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Role of HRM on Organisational Culture

Role of HRM on Organisational Culture
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HRM practices aim to develop strategies that provide fit between the style of management and the overallbusiness strategy while maintaining employee well-being and increased performance at work.

Basic HRMpractices such as recruitment, selection, training, etc. affect the performance and stability of anorganisation. Thus these practices have the ability to influence employee behaviour and create values thatdevelop organisational culture (Gomez, 2004).

Cultural values are part of the external factors that affect HR practices. Number of cultural values influence employee behaviour. In organisational cultures where employee involvement is common it is more likely to have higher employees satisfaction and motivation than the ones that do not favour employee involvement. However, there might be various reasons why employees do not want to contribute or speak out. Some employees might see this as an unnecessary risk, while others might simply have personal reasons (e.g. being shy or not getting along well with the management).

Styles of management

Weber (1996) argues that attitude of senior management is crucial for facilitating organisational culture because senior managers play an important part in shaping cultural values. After all, the style of management is likely to reflect on organisational culture. Kabanoff (1991) identifies four styles of management:
  1. Collegial: Resources and rewards are evenly distributed. Organisational success depends on commitment and shared values. Individual responsibility is the basis of organisational performance. Management control over employees is limited.
  2. Meritocratic: Employees are concerned about productivity and cohesion. The management focus is on performance.
  3. Elite: The hierarchy is highly developed. Power, resources and rewards are concentrated at the top levels of the hierarchy.
  4. Leadership: This style of management shares many of the values of the elite style of management, but instead of a clique of leaders on the top level, it has leaders at various levels of the hierarchy (e.g. the army).
Whichever style of management or culture and organisation adopts, it has to find ways to facilitate it. The most effective way this can be done is through key HR practices: ongoing training, creating continuous communication channels, involving employees, establishing clear goals, creating a fair reward system, developing employees and flattening the organisational structures (Gomez, 2004). Size, is also a very important factor. In the case of facilitating organisational culture, size does matter.

Large organisations have more complex structures and complex management styles than small ones. As a consequence, large organisations need to ensure equal treatment of employees and clearer borders for management responsibility.

Size is related to level of resources. Large organisations are more likely to cope with internal and external challenges faster than small ones because larger organisations have larger resources such as more skilled staff, larger budgets, well established departments, etc. In addition, large organisations tend to have a more solid hierarchy and a complex workforce the small organisations, and this can sometimes be a problem when departments, groups, and individuals have their own interpretation of what needs to be done.

This article was written by Andre in 12:42 30 December 2012 | read 1046 times by readers

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