Organizational Culture and Strategic Human Resource Management

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Organizational Culture and Strategic Human Resource Management

Introduction

Differentscholarshavegiventhetermculturedifferentmeaningsaccordingto thecontext in which itis applied.Peoplehavedifferentcultures from their area of origin, butorganizationstend to havealmostsimilarculturesgoverningtherelationship between theemployerandemployeesor among theemployees themselves. Carla definedculture as interactions, behaviorpatterns affective understandingand cognitive constructs which are acquired through the socialization process. Thesepatternsare used in distinguishing members of differentcultures through thewaytheybehave. Lederach (1985) statedthatculturerefers to shared schemesandknowledgeobtained from a set of people through interpreting, perceiving, respondingandexpressingsocialrealities.

Consequently, Organizational culturerefers to howpeople from a givenorganizationare required to behaveconcerning their employmentand their code of behaviorconcerningtheoperationsandactivitiescarried out in anygivenorganization. Thesecodesgiveemployees a sense of belonging oridentity, appointingandaligning a commonview which enables them to actaccording to suchcultures (Bates, Amundson, Schroeder, & Morris, 2010: p. 1565). Differentorganizationshavedifferentways of maintaining organizational cultures. Most of thecompaniesadopt an impressiverate of retainingemployees with a high level of satisfaction as a way of maintainingstrongcultures in the workplace. These are important towards thesuccess of thebusiness as wellbehavedandmotivatedemployees are moreproductivecompared to thosewho are non-motivated in a givenorganization. Thesestrong organizational cultures can be maintained through thefollowingways:

Responsive to theneeds of an employee; despite thecompany catering forthepensionschemesandthesalary of theemployees, itis alsorequired to respond to otherinterests of theemployeessuch as; lifestyle benefits, healthy, workingconditions, leisureandthestudydays. Thismotivatestheemployee to maintaingoodstandards of behaviorand in turnincreases their output.

Ongoing development; thiscomprises of thedevelopments that are carried out in thebusinessorganizationsuchhavingtalentsday mentoring schemes, which offerstraining to employees on howthey can improve their services. Thismakestheemployeesfeelthat their futureis beinginvested in andthatthecompany is supporting their professionalandpersonalgrowth.

Social calendar; thisinvolves a wellbalancedsocialinteractionregardingbusinessactivities, which creates a goodmorale. Itinvolvessocialhealthyandsocialevents, which are carried outside theofficesetting, which creates an inter-team bonding and a buoyantatmosphere which is a form of motivation to theemployees.

Honest feedback and openness; employersare required to create an environment that brings an openculture which makesemployees in everystageshare their suggestions, ideasandconcerns. Whenstrategies of a well structured feedback are put in place, businessowners can as wellmonitorthe levels of employees’ satisfactionand be able to alleviateanyarisingissue.

Innovative approach; thiscomprises of theways a businessconducts its activitiesandthewaysitrelates with themembers of staff. Thecompany should strive to portraygoodexamplesandallow its employees to attendindustrialevents. Thismakessurethattheybecomeupdated with the c trendsandadvance in their area of work.

Committed leadership; leadership is a veryessentialcomponent in anygivenorganization; this should involveallteammembersespeciallythose in themanagementsector. Companyculture can only be maintained through havingcommitted, clearandinclusiveleadershipwhereallmembersare represented.

Importance of Maintaining Organizational Culture

Therecentpast, there has developed a highconcern on howbusinesseshavechosen to carry out their dailyoperations. Theculture of an organization in theleadershipconcept has become a majorcomponentused by leaders to come up with a dynamicorganization.Leadersdoignitetheprocess of cultureformation through imposing expectations andassumptions on their subjectsorfollowers. Schein (2011: p. 370) statedthat as companiesstabilizedue to their success of completing its primarytasks, assumptions of leadersbecomesshared which facilitatesthe socialization process of newmembers. Thisresult to thesuccess of the organizational leaders’ consistency, givingclearsignalsregarding their priorities, believesand values.

Whenethicalculturesare promoted through leadership, leadersbecomesuccessful which facilitates organizational growth, maintainsgoodservicesthatthesocietydemands, ability to solveissues before theyend up becomingseriousdisastersandbecomecompetitive against their rivals. Schein (2011: p.374) alsodiscoveredthat corporate cultures are veryimportant on mattersconcerningdecisionmaking in theorganization. Hestatedthatifdecisionsare made without consideringtheforces of theoperativeculture, it may result to undesirableand unanticipated consequences. This is due to complexissuesconfrontingleaderswhendeciding on thebestmethod of generating theachievements of theorganizationwhenfaced with complexenvironments. Their success will depend on theunderstanding, andtheknowledgeleadershaveconcernedthe organizational culture. Thismakes them predicttheresults of their decisions by preventinganticipatedrepercussions. Arguably, an organization that maintainssuchstrongculture can alsorealizethefollowingbenefits.

