Manegerial value

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MANAGING BY VALUES IN THE NEXT MILENIUM: Cultural Redesign for Strategic Organizational Change 1 By Shimon L. Dolan2 and Salvador Garcia3

Keywords: Managing by values, Management in New Milenium, Strategic Leadership. Journal of Economics literature classification: D23, M14, O33.

This paper is based on two recent books written by the authors in Spanish and French respectively: GarciaS. Dolan S.L. (1997) : La dirección por valores. Madrid, McGraw Hill; Dolan S.L., Garcia S. (1999) : Gestion par valeurs, Montreal, Éditions Nouvelles. 2 Visiting Professor , Dept. of Economics and Business Pompeu Fabra University, Barcelona, SPAIN (Email: Simon_Dolan@Yahoo.com)
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Professor of Organizational Behavior, Dept. of Social Psychology, The University of Barcelona, SPAIN (Email:SGARCIA@psi.ub.es)

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Abstract
The system of beliefs and values, that shaped the model for management and organizations during the 20th century, is just not good enough today. In order to keep a business functioning well and competing successfully in markets that are increasingly more global, complex, professionally demanding, constantly changing and oriented towards quality and customersatisfaction a new model is needed. In this paper, we will propose that both Management by Instructions (MBI) and Management by Objectives (MBO) today give notoriously inadequate results. By contrast, description of a new approach labeled: Management by Values (MBV), seem to be emerging as a strategic leadership tool. The paper outlines this approach and discusses the implementation of MBV as a toolto redesign culture in organizations and prepare them for the next millenium.

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Introduction
The system of beliefs and values, that shaped the model for management and organizations during the 20th century, is just not good enough today. In order to keep a business functioning well and competing successfully in markets that are increasingly more global, complex, professionally demanding,constantly changing and oriented towards quality and customer satisfaction a new model is needed. The old model, based on the hierarchical control of employees, must unquestionably evolve to take account of a new way of thinking and doing things at work - towards a “new culture”. This culture must, of course, maintain effective mechanisms of “top down” monitoring of results, but the leaders wouldbe expected to make a strategic choice, not of controlling but that of developing the personal and professional potential of each and every member of the organization. The mushrooming of new articles and books in management shows that just about everyone is theoretically in agreement with the above mentioned proposition. Titles such as “Total Quality”, “Learning Organizations”, “ContinuousImprovement”, “Just-In-Time Scheduling”, “Lean Management”, “Business Process Re-engineering”, and many other novelties are condemned to become just one more fad in the management jargon. Because, what is not always clear, is how to render these concepts operational in the sense of selling them to all stakeholders (shareholders, managers, unions, employees, etc.). More specifically, stakeholders wish toget a clear understanding of: which values and beliefs need to be changed? how and when to initiate the process of change? how far to take it, and, most importantly of all, how to lead and steer this “cultural re-engineering” without suffering break-downs, generating a threatening climate, or running excessive risks? how can the leaders and drivers of change ensure that it is understood andwelcomed by all stakeholders as a spectacular opportunity for revitalization and improvement? In this paper, we will propose that both Management by Instructions (MBI) and Management by Objectives (MBO) today give notoriously inadequate results. Management by Values (MBV), on the other hand, is emerging as a strategic leadership tool of tremendous potential for practical development, as a result of its...
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