The Essay Explores HRM's Role In Organizational Culture.

Questions:

By the end of this module, you will:
•     Be able to situate the study of HRM within the context of the employment relationship.
•     Have an understanding of HRM within the context of organizational theory and of the ways in which organisations change and evolve.
•     Be able to critically examine contemporary theories of HRM.
•     Understand current trends in labour management in the light of current HR theory

Importance of Organizational culture

Human resource management is one of the most essential pillars over which the organization stands. It is the process of managing the most important assets within any business which are the human resources. This predominantly includes all the employees that are associated with the business. The efficacy of the human resource management within any business has a direct and evident impact on the organizational performance, levels of employee satisfaction and rates of employee retention within the firm (Armstrong & Taylor, 2014). Businesses invest heavily in ensuring a competent HR strategy in place. Employee working in the organization form the basic crux of the business. Therefore it is imperative for the success of the business to ensure that these employees are managed in a skilled manner.

The HR function of any organization is bestowed upon with tremendous responsibilities. On one hand, some of these responsibilities are measurable and quantifiable like recruitment & selection, maintain high rates of employee retention, performance management of employees, inducting employees as well as training and development of employees (Collings, Wood & Szamosi, 2018). While on the other hand, some of these functions cannot easily be measured. These functions include ensuring employee satisfaction and enabling an optimistic work culture. There has been an ongoing debate regarding the extent to which the HR department of any organization is responsible for the organizational culture that exists within the business. This report aims to understand whether or not the HR function of an organization be held responsible for managing organizational culture and to what extent organizational culture is a crucial aspect of the HR function. There are several different theories and views on the matter and the report aims to throw light on them. To begin with, we aim to understand the meaning and significant of organizational culture. The latter parts of the report will discuss the importance of organizational culture and the role played by the HR function of the business in establishing and maintaining an optimistic organizational culture.

Organizational culture is a critical part of any organization. In fact, organizational culture has been known to be an important factor in determining employee satisfaction (Alvesson & Sveningsson, 2015). There are several factors of the business that combine together to form the culture of the organization. This includes the shared values, beliefs, assumptions that govern how people behave in the organization. These factors have a solid influence on the behaviour of employees in terms of how they dress, how they communicate, how they share knowledge or even how they perform their jobs. The criticality of organizational culture is largely underrated. Organizational culture has a massive impact on every day behaviour of employees.

Understanding Organizational Culture

The extent to which employees are satisfied with their current job is also a factor of the culture that roots within the organization (Bolman & Deal, 2017). Culture within any organization is dynamic and constantly evolving. A new employee in any organization learns about its culture through the process of communicating with others as well as observing the practices within the organization. All organizations are different and hence the culture in several different organizations varies to a large extent. In some organizations, culture dictate that people must wear business formals at work, while in some organizations, casual clothing is appreciated. Some organizations are decentralized in nature and as per the culture, all the employees participate in the decision making process. On the other hand, some organizations are centralized and the culture implies that the decision would be made by the top management and would be communicated to all the employees. For the long term success and sustainability of the organization, it is imperative that the culture of the organization is preserved by all its employees. At the same time, if the need be, the organizational culture must be flexible enough to grow and change with the development of the organization.

A large number of these norms and values are shared by the human resource management department during the time of recruitment of an employee as well as in the entire training and induction process. In case the culture of the organization is not being preserved then it becomes the responsibility of the HR manager to identify loopholes and gaps and fill the same. In fact communicating these facets of organizational culture is one of the primary jobs of an HR executive while recruiting employees and inducting them. If the culture of the organization is slowing the growth of the business then it is important that this aspect of the culture is identified and changed. The growth of organizational culture to suit the changing times, industry standards, customer behaviour and organizational policies is essential (Hogan & Coote, 2014). Inducing this change within the organizational culture is also the responsibility of human resource management.

There is an ongoing debate regarding the nature of organizational culture. Some scholars believe that organizational culture just like the organization’s structure is tangible and hence should be effectively managed within the business. On the other hand, some scholars believe that this culture is intangible and indistinguishable from the organization itself. This suggests that culture of the organization is a deeper concept and is symbolic in nature (Danese, 2015). This makes it difficult to manage the culture through conscious efforts. These group of scholars recommend that instead of attempting to manage the organization’s culture, it must be understood in subjective and symbolic terms.