Enhanced corporationandmutualtrust

Development of an informalcontrolsystem within theorganization

Assistingworkers in modifying their behaviors through providingbehaviors, which are justifiedSchein (2011: p.373) alsocharacterizedtheculture of an organization in three levels. Thefirst level consisted of artifacts andbehavior levels which are mostvisible as they are always around us. Such an observablecultural level consist of an outwardmanifestationsbehaviorpatterns of culture which can be seen in thephysicallayout of dresscodes, workenvironments, levels of technology, behaviorsandattitudes of people. Thesecond level comprised of the organizational values that determinebehaviorand are unobservable which are different from the artifacts andphysicalbehaviors. Theygivethedifference between operatingvaluesandthestatedvaluessuchvaluingcustomersandqualities. Operatingvaluerefers to actualmanifestation of truevalues in force. Schein (2011: p.373) emphasizedthatforbetterunderstanding of culture one has to getthedeeper level of beliefsandassumptions. Therelevance of culture is thelearnedbeliefs, valuesandassumptions which are takenforgrantedandshared as thecompanybecomessuccessful.

Themost challenging issueconcerningthe organizational culture is whetherthey can be changed. Some of theseculturesare maintained, createdandtransformed by leadersorthepeople. Hartman (2006) statedthatculturecomprises of laws, history, language as well as systemsandrules, informalandformalpractices, ritualsandbeliefs. However, ethics of an organizationoperates on thewholemoralculture of thebusinessorganization. Schein (2009: p.109) recommendedthefollowing five embedding primarymechanism which can be used by leaders as majortools to teachtheorganizationstheylead on how to think, perceive, behaveandfeel from their ownunconsciousandconsciousconvictions.

Leaders’ attention on a regularbasiscontrolandmeasures: organizational leadersandfounderscommunicate their beliefs, valuesandpriorities based on wherethey are paying their attention. Their overtimemeasureandemphasizes can lead to a greatereffect on theculture of theorganization. Schein (2009: p.110) statedthatsuch a processends up becoming a powerfulway of delivering a messageespeciallywhentheleadersportray a totalconsistent to their behavior. Theseleadersconsistency is theone that sends a messageshowing their priorities, beliefsandvalues which is highimportancerather than theactions’ intensity. Northouse (2008: p.370) arguedthateveryleader should have an agenda, proposals, a series of beliefs; valuesissuesandideas which theydesire to discuss which has significanteffects on thevaluestheorganizationexhibits. Schein (2009: p.112) statedthatleaders can applybothnegativeandpositivesignals as tools of capturingthesubordinates’ attention on importantissuesconcerningtheorganization.

Leaders’ reactions towards organizational crisesandcriticalincidents: allorganizationsare bound to experiencecrises which are known to draweveryonesattention in such an incidence.Thewayleadersreact to suchcrises; itgivesmoreinformationconcerningthevalues, cultureandnorms of theorganization (Pacanowsky & Trujillo, 2013: p.130)

Schein ((2009: p.113) quotedthatif an organizationis confronted with crises, thewayleadersandothershareholdersdeals with such a situation, itcreatesvalues, newnorms, workingproceduresandreveals underlying assumptions, which are important. Crisesgenerateemotionalinvolvementandattention to thoserelated to theorganizationmostlyifsuchcrisesthreatentheexistence of theorganization. Whentheorganizationsassumptionsare exposed in such an incidence, the potential is increased to eitherreinforcethecurrentcultureormake a change on suchcurrentculture. In suchsituations, leaders may influencetheculture of theorganizationso as to supportethicalbehaviorsandstrong morals which reinforcescreation of newvalues in theorganization. Suchsituationsgivetheleaders an opportunity to coach, teachand mentor their followers.

Howresourcesare allocated by leaders, statusandrewards: organizationsare required to prepare a budget which is a basictoolused in resource allocation of thecompany, this allocation revealstheleadersbeliefsandassumptions.Ifthe allocation of resourcesis balanced, itimprovestheefficiency of theoperations, createsconsumersatisfactionandincreasesthevalues of thecompany.

