Introduction
In nearly all civilizations, individuals possess certain traits and attributes that are regarded as meaningful to their day-to-day interactions with others as they represent their deeply held priorities, concerns and driving forces. Communities share values of what they think is right or wrong, reasonable or unreasonable, legitimate or illegitimate, among others, in the process engendering trust and commitment that enables them to function as a social system.
The shared values link members of a particular community together (Granger 1993, p. 40). In equal measure, every organization has definite core convictions and passions about its undertakings, and about how the work gets to be done (Padaki 2000, p. 420). These core convictions become organizational values when they are transformed into comparatively enduring organizational practices. Values, either positive or negative, exist in every organization, and its management is a significant strategic mission since it defines the organization’s chances of success or failure. It is the purpose of this paper to critically evaluate the role organizational values play in influencing the process of employee recruitment and retention
Definitions
Many scholars and organizational theorists readily agree to the assertion that the term ‘values’ should be viewed in two ways – individual attributes and organization’s shared beliefs (Padaki 2000, p. 421). According to Padaki, “since the basis is in the organization of an individual’s belief system, the correct and precise meaning of the term value is an individual attribute” (p. 422). Organizations are made up of a collection of employees with individual value systems.
To develop organizational values, organizations must have the capacity to initiate considerable agreement on individual value systems in the hope of demonstrating a recognizable organizational identity or overlap the diverse value systems exhibited by employees into a small set of consistent values, otherwise known as organizational value system (Padaki 2000, p. 422). Consequently, organizational values can be defined as “an enduring organization of beliefs concerning preferable modes of conduct or end-states among a continuum of relative importance” (Seevers 2000, p 70). Organizational values describe the most critical concepts or belief systems that highlight acceptable codes of behaviour by employees. Indeed, the values are indicative of fundamental aspects of work believed to be of primary importance to the effective functioning of an enterprise.
Origins of Organizational Values
The subject of organizational values is increasingly understood as an organization’s critical asset that can be utilized effectively to further its competitive advantage. However, the origin of the values is not as clear as its objectives due to the fact that they are relative to different cultures and time periods in the realm of history (Boudon 2001, p. 35). According to systematic studies conducted by management theorist Ralph Stogdill in the mid-twentieth century, devotion to organizational values was not considered as a management technique by then (Graber & Kilpatrick 2008, p. 183).
But by the end of the 20th century, debates concerning the importance of values in management became more apparent. It is at this point in time that management professionals came to realize that organizations exhibited signs of maturity and institutionalism when their respective leaders instilled them with values. This marked the conception of the value system, a new and enticing way of distinguishing and evaluating how employees harmonized their individual values to a set of principle values, and how organizations attained exclusive identities and competence (Graber & Kilpatrick 2008, p. 184).
Advantages and Disadvantages of Organizational Values
Today, more than ever before, organizational values have assumed a prominent position in the day to day running of organizations. The values have penetrated the very core of how organizations run their practices and processes, including codes of ethics and behaviour, business operations, employee recruitment, training, and retention (Williams 2002, p. 219). In this perspective, organizational values have myriad advantages and several disadvantages. Among the advantages, organizational values functions as a bonding device among the employees, assisting them to focus to the real aims, objectives, and missions of their respective organizations while significantly curtailing occasions of conflicts of interests (Williams 2002, p. 223).
Indeed, effective employee integration can be attained by aligning the individual values of employees to those of the organization. For organizations to maximize their capacity and performance, “Variability in the behaviour of organizational members should be kept at a minimum (Tripathi 1990, p. 715).
The second advantage relates to the fact that values functions as a fundamental constituent of the company’s standpoint concerning its strategic direction, business model, future forecasting and visioning (Williams 2002, p. 223). Values drive strategy; and strategy drives business. In this perspective, it would be safe to argue that organizations with no value systems have limited chances of achieving success, a fact that has been collaborated by systematic empirical studies conducted in the past.
