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  1. 1. London School of Public Relations, Jakarta Kelompok 5 CaesarraRamadhanny – 2010140952 Denny Margianto – 2010141017 NadyaPutriSaraswati – 2010140837 NaztasyaOktariana – 2010140614 ShintaHawaThandari– 2010140901 14 – 5A9. Corperate Culture and Human Resource Management Policies9.1 Definiton of Corporate Culture9.2 HealthyCorporateCulture9.3 Culture Levels9.4 Human Resources Management9.5 Principles of Human Resource Management9.6 Effects of Culture and HumanResourceManagementPolicies9.1 Definiton of corperate cultureCulture refers to an organizations values, beliefs, and behaviors. In general,it is concerned with beliefs and values on the basis of which people interpret experiences and behave, individually and in groups. Cultural statementsbecome operationalized when executivesarticulate and publish the values of their firm which provide patterns for how employees should behave. Corporate culture refers to the shared values, attitudes, standards, and beliefsthat characterize members of an organization and define its nature. Corporateculture is rooted in an organizations goals, strategies, structure, and approaches 1
  2. 2. to labor. As such, it is an essential component in any businesss ultimate successor failure. Every company has a culture, though not every culture is beneficial in helpinga company reach its goals. A healthy corporate culture is one in which employeesare encouraged to work together to ensure the success of the overall business.Developing and maintaining a healthy corporate culture can be particularlyproblematic for entrepreneurs, as the authoritarian practices that helped establisha small business often must be exchanged for participatory managementstrategies that allow it to grow.9.2 HealthyCorporateCulture Since every company is different, there are many ways to develop a culturethat works. Following are several main principles that small business ownersshould consider in order to create a healthy corporate culture:Prevailing corporate culture begins at the top. Entrepreneurs need to explainand share their vision of the companys future with their workers. "Let your visionfor the company become their vision for the company," stated OMalley. "Acompany without a vision is reactive in nature, and its management is seldomconfident addressing competitive threats and stepping into the future." In addition,small business owners should be aware that their own behavior and attitudes setthe standard for the entire workforce. Small business owners who set poorexamples in areas such as lifestyle, dedication to quality, business or personalethics, and dealings with others (customers, vendors, and employees) will almostcertainly find their companies defined by such characteristics.Treat all employees equally. Entrepreneurs should treat all employees equally.This does not mean that business owners can not bestow extra rewards on workerswho excel, but it does mean that interactions with all employees should be basedon a foundation of respect for them. One particular pitfall in this area for manysmall business owners is nepotism. Many small businesses are family-owned andoperated. But bloodlines should be irrelevant in daily operations. 2
  3. 3. Hiring decisions should reflect desired corporate culture. The wise smallbusiness owner will hire workers who will treat clients and fellow employees welland dedicate themselves to mastering the tasks for which they are responsible.After all, "good attitude" is an essential component of any healthy corporateculture. But entrepreneurs and their managers also need to make sure that hiringdecisions are not based upon ethnic, racial, or gender issues. Besides, businessestypically benefit from having a diverse workforce rather than one thatis overly homogeneous.Two-way communication is essential. Small business owners who discussproblems realistically with their workforce and enlist employees help in solvingthem will likely be rewarded with a healthy internal environment. This can be animportant asset, for once a participatory and engaging culture has beenestablished, it can help propel a small business ahead of its competition. On the other hand, problems with the corporate culture can play a major rolein small business failures. When employees only perform the tasks necessary totheir own jobs, rather than putting out extra effort on behalf of the overallbusiness, productivity declines and growth comes to a halt. Unfortunately, manyentrepreneurs tend to ignore the developing cultures within their businesses until itis too late to make needed changes.9.3 Cultural LevelsEdgar Shein describes the three levels of a corporate culture:1. Surface Level: At this level, culture is both enacted and reinforced through visible appearances and behaviors, such as physical layouts, dress codes, organizational structure, company policies, procedures and programs, and attitudes.2. Middle Level: Here, culture is manifested through our beliefs and values.3. Deepest Level: At this level, culture is manifested throughbasicassumptions – our long-learned, automatic responses and established opinions.9.4 Human Resources Management 3
