Value driven management and ovcss
Traditional management has frequently denoted success as maximization of profit. This has frequently led to executives propping up company bottom line in the short run to show results which are discernible on the stock exchange. (Pohlman. Gardiner. : 2000). This ignores the human process of management, which implies personal and organizational growth as well as profits. Management has been traditionally defined as the art and science of maximizing the functions of planning, organizing, direction leading, and controlling.
(Jones. George. 2006). However over the years there is an increased recognition of the importance of the manager as a person. (Jones. George. 2006). As an individual, a manager has strengths, weaknesses, opportunities and faces problems. Understanding each of these facets is as much a role of good management as coordinating other resources. Apart from this every organization has to establish its code of ethics.
Managers may face ethical dilemmas in their functioning and will have to tackle these in the best interests of the company’s stake holders in a proactive manner. Value driven management is determined by an understanding of ethics and the requirements in the long term for the overall benefit of the organization. Overall growth is achieved
Value driven management attempts to rationalize profit oriented organizational perspective with the personal viewpoint which drives people to contribute to administrative as well as personal growth through factors as self respect, respect for other people, acceptance of responsibility for one’s actions and a willingness to take risk. (Pohlman. Gardiner. : 2000). Since job satisfaction and happiness is the choice of every individual, value driven management can support an individual to further his personal satisfaction aligning it to organizational value. Value Driven Management
Value Driven Management is derived from a review and analysis of a number of successful companies and entails that the consistent accomplishments of these companies is a result of their following a set of multiple values and adherence to value drivers while making decisions, setting strategy, developing products as well as in implementing changes and technology. (Pohlman. Gardiner. : 2000). It is stated that organizations which can balance value drivers and use these in their information processing will consistently outperform companies which ignore the same.
(Pohlman. Gardiner. : 2000). The aim of Value Driven Management is to motivate employees to take actions and decisions which are significant to the organization over time. For such a purpose a holistic appraisal of the value drivers to include the environment, the organizational culture, values of employees, suppliers, customers, competitors, third parties as union and regulators and finally the owners has to be considered. ((Pohlman. Gardiner.: 2000, 3). There are seven value drivers which drive management in making appropriate decisions, these are as follows:-