THE IMPACT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF A COMPANY

THE IMPACT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF A COMPANY

According to the opinion of  Mats Alvesson, (2002), there's a decent reason for having organizational culture as one of the most common themes in educational analysis and education in structure theory and management observe today: dimensions of culture is central to any or all aspects of structure life.

Today, it's clear to most managers that the key to long-run success lies not in individual methods and effective management of resources, but in, up to now mostly neglected dimension of governance, the cultural dimension (Cardona, Ray, 2009).

An organizational culture like "the operative system" leads a corporation and its activities, shaping the method staff think, work and the way they feel (Vukotić et al., 2014).

The example that's usually used to show the importance of organizational culture for doing business is the company Federal express, better-known for the values shared by its employees. during the UPS strike within the summer of 1997, several new consumers turned to the company Fed Ex. after the company was overcome with extra 800,000 parcels a day, thousands of workers came to the headquarters and volunteered to sort packages, clearly demonstrating the company's worth in terms of providing service to the consumers. Only after the strike was over, the staff was awarded extra wage related to the financial gain earned during the strike (Jay et al., 2002).

Inside of an organization, sub-units such as functional departments, product groups, hierarchical levels,  or even teams,  may also reflect their own unique cultures (Cameron, Quinn, 2006).  Their own perspectives set of values and principles of business can be the cause of conflict between them. Developed commercial awareness allows to understand much of what is happening in the business environment, to what it happening fit into an existing framework and to successfully cope with business challenges.

In order to successfully match into the trendy economic surroundings, some organizations have to modify their organizational culture. as an example, when troubled for survival,  the Chrysler company has accepted a modification of culture therefore that the entire method concerned people centered on learning, place stress on quality and they once more became a successful and profitable company (Krouse, 2012).

Although changes will be a difficult and a long-term method for an organization, the rewards that follow are indisputable.  Cameron  and  Quinn  emphasize  in their work,  ”Diagnosing and changing organizational culture; based on competitive  values framework”  (2006), without changing  the  culture  there  is very little  hope  for  lasting improvement in organizational performance

References

Alvesson, M., (2002). Understanding organization culture, SAGE Publications, London

Vukotic,  V.,  Sukovic,  D.,  Rasevic,  M.,  Maksimovic,  S. and  Goati,  V., (2014). (Anti) liberalism and economics, Center for Economic Research of Institute of Social Sciences, Belgrade

Krouse, H., (2012). Organizational culture and entrepreneurship, International Review 

(2012 br.3-4), 27- 33

Cameron, S. and Quinn, E. (2006), Diagnosing and changing organizational culture; Based  on  competing  values  framework,  revised  edition,  The  Jossey-Bass  A  Wiley Imprint, San Francisco

Cardona, P. and Rey, C. (2009) Management by mission, Mate, Zagreb

EMERGING HR CHALLENGES IN 21st CENTURY

EMERGING HR CHALLENGES IN 21st CENTURY

One of the crucial activities for HR managers is the HR planning. Regarding the HR functions of the 21st century, the organizations have altered from “behind the scenes” to becoming the critical differentiator in businesses.

The foremost function of HR is to locate the people with needed expertise for the progression of a company (Miller & Cardy, 2000).We know that every person is different from another. In order to select the cream of talented people out of the whole pool, it is extremely important for 21st-century managers to broaden their view of judging people on the basis of their origin, culture, values, etc.

The organizations today are having heterogeneous workforce; managing the culture where people have different mindsets and putting across the cultural values is indeed a challenging task. The HR managers have to develop such a culture that supports these changes due to the acquisition and mergers in the 21st century. (Williams, 2003).

In the recent scenario, when there is no dearth of opportunities, it has become a great challenge to stop people from looking for new place to work. Every organization has to adopt new and latest ways for satisfying its people, this will help to control the rate of turnover (Henson, 2007).

Due to the advancement of technologies and many other reasons, people nowadays prefer to work from home.With the flexible work arrangements, the HR professionals need to monitor regularly the successes in various projects and challenges faced during the period.

It is a responsibility of the manager to make a segregating line between work and leisure activities. People often quit jobs if they do not find an appropriate balance between personal lives and professional obligations. Hence the manager has to work to avoid such scenario and they need to help employees in finding right work-life balance (Kossek, 1998).

