1. Where are the boundaries of an organization’s value statement? Should it look
ID: 416706 • Letter: 1
Question
1. Where are the boundaries of an organization’s value statement? Should it look for these values in itself, its immediate business partners, and/or the partners of its partners?
2. Should the value statement of an organization always match the values of its customers?
3. Why is the measurement of productivity more challenging in the provision of services, when compared to measuring the productivity of a goods-producing operation?
4. Why would high productivity not necessarily guarantee competitiveness?
Explanation / Answer
1.
Organization’s value statement is used to inform customers, employees and other stakeholders about its core beliefs, ethical conduct, respect and care for their interest in the organizational activities. It acts as a value driven guidelines that makes a strong impact upon the initiatives taken up by the management of the organization. The core boundary of the value statement belongs to the vision and beliefs of the founder members and organizational policies. Though the boundary is permeable and it is influenced by values hold by the customers and other stakeholders. It is very important for the organization to match its value statement with the values hold by the customers. So, the organization also absorbs the values what is present in the target audience as customers.
Further, the organization also learns from its business environment, regulations and compliances. These factors also affect the value statement of the organization as the organization needs to comply with the regulations. It is not mandatory for the organization to add value that is held by the business partners or the partners of the partners as it depends upon the position of the organization in the value chain. For example, Starbucks applies its own sustainability drive upon the suppliers or vendors in the value chain. So, suppliers and vendors are influenced by the Starbucks value statement and the boundary also increases the values perceived by the company Starbuck. So, there is a scope of permeation of values among the different organization.
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