Third and most important in the context of this study, good organizational values attract the best employees into an organization and helps curtail staff turnover (Withers 2001, p. 37). HR professionals in the past used to offer incentives such as salary increments and promotions to safeguard retention. However, this has been overtaken by events due to changing demographics, the disintegration of hierarchies and intense global competition. As such, the HR professionals, according to Withers, have been obligated to look at a more organic crop of inducements, also known as soft benefits, which can be used to curtail turnover. Offering the right mix of organizational values that allows employees to further their potential while making money for the organization has been suggested by theorists as one of the soft benefits used to curtail turnover while attracting the cream of the employees to the organization.
Lastly, strong organizational values in any enterprise – public or private – may have significant internal effects on, not only the life and wellbeing of the organization but also on the employees’ internal state of affairs. According to Christensen (2007), “feeling part of an institution with a clear mission and direction, where what one does is meaningful and is in tune with what others do, can be a source of personal growth” (p. 53). Further interpretation of this statement reveals that organizational values enhance employee motivation, and hence gets them to perform their duties with minimal diligence and minimal supervision. According to the Self-Determination Theory, such values can further employees innate predispositions to behave in rational and effective ways, thereby triggering success for their own benefit and that of the organization (Dwain 2008, para. 1).
In terms of disadvantages, it is evidently clear that some organizational values, especially in enterprises with authoritative leadership, maybe too unyielding and too privately directed, that is, they don’t have the interests and wellbeing of the employees at heart (Christensen 2007, p. 53). In such a scenario, plurality, freedom of expression, constructive debate, and innovation are constricted in a top-down administrative approach.
For example, Indian businessmen running industries in Africa are known to induce strict organizational values that only serve to curtail employees from attaining their fullest potential. Poverty is a major contributing factor in this situational dynamics. Second, organizations employing authoritative leadership may come up with value systems that are vulnerable to a concept called ‘moral capture,’ which inarguably translates to the fact that some determined leaders within the organization may attempt to use the value system to progress their unwanted and unwarranted rules and values (Christensen 2007, p. 54). This definitely leads to increased staff turnover.
How Values Influence Organizational Practice and Processes
Most definitions share the basic assumption that values influence organizational practices and behaviour. Whereas this is reasonably true, it can also be argued that some organizational practices and processes may influence the value system of organizations by infringing on the rights of employees or by deviating from the set value system in the case of strong leaders. This notwithstanding, values serve fundamental regulatory roles, thereby shaping the practices and processes adhered to in the organization (Lorda & Brown 2001, p. 133). For example, if an organization’s most solid values revolve around integrity and accountability, its practices and processes must be designed and formulated to curtail any acts of corruption or arm-twisting within or without the organizational environment.
Second, values influence organizational practices and processes by assisting to “embed leadership actions in a broader cultural framework” (Lorda & Brown 2001, p134). In this perspective, organizational values have the capacity to influence the decisions made by the leaders since, in most conventional organizations, leaders make reference to the value system set by the organization to make critical decisions affecting the practices and processes of the organization.
For example, if an organization strives to offer flexible and credible services to tourists on holiday, any decision-making process announced by the management of the organization must reflect the two values. As such, it is safe to assume that values bind the leadership’s capacity to make critical decisions as they influence the leader’s perception of what is and what is not a problem (Tosi et al 2000, p. 317). The same case applies to employees.
Third, values are known to influence behaviour, which in turn influences organizational practices and processes. According to Lorda & Brown (2001), “values and self-concepts are key mediational processes that link exogenous processes, such as culture and leadership, with processes internal to a subordinate, which intern influence the subordinate’s behaviour” (p. 134). The employees are at the very core of the organizational practices and processes, and thus, the organization is bound to gain in a positive way if the value system has the capacity to influence behaviour in a positive way. The opposite is true for negative influence. The model below reveals how values serve as a link between the organization’s exogenous factors on the one hand and the employees’ self-regulating mechanisms on the other.
Forth, the value system has been found to penetrate deep into recruitment and retention practices of many organizations across the world. A study conducted by Segella et al (2001) to ascertain the socio-cultural impacts on employee recruitment revealed that managers and employees who symbolize certain key values for the organization or its clients are more likely to be recruited into more prominent and influential positions than those who do not (p. 35). Currently, organizational values permeate every single aspect of employee recruitment process unlike in the past where potential employees were selected based on their educational achievement, the right mix of skills and experience (DDI 2005, p. 5).
