AN EMPIRICAL INVESTIGATION DETIIE ; ,

 

RELATIONSHIP BETWEEN VALUE SYSTEMS ; j :5

AND ORGANIZATIONAL EFFECTIVENEss: -.

Thesis for the Degree- ofVPIIZ.’D.l-. :'_‘_:-._ ’ “
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This is to certifg that the
thesis entitled
An Empirical InvesTIgaTIon Of The
RelaTIonshIp BeTween Value SysTems

And OrganizaTionaI EffecTIveness

presented bg
MojTaba KashefI—Zihagh

has been accepted towards fulfillment
of the requirements for

Ph.D degree in Ma nagemenT
(

Business AdminisTraTIon)

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Major professor

Jul 30 I970

 

 

ABSTRACT

AN EMPIRICAL INVESTIGATION OF THE
RELATIONSHIP BETWEEN VALUE SYSTEMS
AND ORGANIZATIONAL EFFECTIVENESS

By
Mojtaba Kashefi-Zihagh

This study was an empirical investigation of the
relationship between value systems and organizational effec-
tiveness. This relationship was implicitly recognized by
the organization and management schools of thought. To
avoid the effects of values on organizational effectiveness,
the Universalist school increased predictability of outcomes
through scientific measures which led to efficiency, pro-
ductivity. and profitability. The behavioral schools devot-
ed more attention to the effects of values in the decision
strategies and related the achievements of an organization
to the behavior of its human elements.

The position in this study was taken that human
value systems. a behavioral factor, have interrelationships
with organizational effectiveness. The problem was defined

as a lack of attention to the employee value systems,

 

Mojtaba Kashefi-Zihagh
absence of attempts to use a multidimensional instrument
for the measurement of effectiveness. and a lack of consider-
ation of a probable interrelationship between value systems
and organizational effectiveness. Although value systems
were recognized as affecting decision strategies, no
attempt was made to integrate this factor with several
factors of organizational effectiveness known to researchers.

The purpose of this study was to eliminate the
above shortcomings through testing three hypotheses rela-
tive to value differences between effective and ineffective
organizations; value patterns of groups stratified by
religion, age. sex. income. and education; and the identi-
fication of values which relate to organizational effective-
ness.

First. an investigation of pertinent literature
relative to values and organizational effectiveness was
undertaken. This literature search identified the extent
to which value systems and organizational effectiveness
were dealt with as independent phenomena.

Second. a research methodology was adopted to in-
tegrate the known factors of organizational effectiveness
with the concept of values. The methodology contained
Rokeach's value survey. an effectiveness questionnaire, and
a set of criteria for the selection of the effective and

ineffective organizations and individuals as the study

 

 

Mojtaba Kashefi-Zihagh

samples. The sample was comprised of 383 managerial posi-

tions in an educational institution, an insurance company,

and

a bank, all in Lansing, Michigan. 245 usable question-

naires were selected for analysis.

The major findings and implications of the study

were 3

(l)

(2)

(3)

(4)

The effective organizations and individuals, within the
limits of this investigation. displayed a pattern of
value systems distinctively different from that of the
ineffective organizations and individuals.

A number of values were identified as the competence
values which gained much importance from effective
organizations and individuals.

Stratification of the respondents by the variables of
religion. sex. age, income. and education showed that
significant value differences existed among various age,
sex, and income groups. The youngamale-middle-income
executives attached more importance to the competence
values than the other age groups. Religion and educa-
tion did not show any significant value differences be-
tween effective and ineffective subjects.

The examination of organizational effectiveness as per-
ceived by the effective and ineffective organizations
indicated that an interrelationship existed between
these phenomena. It was also determined that several

values had no correlation with organizational effectiveness.

 

 

 

 

(5)

(6)

Mojtaba Kashefi-Zihagh

The values interrelated with organizational effective-
ness contained A SENSE OF ACCOMPLISHMENT, SOCIAL RECOG-
NITION, AMBITIOUS, BROADMINDED, CAPABLE, IMAGINATIVE,
INDEPENDENT, INTELLECTUAL. LOGICAL, COURAGEOUS, and
RESPONSIBLE. '

The results indicated that an organization could not be
found with complete homogeneity of religion, age, sex,
income, and education. But a certain configuration of
these variables might lead to higher achievements.
Further studies were_recommended for the deve10pment of
effectiveness measures, stratification of samples, the
effects of religion and formal education on value
changes and organizational effectiveness, and the
relationship between short-term organizational training
methods such as T-Group and the executive value systems
as the determinant factors of organizational effective-
ness. Unless such studies are undertaken, no general

theory of organizational effectiveness can evolve.

 

AN EMPIRICAL INVESTIGATION OF THE
RELATIONSHIP BETWEEN VALUE SYSTEMS
AND ORGANIZATIONAL EFFECTIVENESS

By

Mojtaba Kashefi-Zihagh

A THESIS

Submitted to
Michigan State University
for the degree of

DOCTOR OF PHILOSOPHY

Department of Management

1970

 

Q9 Copyright by
MOJTABA KASHEFI- ZI HAGH

1971

 

 

To
My brother, Mr. Ahmad Kashefi

who has taught me a lot about values.

ii

ACKNOWLEDGEMENTS

It is sincerely recognized that this study would not
have been made possible except for the encouraging interest
and cooperation of many people and organizations. Being
impossible to express my personal appreciation to each of
them, I have selected a list of individuals and organizations
to whom it is my pleasure to give special recognition.

I am indebted to Dr. Bruce P. Coleman, Professor of
Management and Chairman of my thesis committee, who spent
many long hours to improve the quality of this work. Dr.
Coleman's personality influenced my values long before this
study began and extends beyond this single work.

I shall remain perpetually indebted to Dean Stanley
Bryan, Professor of Management and Director of Graduate
Studies, and Dr. Dalton McFarland,Professor and Chairman of
the Department of Management for their invaluable contributions
to this study.

I am grateful to Dr. Milton Rokeach for his guidance
and generous permission for using and inclusion of his "value
survey“ in this thesis. My special thanks go to Mr. Charles

Hollen for the development of the computer program used in

iii

the statistical analyses of the study. It is recognized
that the use of the Michigan State University computing
facilities was made possible through support, in part, from
the National Science Foundation.

I am very grateful to the executives and members of
several organizations under study for their great cooperation.
These organizations,whose names are promised to remain
anonymous, deserve a special recognition.

I am especially grateful to the Government of Iran
and Lt. General Bagher Katoozian for providing me the oppor-
tunity and support to study at Michigan State University. A

Finally, tomy wife, Parvin, who has endured patiently
the lonely hours and inconvenience of having a student husband,

I am really indebted for her understanding and support.

iv

TABLE OF CONTENTS

LiSt Of Tables 0 o o o o o o o o o c o o o
LiSt 0f Figures 0 o o o 0‘. o o o o o o 0
CHAPTER

1. THE PROBLEM OF VALUE SYSTEMS AND
ORGANIZATIONAL EFFECTIVENESS . . .

The Need for Knowledge of Values

The Problem of Value Systems and
Organizational Effectiveness .

2. REVIEW OF THE LITERATURE o o . . o
IntrOdUCtiOn o o o o o o o o o o

A Summary of Literature Relative
Values and value Systems . . .

A Review of the Organizational
Effectiveness Studies . .'. .

Appraisal of Contributions . . .
3. RESEARCH DESIGN . . . . . . . . .
Introduction . . . . . . . . . .

Data Collection Techniques

Nature of the Sample . . . . . .
Method of Analysis . . . . . . .

smary 0 O O O O O O O O O O O

4. VALUE DIFFERENCES AND SIMILARITIES

Introduction . . . . . . . . .

Page

. viii

. 14

. 20

. 52
- 55

. 55
. 68

- 79
. 82

 

 

 

 

TABLE OF CONTENTS (Continued . . .)

CHAPTER Page
Comparison of the Value Systems of the
Most and the Least Effective
Organizations . . . . . . . . . . . . . . . . 8h
Comparison of the Value Systems of More
Effective and Less Effective
IndiVidualsooo00.0000000000090

Comparison of the Value Systems of Two
Different Effective Organizations . . . . . . 9“

Comparison of the Value Systems of Two
Different Ineffective Organizations . . . . . 96

Summary of the Results of Value
Differences and Similarities . . . . . . . .102

5. VALUE SYSTEMS OF THE SUBGROUPS AND THE
GROUP HOMOGENEITY . . . . . . . . . . . . . . .10“

IntrOdUCtiOn O O O O O O O O O O O O O O O O 0 1-0!“V
Analysis of Value Systems of Effective

and Ineffective Organizations Under

Various Category Variables . . . . . . . . .105

Summary of the Analysis of Value Systems
of Subgroups and the Group Homogeneity . . .139

6. CORRELATION OF THE PERCEIVED ORGANIZATIONAL
EFFECTIVENESS WITH THE EXECUTIVES' VALUE
SYSTEMS . o o o . o o o o o c o o o o o . . . . .142
Introduction . . . . . . . . . . . . . . . ...142
Presentation and Analysis of Data . . . . . . .144
Summary . . . . . . . . . . .'. . . . . . . . .161
7o FIELD STUDY RESULTS AND CONCLUSIONS . . . . . . .163
Introduction . . . . . . . . . . . . . . . . .163
Test of Hypotheses . . . . . . . . . . . ... .163
Relationship of Findings to Other Studies . . .168

Some Contributions of the Study . . . . . . . .175

vi

 

TABLE OF CONTENTS (Continued . . .)

CHAPTER

BIBLIOGRAPM O C O O O O O O O O O O O
APPENDICES C O O O O O O O O C

A.
B.

C.

Major Limitations of the Study . . . . .

Summary and Implications for Further
Studyoooooooooooooooo

QUESTIONNAIRES . . . . . o . . . . . . . .

STATISTICAL TOOLS OF ANALYSIS AND COMPUTER
ROUTINE ONEWAY . . . . . . . o . . . . . .

BREAKDOWN OF THE SAMPLE STRUCTURE BASED ON
ORGANIZATIONS . . . . c . . . . . . o . .

vii

 

Page

. .176

178
183
191
191

201

222

 

 

 

TABLE
1.
2.

3.

4.

5.

10.

ll.

12.

13.

1“.

List of Tables

The terminal and instrumental value scales

Sample size . .

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
sections based

Sample structure
of the persons
superiors . .

of the most effective
on religion . . . . . .

of the least effective
on religion . . . . . . .

of the most effective
onsex.........

of the least effective
on Sex 0 O O O I O O O O

of the most effective
GnagGOOoocoooo

of the least effective
onage.........

of the most effective
on education . . . . . .

of the least effective
on education . . . . . .

of the most effective
on income . . . . . . . .

of the least effective
on income . . . . . . . .

based on the effectiveness
as ranked by their

Terminal value medians and composite rank
orders for effective and ineffective
Organizations 0 o o o c o o o o o o o o

 

viii

Page
.62

 

 

 

List of Tables Continued . . .

TABLE
15.

16.

1?.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

Instrumental value medians and composite
rank orders for effective and ineffective
organizatiOnSooooococoa...co

The instrumental value composite rank order
for effective and ineffective groups . .

Terminal value medians and composite rank
orders for effective and ineffective
ihdiVidualSoooocoooooo

Instrumental value medians and composite
rank orders fOr effective and ineffective

individuals.................

Terminal value medians and composite rank
orders for two effective organizations . .

Instrumental value medians and composite
rank orders fOr two effective organizations

Terminal value medians and composite rank
orders for two ineffective organizations .

Instrumental value medians and composite
rank orders for two ineffective organiza-
tions...................

Terminal value medians and composite rank-
orders for the effective organizations
basedonreligiono000000000000

Instrumental value medians and composite
rank orders for the effective organizations

basedonreligion.............

Terminal value medians and composite rank
orders for the ineffective organizations
based on religion . . . . . . . . . . . . .

Instrumental value medians and composite
rank orders for the ineffective organiza-
tions based on religion 0 o o o o o o o o 0

Terminal value medians and composite rank

orders for the effective organizations
basedonage...............

ix

 

Page

. 88

'100

'101

-108

.109

0112

' 113

. 115

 

 

 

List of Tables Continued . . .

TABLE
28.

29.

30.

31.

32.

33-

34-

38.

39.

 

Instrumental value medians and composite
rank orders for the effective
organizations based on age . . . . . . .

Terminal value medians and composite
rank<3rders for the ineffective
organizations based on age . . . . . . .

Instrumental value medians and composite
rank orders for the ineffective organi-
zations based on age . . . . . . . . . .

Terminal value medians and composite rank
orders of values for effective and in-
effective organizations based on sex . .

Instrumental value medians and composite
rank orders of values for effective and
ineffective organizations based on sex .

Terminal value medians and composite rank
orders for the effective organizations
basedonincome.............

Instrumental value medians and composite
rank orders for the effective organiza-
tions based on income . . . . . . . . . .

Terminal value medians and composite rank
orders for the ineffective organizations
based on income . . . . . . . . . . . . .

Instrumental value medians and composite
rank orders for the ineffective
organizations based on income . . . . .

Composite value medians for the effective
and ineffective groups based on income
under $12,000 matched on age and sex . .

Terminal value medians and composite rank
orders of values for effective organi-
zations based on education . . . . . . .

Instrumental value medians and composite
rank order of values for effective
organizations based on education . . . .

X

Page

. . . 116

...119

O O O 120

. . . 122

0.0123

. . 127

. . 128

. . 129

...130

o o c 132

. . . 135

 

 

 

 

 

List of Tables Continued . . .

TABLE

40.

41.

42.

43.

an.

45.

46.

47.

48.

49.

Terminal value medians and composite rank
order of values for ineffective
organizations based on education . . . . .

Instrumental value medians and composite
rank order of values for ineffective
organizations based on education . . . . .

Comparison between effective and ineffective
groups based on opinions expressed about
how the organization has met the employee
eXPGCtatiOnSoooooocoococoon

Comparison between effective and in-
effective groups based on opinions about
whether they would join their organiza-
tionagain................

Comparison between effective and ineffective
groups based on opinions about whether the
employees would spare energy from work . .

Effective and ineffective organizations'
response on satisfaction with training
as matched with their previous .
education................

Comparison of the opinions of the effective
and ineffective organizations whether
they were satisfied with the level of

antonomYInjOboooooocoocooco

Comparison of the opinions of the effective
and ineffective organizations on whether

they were satisfied with their work load .

The effective organizations' composite rank
orders for terminal values and four types
of responders to the question: ”Has the
organization lived up to the expectations

you had before you entered it?” . . . . . .

The effective organizations' composite rank
orders for instrumental values and four
types of responders to the question: ”Has
the organization lived up to the expecta-
tions you hadbefore you entered it?” . . .

 

Page

136

137

145

145

146

148

149

154

155

156

 

 

 

 

 

 

List of Tables Continued . . .
TABLE Page

50. The ineffective organizations' composite
rank orders for terminal values and four
types of responders to the question:
”Has the organization lived up to the
expectations you had before you entered

it?” 0 O O 0 O O 0 O O O O O O O O O O O O O O 157
51. The ineffective organizations' composite

rank orders for instrumental values and

fbur types of responders to the question:

”Has the organization lived up to the

expectations you had before you entered

it?” 0 O l O O O O O l I O O O O O O O O O C O 160
52. Composite rank order of competence values

for effective and ineffective organiza-

tions matched with the ratings they have

made of their organization . . . . . . . . . . 203 g
53. Sample output from routine one way . . . . . . . 204
54. Sample output from routine one way . . . . . . . 205

223

55. Sample output from routine one way . . . . . . .
56. ‘Sample size of the educational institution . . . 223
57. Sample structure of the most effective

department of the educational

institution based on religion . . . . . . . . 224

58. Sample structure of the least effective
department of the educational institution

 

based on religion . . . . . . . . . . . . . . 224
59. Sample structure of the most effective
department of the educational institution 4
22

basedonseXooooooocoooooocoo

60. Sample structure of the least effective
department of the educational institution

basedonSGXOoooooooooooococo225

61. Sample structure of the most effective
department of the educational institution

basedonage.................225

xii

 

 

 

 

 

List of Tables Continued . . .

TABLE Page

62. Sample structure of the least effective
department of the educational institution
based On age 0 o o o o o o o o o o c o o o o o 225

63. Sample structure of the most effective
department of the educational institution

based on education 9 c o o o c o o o o o o c o 226

64. Sample structure of the least effective
department of the educational institution
based on education . . . . . . . . . . . . . . 226

65. Sample structure of the most effective
department of the educational institution
based on income . . . . . . . . . . . . . . . 226

66. Sample structure of the least effective
department of the educational institution

based on income 0 o o o o o o o o o c b o o o 227

227

67. Sample size of the insurance company . . . .

68. Sample structure of the most effective
section of the insurance company based
0n religion 0 o o o c o o o o o o o o o o o o 228

69. Sample structure of the least effective
section of the insurance company based
on religion 0 o o o o o o o c o o o o o o a o 228

70. Sample structure of the most effective
section of the insurance company based on
Sex 0 o o o o c o o o o o o c o o o o o o o o 228

71. Sample structure of the least effective
section of the insurance company based
on sex 0 c o o o o o o o o o o o o o o o o c o 229

 

72. Sample structure of the most effective
section of the insurance company based
On age 0 o o o o o o o o o o c o o o o o o o o 229

73. Sample structure of the least effective
section of the insurance company based
on age 0 o o o o c o o ... o o o a o o o o o o 229

74. Sample structure of the most effective

section of the insurance company based
on education . . . . . . . . . . . . . . . . . 230

xiii

   

 

 

 

List of Tables Continued . . .

TABLE Page

75. Sample structure of the least effective
section of the insurance company
based on education . . . . . . . . . . . . . 230

76. Sample structure of the most effective
section of the insurance company based

onincome...........o.....231

77. Sample structure of the least effective
section of the insurance company based on
income...................231

78. sample 3129 Of the Bank 0 o o o o o o o o a o 232

79. Sample structure of the most effective
branch of the bank based on religion . . . . 232

80. Sample structure of the least effective
branch of the bank based on religion . . . . 232

81. Sample structure of the most effective
branch of the bank based on sex . . . . . . 233

82. Sample structure of the least effective
branch of the bank based on sex . . . . . . 233

83. Sample structure of the most effective
branch of the bank based on age . . . . . . 233

 

 

 

 

 

84. Sample structure of the least effective
branch of the bank based on age . . . . . . 234

 

 

85. Sample structure of the most effective
branch of the bank based on education . . . 234

86. Sample structure of the least effective
branch of the bank based on education . . . 23b

 

87. Sample structure of the most effective
branch of the bank based on income . . . . . 235

88. Sample structure of the least effective
branch of the bank based on income . . . . . 235

89. Sample structure of the more and the less
effective persons of the three organiza-
tions under survey based on the rating
made by supervisors for their effectiveness . 235

xiv

 

 

   

 

 

 

 

 

 

 

 

 

LIST OF FIGURES

FIGURE
1. Decision situations and relevant
Strategies 0 o o o o o o o o o o o
2. Variables to assess an organization

XV

 

- _._._
——_*—~‘—

 

 

 

 

 

CHAPTER 1
THE PROBLEM OF VALUE SYSTEMS AND ORGANIZATIONAL EFFECTIVENESS
The Need for Knowledge of Values

The purpose of this chapter is to define the need for
knowledge of the value systems of organizational members and
to describe the research problem with which this study dealt.
This is performed in two stages.

First, the need fbr knowledge of values and value
systems in organizations is established. This is done by
evaluating existing organization and management theories,
and explaining the effects of values on the decision making
strategies. Then, to illustrate the function of values in
the organization, an assessment of management practice is
made by explaining the levels of organizational responsibil-
ities and differentiating between rationality and effective-
ness.

Second, the need for research on value systems and
organizational effectiveness is identified and the research

problem and approach taken to it are set forth.

Evaluation gf Existing Organization and Management Theories
Proponents of every school of thought in the field'

 

of organization and management have invariably suggested new

1

 

 

 

 

 

 

 

 

 

2

ways and approaches which will, in their opinion, reduce the
gap between projected goals and achieved outcomes.

A brief review of some of these thoughts sheds light
on the problem of values and organizational effectiveness.
Scholars of organization and management have approached pert-
inent concepts by either inductive or deductive reasoning.l
Both approaches, however. present findings that are testable
and observable. The inductive approach has gained popularity
during the twentieth century, and consists of two categories
of studies: 1) Empirical: and 2) Behavioral.

1) Empirical studies have been based upon experiments,
observations and even personal experiences. As a result, a
number of universal principles of organization have been
recommended by such scholars as Urwick, Mooney and Riley, and
others whose works are certainly not of the same genre.2

These principles entail a value judgment and pres~
cribe what ought, should, or even must be done. Normative

approaches like these apply only to means, never to ends.3

 

1
For a discussion of methodologies employed to arrive
at these theories and concepts see: Albert Hicks and Friedhelm
Goronzy, “On Methodology in the Study of Management and Organi-
zation." Academy of Management Journal, December 1967, pp. 371-384.

2
For a review of these principles see: Harold Koontz

and Cyril O'Donnel. Princi 1es of Mana ement, 4th edition
(New York: McGraw-Hill Book Co., Inc., 1968): also Ernest Dale.

Mana ement: Theo and Practice, (New York: McGraw-Hill Book
Co. Inc.. 19695.

For a detail philosophical discussion on the role of
“Ought Propositions” see: A.L. Hilliard, The Forms of Value,

 

 

3
The validity as well as universality of these principles
have been debated by a number of scholars of the behavioral
school of management. They challenge such principles with a
contention that human values. attitudes, and behavior are
influenced by culture and the process of socialization.
They suggest, therefore, that further attention must be paid
to human behavior.“

2) Behavioral studies - the term "behavioral" in
management and organization literature designates at least
three different sets of concepts. First. there are concepts
based on various notions of needs and need satisfaction.
Second, there are concepts, such as those of the Carnegie A
Tech group, based on ideas of goals, goal formation, goal
achievement, satisficing, and bounded rationality. And,
third. there are revealed preference concepts of behavior.5
The above concepts and approaches portray the importance of

the human elements in the accomplishment of purpose in an

 

(New York: Columbia University Press, 1950). p. 139.
1+

Harold Koontz, (ed.). Toward a Unified Theo of
Management, (New York: McGraw—Hill Book Co. Inc., 19%?).

5

For the first type of concepts see the following
source: Bernard M. Bass, Organizational Psychology. (Boston:
Allyn and Bacon, 1965): For the Carnegie Tech concepts see:
Richard Cyert and James March, A Behavioral Theory of the Firm,
(Englewood Cliffs, N.J.: Prentice-Hall, 1963); and the re-
vealed preference theory of choice behavior is fully discussed
in the following sources: Tapas Majumdar. The Mgasurement of
Utility, (London: MacMillan, 1958): Frederick Herzberg, 35 31.,
The Motivation to Work. (New York: John Wiley, 1959): and

 

 

 

 

 

 

)4
organization. What has been neglected, however, is the
effect of the organization members' value systems on organi-
zational effectiveness.

The need satisfaction approach is based on the assump-
tion that persons have certain needs that they seek to satis-
fy. A stimulus (perhaps from a manager) can cause the desire
for need satisfaction to be converted into action or behavior.
Material and moral needs of a person cause a rank-ordering
of objects as to when and how they must be satisfied. In
other words, the importance that a person attaches to all
objects and ideas around him serves as a basis for his be-
havior. A knowledge of the rank-ordering of values may help
managers to adopt appropriate motivational approaches.

The Carnegie Tech group emphasizes that goals of
individuals are translated into organizational goals through
a goal formation process. This is a bargaining procedure by
organization members considered to be members of a coalition.
An essential feature of this approach is the recognition that
full knowledge is not attainable and that individuals can
not achieve full satisfaction. Consequently, individual be-
havior is of a satisficing nature. This approach seems to

occupy middle ground between the normative principles of

 

M. Scott Myers, "Who Are Your Motivated Workers?" Harvard
Business Review (Jan.-Feb.. 1964).

 

 

 

 

 

 

 

"Universalists" and the motivational approach. As was noted,
the Universalist approach has little emphasis on human
values, and the motivational approach is getting close to a
recognition of value systems.

In the revealed preference theory of choice behavior,
such notions as needs and goals of individuals are held to
be not directly observable and, therefore. not admissible
as scientific evidence. Rather, advocates of revealed pre-
ference argue that scientific knowledge must consist entirely
of observable data. Such data are collected through observa-
tions of choice behavior. The recently developed instruments
for value measurement create a circumstance in which the
subject reveals his choice behavior and. thus, the data
collected are observable and testable,

In sum, the schools of management thought can be
chronologically placed along a continuum indicating a greater
need for knowledge of human values as management thought has
developed. Frank Knight points out "a knowledge of values
is a prerequisite to any intelligent criticism of social pro-
cess or results."6 Criticizing the existing theories of
organization and management and attempting to especially in-
clude in them more observable, testable, and measurable facts,

the knowledge of the human values and its effect on total

 

6
Frank Hyneman Knight, The Ethics of Com etition
(New York: Augustus M. Kelley, Inc., 1953), p. £4.

 

 

 

 

 

 

human behavior can lead scholars to the development of a more

integrated organization and management theory.

Effects of Values on the Decision Making Strategies

The need for knowledge of values and value systems in
organizations is further established by an examination of
the effects of values on the decision making strategies.

To illustrate the importance of the human element in
the process of decision making and consequently how the
decision maker's value system influences organizational

effectiveness, Thompson and Thuden7

consider two major
dimensions for every decision: (1) beliefs about cause/
effect relations, and (2) preferences regarding possible
outcomes. This does not mean that both dimensions are con-
sciously considered in every discretionary situation, but
simply that both are operating at some level. These are the
"basic variables" of decision.

Thompson points out ”either variable can take on a
large range of values, but to keep the discussion within
bounds, each variable can be dichotomized and proceeded as
if there could either be certainty or uncertainty regarding

causation, and certainty or uncertainty regarding outcome

 

James D. Thompson and Arthur Thuden. "Strategies,
Structures, and Processes of Organizational Decisions.” in

James D. Thompson 35 gl. (eds), Com arative studies in
Administration, (Pittsburgh, Pa.: The University of
Pittsburgh Press, 1959).

 

 

 

 

8
preferences.” This gives four types of decision issues:

Preferences Regarding

Possible Qutcomes
Certaint Uncertainty
Beliefs about A
I

cause/effect Certain III
relations

 

Uncertain II IV

 

 

 

 

FIG. 1. Decision situations and relevant strategies

Source: From James Thompson, 0r anizations in Action, (New
York: McGraw-Hill BOEEECSESEEyT—IEETT—I9377. P. 135.
It seems clear that each type of decision issue calls
for a different strategy. Where there is certainty regard-
ing both causation and outcome preferences (Cell I), "compu-
tational strategy" is adopted for decision making. Although
it might seem that no decision is required under such circum-
stances. if data are voluminous or formulas are intricate.
the solution is not obvious. This is what Simon9 has termed
a ”programmed decision,” and it is for such issues that

electronic computers have been most widely employed. In this

 

8
James Thompson. Or anizations in Action, (New York:
McGraw-Hill Book Company, Inc., 1937), p. 135.

9
Herbert A. Simon, The New Science of Mana ement Decision
(New York: Harper & Row. Publishers, Incorporated. 1960).

 

 

 

8

case no value judgment of either the decision maker or the
implementer is involved. Routine operations and assembly
line arrangements fall into this category.

Where outcome preferences are clear but cause/effect
relationships are uncertain, (Cell II) "Judgmental Strategy”
for decision making is adopted. Where the situation is
reversed and there is certainty regarding cause/effect but
uncertainty regarding outcome preferences (Cell III), the
issue can be regarded as calling for a "compromise strategy"
for decision making. Finally. where there is uncertainty on
both dimensions (Cell IV), the "inspirational strategy" for
decision making is usually adopted, if indeed any decision
is forthcoming.

There is no doubt that except in Cell I types of
decisions. the decision maker has to use his value judgment.
It is quite likely that an organization is simultaneously
faced with all four situations. Except for the "computation-
al strategies" all other situations are influenced by the
value systems of organization members. If it can be assumed
that each of the four situations may occur with an equal
probability of 25 percent, value judgment can account for 75
percent of an organization's decision. This is of course an
assumption, for the exact number of such decisions varies
with the nature of the organizational objectives.

In brief, this subsection has explained some of the

effects of value systems in decision-making strategies. If

 

 

 

9
these propositions are valid, a knowledge of value systems of
organization members demands further attention, as is speci-

fied in the following subsection.

Asgegsment of Management Practice in Organizations

The discussion so far has established a need for
knowledge of values and value systems by showing that exist-
ing organization and management theories are becoming more
concerned about values and that value systems of the organi-
zation members influence most of the decisions. Now it is
appropriate to ask two questions: (1) Can all levels of
responsibility in an organization influence the decisions
equally? and (2) can the affairs of an organization be so
arranged that no value judgment may intervene with organiza-
tional performance?

Regarding the first question Parsons suggests that
organizations exhibit three distinct levels of responsibility
and control - technical, managerial, and institutional.10
In this view, "every formal organization contains a sub-
organization whose ”problems" are focused around effective
performance of the technical function - the conduct of classes
by teachers, the process of income tax returns and handling

of recalcitrants by the bureau, the processing of material

 

10
Talcott Parsons, Structure and Process in Modern
Societies, (New York: The ee ress of Glencoe, 19 0 .

 

 

 

10

and supervision of these operations in the case of physical
production. The primary exigencies to which the technical
suborganization is oriented are those imposed by the nature
of the technical task, such as the materials which must be
processed and the kinds of cooperation of different people
required to get the job done effectively."11

The second level, the managerial, “services” the
technical suborganization by (a) mediating between the
technical suborganizations and those who use its products -
the customers, pupils, and so on - and (b) procuring the re-
sources necessary for carrying out the technical functions.
The managerial level "controls,“ or administers, the tech—
nical suborganization by deciding such matters as the broad
technical task which is to be performed, the scale of opera-
tions. employment and purchasing policy. and so on.

Finally, in the Parsons formulation, “the organiza-
tion which consists of both technical and managerial sub-
organizations is also part of a wider social system which is
the source of the "meaning,” legitimation, or higher-level
support which makes the implementation of the organization's
goals possible. This overall articulation of the organiza-
tion and the institutional structure and agencies of the

community is the function of the third, or institutional,

 

1
James Thompson, op, cit.. p. 10.

 

 

 

 

11
level of the organization."12

Recalling from Figure 1 (Cell I) clarity of cause/
effect relationship and certainty about preferred outcomes
lead to the computational strategy of decision making. It
can be asserted that the function of the technical level of
organization can be so arranged that the effects of value
systems become insignificant. Doing so requires the removal
of uncertainty as much as possible from its "technical core"
by reducing the number of variables operating on it.
Arrangements in the assembly line and micro-specialization
of tasks are examples of efforts to increase predictability of
outcomes and decrease the effect of human values in organiza-
tional functions. It is apparent, in the case of technical
level of responsibility. that limiting the functions of
organization to automation and minimizing the human elements
results in predictability of organizational performance.

But, managerial level of organization which is in a
constant contact with unpredictable external environment in-
evitably uses its discretion in decision making by adopting
“compromise, instrumental, and judgmental strategies."
Therefore, the influence of value systems becomes apparent as
the level of management rises.

In short, an organization consists of two internal

levels of responsibility - technical, and managerial - and

 

12
Most of this discussion has been adopted from:
James Thompson, op. cit., pp. 10-11.

 

 

12

an external level called institutional. The value systems
of the three levels do not have equal influence upon the
decisions and performance of the organization. The lower
level, the technical core, can have minimum discretionary
functions provided its variables are minimized. The dis-
cussion now calls for a response to the second question:
Can the affairs of an organization be so arranged that no
value judgment may intervene with organizational performance?
As a first approximation, a distinction must be
drawn between rationality and effectiveness. An assessment
of the practice of management during the first half of this
century indicates that managers, in trying to apply the
principles of organization for a better achievement, seem
to have resorted to the concept of rationality rather than
effectiveness. Herbert Simon defines rationality as a
phenomenon "concerned with the selection of preferred be-
havior alternatives in terms of some system of values where-
by the consequences of behavior can be evaluated."13
Disregarding value preferences of the employees,
rationality has a close relationship with total organizational
effectiveness. In this View an organization is assumed to
be a close system with a few internal variables that are all
controllable and thus no gap exists between projected goals

and preferred outcomes. This is not the case in practice.

 

13
Herbert A. Simon, Administrative Behavior, (New
York: The MacMillan Company. 1958 . p- 75-

.. ma :1. "...--44- U A

 

 

 

 

13
Organizations are open systems comprising socio-technical
elements.lb They contain both human and nonhuman resources
or facilities. The number of variables of an organization
are determinate by nature, but our incomplete understanding
of all of the intervening variables forces us to expect
surprise or the intrusion of uncertainty. Rationality and
predictability, as was discussed in the previous questiOn,
can be introduced to the technical level of organizational
responsibility and the results could be projected and
measured by efficiency tests.

