University of Leicester HRM Report: Organizational Culture and HRM

This report examines the critical relationship between Human Resource Management (HRM) and organizational culture. It explores the definition and significance of organizational culture, discussing whether it's tangible and manageable or intangible. The report delves into the role of HRM in fostering a positive culture, covering aspects like communication, organizational structure, induction, employee motivation, company policies, recruitment, employee engagement, and the influence of other stakeholders. It highlights that HRM plays a crucial role in maintaining and evolving the organizational culture, aligning it with the business needs and external factors. The report also analyzes different perspectives on organizational culture, classifying them into external, emotional, and formal/informal approaches, and how these views impact the HR's role in managing the culture. The report emphasizes the importance of a strong organizational culture for employee satisfaction, retention, and overall business performance.

Human resource management
Management of organizational culture as a function of HR
manager.

Table of contents
Introduction......................................................................................................................................2
Organizational culture.....................................................................................................................2
Organizational culture: Tangible and manageable or intangible and difficult to manage?.............3
Role of HR.......................................................................................................................................5
Communication............................................................................................................................5
Organizational structure...............................................................................................................6
Induction......................................................................................................................................6
Employee motivation...................................................................................................................7
Company policies.........................................................................................................................8
Recruitment and people management..........................................................................................8
Employee engagement.................................................................................................................9
Role of other stakeholders...............................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

Introduction
Human resource management is one of the most essential pillars over which the organization
stands. It is the process of managing the most important assets within any business which are the
human resources. This predominantly includes all the employees that are associated with the
business. The efficacy of the human resource management within any business has a direct and
evident impact on the organizational performance, levels of employee satisfaction and rates of
employee retention within the firm (Armstrong & Taylor, 2014). Businesses invest heavily in
ensuring a competent HR strategy in place. Employee working in the organization form the basic
crux of the business. Therefore it is imperative for the success of the business to ensure that these
employees are managed in a skilled manner.
The HR function of any organization is bestowed upon with tremendous responsibilities. On one
hand, some of these responsibilities are measurable and quantifiable like recruitment & selection,
maintain high rates of employee retention, performance management of employees, inducting
employees as well as training and development of employees (Collings, Wood & Szamosi,
2018). While on the other hand, some of these functions cannot easily be measured. These
functions include ensuring employee satisfaction and enabling an optimistic work culture. There
has been an ongoing debate regarding the extent to which the HR department of any organization
is responsible for the organizational culture that exists within the business. This report aims to
understand whether or not the HR function of an organization be held responsible for managing
organizational culture and to what extent organizational culture is a crucial aspect of the HR
function. There are several different theories and views on the matter and the report aims to
throw light on them. To begin with, we aim to understand the meaning and significant of
organizational culture. The latter parts of the report will discuss the importance of organizational
culture and the role played by the HR function of the business in establishing and maintaining an
optimistic organizational culture.
Organizational culture
Organizational culture is a critical part of any organization. In fact, organizational culture has
been known to be an important factor in determining employee satisfaction (Alvesson &

Sveningsson, 2015). There are several factors of the business that combine together to form the
culture of the organization. This includes the shared values, beliefs, assumptions that govern how
people behave in the organization. These factors have a solid influence on the behaviour of
employees in terms of how they dress, how they communicate, how they share knowledge or
even how they perform their jobs. The criticality of organizational culture is largely underrated.
Organizational culture has a massive impact on every day behaviour of employees.
The extent to which employees are satisfied with their current job is also a factor of the culture
that roots within the organization (Bolman & Deal, 2017). Culture within any organization is
dynamic and constantly evolving. A new employee in any organization learns about its culture
through the process of communicating with others as well as observing the practices within the
organization. All organizations are different and hence the culture in several different
organizations varies to a large extent. In some organizations, culture dictate that people must
wear business formals at work, while in some organizations, casual clothing is appreciated. Some
organizations are decentralized in nature and as per the culture, all the employees participate in
the decision making process. On the other hand, some organizations are centralized and the
culture implies that the decision would be made by the top management and would be
communicated to all the employees. For the long term success and sustainability of the
organization, it is imperative that the culture of the organization is preserved by all its
employees. At the same time, if the need be, the organizational culture must be flexible enough
to grow and change with the development of the organization.
A large number of these norms and values are shared by the human resource management
department during the time of recruitment of an employee as well as in the entire training and
induction process. In case the culture of the organization is not being preserved then it becomes
the responsibility of the HR manager to identify loopholes and gaps and fill the same. In fact
communicating these facets of organizational culture is one of the primary jobs of an HR
executive while recruiting employees and inducting them. If the culture of the organization is
slowing the growth of the business then it is important that this aspect of the culture is identified
and changed. The growth of organizational culture to suit the changing times, industry standards,
customer behaviour and organizational policies is essential (Hogan & Coote, 2014). Inducing

