Values-based management

Academy of Management Executive

Volumn 11, Issue 4, 1997, Pages 25-41

  Anderson, Carl ^a  

^a NONE

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EID: 0042080727     PISSN: 10795545     EISSN: None     Source Type: Journal    
DOI: 10.5465/ame.1997.9712024837     Document Type: Article

References (50)

1. Peter Drucker (1994) "The Theory of the Business," Harvard Business Review, September-October, 95-104.
2. Barnard, C. (1939) The Functions of the Executive (Cambridge, MA: Harvard University Press). Barnard strongly emphasized the role of values when he pointed out that effective managers "inspire cooperative personal decisions by creating faith in common understanding, faith in the probability of success, faith in the ultimate satisfaction of personal motives, and faith in the integrity of common purpose." (p. 259).
3. Deal, T.E. and A.A. Kennedy (1982). Corporate Cultures: The Rites and Rituals of Corporate Life (Reading, MA: Addison Wesley);
4. Etzioni, A. (1965) "Organizational Control Structures" in J.G. March (ed.) Handbook of Organizations (Chicago, IL: Rand McNally, pp. 650-677);
5. Parsons, T. (1956). "A Sociological Approach to the Theory of Organizations," Administrative Science Quarterly, 1, pp. 63-85; 225-239.
6. Larue Tone Hosmer (1994) "Strategic Planning as if Ethics Mattered" Strategic Management Journal, Vol. 15, 17-34.
7. This is most evident in family businesses where founders formally write down what they believe in, developing community by uniquely describing economic and moral/philosophical end results. Well known examples include Johnson & Johnson, The Body Shop, Lincoln Electric, and Ben & Jerry's. These founders had a much easier job than a modern professional manager faces since they combined value judgements and business objectives in the same person; the founder has an opportunity no professional manager has to prepare and develop means for the end he or she has in mind. For a recent example see Russell Mitchell and Michael Oneal (1994) "Managing By Values: Is Levi Strauss' Approach Visionary - Or Flaky," Business Week, August 1, pps. 46-52.
8. Dennis P. Quinn and Thomas M. Jones (1995) "An Agent Morality View of Business Policy," Academy of Management Review, Vol. 20, No. 1, 22-42.
9. For a discussion of the universality of individual values see J.M. Burns, Leadership, (New York: Harper and Row, 1978, p. 20). According to his transformational leadership model, leaders choose and then inspire a sense of common purpose based on values deeply held by society.
10. McCoy, C. (1985) Management of Values: The Ethical Difference in Corporate Policy and Performance (Pitman: Marchfield, MA). This book defines the primary task of senior management as setting a clear listing of value priorities when choosing among competing purposes.
11. Nohria, N. and Ghoshal, S. (1994). "Differentiated Fit and Shared Values: Alternatives for Managing Headquarters-Subsidiary Relations," Strategic Management Journal, Vol. 15, 491-502.
12. C.K. Prahalad and Gary Hamel (1990) "The Core Competence of the Corporation," Harvard Business Review, May-June, 79-91;
13. David J. Collis and Cynthia A. Montgomery (1995) "Competing on Resources: Strategy in the1990s," Harvard Business Review, July-August, 118-128.
14. This definition is part of Immanuel Kant's philosophy.
15. Boris Kabanoff, Robert Waldersee, and Marcus Cohen (1995) "Espoused Values and Organizational Change Themes," Academy of Management Journal, Vol. 38, No. 4, 1075-1104.
16. For example, these problems usually present value dilemmas as decisions are framed as choices among competing goals: environment/ pollution, environment/jobs, diversity/ discrimination/affirmative action, wage policies (U.S. vs. overseas), productivity/wages (managers vs. employees), employee testing (polygraphs, drug testing), product safety, and truth in advertising.
17. Ken Auletta (1993), "Opening Up The Times - Restructuring of the NY Times" The New Yorker, June 28, Vol. 69, No. 19, p. 55(16).
18. Bernard Wysocki, Jr. (1995) "Some Companies Cut Costs Too Far, Suffer 'Corporate Anorexia'," The Wall Street Journal, Wednesday, July 5, A1;
19. William McKinley, Carol M. Sanchez, and Allen G. Schick (1995) "Organizational Downsizing: Constraining, Cloning, Learning," Academy of Management Executive, Vol. 9, No. 3, 32-42.
20. L.T. Perry (1986) "Least Cost Alternatives to Layoffs in Declining Industries," Organizational Dynamics, Spring, 48-61;
21. Deborah Dougherty and Edward H. Bowman (1995) "The Effects of Organizational Downsizing on Product Innovation," California Management Review. Summer, Vol. 37, No. 4, 28-44.
22. Gilbert Fuchsberg (1994) "'Visioning' Missions Becomes Its Own Mission," The Wall Street Journal, January 7;
23. Steve Lohr (1993) "For Computer Convention, Be Sure to Pack Vision," The New York Times, September 25;
24. Michael W. Miller and Laurie Hays (1993), "Gerstner's Nonvision for IBM Raises a Management Issue," The Wail Street Journal, Thursday, July 29, p. B1;
25. Douglas Lavin (1993), "Robert Eaton Thinks 'Vision' Is Overrated and He's Not Alone," The Wall Street Journal, Monday, October 4, p. A1.
