ashokbhatia

“Carrots and sticks are well alive and well within the change canon, and some businesses forgo the carrots”

The dominant paradigm, particularly in today’s world, is that organizations are there to principally generate shareholder value and profit. When profit is threatened, laying off workers; and when profit is surplus and so is demand, then skill-scale-speed followed by HRs as an optimum variable in the recruitment, has become an uncontroversial norm. In both of these cases, human values take a backseat and that won’t do. While this archetype has been further reinforced by the pandemic, it doesn’t hurt to reevaluate the same while visiting some of the catastrophic consequences in the 20th century that coercion and neglect of human rights had on organizations and nations at large. While the unions and strikes against some marginalisation and enslavement based on extreme structures, like that of the US Plantation Economy or the Atlantic slave trade, have resulted in the enactment of labor laws, formulation of code of conduct and structuring the blueprint of corporates, methods inculcating humanistic values including self-actualization, dignity and purpose are still a far cry.

Organizations might have evolved around structure, policy, culture and technology but the need to centralize business through human intrinsic values still holds relevance. Now is the time that we start devising structural plans to align the present day organizations with human values and most importantly take cognisance of its relevance in all kinds of setups.

The stepping stone to understand the relevance and eventuate the same would revolve around redefining the role of HRs, understanding the core values that remains the same irrespective of the changes in organizational set up, the importance of adhering to the human values in the ever changing world around AI and envisioning the implications on stakeholders outside the organization while formulating any plan.

HR = Human Resilience

Industry stalwarts like Ajeet Bajaj are now defining resilience as an important attribute of HR. In this ever changing dynamic and diversity of the business world, employees are expected to emerge as a winner no matter what. They are expected to manage boundaries, conflicts, transitions, and deliver sustainable results. In short, they are expected to be resilient along with holding competence. However, more than physical and mental strength, resilience is a person’s emotional response to the situation, says Former MD & CEO of National Skills Development Corporation. And to harbour that level of emotional resilience, we can’t expect this term “HR” to be merely referred to as “Human Resources” but there is a need to redefine it as “Human Resilience”, there is a need to see humans as more than just well-oiled machines. HR is a profession that identifies the potential of people, nurtures the talent, facilitates self discovery and incentivises talent multiplication. And all of this is imperative to an organization’s success.

The pandemic however has made HRs respond reactively rather than proactively that further libeled them as “Termination Trays”. To break this notion, it would require organizations to diverge from “profit maximization to value maximization” and to bring about the change, HRs remaining at the very apex of it. This would involve HRs to undertake fundamental research about people in the context of governments, societies, corporate sector, villages, districts, talukas, so that they have a shared vision and value with humans coming from all walks of life. This, in turn, empathetically guides them towards the path of passion-purpose-positivity and revert back the setback brought in by the COVID-19 pandemic through a knack of bringing out the best in them amid crisis situations. And in this process, the resilience and adaptability fostered by human values remains innate as a key functionality in the ongoing digital revolution, an era that surely demands even more inclusivity, employee engagement and innovation. In short, it demands us to be more human.

THE CORE REMAINS THE SAME!

In recent times, we have seen massive changes in the corporate scenario which is an amalgamation of reconstruction driven by the digital revolution. Needless to say, the dimension and scope of hybrid culture, remote work, and most importantly startups gets much larger.

Having said that, there is a greater need for organizations to enhance competitiveness everyday. But, the core principle that makes an organization competitive remains the same regardless of the dimension and its setup. It is mostly a reflection of human characteristics such as adaptability, ethics and resilience.

The increased number of startups and ventures has made the stakeholders enamoured and obsessed with the products and services but the rate of success still revolves around business intent, customer connection, and employee experience. This requires us to make work more relational than transactional. When investors at times push a firm to professionalize and strive to fulfil market demands, companies tend to take a superficial approach and neglect what truly matters to the venture. But the successful examples of ventures like Nike, Netflix, Study Sapuri has taught us that the root of successful businesses can always be traced back to Employee Experience, customer satisfaction and organizational spirit.

The most consistent and flexible of them has been Netflix. It worked relentlessly to retain its soul of helping best content creators around the world get a wider audience and became the best global distributor. It epitomizes the concept of human values and organizational profit going hand in hand while perfectly complementing each other.

And some recent examples like that of the Google employees demanding the tech giant to shelve plans to stifle dissent in China in 2018 show that organizations and employees are still willing to place human values above profit even for the stakeholders outside the ambit of organization. And in today’s world of automation and digitization, we surely need more such examples to set precedents and instill a sense of oneness.

