Proper Organizational Culture as a Key Instrument for Effective HR Management

Proper Organizational Culture as a Key Instrument for Effective HR Management

Author: Nana Aleksidze

Organizational culture, also known as company culture, is one of the most important criteria for candidates when selecting a job. It also represents an important aspect for existing employee, allowing them to develop a strong sense of belonging. Representing the lifestyle of the company, developing a healthy culture should become a priority for every organization. It is the company’s culture that allows its members to move in the same direction; towards success. Corporate culture, however, is not without its issues. Organizations need to recognize numerous factors in order to better reflect what the company is all about (Boisvert. n. d. Retrieved 2020).  An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding. Organizational culture sets the context for everything an enterprise does (Smith, 2019). A strong culture can bring benefits such as enhanced trust and cooperation, fewer disagreements and more-efficient decision-making.  HR leaders are responsible for ensuring that culture management is a core focus of their organization's competitive efforts. For HR leaders to influence culture, they need to work with senior management to identify what the organizational culture should look like. Strategic thinking and planning must extend beyond merely meeting business goals and focus more intently on an organization's most valuable asset—its people.

Key Words: Organizational culture; Corporate culture; Human resources; Organizational management;

Introduction

Contemporary world experiences not only rapid development and technical advancement but also faces challenges of creating the proper and acceptable environment for humans where people will feel less stress and become more productive. This aspect of challenge is significantly vulnerable when the issue is connected to business and organizational management, organizational culture and right management of human resources unified under the notion of organizational/management psychology.

Organizational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization. In business terms, other phrases are often used interchangeably, including “corporate culture,” “workplace culture,” and “business culture.” Organizational culture includes the organization’s vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits, it also includes an organization’s expectations, experiences, philosophy, as well as the values that guide member behavior, and is expressed in member self-image, inner workings, interactions with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid. Simply stated, organizational culture is “the way things are done around here” (Deal & Kennedy, 2000 as cited in Cancialosi, 2017). Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. Also, organizational culture may influence how much employees identify with their organization (Schrodt, 2002 as cited in Cancialosi, 2017).

Main concept in organizational culture

Organizational culture, also known as company culture, is one of the most important criteria for candidates when selecting a job. It also represents an important aspect for existing employee, allowing them to develop a strong sense of belonging. Representing the lifestyle of the company, developing a healthy culture should become a priority for every organization. It is the company’s culture that allows its members to move in the same direction; towards success. Organizational culture represents a company’s overall lifestyle, and involves a variety of elements that make your organization stand out among internal and external collaborators (Boisvert. n. d. Retrieved 2020)

For example:

• the beliefs of the company
• working methods of the company
• its history
• its ethics
• the level of social engagement
• the values of the company and how it transmits them to others
• fun at work, and the well-being of its employees
• teamwork
• the quality of customer service
• the working environment
• the dress code

Who is responsible for leading organizational culture changes?

Typically, an organizational change project will be led by several parties within an organization. Cross-functional teams can include:

• Business leaders. Business leaders, such as executives and owners, will often guide any serious cultural change effort. Their vision, after all, is what drives and directs and organization.
• Change managers. Change managers control and execute organizational change projects. They will coordinate organizational transformations, as well as cultural change efforts.
• HR professionals. HR deals with everything related to employees and employment, so they will often take a direct hand in the implementation of cultural change programs.
• Senior and middle managers. Team leaders, such as managers, will often be advocates for change and lead cultural changes from the ground.

This team can also be supported by other groups as well, depending on the nature of the cultural change effort (Smith, 2020).

HR management and its role in organizational culture

HR does have an important role of play in organizational culture, as it is the people who work for the organization, who embrace and develop a particular culture within the organization, any desired change to the culture of the organization has be made through the people and by the people. HR does have an important role of play in organizational culture, as it is the people who work for the organization, who embrace and develop a particular culture within the organization, any desired change to the culture of the organization has be made through the people and by the people (M &E Studies ,n. d. Retrieved 2020).

