

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2 Types of values-
Values are categorised in many ways according to different philosophers. Value is important
in the study of science of human behaviour. Value will dictate attitude and human behaviour
in the organization. Organization culture plays a dominant role in the productivity of the
organization1 Culture is formed by value system practiced by all employees. If promotion is
related to the performance, the workers would put in the hard work. On the contrary if
promotion is based on seniority the efficiency of the individual will be drastically reduced.
Value and culture therefore plays a decisive role in motivation and employee productivity.

2.1 Allport and associates-

described six types of values. These are discussed briefly as follows:

a) Theoretical value: Theoretical value is related to importance and discovery of truth

through rational approach. If all the employees practice truth in true sense, the
organization would operate itself and there won’t be any need for supervision. Truth is
such a powerful value that the British Empire had to leave Indian soil.
b) Economic value: It emphasises usefulness and practicability of resources, efforts put
in by individuals and the consequent value derived there from. If the project is
economically viable (in a very large sense) then it can be undertaken. Economic value
is appreciated from a very broad sense and it spells apart from economics of the issue.
It also adds human value to it when it is considered. It is the human aspect, which
makes economic value enlarged.
c) Aesthetic value: It is form of Harmony. We believe that all work must be done in a
smooth manner and that there is mutual understanding and sense of participation
among all human elements. Aesthetic value is displayed by cordial relations between
various levels of organization, effective communication, conflict free atmosphere and
very congenial work environment. The work in organizations, which has aesthetic
value system among workers, is done in harmony, peace and participation of one and
all.
d) Social value: Is related to love of people, sense of belonging and an attitude of ‘we’
feeling. Such value is very important in the organization that brings together the
employees which are bound by a sense of participation that leads to high level of
motivation and high productivity.

1
M.Rokeach “The Nature of Human Value” New York” Free Press, 1973, p.5.

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 e) Political value: It refers to power and influence in the organization. Right people must
be placed at the right positions so that they are able to influence the people
f) Religious value: As name suggest it is related to display of value which would bring
unity and understanding amongst the people in the organization based on common
religious platform. This value is no more is being preached in organization as cross
section of people are now working in organization world over. However, the positive
impact on work environment in the organizations cannot be underestimated based on
religious value.

2.2 Rukeach Value Survey

Social psychologist Milton Rokeach created the Rokeach Value Survey. Milton
Rokeach is a pioneer in studying human values. His research is known as the Rokeach
value survey (RVS). The survey operationalises values as end states and modes of
conduct, and the survey can be used to infer individual values. Rokeach claimed that
individuals only possess a relatively small number of values. Moreover, that all people
possess the same values but the degree and importance of them varies. Rokeach´s
individual values system instrument requires that the participant rank orders a list of
values in terms of importance to his or her life. The survey is commonly used by
psychologists, sociologists and marketing professionals.2
The survey is based on the division of values into two sets: terminal and instrumental
values. Terminal values refer to desirable end states of existence. Terminal values are
the goals that people can work towards and what they would like to achieve.
Instrumental values represent the means of achieving terminal values. Instrumental
values refer to preferable modes of behaviour and comprise of personal characteristics
and character traits. They indicate the behavioural choices an individual adopts in order
to reach his or her life aim, the terminal values.3
Terminal value Instrumental value
World of peace honesty
Happiness Independent
Prosperous life Freedom
Equality

2
(Koivula 2008.)
3
(Karve 2011.)

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 Peace Loving
National security Polite
Freedom Obedient
Salvation Self-controlled
Social recognition Ambitious
Wisdom Clean
Mature love Responsible
Self- respect Logical
Friendship Capable
Inner harmony Cheerful
Self- accomplishment Forgiving
World beauty Hardworking

2.3 Schwartz theory of basic values

Social psychologist and cross-cultural researcher Shalom H. Schwartz developed a
theory of basic human values. The theory identifies the following basic motivationally distinct
values. Schwartz elaborates on these values and spells out the features that are
common to all values and what distinguishes one value from another. The values are
recognized as shared across cultures. The theory specifies the dynamics of conflicts
and coherence among these values and their priority. 4
In his value theory Schwartz defines six main features of values:
1. Values are beliefs
2. Values refer to desirable goals
3. Values transcend specific actions and situations
4. Values serve as standards or criteria
5. Values are ordered by importance relative to one another
6. The relative importance of multiple values guides action
These features apply to all values. However what distinguishes values from one another is the
type of goal or motivation that the value expresses.5

4
(Schwartz 2012.)
5
(Schwartz 2012.)

