1. What is HRM and Organisational Culture
What is Human Resource Management (HRM)?
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Adopted from NASSCOM Community. (n.d.) |
According to Barney (2020), Human Resource Management (HRM) involves the processes of recruitment, hiring, deployment, and the overall management of an organisation's workforce. HRM is commonly referred to as Human Resources (HR). Typically, a company's HR department is tasked with developing, implementing, and overseeing policies related to employees and the organisation's relationship with its workforce. The term "human resources" was initially coined in the early 1900s and gained broader usage in the 1960s to describe the collective workforce of an Organisation.
HRM focuses on managing employees as valuable assets for the business. In this context, employees are sometimes referred to as human capital. Like other assets in a business, the objective is to effectively utilize employees, reduce risks, and maximize the return on investment (ROI).
In contemporary discussions about HR technology, larger and midsize companies often use the term "human capital management" (HCM).
What is
Organisational Culture?
According to Wong (2023), Organisational culture encompasses a collection of values, beliefs, attitudes, systems, and regulations that define and shape the conduct of employees within a given organisation. That culture reflects how individuals within and connected to the organisation, including employees, customers, vendors, and stakeholders, perceive and interact with the organisation and its brand.
A strong organisational culture is the essential factor in nurturing the characteristics needed for achieving success in business. The positive outcomes of such a culture are evident in financial performance, companies with strong cultures are 1.5 times more likely to achieve a revenue growth of 15% or higher within three years, and they are 2.5 times more likely to experience substantial stock value growth during the same timeframe. However, it's worth noting that despite these benefits, only 31% of HR leaders believe their organisations currently possess the culture necessary to drive future business success. Transforming the culture to this ideal state is a challenging effort, as a significant 85% of organisations fall short in their efforts to bring about this transformation.
827 Organizational Culture Stock Photos - Free & Royalty-Free Stock Photos from Dreamstime. (n.d.). 827 Organizational Culture Stock Photos - Free & Royalty-Free Stock Photos from Dreamstime. [online] Available at: https://www.dreamstime.com/photos-images/organizational-culture.html [Accessed 2 Nov. 2023].
Barney, N. (2020). What Is Human Resource Management (HRM)? [online] TechTarget. Available at: https://www.techtarget.com/searchhrsoftware/definition/human-resource-management-HRM [Accessed 2 Nov. 2023].
EDWARD T. HALL (2020). Organizational Culture: Managing Your Culture by Design Rather Than Default. [online] Steelcase. Available at: https://www.steelcase.com/research/articles/topics/culture-talent/organizational-culture-managing-culture-design-rather-default/ [Accessed 2 Nov. 2023].
NASSCOM Community | The Official Community of Indian IT Industry. (2022). Human Resource Management (HRM) Definition Meaning. [online] Available at: https://community.nasscom.in/communities/hr-summit/human-resource-management-hrm-definition-meaning [Accessed 2 Nov. 2023].
Wong, K. (2023). Organizational Culture: Definition, Importance, and development. [online] Achievers. Available at: https://www.achievers.com/blog/organizational-culture-definition/ [Accessed 2 Nov. 2023].
Dear Dinesh, Highly appreciated your comments,
ReplyDeleteAs I think the best way to maintain company culture with young employees while not compromising company goals is to foster open communication, provide mentorship and training, establish clear expectations, offer flexibility, recognize and provide feedback, support professional development, promote inclusivity, lead by example, balance tradition with innovation, create feedback mechanisms, and encourage ownership, all while periodically assessing and adapting the company culture to align with the evolving workforce and the organization's long-term objectives.
Under the HRM rewarding employees is important factor. What are the most suitable ways for employees rewarding with youger generation attitude improvement towards the organisation success.
ReplyDeleteRewarding employees in line with the younger generation's attitudes and values is essential for organizational success. To resonate with Millennials and Gen Z, consider flexible work arrangements, professional development opportunities, personalized rewards, frequent recognition, and clear paths for career growth. Wellness initiatives, technology perks, and social responsibility programs also hold appeal. Furthermore, a commitment to inclusivity, remote work benefits, and peer recognition can foster a positive work environment. Continuously gathering feedback and adapting your reward programs ensures that your organization remains aligned with the evolving preferences of its workforce, contributing to a motivated and engaged team.
DeleteOur workplace culture is definitely one of our biggest differentiators. People work here because they believe in our mission and culture.”—Dana Ullom-Vucelich, Chief Human Resources & Ethics Officer at Ohio Living. If we able to create this positive attitude in employees mind set, it will definitely support for the success of the organisation. Thank you for the clear explanation.
DeleteHi Sudesh,
ReplyDeleteWhile appreciating your content, I would like to make a query.
What would be the outcome of recruiting employees from other organisations? It would have an impact on culture for sure. Do you agree? What would you think is the best
1. Recruiting from other companies despite the cultural difference.
2. Internal Recruitment citing the impact on organisational culture.
Hi Vimukthi, Thank you... good question,
DeleteRecruiting employees from other organizations can bring diverse perspectives but may disrupt the existing culture.
Option 1 risks cultural misalignment, requiring proactive measures to integrate new hires smoothly.
Option 2 internal recruitment, maintains cultural continuity but may limit fresh insights.
The choice depends on the organization's adaptability and the value placed on maintaining or evolving its current culture.