But efficiency is not all that is expected from an
organization.15 Peter Drucker points out that "during the
past hundred years we have learned how to measure efficiency
and how to define quality of work. Efficiency is most needed
in the lower levels of organization. For manual work we
need only efficiency, that is the ability to do things right
rather than the ability to get the right things done."16
Considering the fact that automation has, in part, replaced

the manual worker, and at the same time increased the

 

14
E.L. Trist and K.W. Bamforthz “Social and Psycho-
logical Consequences of the Longwall Method of Coal-Getting,"
Human Relations, Vol. 4, Feb. 1951, pp. 3-38.

15
Etzioni defines efficiency as a phenomenon
"measured by the amount of resources used to produce a unit

of output." See: Amitai Etzioni, Modern Or anizations,
(Englewood Cliffs, N.J.: Prentice-Hall, Inc., 19555, p. 8.
16

Peter Drucker, The Effective Executive, (New York:
Harper and Row Publishers, l9 7 , p. 2.

 

 

 

 

 

in
efficiency it must be noted that managerial positions still
remain and, in effect, increase in number in various organi-
zations. Also considering the increased attention that has
been paid to organizational members' values and attitudes by
the behavioral schools of thought, one realizes that
"efficiency" and "rationality" can only measure and perhaps
satisfy the economic needs of an organization and its members.
With the recognition of the role of human elements in the
accomplishment of the purposes of an organization there remains

no doubt that effectiveness.l7

which not only considers
efficiency, productivity, and profitability but is intended
to achieve all organizational goals including the employee
satisfaction, should no longer be neglected.

In sum, the affairs of an organization can not be so
arranged that value systems do not influence organizational
performance. Organizations contain human and technical ele-
ments in their systems. All tasks can not be rationalized,
and thus effectiveness, which takes into account economic and
technological variables as well as human values, should
replace rationality and efficiency as a more complete concept.

The Problem of Value Systems and
Organizational Effectiveness

 

Need for Research

Organizational effectiveness has attracted a lot of

 

attention during the past several decades. Volumes have been

 

l7Etzioni defines effectiveness of an organization as

 

 

 

 

15
written on the methods and patterns of management, the traits
of managers, and the environment for effective performance.

The forces of competition among the industrially
advanced countries of the world, as well as the companies
within an industry, have accelerated the search for efficiency,
effectiveness, and optimality. In fact, the survival and
the expansion of business organizations have become, to some
extent, dependent on the phenomenon of "effectiveness."

What has been neglected is the impact of value
systems on the total accomplishment and goal achievement of
an organization. Fortunately, the refinement of propositions
of the studies concerning human behavior and attitudes has
resulted in the emergence of a number of concepts that have
been synthesized, correlated, and further developed by re-
searchers. For example, the Michigan studies on the relation-
ship between attitudes and productivity, morale and effect-
iveness, productivity and satisfaction, and the extent of
supervision and efficiency established a basis for the
observation of several interrelationships that were finally
synthesized by Rensis Likert in the "supportive relationships"

theory of management.18 The Ohio State studies of leadership

 

the degree to which it realizes its goals. See Amitai
Etzioni, op. cit., p. 8.

18

Rensis Likert, New Patterns of Mana emepp, (New
York: McGraw-Hill Book Co. Inc., 19515.

 

 

 

16

also opened the gates for further study on the traits of
managers and leaders, the effects of various leadership
approaches on the performance of organization, and the develop-
ment of situational leadership model by Fred Fiedler.19

Also many studies have been conducted on value systems; value
changeszozand value differences among groups such as police

21
and policed, Catholics and Protestants,22

and politicians
and constituents.23

The studies on values are conducted on the basis of
a single variable like sex, religion, or social class. To
study groups in the light of several variables combined such
as age, sex, religion, education, and income, research is

needed to synthesize various concepts of values and attitudes.

Also numerous studies in the area of organizational

 

19
Fred E. Fiedler, A Theo of Leadershi Effective-
ness, (New York: McGraw-Hill Book Co. Inc., 19575.
2

0

Paul L. Whitely, "The Constancy of Personal Values,"
Journal of Abnormal and Social Ps cholo , Vol. XXXIII (July,
I9335-

21
Milton Rokeach, Martin Miller, and John Snyder, The

Value Ga Between Police and Policed, (Unpublished manuscript,
MSU Department of Psychology}.

22
E.D. Tate and G.R. Miller, ”Differences in Value
Systems of Persons of Varying Religious Orientations," Journal
for the Scientific Study of Religion, Winter 1970.

23
Milton Rokeach, "The Role of Values in Public Opinion
Research,” ublic Opinion Quarterly, 1968-69, Vol.32, pp. 5&7-559.

 

 

1?

effectiveness have set the stage for a comprehensive study.

The need for a study of the effects of value systems
of several groups on organizational effectiveness provided
the impetus for this study. The foregoing studies and
quotations are all suggestions of concern in the broad area
of value systems and organizational effectiveness. The field
of behavioral studies lacks research that views the phenomena

of values and organizational effectiveness simultaneously.

The Research Problem

 

Having established the need for knowledge of value
systems and the importance of organizational effectiveness,
the problem of this research must be defined. The problem
was a lack of attention to the employee value systems as a
probable factor affecting organizational effectiveness, and
synthesis of the existing factors and measures of organiza-
tional effectiveness.

Three shortcomings, therefore, were discovered in the
works relating to organizational effectiveness: (1) neglect
of the employee value systems: (2) absence of attempts to
use a multidimensional instrument for the measurement of
organizational effectiveness; and (3) lack of consideration
of a probable correlation between value systems and organiza-
tional effectiveness.

Relationships have been already established between
economic needs and productivity: rationalization of tasks

and efficiency; and effectiveness and morale, attitudes, and

 

 

 

18

job satisfaction. No evidence, however, exists that these
factors are integrated and correlated with values and value
systems. Also, little attention, if any, has been paid to
the value differences among groups of business organizations
and the reasons for such differences. In this respect
several questions have never been asked:

(1) Do the members of an organization have value
differences or similarities?

(2) What are the bases for such differences or
similarities?

(3) Is there a certain type of value system or a
certain group that can affect the overall level
of organizational effectiveness?

(4) Do organizations that are known to be effective
contain members who have not only value differ-
ences with the members of ineffective organiza-
tions but possess certain value systems that
lead to higher levels of accomplishment?

The value system and organizational effectiveness
research problem was to eliminate the above shortcomings and
to answer these questions. The approach taken to the problem
was to develop and examine several hypotheses as follows:

Hypotheses

(1) Organizations and executives that are rated
”effective” have a pattern of values that is
distinctively different from that of organiza-

tions and executives that are rated "ineffective."

 

 

 

 

19

(2) Organizations that have homogeneous age, sex,
religion, income, and educational groups are
more likely to have value similarities than
organizations which do not have such homogeneity.
Therefore, the more homogeneous the organiza-
tion the more value similarity it will have,

and the more effective it will be.

v

(3 Value systems correlate significantly with the
perception of organizational effectiveness.
Therefore, a set of values can be identified
that affect the level of organizational effect-
iveness.

The next step was to investigate the literature to
determine the extent to which existing theory and practice

dealt with problems of value systems and organizational

effectiveness. This investigation is presented in Chapter 2.

 

 

CHAPTER 2
REVIEW OF THE LITERATURE
Introduction

Two purposes guided an intensive search of literature
pertaining to values and organizational effectiveness. The
first was to determine the extent to which the shortcomings
in understanding and knowledge of values and organizational
effectiveness were filled. The second was to cumulate from
recorded sources ideas and concepts for the formulation of a
research methodology that synthesizes the factors affecting
organizational effectiveness. Since the study involved two
different phenomena (i.e., values and value systems, and
organizational effectiveness) literature sources were
selected to assure thorough coverage and expertise in both
areas. The principle topics investigated were value typology:
value theory; value sources: the role of values in human be-
havior; values of organized groups: assessment of organi-
zational and individual effectiveness, productivity, morale,
conformity, adaptiveness: institutionalization; bureaucracy:

autonomy: leadership methods; organization structure; and

20

 

 

21

job satisfaction. This chapter presents the results of that

search.

A Summary of Literature
Relative to Values and Value Systems

Values and Value Systems

A review of the literature of value research reveals

three themes:

(1)

(2)

(3)

The

Attitudes and values are often confused with
each other.

Attempts have been often made to determine how
values evolve and affect a person’s behavior.
Attempts have been made to develop tools for
measuring values.

focus of this section is on the first two themes,1

and includes brief discussions of the following:

(1)

(2)
(3)
(4)
(5)
(6)

A working definition to differentiate between
"attitudes" and "values."

Kinds and sources of values.

Significance and validity of value research.
Values as major determinants of human behavior.
Values of the executives.

Dominant values of the organization.

 

1
The last theme is the subject of Chapter 3.

 

 

22

Differentiation Between Attitudes and Values
Social psychologists and management scholars have
long sought the attitudes towards work rather than the
values underlying the behavior of the employees. As Milton
Rokeach2 has pointed out that over the past fifty years
empirically-oriented social scientists have paid consider-
ably more attention to the theory and measurement of atti-
tudes than to the theory and measurement of values. This
greater emphasis on attitudes is due to two reasons:
(1) Rapid development of methods for measuring
attitudes,
(2) Vagueness of understanding about the conceptual
differences between values and attitudes.
Gordon Allport remarked as long ago as 1935: "The
concept of attitude is probably the most distinctive and
indispensable concept in contemporary social psychology.
No other terms appears more frequently in the experimental

3

and theoretical literature."

 

Milton Rokeach, "The Measurement of Values and Value
Systems," A mimeograph by MSU Department of Psychology to be
published in: G. Abkariam (ed.). Politippl Participation

and Social Psychological Processes, (Columbus, Ohio: Charles
E. Merril, 1970 , p. l.

3

Gordon Allport, Attitudes: A Handbook of Social
Ps Cholo , (Worcester, Mass.: Clark University Press,
1935), p. 798. As quoted by Milton Rokeach in the Public
Opinion Quarterly, Vol. 32, Winter 1968-1969, p. 5&9.

 

 

 

23

One reason that value systems have not been taken
seriously in the studies of social psychology and management
is probably the difficulty of differentiation between values
and attitudes. One way to make such a differentiation is to
see how these two phenomena have been defined. Rokeach de-
fines an attitude as an enduring organization of several be-
liefs focused on a specific subject (physical or social,
concrete or abstract) or situation, predisposing one to res-
pond in some preferential manner}L Values, he continues, on
the other hand, transcend specific objects and specific
situations: values have to do with modes of conduct and
end-states of existence,

More formally, to say that a person "has a value" is
to say that he has an enduring belief that a particular mode
of conduct or a particular end-state of existence is person-
ally and socially preferable to alternative modes of conduct
or end-states of existence. This formal definition of value
accomplishes two things: it distinguishes value from atti-
tude, and it avoids at the same time such difficult terms as
”ought," "should,” or “desirable."

So defined, a value is a standard or criterion that
serves a number of important purposes in our daily lives:
it is a standard that tells us how to act or what to want:

it is a standard that tells us what attitudes we should hold;

 

4
Milton Rokeach, op. cit., p. 550.

 

 

24
it is a standard we employ to justify behavior, to morally
judge, and to compare ourselves with others. Finally, a
value is a standard we employ to tell us which values. attio
tudes and actions of others are worth or not worth trying to

influence.

Kinds and Sources of Values

Kinds of values

 

Psychologists and philosophers believe a person has
a variety of values. Rokeach categorized and enumerated over
700.5 Hilliard classifies them in twenty four modes.6 For
the purpose of our discussion, however, I will employ and
discuss two sets of values in general.

There is a unanimous agreement among psychologists
and philosophers on the existence of two sets of values in a

person. They are, namely, terminal values, and instrumental

 

values. Terminal values are representative of our beliefs
on such matters as salvation, equality, freedom, and happi-
ness, These are oriented either toward "other worlds” or

other people. On the other hand, instrumental values

 

5
Milton Rokeach, ibid., p. 5.

6

To reserve space I will not discuss the qualifying
adjectives of value, twenty four modes of value, and the
theories of values by Kant, Hobbes, Schopenhauer, and other
philosophers. I will refer interested readers to: A.L.
Hilliard, The F rms of Value, (New York: Columbia University
Press, 1950 , also John Laird, The Idea of Value, (Cambridge:

 

 

25

represent our beliefs on the modes of conduct. It is our
instrumental values that dictates to us whether to behave

responsibly, honestly, and or courageously.

Sources of values

 

A question is often asked whether the roots and
locus of values can be traced. The literature provides same
inconclusive answers. Melvin Rader mentions two factors that
generate individual values: the culture, and groups in which
the individual has association.7 The factors are invariably
called dominant values and variant values. The dominant
values of a person are all determined by his culture and,
thus influence his behavior. The variant values have so
much to do with the way a person rank-orders them. This
force, inevitably brings about variations in individual be-
havior, which is not necessarily much different from the
other people with the same dominant values.

The dominant values are exemplified by the Protestant
Ethic in some western societies and exhibits itself in self-
discipline and work, initiative and acquisition, and

individualism and competition. The dominant values in a

 

The University Press, 1929: and Wolfgang Kohler, The Place
of Value in a flgrld of Fact, (London: The New American
Library, 1966), pp. 38-58.

7
Melvin Rader, Ethics and Societ , (New York: Henry
Holt and Co., 1950). pp. 123-158. ___._x

 

 

26

Middle Eastern culture is demonstrated by attitudes of
deferred satisfaction, limited work and much attention to
the other world. These people maintain that man should work
to the extent that a minimum living is obtained. He has,
on the other hand to spend the rest of his time in praying
to the Creator. These two examples of the dominant values
are a contrast of what Riesman pp pl call "other-directed,"
and "inner-directed" man.8

These authors point out a transition in the concept
of the Protestant Ethic and the dominance of "peer group"
values. Modern day man, or, the other-directed person, be-
comes accultured largely by peer groups. He looks to his
contemporaries for guidance and direction. His most import-
ant values are those which are also important to the peer
group. The other-directed person guides behavior through
the complexities and intricacies of modern life by picking
up cues from the environment with an internal "radar"
device. Lack of conformity or wrong-doing brings on anxiety
for fear that he may lose the love and approval of others.9

The variant values of a man (which is rank-ordering

of his values) are acquired through the process of

 

8
David Riesman, Nathan Glazer, and Ruel Denney, The

gonely Crgwdl (Garden City, New York: Doubleday Anchor Books,
1950 . pp- 29-40.

9
Ibido. pp. “1‘42.

 

 

 

2?
socialization. Variant value systems are acquired, modified,
completely changed throughout one's entire active life by
access to different socializing agents. Family, school,
peer groups, and professions mold the man's value system.10
If we can conclude that peer-groups are changing the organi-
zation man's dominant and variant values, as stated above,
we may well claim, as we have hypothesized, that organiza-
tional values can be traced and observed in order to find
out probable relationships between them and the degree of the

effectiveness of the organization.

Sigpificance and validity of value research

Philosophers had claimed, for a long time, that the
study of values falls within the domain of their discipline.
Advances in the research methodology of social sciences,
and the refinement of their propositions has brought, since
the beginning of the twentieth century, the value research
in the field of behavioral sciences.11 Social psychologists,
12

educators, sociologists, and recently, management scholars

are conducting extensive empirical research on values and

 

lO
Gertrude Jaeger Selznick, Leonard Broom, and Philip
Selznick, "Socialization," Sociolo , 2nd edition, (Evanston,
111.: Row, Peterson and Co., 1953;.

11
See John Dewey's hypothesis that value-facts belong ;
to behavioral science. Ray Leepley (ed.). ValuesI A Coopera- ‘
tive Inguipy, (New York: Columbia University Press, 19U9), p.6u. '

12
See Richard Ericson, "Organizational Cybernetics

 

 

 

28
value systems. The transition began with the authoritative

works of John Dewey and his followers. The research of
values was brought into the realm of empiricism.

The study of the human organization and especially
the work of Herbert Simon ended the duality and separated-
ness of facts and values, and based each and every decision
on the premises of value in as much as the selection of an
alternative is concerned, and the facts in as long as the
implementation of a decision is involved.13 Behavioral
studies indicated that there is a significant relationship

between values and behavior.lu

Being relatively accepted as
a behavioral phenomenon, values then like other behavioral

topics are subject to observation, experimentation, and test.
With the many research methodologies developed by the social

scientists it has been proved that values and value systems

are researchable.

Values as major determinants of hgman_behavior

Studies on how values guide and affect a person's

 

behavior are relatively vague. There are various theories

and Human Values," Academ of Mana ement Journal, Vol. 13,
Number 1, March 1970, pp. 9- 5.

13 .
See Herbert Simon, op. cit.

14
See Milton Rokeach, ”The Role of Values in Public

Opinion Research.” The Public 0 inion uarterl Vol. 32,
Winter 1968-69, p. 535: Ilsa Myron Bill Neace, %npublished

 

 

 

 

 

29
that try to establish a close relationship between values
and human behavior. For example, Cora DuBois subjects the
individual and group behavior to two interacting forces:
values and situation.15 A person acquires his values through
his cultural and social experience. Personality factor also
plays a great role in acquisition, variation and discording
of the values. It is a life long process of acquisition

which never breaks away from the culture.16

Every person
develops a conception of what is good, bad, real, right,
wrong, etc. These conceptions become his guiding light and
operate as a control system behind his behavior.

Studies indicate that value differences exist when
different subcultures, religions, races, sexes, ages, life
styles, and political and socio-economic conditions have been
considered.

Values determine a person's behavior, his choice of

alternatives, the areas of his interest and his thought.17

i

dissertation, M.S.U. Value S stems and Meanin s of Market-
place Activities (19675. '

15
Cora DuBois, "The Dominant Value Profile of Ameri-
can Culture," American Anthropologist, Vol. LVII (Dec. 1955).

16
See William Catton, "A Theory of Value", American

Sociological Review, Vol. XXIV, (June, 1959).

17
Allison Davis, ”American Status Systems and the
Socialization of the Child," American Sociological Review,
Vol. VI (June, 1941), p. 368.

 

 

 

30

Every decision he makes entails a selection process by which
something is included and something is excluded. His
relationships with the others, his opinions about a job, and
in fact, his desires for a profession are guided by his
values. This theory postulates that whatever a man per-
forms comes from "values." Therefore, values determine our
reactions toward any situation and furnish us with a set of
norms and standards to cope with different situations.

An interesting point is that our values are not so
rigid. They can, due to circumstances, take flexible shapes
and resolve their inner-conflicts. As Rokeach points out
"over and above the functions served by each value consider-
ed alone as a separate standard, the function of a person's
value system is to help him choose between alternatives and
to resolve conflicts between alternatives in everyday life.
Given any situation a person may find himself in, it is all
but impossible for him to behave in a manner that is equally
congruent with all of his values.

The situation may activate one value more strongly
than another. A person may, for example, sometimes have to
choose between behaving truthfully or behaving kindly, but
not both, or between behaving courageously or behaving
patriotically, but not both.”18 Amazingly an adjusted and

adapted person can easily resolve such conflicts within his

 

18
Milton Rokeach, op. cit., p. 55.

 

31

value system. The lack of such capability, of course,

results in frustration.

Values of the executives

 

In an organizational society, the executive occupies
a significant place. He is the subject of many studies.
His leadership traits. his management approach, and every-
thing he does has led researchers to some behavioral propo—
sitions. The executive has been viewed as an actor, a
catalyst, a guardian, a friend, owner, technician, and a
person.19 He has been held responsible by the Government,
stockholders, entrepreneurs, clients, subordinates, etc. as
his behavior has been considered to affect the condition of
environment as well as the well-being of many groups of
people.

AlthOugh the executive, as a person, has acquired
his values and therefore makes his decisions accordingly,
The social psychologists have attempted to shift his values.
This attempt has been exhibited through laboratory training
under a variety of names such as sensitivity training, T-
groups, etc. The executive has been advised to learn and

adhere to a certain code of conduct.20

 

l9
Herbert Snothoff, ”What is the Manager?“ Harva rd

Business Review, Vol. XLII (November-December, 1964), pp. 29-26.

20
William H. Whyte. The Organization Man, (New York:
Simon and Schuster, 1956) also Alan Harington, Life in the
ngstal Palace (New York: Alfred A. Knopf, 1959 .

 

 

32

The executive's religious values and the economic
prosperity of the United States have been often correlated.
The Protestant Ethic has been diagnosed as the most important
factor to attain such prosperity. This has been, however,
debated by some authors who suggest that as capitalism be-
comes the dominant and pervasive economic order, religious
values will decrease in importance and lose their impact.21
Others disagree, and warn that the loss of religious values
has left a philosophical vacuum in the business world. They
contend that religious values can and should provide the
underpinnings for decision-making in the business world as
well as in other areas of life.22

Social responsibility, political trends, and economic
competition have impact on the values and codes of conduct
of the executives. The literature advocates that the business- 3
man and his organization should pursue policies and make
decisions in light of the objectives and aims of society.

In other words the personal values of the executives must §

support those of the society, and the support should be

voluntary. i

 

21
Max Weber, The Protestant Ethic and the Spirit of
Capitalism, Trans. by Talcott Parsons (New York: Charles
Scribner s Sons, 1958): pp. 181-182.

 

22
Kenneth E. Boulding. "Religious Foundations of
Economic Progress," Harvard Business Review, Vol. XXX (May-
June: 1952)! p0 no-

 

 

 

 

 

 

33
Dominant Values of the Organization

Although the value systems of organizational members
are different to some extent, organizations respond to the
urgings of the society by developing codes of conduct for
their members. By and large, codes of conduct establish
value-standards of behavior and are self—enforced. The
organizational code of conduct depicts one side of the coin
in as much as it dictates what kind of values should exist
in the organization. The other side of the coin concerns
the extent of communality of the executive value system that
lg present.
The literature of values is not rich in studies per-
taining to communality of values in an organization. It,
however, contains recommendations that executives should, a
matter of value by itself, become cognizant of the values of
their subordinates.23 Also, studies of informal organizations I
and interest groups have not looked at problems of value con- I
gruity or divergence.
The process of integration of man and organization
has been given some thoughts by the scholars of management
and organization. Bakke explains how a man joins an organi-

zation to satisfy his personal needs in the exchange of

 

23
Robert McMurray, ”Conflicts in Human Values."
Harvard Business Review, Vol. XLI (May-June, 1963).

 

 

 

34

satisfying some of the needs of the organization.2b

This
is. in practice, a mutual need satisfaction of the members
of a contract. As long as they view each other as worthwhile.
they will continue their cooperation. The studies on the
integration of man and organization have never contemplated
the variable of value systems. In such contracts, is there
a mutually exclusive set of values inherent in their
relationships? If so, does that contribute to the effective-
ness of the organization? These are the questions that have
never been answered.

Apparently, a society cannot remain healthy or

creative unless it has common values that give meaning and

 

purpose to its existence. These common values provide the
necessary stability in a dynamic environment. This is
necessary for the continued functioning of‘a system.25
Organizations that are social systems are no exception to
this necessity.

As noted earlier. organizations place much emphasis
on predictability and rationality of the organizational
functions and outcomes. Therefore, consideration of the
common values held by the members of an organization can be

a good determinant of their behavioral activities. This

 

2U
For the description of Bakke's fusion process see
Ernest Dale, op. cit.

25
Lloyd Warner and Norman Martin (eds.), Industrial
M32: (New York: Harper and Brothers, 1959), p. 8.

 

 

 

 

 

35

knowledge, in turn, can increase predictability.

 

§ppmgpy of Values gpd Value Systems

Attitudes and values are often confused with each
other. Attitude is an enduring organization of several be-
liefs focused on a specific subject or situation, whereas
values transcend specific objects and specific situations.
People have, in general, two types of values: terminal and
instrumental. These values are acquired through culture and
socialization. The culturally affected values are dominant
values and those acquired through socialization are variant
values. Development of research methodologies has brought
values and value systems within the realm of empiricism.

Values are believed to be the major determinants of
human behavior. Executives as well as organizations. there-
fore, have value systems which guide their performance. Be-
ing influenced by the executive value systems, the effective
performance of individuals and organizations are. at the
same time affected by other factors as identified by the
scholars of management. The following section presents

their findings.
A Review of the Organizational Effectiveness Studies

The current information about effectiveness is so
diverse and disorganized that the interested individual en-
counters immense difficulties. The first symptom is that a

great number of studies on organizational effectiveness have

 

 

 

 

 

 

 

36

been conducted with a variety of standards. methodologies.
and scales. Since there is no consensus on a standardized
measure of effectiveness. the studies range from the treat-
ment of one variable such as attitudes toward work to multi-
variables like profitability. productivity. and morale.

The literature of the measurement of organizational
effectiveness centers around two themes:

1) Effectiveness of the organization as a whole.

2) Effectiveness of the organization members as in-

dividuals.

Effectiveness of the organization as a whole

Effectiveness, whether of the organization or indi-
viduals, is the degree to which goals are achieved. For
example. a university which has an educational goal. which
provides a high quality of education, and supplies the
society with highly educated people, would be considered an
effective organization. As it is known from the definition
of effectiveness. organizational goal determination26 would
be a crucial factor in evaluation of organizational effective-
ness. Strategy determination and goal setting have been
treated in extensive volumes by the scholars of management

and organization. What is vital to this discussion is an

 

26
For a discussion on the methods of goal determina~
tion and implementation see: Amitai Etzioni, op cit.,
pp. 7-8 and 25-26.

 

 

 

 

 

 

 

37

understanding of the way the executives choose one from among
many alternatives that lead to success. to goal achievement,
and to effectiveness. What is the element that dictates to
executives the selection of one alternative despite the facts
that are available on each case?

A search through the literature on organizational
effectiveness opens a big treasure of studies which have
measured the phenomenon of effectiveness by the yardsticks of
productivity, morale, conformity, adaptiveness, and insti-
tutionalization. James Price27 has compiled fifty studies.
concerning organizational effectiveness. Every study bases
the effectiveness on a certain variable and uses different

measures. The following is a discussion of these variables:
Profit Maximization Model

Evaluation of organizations has usually been based
on the degree of accomplishment of purposes. Therefore. in
the case of organizations engaged in the private sector of
the economy and under the norms of rationality, the only cri-
terion for the measurement of effectiveness is maximization
of profits. There is a close relationship between maximiza-
tion and productivity. Productivity in turn, is related to

efficiency. For, if we define efficiency as the ratio of

27
. James L. Price. Organizational Effectiveness: An
inventory of pro ositions, (Homewood, 111.: Richard D.
Irwin Inc., 1968).

 

 

 

 

 

38

output to input,28 the term productivity will correspond very
closely to this definition. Such definition and measure-
ments purport only one aspect of goal achievement. that is,
economization of resources. What has been controversial is
the effect of so many variables such as machines, procedures,
and manpower, that has made the outcomes - the degree of
goal achievement - somewhat unpredictable. Thus. maximiza—
tion has been challenged by those who believe organizations
sacrifice or seek to attain acceptable or desirable states.29
Therefore. in the discussion of effectiveness, the litera-
ture draws a borderline between what should optimally be
obtained and what can be achieved within bounded rationality.

It is with this borderline that the researcher is
led to the standards of measurement. There are two major
contributions to the study of the variables of effectiveness
measurement. One is the work of James Thompson and the
other an inventory of effectiveness propositions by James

Price.

 

28
John W. Kendrick, Productivity Trgpd in the United
States, (Princeton, N.J.: Princeton University Press. 1961),
p. 3.

29
Herbert A. Simon, "Models of Man, Social and
Rational," in Administrative Science Quarterly, Vol. 9, June
1964, pp. 1-22. See also the following references: James
G. March and Herbert A. Simon. Organizations, (New York:
John Wiley & Sons. Inc., 1958) - Richard M. Cyert and James

G. March, Behavioral Theor of the Firm. (Englewood Cliffs.
N.J.: Prentice-Hall, Inc., 1953) - W.J. Baumol, Business

 

39

In the assessment of organizations,30 Thompson
alludes to two variables: (1) standards of desirability,
and (2) beliefs about cause/effect relationships. By the
former is meant the state of affairs that the organization
intends to reach: the latter, indicates the effects of causal
action. Standards of desirability have very much to do with
what I have started this study with, that is the value system.
A normal person‘s values, in general, give preference to
success over failure, and rationality over irrationality.
This value system would always seek those goals and objec-
tives that are Optimal if it were to rely on a single cri-
terion such as profit. In reality, an organization operates
to satisfy several goals. often incompatible, on the basis
of interaction among economic, technological, political-
legal, social, and human variables. Where there is no
choice to drop any goal, or to neglect any variable as such,
the task of selection of an appropriate level of satis-
faction in each area becomes difficult.

Basing organizational effectiveness on one standard,

as the conventional accounting methods of profitability and

Behavior Value and Growth (New York: The MacMillan Company,
I959) - J. Margolis, “The Analysis of the Firm: Rationalism,
Conventionalism, and Behavioralism," qurnal of Business,

V01. 31, July,1958, pp. 187-199.

30
Most of our discussion in this section will be
based upon these two works: James D. Thompson, op. cit.,
chapter 7 - and James L. Price, op. cit.

 

 

 

 

 

 

 

 

 

40
success does for the companies today. makes the task of
measurement rather easy. For, with an economic yardstick,
like money, we can determine how profitable the organization
has been. But, as it was noted, with the presence of
several variables, this measurement will not be reliable and
complete. Thompson visualizes the situation of selection
of a measure as a task which can be stated in two forms.
When one can establish a standard of desirability quite
easily the case will be crystallized. One example is the
assembly line where. through the specialization of tasks, a
desirable number of units is supposed to be produced within
a time-limit. Where so many variables are to be considered
for the establishment of a standard of desirability, often

the desirable level of achievement becomes vague and ambiguous.

Beliefs About Cause/Effect Relationships. The level
of understanding of cause/effect relationships is relative
in open and closed systems. In a closed system - like an
assembly line - all variables can be computed easily, and
therefore a standard of achievement can be established. In
such cases understanding of cause/effect relationship is com-
plete. In an open-system, like most organizations of today,
so many variables are in interaction that understanding of
cause/effect relationship becomes gravely incomplete. Con-
sidering the two extremes of value judgment concerning the

certainty and uncertainty or ambiguity of standards of

 

 

 

 

 

41

desirability, and also contemplating the two dimensions of
complete and incomplete understanding of cause/effect
relationship, Thompson constructed the following scheme

which depicts four assessment situations.31

Beliefs about cause effect

 

 

r knowledge ‘
Complete Incom lete
Standards Crys- I II
talized
of
Desirability Ambig- III IV
uous

 

 

 

 

FIG. 2. Variables to assess an organization

Source: James Thompson, Or anizations in Action, (New York:
McGraw-Hill Book‘E§ESEE§T'TEETT"I§37TT'p. 86.

In Cell I, where cause/effect understanding is be-
lieved to be complete and a standard of desirability is
crystalized, we would expect the maximizing approach to
assessment. This is known as the efficiency test, which

32

assumes efficiency equals effectiveness. As was already

 

31
James D. Thompson, op. cit., p. 86.

32
I have already debated that the efficiency tests,
are based on a single dimension of economic maximization
which neglects all other variables like morale, conformity,
adaptiveness, institutionalization. etc.

 

 

42

noted, this kind of test is one of the notions of the
scientific management school which puts emphasis on the
rate of material output through such devices as time and
'motion studies.

This school hypothesizes that: organizations which
have a high degree of division of labor are most likely to
have a higher degree of effectiveness than organizations
which have a low degree of division of labor.33 Their basic
assumption is that of equality of efficiency, productivity,
and effectiveness.3u

There are several other studies that place much
emphasis on economic dimension of organizational effectiveness.
Chandler's study of four major industrial organizations led
him to hypothesize that: except where there is a high degree
of complexity, organizations which have a high degree of
specialized departmentalization are more likely to have a

higher degree of effectiveness than organizations which have

a low degree of specialized departmentalization.35 Another

 

33
James D. Thompson, op. cit., p. 86, and James L.
Price, op. cit., p. 16.

34
See the Waterton Arsenal Study by Aitkin: Hugh

G.J. Aitken, Ta lorism and Watertown Arsenal, (Cambridge:
Mass.: Harvard University Press, 1960): see also Charles R.
Walker and Robert H. Guest, The Man on the Assembl Line,
(Cambridge, Mass.: Harvard University Press, 1952;: W. Lloyd
Warner and J.L. Low. The Social S stem of the Modern Facto
(New Haven, Conn.: Yale University Press, 1957), p. 173.