Business leaders are vital to the creation and communication of their workplace culture. However, the relationship between leadership and culture is not one-sided. While leaders are the principal architects of culture, an established culture influences what kind of leadership is possible (Schein, 2010 as cited in Cancialosi, 2017). Leaders while leading face challenges in several aspects within the frame of organizational culture and the culture of the workforce /employees (Cancialosi, 2017):

• Individual/person culture and market culture: How members of an organization conduct business, treat employees, customers, and the wider community are strong aspects of person culture and market culture. Person culture is a culture in which horizontal structures are most applicable. Each individual is seen as more valuable than the organization itself. This can be difficult to sustain, as the organization may suffer due to competing people and priorities (Boundless, 2015 as cited in Cancialosi, 2017). Market cultures are results-oriented, with a focus on competition, achievement, and “getting the job done”
• Adoptive culture and adhocracy culture: Adaptive cultures value change and are action-oriented, Adhocracy cultures are dynamic and entrepreneurial, with a focus on risk-taking, innovation, and doing things first. The extent to which freedom is allowed in decision making, developing new ideas and personal expression are vital parts of adaptive cultures and adhocracy cultures.
• Power culture, role culture and hierarchy culture: How power and information flow through the organizational hierarchy and system are aspects of power cultures, role cultures, and hierarchy cultures. Power cultures have one leader who makes rapid decisions and controls the strategy. Role cultures are where functional structures are created, where individuals know their jobs, report to their superiors, and value efficiency and accuracy above all else. Hierarchy cultures are similar to role cultures, in that they are highly structured. They focus on efficiency, stability, and doing things right.

Company leaders play an instrumental role in shaping and sustaining organizational culture. If the executives themselves do not fit into an organization's culture, they often fail in their jobs or quit due to poor fit. Cultural values are part of the external factors that affect HR practices. Number of cultural values influence employee behaviour. In organizational 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). HR provides the organization with effective means of facilitating an organizational culture,  HR practices like on-going training, creating continuous communication channels, involving employees, establishing clear goals, creating a fair reward system, developing employees and flattening the organizational structures are all ways through which desired organizational culture could be promoted (M &E Studies, n.d Retrieved 2020) .

Changes in Organizational culture and productivity rate of the workforce

Organizational culture is not stagnant. Members of an organization develop a shared belief around “what right looks like” as they interact over time and learn what yields success and what doesn’t. When those beliefs and assumptions lead to less than successful results, the culture must evolve for the organization to stay relevant in a changing environment. Changing organizational culture is not an easy undertaking. Employees often resist change and can rally against a new culture. Thus, it is the duty of leaders to convince their employees of the benefits of change and show through collective experience with new behaviors that the new culture is the best way to operate to yield success. Six guidelines for culture change (Cancialosi, 2017).

1. Formulate a clear strategic vision. This vision gives the intention and direction for the future culture change.
2. Display top-management commitment. The top of the organization must favor the culture change in order to actually implement the change in the rest of the organization.
3. Model culture change at the highest level. The behavior of the management needs to symbolize the kinds of values and behaviors that should be realized in the rest of the company. Change agents are keys to the success of this cultural change process and important communicators of new values.
4. Modify the organization to support organizational change. This includes identifying what current systems, policies, procedures and rules need to be changed so alignment with the new values and desired culture can be achieved.
5. Select and socialize newcomers and terminate deviants. Encouraging employee motivation and loyalty to the company will create a healthy culture. Training should be provided to all employees to help them understand the new processes, expectations, and systems.
6. Develop ethical and legal sensitivity. This step can identify obstacles of change and resistant employees, and acknowledge and reward employee improvement, encouraging continued change and involvement.

The way the business leaders manage their companies and the style of the organizational culture highly influences the quality of the productivity of the company’s workforce. In order to have the proper answer to the question: How does organizational culture impact organizational performance? Since culture affects people’s values, beliefs, and attitudes, it touches virtually every aspect of an organization. Among other things, culture influences (Smith, 2019).

• Employee sentiments. Employees who are a good fit for the workplace culture, for instance, are more likely to be satisfied and happy. In other cases, the culture itself may foster a particular atmosphere.
• How well teams work together. Cultures can also affect how well people cooperate. Poorly trained managers can, for example, have a negative effect on teamwork skills – not to mention employees’ feelings, retention, and productivity.
• Workers’ performance and productivity levels. Some workplaces inspire motivation, drive, and enthusiasm. Other cultures are built around values such as learning and innovation. Attributes such as those lend themselves to a more productive work environment.
• The effectiveness of organizational changes. When employees are more open to change, more innovative, and more willing to learn new things, they will be more likely to support organizational changes.
• The atmosphere and the feel of the workplace. Different cultures result in different workplace climates. Amazon, for instance, is known as a fast-paced, high-stress work environment. Other companies, however, do their best to reduce workplace stress and conflict, which certainly results in a totally different atmosphere (Smith, 2020).

