The paper "Why Every Organization Is Value-Driven" is a perfect example of a business assignment. An organisation is driven by its values. These are the values that are upheld by the management and workers. There are values that exist in organisations that need to be changed. Gary Hamel starts with values in his book “ What matters now” . Values have withered in modern firms. He sees the need for a moral renaissance that will make it possible to ensure that recent lapses in values do not lead to an increased regulatory burden. The management is expected to embrace stewardship approach.
This is through: Fealty-talent and treasures disposed to the management command must be seen as a trust rather than a source of potential gain. Charity-putting other people interests ahead of one’ s own. Prudence-safeguarding the future even in situations where one has to take advantage of the current situation. Accountability-responsibility and being ready for consequences of our actions. Equity-ensuring that rewards are distributed based on contribution rather than power. This implies that business must stop focusing on the utilitarian values which include profit and efficiency. Companies have to change from restricting customers’ choice, exaggerating product benefits, or exploiting customer lock-ins.
This should be changed to increase customer choice and enhanced transparency. The notion that doing good should only focus on business success is wrong. This must be changed through ensuring that customer wellbeing is seen as doing good (Hamel, 2012). Organisations are required to ensure that they rebuild their ethical foundations of capitalism. This is a moral renaissance of the business. The author emphasises that every organisation rests on its morals. There is no force that can erode industry morals more rapidly than the cataract of self-interest.
An organisation is supposed to maximise on the customer’ s choice and rely on the market to allocate resources. The regulatory burden is also supposed to be minimised. The organisation must be willing to treat its employees’ better and not as mere factors of production. Organisations must support a high level of transparency and avoid carrying out business with repressive regimes. The society interest must be taken to the same level as those of the executives (Hamel, 2012). The authors show that wrong values must be replaced with morals.
Organisations must have vision and values. They must humanise the language and practice of management. There is a great need to rebuild the ethical foundations used in capitalism. This is through building the management of the organisations around the values like freedom, transparency and experimentation. There is a need for organisations to ensure that they do not follow unchallenged beliefs. Organisations should accept criticism and ensure that the critics are not demonised. Values that demonise critics must be eliminated. The business main aim should not be only to make money but to enhance the wellbeing of society.
This makes it prudent to ensure that the business does not only look at the profits and loss. It should ensure that it addresses the concerns of the society (Hamel, 2012).
Capello, P. V., & Ravasi, D. 2009. “The variety and the evolution of business models and organizational forms in the Italian fashion industry.” Business and Economic History, Vol.7, p.1-19.
Hamel, G. 2012. What matters now: How to Win in a World of Relentless Change, Ferocious Competition, and Unstoppable Innovation. John Wiley & Sons