Values and HR Practices of Retention and Development of Employees
Systematic organizational studies reveal that employee retention is very much dependent on the intensities of organizational values and commitment (Buck & Watson 2002, p. 175). Employee turnover is an irritating and often disturbing reality in many organizations since it beckons when least expected, forcing HR managers to spend precious time, resources and effort advertising for vacancies, recruiting, picking and training substitutes.
The time and resources related to this overbearing process impact negatively on the productivity and performance of the organization. However, voluntary staff turnovers are controllable actions which can present competitive advantage to public establishments and business entities that are able to comprehend and manipulate the trend (Buck & Watson 2002, p. 176). Through the use of value systems predominantly present in many organizations, HR professionals can effectively be able to retain and develop their employees in the least costly way possible.
Various HR strategies can be employed to retain and develop employees using the organization’s value system. First, the fact that staff turnover is often triggered by bad management style is in the public domain. The management style employed influences the level of commitment an employee may have towards the organization (Buck & Watson 2002, p. 176). It is imperative to note that commitment is a value that can be held both at the individual and organizational level.
Consecutive studies have revealed a positive association between employee commitment to an entity and intention to stay. In other words, committed workers are less likely to terminate their employment voluntarily. It is therefore the function of HR department to ensure that organizational activities such as management practices do not interfere with the employees’ level of commitment towards the organization. This way, retention and development of employees is guaranteed.
Motivation has always been used by progressive organizations for purposes of employee retention and development. HR professionals are increasingly employing a concept known as ‘motivational fit’ to recruit and retain employees that will identify with the values and aspirations of the organization, and hence ensuring its success. Motivational fit can be perceived in two broad categories. In the first category, known as Job Fit Motivation, HR professionals must be keen to establish the degree or level to which the stated objectives of “a particular job are consistent with the activities and responsibilities that an individual find personally satisfying” (DDI 2005, p. 5).
The second category, Organizational Fit Motivation, describes an individual’s degree of compatibility with the set organizational values and principles of operation (DDI 2005, p. 5). This category is critically important for effective retention and development of employees since it identifies with the set core and operating values of the organization for successful completion of activities and responsibilities.
The Reinforcement Model can assist HR professionals to understand the dynamics of commitment and motivation in ensuring employee retention and development. According to the model, individuals are always ready to engage in activities that have rewarding outcomes, but avoid engaging in activities and responsibilities that have punishable results (Daniels & Daniels 1989, p. 53). In the same vein, committed individuals who engage in personally satisfying job activities will strive to achieve positive outcomes both for their own benefits and that of the organization. This helps to reduce absenteeism and employee turnover, in addition to enhancing employee satisfaction and morale (DDI 2005, p. 9). The end result is superior performance and productivity for the organization since committed and motivated workers are more likely to take responsibility of their own work ethics and performance.
Employee wellbeing is another area of interest for HR professionals in their attempt to come up with strategies aimed at ensuring the retention and development of employees. The state of well-being, which should not be misconstrued to mean the avoidance of falling ill, is a critical organizational value that allows workers to prosper and realize their full potential for their own benefit and that of the organization (Daniels & Daniels 1989, p. 221).
The cost of non-organizational wellbeing can be immense for any organization, and includes absenteeism, unhealthy or risky practices such as drug and alcohol abuse, stress-related infirmities, fatigue caused by deficiencies in work-life balance, accidents, and loss of productivity. All these factors ultimately lead to staff turnover, that is, employees are more likely to voluntarily terminate employment if their states of well-being are disregarded.
It should be the function of HR professionals to come up with effective strategies aimed at enhancing the state of employee wellbeing. Such strategies may include positioning health clubs in the organization for exercise and leisure, instilling feelings of self-confidence and respect in the employees, and encouraging the employees to have a network of affiliations that are both supportive and nurturing. To ensure the retention and development of employees, therefore, organizations must be prudent in offering values-based leadership, equal opportunities to all employees, job satisfaction, access to learning and promotion opportunities, mentoring and guidance, and room for innovation and creativity.
Employee involvement and employee participation are two distinct but interrelated strategies that can be effectively used to ensure retention. Although there are many cross-organizational variations on how far should the workers be involved, and on whether such involvement should be direct to the management or through representatives, the general consensus is that involvement and participation of employees on matters affecting the organization binds them more to the value system and identity of the organization (Poole 1975, p. 92).
