Wednesday, June 27, 2012

Corperate Culture and Human Resource Management Policies

Definiton of corperate culture

Culture refers to an organization's values, beliefs, and behaviors. In general, it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups. Cultural statements become operationalized when executivesarticulate and publish the values of their firm which provide patterns for how employees should behave.

Corporate culture refers to the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization's goals, strategies, structure, and approaches to labor. As such, it is an essential component in any business's ultimate success or failure.

Every company has a culture, though not every culture is beneficial in helping a company reach its goals. A healthy corporate culture is one in which employees are encouraged to work together to ensure the success of the overall business. Developing and maintaining a healthy corporate culture can be particularly problematic for entrepreneurs, as the authoritarian practices that helped establish a small business often must be exchanged for participatory management strategies that allow it to grow.

HealthyCorporateCulture

Since every company is different, there are many ways to develop a culture that works. Following are several main principles that small business owners should consider in order to create a healthy corporate culture:

Prevailing corporate culture begins at the top. Entrepreneurs need to explain and share their vision of the company's future with their workers. "Let your vision for the company become their vision for the company," stated O'Malley. "A company without a vision is reactive in nature, and its management is seldom confident addressing competitive threats and stepping into the future." In addition, small business owners should be aware that their own behavior and attitudes set the standard for the entire workforce. Small business owners who set poor examples in areas such as lifestyle, dedication to quality, business or personal ethics, and dealings with others (customers, vendors, and employees) will almost certainly find their companies defined by such characteristics.

Treat all employees equally. Entrepreneurs should treat all employees equally. This does not mean that business owners can not bestow extra rewards on workers who excel, but it does mean that interactions with all employees should be based on a foundation of respect for them. One particular pitfall in this area for many small business owners is nepotism. Many small businesses are family-owned and operated. But bloodlines should be irrelevant in daily operations.

Hiring decisions should reflect desired corporate culture. The wise small business owner will hire workers who will treat clients and fellow employees well and dedicate themselves to mastering the tasks for which they are responsible. After all, "good attitude" is an essential component of any healthy corporate culture. But entrepreneurs and their managers also need to make sure that hiring decisions are not based upon ethnic, racial, or gender issues. Besides, businesses typically benefit from having a diverse workforce rather than one that is overly homogeneous.

Two-way communication is essential. Small business owners who discuss problems realistically with their workforce and enlist employees' help in solving them will likely be rewarded with a healthy internal environment. This can be an important asset, for once a participatory and engaging culture has been established, it can help propel a small business ahead of its competition.

On the other hand, problems with the corporate culture can play a major role in small business failures. When employees only perform the tasks necessary to their own jobs, rather than putting out extra effort on behalf of the overall business, productivity declines and growth comes to a halt. Unfortunately, many entrepreneurs tend to ignore the developing cultures within their businesses until it is too late to make needed changes.

a. Cultural Levels

Edgar Shein describes the three levels of a corporate culture:

1. Surface Level: At this level, culture is both enacted and reinforced through visible appearances and behaviors, such as physical layouts, dress codes, organizational structure, company policies, procedures and programs, and attitudes.

2. Middle Level: Here, culture is manifested through our beliefs and values.
3. Deepest Level: At this level, culture is manifested throughbasicassumptions – our long-learned, automatic responses and established opinions.

b. Human Resources Management

Human Resource Management (HRM) is the term used to describe formal systems devised for the management of people within an organization. These human resources responsibilities are generally divided into three major areas of management: staffing, employee compensation, and defining/designing work. Essentially, the purpose of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees. This mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of change in the business world.