26. This is certainly true at IBM where Louis Gerstner was widely criticized for a lack of vision in 1993. In 1994, as one of his first corporate wide vision/values moves, he changed IBM's statement of "Basic Beliefs." See Laurie Hays (1994) "Gerstner is Struggling As He Tries to Change Ingrained IBM Culture," The Wall Street Journal Friday, May 13, p. A1.
27. Adam Smith pointed out that free actions by profit seeking individuals benefit society as a whole, but only if the transactions are bounded. For example, cheating, fraud, and theft should be forbidden.
28. Adam Smith's justification for this approach was based on the efficiency of broad markets rather than the welfare of the individual firm; if all firms pursue economic values, then society as a whole benefits.
29. Dennis P. Quinn and Thomas M. Jones (1995), ibid.
30. Federal guidelines for corporate crime now extract a penalty for internal use of the invisible hand.
31. This principle is based on a much deeper philosophy of Kant's. Briefly, it states that decision makers should treat people always as ends in themselves and never as means only. This leads to the definition of an ideal community where every right is respected and every duty is fulfilled. People cannot be exploited, abused, or manipulated in any way since they are equal members of an ideal community (to the extent that they obey the moral law themselves). Every person is owed the same respect that moral law is owed. The role of morality is to coordinate our individual actions by setting limits to them.
32. Roger Scruton (1994) Modern Philosophy (New York: The Penguin Press), p. 282.
33. Paul Shrivastava (1995) "Environmental Technologies and Competitive Advantage," Strategic Management Journal, Vol. 16, 183-200.
34. "Robert Axelrod (1984) The Evolution of Cooperation, New York, Basic Books.
35. Larue Tone Hosmer (1994), The Evolution of Cooperation, ibid.
36. and Dennis P. Quinn and Thomas M. Jones (1995), The Evolution of Cooperation, ibid.
37. N. Craig Smith (1995) "Marketing Strategies for the Ethics Era," Sloan Management Review, Summer, Volume 36, Number 4, 85-97. This article develops a "marketing ethics continuum." At one end is caveat emptor where profit maximization is only subject to legal constraints. At the other end is caveat venditor where consumer interests and satisfaction are favored and producer interests are less favored.
38. Mark A. Huselid (1995) "The Impact of Human Resource Management Practices on Turnover, Productivity, and Corporate Financial Performance," The Academy of Management Journal, Volume 38, Number 3, June 635-672;
39. Jay B. Barney and Edward J. Zajac (Eds.) (1994) "Competitive Organizational Behavior," Strategic Management Journal, Volume 15, Special Issue, Winter;
40. Thomas M. Jones (1995) "Instrumental Stakeholder Theory: A Synthesis of Ethics and Economics," Academy of Management Review, Vol. 20, No. 2, 404-437.
41. Kenneth R. Andrews devoted two chapters to this issue in K.R. Andrews, The Concept of Corporate Strategy, (Homewood, Illinois: Richard D. Irwin, Inc., 1987, Chapters 4 and 5).
42. Ouchi, W.G. (1980) "Markets, Bureaucracies, and Clans," Administrative Science Quarterly, 25, pp. 129-141.
43. Gary Hamel and Airne Heeme (1994) Competence Based Competition (New York: John Wiley & Sons);
44. Alan Farnham (1993) "State Your Values, Hold the Hot Air," Fortune, April 19, p. 21.
45. Charles Handy (1992) "Balancing Corporate Power: A New Federalist Paper," Harvard Business Review, Nov-Dec, 59-72;
46. Christopher A. Bartlett and Sumantra Ghoshal (1993) "Beyond the M-Form: Toward a Managerial Theory of the Firm," Strategic Management Journal, Special Issue, Winter, Vol. 14, 23-46.
47. This has always been a part of the strategic management framework as defined by Barnard, Learned, Christensen, Andrews, and others.
48. George Soros (1995) Soros on Sores: Staying Ahead of the Curve (Wiley).
49. This list does not include three principles commonly cited in texts: (1) Self-interest, taking actions that are in one's own long-term self-interests; (2) Universal standards, taking actions that others take when faced with the same situation (e.g., industry standards); and (3) Government legal requirements, obeying the law. These three principles are usually assumed in most business situations. For a review see Larue Tone Hosmer (1994), Soros on Sores: Staying Ahead of the Curve ibid.
50. The companies cited in this section were selected using the following criteria: (1) Each of these companies realized significant growth or turnaround resulting in industry leadership; (2) Each company had a formal statement of organization values at the time of growth or turnaround; (3) The values statement included a wide variety of values, not just social responsibility or general beneficence; (4) The values statement was used, specifically, as a management tool to improve individual performance and enhance growth; and (5) Top management made a specific connection between the values statement and overall performance.