Human Resource Management and Organizational Culture

Human Resource plays a crucial role in the sustenance of an organisation’s culture. An organisation runs with the effective contribution of the employees. Hence, recruiting the right candidate for a particular profile within the organisation; training him or her adequately as per the job requirements; mentoring the candidate with regards to facing risks and challenges and adapting leadership roles; counselling him or her under stressful situations and finally evaluating the candidate’s performance and motivating him or her for achieving better, are few among the major roles that an HR manager has to play in making an organisational culture fruitful (Smollan 2015. Recruitment and selection are two such job roles that are mostly identified with the human resource. The success of an organisation is hugely dependent on how satisfiedly an employee discharges his or her roles. To ensure their satisfaction, the Human Resource division of the organisation has to take care of a number of factors like employment conditions, compensation and benefits, acknowledgement of their exceptional performance and offering leadership roles. All such factors in isolation or in combination not only aids in engaging the employee positively with his or her duty but also instils the organisation’s core values and principles in them. A positively motivated employee who values the organisation’s objectives and respects its cultural beliefs, ethics and code of conducts becomes an asset for the organisation and takes it to newer heights. It is an HR who facilitates such cultural cultivation within the employee by means of definite strategies. Some of these strategies consist of productive feedback, rewarding an outstanding performance or exhibition of exemplary behavioural standards.  Periodically, an HR reinforces the organisation’s culture through strategic development processes and evaluation of needs. Cultural values play a positive role in influencing the thinking of an employee about the organisational initiatives which, in the long run, results in producing improved outcomes. Such initiatives enhances employee motivation, creativity and also help them in maintaining effective work life balance. They learn to co-operate more with the organisation’s strategic changes. Thus, the HR’s contribution in the organisational culture profoundly helps in enhancing employee retention rates, reducing accident rates by making each employee aware of the necessary safety measures, increasing productivity and quality of performance thereby ensuring its growth and sustainability. In the following report four major aspects of Human Resource Management would be discussed in light of their role and contribution in the sustenance of an organisation’s culture. Organizational culture is a collection of values, principles and beliefs that influences the behaviour and expectations of the employees as well as the social and psychological environment at the workplace (Bourland-Davis and Graham 2017). The organizational culture is also a product of several factors such as the history of the organization, the products or services of the organization, the management strategy used, the demographics of the employee, the national culture, the language and diversity of the organization, the organizational values and norms, assumptions of the employees and even the environment and location of the organization. The organizational culture plays an important part in the readiness of change. A positive work culture that is open to challenges and is supported by effective leadership and communication can be more receptive and supportive of organizational change while ineffective management and communication barriers can increase resistance to change (Haffar et al. 2014). The present article aims to describe in details about how the various HR Functions impact organisational culture.

Unit 1: The Organisational Context of HRM

Significance of Organizational Change and Development to HRM Practices

During Module 2 of the Masters Program, several important concepts which are associated with Human Resource Management (HRM) have been discussed, mainly in the context of Organizational Culture, the concepts of HRM and the theories and models of HRM and evidence based policies and practices that are used in HRM. The significance of the background of studying organization was the focus for first unit of the module. Various theories and perspectives can be used for understanding Organizational Behaviour and organizational Culture (Collings et al 2018). A social science perspective can be used to understand how people interact with each other and how they work as a group (Shen and Benson 2016). According to Thompson (2017), the sociological perspectives also help to understand the basic assumptions, beliefs and expectations of the people (or employee) which helps to get a deeper insight about their behaviour (or the organizational behaviour). This understanding can be used to develop conceptual framework of how people behave and how they can be best managed in order to maintain a professional and productive environment. Additionally, Sociological perspectives can help to understand the causes of conflicts and can be used to mitigate and manage conflicts (in workplace). Such aspects show how sociological perspectives are necessary for HRM (Hollenbeck and Jamieson 2015).

