AN EMPIRICAL VIEW ON VALUE THEORY AND VALUE-BASED MANAGEMENT

The main economic purpose of a business organization is to create value for its owner. The value concept is a complex notion that has developed alongside human history and reflects the concerns of human society through time. As a result of the value theory, the management of value has also emerged as an essential and accompanying activity. Value-based management emerged as a management philosophy rather than a management method. It consists of a change in mindset from managing resources or output quantities to value creation. The challenge is to identify or create the value flows and act upon these within the specific business organization to have proper value management. Value creation and value management will define the business organizations in the economy of the 21st century, which is governed by knowledge and information. The present paper focuses on the history and development of the value concept and the history and development of the management of value through value-based management.