The role of organizational values in shaping organizational potential

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The role of organizational values in shaping organizational potential

Kopets H.R., Lviv Polytechnic National University, Rachynska H.V., Lviv Polytechnic National University

Introduction

organizational values corporate culture

Values play a key role in shaping organizational potential. Organizational potential can be defined as a set of internal resources, abilities and competencies that allow organization to achieve its goals and develop in the long term. Organizational values influence all aspects of an organization's activities and are the basis for organization's internal culture, mission, and vision. Organizations with distinct values that align with employee values find it easier to recruit talented employees. When employees feel connected to an organization's mission, they are more engaged in their work and more inclined to get involved in the company's development process.

Organizational values form the basis of corporate culture that defines the way employees perceive and interact within a company. A positive corporate culture based on shared values contributes to a favorable environment for the development and growth of employees. Organizational values can be used as a guide when making strategic decisions. Companies that pay attention to their values usually develop strategies and policies that are consistent with their values.

In general, organizational values influence the structure, culture, processes and resources of an organization, determining its ability to achieve its goals and to structure and realign itself in the long term. Organizations that skillfully incorporate their values into all aspects of their operations have an advantage over those where values and mission are mere statements.

Main material

There are many causal relationships that can be expressed as functions. But in order to study the parameters of a casual relationship, one needs to discover it first. Some phenomena, such as the expansion of the universe, are might be more difficult to discover and explain a as compared to the social and economic interactions taking place in society. Nevertheless, the effectiveness of these social and economic interactions will determine on one hand, the limits of our perception and understanding, and on the other hand, most of a society's potential for materialist achievements. The consequences of social and economic interactions are changes. Some of them will not register in our consciousness, others, on the contrary, will be discovered and reach a certain level of understanding. So, for example, in ancient Greece, technological advancements were not adopted in production, because slave labor used in production made it ineffective to introduce new and more complex technological achievements. The reason being the slaves, whose interests were opposite to the interests of their owners, intentionally caused damage to costly machines, which made their use unprofitable [1]. Forced labor, as a social paradigm for the organization of the production process, did not allow society to continue its development. Larger-scale social changes could bring economic advancement and growth. Nevertheless, the society was not capable of them, since the principle of coercion was one of the most fundamental to functioning of the entire economic system. It is natural that sooner or later such a society declines.

Therefore, changes are a necessary thing in the development of any society or organization [2]. Society consists of a great number of individual organizations. Organizations interact with each other according to the rules recognized and adopted by society. These rules are established in laws, moral norms, and traditions. But to say that society consists of organizations is to miss the whole picture, because organizations are created by people to meet social and economic needs. So the basic principles, values and methods by which the members of society interact and partake in organizations will determine organizational productivity. This is illustrated by the above example of ancient Greece. Responsible behavior on the part of the participants is not compatible with coercion and therefore perhaps only partially compatible with control. When it comes to what type of participation is the most productive/effective, one can analyze current trends. These trends show that the least paid production process is the one that is engineered around simple reproduction of goods [3]. The most paid and hence one of the most valued by society, is the work that creates, not reproduces, based on special information/knowledge. Such, for example, is the work of a manager, with his unique vision, experience, knowledge. Society values this and therefore rewards a person. Often, the creation of something new must take into account the achievements of the past, because otherwise a situation may arise when a person solving problems redicovers solutions that have long existed. A successful system of such knowledge accumulation and sharing can be seen in the example of such a monumental phenomenon as modern science.

The world is changing and the preferred direction is positive change. Amidst these changes there is a need to keep track of our values. The greatest value is the one that underlies the very existence of conscious change - the value of freedom. A person can perceive freedom first and foremost as freedom of thought, since one can allow oneself to think not only along the line of instincts, but also in any direction. Freedom of thought is a prototype of the feeling of freedom, within consciousness, which gives a choice of the direction of conscious exploration effort.

This may contrast with all other, clearly ordered processes that take place in the human brain, without the knowledge of the person in subconsciousness [4]. Today we know much more about psychology than before, in particular about the subconscious, so we can draw a parallel with freedom of consciousness and freedom in the general sense.

Taking into account the individual characteristics of each consciousness, when communicating with a large number of people, a cumulative effect may arise. This may occur when two people together, in the course of a discussion, can discover and explore more than each of them could comprehend individually. Thus, one of the greatest advantages of an organization as a form of collective cooperation is the commonality of the information field in which information is exchanged [5]. The key to unlocking the potential of a group of people is specialization and trust networks.

At the initial stage, unprocessed information is perceived by a person, and its importance is evaluated. If the information is important for a person, and also is evaluated as requiring further processing then a decision is made to explore it further, which may increases its potential value. The casual relationships that appear in the information message might be evaluated by a person. Connections are established and explored between the parameters of these casual relationships and their characteristics. At this stage, the value of information increases further. Being subjective, a person searches and establishes a connection between the processed information and his own goals. Based on this, a decision is made about its possible storage/transfer to the appropriate information space.

