What Is Values-Based Leadership?

Value based leadership In the context of a knowledge-based economy, enterprises tend to become more knowledgeable, and employees tend to become more knowledgeable. How to lead a knowledge-based enterprise has become a reality, which has led to a value-based leadership theory. This is Wharton House's proposal after integrating leadership theories since the 1970s. It represents the latest progress in leadership theory.

Value-based leadership

With the deepening of the understanding of cultural values in the field of management, scholars represented by Professor House have highly integrated leadership theories and experiments since the 1970s.

The results of Professor House's research indicate that value-oriented motivation is stronger, broader, and more durable than actual-oriented motivation, and believes that value-based leadership must lead to:

l. The followers have a strong vision of the leader, the vision of the collective for the leader, and the collective;

2. Commitment to leaders and commitment to collective internalization;

3. Wake up followers' motivations related to the realization of the collective vision;

4. Followers are willing to make substantial self-sacrifice and make efforts that exceed the requirements of the post responsibility system.

This method of leadership is superior to traditional leadership theory, because traditional leaders' incentives to their subordinates are mainly based on emergency material and economic compensation and punishment, and this type of leadership will lead to high-level motivation and commitment of followers And its organizational performance is well above average, especially in a crisis and uncertain environment.

It is not suitable for knowledge-based employees of knowledge-based enterprises to adopt emergency external compensation and punishment. It is not easy for employees to specify and measure their performance goals. It is difficult for leaders to link external compensation to personal performance. .

The value-based leadership theory holds that the higher the level of sharing and recognition of the value that the leader believes in the leader and has been integrated into the corporate culture, the more effective the leadership behavior. In other words, leaders who have clear values clearly express their vision, inject their own values into the organization and work, and resonate with the values and emotions held by the leader, thereby evoking the leader's collective goals. And the collective vision, and lead to the improvement of the self-worth of the leader, and then better improve the effectiveness of leadership behavior.

Value-based leadership theory also argues that there are a range of behaviors that are very effective in forming the common value of an organization. Members of the organization will have a strong motivational effect after they strongly agree with the values they believe in, and internalize them into their own values. These behaviors are called value-based leadership behaviors. It includes: clearly expressing the organizational vision; showing employees the good qualities of the leader, the leader's unremitting pursuit and sacrifice of the vision; conveying high-level expectations of employees, expressing high confidence in others; establishing the pursuit of the organizational vision Personal example; unite creative people around themselves with smart means.

Value-based leadership theory emphasizes the evoking role of values, which can constantly attract capable people to join the organization. In an organization with a strong common value, even if there are difficulties, people will share the same difficulties and overcome difficulties together for the common value. A large number of empirical studies show that leaders adopting value-based leadership behaviors will have a huge impact and positive effects on their subordinates. When the subordinates agree with the values that the leader believes and advocates, this identification will gradually be internalized into a part of their own values, and become the relevant principle of dealing with people.

Value-based leadership theory emphasizes respect for people's self-awareness, protects the personal interests of employees, and realizes their own value by linking the interests of the company with the interests of individuals. When the members of the organization agree with the vision of the leader and the organization, a strong cohesiveness occurs. Organizational members will be more cooperative, everyone will have a strong collective consciousness, and self-esteem will naturally increase. In addition, it will also stimulate the unconscious motivation related to the realization of the mission in the minds of employees, and make the members of the organization begin to judge their value according to their contributions to the collective and mission.

This support will form a culture characterized by satisfying customer needs and teamwork. Subordinates will use this as a realization of self-worth. They will make efforts beyond the responsibility required for the job and be able to serve the interests of the organization Sacrifice personal interests. Friction within an organization can be significantly reduced and lead to a high degree of team effort and effectiveness, aligning personal motivation, organizational culture, strategy and vision. Value quotient (VQ) can help executives implement business

Value-based leadership refers to the relationship formed between leaders and their followers on the basis of shared values. How to implement value-based leadership, according to the practice of excellent companies, summarize the following ways:

Establish a Vision that Followers Expect;