Significance of Organizational Structures was also outlined under unit 1 of Module 1, during which the significance of understanding organizational culture for HRM were discussed. Also, discussed was how classical management theories were used for the Organizational Structure. The classical theory mainly supposes that both the managers as well as employees are rational beings and are capable to taking the right and responsible decisions which can maximize the efficiency of the organization (Farnham 2015). Organizational culture is a collection of values, principles and beliefs that influences the behaviour and expectations of the employees as well as the social and psychological environment at the workplace (Bourland-Davis and Graham 2017). Outlined below is how the organizational culture is significant for the HRM:

• It helps the HRM to understand how employees interact with each other in the workplace and how they can be motivated and their loyalty to the organization maintained.
• By setting up a good organizational culture, values of respect and equality can be maintained for all employees.
• Haling an inclusive work culture can increase solidarity among the employees which can help to reinforce their identity as a part of the organizational workforce.
• A safe and respectful and inclusive work culture can also help to promote better employee satisfaction and retention of the employees.
• Workplace culture also helps to provide a sense of direction for the employees through which they can be guided on how to maintain a productive as well as safe and inclusive workplace culture.
• Through a productive and positive work culture, the productivity of the individuals and teams can be improved and thus help to promote organizational growth.
• By understanding the values, practices and beliefs of the organizational culture, the Human resources can develop policies for recruitment and training, training and development, compensation administration and performance management.

(Lee et al. 2016; Bourland-Davis and Graham 2017)

In section 2 of Unit 1, significance of Organizational Change and development to the HRM practices were discussed. The aim of the unit was to help to understand the various sources of changes in the organization, understand the management approaches that can help organizational change practices, approaches towards employee training programs that can help organizational change and organizational development and how culture can influence readiness for change. Discussed below are these aspects:

Sources of change in the organization: Change in an organization can be induced through several factors and sources, which can be both external as well as internal such as technological changes, political and social changes, change in organizational complexity and size, globalization, regulation from governing bodies, economic changes and fluctuations, change in ownership and leadership, culture of the nation and local regions (Smollan 2015). These factors act as stressors which can increase the need for the organization to change and adapt to. Moreover, changes can also be planned as well as emergent (such as growth of the organization, transition and transformation of business) which can take place as the result of the regular operations of the organization and strategic management decisions (Cameron and Green 2015).

Sources of Change in the Organization

Management approaches for organizational change: In order to support organizational change and organizational development, different management styles can be used by the HRM such as stabilizing the process of change, cheerleading towards the change, analyzing the organizational culture and persuade the employees towards change (Smollan 2015).

Approaches towards employee training program: Various training programs can be considered which can help the employees to increase their skills and competencies and supporting their career development. Training programs such as workshops, mentorship programs, and internal training programs, external certification training and paid training programs can help the employees to develop their skills (Cameron and Green 2015).

Effects of culture on readiness for change: The organizational culture plays an important part in the readiness of change. A positive work culture that is open to challenges and is supported by effective leadership and communication can be more receptive and supportive of organizational change while ineffective management and communication barriers can increase resistance to change (Haffar et al. 2014).

During Unit 2, introduction was given on the significance of employee relationships, concepts of HRM, the goals of HRM as well as the challenges faced by HRM in the management of an organization. These factors help to develop understanding how through effective employee relations the HRM can help in the development of the organization and usher organizational change. Additionally, understanding the goals and challenges of HRM can prepare the HR personnel to conduct their job in a more efficient and effective manner (Sanderson and Mujtaba 2017). Discussed below are these factors:

The contractual relationships are based on temporary contracts which have a fixed and pre planned termination date. After the termination the relationship with the employees end and needs to be renewed if the relation is to be continued. This type of relation also does not have a clear retirement date and the terms of the contract dictate the length of the relation. Responsibilities of the organization towards contractual employees also differ from permanent employees, and contracted workers are often considered as temporary members of the organization (Meijerink et al. 2016).

HRM helps to induce flexibility and adaptability of the organization to any environmental change through strategic decision making. Additionally, HRM practices also help to maintain quality of performance of the employees. Thus HRM can be understood as a collection of management strategies, ideas, models and framework which helps in the better engagement of the employees with the organization, helping them to increase their productivity, upholding the organizational values and provide the employees a medium to raise any concerns they might have regarding the organizational management (Beltrán-Martín and Bou-Llusar 2018).

The roles and policies of HRM are influenced by several goals and objectives which ultimately help in the growth of the organization. The main goals and objectives of the HRM have been discussed below:

Increasing productivity of the employees: One of the main goals of the HRM policies is to support and foster development of the productivity of the employees to achieve better organizational performance by maintaining an effective organizational environment. The HRM also aims in the development of the skills and competencies (through strategic training and development of the employees) in order to promote employee growth and their capacity to increase their productivity (Veth et al. 2017).