this change within the organizational culture is also the responsibility of human resource
management.
Organizational culture: Tangible and manageable or intangible and difficult to manage?
There is an ongoing debate regarding the nature of organizational culture. Some scholars believe
that organizational culture just like the organization’s structure is tangible and hence should be
effectively managed within the business. On the other hand, some scholars believe that this
culture is intangible and indistinguishable from the organization itself. This suggests that culture
of the organization is a deeper concept and is symbolic in nature (Danese, 2015). This makes it
difficult to manage the culture through conscious efforts. These group of scholars recommend
that instead of attempting to manage the organization’s culture, it must be understood in
subjective and symbolic terms.
Research states that strong cultures had a fairly positive impact on the overall organizational
performance. A strong culture is reflected by a rich as well as complex system of shared values
(Beauvais & Scholl, 2016). These can be seen in specific behaviour or employees as well as the
rituals as practiced by them. For a culture to be strong, it is important that it is in line with the
needs of the business. For example, a culture of open communication and centralization will be
effective for an organization within the advertising industry. Such a culture will best foster
employee creativity and ensure continued innovation. However, for an organization like the
national army, such a culture will be disturbing and will lead to reduced overall performance.
Therefore it is important to identify elements of the organization’s culture that would benefit the
organization and fit well with the needs of the business.
Another theory to organizational culture suggests that culture within the organization is a product
of the group experiences in the organization. There are underlying assumptions within any
organization that guide the common sense of employees working in the firm (Brettel, Chomik &
Flatten, 2015). These assumptions are reflected in every aspect of the employee’s behaviour. The
different views on organizational culture made it imperative for researchers to classify these
varied views on the culture of an organization. These views can thus be classified as three main
approaches.

The first approach suggests that organizational culture is an external variable and is brought
within the organization by its members. This approach suggests that organizational culture is also
somewhat reflective of national culture and state culture (Cao et. al., 2015). In terms of the role
of the HR to manage the organizational culture, this approach leaves little control to the
managers of the organization. The approach recommends that since the organizational culture is
reflective of the people and the national culture, there is not much that can be done by the HR
managers to control or manage that function.
The second approach suggests that organizational culture is considered to be an emotional or
inexpressive aspect of the organization. Organizational values are created as well as transmitted
among employees through stories, myths and legends. This approach suggests that the HR
managers of an organization can control the culture that persists within the business.
Third approach views culture has both formal and informal aspects of the organization. This
approach suggests that organizational culture has a formal side which can be controlled,
monitored and managed by the leaders of the business. At the same time, organizational culture
also has an informal side which is largely driven by factors like nature of employees, national
culture, changing organizations etc. This aspect of the organizational culture cannot be controlled
or managed.
Role of HR
Human resource management within any organization continues to be one of the primary
responsibilities of the business. Effective HRM is the lynchpin guiding the entire organization.
The human resource management team within an organization is bestowed upon with several
responsibilities including recruiting employees, training employees, inducting employees,
managing employee performance, addressing employee grievances, managing conflicts in the
business, compensating employees, motivating them and ensuring employee satisfaction as well
as long term retention in the business (Bratton & Gold, 2017). Human resource management also
plays a significant role in building and maintaining an effective organizational culture. It is the
responsibility of every stakeholder of the organization to maintain the organization’s culture but
the responsibility for the same must be taken by the human resource management team. This

section of the report highlights upon several roles of the HR which directly impact the
organization’s culture, its values, beliefs and systems.
Communication
The primary facet of the organization’s culture is the flow and nature of communication taking
place within the organization. Communication is one of the most important factors that has a
significant impact on the organization’s culture. HR team of the business plays a crucial role in
determining the flow of communication within the organization (Brewster, Chung & Sparrow,
2016). Certain organizations encourage openness and transparency of communication within the
entire firm. Certain organizations adopt closed communication practices. How employees within
the organization communicate with each other has a direct impact on the culture of the business.
A business with open communication would have transparency in the organization’s culture.
Communication also impacts how information flows within the organization. The leaders of the
business are largely responsible for the flow of communication that takes place in the
organization (Men, 2014).
Organizational structure
Organizational structure of the firm or the hierarchy within the organization also impacts the
organization’s culture. A flat structure tends to create an informal organizational culture while a
complex hierarchy is reflective of a formal and organized culture within the organization.
Therefore it can be stated that there is a casual relationships between the organization’s structure
and the culture that prevails within the organization (Shafritz, Ott & Jang, 2015). Both the factors
are highly intrinsic variables in the overall performance depicted by the organization. A mutual
influence has often been postulated between the culture and the structure of the business. The
culture of the organization impacts its structure both through its implementation as well as its
design. For example, in an organization practicing a strong hierarchy, it is the culture within the
organization that ensures that this hierarchy is preserved and maintained. If the culture of the
organization permits open flow of information and participative decision making as well as
transparent communication then it would be difficult for the firm to maintain its complex
hierarchy. At the same time, in a flat structured organization, the members of the organization
possess the power, owing to its culture, to create an unsaid hierarchy (Ashkenas et. al., 2015). If

