Management theory has developed
based upon the success of companies. Through these examples researchers can
better understand how successful techniques can be used to improve upon other
organization. New techniques may provide a framework for developing companies
in a highly competitive international market. The development of Management by
Values offers a potential way to view and see organizations.
It is beneficial to understand
how these techniques contributed and grow from each other in a natural
progression. Starting at Scientific Methodology each method contributed to
concepts of administrative approaches, decentralization, strategy orientation,
core competencies, innovation, and values. Each technique provided some level
of strength at the time they were implement. However as the world environment
becomes more complex it is important to continue and develop economic
approaches. New methods must be forthcoming.
According to Zhen (2012) the
development of thought on modern management techniques has grown throughout the
past century:
Management by Scientific Method (1911,
Bethlehem by Taylor)
Management by Administration
Organization (1916, Fayol)
Management by Decentralization (1946, Drucker)
Management by Strategy (1964, Drucker)
Management by Core Competency
(1990 NEC vs. GTE)
Management by Innovation and
Leadership (2000’s, Apple & Jobs)
Management by Values (Alibaba,
2010).
Management by Values can help to
develop stronger and more effective cultures by using values as guiding
principles to competitive advantage. To
be a competitive advantage an organizational culture should 1.) contribute to
the financial development of the whole; 2.) is unique to other organizational
cultures; and 3.) is not easily copied (Barney, 1986). When a culture is
developed that works, it will continue to provide benefits as long as it is
unique and not adapted by other organizations to achieve the same advantages.
The development of strong
organizational culture based in value premises can help hold members together.
Through this development, each member has appropriate value assumptions that
help in guiding their decisions. Such values become further solidified the more
people join the organization and reinforce this value system. Each organization
has their own unique approach to the market through their value assumptions.
Guiding organizational values
help determine the overall strategic approach. An organizational culture is
based upon those root value systems an organization deems as the most important
vantage points in order to navigate the economic environment (Zairi and Jarrar,
2011). All decisions are filtered through these values, which create guiding
principles for the rest of the organization.
Business leaders can develop
strong value systems to guide both their actions as well as those of their
employees. Through these value systems, the organization can help guide people
to appropriate decisions that further both the groups and the organizations
interests. When such value systems are beneficial, and based upon mutual
self-interest, they can encourage group navigation through difficult economic
times and create a more competitive workplace by aligning individual activities
through a cultural lens.
Barney, J. (1986). Organizational
Culture: Can it be a Source of Competitive Advantage?. Academy of Management Review, 11(3), 656-665.
Drucker, P. F. (1958). Business
Objectives and Survival Needs: Notes on a Discipline of Business Enterprise. The Journal
of Business, 31(2), 81-90.
Zhen, L. (2012). Management by
Values: A case study. International
Business and Management Vol. 4, ( 2), pp. 75-91
Zairi, M., and Jarrar, Y. (15
July 2011). Impact of Organizational Values
on Business Performance. Retrieved February 3, 2013 from
http://www.meqa.org/resources/MEQA_report_2