Management Approaches for Organizational Change

Increasing Organizational Flexibility: This is an important goal of HRM which can allow an organization to adapt to changes in the organizational environment and address organizational challenges by promoting flexibility within the workforce. The aim of the HRM to support organizational flexibility also helps to promote job satisfaction and better retention of the employees (Beltrán-Martín and Bou-Llusar 2018).

Supporting Social legitimacy of the employer: The HRM also has an important objective to support the social legitimacy of the employer by helping the organization to engage in activities related to social welfare as a part of the corporate social responsibility (Veth et al. 2017).

In section 4, various challenges faced by HRM in the management of employees and achieving the key goals and responsibilities have been discussed, which have been outlined below:

Scarcity of Labour and Employee Turnover: This is a significant challenge for the HRM, especially for maintaining staffing for skilled job positions and in market where there is a shortage of skilled employees. Also, a poor turnover of employees faced by many organizations is another challenge that causes poor retention of the employees (Veth et al. 2017).

Giving Motivation to the employees: Every employee can have different expectations, drives and objectives because of which, developing strategies to motivate all employees is a challenge for the HRM since it is not possible to address the diverse needs and expectations of all the employees in order to motivate them (Dumont et al. 2017).

Tension caused by organizational change: During organizational changes, employees often face significant tension and stress caused by an uncertainty about the organizational directions, their change in roles and adapting to a change in the working process. This can be a tension for the HRM since they are expected to help in the process of organizational change as well as understand the perspectives and challenges faced by the employees and help to reduce those (Dumont et al. 2017).

Planning effective training and development programs for employees: The skills and competencies of each employee in an organization can be unique and varied, due to this, designing training program that can suit the individual skills and competencies as well as professional needs of the employees can be significant challenge (Veth et al. 2017).

Implementation of HR Strategies in a business is usually based on certain models related to both product life cycle and employee welfare that operates in unique ways (Collings, Wood and Szamosi 2018). The organizational culture is also a product of several factors such as the history of the organization, the products or services of the organization, the management strategy used, the demographics of the employee, the national culture, the language and diversity of the organization, the organizational values and norms, assumptions of the employees and even the environment and location of the organization (Lee et al. 2016). Because of these factors, it is vital that HRM should consider the organizational culture in its policy making and decision making practices. Each organisation adapts policies that is related integrally to its business structure (Dumont, Shen and Deng 2017). The best practices in the industry is dependent on the combination of core HRM policies and the market analysis that has the potential to generate the desired organisational outcomes (Babnik 2014). These advocated policies are in relation to recruitment, training and development and compensation and benefits that aim to raise the bar of employee skills, their motivational levels and flexibility in accepting challenges and risky tasks. Few aspects of such best practices would be:

• Presenting an approach of multiskilling orientation
• Involving employee programmes to achieve formal work teams
• Implementing suggestions to achieve higher productivity and quality processes through job rotation
• Demonstrating strategic assumptions of work ethics that can ensure the workforce to attain a standardised quality and effectivity

The most important point that critically attributes the best practices of HRM consist of carefully prescribing to these policies and presenting it before the resources in an absolutely unambiguous format which can aid in better understanding and subsequent implementation of these policies. The decisions pertaining to work culture that is taken at the highest level of authority needs to be cascaded down to the junior most level in an unchanged format so that the entire workforce gets the necessary validation that their contribution to the organisation is valued (Dumont, Shen and Deng 2017).

At each level of organisational development, corresponding HR activities undergo considerable modifications that relates to the organisational requirement. It includes:

Initiation: In an entrepreneurial venture when the organisation is yet to make a mark, the HR functions are usually limited to basic administration like recruitment and compensation. This is due to the fact that most of the higher level resource activities are undertaken by the CEO or the business founder themselves.

Functional Growth: With gradual expansion, an enterprise tends to become more organised and competent with respect to handling the growth of its market structure. The HR actively starts assisting the line managers in the vital recruitments and follows it up with employee benefit management.

Controlled Growth: As the organisation attains stability and no longer assigns growth as one of its topmost priority, the corresponding HRM activities become much more centralised around productivity and cost effectivity of its resources.

Functional Integration: The organisation aims towards diversification at this stage whereby the HR managers co-ordinate the functions of different departments to assess their performance in order to make the newer ventures of diversification stronger and more successful. Policies in relation to training, compensation and rewards are revised to fit the newer requirement (Chen, Sparrow and Cooper 2016).