  4. 4. Human Resource Management (HRM) is the term used to describe formal systemsdevised for the management of people within an organization. These humanresources responsibilities are generally divided into three major areas ofmanagement: staffing, employee compensation, and defining/designing work.Essentially, the purpose of HRM is to maximize the productivity of anorganization by optimizing the effectiveness of its employees. This mandate isunlikely to change in any fundamental way, despite the ever-increasing pace ofchange in the business world.Until fairly recently, an organizations human resources department was oftenconsigned to lower rungs of the corporate hierarchy, despite the fact that itsmandate is to replenish and nourish the companys work force, which is oftencited—legitimately—as an organizations greatest resource. But in recent yearsrecognition of the importance of human resources management to a companysoverall health has grown dramatically. This recognition of the importance ofHRM extends to small businesses, for while they do not generally have the samevolume of human resources requirements as do larger organizations, they too facepersonnel management issues that can have a decisive impact on business health.9.5 Principles of Human Resource ManagementBusiness consultants note that modern human resource management is guided byseveral overriding principles. Perhaps the paramount principle is a simplerecognition that human resources are the most important assets of an organization;a business cannot be successful without effectively managing this resource. Athird guiding principle, similar in scope, holds that it is HRs responsibility to find,secure, guide, and develop employees whose talents and desires are compatiblewith the operating needs and future goals of the company. Other HRM factors thatshape corporate culture—whether by encouraging integration and cooperationacross the company, instituting quantitative performance measurements, or takingsome other action—are also commonly cited as key components in businesssuccess. HRM, summarized Armstrong, "is a strategic approach to the acquisition,motivation, development and management of the organizations human resources.It is devoted to shaping an appropriate corporate culture, and introducing 4
  5. 5. programs which reflect and support the core values of the enterprise and ensure itssuccess."9.6 Effects of Culture and HumanResourceManagementPolicies Over the past decade, the management of a firms entire supply chain hasbecome the process for building improved and stronger upstream and downstreambusiness linkages. "Win-win" relationships, that utilize the strengths of otherchannel members, are created between supply chain partners (Katzorke and Lee2000). While there are considerable discussions about the importance of supplychain relationships, less emphasis has been allocated to the concept of corporateculture and its role in facilitating or hindering these relationships. Corporate culture is similar to a firms personality in that it provides anorganizational memory that minimizes the need to start over whenever personnelchanges occur (Walsch and Ungson 1998). Organizational memory regulatescommunication flows both within the organization and between channel membersby ensuring continuity of norms. Conversely, when shared norms are notreinforced by an organizational memory, information sharing appears to be lessimportant and less expected. Research confirms that shared values positivelyinfluence both commitment and trust between a firm and its channel members(Morgan and Hunt 1994).Human resource management policies, which directly influence and areinfluenced by corporate culture, also significantly impact supply chain members.That is, human resource decisions are important because, when firms hirepersonnel that meld with their company culture, these actions enhance sharedsocial knowledge and increase consistency between employee and firm goals(Wilkins and Ouchi 1983). Shared social knowledge guides employees in makingthe right decision when confronted with novel situations (Weitz and Jap 1995).Additional Comment :Corporate culture is unique, dynamic abstract but depends on the vision andmission of leadership, patterns of interaction among the functions (systems) in theenterprise and intelligence of its employees attitude. In our opinion, culture can 5
  6. 6. not be measured quantitatively because it is the spirit of a system.Clarity of vision and mission leadership will determine which direction thecompany will be taken. Similarly, leadership skill in appreciating the uniquenessof each function.The pattern of interactions between functions (system) will determine whether thesystem following the growing cycle, or otherwise become senescent. Modelsystem are most easily understood model system in which each function has theattitude of guidance as well as controlling other functions but simultaneouslynurtured and controlled by other functions.But how quickly the company will grow (or old), still determined by how far thevision and mission internalized by all employees (internalization).Medium intelligence employee attitudes will determine the quality of itsemployees working attitude. Intelligence attitude include competence, creativity,team-work, full of enthusiasm / optimistic, productive behavior, mentalitygrowing, goal-oriented, achievement-motivated, think quality, be positive etc.Corporate Culture or the Culture Company is the primary, so that when theCorporate Culture is created, the new corporate vision and mission will be morevisible stuff to shape and accomplish the target can be achieved.Corporate culture is one form of implementation strategy, which was preceded bythe formulation strategy. Top-down management to determine companys firstbusiness model, after which it formulated its vision and mission.The point is as long as its leader can manage, make a good relationship with all ofstaff and employees, the company will have a good culture.To create those relationship, we could make an event, and invite all of theemployees. Make an outbond, games, dinner, family gathering, quiz or any kindof event that will make all of those employees feel comfort and respect with itsconmpany.We can use a remuneration as well. It is a total compensation thatan employee receives in exchange for the service they perform for their employer.Typically, this consists of monetary rewards, also referred to as wage or salary. A 6
