Friday, January 10, 2020

How does a better organizational culture result in a better customer service in Banking sector

Definitions.


The organizational culture is a subject which came in to discussion most recently. We found that many definitions were given by many authors, scholars and researchers where most of them has come in to a conclusion that this refers to a system of values, beliefs & behavior shared among employees. The definition given by Schein, (2004) is considered as the most famous and the succinct one which defines the organizational culture as a pattern of basic assumptions that a group has invented or located in learning to cope with its external adaptation and internal integration problems and that have performed well enough to be considered true and therefore to be taught to new members as the right way to view, think and feel these problems.
Reichers and Schneider, (1990) argued that the culture of the organization is as a product of a formal and informal exchange of rules, activities and procedures. Moreover, Organizational culture is a set of values, symbols and behaviors shared by members of a particular corporation that explains how things are done in an organization to address both internal and customer-related management problems, suppliers and the environment (Calver et al, 2001).

Features of organizational culture.


As Simsek and Fidan, (2005) showed there are three main features of organizational culture which define the subject well in many definitions.

1. Values shared by individuals - This is about that the employees have common values about the good and bad or what behaviors are desired or undesirable. In other words this explains how people should behave in the organization.

2. Acceptance of the values - These values are not mentioned anywhere. Not written in a book or not providing as training or whatever. These has to be developed by employees themselves as composed of ideas and beliefs.

3. Symbolic meanings of the values for employees - This is where the learning through the interaction between people within the organization. 

In Banking sector ?


In Banks in Sri Lanka, the current market is developing with a customer service oriented environment where all Banks are focusing on gaining the competitive advantage in serving their customers with an outstanding service. Before the private Banks come in to play, the state banks maintained a different organizational culture where the customers were not treated as the key element of their business. But, the banks in the private sector implemented a culture in their organizations where its customers always receive a better service and that made a revolutionary change in the banking sector.  

Implementing a customer service oriented background is not an easy task as the organizations are occupied with different set of employees with different ideas and attitudes. Its a challenging task for the employer to develop a such culture, but mainly through the job satisfaction, the values can be implemented in favor of a better customer service. Job satisfaction is mainly describing the employee's feeling about their job. A productive working environment can construct a particular organizational culture and the experience of employees' job satisfaction (Schneider and Synder, 1975). Robbins, (1993) emphasized that since the dimensions of job satisfaction can be identified as organizational components hence the job satisfaction is an evaluation of organizational culture. 

Job satisfaction as a motive for implementing an organizational culture focusing a better customer service.      


In general, we can identify that Bank employees are quite satisfied with their work as better working conditions are available most of the time in their organizations. But some times employees are less satisfied with their remuneration & the promotion opportunities offered by the organization (Belias et al, 2015). Even though these kind of negative motives are there, employees are still engaging in achieving their objectives in a positive manner since the other working conditions such as social recognition, financial & non-financial benefits, better professional working environment, technological development & etc of the organization can be motivated them. Accordingly, the leaders were able to gain the advantage of this and built up an organizational culture which can drives the bank towards a better customer service.  



References


Belias, D. et al. (2015) ‘Organizational Culture and Job Satisfaction of Greek Banking Institutions’, Procedia - Social and Behavioral Sciences. Elsevier B.V., 175, pp. 314–323. doi: 10.1016/j.sbspro.2015.01.1206.

Claver, E., Llopis, J., González, M. R., & Gascó, J. L. (2001) The performance of information systems through organizational culture. Information Technology & People, 14(3), 247-260.

Reichers, A. E., & Schneider, B. (1990) Climate and culture: An evolution of constructs. Organizational climate and culture, 1, 5-39.

Robbins, S.P. 1993 (Cited in Belias D. et al, 2015). Organizational behaviour, concepts, controversies and applications. (6th Ed.). Englewood Cliffs.vNew Jersey: PrenticeHall. 

Schneider, B & Snyder, R.A. 1975 (Cited in Belias D. et al, 2015). Some relationship between job satisfaction and organizational climate. Journal of Applied Psychology, 60(3), 318−328. 

Schein, E.H. (2004) Organizational culture and Leadership, 3rd Edn. Jossey-Bass: San Francisco.