Strategic Integration: In this stage, the HR department looks critically into the internal aspects of adaptability, flexibility and integration across the other departments like accounting and operations to align them with the business goals and objectives (Chen, Sparrow and Cooper 2016).

Resource-Based View of Organisational Economics

This model has been approached to as an alternative of the general strategic operative model discussed above in the previous section. As viewed by Chen, Sparrow and Cooper (2016), a firm is expected to analyse its internal competencies to find the perfect job fit between its regulator policies and external environment. Operating somewhat differently, it seeks to attain competitive advantage in deploying resource, including human resources, in a manner that is different from that of its competitors (Cascio 2014).

As argued by Al-Bahussin and El-Garaihy (2013), an organisation is able to sustain its competitive advantage only when its employees feel motivated enough to continue their service in that organisation and contribute effectively in its productivity. Hence employees must be considered as important internal stakeholders who needs to be treated with fairness. The relationship between an employer and an employee must be built on the concept of balance whereby employers need to assess the possibilities lying within the capable reach of an employee to discharge a particular job prospect (Cook 2016). If employees are pressurised towards achieving greater targets through inadequate compensation, it leads to sheer demotivation and inferior performance level. In such cases, employees usually suffer from low morale that eventually leads to resignations. By adopting the stakeholder approach, the organisation can lead to greater motivation among the employees, higher commitment towards the organisation, quality outcome and reduced attrition. The line managers enforcing organisational policies should be giving periodic feedback and training to the employees, based on those feedback (Dermol and ?ater 2013). It requires strong commitment on part of the line managers to ensure that HR policies are correlated with high level of organisational performance ensuring as well that employees are treated conveniently in a consistent manner (Hollenbeck and Jamieson 2015). The employees need to be constantly reminded of the organisational goals and their accountabilities in achieving those goals. They also need to be proactive in their participation and with the desired behaviour must make it a point to apply strategic approaches in issuing their respective deliverables.

HR policies and strategies are formulated with regards to their respective impacts on the organisation’s employees and how much competent they are in discharging their respective responsibilities. HRM strategies are mostly referred to as the third order strategy which follows the pathway for corporate and business level outcomes (Bourland and Graham 2017). To achieve this properly, the organisation divides the short term goals and the long term goals in order to avert any uncalled for crisis. In this way, the firm seeks to preserve its competitive advantage. The types of roles performed in an HR Function consists of:

Advisors: the form the group of internal consultants whose primary function consists of supporting the line managers and other junior employees. The consultation tend to become the preliminary part of long term strategic outlines.

Service Providers: They form the on-call personal attendants mainly supporting the line managers.

Regulators: They mostly take care of the formulation of industrial rules and regulations and serve to implement them as and when required in certain required situations.

Change makers: They mostly help in processing the strategic agendas issued for organisational benefits and focus on the reality driven aspects of business performance to elicit motivational power within the employees so that they can deliver the desired outcomes (Beltrán-Martín nd Bou-Llusar 2018).

Unit 4 topic: Evidence on Policy and Practice

According to managerialist argument, it is the low trust work system that serves to affect the relationship between effort and reward (Cameron and Green 2015). Employees, in general, strives to perform to their level best and adapt to novel and unpredictable situations in the work environment. The work systems that are applicable in teams within an organisation are tailored in line with the production and manufacturing based on the initiative taken by employees to produce innovative results (Iriana, Buttle and Ang 2013). Team-working refers to the system of division of labour implying autonomy in each division so that each team member can use their full potential to achieve the desirable team outcomes. To make it more effective, the functions are allocated in such a way that it forms a rotational design among the members, each allotted with a part in relation to the other. In some situations, two teams can work alongside. Managers, in such cases, allot a considerable amount of control to the members so that they can take the technical decision more competently while discharging duty in their respective disciplines (Cook 2016).

The channels of communication form yet another important aspect in relation to the work practices and policies. Each of these policies need to be appropriately communicated to the relevant departments so that they can take charge of their responsibilities with enhanced coherence to the context and better approach towards problem solving (Armstrong and Taylor 2014). The HRM objectives, if carefully studied are mostly aimed at organisational growth through employee’s knowledge and skill development (Ali and Patnaik 2014). This often leads to redistribution of power within the organisation that consequently leads to organisational restructuring. It depends on the following factors like:

Human Capital Advantage: The firms are expected to develop strategies and policies that serve to attract and retain the exceptionally talented resources.

Human Process Advantage: It relates to the potential possessed by the HR Systems that yields competitive advantage to the form against the competitors (Ali and Patnaik 2014).