  7. 7. number of complementary benefits, however, are increasingly popularremuneration mechanisms.When you serve best to them, they will give you best as well. In this case, for thecompany. Company needs a employee and good image. It is easy to build a healthculture but really hard to maintain it.10. Leadership in Human Resource Management10.1 Leadership Quality10.2 Be a Sucessful Leader in Human Resource Management10.1 Leadership Quality Leadership can be defined as ones ability to get others to willingly follow.Every organization needs leaders at every level. Leaders can be found andnurtured if you look for the following character traits.A leader with vision has a clear, vivid picture of where to go, as well as a firmgrasp on what success looks like and how to achieve it. But it’s not enough tohave a vision; leaders must also share it and act upon it.A leader must be able to communicate his or her vision in terms that causefollowers to buy into it. He or she must communicate clearly and passionately, aspassion is contagious.A good leader must have the discipline to work toward his or her vision single-mindedly, as well as to direct his or her actions and those of the team toward thegoal. Action is the mark of a leader. A leader does not suffer ―analysis paralysis‖but is always doing something in pursuit of the vision, inspiring others to do thesame.Integrity is the integration of outward actions and inner values. A person ofintegrity is the same on the outside and on the inside. Such an individual can betrusted because he or she never veers from inner values, even when it might beexpeditious to do so. A leader must have the trust of followers and therefore mustdisplay integrity. 7
  8. 8. Honest dealings, predictable reactions, well-controlled emotions, and an absenceof tantrums and harsh outbursts are all signs of integrity. A leader who is centeredin integrity will be more approachable by followers.Dedication means spending whatever time or energy is necessary to accomplishthe task at hand. A leader inspires dedication by example, doing whatever it takesto complete the next step toward the vision. By setting an excellent example,leaders can show followers that there are no nine-to-five jobs on the team, onlyopportunities to achieve something great.Magnanimity means giving credit where it is due. A magnanimous leaderensures that credit for successes is spread as widely as possible throughout thecompany. Conversely, a good leader takes personal responsibility for failures.This sort of reverse magnanimity helps other people feel good about themselvesand draws the team closer together. To spread the fame and take the blame is ahallmark of effective leadership.Leaders with humility recognize that they are no better or worse than othermembers of the team. A humble leader is not self-effacing but rather tries toelevate everyone. Leaders with humility also understand that their status does notmake them a god. Mahatma Gandhi is a role model for Indian leaders, and hepursued a ―follower-centric‖ leadership role.Openness means being able to listen to new ideas, even if they do not conform tothe usual way of thinking. Good leaders are able to suspend judgment whilelistening to others’ ideas, as well as accept new ways of doing things thatsomeone else thought of. Openness builds mutual respect and trust betweenleaders and followers, and it also keeps the team well supplied with new ideas thatcan further its vision.Creativity is the ability to think differently, to get outside of the box thatconstrains solutions. Creativity gives leaders the ability to see things that othershave not seen and thus lead followers in new directions. The most important 8
  9. 9. question that a leader can ask is, ―What if … ?‖ Possibly the worst thing a leadercan say is, ―I know this is a dumb question ... ‖Fairness means dealing with others consistently and justly. A leader must checkall the facts and hear everyone out before passing judgment. He or she must avoidleaping to conclusions based on incomplete evidence. When people feel they thatare being treated fairly, they reward a leader with loyalty and dedication.Assertiveness is not the same as aggressiveness. Rather, it is the ability to clearlystate what one expects so that there will be no misunderstandings. A leader mustbe assertive to get the desired results. Along with assertiveness comes theresponsibility to clearly understand what followers expect from their leader.Many leaders have difficulty striking the right amount of assertiveness, accordingto a study in the February 2007 issue of the Journal of Personality and SocialPsychology, published by the APA (American Psychological Association). Itseems that being underassertive or overassertive may be the most commonweakness among aspiring leaders.A sense of humor is vital to relieve tension and boredom, as well as todefusehostility. Effective leaders know how to use humor to energize followers. Humoris a form of power that provides some control over the work environment. Andsimply put, humor fosters good camaraderie.Intrinsic traits such as intelligence, good looks, height and so on are not necessaryto become a leader. Anyone can cultivate the proper leadership traits.10.2 Be a Sucessful Leader in Human Resource Management The HRM have to fill these needs, since recruiting, training and educating newemployees is important in maintaining the high standards of the organization.It also deals in ensuring high quality performance to their current employees anddealing with performance issues. In addition, the HRM handles staff andmanagement practices in conforming various regulations and policies. New 9