35
Alfred D. Chandler, Jr., Strategy and Structure,

 

 

 

 

 

 

 

 

43

study on economic dimension of organizational effectiveness
deals with mechanization with an apparent assumption that
efficiency equals effectiveness.36
In cell II (the scheme on page 35) where a standard
of desirability is crystalized but the assessor believes his
knowledge of cause/effect is incomplete, the efficiency test
is inappropriate, for there is no way of assessing the net
effects of causal action. In this case, the appropriate
test will not be the economic one, but the instrumental test
can be used. In instrumental tests, the assessor is forced
to seek another standard of satisfactoriness.
In cells III and IV when standards of desirability
are ambiguous, the assessor must find other means of re-
solving his dilemma. As it can be seen, the efficiency test
is not and cannot be applicable in all measurements of
organizational effectiveness.
To find a comprehensive measure that can be applied
to all situations a number of studies have been performed.
To continue the search of the literature, it seems quite
appropriate to conceive of an organization as a problem-facing,

problem-solving, and decision-making system which is in a

 

fi—v

(Garden City, N.Y.: Doubleday and Co. Inc., 1966). See al-
so Peter F. Drucker, Conce t of the Cor oration, (Boston:
Beacon Press, 1960). pp. 51-53, and 122-128.

36

Charles R. Walker. Toward the Automatic Factopy,
(New Haven, Conn.: Yale University Press, 1957).

 

 

 

 

 

 

an

close interaction with its external environment and internal
components. It would not be just if one only alluded to
economic and technological dimensions as the major factors
of effectiveness, and neglected such variables as super-
vision, leadership, goal setting, enforcement of decisions.
power, authority, size, complexity, autonomy, centralization
vs. decentralization, control system, sanctions, and communi-

cation mechanism.

Likert's Multivariable Model

 

In the process of the measurement of organizational
effectiveness, Likert debates the use of a mono—dimensional
criterion such as productivity. He presents a model of
measurement which is to consider the interactions among
causal-intervening and end-result variables.3? He includes
the following factors in the list of causal variables:
organizational structures, organizational objectives. manage-
ment and supervisory practices, and behavior, capital in-
vestments, and needs and desires of the members of organiza-
tion. Intervening variables include personality, work group
traditions, values. goals, and past experience, perceptions.
expectations, attitudes. motivational forces, and behavior.

Likert enumerates the following as the end-result variables:

 

37
Rensis Likert, New Patterns of Mana ement, (New
York: McGraw-Hill Book Co. Inc.,', 1961,)Chapter l3.

 

 

 

 

1:5
production, (cost, waste), earnings, absence, turnover,
union-company relations, grievances, stoppages, and sales.
This model of interaction of variables requires a
lot of perfection as regards measurement methodology and
tools. In addition, consideration and measurement of the
impacts and the results of such a number of variables may not

be feasible if accuracy is expected.

Single variable Models

There are many studies in the literature that have
subjected the effectiveness of an organization to one or two
variables. [For example. Katz pj_gl. found a close relation-
ship between productivity and the level of supervision.

They hypothesized that general rather than close supervision
is more often associated with a high rather than low level of
productivity.38 Blau's study of a department of a state

employment agency39 and Sykes'“o study of a maximum security

 

38
D. Katz, N. Maccoby, and Nancy Morse, Proguctivipy,
Supervision, and Morale in an Office Situation, Ann Arbor,
Mich.: Institute for Social Research, 1950 .
39
Peter M. Blau, The amics of Bureaucrac
(Chicago: University of hicago Press, 1955 .
40
Gresham Sykes, The Socie f Ca tives, (Princeton:
N.J.: University Press, 195 . ee a so: lv n W. Gouldner,

Patterns of Industrial BpreaucracyI (Glencoe, Ill.: Free
Press. 195 ' pp. 59-101.

 

 

 

46
prison illustrate a proposition that organizations which
have a high degree of legitimacy are more likely to have a
degree of effectiveness than organizations which have a low
degree of legitimacy. Legitimacy in these cases is defined
as the degree to which the behavior of an organization is

socially approved.41

Blau's study also confirms that organi-
zations which primarily have a rational-legal basis for
decision-making are more likely to have a high degree of
effectiveness than organizations which primarily have a
charismatic type of decision-making.u2

Other correlations have been made between the degree
of authority delegation and organizational effectiveness.
Kaufman's study of the forest service, and Gouldner‘s study
of a gypsum plant, Marcson's study of a research laboratory
of the pacific electronic company, and Stanton and Schwartz's
study of a private mental hospital illustrate the degree of

centralization and the level of organizational effectiveness.)4L3

 

41
Seymur M. Lipset, Political Man, (Garden City, N.J.:
Doubleday and Co. Inc., 1960). PP. 77-96.

42

Rational-legal decision making is defined as the
degree to which a social system allocates decision making to
roles. Charismatic decision-making may be defined as the
degree to which a social system allocates decision making to
specific individuals. For further discussion see: Herbert
Goldhammer & Edward A. Shills, "Types of Power," in Robert
Dubin (ed.). Human Relations in Administration (New York:
Prentice-Hall Inc., 1951 : pp. 1 2-1 7.

43
Herbert Kaufman, The Forest Ranger, (Baltimore:

 

 

1+7

The literature contains studies that establish a
correlation between autonomy and organizational effective-
ness. It has been shown that the decisions of an organiza-
tion which can lead to effectiveness are not made only with-
in the confines of the organization's internal factors. but
also political-legal, social and economic constraints play
a great role. The government's business policy. attitudes
toward ownership, regulations of industry, and so on affect
the degree of the organization's autonomy. Therefore. in
the measurement of effectiveness the degree of autonomy must
also be considered. Such studies hypothesize that organi-
zations which have a high degree of autonomy are more likely
to have a higher degree of effectiveness than organizations
which have a low degree of autonomy.44

It has also been asserted that representation con-
tributes to the extent of effectiveness of an organization.

Representation may be defined as the practice of a social

 

Johns Hopkins University Press. 1960), see also Gouldner,

22; 213., Blau, pp; pij., (con), pp. 19—23: Paul R. Lawrence,
The Changing of Organizational Behavior Patterns. (Boston:
Division of Research, Graduate School of Business Adminis-
tration, Harvard University. 1958): Donald T. Campbell,
Leadership and Its Effects Upon the Group, (Columbus: Bureau
of Business Research, The Ohio State University 1956);

Simon Marcson's, The Scientist in American Industry,
(Princeton, N.J.: Industrial Relations Section, Department
of Economics. Princeton Univ. 1960).

44
The following studies are illustrative of the rela-
tion between autonomy and organizational effectiveness:
Philip Selznick, TVA and The Grass Roots (Berkley: Univer-
sity of California Press, 1953 I also Burton R. Clark. Tpg

 

 

48

system's members joining other social systems with the goal
of increasing its institutionalization.u5 This representa-
tion can be a voluntary association of the executives of an
organization in the community affairs which can increase the
institutionalization of their organization. This can change
the perception of the community in favor of such an organiza-
tion. Studies by Warner and Low, Kaufman, Selznick, and
Stanton and Schwartz support the idea of representation.”6
There are many studies that relate the effective-

ness of an organization to its control system, communication

4?

ability, and size.

 

The literature indicates that most studies have sub-

jected organizational effectiveness to a single dimension

Open Door College, (New York: McGraw-Hill Book Co., 1960):
Irvin Belknap, Human Pr blems of a State Mental Hos ital,
(New York: McGraw-Hill Book Company, 1955): Michael Krozier,
The Bureaucratic Phenomenon (Chicago: University of
Chicago Press, 1964).

45
Philip Selznick, op. cit., pp. 3-16 and 217-246.

46

’ Lloyd Warner and J.L. Low, The Social System of
the Modern Facto , (New Haven, Conn.: Yale UniverSity
Press, 1947): Herbert Kaufman, The Forest Ran er, (Baltimore,
John Hopkins Press, 1960), Philip Selznick, o . 313.:

Alfred Stanton and Morris S. Schwartz, The Men a1 Hos ital,
(New York: Basic Books, Inc., Publishers, 195 .

47
For an inventory of such studies see: James L.
Price, op. cit.

 

 

 

 

49
without excluding the effects of the other factors. My
search in the literature has led me to a few studies which
have a resemblance, in nature. to this study. Selznick and
Clark's studies“,8 illustrate four propositions concerning the
presence of ideology, congruence of ideology, priority, and
conformity. They purport that organizations which have
(1) an ideology (2) and whose ideology has a high degree of
congruence, (3) priority, and (4) conformity, are more likely
to have a high degree of effectiveness than organizations
whose ideologies have low degree of congruence, priority,
and conformity.

Ideology is defined as beliefs which are publicly
expressed, with the manifest purpose of influencing the
orientations and actions of others.”9 The similarities be-
tween an ideology behind an organization and value systems
lie in the following:

I) An ideology, as such, consists of beliefs behind
the organization and should be expressed publicly. But its
importance and the role it plays in the success and effec-
tiveneSs of an organization comes from the extent of accept-
ance it may have among the organization members.

2) Values, also, are beliefs injected to a person
through his culture and the process of socialization. These

values can be shared by the members of an organization.

48
Philip Selznick, pp.cit., also Burton R.Clark, o .cit.

49
Francis X. Sutton, Seymur E. Harris, Carl Kaysen,

‘

 

 

 

The difference between ideology and values is in the

way each is expressed. Ideology is usually expressed pub-
licly, but values are exhibited by the individuals through
their choice of alternatives. Since Clark and Selznick's
studies have based the level of organizational effectiveness
upon the congruency of the ideologies and its acceptance by
organization members, and similarities were found between
ideology and values. it can be suggested that congruency in
the value systems of an organization's members affect the

extent of its effectiveness.

Effectiveneps of Organization Members as Individuals

Individuals are the human elements in the system of
an organization. Their contribution will sum up with the
other factors to enable the organization to reach to its
level of total achievement. Many theories have been formu-
lated to increase the level of the individual's performance.
In effect. management theories of human relations. leadership
styles, and motivation have very much to do with the human
side of the organization.

It has been asserted that an employee's job satis-
faction as well as his motives, needs, and desires increase
his effectiveness. Studies on morale, attitudes, and work

condition illustrate how the organization structure, level

 

and James Tobin, The American Business Creed, (Cambridge,

Mass.: Harvard University Press, 1966), pp. 1-15.

 

 

 

 

 

51
so

of training, autonomy, and values affect the individuals.
Values of the individuals are considered to be very effec-
tive guidelines for their behavior. Therefore a certain set
of values may reflect a high level of satisfaction in con-
trast to another set which under the same circumstances
might express dissatisfaction. Executives who judge the
effectiveness of a subordinate place much emphasis on what
seems to be desirable to themselves rather than the employee.
Thus, an individual may receive different ratings from
different executives.

What is important in this process of measurement of
the individual's effectiveness is a diagnosis of the indi-
vidual's value system and the determination of the differ-
ence between his and his superiors' perception of organiza-

tional effectiveness.

Summapy pf Organizational Effectiveness Studies

Effectiveness is the degree to which goals are
achieved. Measurement of effectiveness is performed through
a variety of standards ranging from economic tests of

efficiency, productivity, and profitability - the scientific

 

50
For a discussion on how to measure the individual's
performance as well as the criteria for executive effective-
ness measurement see: Frederic R. Wickert and Dalton E.
McFarland (eds.), Measuring Executive Effectiveness, (New
York: Appleton-Century-Crofts, 1967), Chapter 3.

 

 

 

 

 

 

52

management school - to the tests of morale, conformity,
adaptiveness, creativity. organization structure, and leader-
ship methods - behavioral school of management.

The two sets of measures have been often employed in-

dependently without any observable attempt for the integra-

 

tion of several factors that affect the level of organiza-
tional achievement. The studies cited here indicate that a
variety of relationships exists between organizational
effectiveness and such factors as management methods of
supervision, control, and employee satisfaction. Effective-
ness is believed to be a function of attitudes toward work,
the degree of autonomy, quality and quantity of training,
and economic as well as moral needs satisfaction. The
literature provides a host of factors affecting the level of
organizational effectiveness. An appraisal of these contri-
butions can show to what extent they have assisted conducting

the present study.
Appraisal of Contributions

In Chapter 1 several shortcomings were mentioned
relating to the studies on organizational effectiveness.
One purpose of this chapter has been to determine the extent
to which theory and practice, as expressed in the literature
relative to "value systems” and ”organizational effectiveness,"

eliminated those shortcomings.

 

 

 

 

 

 

 

 

53

The literature pertaining to values and value systems
identified existing confusion between values and attitudes.
It was also noted that value research has been brought in the
realm of empiricism and that values can be identified within
organizations and among the executives. The literature also
improved the knowledge of sources and kinds of values and
maintained that values serve as a major determinant of human
behavior.

The literature of organizational effectiveness ranged
from very general techniques (subjecting organizational effec-
tiveness to a single factor of economic efficiency) to very
specific ones (relating organizational effectiveness to a
host of factors such as organization structure, leadership
methods, employee morale, satisfaction, conformity, etc.)

Most of the literature sources identified differences
of values among groups. But, no attempt was made to discover
bases of differences and the factors affecting the extent of
difference among groups. Studies of organizational effective-
ness diagnosed factors that markedly contribute to a higher
level of organizational achievement. Such studies concerned
isolated factors without any attempt to approach the topic in
a sufficiently comprehensive manner or in sufficient depth I
to be of general theoretical use for an understanding of
organizational effectiveness.

The present study attempted to integrate the factors

of organizational effectiveness as cited in this chapter with

 

 

 

 

 

 

 

 

54

the element of values. It also determined the extent of
interrelationship between those factors and the value systems
of the organization members. Chapter 3 describes the method-

ology used to achieve the purposes of this study.

 

 

 

 

 

 

 

 

 

 

CHAPTER 3
RESEARCH DESIGN
Introduction

The purpose of this chapter is to describe the design
and methodology employed for the test of the hypotheses and
for the integration of ideas and concepts of value systems
and organizational effectiveness identified in Chapter 2.

The discussion of this chapter concerns:

(1) The data collection techniques - selection of a
measure, description and development of data
collecting instruments.

(2) The nature of the sample - criteria for selec-
tion. size of the sample, and method of selection,
interviewing procedures, and criteria.

(3) The method of analysis - description of the

statistical techniques used in the study.
Data Collection Techniques

Criteria for the Selection of Research Instruments

 

Since the research project was designed to determine

the degree of interdependence between the value systems and

 

55

 

 

 

 

 

 

 

 

 

 

56

organizational effectiveness of the organization members,
two research instruments were required: one for gathering
data on how the employees of both the most effective and the
least effective organizations rank-ordered their own values,
and one instrument for gathering information on how those
employees perceived of their organization's effectiveness.
The complex and multidimensional nature of values and organi-
zational effectiveness prescribed that the instruments also
be multidimensional to gather data on the many aspects of
each of these phenomena.

In brief, the task was to find or develop data
collection instruments that met the following criteria:
(1) Were effective in measuring the two complex phenomena of
values and organizational effectiveness: (2) were structured
for easy compliance by respondents: (3) were simple to ad-
minister: and (4) required minimal time for completion in

light of objectives of the project.

Valpe Measurepppp

The purpose and product of value measurement was to
obtain certain types of information which could be used as
predictors of behavior in certain circumstances. The circum-

l
stances, of course, were created by using questionnaires.

1
For a detail discussion on the purpose of measure-
ments and the development of circumstances see: C. West

Churchman, Prediction and O timal Decision, (Englewood Cliffs.
N.J.: Prentice-Hall Inc., 1961).

 

 

 

 

 

 

 

 

 

 

57
It was stated in Chapter 2 that individuals have two kinds
of values, namely: instrumental, and terminal. What was
required for the purpose of the present study was a certain

information on how the organization members arrange these

values into a value system.2

Several methods are available for gathering data
about values. William Scott suggests a content analysis of
open-ended value dimension questions.3 This requires time-
consuming interviews with individual respondents which would
be economically prohibitive if applied to large samples.
Charles Morris' approach“ to the measurement of values is
rather complex and requires a high level of education on the

part of the respondent. Kilpatrick and Cantril recommend a

2 .

Kluckhohn and Strodtbeck state "value orientations
are complex but definitely patterned (rank ordered) principles,
resulting from the transactional interplay of three analyti-
cal, distinguishable elements of the evaluative process -
the cognitive, the affective, and the directive elements -
which give order and direction to the everflowing system of
human acts and thoughts as these relate to the solution of
common human problem.” Florence Rockwood Kluckhohn and Fred
L. Strodtbeck, Variations in value Orientations, (Evanston,
111.: Row, Peterson, and Co., 1961), p. 4.

William A. Scott, ”Empirical Assessment of Values and

Ideologies," American Sociological Review, Vol. LIX (Nov.
19.52) 9 p. 4220

4
Charles W. Morris, Variation of Human value,
(Chicago: University of Chicago Press, 1956)}

   

 

 

58
kind of value test through self-anchoring scaling.5 Thurstone's

paired comparison scaling,6 William Catton's ranking of

7

absolve or infinite values, Ira Reid's analysis of social

8

protest, O.E. Thompson's differential value inventory, Roy

Carter's rating of value situations9 with resultant factors,

Allport-Vernon-Lindzey's joint choice and ranking of value

10

situations with resultant value profiles, and Rokeach's

rank ordering of instrumental and terminal values are some of

the methods for the measurement of values.

F.P. Kilpatrick and Hadley Cantril, ”Self-anchoring
Scaling: A Measure of Individual's Unique Reality Worlds,”

Journal of Individual Psychology, V61. XVI (Nov. 1960),
pp. 15 -l73-

6
L.L. Thurstone, "The Method of Paired Comparisons

for Social Values.“ Journal of Abnormal and Social Ps cholo ,
Vol. XXI, January-March, 1927), pp. 384-400: ---- "The
Measurement of Values,” Ps cholo ical Review, Vol. LXI
(January, 1954), pp. 47-53: and Louis Guttman, “A basis for
Scaling Qualitative Data," American Sociological Review, Vol.
1x (April, 1944). pp. 139-150.

7

William R. Catton, Jr., ”Exploring Techniques for
Measuring Human Values," American Sociolo ical Review, Vol.
XIX (February, 1954), pp. 49-55: and Hornell Hart, ”A Reli-
able Scale of Value Judgments," American Sociolo ical Review
Vol. X (August, 1945), pp. 473-4 1.

8
Ira De A. Reid, "Social Protest: Cue and Catharsis.”
P1321011, V010 XVI (June. 1955). pp. 141-147.

 

Roy E. Carter, Jr., "An Experiment-in Value Measure-
ment,” American Sociolo ical Review; Vol. XXI (April, 1956),
Pp. 156-163: and Robert Sommer and Lewis M. Killian, “Areas
of Value Differences: A Method for Investigation," Journal of
Social Psychology, Vbl. XXXIX (May, 1954), pp. 227-235.

10
Gordon W. Allport, Philip E. Vernon, and Gardner

 

 

 

 

 

 

 

 

59

Examination of these value measurement instruments
in light of the criteria of relevancy of information, easy
administration, cost, and time led me to a selection of the
Rokeach value survey.11 This instrument was used to collect
data about how the executives of a number of business
organizations rank ordered their values on a continuum of
value systems. In addition, the survey was so designed
that statistical analysis for identification and isolation
of values that contribute to organizational effectiveness
seemed quite feasible.

Rokeach's value survey is a phenomenological approach
to the measurement of values. It assumes that every person
who has undergone a process of socialization has learned a
set of beliefs about modes of behavior and about end-states
of existence that he considers to be personally desirable.
The value survey treats the values that are indicators of
modes of behavior as instrumental values. and those that
represent our beliefs about end-states of existence as term-
inal values. The survey also assumes that every person
differs from every other person not so much in whether or not

he possesses such values but rather in the way he arranges

 

Lindzey, Manual Stud of Values, 3rd edition, (Boston:
Houghton Mifflin Co., 19 O .

11
Milton Rokeach, Value Surve , (Lansing, Michigan:
Jenso Associates Testing Division, 19 7 .

 

 

60

them into value systems. a hierarchy or rank-ordering of
terminal or instrumental values along a continuum of per-
ceived importance.

From a phenomenological standpoint, everything that
a person does and all that he believes is capable of being
justified. defended. explained, and rationalized in value
terms, that is justified in terms of modes of behavior and
and states of existence that are personally and socially
worth striving for. Hence a phenomenological approach com-
mits us to elicit from a person the conceptions he has of
his own values, conceptions he is willing or even eager to
admit possessing, to others as well as to himself.

The value survey consists of 18 alphabetically
arranged terminal values and 18 alphabetically arranged
instrumental values. The two sets of values are shown in
Table 1. Each value is presented to the respondent along
with a brief definition in parentheses. The instructions
to the respondents are to ”arrange them in order of import-
ance to you, as guiding principles in life."

Rokeach points out that "in committing ourselves to
the ranking method of measuring values we have assumed that
it is not the absolute presence of a value that is crucial
but rather the relative ordering of values with respect to

one another."12

 

12
Milton Rokeach, "The Measurement of Values and
Value Systems," in G. Abkariam (ed.). Political Participation

 

 

61

In the value survey form. used in this study13 each
value was printed on a gummed label and the subject instructed
to ”study the list carefully and pick out the value which
is the most important for you. Peel it off and paste it in
Box 1 on the left. Then pick out the value which is second
most important to you. Peel it off and paste it in Box 2.
Then do the same for each of the remaining values. The
value which is least important goes in Box 18. Work slowly
and think carefully. If you change your mind feel free to
change your answers. The labels peel off easily and can be
moved from place to place." The average time to complete the
rankings was about 15 minutes.

Prior to a critique of the Rokeach Value Survey, a
few words are in order about further classification of
Terminal and Instrumental values. This classification does
not relate to the respondents and is highly helpful in the
analysis of values as far as organizational effectiveness is
concerned. Instrumental values can be broken down into moral
values and competence values. To my mind. the general con-
cept of value is considerably broader than the concept of

moral values. For one thing, moral values refer only to

 

and Social Ps cholo ical Processes. (Columbus, Ohio: Charles
E. Merril, 1970), p. 3.

13
See Appendix A for Rokeach's Value Survey.

 

 

 

 

 

62

TABLE 1 - The Terminal and Instrumental Value Scales

 

Terminal Values

Instrumental Values

 

A comfortable life
(a prosperous life)
An exciting life
(a stimulating, active life)
A sense of accomplishment
(lasting contribution)
A world at peace
(free of war and conflict)
A world of beauty
(beauty of nature and the arts)
Equality (brotherhood, equal
opportunity for all)
Family security (taking care
of loved ones)
Freedom (inde endence,
free choice)
Happiness
(contentedness)
Inner harmony (freedom
from inner conflict)
Mature love (sexual
and spiritual intimacy)
National security
(protection from attack)
Pleasure
(an enjoyable, leisurely
life)
Salvation
(saved, eternal life)
Self-respect
(self-esteem)
Social recognition
(respect, admiration)

True friendship
(close companionship)
Wisdom (a mature under-
standing of life)

 

Ambitious

(hard-working, aspiring)
Broadminded

(open-minded)
Capable

(competent, effective)
Cheerful

(lighthearted, joyful)
Clean

(neat, tidy)
Courageous (standing up

for your beliefs)
Forgiving

(willing to pardon others)
Helpful (working for

(the welfare of others)
Honest ,

(sincere. truthful)
Imaginative

(daring, creative)
Independent (self-

reliant, self-sufficient)
Intellectual

(intelligent. reflective)
Lo ical

%consistent, rational)

Loving
(affectionate, tender)
Obedient
(dutiful, respectful)
Polite
(courteous, well-
mannered)
Responsible
(dependable, reliable)
Self-controlled
(restrained, self-
disciplined)

 

63

modes of behavior, instrumental values, and not to end-
states of existence, terminal values. For another, moral
values refer simply to those modes of behavior which, when
violated, arouse pangs of conscience or feelings of guilt or
wrongdoing; they have an interpersonal focus. Competence
values refer to preferred modes of behavior which, when
violated, lead to shame about competence rather than to guilt
about wrongdoing: their focus is personal rather than inter-
personal.

Organizational effectiveness which is a sum of the
behavioral contributions of the members of an organization
depends considerably on the extent of adherence to the com-
petence values. The following classification may help make
the distinction clearer:

(l) Moral Values: Clean, Forgiving, Helpful.

Honest, Loving, Obedient, Polite, Responsible, Self-controlled.

(2) Competence Values: Ambitious, Broadminded.
Capable, Imaginative, Independent, Intellectual, Logical.

(3) Indeterminate: Courageous. Cheerful.lu

 

14
This classification has been made by Milton

Rokeach, "Value Systems in Religion," Review of Reli ious
Research, Vol. 11, No. 1. In a remark to this classifica-

tion, Dr. Rokeach points out: "I am uncertain about the
classification of Courageous and Cheerful because they may
be "moral" under certain circumstances and "competence"
under others. If the values of behaving courageously or
cheerfully are violated under conditions perceived to be
harmful to others. they would probably lead to a feeling of
wrongdoing or guilt. Otherwise, their violation would prob-
ably reflect a lack of ability and thus lead to shame about

 

 

 

6b

The value survey has been criticized by respondents.
One of the grounds for complaint is that the ranking task of
18 instrumental and 18 terminal values is a very difficult
one, because all the terminal and instrumental values are
socially desirable, thus making the process of ranking
rather difficult. This researcher, however. did not face
such a complaint. Respondents in all studies of the past
that have used Rokeach's value survey have indicated their
enthusiasm to fill out the form and to find out how they
score in regard with the subject of research. For example.
students at Michigan State University were desirous to know
how similar or different their value systems were with those
of the Hippies. Some charge that the survey of values con-
fuses two psychological dimensions which can be separated:
interest and value. Investigators have complained that the
vocabulary level of the instrument is too high and have
suggested simplified versions.

Despite these charges and criticisms of the Rokeach

value survey, this researcher selected this instrument for

 

 

incompetence. The results of several factor analyses
empirically confirm the distinction between moral and com-
petence values. The strongest factors are bipolar ones
with different combinations of the moral values leading at
one pole and different combinations of competence values
loading at the other pole."

 

uvLWNQ—gawga—WWJ/wv ‘v , 77 ~— ,, W , A _,g

65
its advantages. Another factor that influenced the selec-
tion of Rokeach value survey over the other instruments was
the degree of reliability and the validity of this measure.
The Rokeach value survey has been used in a variety of
situations. and is generally considered to be both reliable
and valid.15 Previous research has shown that respondents
rank order their values in a reasonably reliable manner.
With time intervals ranging between seven weeks to three
months, test-retest reliability of the terminal and instru-

mental values ranges on the average between 0.72 and 0.82.

Measurement of Effectiveness

There is still no consensus among the researchers of
organizational effectiveness on a universal measure of
effectiVeness. The existing measures have been developed
for specific researches and are not usable in all cases.16
Since this study was investigating the presence or absence
of a certain set of values that may have some effect on the

effectiveness of a person or an organization, the researcher

developed a questionnaire to go with Rokeach's value survey.

 

15

R. Cochrane and M. Rokeach, "Rokeach's Value
Survey: A Methodological Note," Journal of Experimental
Research in Personality, Fall, 19 9.
16
For example Negandhi and Estefan have developed a
measure which can be employed in specific cases but not all.
Measures are found in Negandhi and Estefani "A research model

to determine the applicability of American Management Know-how
in differing cultures and or environments." in Benjamin Prasad's.

Management in PerspectiveI (New York: Appleton, Century.
crOft. 19 7 o

 

 

66

Those questions were to elicit answers on how satisfied the
respondent feels with the organization in which he is serv-
ing. The way employees perceive of their organization and
how they rank their immediate superior's effectiveness as
well as that of the organization as a whole was very import-
ant for this study. It presented a good basis for compari-
son between the viewpoints of the top executive and the per-
ception of the organization members. The questions were
developed to reflect the opinion of the employees on such
organizational matters as job satisfaction. employee atti-
tude toward work. and perception of the level of effective-
ness in their organization.17 A pretest of this part of the
questionnaire which was conducted on a test-retest basis con-
firmed the reliability of the measures with a coefficient
variance of 0.92. The subjects were two groups of students
of the Colleges of Social Science and Business of Michigan
State University.

To select a measure for organizational effectiveness
and the individual's performance appraisal I came to the
conclusion that a monodimensional variable such as net profit,
increase in production, or morale can neither be appropriate

nor accurate. The measure used in the interview with the

 

1?
For the text of these questions see Appendix A,
Part 2. The questions were prepared so as to integrate the
concepts of organizational effectiveness cited in Chapter 2.

 

 

 

6?

top executive and the supervisors contained the factors of
productivity, contribution to the organizational goal
achievement, conformity with organizational policies. smooth-
ness of operation, absenteeism, creativity. and adaptiveness
to changes.18

A remark on the validity of such measurements is
appropriate. The data that have been generated through the
use of the above mentioned measures are data on the empirical
world that contain some errors. Determining the validity of
a concept is.a problem in logical inference. The difficulty
of determining validity becomes more apparent when one con-
siders the task of measuring a construct such as the level
of an organization's effectiveness.

Paul Rigby points out that "the results of measure-
ment can be treated as though they are the concept itself.
Therefore, there is no real problem of validity but only the
problem of establishing the significance of what has been
measured. Can patterns or relationships be discovered be-
tween the results of the measure and the results of some
other measure? If they can, and if the form of the relation-
ship is established, we might conclude that the measure has

validity."19

 

18
See Appendix A for the text of value survey, ques-
tionnaires. and criteria used by the top executive and super—
visors to rank their subordinate organizations and organiza-
tion members.

19
Paul Rigby, Conce tual foundations of Business Research,
(New York: John Wiley and Sons, Inc., 19355, p. 153.

 

 

 

 

68

Using Rigby's suggestion I randomly chose 10% of
the questionnaires received from both the most effective and
least effective organizations.20 A comparison was made be-
tween the results of these questions and the rankings made
by the top executives with a different measure in order to
determine the most and the least effective departments. The
result showed that 94% of the respondents in the most effec-
tive departments and 96% of the respondents in the least
effective departments agreed with the top executive's ranking.
It should also be remembered that the hallmark of
a truly effective person or organization is rather the
espousal of a recognizable set of competence values that
are distinctively different from those espoused by the less
effective people or organizations. This study shows that
effective organizations possess a set of competence values -
values that most contribute to the accomplishment of tasks - that

may be missing in ineffective organizations.

Nature of the Sample

Criteria for the Selection of the Sample

Four criteria were used in the selection of the

organizations for this study: (1) Geography; (2) Occupation;

 

20
The method for the selection of these organizations
and the universeof this field study are discussed in the next
section of this chapter.

 

 

 

 

69
(3) Size: and (h) Objectives of Organization.

Geography - As was mentioned before, values and
value systems evolve through the elements of culture and
socialization. Social studies have found a number of cul-
tures that differ in many respects from one another. There
is no universal standard for establishing boundaries among
the cultures. Some studies use the yardstick of ”sovereinty“
to define a "nation" and then equate the nation with the
culture. For example, the American culture versus the
Spanish or German cultures. This element is by no means
capable to establish a clear-cut boundary among the cultures.
For, there are some areas which fall in the twilight zone
with some similarities with a neighboring culture and some
distinct cultural characteristics. For example, Holland
and Switzerland share some of the Germanic culture and yet
have some distinct cultural characteristics different from
that of the Germans.

To find out the predominant value system in the uni-
verse of this study, the Lansing, Michigan standard metro-
politan area21 was chosen. By limiting the geographical
area, greater cultural homogeneity was assured.

Occupation - Dividing, very broadly, the positions

of an organization into managerial and operational, I believe

 

21
U.S. Bureau of the Census, U.S. Censuses of Popu-

lation and Housin 1 60, (Washington, D.C.: U.S. Govern-
ment Printing Office, 1962).

 

 

 

 

70

that managerial positions require more discretionary action.
Therefore, it was assumed that this stratum was engaged in
the selection of alternatives and decision-making which was
a direct function of their value systems.

Additionally, managerial positions were assumed to
be, for the purpose of this study, those jobs that required
decision-making both in cases of supervising the works of a
number of employees and technical or staff positions. Hence,
those who performed a technical job without the supervision
of a supervisor were also included in the sample. This
category of positions was exemplified by legal advisors,
non-secretarial staff members, physicians, consultants, and
teachers.

Size of the organization - Organizations that grow
very large inevitably and invariably break up into several
divisions through the process of decentralization. Being
geographically decentralized, the organization may contain
elements from several regions and cultures that may lead to
the development of an institutional - regional value system
much different from the other factions of the mother organi-
zation.

I limited this study to those organizations whose
departments, sections, or branches were geographically
centralized and had no more than 500 employees. The 500

level was arbitrarily selected.

 

 

 

71

Objectives of organization - Organizations have
evolved to accomplish a purpose. As long as an organization
has a purpose to achieve, its effectiveness can be measured.
Whether an organization is in the public sector or the pri-
vate, whether it is in the production of goods or provision
of services, it is a source to absorb a number of people
with certain value systems. For the purpose of this study
however, I contained in the sample a few organizations whose
objectives were not similar. Although this research did not
attempt to study the correlation between certain value sys-
tems and organizational objectives, I was desirous of gaining
some insights about the prevailing value systems in organi-
zations with different objectives. With the above criteria
in mind, three organizations were selected on a non-random
sample basis. These organizations were directly involved in
the provision of services of banking, insurance, and educa-
tion. All managerial positions in the three organizations
were selected for the purpose of interviewing and responding

to a questionnaire.