HR Role in Organizational Culture Management

Research states that strong cultures had a fairly positive impact on the overall organizational performance. A strong culture is reflected by a rich as well as complex system of shared values (Beauvais & Scholl, 2016). These can be seen in specific behaviour or employees as well as the rituals as practiced by them. For a culture to be strong, it is important that it is in line with the needs of the business. For example, a culture of open communication and centralization will be effective for an organization within the advertising industry. Such a culture will best foster employee creativity and ensure continued innovation. However, for an organization like the national army, such a culture will be disturbing and will lead to reduced overall performance. Therefore it is important to identify elements of the organization’s culture that would benefit the organization and fit well with the needs of the business.

Another theory to organizational culture suggests that culture within the organization is a product of the group experiences in the organization. There are underlying assumptions within any organization that guide the common sense of employees working in the firm (Brettel, Chomik & Flatten, 2015). These assumptions are reflected in every aspect of the employee’s behaviour. The different views on organizational culture made it imperative for researchers to classify these varied views on the culture of an organization. These views can thus be classified as three main approaches.

The first approach suggests that organizational culture is an external variable and is brought within the organization by its members. This approach suggests that organizational culture is also somewhat reflective of national culture and state culture (Cao et. al., 2015). In terms of the role of the HR to manage the organizational culture, this approach leaves little control to the managers of the organization. The approach recommends that since the organizational culture is reflective of the people and the national culture, there is not much that can be done by the HR managers to control or manage that function.

The second approach suggests that organizational culture is considered to be an emotional or inexpressive aspect of the organization. Organizational values are created as well as transmitted among employees through stories, myths and legends. This approach suggests that the HR managers of an organization can control the culture that persists within the business.

Third approach views culture has both formal and informal aspects of the organization. This approach suggests that organizational culture has a formal side which can be controlled, monitored and managed by the leaders of the business. At the same time, organizational culture also has an informal side which is largely driven by factors like nature of employees, national culture, changing organizations etc. This aspect of the organizational culture cannot be controlled or managed.  

Different Views on Organizational Culture

Human resource management within any organization continues to be one of the primary responsibilities of the business. Effective HRM is the lynchpin guiding the entire organization. The human resource management team within an organization is bestowed upon with several responsibilities including recruiting employees, training employees, inducting employees, managing employee performance, addressing employee grievances, managing conflicts in the business, compensating employees, motivating them and ensuring employee satisfaction as well as long term retention in the business (Bratton & Gold, 2017). Human resource management also plays a significant role in building and maintaining an effective organizational culture. It is the responsibility of every stakeholder of the organization to maintain the organization’s culture but the responsibility for the same must be taken by the human resource management team. This section of the report highlights upon several roles of the HR which directly impact the organization’s culture, its values, beliefs and systems.

The primary facet of the organization’s culture is the flow and nature of communication taking place within the organization. Communication is one of the most important factors that has a significant impact on the organization’s culture. HR team of the business plays a crucial role in determining the flow of communication within the organization (Brewster, Chung & Sparrow, 2016). Certain organizations encourage openness and transparency of communication within the entire firm. Certain organizations adopt closed communication practices. How employees within the organization communicate with each other has a direct impact on the culture of the business. A business with open communication would have transparency in the organization’s culture. Communication also impacts how information flows within the organization. The leaders of the business are largely responsible for the flow of communication that takes place in the organization (Men, 2014).

Organizational structure of the firm or the hierarchy within the organization also impacts the organization’s culture. A flat structure tends to create an informal organizational culture while a complex hierarchy is reflective of a formal and organized culture within the organization. Therefore it can be stated that there is a casual relationships between the organization’s structure and the culture that prevails within the organization (Shafritz, Ott & Jang, 2015). Both the factors are highly intrinsic variables in the overall performance depicted by the organization. A mutual influence has often been postulated between the culture and the structure of the business. The culture of the organization impacts its structure both through its implementation as well as its design. For example, in an organization practicing a strong hierarchy, it is the culture within the organization that ensures that this hierarchy is preserved and maintained. If the culture of the organization permits open flow of information and participative decision making as well as transparent communication then it would be difficult for the firm to maintain its complex hierarchy. At the same time, in a flat structured organization, the members of the organization possess the power, owing to its culture, to create an unsaid hierarchy (Ashkenas et. al., 2015). If the culture imposes the belief of “Organization as a machine” then it is likely that the culture within the business would be highly formal and specialized with functional department.