Until fairly recently, an organization's human resources department was often consigned to lower rungs of the corporate hierarchy, despite the fact that its mandate is to replenish and nourish the company's work force, which is often cited—legitimately—as an organization's greatest resource. But in recent years recognition of the importance of human resources management to a company's overall health has grown dramatically. This recognition of the importance of HRM extends to small businesses, for while they do not generally have the same volume of human resources requirements as do larger organizations, they too face personnel management issues that can have a decisive impact on business health.

c. Principles of Human Resource Management

Business consultants note that modern human resource management is guided by several overriding principles. Perhaps the paramount principle is a simple recognition that human resources are the most important assets of an organization; a business cannot be successful without effectively managing this resource. A third guiding principle, similar in scope, holds that it is HR's responsibility to find, secure, guide, and develop employees whose talents and desires are compatible with the operating needs and future goals of the company. Other HRM factors that shape corporate culture—whether by encouraging integration and cooperation across the company, instituting quantitative performance measurements, or taking some other action—are also commonly cited as key components in business success. HRM, summarized Armstrong, "is a strategic approach to the acquisition, motivation, development and management of the organization's human resources. It is devoted to shaping an appropriate corporate culture, and introducing programs which reflect and support the core values of the enterprise and ensure its success."

d. Effects of Culture and HumanResourceManagementPolicies

Over the past decade, the management of a firm's entire supply chain has become the process for building improved and stronger upstream and downstream business linkages. "Win-win" relationships, that utilize the strengths of other channel members, are created between supply chain partners (Katzorke and Lee 2000). While there are considerable discussions about the importance of supply chain relationships, less emphasis has been allocated to the concept of corporate culture and its role in facilitating or hindering these relationships.

Corporate culture is similar to a firm's personality in that it provides an organizational memory that minimizes the need to start over whenever personnel changes occur (Walsch and Ungson 1998). Organizational memory regulates communication flows both within the organization and between channel members by ensuring continuity of norms. Conversely, when shared norms are not reinforced by an organizational memory, information sharing appears to be less important and less expected. Research confirms that shared values positively influence both commitment and trust between a firm and its channel members (Morgan and Hunt 1994).

Human resource management policies, which directly influence and are influenced by corporate culture, also significantly impact supply chain members. That is, human resource decisions are important because, when firms hire personnel that meld with their company culture, these actions enhance shared social knowledge and increase consistency between employee and firm goals (Wilkins and Ouchi 1983). Shared social knowledge guides employees in making the right decision when confronted with novel situations (Weitz and Jap 1995).

Additional Comment :

Corporate culture is unique, dynamic abstract but depends on the vision and mission of leadership, patterns of interaction among the functions (systems) in the enterprise and intelligence of its employees attitude. In our opinion, culture can not be measured quantitatively because it is the spirit of a system.
Clarity of vision and mission leadership will determine which direction the company will be taken. Similarly, leadership skill in appreciating the uniqueness of each function.

The pattern of interactions between functions (system) will determine whether the system following the growing cycle, or otherwise become senescent. Model system are most easily understood model system in which each function has the attitude of guidance as well as controlling other functions but simultaneously nurtured and controlled by other functions.

But how quickly the company will grow (or old), still determined by how far the vision and mission internalized by all employees (internalization).
Medium intelligence employee attitudes will determine the quality of its employees working attitude. Intelligence attitude include competence, creativity, team-work, full of enthusiasm / optimistic, productive behavior, mentality growing, goal-oriented, achievement-motivated, think quality, be positive etc.

Corporate Culture or the Culture Company is the primary, so that when the Corporate Culture is created, the new corporate vision and mission will be more visible stuff to shape and accomplish the target can be achieved.

Corporate culture is one form of implementation strategy, which was preceded by the formulation strategy. Top-down management to determine company's first business model, after which it formulated its vision and mission.
The point is as long as its leader can manage, make a good relationship with all of staff and employees, the company will have a good culture.

To create those relationship, we could make an event, and invite all of the employees. Make an outbond, games, dinner, family gathering, quiz or any kind of event that will make all of those employees feel comfort and respect with its conmpany.

We can use a remuneration as well. It is a total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary. A number of complementary benefits, however, are increasingly popular remuneration mechanisms.

When you serve best to them, they will give you best as well. In this case, for the company. Company needs a employee and good image. It is easy to build a health culture but really hard to maintain it.