CHANGED MANAGEMENT (AUTOMATION AND ARTIFICIAL INTELLIGENCE)

While the world is leapfrogging towards Artificial Intelligence and Automation, it is incumbent upon us to practice it with utmost care and for the service of humanity and not against it. Some of the notable uses of AI for wildlife conservation or climate change through unmanned aerial vehicles and Machine Learning informatics are truly praiseworthy. But, we need to exercise wariness when we bring AI to the organizational setup. Taking a human centric approach would help the use of AI and automation intelligibly and proportionately. For that, it’s important that we have open and inclusive discussions about human values across diverse communities so as to avoid reinforcing unfair bias and create more innovative and representative uses of AI.

CONCLUSION

All of the three stepping stones including redefinition of HR’s role, Core values, Changed Management and automation help us to delve into the deeper trenches of the relevance and applicability of human values in present day organizations. To further augment all the three, there is a need to democratize businesses in order to envision the implications of our decisions that the stakeholders even outside the immediate sphere of an organization face. This would help us reevaluate some of the disastrous decisions including patent policy, jacking up the prices of life saving drugs and working against environmental protections that the organizations took lately in the light of shareholders profit.

While a transition to this self realization is surely difficult, observers suggest the main deterrence to the transition is our own mindset which is informed by a set of global narrative of how business is supposed to be. It has deepened the narrative of “dog eats dog” as a successful model of business. But, successful models like”Twin win” and “human chain” can be the silver lining to the ever evolving relationship between an organization’s success and the human values it professes.

And let’s remember that business and organization are the places where experience and insights came first and theories later. And in order to keep evolving and formulating new successful theories it is important to treat the significance of human values as being foundational, so as to solidify the ever evolving superstructures including business models and organizational cultures.

REFERENCES

www.investopedia.com/insights/history-of-us-monopolies

Harvard Business Review : https://hbr.org/2019/07/the-soul-of-a-start-up

Uses of AI: https://www.forbes.com/sites/bernardmarr

https://en.wikipedia.org/wiki/History_of_slavery

SHRM, South Asia,

https://blog.shrm.org/sasia/blog/resilience-an-attribute-important-to-hr

• Human Dignity and Welfare Systems: Chicago University Press
• Wilson, On human nature: Harvard University Press
• Humanizing Business : EY
• Kelly Sikkema-Medium.com

https://medium.com/swlh/have-we-overlooked-our-human-values-in-the-business-of-valu e-creation-dc52ef8ff26c

Introducing The Author:

Shreya is 21 years young and a 3rd year Chemistry (Hons) student from Patna women’s college, Bihar. She has been active in the field of debating and speaking and has won awards at both national and international levels.

Some of these are:

1. “international conventional debate, Nimbus, DU” 2020

2. Jashn e abhivyakti, National debate competition, Satyawati college 2021
3. JIMS Kalkaji National Debate, 2021 
4. Evaluation contest winner, Toastmasters International 2020

Besides, she is an avid reader, writer with experience in the field of management, education and writing. She aspires to form a community of like minded people while always striving to learn more. 

Notes:

1. Permission of SPANDAN to reproduce this essay here is gratefully acknowledged.
2. This essay is a winning entry in an Essay Contest organized by SPANDAN recently.

Related Posts:

An Essay Contest on Human Values in Organizations

Human Values in Organizations: An Essay by Vasu Garg (Courtesy SPANDAN)

UNDERSTANDING HUMAN VALUES

Values can be defined as abstract and conceptual beliefs which act as a guideline in the lives of humans and influence the ways in which people and events are evaluated. The values of honesty, integrity, love, and happiness are termed as destination values whereas the values of health, status, intelligence are path values which help attain destination values.

While the destination values remain constant and act as a guiding light towards higher order goals, the path values are temporary and help achieve lower-order goals for humans. Humans are a mix of both types of values which are reinforced by the culture and environment in which they grow.

Where Do Values come from?

Values cannot exist in isolation from society. Every value can be referred to as a ‘goodness’ that exists in one’s mind, which in turn, exists as a sociometer construct that guides both collective and individual action.

Values can be formed biologically, determined by human needs, wants, and desires, and following one’s birth, they are formed from particular social groups, whose core values are determined by its purpose.

HUMAN VALUES AND ORGANIZATIONS

One can hardly glance at the front page of a newspaper without being confronted by a story of misconduct or unethical behavior in organizations. With this world becoming more and more profit centered, the relevance of value-based lens in this world of materialism is getting blurred.

For a vehicle to perform efficiently, it needs both an engine for power and a steering system for guidance. A similar analogy can be applied to any organization as well; the purpose or vision is the engine that propels it forward and the human values act as the steering system which guides it.