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3 Importance of values in an organisation-
The importance of organizational values for organizations is shown even strongly now in the
time of economic uncertainty then even before. Organizations use organizational values to
inspire their employees as well as their customers. Organizational values are often discussed
to be a powerful marketing tool, since clear organizational values are positively noted and they
encourage potential buyers to buy or use company’s product. It has been established by several
authors that organizational values influence organizational structure organizational culture
organizational identity 6organizational strategy (Bansal, 2003) thus shaping organizational
goals and means to achieve those goals.

The importance of organizational values is even more stressed by 7philosopher when he says
that organization is just like a human; it makes decisions, does what it thinks its right, has legal
limitations on what it can do, has moral limitations, cerates and implements its own rules and
beliefs, it advances on the basis of its decisions, creates myths, legends and habits and so on.
We can say that organizational values are integrated into personality of a company thus playing
a similar role as values do in lives of individuals; directing behavioural patterns, influencing
relationships within the organization and influencing how company perceives its customers,
suppliers and competition. When discussing the importance of organizational values for
organization it is also important to present how these organizational values influence employee
performances. Several authors have discussed this phenomenon; 8have made a research on
personal and organizational values among employees of organizations that specialize in
alternative energy sources (solar electricity, wind electricity, smaller hydro-electrical plants,
etc.), they have determined, that those organizations that focus their selection procedure on
matching personal values with organizational values tend to be significantly more successful
in their work because of the fact that employees have a higher level of job satisfaction. Some
later studies in the similar conducted by 9have even determined that some individuals even
perceive the importance of a good match between organizational and personal values to be
more important then the income they get. This clearly shows that people have started to value
more how they feel in the organization then how much they get paid for the work they do.

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(Ashforth & Mael, 1989),
7
Musek Lešnik (2006)
8
Berkhout and Rowlands (2007)
9
Kaye and Jordan-Evans (2009).

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4 Functions and characteristics of values in organization
Values play an important role in the integration and fulfilment of man’s basic impulses and
desires in a stable and consistent manner appropriate for his living.

• values are generic experiences in social action made up of both individual and social
responses and attitudes. and build up societies, integrate social relations. values mould
the ideal dimensions of personality and range and depth of culture. values influence
people’s behaviour and serve as criteria for evaluating the actions of others. They have
a great role to play in the conduct of social life. They help in creating norms to guide
day-to-day behaviour. Values may be specific, such as honouring one’s parents or
owning a home or they may be more general, such as health, love and democracy.
“Truth prevails”, “love the neighbour as yourself, “learning is good as ends itself are a
few examples of general values. Individual achievement, individual happiness and
materialism are major values of modern industrial society.

• Value systems can be different from culture to culture. One may value aggressiveness
and deplores passivity, another the reverse, and a third gives little attention to this
dimension altogether, emphasising instead the virtue of sobriety over emotionality,
which may be quite unimportant in either of the other cultures. This point has very aptly
been explored and explained by Florence Kluchkhon (1949) in her studies of five small
communities (tribes) of the American south-west. One society may value individual
achievement (as in USA), another may emphasise family unity and kin support (as in
India). The values of hard work and individual achievement are often associated with
industrial capitalist societies.

• The values of a culture may change, but most remain stable during one person’s
lifetime. Socially shared, intensely felt values are a fundamental part of our lives.
Values are often emotionally charged because they stand for things we believe to be
worth defending. Often, this characteristic of values brings conflict between different
communities or societies or sometimes between different persons.

• Most of our basic values are learnt early in life from family, friends, neighbourhood,
school, the mass print and visual media and other sources within society. These values
become part of our personalities. They are generally shared and reinforced by those
with whom we interact.