It is really only successful and powerful when business leaders see it as their responsibility, and see HR as a resource for helping them achieve it.  That's why culture change has to be a collaborative project. HR leaders can help business executives successfully execute culture change by doing four things:

• Facilitate the research phase. To move from A (existing culture) to B (desired, future culture) we often spend a lot of time and facilitate conversation and consultation deciding on B, but not enough time having a tangible, meaningful understanding of A. What do we look like now, at all levels — values, behaviors, processes, policies, artifacts? The larger the organization, the more variety we'll get in what A really looks like across the firm. Business leaders need to know, and HR can be a huge resource in facilitating this process.
• Convince leaders culture can change. So many senior leaders I meet are, in reality, very skeptical that culture really can change. And rightly so. Most have only seen culture change when drastic internal or market circumstances have forced it upon the organization. This skepticism is justified, as there are many examples of culture change not transpiring despite all the "talk" or of the change not turning out well. HR can help by sharing examples of how organizations have, in line with their long-term strategic objectives, proactively and positively driven culture change.
• Then teach them how to change it. We can't assume business leaders will know what to do to influence culture. Some may have the expertise already, while others may find that it comes somewhat instinctively. But for others, even the most senior leaders, it can be a new and uncertain path. Few will have been involved in leading culture change before. It is not enough to engage business unit leaders to get their input on what needs to change and their buy-in to the initiatives. Only when we equip business leaders with the skills to drive culture change can we then give them ownership and hold them accountable for its success.
• Have a formal "handoff" where the project is handed over to the business. As soon as the time comes to shift from A to B and start making changes to facilitate the new culture, the message to business leaders should be clear from the very, very top: "This is not an HR project, it's yours." HR is there to support, help, and facilitate the change — much as an outside firm of experts would be. But ownership of making these changes does not lie with them; it lies with the business unit leaders themselves.

HR could help develop strategies that could serve as a link between Management Style and the business strategy whilst employee's wellbeing and performance is maintained.  HR should develop practices that aids in forming co-ordination between management styles and business strategy. A Delegative Management Style with business strategy that has the focus on quality improvement through knowledge sharing, in this case HR practices shall focus on Employee Development through Creation of Organizational culture where there is ease of sharing information, trust in knowledge sharing, Learning Opportunities (M &E Studies, n.d Retrieved 2020).

Arguably the attitude of senior management is crucial for facilitating organizational culture because senior managers play an important part in shaping cultural values. After all, the style of management is likely to reflect on organizational culture. For Instance if the Management portrays itself as being flexible in daily business operation, flexibility could include lack of timing constraint for employees, focus on tasks rather than designation, this could well form an organizational culture where people might come late and go home late, Jobs could get mixed, as one person might be having multiple tasks not directly related to the job he/she was hired for (M &E Studies, n.d Retrieved 2020).

Discussion

While having a deeply embedded organizational culture is usually associated with higher performance, these organizations may not be adaptive enough to ensure their long-term survival. Organizations may, therefore, become more agile by allowing subcultures to emerge. While there is widespread agreement that organizational cultures do exist and that they are a key driver in shaping organizational behaviors, pinpointing an exact definition of the concept is a difficult undertaking. An absolute definition would allow not only for a more rigorous study of organizational culture, but also increase our understanding of how it influences other organizational outcomes such as productivity, employee engagement, and commitment. One thing is undoubtedly known about culture: It is constantly being created, changed, and splintered to ensure the success of its parent organization (Cancialosi, 2017).

A strong culture is vital for organizational success – as evidenced by the relationship between culture and leadership, employee commitment, customer satisfaction, and innovation. But "strong" doesn't mean fixed. As the organizational goals and strategy change over time, so too should culture intentionally be changed. The best leaders ask, "Who do we need to be (culture) in order to achieve what we're trying to do (strategic goals)?" But there's one barrier that holds many organizations back from genuine and successful culture change: ownership. The first question to ask when culture change is on the horizon should not be, "How do we go about this?" but rather, "Who owns this?" True culture change means altering the way the organization lives and breathes. It shapes the way people make decisions, get their work done, what they prioritize, and how they interact with colleagues, clients, and customers.