  10. 10. projects and activities include managing tasks on how the company can approachemployees with their benefits and compensation.For small businesses, they handle these activities and tasks by themselves sincethey cannot afford to have a Human Resource management team. However, theyshould always be aware of the need to regulate personnel policies. These policiesare mostly seen in human resource handbooks, which all employees should have.You should also take note that the HRMs duty is mainly on major managementactivities. Since you are considering improving your career in the HumanResource Management department, leadership traits and trainings are importantaspects in acquiring your dreams and goals in the company.For large scale businesses, Coaching is providing feedback usually to thesupervisors and executives on how they reach their personal best in their HumanResource leadership role. HRM coaches usually works with every manager andsupervisors at every level in the company. This what makes the human resourcecoach as challenging and exciting. Here are some tips on how to become aneffective leader or coach.1.Effective coaches and leaders should define the boundaries of hisrelationship with his managers.2.You should also pay attention to your teams concerns and issues. Allowyourself to receive feedbacks and comments on what areas you want toimprove on.3.Help the manager to obtain a 360 degree feedback and implement actionplans to increase his capabilities as a good leader.4.As a human resource management leader, you should push the window witheach manager in assisting each employee to grow professionally. It is alsoimportant to promote the success of each employee in the company.5.A good leader should always listen to his personnel in the organization. Youshould allow ideas and thoughts of your employees to help form the vision 10
  11. 11. and mission of the organization.6.You should provide each employee what they want and deserve within hiscapabilities. You can share rewards to your team if the organization isperforming well.7.You can set the pace through your own expectations and by examples.8.Always establish an environment of continuous improvement.9.Provide new opportunities to employees who deserve to grow. This can beprofessionally or personallySuccess of businesses may depend on the capabilities of a good human resourcemanagement. Recruiting good leaders that want to take advantage of theknowledge, experience, and thoughtfulness of talented employees is important.Lastly, Human resources management plays a major role in staffing, training andeducating good leaders that will lead the company in a highly fulfilling manner.Additional Comment :The role of a direct leader in the workplace that directly relate to fixed operators aswell as outsourcing are very important. They are the spearhead of addedvalue, increasingproductivity and improving the quality of a product or service.Direct election of a leader (foreman, sub-leader, part leader, etc.) are often basedontwo things: work experience, and work performance. The reality , not afew direct leader who initially successful as an employee achievement, then do notdevelop as a leader.Therefore, as a "Front yard Leader" of the companys operations, besides these twothings, to succeed in his role, they need to be equipped with effectiveleadership,tactical planning, developing subordinates, the processof coordination and instructionin implementing policy and strategy for aimlessly products and services that suitable with customer needs.Why it have to be managed and well prepared ? 11
  12. 12. To gain the self-awareness and confidence needed to take on new leadership responsibilities. A session on the art of leadership will challenge you to develop your emotional intelligence by drawing a connection between the performing arts and the science of leadership. Improve skills by identifying and managing strengths and development needs through constructive feedback from peers and a confidential. Learn more about leadership behaviors and the impact they have on others. Sharpen your leader selection and influencing skills by taking part in an interactive executive selection simulation. Learn about strategic partnering, teamwork and coping with workplace challenges by revitalizing creativity. You will take part in an outdoor exercise to develop your problem-solving and strategic partnering skills. Stimulate personal and career growth through self-directed development. Develop a plan of action, including a set of achievable goals through individual guidance in planning and goal setting. Network with other human resource professionals. References :  Management.html   _resource_management_how_to_be_a_successful_leader.html 12