Hi Suresh, A very important topic. In my opinion, it is sometimes not advisable to maintain the culture of an organization in a non-dynamic manner.
ReplyDeleteExplain the challenges faced by the head of an organization in changing the organizational culture in such a case.
Dear Mithini, Thank you for the valuable comments, And I can answer for your question as below,
DeleteChanging an organization's culture is a complex and challenging task for its leader. Key challenges include resistance from employees who are accustomed to the existing culture, ensuring alignment with the organization's strategic goals, and maintaining productivity during the transition. It also requires clear communication, role modeling, and a well-defined plan for implementation. Additionally, measuring and evaluating the progress of cultural change can be difficult. The head of the organization must demonstrate patience, persistence, and the ability to adapt to unforeseen obstacles to successfully navigate the cultural transformation process.
Hi Sudesh, Common values, attitudes, beliefs, and behaviors that influence how members of an organization interact with one another and with external stakeholders are referred to as organizational culture. I personally believe that It is the "personality" of an organization and is very important in defining how staff members collaborate and how the company runs its operations. One man come to the organization, and can change its organization culture from own behavior and strategies. So culture brings more ethics to business organization. Great elaboration. Cheers
ReplyDeleteDear Malith, I am total agreed with your statement and a strong leader can change the organisational culture successfully.
DeleteHuman capital refers to the knowledge, skills, experience, and attributes possessed by individuals that contribute to their ability to perform work effectively. It is a key component of an organization's resources and is often referred to as human capital resources. In the context of economics and business, human capital is seen as an intangible asset that can enhance an individual's or a group's productivity and economic value.
ReplyDeleteHuman capital encompasses a wide range of factors, What is the most important factor
Dear Dilini, Thank you for the valuable comments,
DeleteWithin the spectrum of human capital, skills and knowledge stand as the foremost influential factor. These attributes fuel adaptability, innovation, and problem-solving, shaping the workforce's efficiency and productivity. Skills, including technical expertise and soft skills like communication or leadership, drive progress and contribute significantly to economic growth and organizational success. Knowledge, the foundation on which skills are built, empowers individuals to navigate complexities, fostering continuous learning and evolution. While human capital comprises diverse elements, the amalgamation of skills and knowledge forms the linchpin, enabling individuals and societies to thrive in an ever-evolving landscape, underscoring the pivotal role of ongoing education and skill development in the modern world.
An excellent corporate culture is where every employee gets an opportunity to exhibit their skills. All workers must get a chance to perform. I find your article very interesting.
ReplyDeleteHi Zeenath, thank you for your valuable comment
DeleteHi Sudesh,
ReplyDeleteI would like to make a query
How does Human Resource Management (HRM) differ from the concept of Human Capital Management (HCM) within contemporary organizational frameworks, and how do these approaches contribute to optimizing workforce efficiency and organizational success?
Dear Sumeda, Thank you for your query
DeleteAnd I can make a reply for your query as below,
HRM focuses on managing people within an organization, while HCM emphasizes the value of employees as assets. HRM deals with day-to-day tasks, while HCM aims to maximize employee potential for long-term organizational success by investing in skills and development. Both contribute to efficiency and success by aligning workforce capabilities with organizational goals.
Wong's insights underscore the pivotal role of organizational culture in shaping employee behavior and impacting business success. The correlation between a strong culture and positive outcomes, like revenue growth and stock value, highlights its significance. However, the challenge of cultural transformation is evident, with a majority of organizations struggling to achieve this ideal state.
ReplyDeleteDear Vidura, I can agree with your statement, and there are some resistance to change in every organisation.
DeleteDear Dammika,
ReplyDeleteHuman Resource Management (HRM) involves recruiting, hiring, and managing an organization's workforce, treating employees as valuable assets. Organizational Culture encompasses values, beliefs, and systems shaping employee behavior. Both are crucial for business success.
ReplyDeleteFunctionss of HRM could be segarated as folliws,
* Job analysis
* Workforce management
* Performance management
* Pay and remuneration
* Learning and development
Dear Channa, your are correct, and your breakdown effectively encapsulates the core pillars of HRM, emphasizing the essential elements crucial for effective people management within an organization.
Deleteorganizational culture is gener Understood as all of company beliefs,values and attitudes and hoe these influence the behavior of its employees.It is better to discuss on organizational cultures with the examples for better understand
ReplyDeleteAn organization's ability to draw in talent, innovate, adapt to change, and uphold strong relationships with stakeholders and employees is all significantly impacted by its organizational culture.
ReplyDeleteOrganizational culture could play a vital role in the firm. If leaders could considered about the values of the culture and setting of goals and targets and the path way to reach for targets as accodance to the culture will create more results.
ReplyDeleteDear Sudesh,
ReplyDeleteIn your article HRM and organizational culture well explained. According to idea, what will be most challenging issue faced by the organizations nowadays and what will be solution for the same?
Hi Friend.
ReplyDeleteThis elucidating piece provides a clear and comprehensive understanding of both Human Resource Management (HRM) and Organisational Culture. It adeptly outlines the fundamental processes of HRM and underscores the crucial role of a strong organizational culture in driving business success. The inclusion of statistics adds depth, making it an insightful read for anyone seeking knowledge in these areas.