The strategic role of human resource management in

developing a global corporate culture

By: Rowden, Robert W
Publication: International Journal of Management
By Date: Saturday, June 1 2002

HEADNOTE

Having a well-defined corporate culture is important as globalization transforms the way business is conducted. A
well-defined corporate culture can create an atmosphere for success. Today's Human Resource departments have
taken on a strategic role as a change agent and a business partner in the company. Human Resource strategies can
be powerful tools for signaling cultural change and reinforcing those changes once they are made. Strategic Human
Resource Management helps the organization see promising and positive results by operating on a global level.

One of the hottest buzzwords coming into the millennium has been "globalization." Today, globalization is
transforming the way business is conducted by dictating that operating within a personal vacuum will no longer be
possible. Thus, the corporate world has found itself catapulted into the global arena due to the emergence of the
Internet and other forms of communication, and an increase in the numbers of international mergers and acquisitions.
Any business that wants to succeed in this rapidly changing, highly competitive environment must be able to adapt,
evolve, and operate on a global scale. Success on a global level now goes beyond dollars and cents. With
competition so fierce, the race is now on to place human capital at the very center of a sustainable competitive
advantage (Gratton, 1998). In addition to looking toward its people, companies should examine their unique
characteristics-anything to separate them from the competition. Looking to organizational culture as a competitive
advantage is not a new idea. It is now more important than ever because of the narrow margin between companies
globally.

This article examines why having a well-defined culture is so important, and the strategic roll Human Resources plays
in giving businesses a "global" competitive advantage through defining and developing the culture of an organization.

There are some very important questions that must be asked before addressing the strategic role of the Human
Resources department in creating and defining corporate culture on a global scale. The three main questions that
need to be addressed are:

 What is Corporate Culture?

 Why is developing a Corporate Culture so important?
 Where to begin?
What is Corporate Culture?

Schein (1992) has defined corporate culture as "the way we do things around here". More recently it has been called
"the glue that binds an organization together" (Schell & Solomon, 1997). Others define it as "the shared basic
assumptions and beliefs developed by an organization over time" (Greene, 1995). The culture of any organization
can express who you are, where you want to go, and what you value externally and internally. It is important
because, "it's the sum of total values, virtues, and accepted behaviors (both good and bad)..." (Bliss, 1999, pg. 8). In
reality, Corporate Culture is a combination of all of those definitions and more. Another way to look at it is to think of it
as the rudder of a ship, though a small part of the vessel; it will dictate the direction that the entire ship will go.

Essentially, a well-defined corporate culture is critical for business success today because it can create an
atmosphere for success. One quality that successful organizations share is that they build sound infrastructures. If a
company's success is measured by the skill, energy and dedication of its "human capital," then surely managers
need to start thinking about how to create a cultural infrastructure that defines, nurtures, and harnesses the power of
this critical resource (Marchone & Jenkins, 1999)

Where does an organization begin?

Generally, it starts with two-way communication. Inquire within and without about what kind of image or position the
company holds with employees and investors. Ask senior executives how they would describe the culture, followed
by an organizationwide survey of employee opinions to validate the information provided (Bliss, 1999). Also,
assessing the surrounding environment is a good tool for gauging image. Take a look at what other successful
organizations are doing and follow suit.

Answers to those questions are critical, as HR departments have been given the task of creating a corporate culture
with global applications (Schell & Solomon, 1997). Today's Human Resources departments have taken on a strategic
role as a change agent and a business partner in the company (Anonymous, 1996). Why is such a large task being
given to a department that for a long time has only been thought of as the people who handle the hiring and firing of
employees? HR Departments typically are in constant communication with the employees (current and potential),
shape and implement the benefits and development packages of the organization, and they have access to
resources that other departments may not have. Human Resources strategies can be powerful tools for signaling
cultural change and reinforcing those changes once they are made (Greene, 1995). It's only logical that such a
department would be strategically involved with defining and strengthening the culture within organizations.
Successful organizations have found a powerful alliance within what was formerly called Personnel and now may be
referred to as Strategic Human Resources Management (SHRM). Knowing the strategic value of HR, organizations
are utilizing the people and environmental resources that HR departments have access to.

Schell and Solomon (1997) correctly predicted that in the year 2000 Human Resources has become:

 Closely linked to business strategy plans

 Jointly conceived and implemented by line and HR Managers
 Responsive to a highly competitive marketplace and global business structure
 Focused on quality, customer services, productivity, employee involvement, teamwork and work flexibility.
Attributes of a Winning Corporate Culture

Earlier, corporate culture was defined as the characteristic manner in which things are done in an organization. The
culture is an asset for the organization if this manner of doing things is the most adequate for achieving success in
the organization's competitive environment. If the culture does not encourage the behaviors necessary for the
organization to compete successfully in its environment, the culture is a liability for the organization. Organizations
can achieve a strategic culture by the careful planning of Human Resource practices that promote behavioral norms
necessary for achieving the organization's strategy and the deliberate selection of candidates who share the desired
values that reinforce the organization's cultural norms (Bonache & Cabrera, 1999).

