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Perceived importance of “social goals” in business organizations
OAIIiGA. The Int. Jl of Mgmt Sci., Vol. 2, No. 4, 1974
Perceived Importance of "Social Goals" in Business Organizations E D W A R D J LUSK BRUCE L OLIVER Accounting Department, University of Pennsylvania (Received March 1974)
Business organizations operate within a complex socio-technical environment. Interactions between these socio-technical dimensions and the managers' personal value systems are thought to influence managerial role patterns and decisions. This paper investigates shifts in perceived importance of "social goals" from a set of organizational goals. The research concludes that there has been no significant changes occurring in either the ordering or the clustering of organizational goals. operate within a multi-dimensional environment. Thus, business organizations often develop sets of interactive goals in an attempt to maximize their objective functions, however defined. Interactions between these organizational goals and the individual manager's Personal Value System are thought to have a significant influence on the role patterns and decisions of the persons comprising the organization's decision network 1 [1, 2, 7]. Internalization of the organizational goals is related to the manager's personal observations of results of individual actions vis-gt-vis the organizational reward system. One may characterize the period of 1966-1972 as one in which various segments of society presumably experienced an awakening of their "socialconsciousness". The effectiveness of the increased airing of social issues as a change agent depends upon the organizational reaction to social issues. If through the measurement of social effects the knowledge of results of managerial actions is integrated into the organizational reward/sanction system, the "socialgoals" may be given a commensurately high organizational priority [5, 6]. The change in perceived importance of the goals of business organizations over the period 1966-1972 is the object of this study's inquiry. ORGANIZATIONS
1 "A personal value system is viewed as a relatively permanent, perceptual framework which shapes and influences the general nature of an individual's behavior." [3, p. 54] For a synthesis of research using the PVS, see [4]. 553
Lusk, Oliver--Perceived Importance qf "Social Goals" RESEARCH
METHODOLOGY
The goals of business organizations, and the research instrument used to measure them in a personal value system context, were developed by England [3]. The present study reports the authors' 1972 cross sectional, randomized sample, replication of that study. England's set of goals (listed alphabetically) were: 1 2 3 4
Employee Welfare High Productivity Industry Leadership Organizational Efficiency
5 6 7 8
Organizational Growth Organizational Stability Profit Maximization Social Welfare
The research instrument employed in both studies to gather the individual manager's responses was England's Personal Value Questionnaire (PVQ) 2 which records scores each of the eight concepts on four dimensions: (a) (b) tc) (d)
Importance to the individual. Successful (pragmatic organization perspective). Right (ethical) Pleasant (aesthetic)
England states: "The development of the PVQ was based on the rationale that the meanings attached by an individual manager to a carefully specified set of concepts will provide a useful description of his personal value system, which in turn will be related to his behavior in understandable ways. The theoretical importance of the meanings an individual attaches to concepts is at the root of a great deal of research aimed at a better understanding of human behavior. Attitude measurement, interest measurement, personality assessment, need assessment, and verbal learning experiments, for example, lean heavily on the assumption that modes of the valuation process for individuals provide predictive clues about their behavior. How concepts are grouped, valuation in terms of like or dislike, important or unimportant, and right or wrong; whatever reactions a concept elicits from an individual --all are expressions of what the concept means to the individual and have implications for his value system." The 1072 managers sampled were randomly drawn from the 1971 edition of Standard and Poor's Directory of Corporations, Executives and Directors. This z Copies of the copyrighted questionnaire are available through the Industrial Relations Center, University of Minnesota. 554
Omega, Vol. 2, No. 4 sample group was constrained by England's three stratifications listed below: (a) (b) (c)
size of organization (number of employees). level of manager in hierarchy. manager's organizational function.
Since one of the purposes of the study was to locate any changes in the PVS as it relates to business goals, the individuals currently sampled were compared with the 1966 sample to determine the extent to which a new population existed in 1972. This comparison was based upon two questions in the PVQ. The analysis revealed that 68-7 per cent of the current respondents have been with their organization six years or less and that 79.2 per cent have been employed in their current position for six years or less. From these facts it is concluded that the 1972 decision network for these organizations is essentially between the PVS responses of individuals with the organization more than six years and six years or less indicated no significant difference at ct = .01].
Hypothesis The null of the hypothesis we wish to test is: American managers will have changed their ranking of the social goals as compared with the 1966 measurement. The basis of the hypothesis is that organizations have not established measurement systems sensitive to the social goals relative to organizational interactions. We, therefore, do not feel that the airing of social issues over the period 19661972 has affected managerial priorities.
