Recommendation
Increasingly complex international business environment makes organization provoke vigorous debates on the role of human resource management and development of the sustainable competitive advantage through human capital and intangible resources. Watkins (2013) that while there is a universal agreement on the fact that concept of organizational culture is known and it plays the crucial role in shaping organizational strategies and behaviors, there is little agreement on what this organizational culture actually is and what it encompasses. Schein (2010) defines organizational culture as a set of values and rituals, which serve as a way to collectively, build a description of an organization from within and outline behaviors. With that in mind, one can argue that internal and external relationships, as well as HRM practices, build on the concept of organizational culture.
One of the important discussions in the scope of organizational development is the influence of the culture on training and development in the company. The reality is that organizational culture is a way to build bonds between the individual and the workgroup and create a feeling of belonging. In other words, company culture shapes employee motivation (McGregor and Doshi, 2015). There are many ways in which culture can affect training and development. Some of the most common examples of such influence are the approach that the company takes with regards to measuring performance and rewarding employees. As such, performance compensation schemes based on incentive-based appraisal systems and Key Performance Indicators (KPIs) are the popular and effective way to boost personal and professional development within a given organizational culture. Another example is the influence of the culture on training. Organizations, who recognize the role of human capital as an integral part of their long-term sustainable advantage, tend to invest in training and development programs. Management Development Programs, Talent Management, and other HR initiatives are some of the examples of cultural influence on training.
As it was previously defined, culture is a way to create a bond between individuals and the work groups, by providing a definition a definition of the company through defined set of values and rituals. This allows building on a profile of organizational leadership and creating a link between strategic goals of the company and internal organizational assets. Succession planning is the key to sustainable development and effectiveness in the face of severe environmental pressure. It provides organizations with the flexibility to adapt to external environments as well as respond to change. One of the examples is the leadership development program, where the companies prepare the management to specific ways of changing an individual behavior of subordinates to avoid resistance to change. In this case, cultural continuity is the key to avoiding uncertainty and misunderstanding. Secondly, changing business environment makes organizational cultures evolve. One of the most recent examples of this evolution is the internal organizational change that ensures that organizational culture adopts Corporate Social Responsibility (CSR)-driven thinking in its core.
Technological development and increased use of smartphones and tablets outline the direction in which the social environment develops. The emergence of social media websites, such as Twitter, Facebook, Instagram, Snapchat and many others represent the significant external force that influences strategic and operational decisions of the companies in the contemporary environment. When organizations think about marketing and social media strategy, however, they mostly focus on external environment and the external stakeholders. While this focus is critical, these companies cannot consider the impact that social media has on its internal stakeholder-employee. The boundaries between online and offline social interaction are becoming more blurred in the era of digitalization and internationalization.The attitude and position that employees take in their social media interaction define if organizational culture works for or against the company. Some of the well-known examples include the expression by employees of frustration and opinion about their superiors on Facebook that become publicly available and can be judged externally. This affects organizational culture in a negative way, outlining low levels of motivation and opening the discussion on work environment and cultural values to other stakeholders. Another example is the social marketing strategy. Many companies use social media to promote their social and environmental programs. The direct line and the opportunity to "spread the word" is an effective and non-costly way to promote the organizational culture and, consequently, positively affect the brand image.
While social media provides individuals and groups with an effective way to share their knowledge, the benefits of social media and the limitations of this communication process are evident. The benefits include the wide access to knowledge base, fast and transparent information flow and economic way of gaining the public. The downsides of focusing on social media, at the same time, include the lack of control over the use of this information and the type of public that is reached by the employees. That said, employees can share their knowledge and opinion about the company through social media and this can equally hurt and benefit the organization. Inaccurate social media postings or lack of understanding of the consumer psychology along with malware risks can bring significant damage to the organization and send the inapropriate social message to the external stakeholders (Sadler, 2003).
Organizational culture is a result of collective and individual efforts which allow companies create an environment, which motivates and builds on higher retention rates among their stakeholders. While this culture is a way to define and differentiate the group through cultural continuity, it should be built in a way that allows change and responsiveness to the increasingly complex external environment.
References
Sadler Ph (2003). Strategic Management. 2nd Edition. London: Kogan Page Limited
Watkins M.D. (2013). What is Organizational Culture and Wy Should We Care? Harvard Business Review [Online]. Retrieved 25 May 2016, https://hbr.org/2013/05/what-is-organizational-culture
McGregor L. and Doshi N. (2015). How Company Culture Shapes Employee Motivation. Harvard Business Review [Online]. Retrieved 25 May 2016, https://hbr.org/2015/11/how-company-culture-shapes-employee-motivation
Schein E. (2010). Organizational Culture and Leadership. New York: John Willey & Sons. Print.
