Internal Factors: Organisational culture and values

Organisational Culture and Values

Organisational culture and values play a crucial role in shaping the human resource management function within a company. They form the foundation for how employees behave, interact, and make decisions within the organisation. In this section, we will explore the importance of organisational culture and values and how they impact human resource management.

Understanding Organisational Culture

Organisational culture refers to the shared beliefs, values, attitudes, and norms that exist within an organisation. It is the collective personality of the company and influences how employees think, feel, and act. A strong and positive organisational culture can foster employee motivation, engagement, and productivity.

There are various types of organisational cultures, such as hierarchical, entrepreneurial, innovative, and team-oriented. Each type has its own set of values and norms that guide employee behaviour. For example, a hierarchical culture may prioritize structure, rules, and obedience to authority, whereas an innovative culture may encourage risk-taking, creativity, and experimentation.

Human resource management needs to align its practices and policies with the organisational culture to ensure consistency and harmony. For instance, recruitment and selection processes should be designed to identify candidates who fit well with the organisation’s values and can contribute to maintaining and enhancing the culture.

The Impact of Organisational Values

Organisational values are the guiding principles that define the company’s identity and purpose. They reflect what the organisation stands for and what it expects from its employees. Values influence decision-making, behaviour, and relationships within the workplace.

When the human resource management function incorporates and promotes the organisational values, it helps create a positive work environment and enhances employee engagement. For example, if one of the core values is teamwork, HR can design training programs that foster collaboration and teamwork skills among employees.

Organisational values also play a crucial role in shaping the company’s employer brand. An employer brand is the company’s reputation as an employer and its ability to attract and retain top talent. When the organisational values align with the values of potential employees, it increases the likelihood of attracting candidates who will thrive within the company culture.