The educational institution‘

 

This subuniverse was composed of two departments of
a multi-departmental division of an educational institution.
The two departments were selected subsequent to an inter-
view with the top executive of the division.

The top executive officer of the division was asked

to rank his four subordinate departments according to the

 

 

 

 

 

72

effectiveness criteria that was described in the previous
section.22 The division contained four departments that will
be called A,B,C, and D in order to keep them anonymous.

The top executive ranked these four departments before the
criterion of productivity 2,1,# and 3 respectively. The
same measure was repeated for the seven criteria developed
for this purpose. From among these four departments, the
one that had earned the lowest mean score in the ranking by
the top executive was taken as the most effective department
of the division. A department that obtained highest mean

score in the ranking was chosen as the least effective

 

department of the division.

Since the analysis of data involved determination and
differentiation between the value systems of the more effec-
tive personnel and the less effective personnel, the above
criteria that was employed for the selection of the most
effective and the least effective departments were used,
once again, and the employees of each organization were cate-

gorized in the most effective and the least effective groups.23

 

22
For the text of criteria used in the interview in
order to select the most effective and the least effective
departments see Appendix A.

23
See Table 12, Chapter 3. For this analysis see
Chapter 4, Section 2.

 

 

 

 

 

73

The Insurance Com an

The insurance company was the largest organization
in terms of the number of managerial positions. In order
to select the sample, the general manager of the company
was interviewed in the manner explained previously for the
educational institution. The most effective and the lgggp

effective sections were thus selected.

 

The Bank

This was the smallest organization compared with
the educational institution and the insurance company.
Managerial positions in the most effective and the least
effective branches were 15 in each.

The sample, in general, contained a relatively large
organization, a medium size, and a small organization.
Interviews were conducted in both "most effective" and

“least effective" sections of the three organizations.

Sppmapy of the sample characteristics

Table 2 shows the total number of persons in managerial
positions, the number of usable questionnaires, and the
sample size in relation to the managerial positions held in

the organizations.2u

 

24
For a breakdown of the sample taken from each
organization see Appendix C.

 

 

 

 

 

74

TABLE 2 - Sample Size

 

 

 

 

Organizations No. in Managerial Usable Sample
Positions Question- Size
pgires

Most effective 163 117 71.7%
sections

Least effective 220 128 58 %
sections

Total 383 245 64 z

 

Tables 3 through 13 provide a summary of the sample showing
the number of subjects in each category based on the vari-
ables to be used in the analysis.

TABLE 3 - Sample structure of the most effective sections
based on religion

 

 

 

Religion No. of Strata % of Sample Total
Protestant 84 71.8
Catholic 25 21.3

Jewish 0 O

No answer 8 6.9

 

Total 117 100.

 

 

 

 

 

75

TABLE 4 - Sample structure of the least effective
sections based on religion

 

——___—
W ————f

 

 

Religion No. in strata % of sample total é
Protestant 85 66.4

Catholic ~ 29 22

Jewish 0 O

No answer 14 11.6

Total 128 100

 

TABLE 5 - Sample structure of the most effective
sections based on sex

 

 

 

 

Sex No. in strata % of sample total
Male 92 78
Female 25 22
Total 117 100

 

TABLE 6 - Sample structure of the least effective
sections based on sex

W

 

 

Sex No. in strata % of sample total
Male 51 39.8

Female 77 60.2

Total 1 128 100

r—f v—V'

 

 

 

 

 

 

 

 

76

TABLE 7 - Sample structure of the most effective
sections based on age

 

 

Age No. in strata % of sample total
18-35 39 33.3

36-50 #5 38.u
51-over 33 28.3

Total 117 100

TABLE 8 - Sample structure of the least effective
sections based on age

 

—— 14 “H
—:‘ r— ’—

 

 

Age No. in strata % of sample total
18-35 58 45.3
36-50 38 29.6
SO-over 32 25.1

w fw—

Total 128 100

 

 

 

 

 

 

 

 

77

TABLE 9 - Sample structure of the most effective
sections based on education

 

C—W — r
——-r j 1

 

 

 

 

 

 

Education No. in strata % of sample total
Elementary 3 2.5

High school 55 4.7

College 50 42.8

Graduate 9 7.7

Total ‘ 117 100

 

TABLE 10 - Sample structure of the least effective
sections based on education

 

 

 

—— v... v.—

m

 

 

 

 

Education No. in strata % of sample total 3
Elementary l 0.78

High school 56 43.71

College 61 47-45

Graduate 10 7.8

Total 128 100

 

 

 

78

TABLE 11 - Sample structure of the most effective
sections based on income

 

 

 

Income No. in strata % of sample total
Under $8000 37 31.62
$800l-10,000 34 29.11
$10,001-12 22 18.8
$12,001-14 12 10.25
$14,001—16 6 5.12
$16,001-l8 1 0.85
818,001-20 2 1.70
$20,001-over 3 2.56

Total 117 100

 

TABLE 12 - Sample structure of the least effective
sections based on income

 

 

 

Income No. in strata % of sample total
Under $8000 76 59.37
$8001-$10,000 26 20.31
$10,001-12 10 7.81
$12,001-14 8 6.25
$14,001-16 3 2.34
$16,001-18 2 1.56
818,001-20 1 0.81
$20,001-over 2 1.56

 

Total 128 100

 

 

 

79

TABLE 13 - Sample structure based on the effectiveness
of the persons as ranked by their superiors.

 

% of total sample

 

 

Degree of No. in all
effectiveness organizations

More effective 138 56
Less effective 107 44
Total 245 100

 

Method of Analysis

Having selected the data collection techniques and

chosen the sample organizations and executives, data were
To analyze the data appropriate statistical

collected.
The criterian used for the selection of

tools were needed.
statistical tools was to have instruments capable of testing

the differences or similarities among groups. Since statis-

tical analyses employed in social sciences are generally

designed to test hypotheses, restatement of the present

study's hypotheses is in order. The hypotheses were:

(1) Organizations and executives that are rated
"effective" have a pattern of values that is
distinctively different from that of organiza-

tions and executives that are rated "ineffec-

tive.”

 

 

 

 

80

(2) Organizations that have homogeneous age, sex,
religion, income, and educational groups are
more likely to have value similarity than
organizations which do not have such homo-
geneity. Therefore, the more homogeneous the
organization, the more value similarity it will
have, and the more effective it will be.

(3) Value systems correlate significantly with the

perception of organizational effectiveness.
Therefore, a set of values can be identified
that affect the level of organizational effec-
tiveness.

To test and analyze these hypotheses, which are
based on the differences between effective and ineffective
groups, a statistical test of significance was employed.
The test of significance was based on formulas taken from
S. Siegel.25 This test is designed to compare statistical
values assigned to two or more groups based on the "group
median." Using the Rokeach's Value Survey, comparison was
made between value systems of the effective and ineffective
organizations as well as the effective and ineffective
executives. The test computed a group median for each of

the groups, for each of the values. In this computation

 

25

S. Siegel, Non-Parametric Statistics, (McGraw-Hill,

 

1956).

 

81

effectiveness was the "independent variable" and each of the
values in turn was a "dependent variable."

The medians were derived directly from the group
frequency distributions. These frequency distributions
showed how many of the effective and ineffective executives
ranked each value number 1, number 2, and so on up to 18.

On the basis of group medians and frequency distributions, a
chi square value and its probability of occurrence under a
two-tailed test was computed. To compute the chi square
values a "grand median" based on the median test for K
Independent Groups was calculated for the entire sample.

Each group was then divided into those above and below the
grand median. The chi square test performed on the frequency
table gave a test of the significance of the difference be-
tween the groups. Two and more levels of difference among
the medians of groups were considered significant difference.

The same test was performed for the value differ-
ences of the subgroups of the organizations under survey.

The subgrouping was based on five independent variables of
religion, sex, age, income, and education.

The second hypothesis, specifically, involved homo-
geneity of groups. A test of the degree of homogeneity of
the responding groups was necessary for an accurate analysis.
The concordance coefficients (an index of intragroup agreement),
therefore, was computed. The concordance coefficient is an

index of the degree of correlation between the ”value

 

 

 

 

82

profiles" of all group members. It is mathematically equiva-
lent to the average of the Spearman rank-order (rho)
correlations between all possible pairs of group members.
Similarly, a simple correlation analysis based on Spearman
rank-order was made between value systems and organizational
effectiveness.

Computations were accomplished through the use of a
CDC 3600 computer. The computer program used for the
statistical analysis and tabulation of data is called Routine

Oneway.26
Summary

In this chapter we discussed the data collection
techniques, the nature of the sample, and the method of
analysis. The Rokeach value survey along with several ques-
tions was employed to collect data from an educational in-
stitution, an insurance company, and a bank. Appropriate
methods were chosen for the analysis of the data. Presenta-
tion and analysis of the data is the subject of Chapters 4,
5, and 6.

 

 

26
For a discussion of the statistical tools used in
the analysis as well as the computer program Routine Oneway
see Appendix B.

 

 

 

 

\l
[I

CHAPTER 4
VALUE DIFFERENCES AND SIMILARITIES
Introduction

The purpose of this chapter is to present an
analysis of the field study data relative to the first
hypothesis (i.e., organizations and executives that are
rated "effective" have a pattern of values that is distinc-
tively different from that of organizations and executives
that are rated "ineffective"). The analysis was conducted
to detect what differences or similarities existed between
the value systems of departments rated "the most effective"
and those rated "the least effective."

The discussion in this chapter concerns value
differences and similarities among groups controlled by the
independent variable of effectiveness. This is approached
in four stages:

(1) Value systems were analyzed to find the

differences (and similarities) between values
of the "organizations which were rated "most
effective" and values of the organizations that

were rated "least effective."

83

 

 

 

84

(2) A number of the executives of the "most effec-
tive" organizations were rated ineffective by
their superiors. Also, the "least effective"
organizations contained several individuals who
were rated effective by their superiors. To
further clarify the value differences and simi-
larities among groups, this stage of analysis
was performed.

(3) Value systems were analyzed for similarities
and differences between two organizations that
were rated "most effective."

(4) An analysis of value systems was made to show the
differences and similarities between two organi-
zations that were rated "least effective".

In all stages of analysis tests of significance were
used to make inter-group comparisons on both a quantitative
and qualitative basis.

Comparison of the Value Systems of
the "Most" and the "Least" Effective Organizations

As a first approximation to the assessment of value
similarities and differences between two groups or organiza-
tions that are rated "most effective" and ”least effective,"
one question should be kept in mind throughout the discussion.
Do the executives of the effective organizations rank-order
their values in a different pattern compared to the rank-

ordering of values performed by the executives of

L2

 

 

 

c ..r
... . ...mh. ‘
. . and...

85

ineffective organizations?1

As was noted in Chapter 3, Table l, the values under
consideration are broadly classified into two categories -
Terminal and Instrumental. Furthermore, each category has
eighteen values. Thus the question may be rephrased: Do
effective organizations rank A COMFORTABLE LIFE significant-
ly higher (or lower) than ineffective organizations do?

The question must be repeated 36 times, each time with a
different value in it.

Table 14 shows the median ranks and the composite
rank orders of these median ranks for each of the terminal
values held by the effective and ineffective organizations.
Table 15 shows the same data for the instrumental values.

The two tables reveal that eight of the 36 values show no
differences between the two groups, while 18 of the 36 values
indicate significant differences (two or more levels of
difference in median ranks).

Considering first the results shown in Table 14, it
is immediately evident that the largest terminal value simi-
larity is found for: A WORLD OF BEAUTY, FAMILY SECURITY,
MATURE LOVE, and TRUE FRIENDSHIP. Both effective and in-
effective organizations ranked the above values 15, 16, l,

12, and 11 respectively. These values are socio-economic

 

1

For the sake of simplicity of the discussion, I
shall refer to the "most effective" organizations as "effec-
tive" group and to the "least effective" organizations as
"ineffective” group.

 

 

 

 

86

rather than organizational. The two groups showed other
significant terminal value similarities that are essentially
cultural values. These values are FREEDOM, NATIONAL
SECURITY, PLEASURE, SALVATION, and SELF RESPECT. The two
groups, however, exhibited significant differences in three
values - A SENSE OF ACCOMPLISHMENT, SOCIAL RECOGNITION, and
WISDOM. The effective group ranked A SENSE 0F ACCOMPLISH-

MENT 3 and the ineffective organization ranked it 7.

 

SOCIAL RECOGNITION was ranked 15 and 18 by the effective
and ineffectivegroups. WISDOM was ranked by the effective
and ineffective groups 9 and 6 respectively. FAMILY

SECURITY was the most important factor to both groups.

 

Analysis of Table 15 reveals that a very signifi-
cant similarity exists between the instrumental values -
guidelines of behavior - of the two groups. Both groups
attached the same amount of importance to AMBITIOUSNESS,
CHEERFULNESS, HONESTY, IMAGINATIVENESS, and RESPONSIBILITY.
There is no difference between the two groups in ranking
the most important and the least important instrumental
values. Both groups ranked HONEST l and IMAGINATIVE 18.

The difference between the two groups is evidenced
through the importance they attached to COURAGEOUS, and
LOGICAL. Table 16 shows the differences between the two

groups in two important values for a better accomplishment

of tasks.

 

 

 

 

 

 

 

 

 

 

8?

TABLE 14 - Terminal value medians and composite rank
orders for effective and ineffective organizations

 

 

 

 

 

 

 

 

Effgctive Ineffectigg
N =: 245
Median Rank Median Bank

A comfortable
life 8.00 8. 9.93 10
An exciting
life 12.72 14 13.20 15
A sense of
accomplishment 6.33 3 8.06 7
A world at
peace 6.83 5 5.39 2
A world of
beauty 13.88 16 13.50 16
Family
security 2.69 1 4.21 1
Freedom 6.40 4 6.60 5
Happiness 7.50 6 6.21 4
Inner harmony 10.06 10 8.08 8
Mature love 11.08 12 10.33 12
National
security 11.50 13 12.42 14
Pleasure 14.95 18 13.68 1?
Salvation 12.70 17 11.83 13
Self-respect 5.28 2 5.61 3
Social
recognition 12.74 15 14.88 18
True friend-
Wisdom 8.38 9 6.70 6

 

 

 

 

 

88

TABLE 15 - Instrumental value medians and composite
rank orders for effective and ineffective organizations

 

 

 

 

 

 

Effective Ineffective 7
N = 245 117 ‘_128 "
Median Rank Median Rank
Ambitious 5.25 3 6-50 3
Broadminded 7.46 5 8.50 6
Capable 6.00 4 8.06 5
Cheerful 10.30 9 9.17 9
Clean 10.56 11 7.33 4
Courageous 8.58 6 10.25 11
Forgiving 10.96 12 8.59 7
Helpful 10.50 10 10.63 12
Honest 2.45 1 2.92 1
Imaginative 14.20 18 14.50 18
Independent 11.00 13 11.00 14
Intellectual 12.13 14 12.25 16
Logical 10.19 8 11.90 15
Loving 13.19 17 10.63 13
Obedient 12.96 16 13.92 17
Polite 12.30 15 8.80 8
Responsible 4.27 2 4.40 2
Self controlled 8.91 7 9.50 10

 

 

 

 

 

 

89

TABLE 16 - Two instrumental value composite rank orders
for effective and ineffective groups

 

 

 

Effective Ineffective

117 128 .
N = 245 _ w
i
Rank Rank |
11_ _,_,__ I
Courageous 6 11 ‘

Logical 8 15

 

The history of economic prosperity and business success in-
dicates that individuals or organizations that were logical
and calculative in their operations under the guidance of
Courageous managers obtained better standards of achievement.2
The dominant values in the most effective organiza-
tions can,thus, be isolated as FAMILY SECURITY, A SENSE OF
ACCOMPLISHMENT, HONEST, RESPONSIBLE, COURAGEOUS, and
LOGICAL. The dominant values in the least effective organi-
zations are, namely: FAMILY SECURITY, A WORLD AT PEACE,
SELF-RESPECT, FORGIVING, HONEST, and RESPONSIBLE. Further'
significant differences between the two groups can be dis-
covered through the analyses performed in the following

sections.

2
See Alfred D. Chandler, Strate and Structure,

(Cambridge, Mass.: MIT Press, 19 2 and Ernes ale,
Great Organizers, (New York: McGraw-Hill, 1960).

 

 

 

90

Comparison of the Value Systems of More Effective
and Less Effective Individuals

The purpose of this section is to make comparisons
between the values held by effective and ineffective indi-
viduals regardless of the organization that they come from.

The comparison and analysis was made between the
executives who were rated effective by their superiors and
the executives who were rated less effective through the same
channel. Therefore, the analysis was based on the responses
receiVed from 138 effective individuals from the Educational
Institution, the Insurance Company, and the Bank and 107
less effective people from the same organizations. Table
17 shows the median rank and the Composite rank orders of
these median ranks for each of the terminal values held by
the effective and ineffective individuals. Table 18 shows
the same data for the instrumental values.

A careful consideration of Table 17 indicates that
the terminal values WISDOM, FREEDOM, PLEASURE, A WORLD OF
BEAUTY, and a COMFORTABLE LIFE showed the sharpest difference
between the two groups. Effective individuals ranked these
five values fourth on the average, ineffective people ranked
them fifth. To the ineffective individuals WISDOM and
FREEDOM were less important than PLEASURE, A WORLD OF BEAUTY,
and A COMFORTABLE LIFE. On the other hand, the effective
individuals attached more value to WISDOM, FREEDOM, A SENSE
OF ACCOMPLISHMENT, and SALVATION. The pattern of value

 

TABLE 17 - Terminal value medians and composite rank

91

orders for effective and ineffective individuals

Effective

 

 

 

 

Ineffective
138 107
N = 245
Median 'Rank Median Rank

A comfbrtable life 9.75 10 4.00 4
An exciting life 13.05 15 15.02 18
A sense of
accomplishment 7.59 7 9.09 12
A world at peace 5.21 2 4.33 5
A world of beauty 13.60 16 6.01 7
Equality 7.86 8 6.39 8
Family security 3.35 l 3.25 1
Freedom 6.38 4 6.57 9
Happiness 7.32 6 3.52 2
Inner harmony 9.05 9 5.21 6
Mature love 10.69 12 7.24 10
National security 12.40 14 12.30 14
Pleasure 14.55 17 8.91 11
Salvation 11.63 13 13.01 15
Self-respect 5.46 3 3.71 3
Social recognition 15.31 18 14.00 16
True friendship 10.66 11 10.11 13
Wisdom 7.14 5 14.12 17

 

 

 

 

92

TABLE 18 - Instrumental value medians and composite
rank orders for effective and ineffective individuals

 

 

 

 

 

 

 

 

 

Effective Ineffective
N = 2&5 13 O?

. Median Rank Median Rank
Ambitious 5.89 3 5.96 8
Broadminded 7.94 5 6.12 9
Capable 7.25 4 4.82 6
Cheerful 9.00 7 4.73 5
Clean 9.38 8 3.01 3
Courageous 9.69 10 11.07 15
Forgiving 8.75 6 2.70 2
Helpful 10.17 11 8.41 11
Honest 2.80 1 3.39 4
Imaginative 14.68 18 13.00 18
Independent 10.44 12 5.31 7
Intellectual 12.50 16 12.63 1?
Logical 11.38 14 11.76 16
Loving 11.93 15 9.02 12
Obedient 13.39 17 9.50 13
Polite 10.64 13 10.11 14
Responsible 4.41 2 6.32 10
Self-controlled 9.56 9 2.25 l

 

 

 

 

93
ranking of the effective individuals symptomized a dominant
ethic and philosophy of hard labor. sacrifice. and achieve-
ment.

There were. however. some similarities between the
value systems of both groups. Effective individuals as well
as ineffective ones attached the highest value to FAMILY
SECURITY. Equal importance was given to EQUALITY. NATIONAL
SECURITY. and SELF-RESPECT.

Turning now to Table 18. it is noted that the in-
strumental values RESPONSIBLE and SELF-CONTROLLED showed the
sharpest and the most significant difference between the
two groups. Effective individuals ranked RESPONSIBLE and
SELF-CONTROLLED 2 and 9. respectively. whereas the ineffec-
tive individuals ranked them 10 and l. RESPONSIBLE is clear-
ly a common value that is central within effectiveness: the
data indicate that effective people did indeed place a con-
siderably higher value on RESPONSIBLE. AMBITIOUS. HONEST.
and COURAGEOUS. On the other hand the ineffective personnel
clearly attached a significantly higher importance to CLEAN,
FORGIVING. INDEPENDENT. 10mm, and. SELF-CONTROLLED. In

 

general. the dominant value system held by the effective
individuals consisted of: FAMILY SECURITY. PEACE. SELF-
RESPECT. HONEST. RESPONSIBLE. CAPABLE. and A SENSE OF
ACCOMPLISHMENT.

 

The dominant value system held by the ineffective in-

dividuals clearly contained: FAMILY SECURITY. HAPPINESS.

   

 

 

 

 

94

SELFBRESPECT. SELFLCONTROLLED. HONEST. FORGIVING. CLEAN.
and CHEERFUL.

A comparison between the two dominant value systems
shows that the major difference lies in such values as
RESPONSIBLE. CAPABLE. A SENSE 0F ACCOMPLISHMENT - all of
them in effect. contributors to effectiveness. In the in-
effective group the three so-called contributors to effec—
.tiveness have been replaced by SELF-CONTROLLED. FORGIVING,
CLEAN. and CHEERFUL that in no direct way affect the level
of effectiveness.

Comparison of the value Systems of Two Different
Effective Organizations

This section contains an analysis and discussion of
similarities and differences between the value systems of
two organizations that were rated effective by their top
executives. The area probability sample for this analysis
consists of 75 respondents from the Insurance Company. and
32 observations from the Educational Institution. The third
group of the effective organizations. i.e.. Bank with ten
respondents has intentionally been excluded from this analy-
sis due to the small size of its sample.

The assessment of the value systems of the two
effective organizations showed very significant similarities
and considerably low differences in the ranking of the

values. Table 19 shows the Median rank and the Composite

 

 

 

 

 

 

 

 

95

rank orders of these median ranks for each of the terminal
values held by the effective organizations. Table 20 shows
the same data fer the instrumental values.

Consideration of the rank columns of Table 19 in-
dicates that both groups gave equal importance to ten out of
18 values. Six other values also were ranked with a very
little difference. Both groups assigned their highest
priority to FAMILY SECURITY and the lowest to MATURE LOVE.

A very clear distinction was seen in the pattern of rank-
ordering of the two groups on the values that led to the
achievement on individual basis with no apparent contribution
to the group's success. These values are FAMILY SECURITY,

A SENSE OF ACCOMPLISHMENT. and SOCIAL RECOGNITION. The three
values are clearly competence values that are central with-
in capitalistic ideology. A society that respects the

right of private ownership undoubtedly promotes competition
for the accumulation of wealth and capital. For. in a non-
capitalistic society. with a very limited right of private
ownership. FAMILY SECURITY is not in dispute at least in
terms of the basic financial needs. Also social recognition
in a socialist society is strived for incredibly less than

in a capitalistic society. Therefore. the three values that
the two effective organizations are subscribing to could be
counted as a dominant value for achievement.

The sharpest differences. although statistically of

little significance. between the values of the two groups

 

 

 

 

 

96
stood out on TRUE FRIENDSHIP and A COMFORTABLE LIFE. These
values. however. can not be conceived as direct determinants
of organizational achievement. It must be noted that the
analysis related to a composite rank-ordering of values on
the organizational level. not individual. TRUE FRIENDSHIP
and A COMFORTABLE LIFE may play an important role toward the
achievement of individual goals. but could not be a deter-
mining factor in the organizational level. Therefore. it
can be seen from the data that the two effective organiza-
tions enjoy the presence of a number of values that are
central to the organizational effectiveness. The areas of
difference were on an individual basis. not organizational,
and it can be questioned whether they have arisen from
differences in other category variables such as age. educa-
tion. income. sex. or age rather than effectiveness. Pre-
sentation of data concerning these category variables is the
subject of Chapter 5.

Turning now to Table 19 it is evident that both
organizations emphasized the importance of values that are
within the category of competence values. No significant
statistical difference existed between the instrumental

values of the two organizations.

Comparison of the Value Systems of Two Different
Ineffective Organizations

This section describes the final basis for testing

and analyzing similarities and differences between the value

 

 

 

97

TABLE 19 - Terminal value medians and composite
rank orders for two effective organizations

 

 

 

 

 

 

Educational
Insurance Com an In titution
N 3 107 73 32
Median Rank Median Rank
A comfortable life 6.41 12 6.21 10
An exciting life 3.72 4 4.00 4
A sense of
accomplishment 2.35 2 3.21 2
A world at peace 5.00 8 5.21 7
A world of beauty 8.80 16 8.73 16
Equality 3.97 5 4-39 6
FAmily security 2.21 1 3.17 1
Freedom 1 5.46 9 6.12 9
Happiness 8.63 15 8.02 15
Inner harmony 8.72 14 7.99 14
Mature love 9.29 18 9.79 18
National security 5.77 10 7.01 11
Pleasure 9.11 17 9.29 17
Salvation 7.25 13 7.30 12
Self-respect 4.51 7 5.90 8
Social recognition 3.01 3 3.40 3
True friendship 6.36 11 7-45 13
Wisdom 4.22 6 4.18 5

 

 

 

98

TABLE 20 - Instrumental value medians and composite

rank orders for two effective organizations

~__-‘_

 

 

 

*—

 

 

 

l—Zfiducationalfi_'
Insurance Company Institutign
N = 107 ____ 25
Median Rank Median Rank

Ambitious 2.73 l 2.71 2
Broadminded 4.31 7 4.00 8
Capable 2.79 2 2.33 1
Cheerful 8.30 17 9.26 18
Clean 8.00 16 7.61 15
Courageous 3.01 3 3.22 4
Forgiving 8.90 18 9.00 17
Helpful 6.0? 12 6.26 13
Honest 4.52 8 3.81 7
Imaginative 5.69 11 6.17 12
Independent 4.86 4.70

Intellectual 3.98 3.73

Logical 3.25 4 2.99 3
Loving 7.91 15 8.02 16
Obedient 5-12 10 5°11 10
Polite 7.21 14 7.53 14
Responsible 3.93 5 3-37 5
Self-controlled 6.70 13 5.96 11

 

 

 

99
systems of two organized groups. In the previous sections.
the value rankings were analyzed in order to determine the
dominant values of the organizations or groups of indivi-
duals under the survey. This section is similar to the
three previous analyses. especially the last. The area
probability for this analysis comprised 56 respondents from
one organization and 64 from another.

Table 21 shows the median rank and the composite
rank orders of these median ranks for each of the terminal
values held by the ineffective organizations. Table 22
shows the same data for the instrumental values.

Looking down the rank columns on Table 21 indicates
clearly that the two ineffective organizations had no
difference in almost half of the values. The areas of
significant difference was on the values of SALVATION,
SOCIAL RECOGNITION. and TRUE FRIENDSHIP. Except for the
Value of SOCIAL RECOGNITION. the other two are values central
within the religion of the respondents. Value differences
can occur due to the variable of religion.3 SOCIAL RECOG-
NITION value has been a matter of controversy throughout
this study. This value is considered a competence value.

contributor to the level of effectiveness. and yet gained

 

3Milton Rokeach. Beliefs Attitudes and Values.
(San Francisco: Jessey—Bass. 19685.

 

 

100

TABLE 21 - Terminal value medians and composite rank
orders for two ineffective organizations

W

 

 

 

 

Insurance Company 18:81:;218:
N = 120 5 ___ _» 63:9
_f _L. M ian Rank Median Rank

A comfortable life 3.72 3 3.01 2
An exciting life 6.33 11 5.95 10
A sense of

accomplishment 4.76 7 4.82 7
A world at peace 9.71 18 8.43 17
A world of beauty 8.47 16 8.13 16
Equality 3.41 2 3.32 3
Fhmily security 3.35 1 2.83 1
Freedom 7.25 14 7.81 14
Happiness 4.00 4 3.36 4
Inner harmony 9.09 17 9.00 18
Mature love 5.52 9 5-31 9
National security 6.91 12 6.27 11
Pleasure 5.01 8 5.07 8
Salvation 6.07 10 6.80 12
Self-respect 4.26 5 4.60 5
Social recognition 7.22 13 8.02 15
True friendship 8.07 15 7-50 13
Wisdom 4.39 6 4.65 6

 

 

 

101

TABLE 22 - Instrumental value medians and composite
rank orders for two ineffective organizations

 

 

 

1

 

 

 

 

 

 

fiifiucational
Insurance Company Institution
N = 120 .__
56 64
Median —Rank Median ififlRank
Ambitious 4.76 7 4.21 6
Broadminded 5.06 8 5.01 8
Capable 4.25 6 3.92 5
Cheerful 4.01 5 4.46 7
Clean 3.41 4 3.01 2
Courageous 5.93 10 6.00 11
Forgiving 3.36 3 5.29 9
Helpful 3.00 2 3.26 3
Honest 2.71 l 2.92 l
Imaginative 9.03 18 8.25 17
Independent 5.80 9 3.39 4
Intellectual 6.25 11 5.85 10
Logical 8.88 17 9.00 18
Loving 6.61 12 6.46 12
Obedient 6.80 13 6.81 14
Polite 7.60 15 7.30 15
Responsible 8.09 16 7'8" 16
Self-controlled 7.03 14 6°52 13

 

 

 

 

102
different importance from various groups of effective and
less effective executives.

' A look at Table 22 reveals no significant differences
in the value systems of these two groups of less effective
executives. Both groups attached the highest importance to
HONEST and the least to LOGICAL and IMAGINATIVE. Honesty.
of course. can play a great role in the individual and
organizational achievement. but it can not stand alone. The
importance that honesty gains should be coupled with LOGICAL.
IMAGINATIVE. and RESPONSIBLE as well as CAPABLE. AMBITIOUS.
and COURAGEOUS. The two groups under survey agreed on the
low level of importance to these competence values.

It can be interpreted that the dominant value of
these ineffective groups is a secure family with a comfort-
able life. although not exciting. full of love and equality
with very little attention to the well-being of others or a
common peace - a life that is full of honesty. forgiveness.
and cleanliness but little responsibility. obedience. and

imagination.
Summary of the Results of Values Differences and Similarities

From the data of this study the following points

are evident:

1) There was a significant difference between the
value systems of effective organizations and ineffective

organizations. Value similarities of the two groups of

 

 

 

103
organizations lie in socio-economic values rather than com-
petence values that make contribution to the achievement of
organizational goals.

2) Effective organizations indicated. on a cross-
reference analysis. that a value system consisting of those
values that are necessary for the accomplishment of purpose
was predominantly existing in the organization.

3) Similarly the ineffective organizations and in-
dividuals had a predominantly accepted value system that
consists of those values that contribute to a sweet life. no
anxiety and much fun. A SENSE 0F ACCOMPLISHMENT. RESPONS-
IBILITY. COURAGE. AMBITION. and capability that can serve as
a drive and motive toward higher levels of achievement was
sensibly weak in these organizations.

Having established the difference between the value
systems of the effective and ineffective organizations. the
reasons for the difference must be sought. Chapter 5 is

geared to this end.

 

 

 

 

 

CHAPTER 5

VALUE SYSTEMS OF THE SUBGROUPS
AND THE GROUP HOMOGENEITY

Introduction

The purpose of this chapter is to present the analy-
sis of the field study relative to the second hypothesis
(i.e., organizations that have homogeneous age. sex.'
religion. income. and educational groups are more likely to
have value similarity than organizations that do not have
such homogeneity. Therefore. the more homogeneous the
organization. the more value similarity it will have. and
the more effective it will be). The analysis was conducted
to determine the extent to which the respondents from both
the most effective and the least effective organizations
rank-ordered their value systems homogeneously. Since value
differences occur due to differences in religion. age. sex.
income. and education. the respondents were stratified under
these category variables controlling. at the same time. the
organizations (effective or ineffective) that they came from.
for the relationship of these variables with organizational

effectiveness. By this measure four factors were checked:

104

 

 

 

 

 

 

 

105

(l) The degree of homogeneity of ineffective and
effective groups with respect to the pattern
of rank-ordering of the values.

(2) The extent to which value similarities and
differences existed among groups stratified
under above category variables.

(3) The value orientation of each organization with
regard to the configuration of its members.

(4) The extent of adherence to competence values.
contributors to organizational effectiveness.
by each of the above groups.

To conduct this analysis statistical tests of con-

cordance. and significance of variance were utilized.