HR Responsibility for Organizational Culture Maintenance

Similarly, organizational structure also guides the culture that persists within the organization. The structure has a direct impact upon the behaviour of employees on a daily basis. Hence the nature of this impact is twofold. It is the role of the HR to implement an effective organizational structure that suits the nature of the business (Kramar, 2014). Owing to the impact of this structure on the organization’s culture, it can be said that the HR is largely responsible for the management of organizational culture.  

As discussed above, organizational culture is defined as the set of shared values, norms, beliefs and assumptions that are practiced within the organization. It is the primary responsibility of the human resource management team to induct every new employee with these values and beliefs so that they can apply the same and participate in nurturing the existing culture of the organization (Sikora & Ferris, 2014). Induction is the process of making new employees feel comfortable and making them increasingly aware about the organization. It is during this process that employees interact the most with the human resource management team of the organization. Therefore this is the best time for the organization to induct employees regarding the organizational culture. Since it is primarily the responsibility of the human resource management team to ensure effective employee induction, it also clearly signifies the role of the HR in maintaining and managing the organizational culture.

The cultural knowledge possessed by the employees of the business regarding several related stories, myths or legends of the organization also help in shaping the culture of the organization as practiced by employees (Marchington et. al., 2016). It is during the phase of induction that the HR team must share these anecdotes with the new employees and make them aware regarding the organizational culture that persists in the business. The cultural knowledge shared by employees is a significant aspect that drives the culture of the business. The sharing of this cultural knowledge by the HR team with every new employee is the first step to inculcate and introduce organization’s culture in a team of new employees.

Employee motivation refers to the process through which an organization’s management keeps its employees motivated. Motivation of employees is one of the most important functions of the human resource management team within any organization (Kuvaas, Buch & Dysvik, 2018). The steps taken by the leaders of the organization to keep their employees motivated also play an active part in determining organizational culture. Rewarding employees and recognizing them for their efforts is critical to keeping employees motivated (Kumar, Hossain & Nasrin, 2015). Such practices by the HR team also help in building the culture of the organization wherein employees are valued and their efforts are appreciated.

The Role of Communication in Organizational Culture

The level of motivation among employees also positively reflects upon the organizational culture that dwells in the business. Employees who are motivated tend to perform better and improve overall organization’s performance. The employee motivation efforts by the HR team of any organization therefore have a significant impact on the culture of the business (Yoon et. al., 2015). It is fair to say that these efforts by the human resource management team are aimed at improving the overall culture within the organization. This part of the organization’s culture that includes the level of motivation among employees therefore can be effectively managed by the human resource management team within the business.

Certain HR managers introduce internal competitions and rewards to inculcate a spirit of healthy competition within the organization. They are also responsible for effectively managing employee performance. Thereby it is the primary responsibility of the HR management in any organization to ensure that performance of employees is managed in a manner that employees remain motivated. This helps the team in performing to the best of their abilities especially after knowing that their efforts are appreciated by the organization. All of these efforts by the HR team to motivate employees not only ensures improved performance from their end but also assists in building a productive, optimistic and encouraging organizational culture.

Every organization has a set of policies that are established at the inception of the firm. These company policies guide the employees within the organization. These policies include critical elements of the organization like its leave policy, exit policy, work from home policy, zero tolerance policy, behavioural policy as well as a non-disclosure policy. All these policies largely impact the culture that persists within the organization. The primary role of the human resource management team is to create effective policies for the organization. Therefore it is the HR team that is directly responsible for the organization culture within the organization. If the organization has a strict leave policy, then automatically, taking planned and advanced leaves becomes ingrained in the culture of the organization. Similarly, for an organization that has a zero tolerance policy against eve-teasing then the employees would be very careful about how they conduct themselves in front of each other. In fact, several facets of the organizational culture are made aware to the new employees through the organizational policies. Every new recruit of any organization is essentially given a set of documents which contain the details of organizational policies. This is done to make the employee informed and aware about the culture of the place and the right way of going about things in the organization.

The organizational culture existing within any organization is largely driven by the people of the organization. A group of inspired and creative people will drive a culture that is open to learning and new discussion. On the other hand, a group of demotivated and misguided people will create a culture that requires external forces of motivation. One of the primary roles of the human resource management in any organization is recruitment and selection of employees. In fact in the selection process, candidates undergo an interview with the HR executive of the firm. It is the responsibility of the HR to ensure that the candidates recruited for the organization are in line with the organizational culture or can work towards making it better (Chaneta, 2014). This is a crucial step because it is the employees of the organization that form the heart of the business and therefore it is critical that the human resource management team brings in employees which are suited for the organization’s culture. This step largely determines the role of the HR in managing the organization’s culture.   