Results England developed a joint model frequency of responses, a behavioral system, labeled a Managerial PVS Profile The goals of business organizations are analyzed below based upon their Functional Value scores, which are based upon High Importance and Successful responses. The results are presented in Table 1. The first two columns in Table 1 represent the percentage of respondents in the two samples who rated the concept as High Importance. The second two columns are the percentage who ranked the concept as Successful as their first preference. The third two columns indicate the High Importance and Successful first preference responses. The last three columns are the two rank orderings and the statistical significance of any change, with NS for nonsignificance. A s evidenced in both figures, no significant changes occurred in the ordering of the goal sets and we, therefore, reject the hypothesis. Discussion The implication is - - social and environmental issues have apparently not been internalized by those constituting the decision network and, therefore, 555
H
Lusk, Oliver--Perceived Importance o f " S o c i a l Goals" Table 1. GOALSOF BUSINF-$SORGANIZATIONS ~ High High ~ Successful importance importance ranked 1st and successful 1966 1972 Change 1966 1972 1 9 6 6 1 9 7 2 1 9 6 6 1 9 7 2 Rank Rank in rank High productivity
80
86
70
71
60
63
2
1
N.S.
Profit maximization
72
76
70
71
56
62
3
2
N.S.
Organizational efficiency
81
80
71
72
60
62
1
3
N.S.
Organizational growth
60
47
72
72
48
42
4
4
--
Industrial leadership
58
55
64
60
43
41
5
5
--
Organizational stability
58
51
54
61
38
37
6
6
--
Employee welfare
65
75
20
19
17
16
7
7
--
Social welfare
41
20
8
6
4
3
8
8
--
have had no effect on the relative or absolute o r d e r i n g o f the priority o f these goals. T h e a u t h o r s suggest that unless the " s o c i a l g o a l s " are m a d e an explicit p a r t o f the orgardzation r e w a r d / s a n c t i o n system one c a n n o t expect the social goals to be internalized relative to their o p e r a t i o n a l i m p o r t a n c e in the organization.
REFERENCES 1.
2. 3. 4. 5. 6. 7.
CAMPBELL JP, DUNNFr'rEE MD, LAWLER EL and WEICK C (1970) Managerial Behavior, Performance, and Effectiveness. McGraw-Hill, New York. Dusos R (1971) Man and his environment: scope, impact and nature. In Man's Impact on Environment (Ed. DETWYLENTR). McGraw-Hill, New York. ENGLAND GW (1967) Personal value systems of american managers. Academy of Mgmt J., March, 53-68. ENGLANDGW (1973) Personal Value Systems of Managers--So What. Working Paper, University of Minnesota, January. LOCKEEA, CARTLEDGEN and KNERR CS (1970) Studies of the relationship between satisfaction, goal-setting and performance. Organizational Behavior and Human Performance, 5, 135-158. PRITCHARDRD and CURTIS M (1973) The influence of goal setting and financial incentives on task performance. Organizational Behavior and Haman Performance, 10 (2), October, 175-183. S'rBWARTLG (Ed.) (1969) Economic Development and Structural Change. Aldine. 556
Perceived Importance of "Social Goals" in Business Organizations E D W A R D J LUSK BRUCE L OLIVER Accounting Department, University of Pennsylvania (Received March 1974)
Business organizations operate within a complex socio-technical environment. Interactions between these socio-technical dimensions and the managers' personal value systems are thought to influence managerial role patterns and decisions. This paper investigates shifts in perceived importance of "social goals" from a set of organizational goals. The research concludes that there has been no significant changes occurring in either the ordering or the clustering of organizational goals. operate within a multi-dimensional environment. Thus, business organizations often develop sets of interactive goals in an attempt to maximize their objective functions, however defined. Interactions between these organizational goals and the individual manager's Personal Value System are thought to have a significant influence on the role patterns and decisions of the persons comprising the organization's decision network 1 [1, 2, 7]. Internalization of the organizational goals is related to the manager's personal observations of results of individual actions vis-gt-vis the organizational reward system. One may characterize the period of 1966-1972 as one in which various segments of society presumably experienced an awakening of their "socialconsciousness". The effectiveness of the increased airing of social issues as a change agent depends upon the organizational reaction to social issues. If through the measurement of social effects the knowledge of results of managerial actions is integrated into the organizational reward/sanction system, the "socialgoals" may be given a commensurately high organizational priority [5, 6]. The change in perceived importance of the goals of business organizations over the period 1966-1972 is the object of this study's inquiry. ORGANIZATIONS
1 "A personal value system is viewed as a relatively permanent, perceptual framework which shapes and influences the general nature of an individual's behavior." [3, p. 54] For a synthesis of research using the PVS, see [4]. 553
Lusk, Oliver--Perceived Importance qf "Social Goals" RESEARCH
METHODOLOGY
The goals of business organizations, and the research instrument used to measure them in a personal value system context, were developed by England [3]. The present study reports the authors' 1972 cross sectional, randomized sample, replication of that study. England's set of goals (listed alphabetically) were: 1 2 3 4
Employee Welfare High Productivity Industry Leadership Organizational Efficiency
5 6 7 8
Organizational Growth Organizational Stability Profit Maximization Social Welfare
The research instrument employed in both studies to gather the individual manager's responses was England's Personal Value Questionnaire (PVQ) 2 which records scores each of the eight concepts on four dimensions: (a) (b) tc) (d)
Importance to the individual. Successful (pragmatic organization perspective). Right (ethical) Pleasant (aesthetic)
England states: "The development of the PVQ was based on the rationale that the meanings attached by an individual manager to a carefully specified set of concepts will provide a useful description of his personal value system, which in turn will be related to his behavior in understandable ways. The theoretical importance of the meanings an individual attaches to concepts is at the root of a great deal of research aimed at a better understanding of human behavior. Attitude measurement, interest measurement, personality assessment, need assessment, and verbal learning experiments, for example, lean heavily on the assumption that modes of the valuation process for individuals provide predictive clues about their behavior. How concepts are grouped, valuation in terms of like or dislike, important or unimportant, and right or wrong; whatever reactions a concept elicits from an individual --all are expressions of what the concept means to the individual and have implications for his value system." The 1072 managers sampled were randomly drawn from the 1971 edition of Standard and Poor's Directory of Corporations, Executives and Directors. This z Copies of the copyrighted questionnaire are available through the Industrial Relations Center, University of Minnesota. 554
Omega, Vol. 2, No. 4 sample group was constrained by England's three stratifications listed below: (a) (b) (c)
size of organization (number of employees). level of manager in hierarchy. manager's organizational function.
