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.