Value systems as a mechanism for organizational change

Abstract

PurposeThe purpose of this paper is to investigate the role played by value systems as mechanisms for organizational change. Three issues are examined: purpose; implementation; and effects, intended and unintended, that may arise from using values systems as a management control mechanism to effect organizational change.Design/methodology/approachThe research is based on evidenced garnered from an in‐depth, longitudinal study of a major UK based organization which operates in the “global communications industry”. Data are collected from a range of sources, but particularly interviews and a questionnaire survey involving a broad cross‐section of the company's managers.FindingsFindings suggest that, in terms of purpose, top management may use value systems as a management control mechanism to effect organizational change by espousing a new set of normative values which should inform managers' decisions and actions, particularly in trade‐off situations. Communication and implementation of value systems may involve a multitude of formal and informal information‐based mechanisms and procedures, including mission statements, newsletters, email, “strategy days”, “roadshows” and similar social events. Implementation may rely on change agents creating a drive for change. However, the results of a questionnaire survey suggest that value systems may be only partly successful in securing their intended purpose of mobilising attitudes around a particular set of normative values. Various unintended effects may arise which, in the present case, include increasing project redundancy, decreasing project scrutiny, a re‐distribution of social esteem within the firm, polarisation of attitudes towards budgetary control, and a general reduction in the exercise of hierarchical management control. Overall, it argued that the use of value systems as a mechanism of organizational change may be as problematic to the firm as it is beneficial.Practical implicationsThe results of the present study may help firms devise more appropriate value systems for “maintaining or altering patterns of organizational behaviour”.Originality/valueThe present study contributes further insight is through evidence which suggests value systems may be used to communicate a set of quite specific values; and adds to a knowledge of the range of procedures which may be involved in using value systems to effect organizational change.