Eastern Kentucky University
Value Congruence: Differences along the Nonprofit / For-profit Organization Line
Institution
Eastern Kentucky University
Faculty Advisor/ Mentor
Beth Polin
Abstract
Academics have examined the relationship between the espoused values of an organization and the values held by its employees in great depth. The relationships between this employeeorganization value congruence and several outcomes such as job satisfaction, employee turnover, and performance outcomes have been established. However, one aspect of value congruence that was still not well understood was how the type of ownership of an organization (nonprofit compared to for-profit) affects this degree of congruence. A lack of consensus and the failure of the emergence of a dominant theory have encouraged calls for further study by academics such as Ren (2013). In response to this call, this study aimed to analyze the relationship between employee-organization value congruence and the nonprofit/for-profit organization line by comparing the espoused values of certain organizations with the values held by their employees. Given the lack of previous evidence, it was hypothesized the organizational and employee values would be more strongly correlated within the nonprofit organizations because of their socially responsible nature. This hypothesis was tested by administering a modified version of the Rokeach Value Survey to employees of for-profit and nonprofit organizations and then comparing these results to the values that were officially endorsed by the organizations within mission statements and other official documents. This study contributed to the understanding of organizational behavior between the two types of organizations by providing empirical evidence of the patterns of value congruence across organizational ownership types and helps to provide a clearer foundation for future research. This study also provides a clearer understanding of value congruence to practitioners and will aid them in using value congruence as a source of intrinsic motivation.
Value Congruence: Differences along the Nonprofit / For-profit Organization Line
Academics have examined the relationship between the espoused values of an organization and the values held by its employees in great depth. The relationships between this employeeorganization value congruence and several outcomes such as job satisfaction, employee turnover, and performance outcomes have been established. However, one aspect of value congruence that was still not well understood was how the type of ownership of an organization (nonprofit compared to for-profit) affects this degree of congruence. A lack of consensus and the failure of the emergence of a dominant theory have encouraged calls for further study by academics such as Ren (2013). In response to this call, this study aimed to analyze the relationship between employee-organization value congruence and the nonprofit/for-profit organization line by comparing the espoused values of certain organizations with the values held by their employees. Given the lack of previous evidence, it was hypothesized the organizational and employee values would be more strongly correlated within the nonprofit organizations because of their socially responsible nature. This hypothesis was tested by administering a modified version of the Rokeach Value Survey to employees of for-profit and nonprofit organizations and then comparing these results to the values that were officially endorsed by the organizations within mission statements and other official documents. This study contributed to the understanding of organizational behavior between the two types of organizations by providing empirical evidence of the patterns of value congruence across organizational ownership types and helps to provide a clearer foundation for future research. This study also provides a clearer understanding of value congruence to practitioners and will aid them in using value congruence as a source of intrinsic motivation.