What is the Relationship between Human Resource Management and Organizational Culture? a Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the concept and importance of organizational culture and how it influences the behavior and performance of employees.
- Identify the different types of organizational culture and their characteristics, advantages, and disadvantages.
- Evaluate the impact of organizational culture on human resource practices
1.0 INTRODUCTION
Definition of Organizational Culture
According to a number of reviews from scientific research, for one to clearly understand organizational culture one has to see it as a result of numerous factors such as its mission, structure, size, strategy, and functions within an organization. These factors outline the norms, beliefs, values, and organizational behavior of the employees.
Organizational culture is defined as the shared values, beliefs, and norms that outline the behavior and practices of employees within an organization. According to Hofstede, 1991, organizational culture refers to the values and principles that differentiate one organization from the other. Organizational culture is important because it can affect various aspects of organizational performance, such as revenues, sales volume, market share, and stock prices (Kotter & Heskett, 1992; Marcoulides & Heck, 1993).
In other words, organizational culture and human resource management are linked by the way we define organizational culture as a set of values and learned ways of coping with experiences that have evolved over the history of an organization and that tend to influence people's behaviors (Alkhoraif, A. and McLaughlin, P., 2016.).
The Definition of Human Resource Management
Armstrong M (1994) defines human resource management as the strategic way of handling the employees of an organization, who are essential for its success and growth. Human resource management focuses on some key aspects such as; the needs and expectations of the management of an organization, developing a strategic vision for the business activities, adding value to the outcomes of the activities, and managing performance among many others. HRM is designated within the perspective of managing an organization’s social potential, labor resources, human potential, or human resources. The main objectives of human resource management are to attract, develop, motivate, and retain qualified and competent workers who can help the organization achieve its goals.