Show enthusiasm for the vision advocated and make substantial self-sacrifice for the collective and that vision;

The top leader must show self-confidence, self-confidence in achieving the vision, determination and perseverance in the vision;

Instill this vision, do everything possible to promote the values it believes in, and develop policies that are consistent with the vision;

Leaders should show integrity and express themselves in a positive image;

Take risks for the collective and mission;

Provide employees with an environment of interest and challenging work and opportunities for development, and provide opportunities and efforts for the professional development and career growth of followers;

Create an atmosphere of knowledge sharing and harmony between employees;

Raise high performance expectations to followers and show confidence in their capabilities;

Promote and cultivate talent internally. Reward and promote in a variety of ways those who embrace and carefully implement core values and achieve outstanding performance in real work. In this way, the company established a reward and punishment system consistent with the company's core values;

Use core values to motivate employees.

Development of Value Leadership Theory I

(1) Value-based leadership behavior can directly lead to employee recognition, satisfaction, and motivation (CMS), and achieve good performance, thereby making leadership behavior effective.

Development of Value Leadership Theory 2

(2) Leader career development path has an impact on leadership effectiveness. This classification has practical significance for the study of the behavior of business leaders in transition economies: In the traditional planned economy, business leaders owned by the whole people are all assigned by superiors; private and private enterprises have sprung up after the reform and opening up. People who have a foundation (funds or social relations) and want to go to the business have gone to sea. Some of them have struggled to succeed and become leaders of private or joint ventures. There are also entrepreneurs with low education level and low starting point but strong ability. Through long-term accumulation and survival of the fittest, he has now become the boss of his own company. This classification method not only summarizes the personal development history of business leaders, but also represents the development history of some companies to a certain extent.

Development of Value Leadership Theory III

(3) Leader's high level of knowledge will lead to high subordinates 'identification, satisfaction and motivation. The influence of leadership's level of knowledge on "integrity" and subordinates' identification, satisfaction, and motivation is positive. Explain the academic level of the leader. It has a positive effect on increasing its commanding power. The business leaders we interviewed have high education. He is also upright, emphasizing morality, fairness, and leading by example. Often it can win everyone's trust, and everyone's recognition of the company is relatively high.

Development of Value Leadership Theory IV

(4) The more intense the competition, the more value leadership behavior will lead to high subordinates 'identification, satisfaction, and incentives. The competitive environment as a moderating variable has a positive influence on the leadership behavior of "confidence in subordinates" and the subordinates' identification, satisfaction, and incentive relationships . This is also in line with the basic assumptions of the leadership theory based on value: the more fierce the competition environment, if the leader still shows full trust in his subordinates, "the scholars die for their own souls," the subordinates naturally spare no effort to contribute their intelligence. And willing to sacrifice himself for the benefit of the organization, and make efforts beyond the requirements of the post.

Development of Value Leadership Theory 5

(5) Employees in Chinese companies also value value-based leadership behaviors. Such leadership behaviors include: the leader has sufficient confidence in his subordinates, entrusts him with important and meaningful work, and conveys high-level expectations so that they can go deep from the inside. Feeling valued and respected; leaders are visionary, noble and honest with employees. Can make them feel confident and secure to follow such leaders. Furthermore, they are willing to integrate themselves into the collective cause and make positive efforts; leaders emphasize the importance of values and beliefs in the enterprise, inject work with positive emotions, educate and guide employees. Greatly motivate employees' enthusiasm for work, and achieve corporate goals while achieving self-directed value.

Development of Value Leadership Theory 6

(6) Value-based leadership behaviors are generally effective Value-based leadership behaviors are generally effective, they can directly cause the leaders and followers to resonate with each other. It is also easy for leaders to inject values into subordinates. This support will form a culture that is characterized by meeting customer needs and teamwork. Subordinates will take this as the realization of self-worth, they will make efforts beyond the responsibility required by the post, and can sacrifice personal interests for the benefit of the organization. Friction within an organization can be significantly reduced and lead to a high degree of team effort and effectiveness, aligning personal motivation, organizational culture, strategy and vision.