The analytical framework of employee involvement also questions the form that the involvement should assume, level of involvement and the issues that form the theme of involvement. Employee involvement basically entails creating an environment whereby the workers have an influence on the decisions and resolutions affecting their own jobs, while employee participation entails the actual involvement of employees in decision making processes, either through one-on-one forum or representation by trade unions and other councils (Hyman & Mason 1995, p. 26).
The above two value-based strategies are critical in ensuring the retention of employees. However, leaders must be flexible, participative and open to allow employees input their major concerns and worries, and indeed acting on them through leading by example. However, if successfully implemented, these two strategies have huge potential of curtailing staff turnover since it makes employees to feel they are part of the team, thereby committing themselves fully to the aims and objectives of the organization (Hyman & Mason 1995, p. 29).
The job enrichment strategy is also effective in ensuring the retention and development of employees. Here, the strategies that can be used to appeal to employees include doing away with controls that may appear oppressive to the employees while still maintaining accountability; enhancing employee’s responsibility for own work, including giving them wholesome units of work; extending authority to employees for their own work-related activities; making appraisal reports on performance directly accessible to the employee rather than the supervisor; and assigning individualized tasks to transfers skills and expertise much more rapidly (Tripathi 1990, p. 735).
This strategy can be supported by the Path-Goal Theory of Leadership, whereby leaders encourage and support their employees in attaining the aims and objectives set by the organization by clearing the path and making it easy for employees to follow (Cole 2003, p. 129). The leaders, especially those directly dealing with employees, must categorically illuminate the path and remove all roadblocks so that employees may know which way to follow without being stopped. In the theory, removing the roadblocks is equivalent to offering employees some incentives in the form of job enrichment strategies. Rewards should be augmented along the routes to ensure total retention.
Lastly, Identifying and nurturing talent is still another value-based strategy that HR professionals can use to ensure maximum retention and development of employees. Talented individuals are also known to be innovative and creative – two values that can effectively be used to drive the growth agenda forward (Padaki 2000, p. 428). However, talent needs to be nurtured for the employee to develop to full potential. Many talented individuals are strategic thinkers, good team leaders, and understand the dynamics of partnering with the organization’s customers, including building solid relationships. According to the Theory of Talent, employees recognize their own purpose as the core of their own selves when they summon all their power into beneficial use in a rather effortless way (Ventegodts et al 2003, para. 1).
Their objectives in life take the shape of an exceptional talent when they entirely acknowledge their own nature and abilities. In this perspective, it is safe to assume that all employees have their own unique talents, and therefore, the work of HR professionals is to help them discover and nurture these talents for their own benefits and those of the organization. This theory suggests that individuals experience a great sense of happiness and consciousness upon realization that they posses a unique talent. HR professionals should therefore utilize this strategy to curtail staff turnover.
Conclusion
All in all, available literature points to an intricate connection or link between organizational values and HR practices of recruitment and retention. Indeed, values are at the very core of nearly all organizational practices and processes since they influence behavior (Padaki 2000, p. 428). A HR recruitment panel lacking any regard for competency, integrity, loyalty, and accountability will end up recruiting incompetent employees through the backdoor.
Such a value-based shortcoming will definitely have a multiplier effect in the organization as practices and processes will be run incompetently; lead times will increase impacting heavily on the organization’s financial and material resources; suppliers will not be paid on time and therefore will fail to deliver supplies; customers will start complaining about late deliveries; and ultimately, the organization will collapse.
It is therefore imperative to note that HR practices and processes are grounded on values, and must be directed by values to achieve viability and success. Many private organizations and public sectors in Africa continue to collapse by the day as a result of neglecting organizational values in favour of inept and often corrupt recruitment procedures. Recruiting the wrong people for the job is tantamount to sounding the death knell of the organization as it is mostly the case in Africa since such employees may never have the morale or commitment needed to deliver positive outcomes. In the light of this, there has been a prevalent acknowledgment across organizations and civilizations of the importance of values in guiding organizational policies, practices and processes, including HR practices of recruitment and retention.
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