An analysis of the Best Employers in India by Business Today (anniversary issue January 21 , 2001) found that an important characteristic of successful organizations, impacting their effectiveness, is "living their values". The culture in all the companies studied did not evolve by accident but developed from carefully thought out processes, a conscious set of decisions, work climate and the selection of specific policies and procedures. Best employers also inculcate and reinforce desired behaviour through training and recognition. The above survey identified Infosys as the best employer characterized by 'wealth and values'. Narayan Murthy of Infosys states "The task of the leadership is to make people believe in themselves, the organization, the value system and the philosophy of the organization".

After opening of the Indian Economy in the early 1990s most Indian organizations have written Values, Vision and Mission statements, which inform the customers, employees, external stakeholders and others about their organization values. They describe the kind of behaviour that is met with approval, the policies and procedures that are formulated and practiced, inspiring, guiding and controlling. These statements reflect the values cherished by the top-level management and are usually in sync with the socio-cultural framework in which the organization exists.

The Significance and Components of Culture
Culture provides the "social glue" that generates the "we-feeling", and thereby counteracts the impact of differentiating processes that are unavoidable in a work setting. Organizational culture encourages a shared system of meanings that is the basis for communications and mutual understanding. If these functions of culture are not fulfilled the efficiency and productivity of the organization reduces. Culture of an organization can be understood in terms of the values, norms and artifacts. Values are beliefs of what is good or right for the organization and what should or ought to happen. The stronger values are in an organization the more they influence behaviour. Values are translated into reality (enacted) through norms, artifacts and through rituals, stories and myths Norms are the unwritten rules that guide (informally) behaviour. They tell people what should be done, said, believed. They are passed on by word of mouth and enforced with reactions in case of violations. Artifacts are the visible and tangible aspects of culture that can be seen heard and felt - the working environment, language in letters, the way members address in meetings or over the phone.

While values are the bedrock of any corporate culture, these must be shared through out the business for it to be value driven. This is not just dependent on mere articulation of values. Implicit values are deeply embedded in the culture of the organization and are reinforced by the behaviour of management, which is very influential. Values that are espoused but not reflected in managerial behaviour may have little or no effect. It's the "values in practice" that guide desirable behaviour and most organizations should avoid discrepancy between what is espoused and what is practiced. If there is a discrepancy it would result in reducing the "we feeling" which culture is supposed to provide. Thus management has to realize that an organizational culture does not develop haphazardly or by accident but it has to be evolved by conscious effort. Values have to be institutionalized to encourage ethical behaviour and develop a culture that promotes efficiency and high performance.

Institutionalization of Espoused Values: Clarity, Leadership and Alignment
This is a process whereby the organization attempts to develop a values driven culture, instill values and go beyond mere stating. There are various steps that have to be given attention to by the organization.

To begin with the there should be clarity and clear communication of values that leaders and employees view as important. An organization's values determine what leaders and other employees will view as important and proper, they provide direction and consistency in decision making in the absence of policy, procedures and precedents. However when an organization attempts to identify its core values it is important to respect the personal value system of the employees, providing them a role in defining and identifying those values. This is important for their perception of ethical congruence, employees should see harmony between what is expected of them and what they personally believe is right.

Company leaders should be personally committed and willing to take credible action on the values they espouse. This creates sharedness of values at all levels, enhancing ethical effectiveness of an organization which is guided and spread by the decisions and actions of its leaders. Leaders pro-vide the role models for what the organization requires and expects from the employee body.

Support for ethical practices from the organization has to come from all functions and divisions of the organization. The strategies, goals, policies should emanate from the ethics and value statements of organizations. This support is not always automatic, and therefore, must be cultivated and nurtured by the leader's role modeling.

Ethical Education and Behaviour
Values, policies, procedures, goals and objectives can have a positive impact on performance if employees are trained on the hows and why components of these ethics. This is essential especially in case of new employees who need to be oriented towards what are the acceptable norms and guiding values of the organization. It is through training that employees are prepared to act in their responsibilities for ethical effectiveness of the organization.

In order to clearly demonstrate its commitment to its values and ethical standards, the organization should recognize and reward those values and ethics related decisions that it wants to sustain and promote. In issues like performance measurement, and career development, it should be seen if employees are following the prescribed value system.

There is an underlying climate in every organization, which is an outcome of the employee's collective perceptions about the organization's value, norms and expectations. Perceived congruence between these perceptions and individual (personal) values encourages commitment of the employees towards the organization. Ethically founded and value driven organizations constantly evaluate the impact of values, vision and mission statements, to see their effectiveness in a dynamic business environment and bringing in a change when required.

Relevance of Institutionalization
Focusing on instilling and implementing values helps the organization develop a culture that enhances alignment of personal and organizational values, which is the road map to a high performing work culture. While culture of an organization is intangible but evolving an organization as a value driven one results in tangible gains. This alignment provides a work place to the employee's that fulfills their values, needs and goals and hence enhances their commitment, loyalty and performance. Also following the selection-attraction-attrition process, those employees would be attracted to the organization who would accept the values and culture prevalent in the organization. Those unwilling to accept the culture may either leave of their own accord or can be removed by the organization. Culture is the focus because organizations that support ethical behaviour, strengthen the relationships and reputations companies depend on. Culture is the ingredient that crystallizes other elements of success like excellent products, capable people, modern technology. An organization rich in culture is rich in profits.

Contact: purangp@iitb.ac.in.