Leadership in Human Resource Management
  • Leadership Quality

  • Be a Sucessful Leader in Human Resource Management
  • Leadership Quality

Leadership can be defined as one's ability to get others to willingly follow. Every organization needs leaders at every level. Leaders can be found and nurtured if you look for the following character traits.

A leader with vision has a clear, vivid picture of where to go, as well as a firm grasp on what success looks like and how to achieve it. But it’s not enough to have a vision; leaders must also share it and act upon it.
A leader must be able to communicate his or her vision in terms that cause followers to buy into it. He or she must communicate clearly and passionately, as passion is contagious.
A good leader must have the discipline to work toward his or her vision single-mindedly, as well as to direct his or her actions and those of the team toward the goal. Action is the mark of a leader. A leader does not suffer “analysis paralysis” but is always doing something in pursuit of the vision, inspiring others to do the same.

Integrity is the integration of outward actions and inner values. A person of integrity is the same on the outside and on the inside. Such an individual can be trusted because he or she never veers from inner values, even when it might be expeditious to do so. A leader must have the trust of followers and therefore must display integrity.

Honest dealings, predictable reactions, well-controlled emotions, and an absence of tantrums and harsh outbursts are all signs of integrity. A leader who is centered in integrity will be more approachable by followers.

Dedication means spending whatever time or energy is necessary to accomplish the task at hand. A leader inspires dedication by example, doing whatever it takes to complete the next step toward the vision. By setting an excellent example, leaders can show followers that there are no nine-to-five jobs on the team, only opportunities to achieve something great.

Magnanimity means giving credit where it is due. A magnanimous leader ensures that credit for successes is spread as widely as possible throughout the company. Conversely, a good leader takes personal responsibility for failures. This sort of reverse magnanimity helps other people feel good about themselves and draws the team closer together. To spread the fame and take the blame is a hallmark of effective leadership.

Leaders with humility recognize that they are no better or worse than other members of the team. A humble leader is not self-effacing but rather tries to elevate everyone. Leaders with humility also understand that their status does not make them a god. Mahatma Gandhi is a role model for Indian leaders, and he pursued a “follower-centric” leadership role.

Openness means being able to listen to new ideas, even if they do not conform to the usual way of thinking. Good leaders are able to suspend judgment while listening to others’ ideas, as well as accept new ways of doing things that someone else thought of. Openness builds mutual respect and trust between leaders and followers, and it also keeps the team well supplied with new ideas that can further its vision.

Creativity is the ability to think differently, to get outside of the box that constrains solutions. Creativity gives leaders the ability to see things that others have not seen and thus lead followers in new directions. The most important question that a leader can ask is, “What if … ?” Possibly the worst thing a leader can say is, “I know this is a dumb question ... ”

Fairness means dealing with others consistently and justly. A leader must check all the facts and hear everyone out before passing judgment. He or she must avoid leaping to conclusions based on incomplete evidence. When people feel they that are being treated fairly, they reward a leader with loyalty and dedication.

Assertiveness is not the same as aggressiveness. Rather, it is the ability to clearly state what one expects so that there will be no misunderstandings. A leader must be assertive to get the desired results. Along with assertiveness comes the responsibility to clearly understand what followers expect from their leader.

Many leaders have difficulty striking the right amount of assertiveness, according to a study in the February 2007 issue of the Journal of Personality and Social Psychology, published by the APA (American Psychological Association). It seems that being underassertive or overassertive may be the most common weakness among aspiring leaders.

A sense of humor is vital to relieve tension and boredom, as well as todefuse hostility. Effective leaders know how to use humor to energize followers. Humor is a form of power that provides some control over the work environment. And simply put, humor fosters good camaraderie.

Intrinsic traits such as intelligence, good looks, height and so on are not necessary to become a leader. Anyone can cultivate the proper leadership traits.