Analysis of Value Systems of Effective and Ineffective

Organizations Under Various Category Variables
General
The discussion in Chapter 4 centered around the

similarities and differences between the value systems of
effective organizations and individuals on one hand. and on
the other hand with that of ineffective organizations and
individuals. Also attempts were made to diagnose Egg;
similarities and differences existed in the value systems
of all groups surveyed. The fact that effective organiza-
tions or individuals. and ineffective organizations or in-

dividuals differed so markedly from one another on essential-

ly the same sets of terminal and instrumental values raises

 

 

 

 

 

 

106
the question as to whether the observed differences could
have arisen from differences in religion. age. sex. income.
and education. In other words. Chapter 4 locked at‘ghgt
differences not‘why differences. Chapter 5 treats the sub-
ject from both of these standpoints.

The analyses under the variable of effectiveness or
ineffectiveness - as the organizations and individuals were
rated by the superiors - showed that although the people
rank-ordered their value systems in their respective groups.
they had variances and differences among themselves. For
example. all those who were rated effective individuals did
not rank FAMILY SECURITY number one; rather there were
a number of rankings assigned to the same value. The logic
of coming up with the rank of one. as is seen in the tables
presented. for this value is that the statistical median of
the group was adopted as the composite median rank. To
determine how the members of each group had ranked a set of
values homogeneously. the concordance coefficients were com-

pUtedol

 

The following is a presentation of the value systems
of groups stratified under religion. age. sex. income. and
education as controlled by the organization from which the

respondents came.

 

1
For a description of this statistical test see:
Chapter 3. method of analysis.

 

 

 

 

 

 

107

Religion

An area probability of 117 observations were pooled
from the most effective departments of an Educational Insti-
tution. an Insurance Company. and a Bank. Also. an area
probability of 128 respondents were pooled from the least
effective departments of the same organizations. Table 23
shows the median rank and composite rank orders of these
median ranks for each of the terminal values held by the
effective organizations based on religion. Table 24 shows
the median rank and composite rank orders of these median
ranks for each of the instrumental values held by the effec-
tive organizations based on religion. Tables 25 and 26 show
the same data for the ineffective organizations based on
religion. I

The data in Table 23 gave a mixed impression. The
value priorities of the Catholics stood on one extreme and
those of those who profess in no religion on the other extreme.

The Protestant group was situated in between. The three

 

groups. however. had no significant differences in half of
the 18 terminal values. It can be interpreted that the
members of the three effective organizations had value simi-
larities in several cases regardless of the respondents'
religion. The sharp differences were evident among the three
groups on such matters as A SENSE 0F ACCOMPLISHMENT. HAPPI-
NESS. INNER HARMONY. and SALVATION. These are moral values
which. except for A SENSE 0F ACCOMPLISHMENT. do not firmly

 

 

 

 

 

108

TABLE 23 - Terminal value medians and composite rank-orders
for the effective organizations based on religion

 

 

 

 

 

 

Catholic Protestant None
Total r~1=117 25_ W84 8

Md? Rank Md. Rank Md. Rank
A comfortable life 9.00 10 8.25 7 5.00 5
An exciting life 13.00 15 13.00 14 8.00 8
A sense of
accomplishment 7.13 6 5.25 3 8.00 9
A world at peace 8.67 9 6.81 5 3.50 2
A world of beauty 14.25 17 13.91 16 11.00 13
Equality 7.00 4 8.67 8 4.00 3
Family security 2.75 1 2.61 1 3.00 1
Freedom 6.33 2 6.80 4 4.17 4
Happiness 6.33 3 7.78 6 9.83 10
Inner harmony 8.25 8 10.17 10 11.50 14
Mature love 11.25 13 11.17 13 10.00 11
National security 13.00 14 10.40 12 13.50 15
Pleasure 15.63 18 14.57 17 15.50 18
Salvation 10.67 12 13.38 15 14.50 16
Self-respect 7.00 5 5.19 2 5.00 6
Social recog-
nition 14.00 16 14.72 18 14.83 17
True friendship 10.25 11 10.33 11 10.50 12
Wisdom 7.75 7 9-10 9 5-50 7
Concordance
Coefficients 0.26 0.24 0.31

* MA. = Median

 

 

109

TABLE 24- Instrumental value medians and composite rank
orders for the effective organizations based on religion

 

 

 

 

Catholic Protestant None
N = 117 25_ 85 8

_Md?i Rank» Md. Rank Md. Rank
Ambitious 4.08 2 5.50 3 10.50 11
Broadminded 9.25 6 7.42 5 3.50 1
Capable 6.67 4 5.74 4 6-50 5
Cheerful 9.63 9 10.69 11 11.50 15
Clean 11.88 15 9.88 8 12.00 16
Courageous 8.00 5 8-75 7 9.00 9
Forgiving 11.25 13 10.85 12 11.50 14
Helpful 11.00 11 10.00 9 10.00 10
Honest 3.13 1 1.79 1 6.00 3
Imaginative 16.13 18 14.19 18 10.50 12
Independent 9.33 7 11.83 13 6.50 4
Intellectual 11.00 12 12.60 15 11.00 13
Logical 9.63 8 10.67 10 8.00 8
Loving 14.25 17 13.11 17 8.00 7
Obedient 12.80 16 12.93 16 16.00 18
Polite 11.75 14 12.33 14 14.00 17
Responsible 5.00 3 4.20 2 4.00 2
Self-controlled 9.67 10 8.75 6 8.00 6
Concordance
coefficients 0.23 0.22 0.20

* M4. = Median

 

 

110

relate to organizational effectiveness. Those who believed
in no religion differed from the religious groups by assign-
ing less importance to the above mentioned values and more
importance to A COMFORTABLE LIFE. AN EXCITING LIFE. A WORLD
AT PEACE. and EQUALITY. These values seem to have a very
low association with hard working and higher achievements.
The differences between the religious and non-religious
groups within effective organizations was noted in the com-
petence values Table 24. Religious groups attached more
importance to COURAGEOUS. AMBITIOUS. CAPABLE. LOGICAL.
whereas the non-religious groups emphasized the value of
BROADMINDED. IMAGINATIVE and INDEPENDENT. From this data it
was very hard to determine whether religion accounts for the
effectiveness of the group. However. two facts were observ-
able in this analysis and they were the concordance co-
efficient. and the percentage of each group in proportion
to the whole sample. The concordance coefficient of the
Protestant group was 0.23 (the average of concordance co-
efficients for terminal and instrumental values). indicating
the lowest degree of difference in the opinion of the group
members. .Also. the protestants comprised 71.8% of the
effective group.2
With respect to the effective organizations and the

data presented above. one general interpretation could be

2
See Table 3. Chapter 3.

111

made and that was: the effective organizations were com-
posed of predominantly Protestants with a high degree of
homogeneity. Further conclusion whether this homogeneity
and the dominant religion affects the dominant values of
the organizations and eventually the level of effectiveness
is pending the analysis of the same data for the ineffec-
tive organizations.

Tables 25 and 26 indicate that the religious groups
of ineffective organizations emphasized the values of
COMFORTABLE LIFE. FAMILY SECURITY. SALVATION. CHEERFUL.
CLEAN. FORGIVING and POLITE. These are a combination of
socio-economic and religious values that can hardly affect
effectiveness. But. on the other hand. the same group
gave less attention to AMBITIOUS. BROADMINDED. IMAGINATIVE.
INDEPENDENT. LOGICAL and AN EXCITING LIFE. These compe-
tence values are determinants of effectiveness.

By and large. a comparison between each value of each
religious or non-religious groups of the two effective and
ineffective groups revealed that: Although Protestants
comprised the majority in both groups. they did not rank-
order the competence values similarly. This was inter-
preted that the religious groups had apparent agreement on
the importance of the values that are non-contributors to
effectiveness. They sharply differed on competence values
which did not seem to be under the direct influence of the
religious convictions. The analysis of this sample size

under the stratification of religion did not find any

 

 

 

 

 

 

112

TABLE 25- Terminal value medians and composite rank orders
for the ineffective organizations based on religion

 

 

 

 

e Mal. e Medan,

Catholic Protestant None
N=128 29 85‘ 14
Md? Rank <£flggg Rank Md. Rank

A comfortable life 8.33 8 10.00 11 11.50 13
An exciting life 14.00 15 13.31 17 9.00 11
A sense of

accomplishment 8.00 6 7.92 7 8.50 10
_A world at peace 4.75 2 5.43 2 7.50 8
A world of beauty 14.80 17 12.85 15 13.00 14
Equality 8.75 10 8.63 9 7.50 7
Family security 2.36 1 4.20 1 6.50 4
Freedom 7.00 4 6.81 6 5.00 2
Happiness 8.00 7 5.75 3 6.50 3
Inner harmony 7.00 5 8.56 8 7.00 6
Mature love 10.75 13 9.67 10 10.75 12
National

security 12.33 14 12.31 14 13.50 15
Pleasure 14.20 16 13.00 16 15.00 16
Salvation 10.00 12 11.38 13 17.00 18
Self-respect 6.00 3 5-92 4 4.50 1
Social recog-

nition 15.71 18 14.56 18 15.75 17
True friendship 10.00 11 10.31 12 8.50 9
Wisdom 8.67 9 6.13 5 6.83 5
Concordance

coefficients 0.25 0.20 0.32

113

TABLE 26 - Instrumental value medians and composite rank-
orders for the ineffective organizations based on religion

Catholic

 

 

 

 

Protestant None

N = 128 29 85_ 14 ,1_
_~ Md? Rank Md. Rank _fiMd. Rank
Ambitious 5.75 3 6.75 4 5.00 2
Broadminded 9.25 10 8.43 6 8.00 5
Capable 7.00 4 8.44 8 6.50 4
Cheerful 8.63 7 9.00 10 13.50 16
Clean 8.63 6 6.42 3 10.00 11
Courageous 9.25 11 10.67 12 10.25 12
Forgiving 7.75 5 8.86 9 8.50 6
Helpful 11.33 14 9.88 11 12.00 14
Honest 2.80 1 2.75 1 4.00 1
Imaginative 15.63 18 14.92 18 8.50 7
Independent 11.25 13 11.33 14 9.50 9
Intellectual 11.75 15 12.25 16 13-00 15
Logical 14.58 16 11.33 15 10.50 13
Loving, 8.75 8 11.00 13 10.00 10
Obedient 15.25 17 13.29 17 17.17 18
Polite 9.13 9 8.29 5 14.00 17
Responsible 4.75 2 4.29 2 5.00 3
Self-controlled 10.40 12 8.44 7 9.50 8
Concordance
coefficient 0.22 0.17 0-19

* Md“ 3.: MCC‘OILY)

 

 

 

 

114

necessary association between the level of organizational
effectiveness and religious values. A larger sample. how-
ever. is required to provide reliable information to test
this notion.

Agg

Stratification of the sample by religion did not
present a firm answer as to whether the religion had a sig-
nigicant association with.these differences. Since it is
thought that values do not remain constant throughout the
Person's life. it was asked whether age associated with value
differences and. therefore. whether the age configuration
in an organization could affect the level of its effective-
ness.

Tables 27 and 28 show the median rank and composite
rank orders of these median ranks for each of the terminal
and instrumental values held by the effective organizations
based on age. Tables 29 and 30 show the same data for in-
effective organizations.

Attention to Tables 27 and 28 indicates that the
three groups of executives had a general agreement on FAMILY
SECURITY. SELF-RESPECT. SOCIAL RECOGNITION. HAPPINESS. FREE-
DOM. and A WORLD OF BEAUTY. They also concured on the in-
strumental values of BROADMINDED. CAPABLE. CHEERFUL. HONEST.
INTELLECTUAL. LOVING. RESPONSIBLE. and SELF-CONTROLLED.

The sharpest difference was noted in the area of A WORLD AT
PEACE. EQUALITY. INNER HARMONY. MATURE LOVE. NATIONAL

115

TABLE 27 - Terminal value medians and composite rank-orders
for the effective organizations based on Age

 

 

 

 

18 to 35 years 36 to 50 years _51-0ver
N = 117 .39 45 .33

Md? Rank Md._, Rank Md. Rank
A comfortable
life 7.75 7 10.00 10 6.88 4
An exciting life 9.88 12 14.71 16 12.70 15
A sense of
accomplishment 5.80 3 9.25 9 4.00 2
A world at peace 8.75 10 4.42 2 5.90 5
A world of beauty 14.80 17 13.92 15 12.50 14
Equality 9.20 11 7.08 5 7.33 6
Family security 2.60 1 2.32 1 3.25 1
Freedom 6.20 4 6.38 4 7.50 7
Happiness 7.25 6 7.38 9 8-00 8
Inner harmony 11.00 13 10.00 11 8.25 9
Mature love 7.75 8 12.33 14 14.67 17
National
security 14.88 18 8.38 8 11.50 13
Pleasure 12.88 14 15.56 18 15.25 18
Salvation 14.80 16 11.75 13 10.83 12
Self-respect 4.25 2 5.94 3 5.75 3
Social recog-
nition 14.25 15 15.19 17 13.20 16
True friendship 8.42 9 11.75 12 10.67 ll
Wisdom 7.00 5 8.00 7 10.25 10
gases: 0....

’1 M‘L: =Meoitav:

 

 

 

 

116

TABLE 28 - Instrumental value medians and composite

rank-orders for the effective organizations based on age

 

 

 

 

 

 

 

18135 years g36-50_years ‘50-over

N=1l7 112 45 33

Md? Rank Md. w“Rank Md. Rank

Ambitious 4.60 2 5.63 3 5.67 4
Broadminded 6.29 5 8.75 6 8.00 5
Capable 5.80 4 6.88 4% 5.50 3
Cheerful 10.63 10 9.88 8 10.50 12
Clean 12.33 16 10.00 9 10.33 11
Courageous 9.00 8 8.31 5 10.00 9
Forgiving 11.75 14 10.88 12 9.83 8
Helpful 11.25 12 10.67 11 9.30 7
Honest 3.75 1 2.13 1 2.00 1
Imaginative 11.25 11 14.13 18 15.70 18
Independent 7.33 6 12.13 14 11.80 15
Intellectual 11.63 13 12.33 15 12.83 16
Logical 9.58 9 10.38 10 11.50 14
Loving 12.20 15 13.13 17 14.50 17
Obedient 14.88 18 12.38 16 11.25 13
Polite 13.05 17 11.63 13 10.17 10
Responsible 5.42 3 3.22 2 4.00 2
Self-controlled 8.60 7 9.33 7 0.OO 6

Concordance 453’ ‘—

coefficients 0.22 0.22 0.25

“ Md. 5 Medu'cun

117
SECURITY. SALVATION. TRUE FRIENDSHIP and WISDOM. They also
differed in CHEERFUL. CLEAN. FORGIVING. IMAGINATIVE. LOGICAL,
and OBEDIENT. The young executives from effective organi-
zations were after A SENSE OF ACCOMPLISHMENT. A COMFORTABLE
IJFE. AN EXCITING LIFE. A MATURE LOVE, PLEASURE, SOCIAL
RECOGNITION. TRUE FRIENDSHIP. and WISDOM. They also emphas-
ized AMBITIOUS. IMAGINATIVE. INDEPENDENT. INTELLECTUAL,
LOGICAL. This group gave its least priority to OBEDIENT. a
value adhered to by the older and very well established in-
dividuals. NATIONAL SECURITY did not appeal to the young as
much as it did to the old. The young executive. in general.
valued the competence values higher than the old one. A
trend analysis showed that the older the executives become,
the less they vadue AMBITIOUS. IMAGINATIVE. INDEPENDENT.
INTELLECTUAL, LOGICAL. AN EXCITING LIFE. FREEDOM. HAPPINESS,
MATURE LOVE. and PLEASURE. This line of thought can estab-
lish an attitude toward work and organization which can
result in stagnation. immobility. and incompetence.

Those executives who were in the age group of 36-50
shared some of their values with the young and others with
the old executives. This group has not established its
values and attitude as firmly as the older group. However.
less turbulance was noted in their values, especially when
the concordance coefficient was considered. This middle
group had a higher level of homogeneity and can. if assigned
to the key positions. steer the organization towards greater

achievements.

 

 

 

118
Turning to Tables 29 and 30 for the comparison of

the ineffective organizations with effective ones, it is
noted that the young executive in effective organizations

was to some extent unlike his counterparts in the effective
organizations. He was less worried about FAMILY SECURITY.
IEEASURE. SOCIAL RECOGNITION. AMBITIOUS. BROADMINDED.
CAPABLE. COURAGEOUS. IMAGINATIVE. INDEPENDENT, INTELLECTUAL.
RESPONSIBLE and SELF-CONTROLLED. The comparison between the
two groups of young executives was clear evidence that in-
effective executives did not attach much importance to the
competence values. Taking into consideration that over 45
percent of the executives in the least effective organiza-
tions were in the age bracket of 18-35. more than the other
two age groups percentage-wise. the data lends itself to an
interpretation that the group had a hard impact on the total
incompetence of the organizations. Furthermore. the Age,

as a control variable. seems to have created a dominant value
system in the organization that can be geared to effective~
ness. But. before a generalization could be made. it was
necessary to note two things: (1) whether sex can dis-
criminate between value system: and (2) if so. whether the
sex configuration of effective and ineffective organizations
is such that an interpretation can be made on the associ-
ation between value systems and Effectiveness. I will dis-

cuss these questions in the next subsection.

 

 

 

 

 

 

119

TABLE 29 - Terminal value medians and composite
rank-orders for the ineffective organizations based on Age

 

 

 

 

_;§g3§_years 36350 years _5lpovergfi
N = 128 58 .38 32
Mdf' Rank Md. Rank __ Md. Rank
A comfortable life 10.67 12 8.17 8 11.17 11
An exciting life 13.50 16 12.00 13 13.00 16
A sense of
accomplishment 9.83 11 6.83 6 6.50 4
A world at peace 3.25 l 8.50 9 5-67 3
A world of beauty 13.61 17 12.25 15 14.17 17
Equality 7.50 7 9.75 11 8.17 5
Family security 6.30 4 2.90 l 2.40 1
Freedom 4.88 2 6.70 5 8.25 6
Happiness 5.00 3 5.50 4 8.50 8
Inner harmony 8.50 8 7.17 7 8.25 7
Mature love 8.50 9 9.50 10 12.50 14
National security 12.50 14 12.50 16 12.25 13
Pleasure 13.30 15 12.83 17 15.07 18
Salvation 11.75 13 12.17 14 11.50 14
Self-respect 7.10 5 4.50 2 4.17 2
Social recog-
nition 15.50 18 14.90 18 13.00 15
True friendship 9.38 10 10.90 12 10.50 10
Wisdom 7.21 6 4.70 3 8.83 9
Concordance 7V
coefficients 0.21 0.21 0.29

 

 

 

 

 

120

 

TABLE 30- Instrumental value medians and composite
rank orders for the ineffective organizations based on Age

 

 

 

 

18-35 years 36-50_years _51-over
N = 128 58 #38 32

Md? Rank Md. Rank__ Md. Rank
Ambitious 6.64 3 6.33 3 6.00 3
Broadminded 8.36 6 8.25 5 9.50 11
Capable 8.50 8 7.75 4 7.50 4
Cheerful 8.17 5 9.17 10 12.10 14
Clean 6.25 2 8.50 7 9.00 9
Courageous 12.25 15 9.00 8 8.00 6
Forgiving 8.50 9 10.50 11 7.83 5
Helpful 10.75 13 11.50 12 8.75 7
Honest 3.00 1 3.83 2 2.21 1
Imaginative 14.75 18 13.50 18 15.50 18
Independent 10.10 11 12.50 15 12.50 15
Intellectual 12.75 16 12.50 16 11.17 12
Logical 11.25 14 12.25 14 12.50 16
Loving 8.50 10 12.00 13 11.83 13
Obedient 14.38 17 13.50 17 12.83 17
Polite 8.36 7 9.17 9 8.90 8
Responsible 7.00 4 2.50 1 3.50 2
Self-controlled 10.25 12 8.50 6 9.50 10
Eancordance _‘ 7‘ 1__
coefficients 0.16 0.18 0.23

1* Mal. z Median

flaw-......

121

§g§

To determine if the category variable of Sex had any-
thing to do with the level of organizational effectiveness
through the value systems of the groups. value data were
stratified for respondents of different sex groups of both
effective and ineffective organizations. The area prob-
ability of 117 people from the effective organizations con-
tained 92 male and 25 female. Also from among 128 indivi-
duals who work in the ineffective organizations under survey
51 were male and 77 female. Tables 31 and 32 show terminal
and instrumental value medians and composite rank~orders
for effective and ineffective organizations based on sex.

The value systems of both effective and ineffective
organizations has already been analyzed while the whole group
regardless of their sex were under consideration. It was
noted in the analysis of Tables 31 and 32 that the male
group from both the effective and ineffective organizations
had value similarities in 17 of 36 terminal and instrumental
values. The most significant differences were found in the
values of CHEERFUL. POLITE. LOVING. INDEPENDENT. SELF-
CONTROLLED. AN EXCITING LIFE. EQUALITY. FREEDOM. INNER
HARMONY. NATIONAL SECURITY. and NISDOM all. more or less.
cultural or moral values. The same groups had value simi-
larities with no significant difference on AMBITIOUS. BROAD-
MINDED. CAPABLE. COURAGEOUS. IMAGINATIVE. and OBEDIENT - all

competence values. contributors to effectiveness.

 

122

TABLE jfl.- Terminal value medians and composite rank

orders of values for effective

clnd

ineffective organizations based on sex

In Effective

Effective Organiza-

 

 

 

 

 

Organizations 11228
N = 245 Male Female Malgp Female
51 72 192 23,
Md? Rank Md. _Bank Md. Rank Md. Rank

A comfortable life 8.38 9 10.67 12 7.75 7 10.00 11
An exciting life 9.00 10 15.00 17 12.56 14 14.58 16
A sense of

accomplishment 6.40 3 9.08 9 6.38 3 6.25 5
A world at peace 6.44 5 4.56 l 6-94 5 5.00 3
A world of beauty 14.42 18 12.89 15 14.00 16 13.25 15
Equality 10.60 12 7.75 7 8.50 8 6.38 7
Family security 2.39 l 5.38 2 2.34 1 5.00 2
Freedom 7.60 7 6.00 4 6.43 4 6.33 6
Happiness 6.80 6 5.92 3 7.75 6 6.75 8
Inner harmony 7.63 8 8.31 8 10.33 11 9.00 9
Mature love 11.40 13 9.33 10 11.17 13 11.00 13
National security 14.14 17 11.42 14 10.25 10 12.88 14
Pleasure 13.00 16 14.08 16 14.56 18 16.13 18
Salvation 12.38 14 11.00 13 13.63 15 10.25 12
Self-respect 5.08 2 6.08 5 5.42 2 4.67 1
Social recog-

nition 12.88 15 15.69 18 14.50 17 15.13 17
True friendship 10.33 11 9.86 11 10.50 12 10.00 10
Wisdom 6.42 4 6.78 6 8.75 9 6.25 4
ggggglg?2;:s 0.22 0.23 0.23 0.30

* Md. .-.- MCL {an

 

 

123

TABLE ‘32- Instrumental value medians and composite
rank orders of values for effective and ineffective
organizations based on sex

Ineffectiye Organization Effpctive Organization

N

 

 

 

 

= 245 Male Female Male Female
:fls:_ ___ 7Z_1 92 25
Md.* Rank Md . Rank Md.g Rank Md . gag};

Ambitious 5.38 2 6.78 4 4.86 3 9.00 9
Broadminded 8.38 5 8.60 8 7.50 7-33 7
Capable 5.40 3 9.40 10 6.00 4 6.00 3
Cheerful 11.13 13 8.06 6 10.08 8 10.75 12
Clean 9.75 8 6.29 3 11.00 11 7.13 5
Courageous 9.25 7 11.38 13 9.10 7 8.00 8
Forgiving 10.38 10 7.75 5 10.79 10 12.25 14
Helpful 11.63 14 9.60 12 11.19 12 7.00 4
Honest 4.00 l 2.43 1 2.60 l 2.00 1
Imaginative 13.57 18 15-55 18 14-08 18 14-38 18
Independent 10.13 9 11-40 14 11.61 13 7.25 6
Intellectual 12.38 16 12.13 15 11.86 14 13.75 1?
Logical 11.00 12 12.42 16 10.19 9 10.20 10
Loving 12.33 15 8.75 9 13.29 17 13.08 16
Obedient 13.38 17 14.05 17 12.94 16 13.00 15
Polite 10.60 11 8.15 7 12.53 15 11.25 13
Responsible 5.75 4 3.94 2 ”~05 2 5-13 2
Self-controlled 9.00 6 9.58 11 8.00 6 10.75 11
Concordance II

coefficients 0.17 0.20 0.21 0.25

*Md‘=fiwMan

124

A comparison between the value systems of the female
group from both types of organizations indicated that the I
female from effective organizations had value similarities
with the female group from ineffective organizations in the
following values: A COMFORTABLE LIFE. AN EXCITING LIFE. A
WORLD OF BEAUTY. EQUALITY. FAMILY SECURITY. NATIONAL SECURITY.
SALVATION. and WISDOM. Also. they ranked BROADMINDED. HONEST,
IMAGINATIVE. RESPONSIBLE. and SELF-CONTROLLED similarly.

The differences between them. however. stood out in
AMBITIOUS. CAPABLE. COURAGEOUS. FORGIVING. HELPFUL. INDEPEND-
ENT. LOGICAL. LOVING. and POLITE. The female group from the
effective organization attached more importance to compe-
tence values than its counterpart in ineffective group.

A similar comparison between the value systems of the
effective and ineffective organizations with consideration of
sex configuration indicated that ineffective organization
with a majority of females (60%) had a dominant value com-
posed of A WORLD AT PEACE. FAMILY SECURITY. HAPPINESS. MATURE
LOVE. SELF RESPECT. CLEAN.FORGIVING. and CHEERFUL. This
group. specifically. and their organization (the least
effective ones) attached less importance on such values as
LOGICAL. INDEPENDENT. COURAGEOUS. and CAPABLE - all compe-
tence values. The effective organizations had no more than
22 percent of female and had distinctively different value
systems from the ineffective organizations. The difference

was remarkable in the competence values.

 

125

Tables 31 and 32 also showed much difference between
the concordance coefficients of the female and male groups
from the two different organizations. From these Tables
the average concordance coefficient of the effective male
group was 0.185. whereas that of the ineffective group was
0.22 (the difference of 0.35 is not significant in group
homogeneity).3 The effective female group's concordance co-
efficient was significantly smaller than the ineffective
female group - an indication of greater homogeneity in the
former group than the latter one. In both cases. however.
the female group was less homogeneous than the male group.
Considering the majority of the individuals in both groups
of organizations. (22% female in effective and 60% female
in ineffective organizations) and the level of homogeneity
as stated above. the data was interpreted that the female
group with a great adherence to moral values and little
emphasis for the competence values may have affected the
level of organizational effectiveness.

Income and Educatign Indices of Social Class

The fact that effective and ineffective organizations

 

differed so significantly from one another on essentially
the same sets of terminal and instrumental values raised

the question as to whether the observed differences among

3
See Appendix B for the detail discussion of concord-
ance coefficients.

 

126
executives could be related to differences in social class.
To determine if this is indeed the case. value data were
stratified for respondents of different income groups and
education groups on the assumption that income and education
are two of the best indices of social class.’4 The results
of stratification by income are shown in Tables 33-37.
The results of stratification by education are found in

Tables 38-41.

Income

Tables 33 and 34 show terminal and instrumental
value medians and their composite rank orders for the effec-
tive organizations based on income. Tables 35 and 36 show
the same data for ineffective organizations. A comparison
between the terminal value systems of the effective and in-
effective organizations revealed that those who were in the
middle and upper levels of income had a great value similar-
ity. But considering the distribution of income and the per-
centage of such people in the two organizations indicated
that they were in a distinguishable minority. Almost 80%
of the executives of the effective organizations and 88% of
the ineffective organizations were in the income bracket of

something less than $12,000.

4
. Sociologists have employed income. education. occu-
pation and family origin as the indices of social class. In-
come and education have been used in their studies more fre-
Quently than any other index. For example. Milton Rokeach

 

 

 

 

127

TABLE 33 - Terminal value medians and composite rank
orders for the effective organizations based on income

Under $12,000 3812;001:818.000 $18,001-over

 

 

 

N = 117 193 _f_522 15
Md? Rank Md. ‘Rgnk Md. Rank
A comfortable
life 8.00 8 7.05 7 7.25 7
An exciting life 14.21 17 12.11 13 13.00 15
A sense of
accomplishment 5.73 3 4.21 3 4~20
A world at peace 6.30 5 5.96 5 4-59 4
A world of beauty 14.00 16 13.70 15 10.33 12
Equality 7.79 7 7.66 8 7,39 8
Family security 2.69 1 2.56 1 2.39 1
Freedom 6.21 4 5.73 4 5.00 5
Happiness 7.01 6 6.70 6 6.73 6
Inner harmony 8.93 10 11.21 12 12.60 13
Mature love 9.29 12 12.15 14 12.79 14
National security 10.11 13 8.35 10 10.02 11
Pleasure 14.90 18 14.50 18 14.99 18
Salvation 10.90 14 13.93 16 14.71 17
Self respect 5.28 2 3.95 2 3-21 2
Social recog-
nition 13.70 15 14.01 17 14.50 16
True Friendship 9.02 11 9.27 11 10.00 10
Wisdom 8.66 9 8.00 9 8.01 9

_

 

 

 

 

 

128

TABLE 34-- Instrumental value medians and their composite
rank orders for the effective organizations based on Income

 

 

 

___ Under 812.000 $12.001-18,000 $18.900-over
N = 117 ___ 93 __g 19 5
Md .1. Rank Md. Rank Md . Rank
Ambitious 3.70 3 3.15 3 4.71 3
Broadminded 4.23 5 5.01 5 5.09 5
Capable 3.99 4 5.07 6 4.76 4
Cheerful 7.50 9 9.00 11 6.33 8
Clean 8.29 11 7.00 8 8.50 11
Courageous 4.62 6 3.90 4 6.02 7
Forgiving 8.76 12 8.20 10 8.00 10
Helpful 7.93 10 6.12 7 8.80 12
Honest 2.45 1 2-23 l 3.20 1
Imaginative 12.02 18 12.00 18 11.65 18
Independent 9.00 13 9.29 12 9.21 13
Intellectual 9.90 14 9.71 13 9.53 14
Logical 6.00 8 9.90 14 7.26 9
Loving 11.77 17 11.40 17 11.00 17
Obedient 11.00 16 10.11 15 10.26 16
Polite 10.21 15 10.36 15 9.71 15
Responsible 3.21 2 2.71 2 3.90 2
Self-controlled 5.09 7 7.77 9 5-95 6

 

L—“l

* Md. == Median

 

 

 

 

 

129

TABLE 35 - Terminal value medians and their composite
rank orders for the ineffective organizations based on income.

 

 

 

UndergfilZLOOO $12ngl;18.000 $18LQOO-ovgp
N = 128 112 3513 3

M d .1. Rank Md . Rank Md . Rank
A comfortable
life 16.07 12 8.38 9 6.26 8
An exciting
life 15.00 17 9.00 10 6.63 9
A sense of
accomplishment 9.08 9 6.40 3 3.95 3
A world at peace 4.56 1 6.44 5 4.80 5
A world of beauty 12.89 15 14.42 18 13.00 18
Equality 7.75 7 10.60 12 7.75 10
Family security 5.38 2 2.39 1 3.25 1
Freedom 6.00 4 7.60 7 8.02 12
Happiness 5.92 3 6-80 6 5.00 6
Inner harmony 8.31 8 7-63 8 5.39 7
Mature love 9.33 10 11.40 13 8.41 13
National
security 11.42 14 14.14 17 10.11 16
Pleasure 14.08 16 13.00 16 9.00 14
Salvation 11.00 13 12.38 14 9.50 15
Self-respect 6.08 5 5.08 2 3.71 2
Social recog-
nition 15.69 18 12.88 15 10.92 17
True friendship 9.86 11 10.33 11 7.94 11
Wisdom 6.78 6 6.42 4 4.22 4

h

* MCL =MeoUcm

 

 

130

TABLE 36- Instrumental value medians and their composite
rank orders for the ineffective organizations based on income
Under $12,000

$12L001-18,000 $181091;0VQ£

 

 

 

 

 

N = 128 112 13_ _3

Mdfl ‘Rank Md. Rank Md. Rank
Ambitious 6.78 4 5.38 2 4.01 3
Broadminded 8.60 8 8.38 5 5.00 5
Capable 9.40 10 5.40 3 3.95 2
Cheerful 8.06 6 11.13 13 7.88 12
Clean 6.29 3 9.75 8 6.70 8
Courageous 11.38 13 9.25 7 5.77 7
Forgiving 7.75 5 10.38 10 7.22 10
Helpful 9.60 12 11.63 14 8.50 13
Honest 2.43 1 4.00 1 3.22 1
Imaginative 15.55 18 13.57 18 11.02 17
Independent 11.40 14 10.13 9 6.93 9
Intellectual 12.13 15 12.38 16 9.50 15
Logical 12.42 16 11.00 12 7.36 11
Loving 8.75 9 12.33 15 8.99 14
Obedient 14.05 17 13.38 17 10.20 16
Polite 8.14 7 10.60 11 12.00 18
Responsible 3.94 2 5-75 4 4:23 4
Self-controlled 9.58 11 9.00 6 5.49 6
at Met -.- Median

 

 

 

 

 

 

 

 

 

 

131

According to Tables 11 and 12 (Chapter 3) those
members of the two organizations who drew less than $8,000
were almost 32% and 60% in effective and ineffective organi-
zations respectively. Additionally. Tables 33. 34, 35, and
36 revealed the following:

1) Those who had lower income attached much import-
ance to such moral values as CLEAN. FORGIVING, HELPFUL.
OBEDIENT, SALVATION. COMFORTABLE LIFE, and TRUE FRIENDSHIP.
However the competence values. at the same time gained more
importance from this group than the more affluent groups.
Table 37 shows composite value medians for the effective
and ineffective groups based on income under $12,000 matched
on sex. Matching these responses to sex it was further
revealed that. in the ineffective organizations the lower
income group was mostly young-female who comprised a major-
ity of 60% of the organization members.5

2) The higher income groups possessed conservative
values that are evidenced through the importance they attach
to pleasure and happiness. They have a rather established
pattern of behavior, living, and values which is pro status—

quo. This pattern of differences distinguishing the male

 

——

took income as a single criterion of social class. See:
Milton Rokeach, “Value Systems in Reli ion.“ Review of

Religions Researgg. V01. 11. No. 1. 19 9.

