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Value Insights Monthly
"Understanding Corporate Culture"

Understanding Corporate Culture

According to the American Heritage Dictionary, "value" results from rating according to a relative estimate of worth or desirability. To me, this suggests that values depend on the perspective of the rater. And that the raters' personal beliefs, perceptions and attitudes about what has greater or lesser value are the primary factors that influence their decisions and actions.

Robert Hartman in his groundbreaking work in the field of Axiology postulated that something is "good" to the extent that it fulfills its purpose and "bad" to the extent that it doesn't. Using this concept as a way of understanding how our relative values are shaped, we can see how that differences in our experiences (family, education, religion, culture etc.) all shape our perceptions about the relative value of everything we perceive and affect how/what we think about them.

Hartman extended his philosophy by suggesting that there is a hierarchy of values that has universal application and that one's ability to make "good" value decisions depends on their capacity to see, understand, appreciate and "rank" values appropriately.

His hierarchy is based on an objective mathematical system that offers definitions of his value hierarchy to give us a common starting point. His value "levels" are:

Intrinic Value - the highest level of value, includes all that is beyond measure, that which is of "infinite" worth, that exists in its totality, that is the essence of what is. One can find intrinisic value in others and in oneself.

Extrinsic Value - second order value includes all that is finite, tangible, measurable and comparable. In the world view, it deals with things like money, cars, clothes, stocks, batting averages, financial reports, etc. In the self view, it addresses the value we place on title, position, image, as we compare people to one another or ourselves to others.

Systemic Value - the lowest order of value, includes those two dimensional, black and white, right or wrong concepts and abstract ideas we develop about how we think things should or ought to be. In the world view, systems relate to order, structure, compliance, rules, policies and even the need for developing and following plans. In terms of the self, systems relate to what we think we have to be or what we must do to live up to our self imposed expectations.

When we apply this model to organizations, it becomes apparent that differences in where and how people place value can result in conflict or, if working in a mutually supportive way, can result in harmony and balance.

If we view this in terms of corporate values/culture, we can see that when there is leadership, the leaders values will likely influence the direction/culture of the organization. However if others of influence in the organization take differing value positions, they can undermine the leaders influence.

Getting clear on what the individuals in the organization really value, i.e., the individual and collective mindset of the key players, provides insights into how "values" will be played out in daily decisions and actions.

For example, let's say the owner of a retail business built his/her success on a high value for the intrinsic worth of its customers, i.e., thought of them as people first and worked to help them meet their needs. However, as the company grew, the owner no longer worked personally to influence the sales staff with his/her values. Instead he/she turned the daily operation over to managers who placed a higher value on the appearance of the store or the accuracy of record keeping and frowned on spending "too much" time just talking to people. In very little time the daily focus of attention of the middle managers would either drive off the customer oriented sales staff or force them to approach their job from a more extrinsic or systemic way in order to survive.

This senario is obviously only one of countless ways that differences in "values" play out in shaping the direction and culture of organizations. Viewing values "Axiologically" allows us to use a common referent that can be used to measure the relative values held by individuals and identify how personal differences in value perspectives within an organization will impact their culture.

I have a twelve page article on Axiology that explains these concepts in greater depth. If you would find this information of value, send me an Email and I'll send it to you. Just as reminder, I am looking for consultants who want to learn to use the science of Axiology to improve their capacity to provide more in-depth information to the people they're working with.

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