This paper examines the ways in which personal, organizational, and cultural values shape the decision-making process in competitive organizational environments. Drawing on research by Finegan (2000) and Valentine, Godkin, and Lucero (2002), the paper investigates how alignment between personal and organizational values enhances both decision-making effectiveness and employee commitment. It also explores how formal ethical codes reduce unethical decisions. As a practical illustration, the paper analyzes the United States Air Force's core values — integrity, service, and excellence — and how they guide Airmen through complex ethical situations. The paper concludes that value alignment is essential to effective, ethical organizational behavior.
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 increasingly important in today's globalized environment. One of the most critical factors affecting a person's decision-making ability is the values 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 toward the most socially accepted decision.
Given this significance, this paper discusses how cultural values affect the decision-making process. The relationship between organizational values and personal values — and how this relationship 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.
Finegan (2000) investigated the relationship between organizational and personal values and how these affect 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 and to assess the importance of preferences. It is not surprising that an employee would be more comfortable working in an environment that is consistent with and supportive of his or her own personal values. 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. In addition to this heightened commitment, aligned values positively affect the decision-making process as well, which further enhances productivity.
When placed in an organizational environment where one's personal values are echoed by those of the organization, decision-making becomes considerably easier for the individual. Choices, especially those of an ethical nature, become more clear-cut when two sets of values steer the individual toward a similar end decision. In instances where one's personal values differ from those held by the organization, the two opposing forces can make decision-making extremely difficult and can paralyze the employee into inaction.
Consider the case of an individual whose personal values place honesty and integrity above all else, yet who is employed by an organization that values winning 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 directly into play. In instances such as this, an employee may make decisions that are entirely foreign to their normal character.
It is these corporate ethical values that typically have the greatest 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 principled conduct and the ethics codes that shape corporate strategy and action. When organizational ethical values are positively aligned with personal values, a stronger person-organization fit is achieved. This fit is central to effective and efficient decision-making (Valentine, Godkin, & Lucero, 2002).
The development of ethical codes — which are formalized statements of corporate ethical values — has a positive effect on reducing the number of unethical decisions made by employees. Employees who are members of an organization with an imposed code of ethics were found to be more ethical than those belonging to organizations without such guidelines (as cited in Valentine et al., 2002). This is significant evidence of the power that organizational values, especially when clearly mandated, hold over both personal and professional decision-making. For further reading on how organizational culture shapes employee behavior, the research literature consistently affirms that formal value structures matter.
"Air Force core values guide Airmen's ethical decisions"
Organizational members must make effective and efficient decisions in order to remain competitive in a hyper-competitive, rapidly changing world. The decision-making process is shaped by the values the individual is subject to, including personal, organizational, and cultural values. However, as demonstrated in this paper, these values can also help individuals make the right decision — especially when faced with an ethical dilemma — and can enhance organizational commitment when personal and organizational values are positively aligned.
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