Personal, Organizational and Cultural Values

¶ … Personal, Organizational and Cultural Values Affect the Decision-Making Process

In today's rapidly changing, hyper-competitive world, organizations are finding themselves striving to improve every aspect of their business. As such, decision-making has become evermore important in today's globalized environment. One of the most critical factors that affect a person's decision-making ability is the values that are being imposed on that person. Whether they are personal, organizational or cultural values, these values not only define ethically acceptable boundaries for the decision-making process, but also steer the individual towards the most socially accepted decision. Given this significance, this paper will discuss how cultural values affect the decision-making process. The relationship between organizational values and personal values and how this affects decision-making and organizational commitment will be investigated. Finally, an example of how core values in the United States Air Force affect decision-making for its troops will be examined.

How Personal, Organizational and Cultural Values Affect Decision-Making Process

Introduction:

In today's rapidly changing, hyper-competitive world, organizations are finding themselves striving to improve every aspect of their business. As such, decision-making has become evermore important in today's globalized environment. One of the most critical factors that affect a person's decision-making ability is the values that are being imposed on that person. Whether they are personal, organizational or cultural values, these values not only define ethically acceptable boundaries for the decision-making process, but also steer the individual towards the most socially accepted decision. Given this significance, this paper will discuss how cultural values affect the decision-making process. The relationship between organizational values and personal values and how this affects decision-making and organizational commitment will be investigated. Finally, an example of how core values in the United States Air Force affect decision-making for its troops will be examined.

The Relationship Between Organizational Values and Personal Values and the Affect on Decision-Making and Commitment:

Finegan (2000) investigated the relationship between organizational and personal values and how these affected the decision-making process, as well as organizational commitment. Both employees and organizations share one fundamental characteristic, 'values'. These evaluative standards are used to discern between 'right' and 'wrong' or to assess the importance of preferences. It is not surprising that an employee would be more comfortable working in an environment that is consistent and supportive of his or her own personal values. and, as anticipated, through the use of hierarchical multiple regression analyses, Finegan found that an employee's perception of organizational values positively affected their commitment level. When personal values align with organizational values, the employee is typically more devoted and more productive. However, in addition to this commitment level, aligned values positively affect the decision-making process as well, which also positively affects productivity.

When placed in an organizational environment where one's personal values are echoed by those of the organization, decision-making becomes that much easier for the individual. Choices, especially those of an ethical nature, become more clear-cut when two sets of values are steering the individual towards a similar end decision. In instance where one's personal values are not the same as those held by the organization, the two opposing forces can making decision-making extremely difficult, and paralyze the employee into inaction.

Take for instance the case of an individual whose personal values dictate that honesty and integrity are the top most concern, yet is employed by an organizational that values getting business at any cost. These conflicting values could make it extremely difficult for the employee to make decisions effectively and efficiently, especially when confronted with a situation where these two diametrically opposed sets of values come into play. In instances such as this, an employee may make decisions that are totally foreign to their normal character.

It is these corporate ethical values that typically have the most impact on the decision-making process. Organizational ethical contexts are comprised of the moral ideologies adopted by the members of the organization, as well as the institutionalized philosophies regarding the principled conduct and the ethics codes that shape corporate strategy and action. When organizational ethical values are positively aligned with personal values, a more positive person-organization fit is acquired. Again, this fit is central in effective and efficient decision-making (Valentine, Godkin & Lucero, 2002).

The development of ethical codes, which are merely a formalized statement of the corporate ethical values, have a positive effect on reducing the number of unethical decisions that are made by employees. Employees that are members of an organization with an imposed code of ethics were found to be more ethical than those who that were members of organizations without such guidelines (as cited in Valentine et al., 2002). This is a significant piece of proof regarding the power organizational values, especially when they are clearly mandated, has on personal and professional decision-making.

The U.S.A.F.: An Example of Values Affecting Decision-Making:

The United States Air Force has a very straightforward, albeit general, set of core values, "Integrity first, service before sell and excellence in all we do" (Myers, 1997). As Myers has noted, these core values do not frame the ethical issues that are faced, the Airmen within the Air Force do. However, they utilize these core values when facing the multiple ethical demands they encounter while serving their country. Although it is argued that these servicemen clearly no 'right' from 'wrong', just as in any organization, the challenge often becomes balancing complementary and sometimes competing values. For servicemen, this challenge is exponentially compounded in the preparing for and waging of war.