Trade Unions influence the HR policies of the organisation in a way that even the strong institutionalised positions have to rearrange their strategies in relation to agreements or disagreements in collective bargaining. In recent times, the impact of Trade Unions have, however, weakened due to rapid political and economic developments (Al Saifi 2015). The management-union relationship strives on the continuum of strength of the industrial establishments. The theory essentially revolves around ‘command and control’ of the organizational processes followed within a hierarchical structure (Hatch 2018). The hierarchical structure also helps to support Bureaucracy within the organization that helps to create a clear division of labour, a clear outline of individual and team responsibilities and maintain focus on organizational objectives. According to Cook (2016) these aspects show how vital it is to understand organizational structure and culture for Human resources management in order to effectively manage the workforce. When conflicts arise in terms of sanctioning employee rights and benefits, the Union’s role integrally comes into play. They pose certain political and ethical propositions by means of achieving outcomes in the employee’s interest (Armstrong and Taylor 2014). HR management in industries of different nations take different stands with respect to the trade union policy. It is largely dependent on the external and internal factors of how these stands would be viably influencing the policies of the organisation. Therefore, HRM cannot be thought in isolation from the industrial relations affecting the organisation.

Human Resource Management is a set of management practice that helps to manage the human resources or human capital of the organization. The HRM practices help an organization to integrate the workforce as a single functioning unit and helping to promote strategic management of the organization. It helps to promote commitment of the employees towards the organizational objectives, as a result of which it helps in the development of the organization and increase in productivity (Marescaux et al. 2017). As observed by Adonisi (2013), in most of the capitalist economy, the small and medium scale enterprises are crucial factors that drive the economy towards betterment. Relationship between the organization and employers with the employees can be categorized into two main types such as employment and contractual. Employment is a long term relation between an employee and employer in which the employees continue their participation and engagement with the organization until and unless they are terminated, resigned or retired from the position. Employment makes the employee a part of the organization and the organizational policies have to consider their health, wellbeing and welfare (Lee et al. 2016). The employees also have a continued and uninterrupted engagement with the organization and can therefore be considered as permanent members of the organization (Sanders and Yang 2016). SMEs are different from the larger firm and way less sophisticated in terms of organisational culture. Hence they are less likely to include sophisticated programmes for recruitment, selection, training and engagement. Research evidence suggest that the HRM policies in Public Sector Enterprises attempt to manage performance of its workforce through various sub units of managements which are singularly owned by the State and mostly referred to as nationalised firms (Anitha 2016). The HRM policies in such firms are not usually directed towards profit making but towards providing quality service. Therefore HR practices need to examine the cost of labour productivity in relation to attaining and maintain such objectives (Brewster 2017).

Conclusion

To conclude the following discussion it can be stated that Human Resource Management is a set of management practice that helps to manage the human resources or human capital of the organization. The HRM practices help an organization to integrate the workforce as a single functioning unit and helping to promote strategic management of the organization. It helps to promote commitment of the employees towards the organizational objectives, as a result of which it helps in the development of the organization and increase in productivity. The channels of communication form yet another important aspect in relation to the work practices and policies. Each of these policies need to be appropriately communicated to the relevant departments so that they can take charge of their responsibilities with enhanced coherence to the context and better approach towards problem solving. The HRM objectives, if carefully studied are mostly aimed at organisational growth through employee’s knowledge and skill development. A firm is expected to analyse its internal competencies to find the perfect job fit between its regulator policies and external environment. Operating somewhat differently, it seeks to attain competitive advantage in deploying resource, including human resources, in a manner that is different from that of its competitors. The most important point that critically attributes the best practices of HRM consist of carefully prescribing to these policies and presenting it before the resources in an absolutely unambiguous format which can aid in better understanding and subsequent implementation of these policies. HR policies and strategies are formulated with regards to their respective impacts on the organisation’s employees and how much competent they are in discharging their respective responsibilities. HRM strategies are mostly referred to as the third order strategy which follows the pathway for corporate and business level outcomes. The decisions pertaining to work culture that is taken at the highest level of authority needs to be cascaded down to the junior most level in an unchanged format so that the entire workforce gets the necessary validation that their contribution to the organisation is valued. As the organisation attains stability and no longer assigns growth as one of its topmost priority, the corresponding HRM activities become much more centralised around productivity and cost effectivity of its resources.

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