Connecting strategies with HRM: Literature review on organizational culture
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This literature review explores the relationship between organizational culture and performance. It highlights the role of HRM in maintaining a favorable culture at the workplace.
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Connecting strategies with HRM (Literature review on organizational culture) The present literature review demonstrates information about the organization culture. It explains that how organizational culture plays a significant role to increase and augment the performance of the workers. According to literature given byAwadh & Alyahya (2013), organizational culture is a system of shared values, beliefs, custom, assumptions which governs how people behave in the workplace. These shared values, beliefs and assumptions have a significant influence on the people in the organization and dictate how they act, dress and perform their tasks and duties. It has been stated byBarney& Clark (2007)that the values, behaviors and actions that contribute to the favorable social and psychological environment of the company. In other words, organizational culture is a setofsharedvalues,beliefsandnormsthatcharacterizeaspecificorganization.The organizational culture may also be defined byBoselie (2010)as a pattern of shared values and assumptions that are accepted by the group members in order to solve their grievances and issues. According to the literature given by McGraw-Hill Boxall, Purcell & Wright (2007), there is a close relationship betweenorganizational culture and organizational performance. It is noted by Truss, Mankin & Kelliher (2012), organizational increases and enhances the performance and effeicincy of the workers by providing favorable culture to them at the workplace. According to Storey, Wright & Ulrich (2008) favorable and strong helps in motivating the workers for performing tasks and duties in an effective manner. Thus, it will increase the profitability and revenueofthefirm.Awadh&Alyahya(2013)statedthatorganizationalculturehelps maintaining good and reciprocal relationship with employees. Hence, it boosts confidence, moral and confidence among the workers as it increases productivity of the employees and organization as well.Analoui (2007) revealed that culture provides right and effective platform to each and every employees to perform roles and responsibilities within the organization. Connell & Teo (2010)analyzedthatsuccessandgrowthofthefirmdependonthestrongandheavy organizational culture. No company can grow and survive its business without maintaining effective and unique culture (Anthony, Kacmar & Perrewe, 2006). Employee engagement can be done through effective and dynamic organizational culture (Guest, Paauwe & Wright, 2013). 2
Connecting strategies with HRM Kramar et al (2014) stated that each and every company should maintain positive working environment and culture to attract and retain the ample of employees within the organization. Mello (2011) analyzed that HRM plays a significant role to maintain favorable and dynamic culture at the workplace. Nankervis et al (2014) analyzed that HRM makes various policies and practices to make a strong culture at the workplace. According to Thomson et al (2005), HRM maintains strong and open communication with employees to handle and resolve their issues and obstacles. It will help to build and improve the working environment at the workplace. HRM maintain direct relationship with employees to conduct business activitiesand operations successfully (Salaman, Storey & Billsberry, 2005). Blackwell Publishing et al (2008) stated that human resource management develops confidence among the employees and they provide job satisfaction to them. It will also help to create a dynamic culture within the organization (McShane, Olekalns & Travaglione, 2013). Effective and unique performance system shall be used by HRM to develop and maintain a heavy and favorable working environment (McGraw- Hill, Nelson & Quick, 2011). From the above discussion, it has been concluded that the companies needs to focus on the organizational culture to maximize the profitability and revenue of the firm. 3
Connecting strategies with HRM References Analoui, F. (2007). Strategic human resource management. London: Thomson. Anthony, W. P., Kacmar, K. M., & Perrewe, P. L. (2006). Human resource management: A strategic approach (5th ed.). Mebourne: Thomson. Awadh, A. M., & Alyahya, M. S. (2013). Impact of organizational culture on employee performance.International Review of Management and Business Research,2(1), 168. Barney,J. B. & Clark, D. N. (2007). Resource-based theory: creating and sustaining competitive advantage. Oxford: Oxford University Press. Blackwell Publishing. Storey, J., Wright, P.M., & Ulrich, D. (2008). The Routledge companion to strategic human resource management. Hoboken: Routledge. Boselie,P.(2010).Strategichumanresourcemanagement:Abalancedapproach. Maidenhead, Berkshire, United Kingdom Connell, J. & Teo, S. (eds.) (2010). Strategic HRM: Contemporary issues in the Asia Pacific Region. Melbourne: Australia: Tilde University Press Guest, D.E., Paauwe, J. & Wright, P. (Eds.) (2013). HRM and performance: Achievements and challenges. Chichester, West Sussex : Wiley. Kramar, R., Bartram, T., De Cieri, H., Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2014). Human resource management in Australia (5th. ed.). Sydney: McGraw- Hill Australia Pty. Ltd. McGraw- Hill Australia Pty. Ltd. Mello, J. A. (2011). Strategic human resource management (3rd ed.). Mason, Ohio: McGraw- Hill Australia Pty. Ltd. Mello, J. A. (2011). Strategic human resource management (3rd ed.). Mason, Ohio: Thomson/South Western. McGraw-Hill. Boxall, P., Purcell, J., & Wright, P. (eds.). (2007) The Oxford handbook of human resource management. Oxford: Oxford University Press McShane, S., Olekalns, M., & Travaglione, T. (2013). Organisational behaviour: Emerging knowledge. Global insights. (4th ed.). North Ryde, NSW 4
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Connecting strategies with HRM Nankervis, A., Baird, M., Coffey, J. & Shields, J. (2014). Human resource management: Strategies and practice (8th ed.). Melbourne: Thomson. Sage Publications Limited. Schuler, R. S., & Jackson, S. E. (2007). Strategic human resource management (2nd ed.). Malden, USA Salaman,G.,Storey,J.,&Billsberry,J.(Eds.)(2005).Strategichumanresource management: Theory and practice (2nd ed.). London: Sage Publications Limited. Storey, J., Wright, P.M., & Ulrich, D. (2008). The Routledge companion to strategic human resource management. Hoboken: Routledge. Truss C., Mankin, D. & Kelliher, C. (2012). Strategic human resource management. New York: Oxford University Press. 5