Employee engagement is the process of keeping employees engaged in the business. Employee engagement activities are a major source of motivation for employees. At the same time, these activities play a significant role in driving the organizational culture within the business (Mone & London, 2018). It has been largely observed that employee engagement activities boost employees’ morale and help them in connecting with one another. These activities ingrain and instil the vibe of stronger team work within the organization. Ensuring employee engagement and thereby improving the organizational culture is therefore an essential function of the human resource management team at any organization.

The advent of technology and the use of social media has also enabled the HR team to introduce innovative ways of keeping employees engaged. Engagement surveys, organizational events and several one on one discussions can keep employees engaged within the business (Albrecht et. al., 2015). They will also assist the HR in understanding, identifying and addressing issues faced by employees thereby leading to an improved organizational culture.

Organizational culture cannot be built or changed overnight. It takes consistent efforts from several organizational stakeholders to build and maintain the culture within an organization. It is important to note that even though it is the human resource management team that takes the baton for organizational culture within the business, the other stakeholders of the business are also responsible towards the culture that persists in the organization and the industry at large.

Employees are primary internal stakeholders of the organization. The employees working with the organization are largely responsible for the culture that exists within the firm. For example, HR policies guiding the organization are established by the HR team but it is the inherent responsibility of all the organization’s employees to abide by these policies. The HR team can organize events and conduct activities to ensure employee engagement but employees of the business must also participate actively in these events so as to ensure effectiveness of these activities.

The effectiveness of an employee is governed by his or her sense of ownership towards the firm, leadership abilities, communication skills, team building skills as well as organizational performance. Therefore employees must take initiatives and try to create an efficient culture within the organization through communication, team building and initiation (Glauser & Holland, 2016). Older employees must take the time and effort to make new employees feel comfortable. Employees must themselves indulge in productive discussions and work together in effective collaboration. Such efforts from the employees would assist them in creating a culture of change, leadership and growth.

Similarly, the leaders of the business including the top management and the board of directors also have an active role to play in maintaining the organizational culture within the business. The leaders must lead by example and create a culture of open communication. It is also the responsibility of these leaders to encourage employees to share their opinions and demonstrate enhanced participation within the organization. The leaders must also ensure that their employees enjoy a work life balance and yet remain motivated to effectively perform in the organization. Leaders must also create a spirit of healthy competition among employees and reward or recognize performing members as a sign of valuing their efforts. Such efforts by the top management build an optimistic culture within the organization which not only leads to improved performance but also results in increased levels of motivation among employees.

Conclusion

Organizational culture persisting within any organization is one of the most important factors that impacts levels of employee motivation, employee retention, employee’s performance as well as employee satisfaction. Therefore it is highly important the organizations put efforts in building and maintaining a solid and strong organizational culture which is in line with organizational goals. This report has thrown light upon the role of the human resource management team within any organization in building the organization’s culture and maintaining it.

Human resource management team within any organization is bestowed upon with the responsibility to managing the most important assets for any business; its people. The HR team is largely responsible for the organizational culture that exists in the business. There are several efforts that the HR team puts in order to ensure a strong culture within the work environment of the organization.

To begin with HR team ensure that it recruits candidates within the business whose personalities are in line with the culture of the business. Secondly, they device organizational policies that largely guide the behaviour of employees within the organization. They also ensure that these policies are implemented in an effective manner. Upon on boarding employees, HR team is responsible for inducting the new employee with the organizational culture. Besides this too, HR of the business puts several efforts in creating a strong culture by incorporating high levels of employee engagement, ensuring employees are motivated and encouraging communication within the organization. All these efforts by the HR form a solid foundation to the culture of the business.

However, it is important to note that even though the HR is primarily responsible towards maintaining an effective organizational culture, the other stakeholders of the organization also play significant role in the same. The employees and the leaders of the organization are also important factors within the ecosystem of the organizational culture.

Managing organizational culture of the organization is that part of the business that is not entirely tangible or measurable in nature as compared to other functions of the HR. However, this report throws light on several functions of the HR team that directly impact the organizational culture. Hence managing organizational culture is a critical function of the HR; one that drives organizational performance as well as employee satisfaction.

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