A Report on the Impact of Organizational Culture on HRM Processes

This report delves into the crucial relationship between organizational culture and human resource management (HRM). It emphasizes that organizational culture significantly influences essential HRM activities such as performance appraisal and recruitment and selection. The report highlights how a positive organizational culture, characterized by shared values and beliefs, fosters effective performance appraisal systems, motivating employees and promoting their retention. Furthermore, it explores how a strong culture enhances the recruitment and selection process, attracting skilled candidates and ensuring a transparent and fair process. The report underscores the importance of aligning HRM practices with organizational culture to achieve employee satisfaction and overall business success. It provides a comprehensive analysis of these interconnected elements, supported by relevant research, and concludes that a well-developed organizational culture is vital for achieving organizational goals and fostering a positive work environment. The report is designed to help students understand the practical implications of organizational culture on HRM.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Introduction
Human resource management is one of the most essential activities for any business
organization. The effectiveness of the various HRM activities such as recruitment and selection,
performance appraisal, career management, staff induction, occupational health and safety
determines the effectiveness of the organizational activities. However, the organizational culture
has a strong impact on the various HRM activities and the effectiveness varies widely with the
differences in the organizational culture. This assignment highlights the two most essential HRM
activities namely performance appraisal and recruitment and selection and highlights the effects
of organizational culture, on these activities. The organization culture includes the foundation
beliefs of the organization on which the values and beliefs on the organizations lie. The shared
values include the way people work, dress, behave as well as perform their jobs successfully. It
is essential that the organizational culture be in coordination with the HRM activities, such as the
performance appraisal and recruitment and selection. The importance of the organizational
culture is highlighted, along with its impact on the performance appraisal and recruitment and
selection of the personnel.
Performance appraisal
The performance appraisal activities refer to the activity that identifies the good
performance of the employees and ensures the increase in the pay or recognition of the efforts of
the employees (Alvesson & Sveningsson, 2015). The performance appraisal program is directed
towards motivating the high performances of the employees, along with encouraging the other
employees to enhance their performances (Dusterhoff, Cunningham & MacGregor, 2014).
Performance appraisal has a key role to play in encouraging the employees to work diligently,
towards the fulfillment of the organizational goals. The organizational culture has a major impact

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on the performance appraisal of the employees (Breaugh, 2017). Each organization has a
different way of performance appraisal. In some organization, the performance appraisal is done
through recognitions and rewards given to the employees. However, in some other organizations,
the performance appraisal is done through given bonus and financial benefits to the employees.
Performance appraisal might be in form of additional benefits given to the employees, or
extended leaves that the employees get as a benefit of performance appraisal (Deepa,
Palaniswamy & Kuppusamy, 2014). Promotions and consideration into the next career level are
also some of the forms of performance appraisal. The form of the performance appraisals that is
prevalent in any business organization depends on the organizational culture (Alvesson &
Sveningsson, 2015). The organizational culture that recognises the good work of the employees
and appreciates the efforts being given by the employees results in achievement of employee
satisfaction and employee retention (Hogan & Coote, 2014). However, if the organizational
culture is not positive enough to recognize the performance of the employees, then the
employees might not be motivated to work diligently (Dusterhoff, Cunningham & MacGregor,
2014). Lack of encouragement from the senior officials might result in lack of effective work and
lack of enhancement of the performances (Cummings & Worley, 2014). Thus, the organizational
culture has a strong influence on the performance appraisal. Many of the business organizations,
with a weak foundation and lacking positive organization culture, might never engage
themselves in the performance appraisal activities, thus resulting in de-motivated employees and
a negative work place culture (Dusterhoff, Cunningham & MacGregor, 2014). Thus, the
organizational culture provides a strong platform of recognizing the employees and their efforts,
thus resulting in the encouragement and motivation in the employees.