5
See Tables 6 and 8, Chapter 3.

 

 

 

 

 

132

TABLE 37 - Composite value medians for the effective and in-
effective groups based on income under $12000
matched on age and sex

 

 

 

 

 

. Effective Ineffective
h = 93* 112*
Median Rank Median Rank

Clean 8.29 11 6.29 3
Forgiving 8.76 12 7.75 5
Helpful 7.93 10 9.60 12
Obedient 11.00 16 14.05 17
Salvation 10.90 14 11.00 13
Comfortable '
Life 8.00 8 16.07 12
True Friend-
ship 9.02 11 9.86 11

 

*77 out of 112 individuals from ineffective group are female.

Only 20 out of 93 persons from the effective group are
female 0

 

 

 

 

 

133

lower income from both the old higher income people. and
the female lower income class reinforced two things:

a) Sex. once again. is a value discriminator and may be a
determinant of the level of effectiveness. b) Income level
as an indication of social class may be the basis of the

value differences found between effective and ineffective

 

organizations.

Education
Social class. as measured by income level, revealed

the differences in value systems which were not directly

 

related to income. But, a matching with sex variable showed
that under the conditions of difference in sex the level of
effectiveness differed among the groups. To determine whether
this is indeed the case, education as another index of social
class, which has been used in a great number of social
studies, was used. Value data were stratified and analyzed
for respondents of different education groups.

Tables 38, 39, 40. and 41 show the terminal and in-
strumental value medians and composite rank order of values
for effective and ineffective groups based on education.

An examination of the rank columns of these tables

indicated the following:

 

l) The less educated group had different value sys-
tem from the more educated group both in comparison within

and without the effective or ineffective organization.

 

 

 

134

TABLE 38 - Terminal value medians and composite rank
order of values for effective organizations based on education

 

 

 

Elgggntary* High School 'Collgge
N a 117 .3 55 59__
Egg? Rank Md. Rank Md. Rank
A comfortable '
life 4.74 8 5.23 10
An exciting life 10.11 17 6.60 12
A sense of
accomplishment 3.00 3 3.91 5
A world at peace 3.97 5 4.41 7
A world of beauty 10.00 16 9.00 16
Equality 4.36 7 4.88 8
Family security 2.43 1 2.36 1
Freedom 3.29 4 4.00 6
Happiness 4.02 6 3.72 4
Inner harmony 5.60 10 4.95 9
Mature love 7.39 12 6.00 11
National security 8.09 13 8-50 15
Pleasure 11.00 18 7.21 13
Salvation 9-01 1” 9°90 17
Self-respect 2.71 2 3.07 2
Social recognition 9-70 15 7°96 1”
True friendship 7-20 11 10.39 18
Wisdom 4.93 9 3.26 3

*Excluded from analysis due to the sample size.

‘7' Mdu =M¢oUdLn

135

TABLE 39 - Instrumental value medians and composite

rank order of values for effective organizations based on

 

 

 

education
E1ementary* High School College
N = 117 3_, 55 59
Mdf R225, Md. Rank Md. Rank

Ambitious 3.24 3 3.25 3
Broadminded 3.90 4 4.29 5
Capable 4.73 6 3.81 4
Cheerful 6.33 10 6.33 10
Clean 5.20 7 5.12 8
Courageous 4.41 5 4.60 6
Forgiving 7.11 11 7.40 11
Helpful 5.46 8 5.02 7
Honest 2.61 1 2.36 1
Imaginative 11.00 18 11.01 18
Independent 8.25 14 7.93 12
Intellectual 9.09 l6 8.39 1”
Logical 7.72 12 8.24 13
Loving 9.00 15 9.18 15
Obedient 7.91 13 10.02 1?
Polite 10.23 17 9.91 16
Responsible 2-79 2 9-11 9

6.02 9 2.84 2

Self controlled

.3—

*Excluded from analysis due to the sample size.

136

TABLE 40 - Terminal value medians and composite

 

 

 

 

 

 

 

rank orderof values for ineffective organizations based on
education
.1 Elementary* __;_fgigh Sghgol Angllgge
N = 128 11 56 _ 71 _
__ Md} _ Rank Md. __3_ Rapk Md. Rank
A comfortable
life 7.01 10 6.11 8
An exciting life 10.11 15 11.90 17
A sense of
accomplishment 4.00 3 4.79 5
A world at peace 4.81 5 5.19 6
A world of beauty 9.50 14 10.18 15
Equality 6.27 9 5.57 7
Family security 3.26 1 2.79 1
Freedom 4.39 4 7.99 11
Happiness 5.33 7 4.25 4
Inner harmony 7.66 11 7.21 10
Mature love 8-13 12 6.31 9
National security 11.20 17 11.53 16
Pleasure 10.39 16 9.00 13
Salvation 8.91 13 0.13 14
Self respect 3.79 2 3.32 2
Social recognition 12.00 18 12.02 18
True friendship 4.95 6 3-66 3
Wisdom 5.41 8 8.25 12
*Excluded from analysis due to the sample size.
’r Md. =MacUotn

 

 

 

 

 

137

TABLE 41 - Instrumental value medians and composite
rank order of values for ineffective organizations based on

 

 

 

 

 

education
_fi Elementary?w High School College
N = 128 l _155_ 121
__§ng Rank Md.__, Rank, Md. ggflggk
Ambitious 4.79 4 4.79 5
Broadminded 5.70 6 5.21 6
Capable 6.00 7 5.97 7
Cheerful 5.39 5 4.00 4
Clean 4.35 3 6.12 8
Courageous 6-19 8 3.25 3
Forgiving 7.12 9 6.39 9
Helpful 7.80 10 8.00 12
Honest 3.21 1 2.63 1
Imaginative 12.79 18 11.12 17
Independent 12.02 17 10.11 15
Intellectual 10.00 13 9.50 14
Logical 10.46 14 10.75 16
Loving 3.45 2 2.99 2
obedient 8.45 11 8.81 13
Polite 9.01 12 7.23 10
Responsible 11.30 15 7.80 11
Self controlled 11.91 16 12.00 18

h‘

A

#—

*Excluded from analysis due to the sample size.

+ Mal. c ”1661!.an

 

 

 

138

2) Those who were in the effective organizations and
had a higher level of education emphasized the importance of
competence values more than did their counterparts in the

less effective organizations. Examination of the rank

 

columns of Tables 38 and 40 revealed similarities and

differences between the value systems of different education-

 

al groups within effective and ineffective organizations.
A comparison between those with high school education from
the effective organizations and those of the ineffective
groups showed that the two groups had no difference of values
in 6 out of 18 terminal values. Both groups attached their
highest importance to FAMILY SECURITY. SELF-RESPECT, and
A SENSE OF ACCOMPLISHMENT. The sharpest difference between
the two groups, however, existed in TRUE FRIENDSHIP. SOCIAL
RECOGNITION, and NATIONAL SECURITY.

Turning to the instrumental values of the same
educational group within both organizations showed that no

significant difference, two levels of difference or more in

 

the median ranks, existed between them in such values as

AMBITIOUS. CAPABLE, HONEST, and IMAGINATIVE. all of which

 

are competence values. The sharpest difference between the
two groups of equal education was noted in CHEERFUL. CLEAN,
LOVING. POLITE. RESPONSIBLE, and SELF CONTROLLED.

A comparison of terminal and instrumental values of

the college educated individuals within both organizations

 

indicated that the two groups attached almost equal

 

 

 

 

139

importance to such competence values as A SENSE OF ACCOM-
PLISHMENT, IMAGINATIVE. and INTELLECTUAL. The differences
between these groups are in the importance of values
assigned to CHEERFUL. HELPFUL, LOVING, OBEDIENT, POLITE.
and SELF CONTROLLED, all of which are moral values.

Another comparison between the value systems of the
less educated group with the more educated group within and
without the effective and ineffective organizations reveal-
ed considerable differences in CLEAN, COURAGEOUS. RESPONS-
IBLE, SELF CONTROLLED. FREEDOM, HAPPINESS, PLEASURE, WISDOM,
TRUE FRIENDSHIP, and AN EXCITING LIFE.

In general, those who are in the most effective
organizations and have a higher level of education emphas-
ized the importance of competence values more than did their
counterparts in the least effective organizations. Having
equal level of education and differing so markedly in the
competence values, the members of the two organizations may
have been under the influence of other variables like sex,
age, religion, and income. Looking back to Tables 3 through
8 and 11 andlz in Chapter 3 indicated that the dominant
religion of both groups of effective and ineffective organi-
zations is Protestant. They have a similar educational
group but different age, sex. and income configurations.

Summary of the Analysis of Value Systems
of Sub groups and the Group Hemogeneity
Chapter 4 determined what differences existed between

the value systems of the ”effective” and "ineffective" groups.

 

 

 

 

140

The purposes of this chapter were to investigate the extent
to which such differences existed among groups stratified
by religion, age, sex, income, and education. The chapter
also investigated the degree of homogeneity of the above
groups and the relationship between their value systems and

organizational effectiveness.

 

It was realized that the two organizations had
similar religious and educational configurations. The in-

effective organizations had more homogeneity in respect to

 

sex and age than the effective organizations. Also. intra-
group homogeneity in expression of value systems existed in
the ineffective organizations more than it existed in the
effective organizations.

Both the effective and ineffective organizations
displayed considerably high differences of value systems
when studied under the variables of sex, age, and income.

On the other hand, the same groups did not react much
differently from each other when they were studied under the
variables of religion and education.

The discussion in Chapters 4 and 5 related to the

 

differences and the probable reasons for such differences
in the value systems of the "effective” and "ineffective"
organizations. These chapters analyzed the data with major
concentration on the first two hypotheses of this study.
Chapter 6 is to evaluate the data regarding the third hypo-

thesis (i.e., the correlation between value systems and how

   

 

 

 

141

the organizational effectiveness is perceived by the organi-

zational members.

 

 

 

 

 

 

CHAPTER 6

CORRELATION OF THE PERCEIVED ORGANIZATIONAL
EFFECTIVENESS WITH THE EXECUTIVES' VALUE SYSTEMS

 

Introduction

Chapter # involved primarily a comparison of value

systems between those organizations nominally identified as

 

effective and those which were rated ineffective. The
differences and similarities thus obtained were interesting
in their own right in that they described the value systems
of representative sub-samples of executives differing in
merit ratings performed by their superiors. Chapter 5 was
more analytical in that it dealt with the reasons why their
value systems were different. The past two chapters, there-
fore, analyzed the data with major concentration on the
first two hypotheses of this study.

This chapter deals with the perceptions of the same

executives concerning how they viewed the phenomenon of

 

organizational effectiveness and how they rated their organi-
zation, i.e., the third hypothesis (value systems correlate

significantly with the perception of organizational

142

 

 

 

143

effectiveness. Therefbre, a certain set of values can be
identified that affect the level of organizational effective~
ness). The purposes of this chapter are to present analysis
relative to three questions:

1) Whether there were any factors other than those
discussed in Chapter 6 that influence the value
systems of the employees and the extent of their
effectiveness.

2) How the perceptions of the employees correlate
with their expressed value systems.

3) Whether a set of values can be identified that
affect the level of organizational effectiveness.

The analysis in this chapter is based on an Opinion
poll of the subjects as to how they perceive of their organi-
zations in terms of leadership. motivation. satisfaction,
organization structure, organization's development policies.
and the employee attitude.

The data to be presented in this chapter was collect-
ed through a number of questions answered by the executives
simultaneously with their value survey.1 To make the
analysis median tests of significance of variance, Chi square,

and probability analyses were performed.

 

1
For the text of these questions see Appendix A,
Part 2.

 

 

14H
Presentation and Analysis of Data
Presentation of the Executives' Perceived Organizational
Effectiveness.

Since the data collected for this analysis were
obtained from three organizations that were rated effective
and another three organizations that were rated ineffective,
it seems appropriate to perform the presentation under the
category variables of effective-ineffective grouping. The
significance of this kind of grouping is that a later com-
parison between the perceived organizational effectiveness
and the group's value system will be facilitated.

Although interviews with the superiors of several
organizations under survey resulted in the determination and
labeling of a number of organizations as effective or in-
effective, the organization members are also a valuable
source for any appraisal of their respective organization.

One way to determine whether a consensus exists be-
tween superiors and subordinates is to have the subordinates
express their opinion. Table #2 shows the opinion of the
members of effective and ineffective organizations on the
question whether the organization had lived up to the ex-
pectations they had before they entered the organization.
From Table 42 an overwhelming majority of the effective group
(98%) viewed their organization as having satisfied their
expectations. On the other hand, a little more than half

of the ineffective grOUP (55%) thought their organization

 

 

145

TABLE 42 - Comparison between effective and ineffective
groups based on opinions expressed about how the organization
has met the employee expectations.(all figures in percentage)

 

In all In most In a few Not at Percent-

respects ways ways all age
Effective 81 17 2 O 100
Ineffective 25 30 4O 5 100

 

has satisfied them. A similar piece of evidence is the
answer given by the same two groups to a question whether
they would Join their present organization if they had to do
it again. Table 43 shows the opinion expressed to this
question.

TABLE 43 - Comparison between effective and ineffective

groups based on opinions about whether they would
join their organization again (all figures in percentage)

 

__

Certainly Probably Probably Certainly Percent-

 

Yes Yes No No age
Effective 75 11 8 6 100
Ineffective 35 25 27 13 100

In Table 43 the percentage of those people who would join
their ineffective organization increased from 55% in the

previous question to 65%. One possible reason consisted of

 

 

146
the effort to maintain a degree of balance between contri-
bution and inducement.2 Another related to the labor market
demand for their profession or geographical considerations.
At any rate. there were 86% of the effective group members
who would rejoin their organizations. whereas only 60% of
the ineffective group members would do it over. Still an-
other piece of evidence, that reinforced the notion that a
number of employees became calculative, was shown in the
responses given to the question on whether they would spare
some of their energy from work due to any reason. Table 44

shows the opinions expressed to this question.

TABLE 44 - Comparison between effective and ineffective
groups based on opinions about whether the employees
would spare energy from work (all figures in percentage)

 

 

Yes due to Yes because Yes due to Do not spare

 

imprOper don‘t like improper energy
salary boss job
Effective 25 6 9 6O
Ineffective 30 l6 19 35

 

From this table, one sees that 65% of the ineffective group

(cumulative columns 1, 2 and 3 from left) would spare its

 

2
For a discussion on contribution/inducement equili-
brium see: James March and Herbert Simon, OrganizationsL
(New York: John Wiley and Sons. Inc., 1958).

 

 

 

 

 

 

 

147
energy, whereas only 40% of the effective group would do
the same thing. Additionally. the employees of the in-
effective organizations. in comparison with the effective
ones. comprised a majority who believed there was something
wrong with their organizations' remuneration policies,
leadership methods. and division of labor.

Concerning the perception of the respondents on the
quality and quantity of training received on the job while
working for their organizations, some 57.3 percent of the
members of the effective organizations believe their group
received satisfactory training. The ineffective group had
only 28 percent of such people. Table 45 shows the response
to how satisfied the organization members felt with on the
job training as matched with their previous education. As
can be seen from these statistics, the more effective organi-
zations have emphasized organizational training as well as
the employee's previous education more than ineffective
organizations.

Perhaps the ineffective organizations have neglected
the importance of training and development of the executives
while they work for the organization. Considering the fact
that 72% of the ineffective organization's employees were
dissatisfied with the amount and quality of training it is
no wonder why the total achievement of the organization was

so low.

 

 

148

TABLE 45 - Effective and ineffective organizations‘
response on satisfaction with training as matched with their
previous education (figures in percentage)

 

_-
E

Education Satisfied Dissatis- No. Satisfied Dis- No.

 

 

Level fied in satis- in
strata fied Strata

Elementary 1.7 0.85 2.55 O 0.5 0-5
High school 30 17 47 12-5 31 43:5
College 20 22 42 14 33.5 47.5
Graduate
work 5.6 2.85 8.45 1.5 7 8.5
Total 57.3 42.7 100 28 72 100

 

The distribution of the employee's formal education
in both types of organizations was rather the same.3 The
difference between the two types of organizations stood out
by the emphasis they had placed on the organizational train-
ing. Everything else being equal. the lack of proper train-
ing may be the cause for failure in ineffective organizations.
Another measure to obtain the perceptions of the
employees in both effective and ineffective organizations

was to look at the answers they had given to the question on

_____

3
See Tables 9 and 10, Chapter 3.

 

 

149
the division of labor and autonomy in the job. There was
again a considerable difference between the two organiza-
tions relating to the organization structure and the leader-
ship method. The effective organizations had. in general,
satisfied a majority of their members in regard to the dele-
gation of authority and the work load. Table 46 shows the,
opinion eXpressed to the question whether the employees felt
satisfied with the level of autonomy in their job. Table 47
shows their opinion on their work load.
TABLE 46 - Comparison of the opinions of the
effective and ineffective organizations on whether

they were satisfied with the level of autonomy in job
(figures in percentage)

 

 

Very Fairly Dis- Very
satisfied satisfied satisfied dissatisfied

Effective 41 35 16 8
Ineffective 35 14 30 21

From Table 46 a great majority of the effective
organizations' employees (76%) felt satisfied with the level
of autonomy in their job, whereas only about half of the
ineffective organizations' employees (49%) felt the same
way. Table 47 indicates that both organizations had satis-
fied a majority of the employees in terms of the work load.

To the respondents of the ineffective organizations, the

 

 

 

 

150

delegation of authority was more of a problem than the work
load.

Having presented the raw data on the perception of
organizational effectiveness. it must be seen how did these
data correlate with value systems. This is discussed in the

next section.

Correlation between the perceived executive effectiveness and
value systems.

The main purpose of this section is to show to what
extent terminal. instrumental. and specifically competence
values are related to organizational effectiveness as per-
ceived by the organization members. Perception of organiza-
tional effectiveness was determined through responses given
by the employees to a large variety of questions relating to
productivity. conformity with policies. smoothness of opera-
tions. absenteeism. creativity, adaptiveness to changes,
employee satisfaction. leadership methods. division of labor.
development policies. and attitudes toward work.

Empirical findings reported in Chapters 4 and 5
suggested that the effective organizations and the ineffec-
tive organizations were characterized by value systems that
were distinguishably different from one another. The effec-
tive organizations consistently ranked the terminal values of
A SENSE OF ACCOMPLISHMENT and SOCIAL RECOGNITION higher and
PLEASURE lower than those organizations that were rated less

effective. The effective groups, moreover, typically ranked

 

 

 

 

 

 

r——f

151

the competence values of INDEPENDENT. INTELLECTUAL, CAPABLE,
and LOGICAL higher than the ineffective groups. When
magnitude of value difference was considered as well as
statistical significance of differences. several values such
as: AMBITIOUS. BROADMINDED. CAPABLE, IMAGINATIVE. INDEPEND-
ENT. INTELLECTUAL, RESPONSIBLE. LOGICAL, COURAGEOUS. SOCIAL
RECOGNITION. and A SENSE OF ACCOMPLISHMENT. emerged as the

 

most distinctive achievement values.
Some questions may now be raised about these achieve-
ment values. and by implication. about the social and cul-

tural institutions that fostered them. These institutions

 

include: education and social class. Questions can be
raised as to what kinds of standards the competence values
represented and what functions they served. Are they more
often employed as standards to guide organizational action
and a concern for the improvement of the organization. or
are they more often employed as standards to rationalize
the individual actions as evidenced by the decisions made by
the organization members?

As was pointed out already. the data supported the
idea that there is a positive rather than negative relation-
ship between effectiveness and the possession of a certain

set of values. The relationship was discovered through the

 

examination of several category variables of age, sex. in-

come. education. and religion. The influence of each vari-

able was readily apparent in the value findings previously

 

 

152

reported. Individuals and organizations who were nominally
rated effective shared a common set of competence values that
set them apart from those not nominally rated effective. This
section examines the relationship between the value systems

of the effective and ineffective groups (i.e., effective
groups are those groups of people who attached distinctively
higher importance to the competence values than moral values)
and the position of both groups on the organizational issues
explained in the previous section.

To conduct this portion of the study. two sets of
data were used. One was the Rokeach's value survey relative
to the effective and ineffective groups, which was analyzed
in Chapters 4 and 5. and the other was the questions pertain-
ing to the organizational issues as presented in the previous
section of this chapter. Since both the value survey and
the questionnaire were prepared on a multiple choice basis.
they gave the respondent an opportunity to select one answer
from among four to eighteen. it was assumed that the pattern
of response exhibited by the two groups could be taken as a‘
sample of how they usually made decisions concerning their
organizational tasks. ‘

For each of the questions put to the respondents
those varying in response were compared for similarities and
differences in values. The purpose here is to report the
data thus obtained on the relation between competence values
and the perception of organizational effectiveness. Two

questions were examined as follows:

 

 

153

(1) Value systems and position on whether the
organization had lived up to the employee
expectations:

(2) Value systems and the rating of the organiza-
tion by its members.

Value Systems and Position on Whether the Organization
Had Lived Up to The Emp_pyee Expectation

Table 48 shows the effective organizations' compo-
site rank orders of terminal values for four types of res-
ponders to the question ”Has the organization lived up to
the expectations you had before you entered it?“

Table 49 shows the same data for instrumental values.
Tables 50 and 51 present the above data for ineffective
organizations. Looking down the last column of all four
tables indicated that several values were shared equally by
the members of the effective and ineffective organizations
regardless of the response they gave to the question. These
values were HONEST, IMAGINATIVE. and FAMILY SECURITY. Also.
it can be noted that the two groups did not have much differ-
ence on most of the moral values.

Eventually. the difference between the two groups
appeared when the answers were matched with competence values.
A comparison between the first column of Table 49 and the
third column of Table 51 indicated that the majority of the
members of both organizations perceived of their organizations

differently. From these Tables the association between seven

 

154

TABLE 48 - The effective organizations’ composite
rank orders for terminal values and four types of responders
to the question:
”Has the organization lived up to the expectations you had
before you entered it?”

 

 

In all In most ‘In only a Not at
respects ways few ways all*

 

N = 117 95 19 3 0 10+

A comfortable

life 8 8 10 N.S.
An exciting life 11. 15 13 N.S.
A sense of

accomplishment 3 2 5 0.021
A world at peace 5 4 7 0.073
A world of beauty l6 13 17 0.127
Equality 7 7 6 N.S.
Family security 1 l l 0
Freedom 4 3 8 0.840
Happiness 6 5 9 0.721
Inner harmony 10 9 12 0.546
Mature love 12 10 14 0.491
National

security 13 ll 15 0.380
Pleasure 18 17 18 N.S.
Salvation 17 l8 l6 N.S.
Self respect 2 14 3 1.261
Social recognition 15 14 41 0.980
True friendship 11 12 ll N.S.
Wisdom 9 6 2 0.820

A—h‘

 

*Obtained by Median Test. All significance values shown in
succeeding tables are likewise obtained by the Median Test.

....

P== Probability of occurrence.

 

155

TABLE 49 - The effective organizations' composite rank
orders for instrumental values and four types of responders
to the question:

"Has the organization lived up to the expectations you had
before you entered it?“

 

 

 

In all In most I: only a Not at +

 

 

regpects ways few ways all P
N = 117 95 19 3 o P+
Ambitious 3 4 5 0-029
Broadminded 5 6 8 0.076
Capable 4 5 6 0.721
Cheerful 9 8 10 0.540
Clean ll 9 12 0.678
Courageous 6 7 9 0.242
Forgiving 12 10 14 0.129
Helpful 10 7 11 0.980
Honest 1 1 1 0
Imaginative ' 18 18 18 0
Independent 13 ll 15 0-900
Intellectual 14 15 16 0:771
Logical 8 9 10 0.642
Loving 17 17 13 0.091
Obedient 16 15 17 N.S.
Polite 15 14 1-026
Responsible 2 3 4 1-033
Self controlled 7 16 3 1'09?

 

+
P:

Probability of occurrence.

 

 

156

TABLE .50- The ineffective organizations' composite
rank orders for terminal values and four types of respondents
to the question:
"Has the organization lived up to the eXpectations you had
before you entered it?"

In all In most In only a Not at

 

 

respects ways ‘few ways . ‘511:_

N = 128 32 38 49 9 13+
A comfortable
life 9 4 10 11 0.121
An exciting life 12 17 15 15 0-039
A sense of
accomplishment 5 8 7 9 0.027
A world at peace 4 2 2 6 0.011
A world of beauty 18 l4 16 12 0.019
Equality 8 9 9 10 N.S.
Family security 1 l l l 0
Freedom 3 5 5 4 N.S.
Happiness 10 6 4 5 0-073
Inner harmony 13 10 8 8 0.036
Mature love 14 ll 12 11 0.079
National
security l5 l3 14 13 N.S.
Pleasure 16 l6 17 17 N.S.
Salvation 2 3 13 2 0.729
Self respect 7 7 3 3 0.431
Social recog-
nition 17 15 18 18 0.082
True friendship 11 12 11 7 0.033
wisdom 6 l8 6 16 0.840

‘1

 

+ P! =Pl’ol3aLbiU1’y 0F CCchaLnCe,

 

 

15?

TABLE 5.1- The ineffective organizations' composite
rank orders for instrumental values and four types of respondents
to the question:
"Has the organization lived up to the expectations you had before
you entered it?”

In all In most In only a Not at '

 

 

_ v__respects ways few ways all

N = 128 32 38 49 9 P *
Ambitious 5 6 5 8 0.322
Broadminded 6 7 8 10 0.280
Capable 7 8 9 11 0.906
Cheerful 9 5 2 4 0.560
Clean 3 4 4 7 0.392
Courageous 12 13 ll 15 0.480
Forgiving 15 2 7 9 1.211
Helpful 11 12 12 13 N.S.
Honest 1 l 1 1 0
Imaginative 18 18 18 18 0
Independent 14 14 14 14 0
Intellectual l6 17 17 17 N.S.
Logical 13 15 16 16 0.926
Loving 10 ll 13 13 0.780
Obedient 8 16 15 15 0.826
Polite 7 9 6 8 N.S.
Responsible 2 3 5 5 0
Self controlled 4 10 10 10 0.023

t P:- probabuwy 043 OCCUKcmc—c

 

 

 

 

 

158

’competence values and the response given by both organiza-
tions was indicative of a close relationship between the two
phenomena. The most satisfied people of the effective
organizations as well as those in the ineffective organiza-
tions attached more importance to AMBITIOUS than the less
satisfied people. A comparison between the majority of the
two groups indicated that the effective organizations valued
AMBITIOUS more than ineffective organizations. Therefbre. it
was interpreted that the association between satisfaction

and AMBITIOUS was positive and was a reason for the success

of one organization over another.

Value System and the Ratgng of the Organigation By
Its Membggg - Primarily it must be noted that certain values
simply did not discriminate among the various groups under
study. These were values that were clearly shared by all
groups. Such values included at least seven terminal values
A WORLD AT PEACE. HAPPINESS. INNER HARMONY, MATURE LOVE,
SELF RESPECT. TRUE FRIENDSHIP, and WISDOM. There were also
some other values that thus far in the analyses performed in
the present study had constantly shown no difference among
the groups. These values included FAMILY SECURITY. HONEST,
and IMAGINATIVE. In other words there was no correlation,
according to the data of this study. between these values

and the questions related to organizational effectiveness.

 

 

 

159
Table 52 shows the composite rank order of compe-

tence values for both effective and ineffective groups with
the rating they have made of their respective organizations.
The data apparently showed that about two out of every three
members (68.5%) of the effective organizations reported

that their organizations were either highly effective or
fairly effective. On the other hand a little less than two
out of every three members (57%) of the ineffective organi-
zations rated their organizations either highly ineffective
or solidly ineffective. These statistics indicated that
those members of both organizations that rated their organi-
zations highly effective placed more emphasis on A SENSE 0F
ACCOMPLISHMENT than the others who felt their organizations
were less effective. Another correlation existed between
the rating performed by those who ranked their organization
as fairly effective and the value they attached to A SENSE
0F ACCOMPLISHMENT. Both groups ranked this value higher than
those who believed their organizations were ineffective or
highly ineffective. Interestingly enough. each group of the
effective organization had significantly ranked each value
higher. For example A SENSE OF ACCOMPLISHMENT was ranked
three by those who rated their effective organization as
Highly Effective. and seven by those who rated their ineffec-
tive organization as Highly Effective. The same pattern of
choice was found for other competence values. For example,

the competence values of AMBITIOUS, BROADMINDED. and CAPABLE

 

 

 

 

 

160

TABLE 52 - Composite rank order of competence values

for effective and ineffective organizations matched with the

rating they have made of their organization

 

 

 

 

 

Effective Organizations Organizations
N = 245 H.E. F.E. I.E. H.I. H.E. F. .fl’£.E wH I.* 2*
50 30 22 15 25 30 5 28

A sense of
accomplishment 3 3 4 5 7 8 8 9 1.323
Social
recognition 11 12 ll 13 12 14 14 15 0.971
Ambitious 3 4 4 5 3 4 5 5 0.022
Broadminded 5 5 6 6 6 7 7 8 0.093
Capable 4 5 6 6 5 7 7 9 0.100
Imaginative 18 17 18 16 18 l7 l6 17 0.001
Independent 13 13 14 15 14 15 15 15 0.722
Intellectual 14 15 16 16 16 17 17 16 0.930
Logical 8 9 10 10 l5 16 16 18 2.311
Courageous 6 7 8 8 ll 12 13 13 2.090
Responsible 2 3 4 4 2 4 5 5 1-034
*H.E. = Highly Effective

F.E. = Fairly Effective

I.E. = Ineffective

H.I. = Highly Ineffective

+
P’= Probability of occurrence.

 

161

were more important to the effective groups than ineffective
ones. Also. for the same values the importance attached
decreased with the decrease in satisfaction.

In general. the data analyzed led to the interpreta-
tion of the following: 1) Competence values closely corre-
lated with the perception of organizational effectiveness:
and 2) the effective organizations contained a majority of
people who not only attached higher importance to these
values compared with their counterparts in the ineffective
organizations, but also felt more satisfied with their organi-

zation and thus rated it as effective.
Summary

A summary of the results of the two sections of the chapter
is as follows:

1) In accord with the studies cited in Chapter 2
concerning organizational effectiveness, the data
showed that a value system is not the only factor
that affects the total achievement of an organi-
zation. Such factors as organization structure,
method of leadership. and amount and quality of
training and development can, too, affect the
level of organizational effectiveness.

2) It was shown that the effective organizations had
significant value differences with the ineffective

organizations. The perception of the members of

 

162

both organizations of how satisfactory their
organization was indicated the same pattern of
difference.

3) It was also determined that several values had no
correlation with organizational effectiveness.

Competence values were the only discriminators

 

between the perception of the two groups.
4) It was realized that the effective organizations

contained a majority of members that felt satis-

 

fied with the organization and rated it effective.
This same group attached a high degree of import~
ance on values that are considered as the contri-
butors to effectiveness. Their counterparts. on
the other hand, did not care for accomplishment
and therefore were not satisfied with the organi-
zation.

Presentation and analysis of data concluded with this Chapter.

The remaining task is to integrate the findings and to des-

cribe the implications for further study. This is done in

Chapter 7.

 

 

 

 

 

CHAPTER 7
FIELD STUDY RESULTS AND CONCLUSIONS
Introduction

The purposes of this chapter are to integrate and
report the findings and conclusions of the study relative to
its three hypotheses. The chapter also, presents an evalu-
ation of the study results in comparison with similar
studies performed by other researchers and discusses the
implications of these findings for further study.