The progress of any industry is quite impossible without worker cooperation and harmonious relationships (Argyris, 1977). Therefore, it is in interest of HR managers to develop and maintain healthy relationships with employees and management employers

In the 21st century, the HR has the handle many challenges like; change management, conflict management, managing the multi-generational workforce, managing 5R’s, workforce diversity, globalization, striking work-life balance, succession planning etc. It is the responsibility of HR to increase organizational efficiency and effectiveness by adding value and gaining a competitive edge over competitors for a long-term survival in the complex and highly uncertain marketplace.

References

J. Miller& R. Cardy, (2000), Technology and Managing People: keeping the Human in the Human Resources. Journal of labor Research, vol 21, page 447- 461.

B. Williams, (2003). Speak for yourself? Power and hybrid in the cross cultural classroom, Journal of College Composition & Communication, 54, 586-609

R. Henson, (2007). Looming Talent Shortage Rattles HR Departments. http://www.oracle.com/newsletters/information-insight/humancapitalmanagement/jan-07/talent-shortage.html?msgid=5306226,(accessed on 20^th December 2017 at 9pm)

E. Kossek & C. Ozeki,(1998), Work-family conflicts, policies, and the job satisfaction relationship,  Journal of Applied Psychology 83(2):139-149.

C. Argyris &D.  Schon, (1977), Organizational learning: A theory of Action Perspective, Addison-Wesley, Reading, MA.

Contemporary performance management in Global Context

Contemporary performance management in Global Context

Results are the tangible and readily measurable of the horizontal dimensions of performance. Two of the most widely applied result-based performance measurement and management methods, namely goal setting and balance scorecard.

In terms of the (prescriptive or descriptive)conception of work as a linear value-adding process, results can be defined as those tangible and intangible outcomes from work behavior or activity that management deems desirable and valuable in achieving organizational objectives conceived thus, the results domain may be seen as covering six main outcome categories:

1 product or service quantity

2 product or service qualities

3 financial outcomes

4 timelines

5 innovations

6 Stakeholder reactions

The global performance management system is based on corporate values and goals, tailored to the different countries, depending on cultural sensitivity and knowledge of the process of the direct feedback (M.Festing & J.Eidems, 2011).

The impact of HRM policies and practices on firm performance is an important topic in the fields of human resource management, industrial relations, and industrial and organizational psychology (Huselid, 1995).

Performance management in IHRM represents a designed and implemented intervention by the MNCs with the goal of the management of the performances of the global workforce (individual, team and organizational performances) so that those performances can contribute to the achievement of the global strategic objectives and results of MNCs.

Every year, in its Sustainability Report, Samsung presents its management practices and results, offering examples of the KPIs used in each of the most important areas: “for the purpose of monitoring and analyzing our efforts to ensure that all business activities are aligned with sustainable development, Samsung Electronics identified several key performance indicators with measurable data to guide our innovation in sustainability”(samsung,2013)

Indeed, one of the most important segments of the performance management at Samsung is represented by HR.As an incentive for the eco-management, through the “Samsung Electronics Annual Awards” the company recognizes the contributions made by the company’s organizations and individuals in the area of green management with prizes and additional points on their performance appraisals.(samsung,2013)

The performance management at Samsung is a combination of talent management, green management, integrity management, time management, financial performance and creative business strategies, in order to secure the company’s position among the global electronics leaders. (Samsung, 2013)

References

J.Shields, M.Brown, S.Kaine and C.Dolle-Samue,(2015) “Managing employee performance and reward concept,Practice,Stratagies,illustrated,Cambridge university press.

M.Festing & J.Eidems,(2011) A process perspective on transnational HRM systems-A dynamic capability-based analysis. Human Resource Management Review, 21(3), pp.162-173.

M.Huselid, (1995) The impact of human resource management practices on turnover, productivity, and corporate financial performance, Academy of Management Journal, 38(3): PP.635-672.

Samsung electronics, (2013) sustainability report (https://www.samsung.com%2Fis%2Fcontent%2Fsamsung%2Fp5%2Fglobal%2Fir%2Fdocs%2F2013sustainabilityreport.pdf&usg=AOvVaw38ZhiFhyHWtcc0OWHcHpRE), accessed 06 Dec. 2017 at 8pm.

Maslow Hierarchy

Maslow Hierarchy and what Maslow missed

This theory puts forward the idea that individuals move through a fundamental number of hierarchical motivations, in a unique order, based on both physiological and psychological needs.

