How Corporate Culture Impacts HR Strategy

Corporate Culture is one of key elements for Human Resources. Corporate Culture is a very difficult complex of corporate values, decision processes and human behavior in each organization.

Generally, the Corporate Culture consists of 4 main building blocks:

  • the attitudes,
  • experiences,
  • beliefs.
  • values

The Corporate Culture is not born, it evolves and develops over a longer period of time and it is not created by the single person. The corporate culture forms the norms in the organization. The corporate culture is the most important aspect, when evaluating the formal and informal decision processes in different organizations. The corporate culture with the stress on informal behavior of employees will definitely lead to less formal decision processes and will support the quick reaction to the external changes on the market.

It is not possible to say, that one Corporate Culture is better than the other one. Each Corporate Culture is very unique and the external observer can just make a judge about the general approach and stresses inside the corporate culture.

HRM is responsible for recognizing the competitive advantages in the corporate culture. On the job market the corporate culture can be an excellent opportunity for the company to differ from the competitors. In case the other competitors are really formal companies, the informal company can win a lot of excellent candidates, just based on the fact of the informal corporate culture.

HRM is many time responsible for corporate culture, but this is a nonsense. The corporate culture is not set by Human Resources and it is not set by any internal procedure. The corporate culture is set by the behavior of top management and the potential change of the corporate culture is a very long run, which fails many times as the top management does not demonstrate the will to change the corporate culture by its own decisions and examples.

For Human Resources the corporate culture is a huge challenge to adjust its own behavior and style – internally and externally. The corporate culture is in many cases the most important factor to sell the organization as the best employer in the neighborhood. For HRM, the corporate culture is a very important input for setting the HR Strategy.