Definition of Value
 Henderson and Thomson (2003) defined values as
sum of our preferences and priorities.
 Preferences are what we like to have in our life and
priorities indicate how important each preference
is in relation to another
 All organizations have a set of value by which it
operates
 Value is the basic conviction and notions about
what is right and wrong or what is more and less
desirable.
Definition of Value
 Since it transcends the boundaries of nations,
culture, generations etc, we can sum it up as
important and enduring beliefs’ or ideals shared by
the members of a culture whether national, local or
organizational about what is good or desirable and
what is not
 Values influence the behavior of an individual and
it serves as a broad guideline in all situations.
National Culture & Values
 Every nation has a culture and these impacts the
values also.
 One of the most popular studies in national culture
and value is done by Geert Hofstede who identified
certain types of national cultures and its
dimensions in terms of values.
 These dimensions are as follows:
1. Power Distance
National Culture & Values
1. POWER DISTANCE
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This refers to what extent a
society accepts unequal
distribution o power in
families, institutions and
organizations.
Inequality is manifested in
hierarchical superior
subordinate relationship
High in PD would have obedience, respect, loyalty as important values
Low in PD may not have these as strong values
National Culture & Values
2. UNCERTAINTY AVOIDANCE
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This refers to the tolerance for
ambiguity.
Culture with high tolerance
for ambiguity, would have risk
taking, innovation etc as its
values.
Examples of countries with low uncertainty avoidance scores include the
United States, England, India, China, and Singapore. Examples of countries
with high uncertainty avoidance scores include Italy, Korea, Mexico, Belgium,
and Russia.
National
Culture
&
Values
3. INDIVIDUALISM VS
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COLLECTIVISM
Individualism measures to what
extent the individuals in a
country consider themselves as
distinct entities rather than as
members of cohesive groups.
Collectivism emphasizes on
‘social ties or bonds’

between individuals
Individualist societies consider
self interest more important
than group goals.
High Individualism considers individual achievement, ambition etc as
strong values
National Culture & Values
4. Masculinity Vs Femininity
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This measures how far the values in a
society emphasizes masculine social
values such as work ethics expressed in
terms of money, achievement ,
recognition as opposed to feminine
values .
Culture high in masculine values will
have ambition, achievement,
independence to make decisions,
competitiveness, empowerment etc
Culture high in feminine values would
have cooperation, collaboration,
collective decision etc as the values.
National Culture & Values
5. LONG TERM – SHORT TERM
 Some cultures have values for
immediate outcomes and
certain other for long term
outcomes
 This in turn may be related to
values such as patience and
delaying of gratification.
Classification of Values
 Milton Rockeach created the Rockeach Value
Survery (RVS) in 1973 and proposed two sets of
values with each set containing 18 sets of
individual value items.
 The two sets of values are
1. Terminal Values
2. Instrumental Values
Classification of Values
 Terminal Values refer to desirable end state of
existence, the goals that person would like to
achieve during his/her lifetime
 Examples of Terminal Values are equality,
freedom, inner harmony, mature love, national
security etc
 Instrumental Values refer to preferable modes
of behavior or means of achieving the terminal
values.
 Examples of Instrumental Values are ambition,
broad mindedness, forgiving, helpful etc
Classification of Values
 Another classification of values are Espoused
Values and ‘In Use’ Values
 Espoused values those values that exists
when social sanction is non-existent.
 Espoused value is an important concept in OB
as organizations can induce espoused values in
the employees to move towards achievement of
organizational goals
 Values that defines the mode of socially
acceptable conduct and therefore social
sanction may make us to make adjustments in
our values are called as ‘In Use’ Values
How do values impact outcomes?
Values and Behavior
 The relationship between values and behavior has

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been analyzed by MNC managers and among which
the study conducted by George W. England is one of
the most popular one.
He poses the following questions
Why liquidate the business rather than negotiate
with the labor union?
Why certain scientists pass the secrets of some
elements that can cause harm to the society at large
believing that it is good for the society or why a
secret formula of a medicine is released with the
belief that knowledge should not be restricted by
IPR?
A labor leader foments a long and costly strike just
to show his importance
Intellectuals and politicians who levy a heavy tax on
profit .
How do values impact outcomes?
Values and Behavior
 All of us has got certain genetic code and
individual values that we inherit or gain through
childhood.
 Since we live in a society, we need to have a
congruence between our values and others’
values and hence, we need to compromise in
values
 At the end there is a set of values which affect
the outcome.
 Thus task outcome is impacted by individual
values as well as that of others and hence it is
imperative to have value congruence in
organizations.
Framework of Effect of Values
Individu
al Values
Task
Situation
Variables
Socialization
Process,
Genetics
Values of
Others
Value
Congruen
ce
Outcomes
Beliefs
Perception
Attitude
Decisions
Behavior
Performanc
e

 Attitudes are also known as ‘Frame of Reference”
 Attitudes provide the background against which facts
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and events are viewed and it is an all pervasive
phenomenon that exists every where in the life of
individuals and groups
An attitude is the pre-disposition of the individual to
evaluate some objects in a favorable or an unfavorable
manner
Attitude are different from values
Values are the ideals whereas attitudes are our
feelings, thoughts and behavioral tendencies toward a
specific object or situation.
Attitudes are evaluative statements
Components of Attitude
 There are three components of attitude.
 Cognitive
 The mental process involved in gaining knowledge and
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comprehension, including thinking , knowing, remembering,
judging and problem solving
Affect
The person’s feelings that result from his/her belief about a
person, object or situation. For example, a person who
believes that hard work earns promotions, feel frustrated if
promotion is rejected
Behavior
The individual’s behavior that occurs as a result of his or her
feeling about the focal person, object or situation. It is the
intention to behave in a particular way
Components of Attitude
COGNITIVE = EVALUATION
My superior gave a promotion to a
coworker who deserved it less than
me. My superior is unfair
AFFECTIVE = FEELING
I dislike
BEHAVIORAL = ACTION
I’m looking for other work.
I’ve complained about this to
my superiors
Functions of attitude
 Attitude server four important functions ( Katz)
 Adjustment Function
 Attitude help people to adjust to their work environment.
Well treated employees tend to develop positive attitude
towards work whereas ill-treated employees tend to
develop negative attitude towards work and management
 Ego – Defensive Function
 Attitude help people to retain their dignity and self
image. For example, when an youngster joins the
organization with higher qualification and better creative
ideas, it will be discouraged by seniors by stating that the
ideas are crazy or impractical.
Functions of attitude
 Value Expressive Function
 Attitude provides individuals with a basis for expressing
their values. Hardworking managers always express it
through advises to the subordinates
 Knowledge Function
 Attitude provides standards and frames of reference that
allow people to understand and perceive the world
around them. If a worker has negative attitude towards
the management, even positive actions of management
will be treated as negative by the employee.
Types of attitudes (Page 188)