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Leadership Values: Instrumental and Terminal Principles for Organizational Success Essay

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Introduction

Building a good leadership profile requires a serious reconsideration of the values and principles. In this sense, instrumental and terminal values are of greatest importance. Instrumental values are the means and tools by which leaders achieve their goals. In contrast, terminal values refer to realizing the ultimate outcomes of the activity. These two types of value help leaders shape the organization’s culture and drive its success.

Instrumental Values

Three instrumental values I consider among the most important are ambition, competence, and vision. Ambition is crucial because it drives leaders to set high goals and be constantly involved in the working process. This quality is essential for younger generations who are inspired by the achievements of Bill Gates and Tiger Woods (Rudolph et al., 2018).

Competence means that leaders possess sufficient knowledge and experience to lead the organization effectively. Academic research indicates that leaders’ competence positively impacts employee performance and may account for a significant share of it (Edward & Kaban, 2020). Lastly, leaders must communicate a clear vision of future development to subordinates. It should be motivating and inspiring enough to find a response from the employees.

It seems that instrumental values are located at the foundation of the value hierarchy. Without such qualities, the entire management practice will collapse due to unclear expectations and a fear of failure. Considering these instrumental values in relation to leadership approaches, the qualities listed above align with the principles of transformational leadership. The main idea is that such a type of leadership “increases the awareness of organizational members of the need to achieve common goals” (Kotamena et al., 2020, p. 37). For these purposes, a clear vision backed by competence and ambition is the appropriate value set.

Terminal Values

Modern organizations often promote inclusive and universal values that enhance prestige and reputation. For example, achieving social justice, maintaining workplace freedom of speech, and inner harmony among employees are significant terminal values for successful leaders. The reason for this choice is that the listed values combine nationwide principles to shape the corporate image and internal arrangements that promote staff comfort.

Nevertheless, these terminal values may be modified and reconstructed, while instrumental values should be stable in the long term. For example, leaders may shift their strategy to place greater emphasis on values of social recognition and equality. Therefore, instrumental values are located higher in the value hierarchy than terminal values.

Terminal values are essential for leaders because they direct their behavior and operational code. When leaders emphasize values such as social justice, freedom of expression, and personal well-being, they aim to foster a culture and environment that uphold these principles (Luthans et al., 2021). Additionally, the clear articulation of terminal values may contribute to a better-formulated organizational vision and, subsequently, motivate employees more effectively.

Conclusion

To conclude, values are the dominant force in guiding organizations in their operations. The proper formula of different values will define the organization’s image for decades, so leaders must elaborate on their approach. In this essay, instrumental and terminal values were discussed in relation to leadership. Ambition, competence, and vision are critical instrumental values, while social justice, freedom of workplace expression, and internal harmony are the central terminal values.

References

Edward, Y. R., & Kaban, L. M. (2020). The effect of transformational leadership and competence on employee performance with job satisfaction as intervening variable. Academic Journal of Economic Studies, 6(2), 62-72.

Kotamena, F., Senjaya, P., & Prasetya, A. B. (2020). A literature review: Is transformational leadership elitist and antidemocratic? International Journal of Social, Policy and Law, 1(1), 36-43.

Luthans, F., Luthans, B. C., & Luthans, K. W. (2021). Organizational Behavior: An Evidence-Based Approach. IAP.

Rudolph, C. W., Rauvola, R. S., & Zacher, H. (2018). : A critical review. The Leadership Quarterly, 29(1), 44-57.

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IvyPanda. (2026, March 13). Leadership Values: Instrumental and Terminal Principles for Organizational Success. https://ivypanda.com/essays/leadership-values-instrumental-and-terminal-principles-for-organizational-success/

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"Leadership Values: Instrumental and Terminal Principles for Organizational Success." IvyPanda, 13 Mar. 2026, ivypanda.com/essays/leadership-values-instrumental-and-terminal-principles-for-organizational-success/.

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IvyPanda. (2026) 'Leadership Values: Instrumental and Terminal Principles for Organizational Success'. 13 March.

References

IvyPanda. 2026. "Leadership Values: Instrumental and Terminal Principles for Organizational Success." March 13, 2026. https://ivypanda.com/essays/leadership-values-instrumental-and-terminal-principles-for-organizational-success/.

1. IvyPanda. "Leadership Values: Instrumental and Terminal Principles for Organizational Success." March 13, 2026. https://ivypanda.com/essays/leadership-values-instrumental-and-terminal-principles-for-organizational-success/.


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IvyPanda. "Leadership Values: Instrumental and Terminal Principles for Organizational Success." March 13, 2026. https://ivypanda.com/essays/leadership-values-instrumental-and-terminal-principles-for-organizational-success/.

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