Handbook of Principles of Organizational Behavior - Soltanieh ...

376 SHELLEY A. KIRKPATRICK
IMPLEMENTING VALUES
State the desired values
A leader must identify and then communicate the desired business values to which the
organization will adhere. Business values should be viable, balanced, aligned with each
other, and authentic (Hultman, 2005 ). Common and desirable business values include
cooperation, honesty, integrity, change, and a more positive future, and confi dence
in employees ’ ability to achieve the vision (Conger and Kanungo, 1987 ; Locke and
Woiceshyn, 1995 ; Shamir et al., 1993 ). In fact, these values have been shown to be universally
accepted attributes of leaders across a wide range of societies ( Javidan et al., 2006 ).
A leader who identifies and communicates a set of personal values can improve follower
commitment to the organization (Den Hartog and Verburg, 1997 ; Dvir, Kass, and
Shamir, 2004 ; Rowden, 2000 ). The leader must explain the desired personal values and take
steps to gain employee buy - in to those values. For example, UK - based law fi rm Eversheds
embarked on a campaign to identify and communicate a set of shared values, holding
“ have your say ” sessions to discuss and gain commitment from employees. As a result,
Eversheds has changed a number of key processes to implement its values of client - centered;
straightforward, mutual respect, teamwork; accountability and continuous improvement
(Krais and Bloomfield, 2005 ).
Model the desired values
Perhaps more important than stating the values, the leader must display those values in
daily actions. Even in difficult circumstances, it is crucial that followers perceive the leader
as acting in accordance with the stated values. A leader who is seen as acting inconsistently
with stated or implied values is not likely to be as effective as a leader who “ walks
the talk. ” By role modeling the desired behaviors, the leader motivates followers to behave
in the same manner and demonstrates the behaviors that should be displayed.
The leader also must act when followers fail to display the desired values. In some
cases, the leader may engage in disciplinary action or even termination, while in other cases
the leader may provide individualized attention or consideration to enhance the follower ’s
understanding on the vision statement.
When a leader fails to act in accordance with stated values, the results can be disastrous.
Take, for example, the case of Countrywide Financial, a home loan lender, and its
top management team, who came under scrutiny by its shareholders and the fi nancial
media for not acting in accordance with its values, especially given its poor fi nancial performance
in late 2007 and early 2008. Countrywide espouses a principle - based mission
of “ helping individuals and families achieve and preserve the dream of home ownership
” through a “ high - performance and high - integrity culture. ” With its stock plummeting
to 80% of its 2006 value and many homeowners facing foreclosure, Countrywide
planned a ski trip at a Colorado Ritz - Carlton resort for 30 mortgage lenders. After
receiving scrutiny that this was not reflective of a high - integrity culture, the trip was canceled,
but no doubt made a bad situation even worse for Countrywide and its leadership
team (Hagerty, 2008 ).