The Hierarchy of needs suggests that if these fundamental needs are met then an individual can focus on higher needs such as self-esteem and respect, eventually reaching a ‘metamotivated’ state.(Maslow, 1943)

Maslow refers to these three stages as deficiency needs, asserting that if these three areas are not met then the individual will experience negative physiological and psychological consequences.(Maslow,1954)

Adopted from Forbes.com

What Maslow Missed

(H O N) model, Developed in 1948, the hierarchy of needs is pervasive across many disciplines, including business, management, marketing, parenting technology, education, and psychology.

Simple, orderly, intuitively sensible, cognitively appealing and offering order out of chaos, the hierarchy of needs has only one problem: it is plain, flat, and dead wrong. (Denning,2012)

It’s similar in some senses to video games in that you have to fulfill the requirements of one set of needs before you can get to the next level up.The third level in Maslow’s model comprises the social needs like family, affection, relationships, work groups, and community.

The human brain at the base is driven by a basic instinct to survive with food drink and shelter.

In reviews of research based on Maslow’s theory, little evidence has been found for the ranking of needs that Maslow described or even for the existence of a definite hierarchy at all.

The system of human needs from bottom to top, shelter, safety, sex, leadership, community, competence and trust, are dependent on our ability to connect with others.

Belonging to a community provides the sense of security and agency that makes our brains happy and helps keep us safe.” Whether it’s the ancient Savannah or today’s Facebook and Twitter, social behaviors adapt to the environment to support that most basic of human needs.(Rutledge,2011)

But it offered an unrealistic route to meeting those needs: ascension up the hierarchy of needs towards self-actualization. In reality, Rutledge’s rewired version of psychological needs suggests a more realistic set of multiple paths, through social connection, to meet our varying psychology needs. What it implies, and the experience of radical management confirms is that getting work done by people working together in self-organizing teams can meet most people’s psychological needs without positing unrealistic goals of self-actualization as the be-all and end-all of life.

References

A.Maslow, (1943). “A theory of human motivation”, vol.50, no.04, pp.370-396.

A.Maslow, (1954)."Motivation and personality",New York, NY: Harper.

S.King-Hill, 2015, “Critical Analysis of Maslow’s Hierarchy of Need”, The Step Journal, vol.02, no.04, pp.54-57.

S.Denning, 2012, “what Maslow missed”, Forbes, 29^th March,(https://www.forbes.com/sites/stevedenning/2012/03/29/what-maslow-missed/amp/) accessesed 28 Nov. 2017 at 6.00am.

P.Rutledge, 2011,"Social networks:What Maslow misses",Psychology today,8th November, (https://www.psychologytoday.com/blog/positively-media/201111/social-networks-what-maslow-misses-0), accessed 28 Nov. at 6.15a.m.

TALENT MANAGEMENT

Learning and Development (UNILEVER)

Unilever uses management development (MD) as a strategic tool to help the organization meet it’s short and long-term goals. In recent years, Unilever has undergone a process of rapid change and MD has been important in communicating that change throughout the organization and equipping staff to deal with it. Key features that have made the MD programme work in this way for Unilever were: joint ownership and responsibility; identification of talent at all levels; explicit incorporation of own wishes; company interests can take precedence over group interests; one system worldwide; performance‐development related pay; and total transparency. In addition, performance development planning is highlighted as a major component of the programme.

Unilever has gone through a process of rapid change and management development has been very useful in communicating it in the organization and also training staff to deal with the change.

They formed a Unilever Learning Academy which offers career skills maps and providing employees with a perfect understanding of their development and also the ability to access tools essential to build a successful career.

It became the basis for developing a career, allowing each individual manager to be in control of their learning and development.They make sure that their people have the right set of skills through the ‘talent and organization readiness’ assessment programme which was launched in2009.

They believe that when employees have the chance to develop themselves, the organization can reach outstanding performance growth, it is not only when they concentrate on the consumer which would not only result in low-performance growth for the organization but also have an undesirable impact on consumers.

Unilever says,

We believe attracting, developing and retaining the right people are crucial to our growth strategy. Our Talent and Organisation Readiness Assessment Programme ensure that our people have the skills they need to manage the business through periods of growth. Here at Unilever, we believe that to create a sustainable future and maintain long-term growth, people are fundamental to our success. From developing great leaders to investing in learning – so that we achieve our vision – we do everything we can to create a skilled, motivated and engaged workforce. Empowering people to become leaders is critical to our core purpose: making sustainable living commonplace and ensuring Unilever’s long-term growth and success.