Sometimes behavioral norms emerge due to the fact that organizational members share certain values that cause
them to have expectations as to which behaviors are appropriate and which are not. In other situations,
organizational rules and practices determine norms. Therefore, cultural norms are determined by both values and
organizational practices (Bonache & Cabrera, 1999).

An organization's competitive position is stronger if positive organizational norms are followed more strictly. To
achieve a strong organizational culture, Human Resource practices must send messages to the employees regarding
the behavior expected of them that would allow the organization to achieve its strategic objectives, and HR must
carefully select employees with values congruent with those values that support the organizational norms (Bonache &
Cabrera, 1999).

HR practices provide information and shape the behavior and experiences of employees and become the means
whereby cultures are created and sustained. The careful design of the organization's HR practices is necessary for
the creation of norms that will support an organization's business strategy. To accomplish this, an organization's
business strategy must first be determined. HR strategies are being linked with the mainstream strategies of the
organization as management moves in a direction that acknowledges and values the link between the workforce and
overall company success. When an organization embraces Strategic Human Resources Management, the human
resources planning process doesn't followthe business plan; it becomes a part of business planning (Tokesky &
Komides, 1994). Senior SHRM professionals report directly to the CEO. They spend about half of their time advising
the CEO on how people issues such as, forecasts, diversity programs and the right sizing of units dovetail with
operating plans (Anthony, 1995). This link with management makes their knowledge and expertise critical to other
parts of the organization when plans are being made and implemented. The support from senior management is
critical in whatever strategic steps HR will take in conjunction with other levels of management to establish and
reinforce the culture of their organization on a global scale. Managers in these organizations will require global skills
and cultural fluency (Schell & Solomon, 1997). As Gratton states, "placing people processes as the link between
business goals and individual behavior brings its own challenges and necessitates a whole new set of rules and
human resources capabilities. But to understand these rules brings the potential for a renewed partnership between
line managers and human resources professionals" (1998).

In order to be responsive to the competitive market place and global business structure, HR professionals will have to
begin to think and act strategically and be culturally aware. Strategic HR departments will serve a link to the corporate
community as far as what trends are occurring and in the way businesses are setting themselves up. Awareness of
the changing trend in organizational structure to a flatter, more flexible organizations, mergers and acquisitions or
partnerships between corporations is critical as well (Tokesky & Komides, 1994). Top executives and upper
management will rely on the experience of HR professionals to train and prepare them to think and act on this
broader level as well.

In order to implement a global minded culture into their organization, HR Professionals will have to utilize various
recruiting and training & development techniques to attract the best talent possible that will support this changing
structure. HR Professionals are seeking to hire employees that share and will promote the goals and visions of the
organization. Employees are seeking to work for a company that will value their knowledge, provide an opportunity for
growth, treat them fairly, and respect them personally. Organizations have to be able to act fast to attract and obtain
these employees. This can pose a big challenge to HR professionals because the employment market has become
very competitive and diverse now that many foreign barriers have come down and more businesses are setting up
shop in various parts of the world and this has caused the employment pool to grow.

Great people with expertise, initiative, and imagination are the center of successful businesses. Employers should
select the best people and set them free, and they will develop the best ideas and the most effective follow-ups.
When the best are let loose, they will develop the right technology and the optimal application for it. They will figure
out how to use available resources to connect with each other and develop the most exciting products, extraordinary
cost reductions, the most dazzling customer services, the most lucrative niches, and the most viable investment
opportunities. The organization with the best minds perpetually collaborating is the one that wins (Harari, 1998).

To attract and retain the best people, a company must offer competitive pay and good health benefits. The company
also needs "better people managers" and "honest" managers who will walk their talk. Another fast-rising requirement
is a family-friendly environment that includes benefits such as daycare, spousal support, flextime, job sharing, and
telecommuting opportunities (Harari, 1998). People will perform well and produce more in a rewarding and enjoyable
workplace in which they feel comfortable (Gibbons, 2000). Companies that offer promising work climates will be the
most successful in competing for talented employees. People employed at the 100 Best Companies to Work For cited
meaningful work, inspirational leadership, and great facilities as the three characteristics of the most promising work
environment (D'prix, 1999).

Organizations should view the hiring process as a search for a fit-which encompasses alignment between the
individual return-on-investment (ROI) needs and investment returns that the organization can offer (Davenport, 1999).
During the recruiting process, HR professionals must be able to communicate what the direction of the organization is
to the potential candidates. This will allow both the recruiter and candidate to assess whether a match is possible.
Hiring people who aren't aware of the corporate culture can cost the organization (Bliss, 1999).