Be a Sucessful Leader in Human Resource Management

The HRM have to fill these needs, since recruiting, training and educating new employees is important in maintaining the high standards of the organization.
It also deals in ensuring high quality performance to their current employees and dealing with performance issues. In addition, the HRM handles staff and management practices in conforming various regulations and policies. New projects and activities include managing tasks on how the company can approach employees with their benefits and compensation.
For small businesses, they handle these activities and tasks by themselves since they cannot afford to have a Human Resource management team. However, they should always be aware of the need to regulate personnel policies. These policies are mostly seen in human resource handbooks, which all employees should have.

You should also take note that the HRM's duty is mainly on major management activities. Since you are considering improving your career in the Human Resource Management department, leadership traits and trainings are important aspects in acquiring your dreams and goals in the company.
For large scale businesses, Coaching is providing feedback usually to the supervisors and executives on how they reach their personal best in their Human Resource leadership role. HRM coaches usually works with every manager and supervisors at every level in the company. This what makes the human resource coach as challenging and exciting. Here are some tips on how to become an effective leader or coach.
  • Effective coaches and leaders should define the boundaries of his relationship with his managers.

  • You should also pay attention to your team's concerns and issues. Allow yourself to receive feedbacks and comments on what areas you want to improve on.

  • Help the manager to obtain a 360 degree feedback and implement action plans to increase his capabilities as a good leader.

  • As a human resource management leader, you should push the window with each manager in assisting each employee to grow professionally. It is also important to promote the success of each employee in the company.

  • A good leader should always listen to his personnel in the organization. You should allow ideas and thoughts of your employees to help form the vision and mission of the organization.

  • You should provide each employee what they want and deserve within his capabilities. You can share rewards to your team if the organization is performing well.

  • You can set the pace through your own expectations and by examples.

  • Always establish an environment of continuous improvement.

  • Provide new opportunities to employees who deserve to grow. This can be professionally or personally

Success of businesses may depend on the capabilities of a good human resource management. Recruiting good leaders that want to take advantage of the knowledge, experience, and thoughtfulness of talented employees is important.
Lastly, Human resources management plays a major role in staffing, training and educating good leaders that will lead the company in a highly fulfilling manner.

Additional Comment :

The role of a direct leader in the workplace that directly relate to fixed operators as well as outsourcing are very important. They are the spearhead of added value, increasingproductivity and improving the quality of a product or service.

Direct election of a leader (foreman, sub-leader, part leader, etc.) are often based ontwo things: work experience, and work performance. The reality , not a few direct leader who initially successful as an employee achievement, then do not develop as a leader.

Therefore, as a "Front yard Leader" of the company's operations, besides these two things, to succeed in his role, they need to be equipped with effective leadership,tactical planning, developing subordinates, the process of coordination and instructionin implementing policy and strategy for aimlessly products and services that suitable with customer needs.

Why it have to be managed and well prepared ?

To gain the self-awareness and confidence needed to take on new leadership responsibilities. A session on the art of leadership will challenge you to develop your emotional intelligence by drawing a connection between the performing arts and the science of leadership.

Improve skills by identifying and managing strengths and development needs through constructive feedback from peers and a confidential. Learn more about leadership behaviors and the impact they have on others. Sharpen your leader selection and influencing skills by taking part in an interactive executive selection simulation.

Learn about strategic partnering, teamwork and coping with workplace challenges by revitalizing creativity. You will take part in an outdoor exercise to develop your problem-solving and strategic partnering skills.
Stimulate personal and career growth through self-directed development. Develop a plan of action, including a set of achievable goals through individual guidance in planning and goal setting.
Network with other human resource professionals.


References
  • http://www.referenceforbusiness.com/small/Eq-Inc/Human-Resource-Management.html
  •  http://findarticles.com/p/articles/mi_qa3705/is_200201/ai_n9060287/
  •  http://www.streetdirectory.com/travel_guide/20358/corporate_matters
  • human_resource_management_how_to_be_a_successful_leader.html
  • http://www.hrworld.com/features/top-10-leadership-qualities-031908/

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