Şimşek, N., & Fidan, M. 2005 (Cited in Elagoz I et al, no date) Corporate culture and leadership. Tablet Bookstore, Konya.





Wednesday, January 8, 2020

Is globalization a challenge for HRM ?


"Globalization" is a subject which has many definitions with number of arguments & it can be applied and affected in several areas in the business world today. This blog brings a summarized idea how the globalization affects in HRM & we expect to discuss whether the globalization is a challenge for HRM.  

Globalization & HRM


  We can simply define the globalization as a process which drawing people together from all nations/countries of the world in to a single community. In today's organizations, HRM is affected by many factors & the globalization plays a principle role when an organization is moving towards the global market. Accordingly, globalization has exposed a vast capacity for HRM where it has to be focused on recruitment, management and providing directions for the people within an organization. 
  HR managers do not need to focus on a small market today to find the right workers to meet the global challenge, because today they can hire employees from all over the world. Due to this, the human resource management up to some extent has become more effective. Being the people factor is most important in today's organizations, this change has considerably affected the HRM. Managing the diversity of the workforce from around the world is the main task of a HR manager when  dealing with the global HRM (Jabbour et al, 2011).

The effect of globalization on HRM


According to Noe et al, (2000) Culture, Economic system, Political system & the human capital of a country are the factors which affect HRM in global markets. Since the global supply of talent is less than the long term demand, the employers are facing many difficulties  to acquire sufficient & quality resources. This is specially true for highly skilled jobs that require specialized knowledge. HR must not only find qualified applicants, they must also locate them in locations around the world. To fulfill this, HR department must devise suitable strategies to locate the required people or develop the existing resources. Moreover, compensation, benefits and labor relations are some of separate areas of HRM which affected by the globalization. Compensation elements that motivate and retain employees in different countries may differ. Managing compensation in multi national companies is much difficult due to the varied employee pay expectations and perceptions of pay fairness (Graham and Trevor, 2000). Talking further expatriation, communication & the training requirements also can be identified as factors which affect HRM in global market in many ways.


Is it a challenge ?


As we discussed earlier, the demand for talented individuals is likely to grow faster than the growing percentage of the talented individuals. So the gap has to be filled by the HR by following strategic methods. Staffing, selecting and retaining talented employees, training and development, encouraging employees to be innovative and creative will also be in a challenging environment & it has to be properly addressed & find solutions without a fail in order to gain the competitive advantage in the global market.

Further, enhancing global business strategy, aligning HRM with business strategy, How to design & lead change, How to build a global corporate culture & How to develop leaders are most important questions & the challenges face by HRM which can be identified as results of globalization (Varma, 2017). 

It also remains the greatest challenge for human resource departments of global organizations to manage and distribute a diverse workforce in culture and language skills in different countries. HRM has a huge responsibility to build up a global mindset among the organizations' employees as they have to deal with not only the local consumers but with the global market. 

At the heart of globalization, multinational organizations need to learn how to integrate diverse value systems and share common global work values in order to create an environment in which workers can communicate and coordinate their activities to achieve common goals.


Reflection


According to the summarized principal factors we discussed above, it can be clearly identified that the globalization is a challenge for HRM & HRM has to play a vital role with in an organization when its driving towards its vision through the globalized market conditions. But again, globalization is also creating opportunities for HRM to reach the required solutions or develop strategies in order to positively take over the challenges.     


References

Graham, M. E., & Trevor, C. O. (2000). Managing new pay program introduction to enhance the competitiveness of multinational corporations (MNCS). Competitiveness Review, 10(1), 136–154.

Jabbour et al, (2011) ‘Diversity management: Challenges, benefits, and the role of human resource management in Brazilian organizations’, Equality, Diversity and Inclusion, 30(1), pp. 58-74.

Noe, R. A., Hollenbeck, J. R., Gerhart, B. & Wright, P. M. 2000. Human Resource Management: Gaining a Competitive Advantage, 3rd Edn. 

Varma, V. (2017) ‘Globalizing Human Resource Management : Role, Responsibilities and Challenges’, (5), pp. 20–24.