Organization culture and its impact on Human Resource Policy
Posted on: April 12 2019, By : Shubham Naskar
Human Resource policies are the formal guidelines that organization follows to hire, train, assess and reward their workforce. Written policies are important so that it is clear to all what the policies are and that they are applied consistently and fairly across the organization. Policies should be developed in light of the objectives set by management. If objectives are the way the mission of the company gets carried out, then the policies help assure that objectives are met each and every day the organization exists.
Some basic human resource issues while writing policies are:
i) Equal employment opportunity policies
ii) Employee classifications
iii) Workdays, paydays, and pay advances
iv) Overtime compensation
v) Meal periods and break periods
vi) Payroll deductions
vii) Vacation policies
viii) Sick days and personal leave
ix) Performance evaluation and salary increases
x) Performance improvement
xi) Termination policies
One of the important factors to be considered while writing policy is the organizational culture. Different countries have different management and leadership style, policies and practices, hierarchal structure and control systems. Like Pay for performance scheme which is popular in US and UK, cannot be successfully practiced in another country. Similarly Japanese spend more money for social and recreational activities than Americans.
HR policy implementation services are provided by top HR consultancy in Mumbai for SME’s and Corporates.
Some General cultural changes that impact the human resource policies:
1) Recruitment policy: There are three types of cultural attitude an organization follows:
i) Ethnocentrism: Here one’s own culture is considered superior than others.
ii) Polycentrism: Parent company appoints a local manager in the foreign subsidiary
iii) Geo-centrism: Any person with the required qualification and experience is appointed.
2) Selection Policy: selection process varies in different organization. Some organizations follow extensive selection process whereas some follow short selection process. But most of the times, there is a screening process followed by sessions with professional psychologist who make you aware of the culture of the organization. Manpower consultancy in Mumbai takes care of cultural differences while developing policies.
3) Training & Development policies: HR managers find it difficult to train people from varied cultures. The significance of words & gestures is different in different countries and so does in organizations. You can take help from institute which provide HR Practical Training in Navi Mumbai.
4) Compensation Policy: This policy has to take in account various aspects like tax structure, cost of living, retirement policy, pension scheme etc. For a different country, the compensation paid should be always more than the amount he/she use to get in the home country. Manpower Agency in Mumbai provides a good framework to manage people in organization.
5) Motivation: The meaning of motivation differs from culture to culture. The motivation strategy should be culture specific. For e.g. Americans give more importance to work and less importance to wealth, whereas Chinese give more preference to self-achievement and riches.
6) Performance Appraisal: This depends upon who will be in charge of performance appraisals. In many organizations, discrimination takes place which leads to less job satisfaction. Performance appraisal should be uniform for all employees depending upon his/her position.
7) Leadership: Every organization follows a different leadership style. Some follow formal, some informal, some have tall structure while some have wide, some follow centralized structure and some are decentralized.
An organizational policy gives a view of how an employee of an organization acts and how management treats them. The management should identify any obsolete HR policy and update it accordingly. Job placement agencies in Mumbai provide guidelines to implement HR policies.
Policy also impacts the performance of employees. Policies reflect the values of an organization. An employee’s believe could be different than yours. Business owners worry about the impact of their values on employee performance. Organizational culture can be positively impacted by improved HR policies and values such as high performance. However, those policies will succeed more if you keep employees accountable. Study abroad consultant for UK in Mumbai gives a picture of the type of culture followed there.