References

Unilever and the Management Development Programme (2013) (http://wwwt.uniassignment.com/essay-samples/commerce/unilever-and-the-management-development-programme-commerce-essay.php?cref=1) accessed 21 November 2017 at 4.00pm

S.G. Reitsma, (2001) "Management development in Unilever", Journal of Management Development, Vol. 20 Issue: 2, pp.131-144,

Unilever Global, Learning and Development (https://www.unilever.com/careers/graduates/why-unilever/learning-and-development/) accessed on 21 Nov. 17 at 5.00pm

Employee / Employer Relationship

Employee / Employer Expectations

An employer is an organization, company, agency, industry, professional service firm, nonprofit association, small business store or individual who employs or puts work a person who is called an employee. (Susan M Heathfield, 2016)

An employee is hired for a specific job or to provide labor and who works in the service of the employer. (Jean Murray, 2017)

Employers are so difficult to figure out. They always hire talented client. They expect a Perfect Employee. To become a perfect employee, job seekers need to do self-assessment. They must think about what does employer want from them, what they need to know, how should they present themselves and what resources are available to help them prepare.

As employees, they should always be on time. They need to follow directions and accept feedback. It is not a good behavior text and talks on cell phones when while working. As a good employee, responsibilities must take very seriously. They need maintain a positive attitude at all times and treat to supervisors’ and co-workers with respect. And also they need to avoid “this is not my job” mentality. (Kristy Lockhart, 2013)

What employees expect in modern business? Employees want to be treated respectfully no matter what their job role may be. When talking about trust, they want to be able to trust management, and they want management to trust them to do their jobs. Employees want to have friends at work, work in a collaborative environment, and have a good relationship with their immediate supervisors. Modern employees are searching for more meaningful work in the modern business landscape. Employees want to choose when, where, and how work gets done and want to be recognized regularly for their contributions. (George Dickson, 2015)

Colgate Palmolive tops in deed’s list of the 25 best big companies for work-life balance. When management and employees are dedicated to their jobs and work hard during business hours, it gives them the flexibility to maintain a healthy personal life. In addition, Colgate-Palmolive offers some great benefits, such as flexible work hours, telecommuting options, and nearby backup childcare centers, which is a nice perk for work-at-home parents. As a result, Colgate-Palmolive has a high rate of employee retention, which is a testament to their culture.”

References:

APSE Connections, (2013) Employer expectations, K.Lockhart.

Forbes, (2013) the Best Big Companies for Work-Life Balance, J.Smith.

Jean Murray (2017) what is an Employee, Available at The balance (Accessed: 15-11-2015)

George Dickson (2015) Employee expectation in modern business

Susan M Heatfield (2016) what is the Definition of an Employer, Available at The balance (Accessed: 15-11-2017).

Employee expectation in modern business

Learning And Development

LEARNING

A learning and development strategy outlines how an organization develops its workforce's capabilities, skills and competencies to remain successful. It’s an important part of an organization's overall business strategy. Lancaster A. (2017).

Five key trends and best practices that companies should consider include the use of Mobile technology, following the way of social learning tools, consensus with organizational objectives, the ability to use adaptive learning principles, and efficiency.

Mobile has transformed the way companies work, interact, and collaborate.

Companies are rapidly adopting social media tools and investing in social collaboration tools to better engage their employees and foster a sculpture of learning.

Adaptive learning is a methodology that violates traditional models and allows employees to learn at their own pace.

Learning from the past worked in silos where learning professionals had little interaction or input from other parts of the business.

In order to determine whether the learning strategy is driving business results, companies should find a way to continue to measure its efficiency. Companies must determine advance measurements and include business measurement and learning. Wentworth. (2017).5 Trends for the Future of Learning and Development. (Online) Training Magazine. Available at: https://trainingmag.com/5-trends-future-learning-and-development (Accessed 7 Nov. 2017).

Karen May, Head of Personnel Operations at Google, explains that giving employees teaching roles makes learning a natural part of how employees work together, rather than what HR does to them. Nestle recently examined how learning could play a more strategic role in a world dominated by the need for innovation, agility and social, mobile and digital technology. To ensure that learning was not an isolated event but rather integrated into day-to-day work, the company implemented a series of video and digital presentations prior to the launch of the eLearning module. Through this apprenticeship program, the next generation of senior leaders was quickly introduced into a social and mobile world where agility and innovation are the disruptive norms. The pilot project served as the basis for how the company will use learning to conduct its program in a digital world where social and mobile must be part of each leader's toolbox. With the success of the pilot project, the learning team is evolving rapidly to reinvent other critical leadership programs. (Josh Haims et al, 2015)