Deliberate teaching, role modeling and coaching: when a leaderbecomes a goodrolemodel by showingpersonalexamples, itsends a verybeneficialand a powerfulmessage to the organizational membersmostlyforconsistentandethicalactions. Schein (2011: p.272) statedthat a subordinatederives their personalethics from whattheyperceiveorobserve as ethicalstandardspracticed by theleaders.

Howleadersselect, recruit, excommunicateandpromote: thisgives a significantway through which leaders can transformtheculture of theorganizationand their assumptions through selecting, promotingandretainingpeoplebusinessorganization. Schein (2009: p.115) statedthatleadersand organizational foundersestablishunconsciousculture in theorganization through advancingandhiring anyone, whomtheythought has suchvaluestheydesireandeliminatetheundesirableones. Ifthe corporate culture of thebusinessorganization is corrupt, people in theorganizationtend to ignoretherightthingsandengage in activities which are unethical along their ways of operations.

SHRM on theotherhandrefers to theintentionsandplans of theorganization on howit should achieve its goals through people. It is a process which comprises of three propositions: thefirst one indicatesthatcompetitiveadvantage has a majorsource which is humancapital; secondly, itindicatesthattheorganizationstrategicplanis implemented by people. Finally, is thattheorganization should adopt a systematicapproachthat defines wherethecompanywants to go, andthewaysit should do to getthere. Thesestrategies of HRM definetheplansandintentionsassociated to organizational overall considerationssuch as its effectiveness andmorepreciseaspectsrelated to peoplemanagement, which involves resourcing, employeerelationsandrewards, learninganddevelopment. Itaddresses organizational issues in a broaderperspective which are associated to changes in cultureandstructure, organizational performanceand its effectiveness, matchingresourcesconcerningfuturerequirement, andmanagement of change. Its mainaim is to developcapabilityprocesses, which ensuresthings,are doneeffectively.

Aims of adopting SHRM

Therationale of SHRM is to bring an agreementandunderstanding based on developing an approach of peoplemanagement in the long-term. Boswell (2010: p. 1489) suggestedthat SHRM is meant to achievecompetitiveadvantageusing HRM.

Itprovides a perspective on how to addresssuccessfactorsorcriticalissuesrelated to people, strategicdecisionsmade which have a longtermand a majorimpact on the organizational successandbehavior. Its fundamentalaim is to come up with strategiccapability by makingsurethatthebusiness has a skilled, wellmotivatedandcommittedemployee which bringscompetitiveadvantage.

Theobjective of SHRM is providing a sense of directionalways in a tabulated environment in order to ensurethecompanyneedsandtheemployeescollectiveneedsare met through implementation anddevelopment of coherentandpracticalprogramsandpolicies of humanresource. Holder and Dyer (2008: p.66) statedthattheaims of SHRM should be to provide a unifying framework which is integrative, broadand based on contingency. Storey, Wright, & Ulrich, 2009: p. 108) termed theaims of SHRM thatthey should emphasize on aspects of humanrelations of peoplemanagement, communication, emphasizingcontinuousdevelopment, involvement, workinglifequality, security of employmentandbalance of work-life.

It should attempt to have an achievement of balancingboththesoftandhardelements. Almosteveryorganizationstrives to achieve its objectivesand must ensurethattherequiredresourcesneeded to achievesuchobjectivestheyare usedefficiently. Quinn (2013: p. 96) statedthatwhenthemanagement is taking an extensiveplanning, they should considerthepeople in mind, take an account of theaspirationsandtheneeds of allthe organizational members in thesoftconcept of SHRM.

Importance of having SHRM in an organization

In mostcases, theimportance of SHRM in a businessorganizationbecomeshard to overemphasize them becausehumanbeingsact as thedrivingforces in anybusinessorganization. Thiscallsfortheorganization to havestrategies of implementing a well-thought outandwellplanned SHR ideas (Kang & Kim, 2011: p. 390). This will facilitate coordination andhaving a properchannel of humancapital to ensureincreasedproductivity (Kane, 2006: p. 190). Better strategies on humanresources, which are solid,allowthebusinessorganization to develop a goodrelationship with the organizational workers, andhavepeacefulcoexistenceandmutualbenefits from thehostcommunity.

Awellandproperlyimplemented a plan on SHRM helpstheorganization to attain its goals through theemployeesperforming their necessaryduties which are geared towards achievingsuchgoals. In such a situation, thebenefits of SHRM are seen since departments of humanresourcesidentifykeyareas in theorganization which requiresmanpower (Sarros, Cooper & Santora, 2008: p.150)

. Thesedepartmentsare alsorequired to carry out keysteps on matters of recruitingidealcandidateswho can fillvacanciesandhelpstheorganization to achieve its short-term, long-term goalsand its vision.

