Organizational Culture and Performance †Free Samples to Students

Question: Discuss about the Organizational Culture and Performance. Answer: Introduction Human resource management is one of the most essential activities for any business organization. The effectiveness of the various HRM activities such as recruitment and selection, performance appraisal, career management, staff induction, occupational health and safety determines the effectiveness of the organizational activities. However, the organizational culture has a strong impact on the various HRM activities and the effectiveness varies widely with the differences in the organizational culture. This assignment highlights the two most essential HRM activities namely performance appraisal and recruitment and selection and highlights the effects of organizational culture, on these activities. The organization culture includes the foundation beliefs of the organization on which the values and beliefs on the organizations lie. The shared values include the way people work, dress, behave as well as perform their jobs successfully. It is essential that the organizational culture be i n coordination with the HRM activities, such as the performance appraisal and recruitment and selection. The importance of the organizational culture is highlighted, along with its impact on the performance appraisal and recruitment and selection of the personnel. Performance appraisal The performance appraisal activities refer to the activity that identifies the good performance of the employees and ensures the increase in the pay or recognition of the efforts of the employees (Alvesson Sveningsson, 2015). The performance appraisal program is directed towards motivating the high performances of the employees, along with encouraging the other employees to enhance their performances (Dusterhoff, Cunningham MacGregor, 2014). Performance appraisal has a key role to play in encouraging the employees to work diligently, towards the fulfillment of the organizational goals. The organizational culture has a major impact on the performance appraisal of the employees (Breaugh, 2017). Each organization has a different way of performance appraisal. In some organization, the performance appraisal is done through recognitions and rewards given to the employees. However, in some other organizations, the performance appraisal is done through given bonus and financial benefits to the employees. Performance appraisal might be in form of additional benefits given to the employees, or extended leaves that the employees get as a benefit of performance appraisal (Deepa, Palaniswamy Kuppusamy, 2014). Promotions and consideration into the next career level are also some of the forms of performance appraisal. The form of the performance appraisals that is prevalent in any business organization depends on the organizational culture (Alvesson Sveningsson, 2015). The organizational culture that recognises the good work of the employees and appreciates the efforts being given by the employees results in achievement of employee satisfaction and employee retention (Hogan Coote, 2014). However, if the organizational culture is not positive enough to recognize the performance of the employees, then the employees might not be motivated to work diligently (Dusterhoff, Cunningham MacGregor, 2014). Lack of encouragement from the senior officials might result in lack of eff ective work and lack of enhancement of the performances (Cummings Worley, 2014). Thus, the organizational culture has a strong influence on the performance appraisal. Many of the business organizations, with a weak foundation and lacking positive organization culture, might never engage themselves in the performance appraisal activities, thus resulting in de-motivated employees and a negative work place culture (Dusterhoff, Cunningham MacGregor, 2014). Thus, the organizational culture provides a strong platform of recognizing the employees and their efforts, thus resulting in the encouragement and motivation in the employees. Recognizing the performance of the employees and awarding them effectively is an essential HRM activity that reflects the positivity and encouragement in the culture of the organization (Alvesson Sveningsson, 2015). Thus, the organizational culture has a key role to play in the performance appraisal of the employees, along with providing adequate encouragement to them, to continue the good work (Gordon, 2017). Moreover, the performance appraisal program also encourages the weak performing employees to compete with the high performers, thus encouraging healthy competition among the employees. The motivation provided to the employees through the performance appraisal programs helps them to retain the high performance and thus enhances the business activities. Organization culture and performance appraisal shares a strong dependency on each other (Dusterhoff, Cunningham MacGregor, 2014). The activity of performance appraisal being executed highlights the positivity in the organization al culture. However, an encouraging organizational culture includes the HRM activity of performance appraisal. Recruitment and Selection One of the major HRM activities that have a key role to play in the business organization is the recruitment and selection of the personnel for the successful achievement of the organizational goals (Alvesson Sveningsson, 2015). The process of recruitment is a critical one, as the success of the organization depends on the personnel being selected. The organizational culture effects the recruitment and the selection process positively (DeNisi Smith, 2014). Large organizations, with an enriched organizational culture, includes a huge amount of investments for the recruitment and selection process, thus ensuring that a pool of candidates are selected and interviewed, in order to select the best employees from the shortlisted pool (Alvesson Sveningsson, 2015). Moreover, the cultural richness of the business organizations also ensures that the employees with the best skills could be recruited (Florea Mihai, 2014). Rich organizational culture is also helpful in aligning the newly recr uited candidates with the organizational work culture (Dusterhoff, Cunningham MacGregor, 2014). A rich and positive organizational culture incorporates openness and flexibility, thus ensuring flexibility in the recruitment process (Alvesson Sveningsson, 2015). However, if the organizational culture is narrow-minded and negative, then the newly recruited employees will find it difficult to adjust in the organization. A culturally enriched business organization ensures job stability of the employees, along with achievement of employee satisfaction. Such organizations refrain from engaging in discrimination of any form (Burke, 2017). Discrimination based on sex, race, age, genders are not practiced in such business organizations, thus ensuring a positive and effective recruitment and selection process. Thus, the recruitment and the selection process are more transparent if the organizational culture is enriched (OReilly et al., 2014). However, if the organizational culture is not based on a strong foundation, then the recruitment and selection process might be manipulative (Dusterhoff, Cunningham MacGregor, 2014). Thus, the success and the effectiveness of the organizational recruitment process, lies in the strength of the foundation of the organizational culture. Thus, the organizational culture has a key role to play in enhancing the recruitment and selection process of any business organization . The cultural stability of a business organization will attract more potential candidates, thus enhancing the human resource of the business organization. Thus, organizational culture has a key role to play in the process of recruitment and selection. Conclusion The organizational culture is an important for the business organization and the HRM activities. The HRM activities such as recruitment and selection and performance appraisal are significantly impacted by the organizational culture. The positivity in organizational culture enhances the employee performance appraisal as well as the recruitment and selection process, such that these HRM process could be effectively executed. The relation between the performance appraisals and organizational culture is strong as a positive organizational culture ensures performance appraisal process. However, lack of ineffective organizational culture will result in lack of performance appraisal activities. Moreover, the recruitment and the selection process is also much more transparent, if the organizational culture is strong and invincible. Thus, the organizational culture shares a strong and positive relation with the performance appraisal of the employees as well as the recruitment and selection p rocess. Thus, the organizational culture has to be developed effectively, to provide a positive platform to the employees for the successful achievement of the organizational goals. 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