Using Core values to guide employee performance?

Using Core values to guide employee performance
Unless the stated core values of organization are translated into actions and desirable performance, they remain nothing more than an epithet associated with the organization.

Most organizations identify some core values as the driving principles for their work culture. These values are also communicated to different stakeholders, like employees, current and potential customers, and partners, so that they are aware of what the organization stands for. However, very few organizations are actually able to ensure that these values are echoed consistently in all their actions. A probable reason is the apparent formidability and impracticality of the exercise. Despite the challenges, it is possible for organizations to take certain steps in that direction. Below, I outline two alternate approaches that organizations can adopt.

Approach 1: Systemic Approach

This approach involves the systemic factors in the organization. Values can guide performance when they are

  1. Reflected in employee job behavior: Individual level
  2. Aligned to employee job design and performance measures: Process level
  3. Manifested in the formal organizational setup: Strategic level

Organizations can undertake one or more of these initiatives as per their available resources and priorities.

  • Reflection of values in employee job behavior

Values can guide organizational performance if employees:

  1. a) use these values in their day-to-day tasks and
  2. b) use them in a way that improves their performance.

This requires them to understand the values accurately and incorporate them into their work. Any gap in understanding or application can lead to suboptimal use of values. Therefore, organizations can conduct the following sequence of activities:

Activities

  1. Assess employees’ understanding of the organization’s values (using quantitative surveys).
  2. Examine employees’ application of values in their work environment (using interviews and observations).
  3. Identify and analyze gaps in understanding and application.
  4. Deliver customized training programs to help employees understand and apply values as per their job responsibilities.
  • Alignment of values with job design and performance measures

Values can guide organizational performance when employees are expected and motivated to use those values. Job descriptions, specifications, and the recruitment process can communicate expectations. Motivation would exist when employees are recognized and rewarded for using those values. This requires the incorporation of those values into the job role and the measurement of the use of those values through the performance management system. Therefore, organizations can conduct the following sequence of activities:

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Activities

  1. Examine the alignment of values with the existing job description and performance measures.
  2. Identify jobs for which descriptions and performance measures do not incorporate or assess the application of values in behavior, actions, or decision-making.
  3. Modify the job descriptions and performance measures to appropriately assess the application of values by employees, as per their job responsibilities.
  • Manifestation of values in the formal organizational setup

Values can guide organizational performance when the organization’s formalized strategy, structure, and policies facilitate and encourage the use of the values. This requires alignment of the values with the formal organizational aspects. Any misalignment can make the execution of values ineffective. Therefore, organizations can conduct the following sequence of activities:

Activities

  1. Examine the manifestation of organizational values in the company’s strategy, structure, and policies.
  2. Identify aspects that may prevent or create obstacles to the use of values.
  3. Define steps that can be taken at the organizational level to overcome these obstacles.

Approach 2: Targeted Approach

This approach involves directly influencing employees to change the way they behave. Values can guide organizational performance when employees understand how to use those values to improve their performance based on their job responsibilities. Therefore, organizations can conduct the following sequence of activities:

Activities

  1. Understand the job description, responsibilities, and performance measures for each role.
  2. Analyze how the values can be used for each role to drive performance in that role.
  3. Guide and coach employees to apply those values in their day-to-day work lives.

Values represent the character of the organization. They convey the organization’s priorities in terms of activities and decisions and its attitude towards its employees and customers. Unless the stated values are translated into actions and desirable performance, they remain nothing more than an epithet associated with the organization.

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Prof. Smita Chaudhry

Associate Professor - Human Resources at FLAME University

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Author

Prof. Smita Chaudhry

Associate Professor - Human Resources at FLAME University

December 2024

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