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5 Effect of Values at work and organizational culture-
How people do their jobs, how they relate to bosses and subordinates and how they spent their
time at work are all influenced by the culturally derived values. For example there have been
studies that have revealed a link between national culture and management behaviour.
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philosophers reviewed around four hundred studies and determined that a country´s cultural-
level values orientation will determine the optimum leadership/management profile for that
nation.11 12
Researcher showed with his research that organizations develop organizational
cultures that reflect a nation’s values and practices. 13
philosopher established a three-level
model of organizational culture that consists of values, artifacts and assumptions. Artifacts are
visible organizational structures and processes. They include everything from a dress code to
annual reports. Values are espoused beliefs that are shared and govern the attitudes and
behaviour of employees, for example strategies, goals and philosophies. At the bottom there
are assumptions. They are taken-for-granted beliefs about human nature and organizational
environments. Schein points out that these assumptions often start out as values. Then over
time they become taken-for-granted concepts. Many of these assumptions operate on an
unconscious level and therefore perceptions, thought processes, feelings and behaviour of
members of the organization are based on them.14 So even though organizational culture
sometimes adapts, depending on the geographies the company operates in, and although
managers may be taught about the cultural differences, assumptions and expectations of how
people should do their jobs may be based on the company’s native value sets and might be
transferred to managerial styles and communication outside of the home nation unconsciously.
It is beneficial to be aware of these underlying assumptions and values and to understand how
they might affect the co-operation between two cultures.

10 Triandis (1994).
11 (Maude 2011, 38-40).
12 Hofstede (2005).
13 Schein (1990).
14 (Maude 2011, 44.)

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6 Conclusion-
individual personality characteristics including values, beliefs, and traits. Values are
fundamental and enduring aspects of both people and organizations. Because values are
common to both organizational culture and individual personality. individual behaviour is
based on value system and attitude he possesses. Value is the strongest element of human
personality and therefore it shapes human behaviour. Value is a permanent phenomenon while
attitude is comparatively less stable and can be changed. Value are belief—what is desirable
and good. Values are end state of existence. It is a faith in certain ethical aspects. It has content
and conviction element inbuilt in it. In social environment, there exist a value system. Values
are permanent in nature. They form organizational culture that has impact on higher
productivity and growth of the organization. The study revealed that organizations with
organizational values that are communicated constantly to the employees and are modelled in
their work behaviours have a positive effect on employee performance. organisational values
play a critical role in the success of an organisation. This is further supported by Fitzgerald
(2004) who stated that companies which adhere to core organisational values improve their
performance when the values are shared with their employees.

6.1 Suggestions-
There is also need to ensure that organizational values are communicated constantly to all
employees and adhered to by all so as to govern the behaviours of all individuals in the
organization and recognize employees' skills and abilities and encourage them to develop
efficient ways to do their work. The organization should design an effective team formation
process to enhance teamwork and constantly reward team performance. This should involve
employees in the decision-making process so as to allow effective implementation of the
decision.

6.2 Hypothesis conclusion-

The 1st hypothesis is proved since every individual have different values and they perceive
them in different manner. Therefore, it is mandatory on the part of organisation to recognise
and communicate with their employees in order to get success.

The 2nd hypothesis is also proved that values are very important for every organisation as well
as for every individual and therefore, affects the organisation in negative and positive way. It
is on organisation’s manager to cope up with these different values and prevent the negative
values and enjoy the positive one.

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7 Bibliography-
Books-
• Milton Rokeach- Understanding Human Values, Simon and Schuster, 2008, (ISSN NUMBER-
1439118884, 9781439118887).
• Mark Schwartz – the art of business value, Simon and Schuster, 2016.

Article-
• The importance of organizational values for organization by Mitja Gorenak, Suzana
Košir.
• Kaye, B., & Jordan-Evans, S. (2009). Find Their Calling: The Importance of Values.
Retrieved from: http://www.keepem.com/doc_files/FC121306.pdf
• Nyaribo Lilian Otwori, Dr. Dennis Juma- ISSN (Online): 2319-7064
https://pdfs.semanticscholar.org/beb8/f835949a90850d111942c5f5521463387449.pdf
• Kabanoff, B., Waldersee, R., & Cohen, M. (1995). Espoused values and organizational
change themes. Academy of Management Journal, 38(4): 1075-1104.

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