The effect of leadership on values‐based management

Abstract

PurposeThe purpose of this paper is to examine the role of organization leaders, particularly top managers, in building support for and developing behaviors that are consistent with values‐based management, by providing an empirical assessment of the effect of an organization's senior leadership on the values‐based management process.Design/methodology/approachAs part of a program of organization development, a values‐based management approach was implemented in a large manufacturing organization. As part of the process, a system of measuring and evaluating values‐based behaviors was developed. The senior leaders of two groups of the organization were assessed in terms of their values behaviors, and their direct reports were likewise evaluated by the organization using a 360° process.FindingsThe results indicated that the leader's values behaviors were significantly related to the values behaviors of subordinates. Subordinates of leaders who strongly demonstrated values‐based management behaviors were more likely to exhibit the same behaviors.Originality/valueThe value of these findings lies in the suggestion that the role of organization leaders, and specifically the behaviors demonstrated by leaders, are important in determining the outcomes of values‐based management techniques. Subordinates may take cues from their leaders and model their values‐based behaviors after those of the organization's leadership.