Since one of the purposes of the study was to locate any changes in the PVS as it relates to business goals, the individuals currently sampled were compared with the 1966 sample to determine the extent to which a new population existed in 1972. This comparison was based upon two questions in the PVQ. The analysis revealed that 68-7 per cent of the current respondents have been with their organization six years or less and that 79.2 per cent have been employed in their current position for six years or less. From these facts it is concluded that the 1972 decision network for these organizations is essentially between the PVS responses of individuals with the organization more than six years and six years or less indicated no significant difference at ct = .01].
Hypothesis The null of the hypothesis we wish to test is: American managers will have changed their ranking of the social goals as compared with the 1966 measurement. The basis of the hypothesis is that organizations have not established measurement systems sensitive to the social goals relative to organizational interactions. We, therefore, do not feel that the airing of social issues over the period 19661972 has affected managerial priorities.
Results England developed a joint model frequency of responses, a behavioral system, labeled a Managerial PVS Profile The goals of business organizations are analyzed below based upon their Functional Value scores, which are based upon High Importance and Successful responses. The results are presented in Table 1. The first two columns in Table 1 represent the percentage of respondents in the two samples who rated the concept as High Importance. The second two columns are the percentage who ranked the concept as Successful as their first preference. The third two columns indicate the High Importance and Successful first preference responses. The last three columns are the two rank orderings and the statistical significance of any change, with NS for nonsignificance. A s evidenced in both figures, no significant changes occurred in the ordering of the goal sets and we, therefore, reject the hypothesis. Discussion The implication is - - social and environmental issues have apparently not been internalized by those constituting the decision network and, therefore, 555
H
Lusk, Oliver--Perceived Importance o f " S o c i a l Goals" Table 1. GOALSOF BUSINF-$SORGANIZATIONS ~ High High ~ Successful importance importance ranked 1st and successful 1966 1972 Change 1966 1972 1 9 6 6 1 9 7 2 1 9 6 6 1 9 7 2 Rank Rank in rank High productivity
80
86
70
71
60
63
2
1
N.S.
Profit maximization
72
76
70
71
56
62
3
2
N.S.
Organizational efficiency
81
80
71
72
60
62
1
3
N.S.
Organizational growth
60
47
72
72
48
42
4
4
--
Industrial leadership
58
55
64
60
43
41
5
5
--
Organizational stability
58
51
54
61
38
37
6
6
--
Employee welfare
65
75
20
19
17
16
7
7
--
Social welfare
41
20
8
6
4
3
8
8
--
have had no effect on the relative or absolute o r d e r i n g o f the priority o f these goals. T h e a u t h o r s suggest that unless the " s o c i a l g o a l s " are m a d e an explicit p a r t o f the orgardzation r e w a r d / s a n c t i o n system one c a n n o t expect the social goals to be internalized relative to their o p e r a t i o n a l i m p o r t a n c e in the organization.
REFERENCES 1.
2. 3. 4. 5. 6. 7.
CAMPBELL JP, DUNNFr'rEE MD, LAWLER EL and WEICK C (1970) Managerial Behavior, Performance, and Effectiveness. McGraw-Hill, New York. Dusos R (1971) Man and his environment: scope, impact and nature. In Man's Impact on Environment (Ed. DETWYLENTR). McGraw-Hill, New York. ENGLAND GW (1967) Personal value systems of american managers. Academy of Mgmt J., March, 53-68. ENGLANDGW (1973) Personal Value Systems of Managers--So What. Working Paper, University of Minnesota, January. LOCKEEA, CARTLEDGEN and KNERR CS (1970) Studies of the relationship between satisfaction, goal-setting and performance. Organizational Behavior and Human Performance, 5, 135-158. PRITCHARDRD and CURTIS M (1973) The influence of goal setting and financial incentives on task performance. Organizational Behavior and Haman Performance, 10 (2), October, 175-183. S'rBWARTLG (Ed.) (1969) Economic Development and Structural Change. Aldine. 556