Impact of Organizational Culture on Human Resource Practices

A company's organizational culture serves as its binding agent. It includes all of the common attitudes, behaviours, shared values, and beliefs that influence how people interact and make decisions inside a company. This subtle but potent factor has a big impact on Human Resources (HR) procedures, influencing everything from hiring and employee happiness to performance management and retention.

First and foremost, hiring and selection procedures are shaped by the culture of the firm. Strong corporate cultures draw applicants who share their values and goals, which improves cultural fit and increases employee engagement. On the other hand, conflict and turnover may arise from a mismatch between culture and new hires. The goal of recruitment, the initial stage of employment is to guarantee the entry of qualified applicants required to meet the organization's strategic goals (Kurniawaty, 2019).

Encouraging employee engagement, satisfaction, and productivity depends on how HR strategies and company culture (Nwachukwu & Chladková, 2017). Employee commitment and performance are higher when HR procedures are in line with the organizational culture and provide workers a feeling of purpose and belonging. 

HR procedures should place an emphasis on group objectives, encourage open lines of communication, and acknowledge cooperative efforts if the organization places a high value on cooperation and teamwork. Four dimensions-efficiency assessment, human resource strategizing, profession superintendence, and compensation patterns are claimed to exist in human resource management methods. HRM functions into nine aspects, which include learning and development, empowerment and internationalization, workflow management, managing proficiency assessment, dismissal, pay management, recruiting, and relationships among employees (Barney, 2019).

The corporate culture sets the standards for moral conduct, dictates the resolution of conflicts, and guides employees' interactions with clients, consumers, and other stakeholders (Al-Bahussin & Elgaraihy, 2013). Remuneration schemes that are perceived as just and equal have an impact on employee retention. When employees feel that decisions about their compensation are based on objective criteria like job responsibilities, performance, and experience, they are more likely to have faith in the system and remain with the organization (Kumar, 2022).

Figure 1: Factors determining HRM in an organization

Conclusion

Organizational culture is a powerful force that influences all facets of HR procedures; it is more than simply a catchphrase. Culture affects how policies are developed and carried out, from hiring to retention. Therefore, for firms hoping to prosper in today's competitive world, cultivating a healthy and inclusive culture isn't simply a nice to-have; it's a strategic need. Through the alignment of HR procedures with the dominant culture, organizations may fully leverage their most precious resource their workforce.

 

References

Barney, J. (2019) ‘Firm Resources and Sustained Competitive Advantage’, Journal of Management, 

17(1),  pp 99–120.

 

Nwachukwu, C. and Chladkova, H. (2017) ‘Human resource management practices and employee satisfaction in microfinance banks in Nigeria’, Trends Economics and Management, 28(1), pp. 23-35.

 

Kurniawaty, K. Ramly, M. and Ramlawati, R. (2019) ‘The effect of work environment, stress, and job satisfaction on employee turnover intention’, Management Science Letters, 9(6),pp. 877-886.

 

Al-Bahussin, S. and Elgaraihy, W.(2013) 'The impact of human resource management practices, organisational culture, organisational innovation and knowledge management on organisational performance in large Saudi organisations: structural equation modelling with conceptual framework', International Journal of Business and Management,  8(22), p. 10.

Kumar, S. (2022) ‘The impact of talent management practices on employee turnover and retention intentions’, Global Business and Organizational Excellence,  41(2), pp. 21-34.

Amjad, M. and Khan, RA. (2024) 'Impact of HRM practices on employee retention with moderating role of organizational culture, in banking sector of Pakistan', Bahria University Journal of Management and Technology, 7(1).