We need to be clear that in the life cycle of an organization, culture can and should change. And this change is best led from the very top, driven through equipped, accountable business unit leaders, working collaboratively alongside HR (M & E studies, n.d Retrieved 2020).

Conclusion

Because industries and situations vary significantly, there is not a one-size-fits-all culture template that meets the needs of all organizations. If an organization's culture is going to improve the organization's overall performance, the culture must provide a strategic competitive advantage, and beliefs and values must be widely shared and firmly upheld. Each company adopts its own organizational culture and will have its own cultural DNA (Kabanoff, 1991). Every aspect you incorporate into your company reflects your culture and engages your employees and because engaged employees are productive employees, your brand will certainly shine! The major challenge for any company is maintaining its healthy organizational culture. It is your own actions that reflect the company’s culture, and it is imperative that it remains a unifying element. Maintaining your organizational culture will increase the level of employee engagement. Better yet, if there is a real fit between the values of the company and those of its members, you will witness a significant increase in the overall level of job satisfaction. Organizational culture must also be constantly represented throughout the company. Our values, ethics, and even general work environment must be present and consistent every single day. Company culture must be non-sporadic in order to allow us to truly feel like we can be ourselves, After all, how would it be possible to engage and motivate employees if our overall vision is constantly changing? However, constant reinforcement of culture does not mean that it can’t be improved, on the contrary! Simply avoid adapting your organizational culture to any given situation, or being selective and changing it according to who you talk to in the business. The organizational culture must involve all employees. It can even be emerged and built from your team, rather than having it imposed on them by management. Culture needs to be integrated in a natural way to ensure everyone feels they are part of the process. Involve your employees, and you be surely rewarded. The members of your organization must feel involved and embrace your cultural lifestyle. It is essential for its success that everyone be moving in the same direction; hence the importance of continuously optimizing it using the whole team (Weber, 1996). To be successful, companies must establish a healthy organizational culture, work to maintain it, and invite its members to actively participate. An individual who is swimming against the current and unable to perform his/her job optimally, will not be able to achieve long-term success. The same is true for those who are not in an organization that is right for them. To avoid burnouts, there must be a fit between the individual and the organization (Smith, 2019). A strong culture can bring benefits such as enhanced trust and cooperation, fewer disagreements and more-efficient decision-making.  HR leaders are responsible for ensuring that culture management is a core focus of their organization's competitive efforts. For HR leaders to influence culture, they need to work with senior management to identify what the organizational culture should look like. Strategic thinking and planning must extend beyond merely meeting business goals and focus more intently on an organization's most valuable asset—its people.

References

 Boisvert, C.( n.d ) Organizational Culture: What is it and What are the Challenges. Retreived from https://atmanco.com/blog/working-environment/organizational-culture-challenges/ in October 2020

Cancialosi, C. (2017) What is Organizational Culture? Retrieved from https://gothamculture.com in October 2020

Kabanoff, B. (1991) Equity, equality, power and conflict. Academy of Management Review, 16, pp. 416-441

M& E Studies (n.d) Role of HRM in Organizational Culture. Retrieved from http://mnestudies.com/human-resource/role-hrm-organizational-culture#:~:text=Organizational%20Culture%20and%20HR%20Practices%20Basic%20HRM%20practices,behaviour%20and%20create%20values%20that%20develop%20organisational%20culture in October , 2020.

Smith, A., J., D. (2019) Understanding and Developing Organizational Culture.Shrm.org. Retrieved from https://www.shrm.org/ResourcesAndTools/tools-and samples/toolkits/Pages/understandinganddevelopingorganizationalculture.aspx in October, 2020.

Smith, C. ( 2020). Organizational Culture from A to Z: The Complete Guide. Retrieved from https://change.walkme.com/organizational-culture/ in October 2020

Weber, Y. (1996) corporate cultural fir and performance in mergers and acquisitions. Human Relations, 4(9), pp.1191-202

https://www.ibsu.edu.ge/research/en/silkroad?fbclid=IwAR2tZh6RtiWLcmvotK9vqzRrJgtvbSbHy2uq-EqvJD1UJ6rixHeJRMpizG8