What role do terminal and instrumental values play in organizational culture?
When you think about Gandhi, Martin Luther King, or even Steve Jobs, they were all successful because of their ideas and values. People didn't follow them, believe in what they said, or even work for them because they were successful. Instead, people followed them because they believed in the same values. Show A value is one of the most important things a person believes and stands for. It's something essential that defines that person. Without their values, people wouldn't be the same. In this explanation, we will have a closer look at values from a personal point of view and in the workplace. Keep on reading to learn more about them. Values DefinitionTo better understand what values are, we need to define them first. A person's values are their code of conduct, behavior, beliefs, and principles they live by. It's important not to mistake someone's values for their beliefs. A value is more than something people care about. A value is a guiding principle that defines a person's actions and behavior. In other words, a person wouldn't be the same if you took away their values. Having values and caring for something is different. For example, if you feel like generosity is one of your core values, you are always trying to be generous, which impacts most of your actions. In that case, not only would you give all the time to charities, but whenever someone asks for help, you always drive the extra mile for them; you would do a bit of extra work every day to help others and be generous towards all. However, remember that you can be generous without necessarily having generosity as your core value. Here are some examples of factors that can affect our values:
Example of ValuesValuegraphics surveyed more than 500.000 people across 152 countries.2 This fascinating study shows what values are important to people according to their country. Here are some examples of values and findings from this survey:
Values CharacteristicsAn individual's values are part of their DNA, and they tend to have the following characteristics:
Values TypesGenerally, we can consider two value types:
Beyond the two value types, we can also define values based on different characteristics. For example, we might consider values such as justice, generosity, and empathy positive because they generally impact people and society positively around us. Some other values, such as tradition, morality, or religion, can be regarded as moral values because they intend a higher standard of thinking and respect for our existence. Values in WorkplaceThe values of an organization are the code of conduct, behavior, beliefs, and principles the organization represents and pursues. What are terminal and instrumental values in organizational behavior?Terminal values are goals that a person wants to achieve in life like wanting to be successful or growth in career. Instrumental values are means to achieve goals. Instrumental values include ambition, honesty, self-sufficiency and courageousness.
Why terminal and instrumental values are important?Instrumental values are useful because they provide acceptable ways of behaving, which allow us to reach our terminal values. Our terminal values define the overarching goals that we hope to achieve in our lifetime; our instrumental values define how we go about reaching these goals.
What are terminal values in an organization?Terminal values are the goals in life that are desirable states of existence. Examples of terminal values include family security, freedom, and equality. Examples of instrumental values include being honest, independent, intellectual, and logical.
What is the importance of terminal values?Terminal value (TV) determines a company's value into perpetuity beyond a set forecast period—usually five years. Analysts use the discounted cash flow model (DCF) to calculate the total value of a business. The forecast period and terminal value are both integral components of DCF.
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