Define and discuss terminal and instrumental values, using examples

Noted values researcher Milton Rokeach identified two types of values: terminal and instrumental. Terminal values reflect our long-term life goals, and include prosperity, happiness, a secure family, and a sense of accomplishment. For example, people who value family more than career success will work fewer hours and spend more time with their kids than people whose values put career success first. Of course, this does not mean that strong family values prevent having a successful career.

David Neeleman, CEO of JetBlue, established personal rules to allow him to spend time with his family. He keeps weekends as free as possible, tries to make it home every night to spend quality time with his family, and schedules vacations when his kids are out of school. He feels that following these rules has also had a positive effect on JetBlue's performance.

Terminal values can change over time depending on our experiences and accomplishments. When a career-oriented person sells her business for a lot of money, her prosperity goals may be reached and family may then become most important. One way to rank your most important terminal values is to ask yourself, "If I can't have everything I want, in twenty years what would I be most disappointed with not having?" The answer can often clarify tough choices about how to prioritize terminal values and how to divide time among pursuing different outcomes including work, family, and personal interests.

Instrumental values are our preferred means of achieving our terminal values or our preferred ways of behaving. Terminal values influence what we want to accomplish; instrumental values influence how we get there. Honesty, ambition, and independence are examples of instrumental values that guide our behavior in pursuit of our terminal goals. The stronger an instrumental value is, the more we act on in. People who value honesty behave more ethically in pursuing the terminal value of prosperity and a sense of accomplishment than do people with a lower honesty instrumental value.

A CEO's instrumental values have a strong influence on his or her organization's culture and processes. There are six primary values that tend to influence managers' behaviors and choices and that are thus important to understanding managerial behavior:
1 . Collectivism: concern for a family or social group as opposed to oneself
2 . Rationality: valuing fact-based and emotion-free decisions and actions
3 . Novelty: valuing change
4 . Duty: valuing obligation, loyalty, and the integrity of reciprocal relationships
5 . Materialism: valuing wealth and tangible possessions
6 . Power: valuing control of situations and other people.

Managers with different levels of these six values behave differently in setting and pursuing organizational strategies and goals. Hiring managers with values consistent with the organizational culture and values can improve their fit with their jobs and with the company and improve their job performance.

Leaders of Oregon's Full Sail Brewing have strong values around environmental responsibility. The brewery used reclaimed and recycled building materials in building a cannery, uses energy-efficient lighting and air compressors, and adopted a four-day work week to reduce water and energy consumption by 20 percent. It also operates an on-site wastewater treatment facility.