Abstract

Abdus Sattar Abbasi1*, Kashif ur Rehman2 and Ommar Hayat Abbasi3

Value crisis in corporate world around the globe significantly increased the need to find new management paradigm to deal with existing ethical dilemma. This study investigates inherent flaws of the contemporary corporate management in general and Value Based Management (VBM) in particular. This study identifies that weaknesses of current corporate management stem from two main factors first lack of values and ethics and loss of leadership integrity. This study investigates correlations among independent and dependent variables by observing an existing conditions or state of affairs in non-contrived settings. These correlations are explained through hypotheses testing. A questionnaire containing 50 items was developed and validated. Study was carried out by taking a sample of 302 managers from manufacturing and service sectors of Pakistan. Data was processed and analyzed in SPSS. Results of the study indicate that there is significant and positive relationship among values and ethics, managerial performance and organizational value. Findings suggest that management by example is a better management paradigm to curb many ethical ailments of modern enterprise. This study developed ‘Islamic VBM Score’ to assess VBM practices in an organization from Islamic perspective. Furthermore, results suggest that Islamic work ethics take the organization towards ‘total value based management’ through ensuring value for shareholders, employees, customers and society at large.