To achieve these purposes. the study hypotheses are
tested and the findings are evaluated and related to other
studies. Then the possible contributions and limitations of
the study are discussed. Finally. the study is summarized

and implications for further study are presented.
Test of Hypotheses

Test of First Hypothesis
Organizations and executives that are rated "effec-
tive" have a pattern of values that is distinctively differ-

ent from that qforganizations and executives that are rated

 

XLDeffective."

163

 

 

 

 

 

 

 

164

The results in testing the first hypothesis are con-
clusive. The evidence strongly leads to a support of the
hypothesis. The data indicated that organizations and
executives rated effective displayed a similar pattern of
value systems to that of the ineffective organizations and
individuals only as long as they were rank ordering socio-
economic. moral. and cultural values. The statistically
significant differences between the two groups emerged in
attaching importance to values that are central within the
success of an individual or organization. The pattern of
the rank-ordering of values. in general. when all 36 values
are considered simultaneously, was distinctively different
in the two groups of organizations and executives. What
was very important to the effective executives did not gain
much attention from the ineffective executives. The data
(Chapter 4) revealed that the two groups had different pre-
ferences. interests. and desires. The value orientation of
the ineffective individuals and organizations was toward a
sweet life, a world free of anxiety, a secure and comfort-
able life. friendship. freedom. and peace. Whereas. the
effective individuals and organizations displayed a pre-
dominantly accepted value system that consisted of interest
and desire for better accomplishment and higher achievements
through the acceptance of responsibility. exhibition of

courage. and capabilitY-

 

 

 

165

The data led to the conclusion and corroboration of
the hypothesis that the pattern of value systems in the

effective and ineffective groups was distinctively different.

Test of second Hypothesis
Organizations that have more homogeneous ageI sex,
religionI income, and educational groups are more likely to

have value similggity than organizatipns which do not have

such homogeneipy. ThereforeLpthe more homogeneous the
organizationJ the more value similarity it will have! and the

 

 

 

more effective it will be.

The results in testing the second hypothesis are in-
conclusive. The analysis of data showed that homogeneity of
an organization tends to bring about an environment in which
individuals may have value similarity. But. it must be a
similarity in a certain number of values. not all, within
their value systems that can lead to the effectiveness of
the organization.

To test this hypothesis three phenomena were examin-
ed:

1) homogeneity of the organization and its subgroups,

2) value similarity or differences of both organi-

zations and subgroups. and

3) the effects of each category variable of groupings

on organizational effectiveness.

 

 

lllllIlllllllIIIII-I::*———————————————*

166

Homogeneity of organization and its subgroups - the
comparison between effective and ineffective organizations
showed different levels of concordance. Grouping of the
organizations under effective and ineffective did not show
where the differences in value systems come from. Besides,
the members of each set of organizations did not show con-
sistency and concordance in their value systems. It was
realized that variables such as sex. income, age. religion,
and education affect the level of homogeneity in the organi-
zations. The groupings under sex, age. income. religion,
and education proved that a group of people working for the
same purpose have value differences in all of the above
variables. Therefore. making the organization under which
they have gathered heterogeneous.

Subgroups showed value similarities and differences.
For example. a comparison among different religious groups
of the organizations indicated that the religious groups
differed significantly from one another in terms of value
systems. But. also. it was found out that stratification of
the religion shows higher homogeneity within the group.

Adherence to the competence values by each group was

examined and it was noted that income, age. and sex groups

 

had more similarity in competence values. contributors to
organizational effectiveness. than groups stratified by
religion and education. It was concluded that an organization

can be quite homogeneous in terms of any of the above

 

 

 

 

 

167

criteria and yet be totally effective or ineffective.

Differences in age. sex, religion. income. and
education. of course. create value similarities and differ-
ences. But. an organization can not be so established that
all participants have the same religion, income. age, sex,
and education. Therefore. it can be concluded that it is
only the adherence to certain values. competence values,
that relates to organizational effectiveness, rather than
solid homogeneity of the organizational groups. The data
as gathered and analyzed in this study lend to the rejection

of the second hypothesis in its present form.

Test of Third Hyppthesis

Value systems correlate significantly with the per-
ceptions of organizational effectiveness. Therefore a set
of values can be identified that affect the level of organi-
zational effectiveness.

The results in testing the third hypothesis are con-
clusive. The evidence strongly points to a support of the
hypothesis. Analysis of Tables 23 through 41 indicate that
an organization can consist of a certain configuration of
executives with different age. sex. religion, income, and
education groups that will lead to a total achievement. A1-
so,Tables 42 through 52 confirm that a number of values have
a very close association with what the executives perceive
of the organizational effectiveness. These correlations

suggest that all competence values and only two of the moral

 

 

 

168

values - A SENSE OF ACCOMPLISHMENT and SOCIAL RECOGNITION -
can be identified in an organization as values that influ-
ence organizational behavior and the process of decision
making. Effective organizations under this study proved to
have a higher emphasis on competence values than did the

ineffective organizations.
Relationship of Findings to Other Studies

Other studies comparing value systems. and using the
Rokeach value survey, revealed both similarities and differ-
ences with the results of this project. Studies concerned
with opinions and attitudes of employees yielded results
similar to the conclusions reached in this study. Results
of selected studies are reviewed to determine where the
similarities and differences exist with the findings of this

research.

#2211513 of Value Systems

Several research projects have been conducted using
the Rokeach value survey as a means for determining value
differences or similarities of sample groups stratified in a
manner similar to that.used in this study. Results of these
studies, examined by category variables. follow.

Religion. There is general agreement in the findings
of research on value systems of different religious groups.
Many empirical studies show significant differences in be-

liefs. attitudes, and values between groups varying in

 

 

 

 

169
religion, between Jew, Catholic, and Protestant, and between
various Protestant denominations.l Findings of the present
study relating to the differences between the value systems
of various religious groups support the above mentioned
studies. However, there is no study in the literature to
indicate whether such differences in the value systems of
the religious groups affect the magnitude of organizational
performance.

The Protestant Ethic has long been known as the major
factor for the United States' economic prosperity. Rokeach
in a study2 found that Protestants ranked A SENSE OF ACCOM-
PLISHMENT lower than the remaining groups. He pointed out
that "this finding provides little support for the notion
that Protestants are more motivated by a Protestant Ethic
than non-Protestants." The present study found that when the
level of effectiveness was controlled in two groups of
protestant executives, those who were rated effective group
attached more importance to A SENSE OF ACCOMPLISHMENT than
those who were rated ineffective (Tables 23-25). This study's
finding agrees with Rokeach's finding that Protestant Ethic
has not provided motivation for achievement. The data proved
that a certain configuration of sex, age, and income leads

1 .
. G.W. Allport and J.M. Ross, ”Personal religious
orientation and prejudice." Journal of Persgnality and Social
Psychology, 1967. No.5, pp. 432-443. Also: Milton Rokeach.

Beliefs Attitudes and values, (San Francisco, Calif.:
jessey-Bass. 1968).

2
Milton Rokeach, ”value Systems in Religion," Review

 

 

 

Ill.::J

 

170

to more achievement than a certain religion and education
group.

,ggg. Several studies have stratified their samples
by age levels. They found that moral and competence value
dimensions had a converse relationship with age. In other
words. the older the person becomes. the more conservative
he will be and thus the more anxious he will be to maintain
the status quo. Socio-economic and moral values become
more important than competence values to the older executive.
What any organization. and especially a business organiza-
tion. needs in a competitive environment as ours is a
desire for change. an ambition for a better achievement,
and a drive for expansion. The findings of this research
indicated that the young executive was more achievement-
oriented and change-aspirant than the old. Bender's study3
found similar results in terms that religious and economic

values become more important as age increases. The find-

4

 

ings of another study by Rokeach indicates that age has a

positive correlation with moral values and a negative corre~
lation with competence values. Several reasons have been

proposed to explain the rise of moral values as an individual

of Religious Researc . V01. 11. No. l. 1969. p. 6.

I.E. Bender, ”Changes in Religious Interest, A Re-
Test After 15 Years." Journal of Abnormal and Social Paych-
legy. Vol. LVII (1958), p. 42.

4
Milton Rokeach. "Religious Values and Social Compassion,"
Review of Religious Research, Vol. 11, No. l. 1969.

 

 

 

171

ages: (1) maturity and stability in behavior due to the
responsibility of family life and occupation: (2) an evolu-
tion in the cultural values of the society: and (3) nature
of the time - troubled times cause people to look to
religion for solution. When these reasons are weighed
against the results in Tables 27 through 30, all three
reasons appear to be logical to some extent. From this data
the young executive was striving for change. had not estab—
lished his family life yet. and even did not probably in-
tend to stay long with his present organization. On the
other hand. the older executive had settled down. had estab-
lished his reputation, and had assumed more responsibility
for his family life and occupation. Besides. he had matured
and become more conservative. He was after prestige rather
than income. therefore he valued Obedient higher than did the
young executive. To be obedient is not considered procreativ—
ity and change. Therefore. the old executive identified
with moral values and placed less emphasis on competence
Values. This is probably not fruitful for the organization
in a competitive environment.

§gx. Studies made of college students,5 stratified

by sex. show results similar to those of this study. Namely,

Charles C. Hollen, Value Test. Unpublished mimeo-
graph, Dept. of Psychology, Michigan State University. (1969),

 

 

172
the relative rank order of the value systems in the two
studies were very nearly alike. Moral and socio-economic
values were rated more important by female than what was
rated by male. The female in both studies was more obedient.
equality-conscious. and much less ambitious than the male.
The male. on the other hand. strived for competence,
accomplishment, and change. The male group ranked CAPABLE,
AMBITIOUS. and BROADMINDED higher than the female.

Education. Research is inconclusive about the
effects of formal education on values. One study found that
an undergraduate college experience does not change values.6
Data in Tables 37 through 41 of the present study tend to
support this finding. The only difference was that the
present study found no relationship between the amount of
formal education and the level of effectiveness. 0n the
basis of the data provided. it assumed that under conditions
of equal education and the same religion the two groups
differed in the extent of effectiveness due to age, sex. and
income. If a test of value change was to be conducted it
would probably be known whether fermal education could
account for this change. Studies examining the effect of

informal education (short periods of training to gain skill

—¥

6

Paul L. Whitely, "The Constancy of Personal Values,"
Journal of Abnormal and Social Psychology. V01. XXXIII (July,

1938) 9 p. 1:08.

 

 

 

 

 

173

for the performance of a certain job) were not available
for comparison.

Unless there is some certainty that a significant
number of studies similar to this research has been con-
ducted. no generalization concerning the effects of formal
education on the level of organizational effectiveness can
be made.

Income. Results of this study supports the find-
ings of a study by Rokeach on the differences of value sys-
tems in various income groups.7 Rokeach found that A SENSE
OF ACCOMPLISHMENT accounts for the sharpest difference in
the value systems of several income groups. His sample
group showed that those in the lower level of income ranked
this value lower than other groups. And those in the high-
est level of income ($15,000 and over) placed much emphasis
on competence values. The present study indicated that the
higher the income level. the more emphasis is placed on
A SENSE OF ACCOMPLISHMENT. But. a comparison between an
effective group and an ineffective group revealed that
(Tables 33 and 35) the more effective group attached more
importance to this value than the ineffective group. Be-
sides. if the importance given to this value is looked at in

conjunction with other competence values as well as category

h

7
M. Rokeach, Value Systems in Religion, op. gij..

p. 11.

 

 

 

 

 

 

 

 

174

variables like age8. it will be noted that a certain income
and age group (the young executives with incomes between
$10,000 to $12,000) proved to be more effective than both
groups in the lower and higher income bracket. It can be
concluded that in relating age and income to accomplishment,
the middle age group is still aspiring to rise in the
managerial hierarchy via accomplishment in hopes of achiev-
ing higher incomes. In comparison the higher income and
higher age group is no longer aspiring to higher levels of
achievement because of age and a sufficient income therefore
it emphasizes accomplishment less: and the low age low in-
come group is concerned with security above financial gain
therefore deemphasizes A SENSE 0F ACCOMPLISHMENT and the
competence values. and assigns more importance to economic

values.

Relationship between effectiveness and value systems

The literature does not contain any study on the

 

effects of value systems on organizational effectiveness.
But. if organizational effectiveness can be conceived of as
a phenomenon that includes several dimensions such as
employee satisfaction. productivity. attitudes toward work,

creativity. change consciousness, as well as efficiency.

—___

8
See Tables 7. 8, 11. and 12. Chapter 3.

 

 

 

 

 

 

175

the present study supports the findings of the studies
cited in Chapter 2. and this study found that positive
interrelationships existed between satisfaction and organi-
zational effectiveness: productivity and effectiveness: and
value systems and organizational effectiveness. Also it
was found that competence values were correlated with
effectiveness as were the factors of leadership methods,

organization structure. and employee satisfaction.
Some Contributions of the Study

values have long been the domain of the philosophers
and. lately. the social scientists. If values provide much
of the bedrock for decision making as claimed. then an
examination of values as they related to such an important
phenomenon as organizational effectiveness may have been
fruitful.

In general. this study was a contribution to the
general knowledge of value systems. as a factor different
from attitudes. This can be a step forward to the realiza-
tion of value measurement in contrast to attitude appraisals.
Evaluation of the value system can ultimately show the
effects of values on human behavior which influence organi-
zational behavior. This study. also. may contribute to
social psychology theory. to the field of sociology. and the

theory and practice of management. The findings of this

 

 

176

study that established a difference in value systems among
various groups studied under the variables of religion. age,
sex. income. and education. could contribute to behavioral
theories in progress in both social psychology and sociology.
The examination of factors that affect the level of
organizational effectiveness and the surprising findings that
competence values correlate with organizational effective-
ness is a possible contribution to the synthesis of all
variables that may affect the level of achievement. A
future generalization of these factors through a systems
approach may lead to an organizational theory of effective-
ness. And. finally. to the management practitioners and
personnel administrators. the finding of this study may be
a step ferward to a better understanding between supervisor
and supervised. and a recognition of human preferences that

can serve as a motivator.
Major Limitations of the Study

1) It was impossible to examine the variables of this
study from the standpoint of cause/effect relationship. For,
there were many unmeasured social. psychological. and en-
vironmental factors intervening the direct interaction be-
tween value systems and organizational effectiveness.
Therefore. it necessitated the examination of a degree of

correlation between the two variables.

 

 

 

177

2) The results of the study. like most behavioral
researches. could not be viewed as representative of the
entire society. culture. or economy. Hewever. these results
furnish some insights into the problem of values and effec-
tiveness as independent variables as well as dependent
variables like the subject matter of this study.

3) Perception of effectiveness and the value systems.
in nature. are not static. In other words our value sys-
tems which are composed of dominant and variant sources do
not remain the same in different points of time. Organi-
zational effectiveness also has been measured differently
in different periods of time. The present study is a
static one. in regard to the factors which are dynamic.

The study is a picture of several Organizations at a cer-
tain time. The test should be conducted several times and
at different intervals.

4) The variation of the level of awareness, on the
part of members of the sample. as to the subject matter
under investigation was a barrier. Some respondents had a
high degree of awareness of both value systems and organi-
zational effectiveness. Some others, however, were familiar
with effectiveness. productivity, profitability. and effi-
ciency but knew very little or nothing about values.

I This limitation does not preclude the fact that

persons can and do make choices (have opinions and attitudes)

 

 

 

178

when confronted with alternative situations.
Summary and Implications for Further Study

Values have been analyzed as they relate to organi-
zational effectiveness. Decisions made in an organization
are actually a selection from among several alternatives
that are available. To make the decision. the decision maker
relies on the information before him. but is at the same
time influenced by his own value system. By measuring,
comparing. and analyzing the value system of two groups of
executives from three different organizations. one of the
major findings of the study was that all values did not
equally contribute to the individual and organizational per-
fbrmance. A number of values were isolated from instrumental
and terminal values and were identified as competence values -
those which had a greater relationship with effectiveness.
This study indicated that the value system of effective
individuals and organizations is significantly different
from that of the ineffective individuals and organizations.
Since the subjects did not have homogeneity in their so-called
effective and ineffective groups. evidenced by concordance
coefficients. the bases of difference in the value systems
of the two groups were examined. Since value systems
evolve through cultural backgrounds and persOnal associations

and socialization. the subjects were stratified under

 

 

 

179

variables of age. sex. religion. income. and education to
determine whether the value differences were a function of
these variables. The study found that age. sex. and income
correlated more closely to competence values than religion
and education.

It was. however. concluded that an organization may
consist of a homogeneous sex. age. or income group and yet
be ineffective. Therefore. there is a certain configuration
of age. sex. and income group that places more emphasis on
competence values than other values.

An increasing number of writers are discovering
values as important determinants of opinions, attitudes. and
behavior in individual and group activities. The findings
of this study support the idea in general. but emphasize
that most of the values held by the organization members
provide impetus for the evolution of some attitudes directed
toward ”other-worldliness" that do not necessarily affect the
level of organizational performance. Such behavior as
exemplified by how to pray to God or how to perform a
micro-specialized work in the organization is not, of
course. influenced by the competence values. Stated another
way. there are times and situations when values are neither
the only. nor the most important. determinant of behavior.

One study. at a single point in time. is an in-

sufficient base from which to generate general conclusions

 

180
such as those presented by this study. Similar studies
should be conducted to confirm or reject the rather sur-
prising finding that value systems correlate with the

decision making and the total performance of an organization.

Recommendations

Further investigation is needed in the following
areas:
1) Measurement of effectiveness - A number of instruments
have been employed by many researchers to measure the degree
of an individual or organizational effectiveness. Each
measure has been developed for a specific case and can very
hardly be used in other circumstances. Research should
continue toward the development of a unified measure of
effectiveness. Of course. this measure can not be used
universally due to the nature of organizations and their
varying objectives. A near-optimum measure that can be
slightly modified to suit different situations is apprec-
iably needed in the field of organization and management.
2) Stratification of samples - Research is highly needed to
find more effective ways of stratifying a population for the
purpose of value analysis. In many cases, the single
dimension relationship may not be an effective way of strati-
fying a sample to determine behavioral differences. A
combination of demographic variables, as well as social.

Psychological. and cultural dimensions should be experimented

 

 

 

 

181

with to discover if'there are more effective methods of
relating values to behavior.

3) Effects of religion and formal education - The findings
in this study concerning the effects of religion and formal
education on a person's behavior and thus his level of
achievement were inconclusive. The probable reason was that
majority of the executives in both the effective and ineffec-
tive organizations under survey were Protestant. with edu-
cation ranging between high school diploma and college edu-
cation. In addition the subjects were unanimously American
in culture and life-time residents of the Midwest. In
order to measure the effects of religion and education on
organizational effectiveness, further study is recommended
on a comparative basis first between the religions prevalent
in the United States. and second among national and cultural
groups.

4) Effects of training on value change - Values of a person
can be broken down into dominant and variant values. The
dominant values of a person evolve through his culture,
whereas his variant values emerge through socialization.
Studies have shown the latter changes over time very easily,
while the former is relatively constant. Business and in-
dustrial organizations have, during the past few years.

placed emphasis on various kinds of informal training with

a contention that this type of training increases the extent

 

182

of individual and organizational performance. The present
study showed that certain values held by the executives
tended to influence their behavior and attitudes toward work
and decision-making. Further study is recommended for the
measurement of training on value changes. Argyris emphap
sizes that T-group training is effective in changing values
and bringing about organizational effectiveness.10 The ex-

tent of such effects should be measured empirically.

 

10
Chris Argyris. "T-Group for organizational effective-
ness” Harvard Business Review (March-April 1964). See also:
Charles Kepner and Benjamin Tregoe. The rational Managerl (New
York: McGraw-Hill. 1964). Robert Blake and Jane Mouton,
Managerial Grid. (Houston, Texas: Gulf Pub. Co., 1964).

 

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Marcson, Simon. The Scientist in American Industry,
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Morris, Charles W. Variations of human value (Chicago:
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18?,
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189

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190
Government Publication
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HousingI 1960, (Washington, D.C.: U.S. Government
Printing Office, 1962).

 

 

APPENDICES

 

APPENDIX A

QUESTIONNAIRES
(including the letter of introduction, parts 1, 2, and 3 of
the questionnaire, and the criteria used by the top execu-

tive officer in ranking his subordinate departments.)

191

 

 

192

INTRODUCTION

This is a general study for a doctoral dissertation.
It concerns the interrelationships between value systems and
organizational effectiveness.

You are first asked to complete a general informa-
tion sheet without identifying yourself or your organization.
Then you will answer the questions of the second and the
third parts of the questionnaire.

The information requested on the accompanying
questionnaire is largely self-explanatory. The question-
naire is divided into three parts. Each part has complete
instructions.

There is no good or bad answer. You are only ex-
pressing your opinion about these subjects.

This data will remain completely confidential and
shall be used in this doctoral dissertation only.

I realize that asking you to complete a question-
naire may be an imposition. Your cooperation, however, is
most important to this study. I would appreciate your tak-
ing time to respond to the items involved.

Respectfully,

M. Kashefi
Director of Research

 

 

 

193

PART ONE

GENERAL INFORMATION

(Please print or place a check mark as needed)

1.
2.

3.
“'0

Religion
Birth date

City and state of birth

 

Foreign born () Yes () No

If yes, age entered U.S. ____ Country of origin __

Sex ( ) Male ( ) Female

Income ( ) Under $8000 ( ) $8001- 10000 ( ) $10001-$12000
( ) $12001-14000 ( ) $14001-$16000 ( ) $16001-$18000

( ) $18001-$20000 ( ) $20001 and over.

Education (please circle the highest grade attended)
Elementary School High School College Graduate work

1 2 3 a 5 6 7 8 9 10 11 12 l 2 3 4 N.A., Doctorate

 

 

.-

 

194

Part Two
Instructions

In this part I am asking your cooperation for a careful set
of answers. There are ten questions, each with four answers.
Please place a check mark in the space provided to the left
of the answer that corresponds to your opinion. Be sure to

answer all ten questions.

Please place only one check for each question.
1. Has the organization lived up to the expectations you had
before you entered it?
( ) In all respects
( ) In most ways
( ) In only a few ways
( ) Not at all
2. Are you satisfied with the amount and quality of the form-
al training you received on the job while working for your
organization?
( ) Extremely satisfied
( ) Fairly satisfied
( ) Dissatisfied
( ) Extremely dissatisfied
3. Do you think the authority you have had to perform your

tasks has improved your skills and abilities?

 

 

 

5.

7.

 

195

( ) Very much so
( ) To some extent
( ) Very little
( ) Not at all
Are you satisfied with the level of autonomy in your job:
( ) very satisfied
( ) Fairly satisfied
( ) Dissatisfied
( ) Very dissatisfied
Are you satisfied with the amount of your workload:
( ) very satisfied
( ) Fairly satisfied
( ) Dissatisfied
( ) very dissatisfied
If you had ”to do it over,“ would you enter this
organization:
( ) Certainly yes
( ) Probably yes
( ) Probably no
( ) Definitely no
How would you rank your immediate superior's effective-
ness:
( ) Highly effective
( ) Fairly effective
( ) Ineffective
( ) Highly ineffective

 

 

 

 

 

196

8. HOW would you rank your department. section, or branch
compared to other sections:
( ) Highly effective'
( ) Fairly effective
( ) Ineffective
( ) Highly ineffective
9. What would you do if you are doing a real important task
and your superior interferes with the way you are doing
your job:
( ) Ignore him and do my task
( ) Challenge him and leave my task
( ) Go along with him
( ) Resist him and do my task
10. Do you spare some of’your energy because:
( ) You are not paid enough
( ) You do not get along with your superior
( ) You do not think you are on the right job

( ) None of the above

 

 

 

FORM D

197

PART THREE

VALUE SURVEY

FEMALE

 

BIRTH DATE SEX: MAIE

 

CITY and STATE OF BIRTH

 

NAME (FILL IN ONLY IF REQUESTED)

© ”67 ousmameo av:
3" ”MON ROKEACH HALGREN 15515
873 PERSIMMON AVE.
SUNNYVALE. cwromm 94037

 

INSTRUCTIONS

On the next page are 18 values listed in alphabetical order. Your
task is to arrange them in order of their importance to YOU, as g‘uid-
ing principles in YOUR lite. Each value is printed on a gummed label
which can be easily peeled oil and pasted in the boxes on the lett-
hand side of the page.

Study the list carefully and pick out the one value which is the
most important for you. Peel it off and paste it in Box I on the Ielt.

Then pick out the value which is second most important for you.
Peel it oti and paste it in Box 2. Then do the same for each oi the
remaining values. The value which is least important goes in Box 18.

Work slowly and think carefully. It you change your mind, feel
free to change your answers. The labels peel oil easily and can be
moved from place to place. The end result should truly show how you
really feel.

 

 

50

II
12
13
I4
15

16
I7

 

A COMFORTABLE LIFE

(a prosperous life). i:

 

_rrr mm“,
\

AN EXCITING LIFE 1-
(a stimulating, active life) :-

J.
...l .... .. _‘n—I—l' 1W1". ‘

 

d ...—u.._JI

 

 

(lasting contribution) J

A WORLD AT PEACE
(free of war and conflict) _t

 

 

L ASENSEOFACCOMPLISHMENT i'
r

A WORLD OF BEAUTY (
(beauty of nature and the arts) j.

 

 

 

EQUALITY (brotherhood, ‘.

L equal opportunIty for all) r». ”J

 

.34.”.

FAMILY SECURITY

 

 

 

 

(taking care of loved ones) ;
FREEDOM (I
(independence, free choice) 4'
HAPPINESS ;
(contentedness) J.

.r.— :4'. _L'L‘Z l-“PL__u‘-- ‘;

INNER HARMONY

(freedom from inner conflict)

WAC

LJ—

MATURE LOVE -‘-
(sexual and spiritual intimacy)

 

(protection from attack)

L NATIONAL SECURITY

 

' ' ...—IE“ L’_- ...;ngr- J-_-._4...

“f" --._ ._

' PLEASURE

(an enioyable, leisurely life)
SALVATION
(saved, eternal life) .

 

___ .'..1 _. J.L..sn. _&-—_~L:-.L:

SELF RESPECT
(self-esteem)

 

 

‘4. '1- :" .'. 1a-.. 1

..-. .-' -.__'-J..4 .

[ SOCIAL RECOGNITION

(respect, admiration)

_'_.s_11.a. ...M'.

TRUE FRIENDSHIP
(close companionship)

 

 

1%

km." .4. JI - 5 ... 3'5; ......Jw'.I-,

VVISDOM (a mature .'-

 

4

 

understanding of life)

WHEN YOU HAVE FINISHED, GO TO THE NEXT PAGE.

 

QVO‘U'I-th—I

50

II
12
13
14
15

l6
I7

199

Below is another list of l8 values. Arrange them in order of importance. the some as before.

I

...TA' ___! a ‘L—L-u‘da- ..._—-__‘I... . .... _.-....__._ _—

AMBITIOUS
(hard‘working, aspiring)

Ii

 

 

.'.—L _.__. __-.

BROADMINDED
(open- -minded)

_4.." 1%.... -.

 

CAPABLE
(competent effective)

 

. . ..4_' 4.Jn__ ...-.-

 

-1.- :n- ..‘L.

CHEERFUL
(lighthearted, ioyful)

 

 

CLEAN
(n,eat tidy)

‘1

COURAGEOUS
(standing up for your beliefs)

 

FORGIVING
(willing to pardon others)

 

 

for the welfare of others)

HONEST
(sincere, truthful)

 

 

 

 

IMAGINATIVE
(daring, creative)

INDEPENDENT
(self- reliant, self-sufficient)

1

INTELLECTUAL
(intelligent, reflective)

LOGICAL

(consistent, rational)

 

 

 

 

I
I
I
I
I
I
[ HELPFUL (working
I
I
I
I
I
I

I

LOVING
(affectionate, tender)

.D- -‘. . ..'__'.'_‘1'.V~'J. . . ...

OBEDIENT
(dutiful, respectful)

I_. _—

POLITE
' (courteous, well-mannered)

-.:..-.__ . __. _ 5 "m ”*4"-.. ...-

.-. '_- m.-....- .

 

I RESPONSIBLE
L- (dependable, reliable)f
I SELF-CONTROLLED

 

 

(restrained, self-disciplined)

.'. "4.5.14: 3": “HT.“ I

200

Top executive's ranking of his subordinate departments

Top executive only

 

In light of the following criteria how would you

rank your subordinate departments:

 

 

 

1) Productivity
2) Contribution to organizational goal achievement
3) Conformity with policies
4) Smoothness of Operations
5) Absenteeism
6) Creativity
7) Adaptiveness to changes
Criteri Pro- Contri- Con- Smooth- Absen- Cre- Total Mean Rank
Depart- duct- bution form- ness of teeism ativ-P01nts
Jments ivity to or- ity opera- ity
ganiza- _with tions
tional poli-
goal cies
achieve-
ment
A _._
B

 

O

 

 

etc.

 

 

 

 

 

 

 

 

 

201

APPENDIX B

Statistical tools of analysis and

Computer Routine Oneway

 

 

202

"ROUTINE ONEWAY”

doutine Oneway: A computer program for value test*

Routine oneway is a part of a tape overlay system,
Valuetest, containing a series of routines written expressly

for use with data from RoKeach's value survey. This routine

is fully generalized. and may be used with any data from

ranking scales. in which respondents are asked to rank K

objects from 1 to K.

Routine oneway has been set up so as to produce final

summary tables of the results, in a form most readily under-

standable to the user. This consumessflightly more computer

time. but it frees the user from the time-consuming and often

confusing process of constructing tables by copying numbers

from computer output. Most of the statistical tests used in

this routine are based on formulas taken from S. Siegel,

BQD-parametrio Statistics. chraw-Hill, 1956.

 

Routine oneway provides comparisons of the median

value rankings of several groups. as defined by an independ-

ent variable. It is analogous to a one~way analysis of

variance.

In terms of RoKeach's value survey, this routine com-
pares the value rankings of groups (male versus female,
Open-minded vs. closed-minded. etc.) defined by category

XéElfiQlEE (sex. dogmatism, etc.) As shown in the example

Ontput on pages 203

m

, —204-and 205 the results of computation

*Mr.Charles.C. Hollen, The Author of Valuetest granted permission
f0r.the making and inclusion of this excerpt. For further infor-
mation write to Mr. Hollen, Department of PsychOIOEYv M-S-U-

 

 

 

203

ptions - Routine Oneway

 

SAMPLE OUTPUT FROM ROUTINE ONEwAY

Routine descri
TABLE 53

 

...................................C.....C...0................................................................‘C.......C

.smu» uu4_.».oz» .. waaaom _1u mu»<mwu zo n~x_ so 9111. onn~.o 4u>u4 wuz<u_u.>o_m
raouwxu co mute»: uzn

acouv.n - urcaom _tu
we vN 74.nmt :onn
on vn 7¢_amz u>9m< mo ~<
m4¢tuu w4¢t
anon:
oo.o . macaw 7‘_amz

m.4azouu< ac wmzmm . ~4maaz<> _rmovmnma
xwm a.n4‘a<> >noaw».u

7¢_owt 37<13 104nm Q74 m>3¢< nw—nrwaowcu
.mu» 7<—owt

cooocoooooouococoooocoooooooooocooo-ococo.oocoo.coo-ycocoooooooooocoooooooooooo.oooococooocooooaooooooc.ococoooooooococ.
..nu» uu4_a».o:» .. wxaaom _1u cu»<uvu ta n«x_ as mazes oooo.« 4u>u4 muzau_h_7a_m
vacuuzu no uwmomc m,n

mvsvo.o - urcDOn _ru
. no n~ 74.9w: zoamn
a. «n 7<_omz u>3m< we pa
mJ‘qu dour
azons
oo.ou u macum 7._ow:

wu_4 uz~»_uxm 7a ¢4m¢_x<> hwwnrwowo
xwm minalxa> >aouwpau

ova magma nw_urw3nmwu

. < u xOme
7<_oux a7 1 _mu» z<.owr

000000000
......OCOCOOOO......
................................C......O.......O.............................‘............‘

 

..m» an) . .. a a as case.“ Ja>ua muz.u.h_7osm .
p .4» 0:» ma. am _xu zwhauvo rn n~x_ “a u 2 rooumxu no mwmcwc m7n
«amoo.o n 3:430m _Iu an nN »<_om: xoqwn
vv an 7a.:m: u>am< we a.
“a m4<t
- czuu moo":
oo.q« a mxcum >«_amr
m02womo
uoutou a u41«_z<> .: >
au_4 mom.» xmm mlnc.zcs swcumaac
( nW~U7W3OWQk

 

 

2i)“.

