Final answer:
Employees exhibit enacted values based on daily observations within an organization, which are the norms and behaviors actually followed, as opposed to espoused values that represent an organization's ideal culture.
Step-by-step explanation:
The values that employees actually exhibit based on their observations of what occurs on a daily basis are known as enacted values. Enacted values are the norms or standards of behavior that employees adhere to within an organization, which can be directly observed through their actions. These differ from espoused values, which are the declared set of values and norms that an organization professes to follow, but may not always reflect in employees' daily behavior.
In contrast, espoused values represent an ideal culture that a company or an organization claims to uphold. However, the day-to-day actions of employees might not always align with these ideals due to various reasons. For instance, if an organization espouses a culture of teamwork but employees are often seen working in silos without collaborating, the enacted values concerning teamwork are clearly different from the espoused ones.
The concept of enacted values is crucial in understanding the real culture within an organization, as opposed to the ideal culture promoted by espoused values. These real values and behaviors can significantly impact how an organization functions and its overall success.