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What is the Relationship between Human Resource Management and Organizational Culture?

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    This paper aims to explore the relationship between organizational culture and human resource management, by taking into account the variety of cultural types that exist in the society. Organizational culture is defined as the shared values, beliefs, and norms that outline the behavior and practices of employees within an organization. Human Resource Management is that function in an organization that deals with activities such as; recruitment and selection, development, performance, and retention of employees. This paper discussed the relationships between organizational cultures and human resource management and the impact of culture on HRM. This paper explored how the various types of organizational culture impact the outcome and effectiveness of various personnel strategies. The paper answered questions like; Why is organizational culture important to HR? What is the relationship between organizational culture and management? The author contended that strategic HRM ought to align with the values, norms, and assumptions that shape the organizational culture of an organization. 
    When it comes to operational management, the authors also examined how different kinds of organizational culture influence the operational Human Resource Management practices that an organization implements for a number of human resource functions. They focus on the relationship between the type of culture and the specific practices within each function. The authors argue that the links between human resource management and organizational culture can be examined from two different perspectives namely strategic and operational. The strategic viewpoint focuses on how human resource management practices support the overall goals and values of the organization, whereas the operational viewpoint highlights how human resource management practices influence the daily behaviors and attitudes of employees. The authors suggest that both perspectives are important and complementary and that they can help to understand how human resource management and organizational culture interact and affect organizational performance.

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    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.

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