the culture imposes the belief of “Organization as a machine” then it is likely that the culture
within the business would be highly formal and specialized with functional department.
Similarly, organizational structure also guides the culture that persists within the organization.
The structure has a direct impact upon the behaviour of employees on a daily basis. Hence the
nature of this impact is twofold. It is the role of the HR to implement an effective organizational
structure that suits the nature of the business (Kramar, 2014). Owing to the impact of this
structure on the organization’s culture, it can be said that the HR is largely responsible for the
management of organizational culture.
Induction
As discussed above, organizational culture is defined as the set of shared values, norms, beliefs
and assumptions that are practiced within the organization. It is the primary responsibility of the
human resource management team to induct every new employee with these values and beliefs
so that they can apply the same and participate in nurturing the existing culture of the
organization (Sikora & Ferris, 2014). Induction is the process of making new employees feel
comfortable and making them increasingly aware about the organization. It is during this process
that employees interact the most with the human resource management team of the organization.
Therefore this is the best time for the organization to induct employees regarding the
organizational culture. Since it is primarily the responsibility of the human resource management
team to ensure effective employee induction, it also clearly signifies the role of the HR in
maintaining and managing the organizational culture.
The cultural knowledge possessed by the employees of the business regarding several related
stories, myths or legends of the organization also help in shaping the culture of the organization
as practiced by employees (Marchington et. al., 2016). It is during the phase of induction that the
HR team must share these anecdotes with the new employees and make them aware regarding
the organizational culture that persists in the business. The cultural knowledge shared by
employees is a significant aspect that drives the culture of the business. The sharing of this
cultural knowledge by the HR team with every new employee is the first step to inculcate and
introduce organization’s culture in a team of new employees.

Employee motivation
Employee motivation refers to the process through which an organization’s management keeps
its employees motivated. Motivation of employees is one of the most important functions of the
human resource management team within any organization (Kuvaas, Buch & Dysvik, 2018). The
steps taken by the leaders of the organization to keep their employees motivated also play an
active part in determining organizational culture. Rewarding employees and recognizing them
for their efforts is critical to keeping employees motivated (Kumar, Hossain & Nasrin, 2015).
Such practices by the HR team also help in building the culture of the organization wherein
employees are valued and their efforts are appreciated.
The level of motivation among employees also positively reflects upon the organizational culture
that dwells in the business. Employees who are motivated tend to perform better and improve
overall organization’s performance. The employee motivation efforts by the HR team of any
organization therefore have a significant impact on the culture of the business (Yoon et. al.,
2015). It is fair to say that these efforts by the human resource management team are aimed at
improving the overall culture within the organization. This part of the organization’s culture that
includes the level of motivation among employees therefore can be effectively managed by the
human resource management team within the business.
Certain HR managers introduce internal competitions and rewards to inculcate a spirit of healthy
competition within the organization. They are also responsible for effectively managing
employee performance. Thereby it is the primary responsibility of the HR management in any
organization to ensure that performance of employees is managed in a manner that employees
remain motivated. This helps the team in performing to the best of their abilities especially after
knowing that their efforts are appreciated by the organization. All of these efforts by the HR
team to motivate employees not only ensures improved performance from their end but also
assists in building a productive, optimistic and encouraging organizational culture.
Company policies
Every organization has a set of policies that are established at the inception of the firm. These
company policies guide the employees within the organization. These policies include critical