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Recognizing the performance of the employees and awarding them effectively is an
essential HRM activity that reflects the positivity and encouragement in the culture of the
organization (Alvesson & Sveningsson, 2015). Thus, the organizational culture has a key role to
play in the performance appraisal of the employees, along with providing adequate
encouragement to them, to continue the good work (Gordon, 2017). Moreover, the performance
appraisal program also encourages the weak performing employees to compete with the high
performers, thus encouraging healthy competition among the employees. The motivation
provided to the employees through the performance appraisal programs helps them to retain the
high performance and thus enhances the business activities. Organization culture and
performance appraisal shares a strong dependency on each other (Dusterhoff, Cunningham &
MacGregor, 2014). The activity of performance appraisal being executed highlights the
positivity in the organizational culture. However, an encouraging organizational culture includes
the HRM activity of performance appraisal.
Recruitment and Selection
One of the major HRM activities that have a key role to play in the business organization
is the recruitment and selection of the personnel for the successful achievement of the
organizational goals (Alvesson & Sveningsson, 2015). The process of recruitment is a critical
one, as the success of the organization depends on the personnel being selected. The
organizational culture effects the recruitment and the selection process positively (DeNisi &
Smith, 2014). Large organizations, with an enriched organizational culture, includes a huge
amount of investments for the recruitment and selection process, thus ensuring that a pool of
candidates are selected and interviewed, in order to select the best employees from the shortlisted
pool (Alvesson & Sveningsson, 2015). Moreover, the cultural richness of the business

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organizations also ensures that the employees with the best skills could be recruited (Florea &
Mihai, 2014). Rich organizational culture is also helpful in aligning the newly recruited
candidates with the organizational work culture (Dusterhoff, Cunningham & MacGregor, 2014).
A rich and positive organizational culture incorporates openness and flexibility, thus ensuring
flexibility in the recruitment process (Alvesson & Sveningsson, 2015). However, if the
organizational culture is narrow-minded and negative, then the newly recruited employees will
find it difficult to adjust in the organization.
A culturally enriched business organization ensures job stability of the employees, along
with achievement of employee satisfaction. Such organizations refrain from engaging in
discrimination of any form (Burke, 2017). Discrimination based on sex, race, age, genders are
not practiced in such business organizations, thus ensuring a positive and effective recruitment
and selection process. Thus, the recruitment and the selection process are more transparent if the
organizational culture is enriched (O’Reilly et al., 2014). However, if the organizational culture
is not based on a strong foundation, then the recruitment and selection process might be
manipulative (Dusterhoff, Cunningham & MacGregor, 2014). Thus, the success and the
effectiveness of the organizational recruitment process, lies in the strength of the foundation of
the organizational culture. Thus, the organizational culture has a key role to play in enhancing
the recruitment and selection process of any business organization. The cultural stability of a
business organization will attract more potential candidates, thus enhancing the human resource
of the business organization. Thus, organizational culture has a key role to play in the process of
recruitment and selection.
Conclusion

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The organizational culture is an important for the business organization and the HRM
activities. The HRM activities such as recruitment and selection and performance appraisal are
significantly impacted by the organizational culture. The positivity in organizational culture
enhances the employee performance appraisal as well as the recruitment and selection process,
such that these HRM process could be effectively executed. The relation between the
performance appraisals and organizational culture is strong as a positive organizational culture
ensures performance appraisal process. However, lack of ineffective organizational culture will
result in lack of performance appraisal activities. Moreover, the recruitment and the selection
process is also much more transparent, if the organizational culture is strong and invincible.
Thus, the organizational culture shares a strong and positive relation with the performance
appraisal of the employees as well as the recruitment and selection process. Thus, the
organizational culture has to be developed effectively, to provide a positive platform to the
employees for the successful achievement of the organizational goals. The success of a business
organization lies on the organizational culture, along with other factors, so that the employee
satisfaction and employee retention could be done effectively.

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References
Alvesson, M., & Sveningsson, S. (2015). Changing organizational culture: Cultural change
work in progress. Routledge.
Breaugh, J. A. (2017). To Recruitment. The Wiley Blackwell Handbook of the Psychology of
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Burke, W. W. (2017). Organization change: Theory and practice. Sage Publications.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Deepa, E., Palaniswamy, R., & Kuppusamy, S. (2014). Effect of performance appraisal system in
organizational commitment, job satisfaction and productivity. Journal of Contemporary
Management Research, 8(1), 72.
DeNisi, A., & Smith, C. E. (2014). Performance appraisal, performance management, and firm-
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Florea, N. V., & Mihai, D. C. (2014). Analyzing the influence of IE factors on recruitment and
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