Routine descriptions - Routine Oneway

TABLE 5“
SAMPLE OUTPUT FROM ROUTINE ONEHAY

 

nu...»
.cvn.n
>99 caao

cock.»
as»...
>99 9439

soon.»
v9no.n
>99 «.90

oo»..~
o.»o.~
>99 cane

an...»
nann.»
>99 «49¢

ease.»
cows.»
>99 «<99

ma««.nm
onso.~
:99 9.39

cusp.»
cous.n
>99 9.99

soon.»
uuvn.v
sun cane

unun.v
undo.»
999 «.99

u....n
coma.»
>ua «<39

 

“new.“
om~u..
24.3»:

gnaw.»
coax.»
z<_aw:

ca.o..
9999.5
z<_:mx

«goa.o
oo°~..
a._awx

999..»
cows.»
z<.aw:

«oo:.n
ocoa..
z¢_aux

cano.«u
oaoa..«

zc~30t

so«:.o
999m.o
z<.aax

nmua.o
coca.»
z<_am:

noon.a

n'ux.:«

z<~aux

n~99.vu
«kmn.n«

z<~amt

«o
gape»
«a
on
Jepo»
«-
ache»
«-
9n
4<»9»
“a
on
Jase»

a.
on
Jase»

«-
on
Jeho»

«.
on
Japan

«0
on
44»9»
no

on
Japo»

do
on
4(999

«a
sa

(‘0

on

u«
on

“MN
'0'

“an

'0.“

ON
'0

on

«a

'00”

3

“”3!

HQ.

dNN

 

3’)"
ovm

v
£000
09%
'00

C
O'h
5N8
07am

F)
«o
DON

h

C
BNU‘
0B0
0")
”'6‘

r0.
ON.
“I‘d
d
'lh'
P)”

V
KN?)
ll"
vunnn

QNN
ROG
VIN
"N“

00'

3'06!
omm
th
0N”
nus
can
I'D—an

h
ONO
BNO
can
.‘.?)
'QU‘

Q's“

hr‘O
00"
I‘M.

00‘?

BNO

V
C‘VN

0°")

00.4

INN?
U‘OO
.094

an

0
~

 

>»_:aumm 4<2c~pcz m. w49._a<> pzuaruamo

m ugaxmu uoaomw
v mac: naaocn
« mm~uzmaouxu

m>04 menu‘s m. mam.~a«, pzuaruawo

v

0

~
>ZOt¢

s
O
N

~00

.
.
~

puxfiuwm

o
9
w

9
9
N

o
a
w

m
N

m 41toun< no mmzwm

m
a
w
a

9
v
~
m

mzo_Ȣ_>uo w4~huaaa nz< .m2._omx

n u4¢xwu unaoxn
~ mac: enact" -
a mm_uzmaonz.

4: umzz_ m. wcoa.c<, uzmazuemo

o maqtmu uaao¢n

on w4.: annexe -
u mm.uzmaouz.

mmmzumuex m. w49.9a<» pzuazuemo

nu w44zwu unaoan

v“ m4.x unseen -

« mm_uzm:ouax
xoowwau m. wJo._¢4> pzuayuamo

m wgczwu on29¢n

m mac: unseen -

« mm_92m:oux.
»J_:<u m. m49._a<> bzuayuama

waquu .naoxn
w4.z ..aoxn -
mm_uzwaoua.

w4«zuu annex"
wqcz assoc" -
« mm~uzmaeuz.

o
n
a

>»_J¢:ow m. wJa._¢¢, pzuaruemo
a
9

sbncmm kc coco: ¢ m. me._a<, uzaavunmo

o wgaxuu onaoaa
n woe: unseen -
a ww90293903.

wu<wa ». oJco: . m. mam.~u<> hzuazuama

~ wactuu c.3939

N wad: unaown m

u mm~uzmaoux.

a m. m49._¢<> azuazuam9_

o muazuu .naoaa
n w4.: unaomo -
« mm_uzmao»:.

2.».uxm 2‘ m. wlm._¢<> pzuaynnmo

N 3...: wage
a mi: .896 q
« mm_uzmaoux.

<>mocrou « m~ w49._a<’ pzuazaamc

xmm m9 mau<9z¢> swoomsau

.mzo.»:9.x»n_= >u7maowmu

 

n5
7!
un
A“

 

 

 

 

Routine descriptions - Routine Oneway
SAMPLE OUTPUT FROM’ROUTEEQ

 

$§§L§r§3tws

GRUJP
N:

A COMFORTAUL: LIFE

AN exc171~u Lite

A SENSE UV ACCU‘PLIS

A uORLD A7 PeAcE

A uoaLo or BEAUTY

EQUALITY

FAMILY SECURITY

FREEDO!

HAPPINESS

INNER 4anwu~v

flAYURE Luv;
NATIONAL Secunxtv
PLEASURE
SALVAvaN

SELF RESPECT
SOCIAL accuunxtxow
YRUE Fqleuusnlv
AISDOM

CONCORDANC; UOEVFS.

' ONEWAZ

205

GROUP MEDIANS - CATEGORY VARIABLE IS

MALE
69

MFD RNK

13.36
14

10.21
12

3.00

6.50

14.90
17

6.94

8.75

10
7.13
14.75
16

13.20
13

16.50
18

5.63

14.30
15

0.22

FEMALE

91
MED

14.06

14.66

16.20

 

RNK

14

10

12

13

11

15

16

18

17

MEDIAN TEST

X2:

0.005
0.047
1.016
0.005
11.020
2.446
0.252
0.092
0.109
0.005
3.641
0.019
3.227
0.002
0.352
2.106
0.011

1.096

p:

1.000
19900
Uni-5‘

10000

00916
0'753
0.722
0.?QO
9:939
1.000
000/2
o.ibb
0.254

00120

1.000

0.29:

 

 

 

206
appear in 3 sections. First for each category variable and
for each dependent variable there is computed and printed an
overall frequency table for the Median Test. Second, a
detailed breakdown of the frequencies is printed showing how
many people in each group ranked each object (value) first,
second, third, etc. Finally a summary table is produced show-
ing the group medians and rank numbers (rankings of the
medians from "highest" to "lowest" within each group). for
all groups across all dependent variables. On the right-
hand side are shown the size of the Median Test statistic
(chi-square) and its probability of occurrence under a two-
tailed test.

At the bottom of the page are shown the coefficients
of concordance for each group. This statistic is a measure
of the degree of agreement among all the members of the
group on the entire set of dependent variables. In terms of
HoKeach's value survey. it provides an index of homogeneity
of the groups values.

Routine size limits

ROUTINE ONEWAY will handle a data array of up to
84.000 items. Please note. however, the following routine
size limits: Within one job, the number of category variables
may not exceed 6, the number of dependent variables may not
exceed 36, and the number of subjects (respondents) may not
exceed 2000. Users whose data exceed one or more of these
limits must divide their analyses into several separate jobs.
For example. anger with 10 category variables may run the

first six, and then the remaining four. as two separate jobs.

 

 

 

 

 

207

The routine may be used on other data than RoKeach's
value scales. However. because it was formulated primarily
for use with the value ranking scales, which contain either
12 or 18 items per scale. it assumes that the number of
dependent variables will be an even multiple of 6. It also
assumes that if there are 18 or less dependent variables,
that these constitute one ranking scale, while if there are
more than 18 dependent variables, these constitute two scales,
and will be divided accordingly.

User options

1. Significance test option: The user is offered a
choice of either of two significance tests. the Kruskal-Wallis
H test or the Median Test for k Independent Groups. (for
detailed descriptions of these tests, see S. Siegel. Egg-
Parametric Statistics). Experience has shown that the
Kruskal-Wallis test is somewhat more sensitive to differences
in "shape" of distributions. while the Median Test is more
predominantly a test of differences in central tendency.

The two tests normally have been found to give nearly
comparable results (i.e. if a given difference is significant
according to one test. it will also be significant according
to the other. and vice cersa). Unless the user has a hypo-
thesis concerning differential shapes of distributions. the
Median Test is recommended.

2. Echo check option: The user may specify that his

data be printed out after being read in and recoded. This

 

 

208

uses slightly more computer time. especially in the case of
very large samples, but it provides a useful safeguard to
insure that the data are being read in and recoded correctly.

3. Automapic recoding_9ption: Supposing, for
example. that the user has punched each respondent‘s age on
his data cards in its "raw" form. He now wishes to combine
those who are in their teens, those in their twenties, in
their thirties. etc. into groups for comparison. ROUTINE
ONEWAY offers a simple means of accomplishing this "recoding"
by the insertion of certain control cards specifying which
variables (if any) are to be recoded. in what way.

Although the program will handle up to 10 groups per
category variable, experience has shown that it is vastly
easier to interpret the results if the number of groups is
reduced to three or four. Thus. on variables such as age
and social class, on which a large or small number of groups
may be used, it may be well to utilize the automatic recoding
option to combine and reduce the number of groups. In addi-
tion, care should be taken to eliminate groups of N size 5
or less (20 or less in large samples) by combining them with
other groups or recoding them as o‘s (see Missing Data).

u. Entire sample option: The user may specify
whether he wishes to obtain frequency distributions and
medians for his entire sample. Normally this option would

be utilized on only the first run-through on a particular

sample of data.

 

 

 

 

 

209

5. Identification variables option: Data decks on
which this routine is used will frequently contain more than
one card per subject. It is absolutely essential that these
decks be "match-merged" correctly. in order that each sub-
ject‘s independent variables are matched with his own
dependent variables. not someone else's.

On numerous occasions in the past we have found that
match-merged data decks contained cards out of order or
cards missing. These cause mis-matches which lead to worth-
less results. I cannot emphasize too strongly the frequency
and ease with which this kind of "data foul-up“ can occur.

The routines in this program contain a safeguard
against mismatches due to missing or out-of-order cards.
This is done by reading in a "subject identification number"
from each card and compting these to be sure that they are
the same for each of that subject‘s cards.

For example. suppose we have 100 subjects, with u
cards per subject. These are match-merged so that each sub-
ject's four cards are together. in order from 1 to 4. Each
card has a subject I.D. number punched somewhere on the card.
(These numbers need not be consecutive: they need not run
from 1 to 100: but they should be in the same columns on all
cards).

Thus we wish to read in four "I.D." variables. The
total number of variables (as specified on the main para-

meters card) should include these four variables. An

 

 

 

 

 

 

 

 

210

identification variables numbers card is then inserted along
with the other control cards which specifies which ones. of
all the variables read in. are the identification numbers.
The format card will. of course, also reflect this inclusion.

If the program finds a subject whose identification
numbers do not match. it will print out the "wrong numbers"
it found. and stop. This feature may be used on any number
of cards per subject, up to no.

If the user has only one card per subject, or wishes
to "short-circuit" this safeguard. he may insert a blank
cardin place of the I.D. variables numbers card or put in the
same variable number twice (e.g. "0141”).

6. gpntrolgyariableSOQtion: This Option offers the
opportunity to analyze "subgroups" from within a sample with-
out physically separating their data cards from the rest.

Suppose. for example. the user has a large volume of
data. either on cards or on tape. He wishes to run a com-
parison between. say. males and females but for Catholics
ggly. Thushe wishes to use Sex as his category variable and
Religion as a "gglgctor variable" or control variable. ex-
cluding from the analysis all other religious groups except
Catholics. This is possible through the insertion of a few
additional control cards. thus obviating the bothersome
necessity of presorting data decks by hand or constructing
special indices.

The user may select a group for analysis on the basis

of more than one control variable at once, and more than one

 

 

 

 

.‘..I

211

value per variable. Thus if he wishes to select justthe
White, Middle-and-Upper Class Catholics, he would use Race.
Social Class. and Religion as "control variables," and
specify one value to be retained for Race (white) two values
for Social Class (middle and upper) and one value for
religion (Catholic).

Note that the number of subjects used in a given
analysis may not exceed 2000. However, the routine may, if
necessary, read in up to 9999 subjects in the process of
searching for 2000 or less subjects to be used in the actual
analysis.

Missing data

All 0's or blanks on the data cards will be treated
as "missing data". Any respondent with a zero or a blank on
his data card for a particular variable will automatically be
dropped from the analysis of that variable only and the N
size will be reduced by 1.

Thus a O or a blank should be used to represent a
“No Answer” or "Did not respond” code. If. for example, on
the category variable "sex", males and females are punched

on the cards as 0's and 1's, the user must make use of the

 

automatic recoding option to recode these groups as 1's and
2's.
Input

Data may be input from punched cards or from tapes.

If input is from tape, the logical unit number must be be-

 

tween l and 09 inclusive, and must not 2e 20 gr 25. (The

 

 

 

 

 

 

 

 

 

212

program uses tape unit 25 as a scratch unit for input of con-
trol cards). Data decks (or tapes) may contain more than one
card per subject. but each subject's cards must be together
(match-merged). One card must contain values of variables
for one respondent only, and each variable must appear in

the same column on every card.

Timing

For an "average-sized" run of 300 subjects, 36
dependent variables. and 4 category variables, the program
used approximately one minute of computing time. The amount
of time needed varies chiefly with the number of subjects, so
that with 1000 subjects, 36 dependent variables, and 2
category variables, approximately 3 minutes is used.

HOW TO USE THE VALUTEST SXSTEM

PROGRAM VALUTEST is a tape overlay system, which
means that the user may gain access to it simply by "calling"
it from a tape which is on file at the MSU Computer Center.
Thus, he need not obtain a "program deck" for the routine he
wishes to use.

Following his ENC (Problem Number Card), his JOB
card, and the Valutest System control cards, the user must
submit a series of "control cards" which tell the program the
number of subjects, the number of variables, the format for
reading in these variables, the names of the variables, and

other instructions for the program.

 

 

 

213

All control cards must be precisely correct in order
for the program to execute its job properly and provide
accurate results. This means that an attitude of extreme
exactitude must be exercised in preparing control cards.
After punching the cards, the user should obtain a printed
copy of his complete set of control cards by running them on
the 007 line printer, and scrutinize this "printout" care-
fully for possible "bugs," such as:

l. Has every card necessary been included, but no

"extra" cards?
2. Is everything in the right columns on the cards?
3. Are all the numbers correct (for example, does
the number of variables on the main parameters
card correspond to the number of variables on the
format card)?

a. Are the cards in the correct order?

In the following section, example sets of control
cards are provided for Routine oneway. The user should
study the exanple carefully and use it as a model for his
control cards.

VALUTEST SYSTEM CONTROL CARDS

Following your PNc and JOB card, the following con~
trol cards are necessary for calling PROGRAM VALUTEST for
use of any of its routines:

l. Equip card
7 EQUIP.20=(VALUTEST),MT(290),RO
This card "equips" tape unit 20 with the VALUTEST

tape. The last character on this card is a letter 0, not a

 

 

 

 

 

214
zero. The tape unit number used on this card must correspond
to the tape unit number on the "Loadmain" card.
2. Loadmain card

7LOADMAIN.20.5.2000
9

This card loads the main program from tape unit 20.
In this example, the "5" is the user-designated time limit
and the 2000 is the print limit (number of lines). These
may be increased or decreased for specific jobs at the dis-
cretion of the user. This card takes the place of a "RUN"
card.
3. Routine Name Card
ROUTINE ONEWAY

Note that this card (and all subsequent control
cards) begins in Column 1. All control cards mpg: begin in
column 1. The routine name card specifies the name of the
routine the user wishes to call, with the word "routine,"
followed by a space, then the name of the routine, beginning
in column 9.
4. Qgta Input Unit Card
DATA ON UNIT 21

or

DATA ON CARDS
This card specifies whether the data are to be read

in from punched cards or from a user-supplied tape. If the

latter is the case, the use must insert a gEQUIP card, equipp-

ing a unit with his tape. The number of this unit is then

 

 

 

 

F—E—i

215
specified on the Data Input Unit Card. The program assumes
that data read in from tape will be in the form of BCD card
images.
5. Main Parameters and Options Card
(SEE PAGES 38 and 39)

This card specifies the number of subjects, the
total number of variables, (including both independent,
dependent, control, and identification variables). It also
specifies values for user options pertaining to various
choices which are offered by each routine.

Main Parameters Card for ROUTINE ONEWAY
0381, 40. 02.1.1.1, MSU STUDENTS FALL 67

Columns 1-4 = total number of subjects (respondents).

Columns 6-7 = total number of variables (including

independent, identification, dependent. and control

variables. if any)

Columns 9-10 = Number of variables to be recoded
(if any).

Column 12 = Significance test option. A '1" in this
column means that the user chooses the Median Test,
while a "2" means that the Kruskal-Wallis H test is
preferred.

Column 14 = Echo check option. User wishes to have
data printed out after being read in and recoded.
1=print data. O=do not print.

 

Column 16 = Total sample medians option. 1=compute
and print medians for whole sample. O=do not.

Column 18 through 37 = Study title (limited to 20
spaces).

Column 80 = Control variables option. 0 = control
variables will be used. blank = no control variables.

 

 

 

 

216

6. Independent Varigbles Numbers Card

01023940

The program having been instructed to read in 41
variables (or some other total number of variables as speci-
fied on the Main Parameters Card) it now must be told which
of these are the so-called Independent or Category Variables.
If the first. second, thirty-ninth. and fortieth variables
read in are the independent variables, then the card would
appear as above. Note that each variable number is a twp-

column integer. Variable numbers are consecutive, with no

 

spaces in between.
7. Identiiication VarigblggNumbers Card
4178
This card specifies which variables are the "subject
I.D. numbers”. Each number is a two-column integer.
8. antrol Variabges Numbers Card (optional)
3738
This card should not be included unless one is mak-
ing use of the "control variables” option (see page 11).
It specifies which of the variables read in are the control

variables. Each variable number is a two-column integer.

 

9- Dependent Variables Numbers Card

030h05060708091011121314151617181920212223242526272829303132
333435363738

This card specifies which of the variables read in
are the “dependent variables". Each number is a two-column

integer. In the case of routines CHANGE and STABLE, where

 

 

 

 

 

217

up to 72 dependent variables may be read in (counting both
pre- and post- measures) these numbers may be continued on a
second card. However, before doing so one must fill the
first card completely with no numbers.

10. Format card

(212,6X,1812/20X,1812,10X,212)

This card specifies the format by which the data are
read in. The total number of variables specified on this
card must correspond to the total number of variables speci-
fied on the main parameters card. Data are read in under in-
teger ("I") format. A slash means "skip to the next card",
and should be used only if data is to be read in from more
than one card per subject.

11. Category Variable Name Card(s) followed by Group Name

 

 

Cards
02 SEX For each category (independent) variable. a name
MALE card must be provided. The integer number in the
FEMALE first two columns of this card specifies the number
05 ACE of groups for that variable.
1 T0 15

16 T0 25 Please note that (1) this refers to the number of

20 TO 35 groups after recoding. i.e. as they will appear

36 T0 45 in the final printout, and (2) the number of group

45 OVER name cards following each variable name card must

etc. be the same as the number of groups specified in
columns 1 and 2 of the group name card.

Variable names are limited to 20 spaces. Group names
are limited to 8 spaces and must appear in the same order as
the groups are coded on the data cards, i.e. if females were
coded “l" and males coded "2" then the group name cards for

SEX should be in that order-~first "FEMALE" and then "MA E".

 

 

 

 

218

12. Dependent Variable Name Cards
A COMFORTABLE LIFE
AN EXCITING LIFE
etc.

For each dependent variable. a name card must be
provided. The name is limited to 20 spaces in length.
The number of dependent variable name cards must correspond
to the number of dependent variable numbers on the "DEpendent
variable numbers card", except in the case of routines

CHANGE and STABLE.

13. Receding Cards (option for ONEWAY)

02 03 These cards should not be inserted unless one
00:01 is making use of the—“recoding option" and has
0L:02 specified as such on the main parameters card.
02:00

04 01 These cards are instructions to the program
05:00 concerning variables to be recoded. If, for
05 02 example. "Sex" is variable number 2 and has
06:05 been coded 0:male, l=female, 2:no answer. then
07:06 the recoding cards at the left should be used.

Columns 1 and 2 of the first card contain a
two-column integer specifying the number of the variable to
be recoded (in this case, variable number 2, the second one
read in) and columns 10 and 11 contain the number of values
to be recoded. This two-column integer must be in columns
10 and 11. It must correspond to the number of "recode
values cards" which follow. In this case that is three.

A zero is recoded as a l, a l as a 2, and a 3 as a zero.

Note that these also are two-column integers. in columns 1
and 2 and b and 5. separated by an equals sign. (or a comma,
or a space). A set of recoding cards like the ones above
must be inserted for each variable to be recoded. The number
of sets of recoding cards must correspond to the "number of
variables to be recoded“, specified on the main parameters
card.

In. Control Variable Values Cards (optional for all routines
except HEKS

02 0002
03 0001
00 00010203

[________fi

219
Immediately following the "recoding cards" (if any

or if there are none, then following the last dependent vari-
able name card) and immediately preceding the "EXECUTE" card,
the user must insert a set of "control variable values cards."
one fpg,each control variable. This card specifies the
number of the control variable and the values of that vari-
able to be excluded from angiygis.

Thus, referring to the example above, the first card
specifies variable number 2 (the second variable read in) as
a two-column integer in card columns 1 and 2, and two values
of that variable (00-02) as two two-column integers beginning
in card column 10. Thus. if this variable were Sex, and the
variable were coded l for males and 2 for females. and the
user wished to run a particular comparison on the males only.
this card would cause the program to automatically exclude
from analysis all non-male subjects.

Note that zero is also specified as a code to be ex-
cluded. If data cards contain zero's (as a no-response code,
for example) these subjects will be included along with the
males unless the user specifically indicates that they also
should be excluded. One “control variable values card" is
necessary for each control variable. Thus in the example

above there are three control variables. If the user is not

 

making use of the control variable option these cards are not
necessary, and should simply be left out.

15. *EXECUTE Card

The final control card is a card with an asterisk in

 

 

 

 

 

220
column 1 followed by the word "execute". This is the last
control card. and in the case of data read in from punched

cards. this card is immediately followed by the user's data

deck.
Statistical formulae used in this research
1) Mean ‘3 = X
_ N
where X : mean 3 X the sum of the scores; N : the number

of respondents.

2) The mean for grouped data X : M' + fX'(i)

N
where M‘: arbitrary reference point. or midpoint

i : the size of the class interval.

3) standard deviation 8 =‘ x2

4) the variance 3%:

2|>< '2!
N

5) Coefficient of variation using the mean and standard

deviation J : 6 .100

u
6) Test of significance

 

t = Xl-AZ
6nl-x2
where i1 : median of first sample
Y : median of second sample
3 _ l.+ 1

Distribution of differences between medians of a

pair of samples.

 

Control cards

221

A Complete fig; 2; Example Control Cards £9; ROLEIE ONEWAY

.....(your PNC)....

Jon,012345 gum: , 3 , mam ,rmsmm:
EQUIP,20- (VALUTEST) ,m' (290) ,R0

LOADMAIN.20,3,2000

ODTINE ONEWAY
DATA ON CARDS

0231,41,oz,1,1,1,nsu summers

383940
3741

(3612,5XI3/10X,11,6X,212,56X,13)

02 SEX

MmLE

FEMALE

03 AGE

YOUNG

MIDDLE

OLD

02 RACE

WHITE

BLACK

A COMFORTABLE LIFE
AN EXCITING LIFE

RESPONSIBLE
SELF-CONTROLLED
38 03
00801

01:02

02300

39 06
02:01

03=02

04802

05803

06=03

07:03

*EXECUTE
011805030702......

(PNC card)

(JOB card)

(EQUIP card)
(IDADMAIN card)
(routine name card)

(data input unit card)

(main parameters card)
(independent variables numbers card)
(identification vars. numbers card)

010203040506070809101112131415161718192021222324252627282930313233353536(dep. vars.

(format card)

(indep. variable name card)

(group name cards)

(dependent variable name cards)

(recoding cards - optional)

("*execute" card)
(your data deck)

 

 

 

222

APPENDIX C

Breakdown of the sample structure

based on organizations

 

 

 

 

 

223

 

 

 

 

 

 

TABLE 56 . Sample size of the educational institution
Departments No. in Usable Sample's relation
managerial Question— to Department
positions naire '
Most
effective 51 32 68%
Least
effective 123 on 52%
Total 17h 96” 60% ‘D_
TABLE 57. Sample structure of the most effective department
of the educational institution based on religion.
Religion Number in Percentage
strata of sample total
Protestant 25 81%
Catholic 7 18%
Jewish - -
No answer 1 1%*
Total 32 100%

*All percentages have been rounded to the nearest figure.

 

 

220

 

 

 

 

 

 

 

 

 

 

TABLE 58. Sample structure of the leasteffective department
of the educational institution based on religion.

Religion No. in % of sample

strata total

Protestant 44

Catholic 13

Jewish 0

No answer 7

Total 53* #:—

TABLE 59. Sample structure of the most effective department
of the educational institution based on sex.

Sex No. in % of sample

strata total

Male 29 93-75

Female 3 6.25

Total 32 100.00

TABIEIéO. Sample structure of the least effective department
of the educational institution based on sex.

Sex No. in %dofsample

_ strata total

Male 9 14

Female 55 86

Total 54 ‘fiao

 

 

 

 

225

 

 

TABLE. 61. Sample structure of the most effective depart-

ment of the educational

institution based on age.

 

 

Age No. in % of sample
gtrata total

18-35 a 12.5

36-50 14 43.75

51 over 14 “3.75

Total 32 100.00

TABLE 62. Sample structure of the least effective depart-

ment of the educational

institution based on age.

 

 

Age No. in % of sample
_, stgata total

18-35 42 ‘56.25

36-50 15 34.37

51-over 7 4.38

Tdfal #50 100.00

 

TABLE63 . Sample structure of the most effective department
of the educational institution based on education.

 

 

Education No. in % of sample
strata total
Elementary 0 0
High school 22 87.50
College 10 12.50
100.00 ”D

Total 32

 

 

226

TABLE 64. Sample structure of the least effective depart-

ment of the educational

institution based on

 

 

education.
Education No. in % of sample
strata total

Elementary O 0

High school 27 42

College 35 54.8
Graduate 2 3.2

Total 64 100

 

TABLE 65. Sample structure of the most effective department
of the educational institution based on income.

 

 

Income No. in % of sample
strata total

Under $8000 3 9.3
‘8001-10000 7 21-9
“10001-12 9 28
$12001-1u o 18.7
$14001-1o n 12.5
$18001-20 1 3.2
$20001-over l 3.2

Total WV 32 100.

 

TABLE 66 . Sample structure of the least effective department
of the educational institution based on income.

 

Income No. in % of sample
Strata total

$8001-1000O 47 73.4
$1001-12 9 14.2
$12001-14 3 4.8
$14001-1o 2 3.1
$16001-18 1 2.0
$18001-20 2 3.1
$20001-over 0 0

" 100.

 

Total 64

 

 

 

 

It

22?

is interesting to

in the sample taken from the

born in the Midwest Region.

TABLE 67. Sample size

mention that 98% of the subjects

educational institution were

of the InsuranceCompany

 

 

 

 

Sections No. in managerial Usable Sample's
positions question- size
naire <_
Most 97 75 77.5%
effective
Least 82 56 68%
effective
Total 179 131 72%
TABLE 68. Sample structure of the most effective section of
the insurance company based on religion.
Reli ion No. in % of sample
g strata total
Catholic 18 24
Protestant 52 69-3
Jew 0 0
No answer 5 6.7

 

Total

75

100.

 

 

 

 

 

 

228

TABLE 69. Sample structure of the least effective section

of the insurance company based on Religion.
Religion No. in % of sample

strata total

Catholic 16 28.5
Protestant 36 64.8
Jew 0 0
No answer 4 6.7
Total 56 100.

 

TABLE 70. Sample structure of the most effective section of

the Insurance Company based on sex.

 

 

 

Sex No. in % of sample
strata total

Male 54 72

Female 21 28

Total 75 100

 

TABLE 71 . Sample structure of the least effective section of

 

the insurance company based on sex.

 

 

 

 

Sex No. in % of sample
strata total
Male 36 64.2 a
Female 20 35.8
Total 56 100

 

 

 

 

229

TABLE 72” Sample structure ofthe most effective section of
the insurance company based on age.

 

 

Age No. in % of sample
__gfli strata total
18-35 28 37.3

36-50 30 40.

51-over « 17 22.7

Total 75 ”‘ ‘"‘ 100.

 

TABLE 73. Sample structure of the least effective section of
the Insurance Company based on age.

 

 

Age ‘ No. in % of sample
.fgtgata total

18-35 12 21.4

36-50 21 37.5

Sl-over 23 41.1

Total 56_ 100.

 

TABLE 74« Sample structure of the most effective section of
the insurance company based on education.

 

Education No. in % of sample
_ggtrata total

Elementary 2 2.6

High school ' 3O 40.

College , 35 46.5

Graduate 8 11.8

 

Total 75 A? 100'

 

 

230

 

TABLE 75. Sample structure of the least effective section
of the insurance company based on education.

 

 

Education No. in % of sample
strata total

Elementary l 1.8

High school 27 48.2

College 22 39.2

Graduate 6 11

Total 56* 100.

 

TABLE 76 . Sample structure of the most effective section of
the Insurance Company based on income.

 

 

Income No. in % of sample
strata total
Under $8000 29 38.6
$8001-$10000 24 32.
$10001-$12000 11 10.8
$12001-$14000 6 8
$10001-816000 2 2.6
$16001-$18000 O O
818001-820000 1 1.6
$20001-over 2 ; 2-6
Total 75 100. 7“ _

 

 

 

231

 

 

 

 

 

 

TABIE'77. Sample structure of the least effective section
of the insurance company based on income.
Income No. in strata % of sample
____1 total
Under $8000 25 44.6
$8001-$10000 15 26.8
810001-812000 7' 12.7
812001-814000 5 8.9
$14001-$16000 2 3.5
$16001-$18000 0 0
$18001-$20000 0 0
$20001-over 2 3-5
Total 56 100.
TABLE 78 Sample size of the Bank
Branches No. in Usable Sample's
managerial question— Size
pggltions naires ___
Most 15 10 66%
effective
Least 15 8 53%
effective
Total 30 18 60%w

 

 

 

232

TABLE 79. Sample structure of the most effective branch of
the Bank based on Religion.

 

 

 

 

 

 

 

Religion No. in $ of sample
strata tgtal

Protestant 7 70

Catholic 0 0

Jewish 0 O

No answer 3 30

Total 10 100 _

TABIEJBO. Sample structure of the least effective branch of

the Bank based on Religion.

Religion No. in t of sample

__.___ strata total

Protestant . 5 62.5

Catholic 0 0

Jewish 0 O

No answer 3 37.5

Total .1 8' 100.

 

TABLE 81. Sample structure of the most effective branch of
the Bank based on sex.

 

Sex No. in . % of sample
strata total

Male 9 90

Female 1 10

 

 

TEtai 10 100.

 

 

 

233

TABLE 82. Sample structure of the least effective branch
of the Bank based on sex.

 

 

 

 

 

Sex No. in % of total
strata sample

Male 6 75

Female 2 25

Total 8* 100.

 

 

TABLE 83. Sample structure of the most effective branch of
the Bank based on age.

 

 

Age No. in Z of sample
___ strata total
18-35 7 70

36-50 1 10

51~over 2 20

TBtal 10 100

 

TABLE 88. Sample structure of the least effective branch of
the Bank based on age.

 

 

Age No. in 3 of sample
strata total

18-35 4 50

36~50 2 25

51~over 2 25

Total “7’ 8 100

 

 

 

 

234

 

TABI£:85. Sample structure of the most effective branch of

the Bank based on education.

 

 

 

Education No. in % of sample
.1. strata total __

Elementary 1 10

High school 3 - 30

College 5 50

Graduate 1 10

Total " 10 100 _‘

TABLE 86. Sample structure of the least effective branch of

the Bank based on education.

 

 

Education No. in % of sample
strata total

Elementary 0 0

High school 2 25

College 4 50

Graduate 2 25

Total 8 100 —

 

TABLEIT7. Sample structure of the most effective branch of

the Bank based on income.

 

Income No. in % of sample
strata total

Under ‘8000 5 :8
$8001- 10000 3 :0
$1001-$12000 2 80
$12001-$l4000 0 .
814001-816000 0 0
816001-s18000 0 6
$18001-$20000 0 o
$20001~over 0 _ 0

100

 

TStai 10

 

 

 

235

TABLE 88, Sample structure of the least effective branch of
the Bank based on income.

 

 

Income No. in % of sample
strata total

Under $8000 4' 50
$8001-$10000 2 25
$10001-$12000 O O
812001-$14000 1 12.5
$14001-$l6000 0 0
816001-818000 0 0
$18001-s20000 1 12.5
$20001-over 0 0
Total 8 100

 

TABLE.319. Sample structure of the more effective and the
less effective persons of the three organizations
under survey based on the rating made by super-
visors for their effectiveness.

 

Organization More Less Total
_11 effectives effectives

Educational 58 38 96

institution

Insurance 69 62 131

Company

Bank 11 7 18

Total 138 107 243

 

 

 

 

 

   

414411