Links Between Hr Strategy/Policy and National/Organizational Culture.
2. Explain the links between HR strategy/policy and national/organizational culture.
Recent research suggests that the management of human resources has become increasingly important for business success. Employees are said to be one of the most valuable assets to an organization; as a result the effective management of these employees is essential. Management literature has had a tendency to associate human resource management (HRM) with firm performance. It is this link which has been the underlying cause for the abundance of research regarding HRM practices and their effects on a firm. However, there is a substantial debate within the literature that argues that HRM practices do not directly impact organizational performance (Boxall & Purcell, 2000), with claims that there is a missing link between the two. In regards to this ‘black box’ the concept of organizational culture has emerged. It is said that organizational culture is manifested in the behavior of its employees (Ngo & Loi, 2008), and is entrenched in the everyday working lives of cultural members (Martin, 2004). Culture is claimed to affect employee’s job attitudes, efficiency and productivity (Mahal,
2009), and can impact the ability to carry out an organizations plans and meet strategic goals (Chan, Shaffer & Snape, 2004). With these assertions, organizational culture could in fact influence a firm’s productivity and their overall performance. This paper examines the relationship between HRM, organizational culture and firm performance. The next section of this paper defines and explains the organizational culture concept. I then investigate the relationship between HRM and organizational culture by exploring the overarching themes which emerge from the literature regarding this link. Finally, I explore the relationship between HRM, organizational culture and firm performance.
The Link between HRM and Organizational Culture
Previous literature has identified and focused around two
Recent research suggests that the management of human resources has become increasingly important for business success. Employees are said to be one of the most valuable assets to an organization; as a result the effective management of these employees is essential. Management literature has had a tendency to associate human resource management (HRM) with firm performance. It is this link which has been the underlying cause for the abundance of research regarding HRM practices and their effects on a firm. However, there is a substantial debate within the literature that argues that HRM practices do not directly impact organizational performance (Boxall & Purcell, 2000), with claims that there is a missing link between the two. In regards to this ‘black box’ the concept of organizational culture has emerged. It is said that organizational culture is manifested in the behavior of its employees (Ngo & Loi, 2008), and is entrenched in the everyday working lives of cultural members (Martin, 2004). Culture is claimed to affect employee’s job attitudes, efficiency and productivity (Mahal,
2009), and can impact the ability to carry out an organizations plans and meet strategic goals (Chan, Shaffer & Snape, 2004). With these assertions, organizational culture could in fact influence a firm’s productivity and their overall performance. This paper examines the relationship between HRM, organizational culture and firm performance. The next section of this paper defines and explains the organizational culture concept. I then investigate the relationship between HRM and organizational culture by exploring the overarching themes which emerge from the literature regarding this link. Finally, I explore the relationship between HRM, organizational culture and firm performance.
The Link between HRM and Organizational Culture
Previous literature has identified and focused around two