Values-Based Management Theory

Synonyms

Actionable values; Core values; Managing by values.

Introduction

Values-based management is defined “as a series of interconnected managerial activities to ensure the acceptance of relevant organizational values inside and outside the organization” (Jaakson 2010). The theory holds that human values are at the core of managing organizations. Managers’ help to identify and support shared values within and outside of the organization (Fig. 1). The centrality of values in this theory of management stands in stark contrast to more mechanistic, bureaucratic, and scientific views of management as an “objective” science with little regard to human values, needs, or desires. The values-based approach posits that human values drive the mission, goals, and objectives of organizations and inform leadership, strategy, decision-making, ethics, and social responsibility. In short, human values underlie and are manifest in all aspects of managing organizations and, indeed, human organizing...