Strategic approaches to HRM

Approach based on resources: Barney (2011: p.46) indicatedthataims of based resourceapproach are developingthecapability of achievingthefit between opportunities, resourcesandobtainingvalueaddition from well deployment of resources.

Strategic fit: strategies of humanresource should have an integralpart that containsstrategies of thebusiness which contributes in theplanningprocesses of thebusiness as theyare carried out. Integration is a necessaryconcept in a business as itgivesthe congruence between strategies of humanresourceandthebusiness itself whendone vertically (Barney, 2011: p.48). Theaim of carrying out bothhorizontalandverticalintegration in a business is to ensure a coherentapproachis achieved as far as management of peopleis concerned.

Management at high-performance: thismanagementaims at making an effect on the firm's performance through its people in areassuch as quality, productivity, levels of consumerservices, profits, growthanddelivery of improvedshareholdersvalue. Thismanagementcarries out practicessuch as selectionproceduresandvigorous recruitment, relevanttrainingandextensivemanagement, developmentactivitiesandprocess of managementperformance.

Fewyears ago, researchers andprofessionalshavebeenfocusing on whether corporate culture has anyeffect on thecompanyperformanceand its effectiveness. Kanter (2013: p.22) in his bookManaging Knowledge Workers Unleashing Innovation and Productivity demonstratedthatcompanies with better SHRM outperformedthose with lessprogressivepractices. In illustratingthelink between organizational cultureand its effectiveness, thepropositionfocuseson four majortraits of culture which needs to be examined in order to gettheclearlink between the two. Suchtraits are; involvement, adaptability, consistencyandmission.

Consistencyandinvolvementare mainlyfocused on theinternalcomposition of theorganizationand its mission. Missionandadaptabilityon theotherhandfocuses on howexternalfactors of theenvironmentandtheorganizationare collated. Research has proposedthattheculture of an organization has to be strong, andgivestrategiccompetitivebenefitsand its valuesandbelieveshave to be firmlyheldandwidelyshared (Koch & McGrath, 2010: p.340). Thisproposalis onlymeantifthepurpose of the corporate culture is to improve its effectiveness andthe overall performance.

Althoughpreviousreviewsandstudiesshowthat SHRM has becomegeneralprobably with respect to performanceand HRM, ithas beenmainlylimited to therelationship between organizational performanceand HR practices (Vijayasiri, 2010: p.48). Strategic HRM acceptsfunctions of HR as a strategicimportantpartnerwhenformulatingthestrategies of thecompanyand their implementation through practices of HR. Deley (2009: p.38) adopted a perspectiveview based on resources which emphasized on acquiringcompetitivebenefits through themeans of utilizing organizational resources through employees. Through theresearchfor SHRM of organizational effectiveness, thefollowingareaswereused to determinewhethersuchstrategies are successful:

Outcomes on humanresource, which made an evaluation concerningthebehaviors of the workforce/ employees;

Outcomes of theorganization which are based on quality, productivityandservices;
Outcomes on financial accounting related to profitability andinvestmentreturns;
Outcomes on capitalmarketforpublicorganizations that are, shareholdersreturnsandstockvalue.

Finally, strategic HRM is a veryimportantfactor to be mentioned despite whether there is a significantresearchdoneor not. There is supportive evidence which showsthat there is a stronglink between effectiveness andculture. SHRM fully depends on the organizational culturefor its successful implementation (Denison, & Mishra, 2013: p. 214). Valuation of stylesandviewpointsanddevelopment of ways which are concrete facilitates learning in theorganizationfrom differences which showshighbenefitsobtainedwhen organizational structure, processesandproceduresare maximized.

Conclusively, researchhas beendone which showshownationalculturesare diversifiedandhowtheyinfluencethebehaviors of theemployees, thisinspiresoptimism on theemergingperspectivesrelated to SHRM practicesandculture (Siddique, 2013: p.230). Globally, there is a lot of research that is carried out on howorganizationsallocateresources, makedecisions, manage, negotiateandmotivateemployees, developandtrain their employees (Linn, 2008: p. 90). These researches revealthatculture is one of themostimportant determinants of the organizational behavior. Consequently, a cultureplays a greatrole in thefield of HRM which takes heed of methodological andtheexistingtheoreticalpitfalls. Thisshowsthat, forthe SHRM to be implementedsuccessfully, organizational culture has to be maintained at highstandards by boththeemployerandtheemployees.

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