Just as it is important to be able to identify with an organization’s purpose, it is also important to align with its values. Organizations that authentically define their values show employees how to align their behaviors with the things that matter to the organization.

MAKING VALUES EFFECTIVE

An organization’s core values only have power when – and to the extent that – the humans in and around the organization feel a connection to them. When human values and organizational values overlap for employees, that’s when they are truly connected to their workplace.

The three ingredients that actually make values effective in an organization setup can be termed as follows:

Make Values Operationalized: Every organization can come up with a fancy set of value system that they follow. However, in order to make it effective it is important that similar values are reflected in the way the organization, its departments, teams and individual employees’ work on a day to day basis, propelled by actions and decisions.

Start from the Top: Leadership group of every organization must live up to the values that they stand for. Developing such value driven organizations always flows from the actions and decisions at the top level. An employee always idolizes his boss, so it is important that people at the top level are able to practice what they preach.

Communicate Values: Using content to communicate one’s value helps to develop a virtuous cycle. The content connects the organization to its values, keeping the values at the top of the mind for each team member when they are making decisions or crafting processes as a part of their daily tasks.

HUMAN VALUES AND RELEVANCE FOR ORGANIZATION STAKEHOLDERS

Values are an indispensable component of a healthy workplace culture. These provide a framework within which the organization can test its decisions, accomplish tasks, and interact with outside stakeholders.

Values and Organization: When organizations explicitly define their values and beliefs, they provide immediate clarity for decision making. Upholding human values helps create boundaries that show staff and clients where the organization is headed to.

A recent study conducted by the World Economic Forum highlighted how the organizations that nurtured a value system making it a part of their brand appeal without being single-mindedly focused on profit making were the ones which actually generated the most value and attained market leadership position.

The best example within the Indian context is that of the Tata Group. The guiding principles of the TATA group evolve from its rich value system and traditions of trusteeship as a way to redistribute the wealth created by the industrial society kept aside exclusively for the benefit of people at large.

Values and Leadership: Many leading thinkers and business practitioners advocate that true leadership is best expressed through the lens of values and beliefs of an organisation’s senior management, which serve to mould the broader organisation’s core identity and mindset. Values distinguish an able leader from a mere instructor.

As per the definition given by Busch and Murdock (2014), value-based leadership is considered as goal-setting, language-creating, problem-solving, and value-developing interaction, which is an integral part of any organization’s human values and very high ethical standards.

Following a value-driven path not only brings about clarity but also facilitates better decision making and goal accomplishment on the part of a leader. Value-driven decision making makes the leader standout and leave an everlasting imprint.

Values and Employees: Any business is as value-driven as the value systems of its individual employees. Value-driven employees not only turn into a long-term asset for the organization but also end up doing well in their lives and careers.

According to Maslow’s Need Hierarchy theory, human needs can be broadly categorized under five categories. Of these, Self Actualization needs come at the top of the pyramid. This clearly highlights how an employee – being a social animal – wants much more than monetary satisfaction.

Various studies show how employees are positively impacted when involved in CSR initiatives or when they follow their value system, rather than when driven by greed. Human values can act as a guiding light towards a better professional and personal life for an employee.

FINAL REMARKS

Business Ethics is a recent buzzword in modern organizations which constitutes the different human values and goes much beyond the materialistic business objective of profitability and growth. As most of the organization decisions are based upon values, the long-term sustenance of any organization is not possible without a robust value system.

With the increasing needs of different stakeholders, the modern organizations demand a more value-based approach of decision making. Value alignment not only helps in better decision making but also help organizations develop a feeling of trust with external stakeholders – like customers – ultimately leading to improved business performance.

Human Values can be considered as the soul of any modern organization. These act like the binding thread that integrates the organization with individual employees leading to holistic growth of the organization and the associated stakeholders.

Introducing the Author:

Vasu Garg (22 Years) is a 2nd-year student at MDI Gurgaon specializing in the field of Finance and Marketing. Prior to this, he completed his B.com (Hons) from Hansraj College, University of Delhi.

Despite no past experience in a corporate environment as a full-time employee, he has gained a certain level of exposure to the corporate world through a range of internships with organizations like Nomura, PharmEasy, UrbanCompany, IIFL, etc.

In terms of hobbies, he is passionate about participating in social work and playing cricket.

Notes:

1. Permission of SPANDAN to reproduce this essay here is gratefully acknowledged.
2. This essay is the top winning entry in an Essay Contest organized by SPANDAN recently.

Related Blog Posts:

Values – the real ‘Soul’ of organizations

An Essay Contest on Human Values in Organizations