When addressing this range of diversity, HR professionals will be challenged with structuring equitable policies,
programs and procedures that is mindful of the diverse lives and backgrounds of their (current and potential)
employees, while at the same time maintaining the integrity of the corporate mission. Some of the avenues that many
organizations are adopting based on recommendation by HR include: telecommuting, flexible work hours, job/office
transfers, sensitivity training, and a wide range of personal and professional development programs. Some global
organizations have multiple benefits policies and procedures that are structured to accommodate the needs of the
various employees.

Henceforth, the task of creating and communicating the culture of the organization has a two-fold reach and poses a
challenge. Not only must it be communicated to the employees but also to executive management. As noted by
Anonymous, "melding a common vision is no easy task; communicating it consistently across cultures is even more
difficult. Yet, coalescing various nationalities and cultures into a streamlined organization capable of speed, teamwork
and flexibility will become essential to ratcheting up profits and productivity" (1996).

So, in essence, "globalization" has not posed an unconquerable challenge, but it has provided a huge stepping-stone
for businesses that once operated as individual islands to now work as a whole. This task has been rightfully given to
HR departments who, working in conjunction with other areas of management, are seeing promising and positive
results by operating on a "global" level. Organizations must look within to develop a strong infrastructure that will
allow them to stand apart from other organizations. Through the knowledge of HR professionals, organizations will be
equipped to create an environment within that will attract and retain the brightest and best talent who supports and
enhances their long-term goals.
Summary
This article defined that culture is so important, and the strategic roll Human Resources plays in giving
businesses a "global" competitive advantage through defining and developing the culture of an
organization.

There are some questions that must be asked before addressing the strategic role of the Human
Resources department in creating and defining corporate culture on a global scale

 What is Corporate Culture?

 Why is developing a Corporate Culture so important?
 Where to begin?

Corporate culture is "the way we do things around here", "the glue that binds an organization together” ,
"the shared basic assumptions and beliefs developed by an organization over time".

The culture of any organization can express who you are, where you want to go, and what you value
externally and internally. Culture is the sum of total values, virtues, and accepted behaviors (both good
and bad).

Organization starts with two-way communication. Inquire within and without about what kind of image or
position the company holds with employees and investors.

Answers to those questions are critical, as HR departments have been given the task of creating a
corporate culture with global applications. Today's Human Resources departments have taken on a
strategic role as a change agent and a business partner in the.

Human Resources strategies can be powerful tools for signaling cultural change and reinforcing those
changes once they are made Successful organizations have found a powerful alliance within what was
formerly called Personnel and now may be referred to as Strategic Human Resources Management
(SHRM).

The culture is an asset for the organization if this manner of doing things is the most adequate for
achieving success in the organization's competitive environment. Organizations can achieve a strategic
culture by the careful planning of Human Resource practices.

HR practices provide information and shape the behavior and experiences of employees and become the
means whereby cultures are created and sustained. The careful design of the organization's HR practices
is necessary for the creation of norms that will support an organization's business strategy.

In order to be responsive to the competitive market place and global business structure, HR professionals
will have to begin to think and act strategically and be culturally aware. Strategic HR departments will
serve a link to the corporate community as far as what trends are occurring and in the way businesses
are setting themselves up. Top executives and upper management will rely on the experience of HR
professionals to train and prepare them to think and act on this broader level as well.

In order to implement a global minded culture into their organization, HR Professionals will have to utilize
various recruiting and training & development techniques to attract the best talent possible that will
support this changing structure. HR Professionals are seeking to hire employees that share and will
promote the goals and visions of the organization. Employees are seeking to work for a company that will
value their knowledge, provide an opportunity for growth, treat them fairly, and respect them personally.
Organizations have to be able to act fast to attract and obtain these employees.

Employers should select the best people and set them free, and they will develop the best ideas and the
most effective follow-ups. To attract and retain the best people, a company must offer competitive pay
and good health benefits. The company also needs "better people managers" and "honest" managers
who will walk their talk. During the recruiting process, HR professionals must be able to communicate
what the direction of the organization is to the potential candidates. This will allow both the recruiter and
candidate to assess whether a match is possible. Organizations must look within to develop a strong
infrastructure that will allow them to stand apart from other organizations.

Opinion
According to my opinion culture is most important for any organization.in order to compete with the global
world organization must have a good culture in it.human resource is playing a very important role in
making the organization culture.Todays HR practices give the way to create an ethical culture which is
good for the organization strategy.the norms which is create by the culture in the organization should be
according to the global practices.another thing is to involve the employees in the organization activities so
they can contribute their efforts.HR practices should be done in a way so that they can help the
employees to share and promote the objective of the organization. To share and promote the objective
employer must have to hire those people who are responsible and effective. So to create an effective
culture and gain global competitive advantage organization has to offer competitive pay and good health
benefits.