Organizational goals (the degree to which organizational members share them) and values, as well as the incentives created by an organization, play a crucial role in the stages where information requests, assessments of importance, expediency of processing, or transmission are executed. An organization's goals, formed on the basis of its values, determine its interest in accessing information that is directly related to value maximization [6]. An organization's access to the potential of a person and his abilities, will provide a competitive advantage, which consists in attracting a larger number of valuable resources at the lowest costs. Today, there are favorable conditions for motivating as many people as possible to think creatively, deeply analytically about their work, the work of their departments. Employees can be motivated to identify and understand the processes that create value for their employer and the endcustomer, at least with relation to the business-processes that they are involved in with their work. An employee can be motivated to have a vision of to increase their efficiency/cost/productivity/ value of services provided by their employer-organization or the work performed by their respective department or branch. Working in this way, an organization gains access to valuable internal information that is only accessible to a member of the organization in their respective position. The most effective organization to compete in the market will be the one that has complete access to useful information about itself and its business-processes.

All repetitive processes have a steady tendency towards automation, and only the ability to creatively observe, participate and create new opportunities is a unique characteristic of a human employee. In the future, the possibilities of creative participation will become central to the level of productivity of a human employee. The most successful organizations will be the ones that can make the fullest use of the potential of its creative employees. One cannot force a person to create, but one can procure an environment for a person to realize creative potential. This is the purpose of introducing into an organization an institution of a `free market for ideas'. Access to this market may be completely

open to all employees, proposals may be anonymous to prevent bias [7].

As mentioned above, values, as well as mechanisms that ensure the consistency of their implementation, are one of the greatest assets of an organization. As a collective form of cooperation of individuals, an organization provides reliable support in decision-making, allowing people to connect, creating a special environment. Therefore, when the world changes, the core of the value system of both an employee and an organization should remain well defined. After all, an organization relies upon values, even if these values are situationally applied individual values of managers that coordinate the work of an organization.

Trust, could become one of the core and most fundamental organizational values with deep roots in tradition. An atmosphere of trust within an organization could foster a unique atmosphere of creative freedom and cooperation. In this environment people would create goals for themselves, and work on projects to implement them, creating project groups to achieve them, which would be rewarded depending upon how significant their contribution is to increasing profitability of an organization [8; 9]. Managers could coordinate the work of employees with a more global perspective. No longer coercion within the office and office hours will guide creative-employees, but their own desires, aligned with organizational goals and values [10].

Organizational values play a central role in an organization's capacity for improvement and achieving competitive advantages, as such values define a company's goals, mission, and vision. These values influence the behavior and actions of all employees. By ensuring the commonality of structure, goals, processes and values, organizational values become the basis for directing all efforts towards the organizational development through innovation.

Here are some recommendations on how organizational values can influence an organization's capacity [11-15]:

1. Creation of target orientation. Organizational values establish a clear target orientation of the organization, indicating its main priorities and directions of development. These values become the basis for developing strategies and action plans aimed at achieving common goals.

2. Attracting and retaining talented employees. Organizational values play an important role in attracting talented employees who share common values and the organization's mission. Such employees are more likely to make a significant contribution to the development of the organization and contribute to its growth.

3. Fostering a positive corporate culture. Organizational values serve as the foundation for creating a positive corporate culture that helps attract, motivate, and retain employees. It determines the style of communication, values and norms of behavior within the organization.

4. Increasing employee commitment and engagement. Organizational values, if alive and actively promoted, can increase employee commitment and engagement. When employees see that the organization is acting in accordance with their values, they are more motivated and effective.

5. Promoting innovation and change. Organizational values can stimulate employees to be innovative and open to change. Companies that support a creative approach to work and are open to new ideas have greater potential for development and progress.

6. Determination and restraint of behavior. Organizational values establish standards of behavior that contribute to building trusting relationships, interaction and ethics in the organization. They can serve as guidelines for making decisions in difficult situations.

Thus, organizational values influence every aspect of the organization's activity and contribute to the development of its potential. They create a single focus and are the basis for building a sustainable and successful business.

Conclusions

Organizational values play an important role in shaping the organization's potential. They create a basis for internal culture, promote the recruitment of talented employees, determine the direction of strategic goals and influence all aspects of the organization's activities.

When organizational values are able to produce a positive corporate culture that increases employee engagement and commitment, fosters customer and partner engagement, and drives innovation and readiness for change.

Successful organizations take into account their values when formulating strategic decisions and create a favorable environment for development and achievement of set goals. They actively promote their values among employees and create a team that works in unity and is focused on success.

Therefore, organizational values are a necessary element in the successful operation of an organization that may allow an organization to achieve a competitive advantage in a changing business environment.

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