IMPACT OF BALANCED ORGANIZATIONAL VALUES ON BUSINESS PERFORMANCEIvan Malbašić
, 2015, doctoral dissertation
Abstract: Theories of organization and management have offered several concepts and models indicating that organizational values are an important factor in running organizations. A still unexplained question concerns the creation of balanced organizational values which can support the achievement of diversified and even seemingly incompatible goals of today's organizations. To explore balanced organizational values in contemporary business practice, we tested two most frequently used value models, i.e., the Competing Values Framework and Schwartz’s values model, on the sample of the Fortune 100 companies. This dissertation proposes a new model of balanced organizational values named Mission-based model of organizational values which proved itself to be more appropriate for researching balanced values in contemporary business practice than the two most frequently used value models (the Competing Values Framework and Schwartz’s values model), thus supporting the first hypothesis of this dissertation. Given the particularities of balanced organizational values research, an instrument for measuring organizational values was developed to suit the specific needs of this research. In order to test the research hypotheses, a research in 24 Croatian companies was conducted. In each of these companies, between 27 and 50 employees were surveyed giving a total sample size of 874 respondents. The results of statistical analysis performed to test the second hypothesis, as well as the related sub-hypotheses, indicate that the degree of imbalance of organizational values has no significant effect on the higher level of organizational commitment. The same applies to the two separate components of organizational commitment—affective and normative. However, the existence of medium-sized negative correlation between the degree of imbalance of organizational values and continuance component of organizational commitment was determined. The testing results of the third hypothesis, as well as the related sub-hypotheses, indicate that organizations with balanced organizational values are, in general, more effective than organizations with imbalanced values. Moreover, this correlation was found not only for the overall level of organizational effectiveness, but also for the most perspectives of organizational effectiveness based on the Balanced Scorecard approach. To conclude, this dissertation contributes to a better understanding of the role of organizational values in business, especially emphasizing the importance and role of balanced organizational values. Mission-based model of organizational values, developed within this dissertation, follows the findings of the most used models, integrating and upgrading them with new cognitions based on selected scientific knowledge and experience from business practice. And most importantly, this dissertation presents an empirical confirmation of the importance of balancing organizational values as one of the preconditions for successful business.
Keywords: organizational values, balanced values, model of organizational values, business performance, organizational effectiveness, organizational commitment, Fortune 100 companies
Published: 14.04.2015; Views: 1043; Downloads: 150
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