elements of the organization like its leave policy, exit policy, work from home policy, zero
tolerance policy, behavioural policy as well as a non-disclosure policy. All these policies largely
impact the culture that persists within the organization. The primary role of the human resource
management team is to create effective policies for the organization. Therefore it is the HR team
that is directly responsible for the organization culture within the organization. If the
organization has a strict leave policy, then automatically, taking planned and advanced leaves
becomes ingrained in the culture of the organization. Similarly, for an organization that has a
zero tolerance policy against eve-teasing then the employees would be very careful about how
they conduct themselves in front of each other. In fact, several facets of the organizational
culture are made aware to the new employees through the organizational policies. Every new
recruit of any organization is essentially given a set of documents which contain the details of
organizational policies. This is done to make the employee informed and aware about the culture
of the place and the right way of going about things in the organization.
Recruitment and people management
The organizational culture existing within any organization is largely driven by the people of the
organization. A group of inspired and creative people will drive a culture that is open to learning
and new discussion. On the other hand, a group of demotivated and misguided people will create
a culture that requires external forces of motivation. One of the primary roles of the human
resource management in any organization is recruitment and selection of employees. In fact in
the selection process, candidates undergo an interview with the HR executive of the firm. It is the
responsibility of the HR to ensure that the candidates recruited for the organization are in line
with the organizational culture or can work towards making it better (Chaneta, 2014). This is a
crucial step because it is the employees of the organization that form the heart of the business
and therefore it is critical that the human resource management team brings in employees which
are suited for the organization’s culture. This step largely determines the role of the HR in
managing the organization’s culture.
Employee engagement
Employee engagement is the process of keeping employees engaged in the business. Employee
engagement activities are a major source of motivation for employees. At the same time, these

activities play a significant role in driving the organizational culture within the business (Mone
& London, 2018). It has been largely observed that employee engagement activities boost
employees’ morale and help them in connecting with one another. These activities ingrain and
instil the vibe of stronger team work within the organization. Ensuring employee engagement
and thereby improving the organizational culture is therefore an essential function of the human
resource management team at any organization.
The advent of technology and the use of social media has also enabled the HR team to introduce
innovative ways of keeping employees engaged. Engagement surveys, organizational events and
several one on one discussions can keep employees engaged within the business (Albrecht et. al.,
2015). They will also assist the HR in understanding, identifying and addressing issues faced by
employees thereby leading to an improved organizational culture.
Role of other stakeholders
Organizational culture cannot be built or changed overnight. It takes consistent efforts from
several organizational stakeholders to build and maintain the culture within an organization. It is
important to note that even though it is the human resource management team that takes the
baton for organizational culture within the business, the other stakeholders of the business are
also responsible towards the culture that persists in the organization and the industry at large.
Employees are primary internal stakeholders of the organization. The employees working with
the organization are largely responsible for the culture that exists within the firm. For example,
HR policies guiding the organization are established by the HR team but it is the inherent
responsibility of all the organization’s employees to abide by these policies. The HR team can
organize events and conduct activities to ensure employee engagement but employees of the
business must also participate actively in these events so as to ensure effectiveness of these
activities.
The effectiveness of an employee is governed by his or her sense of ownership towards the firm,
leadership abilities, communication skills, team building skills as well as organizational
performance. Therefore employees must take initiatives and try to create an efficient culture
within the organization through communication, team building and initiation (Glauser &

Holland, 2016). Older employees must take the time and effort to make new employees feel
comfortable. Employees must themselves indulge in productive discussions and work together in
effective collaboration. Such efforts from the employees would assist them in creating a culture
of change, leadership and growth.
Similarly, the leaders of the business including the top management and the board of directors
also have an active role to play in maintaining the organizational culture within the business. The
leaders must lead by example and create a culture of open communication. It is also the
responsibility of these leaders to encourage employees to share their opinions and demonstrate
enhanced participation within the organization. The leaders must also ensure that their
employees enjoy a work life balance and yet remain motivated to effectively perform in the
organization. Leaders must also create a spirit of healthy competition among employees and
reward or recognize performing members as a sign of valuing their efforts. Such efforts by the
top management build an optimistic culture within the organization which not only leads to
improved performance but also results in increased levels of motivation among employees.
Conclusion
Organizational culture persisting within any organization is one of the most important factors
that impacts levels of employee motivation, employee retention, employee’s performance as well
as employee satisfaction. Therefore it is highly important the organizations put efforts in building
and maintaining a solid and strong organizational culture which is in line with organizational
goals. This report has thrown light upon the role of the human resource management team within
any organization in building the organization’s culture and maintaining it.
Human resource management team within any organization is bestowed upon with the
responsibility to managing the most important assets for any business; its people. The HR team is
largely responsible for the organizational culture that exists in the business. There are several
efforts that the HR team puts in order to ensure a strong culture within the work environment of
the organization.
To begin with HR team ensure that it recruits candidates within the business whose personalities
are in line with the culture of the business. Secondly, they device organizational policies that