Management, People and Team

Table of Contents


Organisation Culture and HRM...

2.1 Motivation, Conflicts and communication in Organisation.

2.2 HRM Theories.

2.2.1 Division of Labor theory by Adam Smith.

2.2.2 Maslow’s Hierarchy of Needs Theory.



1.Introduction to The Mediating Effect of Organisation Culture

Strategic People management is related with the human capital of an organisation. In the modern highly competitive environment, business entities need to adopt new strategies and policies for its workforce. Employee motivation, communication and training are three basic Human Resource Management (HRM) policies to boost employee performance. Organization culture reflects the shared ideas, values and beliefs of an organization that guide the HRM policies such as training, staffing, manpower forecasting and motivation of employees. The outcome of business organisations mostly depend upon its human resource planning (Mariappanadar, 2019).

2. Organisation Culture and HRM

Organisation culture (OC) is defined as social or general bonding between employees of an organisation and it differs in different industries and sectors. OC in healthcare industry is completely different than that in other industries sectors. It is the shared values and principles to mold the behavioral patterns of people in an organisation (Kharabsheh et al., 2017). The OC also guide the pattern of employee communication in organisations. Due to dynamic market environment, there is also transition in the OC patterns. The company’s aims, missions and work ethics are reflected in its OC that also guide its human resource policy. The effective HRM policy is most crucial part of the successful business strategies of organisations. The selection of personnel by Human Resource (HR) manager must be merit based and same principle should be strictly adhered into other HR processes such as performance appraisal, compensation and training (Inbaraj).

2.1 Motivation, Conflicts and Communication in Organisation

Employee motivation is the one of key aspects of the strategic HRM planning. It refers to performance enhancement of employees through monetary and non-monetary incentives. The monetary incentives include performance based cash rewards and salary increments that prompt employees for high performance and quick adaptation to the new technological environment. The non-monetary incentives include creation of healthy work environment, recognition of employee’s achievement and positive communication. There is wide social and cultural diversity in a large organisation and that result communication barriers between employees and affect their overall productivity. Autocratic leadership in organisations also creates a sense of distrusts and unrest among staff members against the management. The employee-management conflicts also arise due to restructuring and inadequate compensation plans of organisation. The HRM policy therefore must be carefully conceived and executed within organisation to address issues pertaining to human capital of organisation.

2.2 HRM Theories

The theories of HRM has been extracted from multiple disciplines such as Philosophy, Sociology, Psychology, Economics and Education. Each human resource theory elaborates HRM function of an organisation in a unique way.

2.2.1 Division of Labor theory by Adam Smith

Adam Smith, a renowned economist of 17th century unveiled Division of Labor Theory in his research journal titled, “An inquiry into the Nature and Causes of the Wealth of Nations”. He described that tasks of organisation should be fragmented into smaller ones and each smaller task segment should be assigned to specific workers. The purpose of the division of labor is to make workers more productive and efficient at workplace (Tian, 2018).

However, the Division of labor theory is not relevant in the present days of automation and cloud computing. We can see that many job profiles are now being integrated and merged into one single task in many organisations that creates adverse impact on the workers.

2.2.2 Maslow’s Hierarchy of Needs Theory

The Theory of Hierarchy of Needs was presented by a noted psychologist Abraham Maslow in 1943. According to Maslow, human needs appear in hierarchical pattern and they are physiological, safety, social, self-esteem and self-actualization. He described that physiological needs such as food, clothing and shelter appears first in the list of human needs. Once these needs are satisfied, people look for next level which is safety needs. The safety needs of individuals encompasses job security, financial security and safety at workplace. At last appears self-actualization needs of people. It is the top level of human needs that define the full utilization of a person’s capability, talents and skills (Suyono & Mudjanarko, 2017). The Maslow’s need theory also does not depict exact picture of human needs. Many of us do not consider social and self-actualization needs so important at workplace. From my own past experience, I can say that human needs do not appear exactly as suggested by Maslow.

3. Conclusion on The Mediating Effect of Organisation Culture

HRM policies are crucial in the management of workforce of an organisation. It frames OC and path for effective employee communication within an organisation. However, frictions between employee and management also appear because of unilateral decisions of organisations. There are various theories pertaining to human resource management. Maslow’s hierarchy of needs theory depicts human needs into five categories, each coming at successive level. However, in reality we don’t find human needs follow any hierarchical pattern.

4. References for The Mediating Effect of Organisation Culture


Kharabsheh, O. H., Alias, R., & Ismail, M. (2017). The Mediating Effect of Organisation Culture on Transformational Leadership and Turnover Intention in Jordanian Public Hospitals. Available at SSRN 3012101.

Mariappanadar, S. (2019). Sustainable Human Resource Management: Strategies, Practices and Challenges. Macmillan International Higher Education.

Suyono, J., & Mudjanarko, S. (2017). Motivation Engineering to Employee by Employees Abraham Maslow Theory. Journal of Education, Teaching and Learning, 2(1), 27-33.

Tian, L. (2018). Division of Labor and Extent of the Market: Theory and Evidence from Brazil.

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