Analysis of SHRM theory and models:
Strategies can be taken as diverse approaches that organisation practices in order to gain competitive advantage. Analysing Strategic Human Resource Management theories in the context of organisational culture can bring insight on how to resolve the above-mentioned key issues effectively. Various theories and their implications in SHRM are discussed as;
Organisational Cultural Theory:
This theory explains how organisational culture impacts employee behavior and overall performance. It is explained as strong, intangible force among people working together and how it affects their behavior (Büschgens et al. 2013). This theory emphasizes upon importance of aligning business strategy with the culture. It shapes the assumptions and determine which information can be beneficial for the organisation. Organisational culture theory does not explicitly address the diversity, it may not support it fully either. Similarly poor communication can undermine this theory. This issue can be countered by promoting inclusion and taking initiatives when developing core cultural values, with such practices that address biases and support diversity. For this purpose, clear communication is necessary for the desired cultures. Regular feedback mechanisms can address this concern.
Resource-Based View:
The Resource-Based View is a theory that suggest that for an organisation to gain competitive advantage the resources must be rare and must not have substitute. It means that there must be unique capabilities in workforce including in SHRM. Any misalignment with the strategic goals and organisational culture may undermine Resource Based View, as employees with their unique contributions may lack job satisfaction (Collin, 2022). This can be tackled by organisational cultures supporting the strategic goals. This can be done by implementing cultural values while hiring, performance management and reward systems. For maintaining unique capabilities investing in the employee’s skillset is necessary.
Social Exchange Theory:
This theory suggests that relationships and interaction between individuals and the organisation is based on the reciprocal exchange of the values. There exist situations when employee might feel disadvantaged when it comes to value or reward received as their contribution to the organisation. If there are inefficient feedback mechanisms there can be perceived lack of value among the employees within the organisation (Cropanzano et al. 2017). This can be avoided if the employees feel that they are recognized and awarded for their contribution fairly and their expectations and concerns are being addressed. This can only be achieved by fair practices and efficient support systems that encourages constructive dialogues and review employee participation.
High- Performance Work System Theory:
High Performance Work System focuses in ways that develop practices that enhance employees’ capabilities and performance. It provides comprehensive training, positive work environment and performance-based rewards. If not practiced the lack efficient work system can lead to lower motivation and disinterest (Kehoe and Wright, 2013).
Similarly, if there exists no proper system there will be no maintenance of ethical standards. HPWS encouraging high performance work practices by training programs, performance management and reward systems that aligns with desired cultural value. In order to practice cultural integrity and adherence to standards one should incorporate HPWS (Dorta-Afonso et al. 2021).
By implementing the above-mentioned SHRM theories, the alignment between the organisational culture and HRM strategies can be achieved that can address challenges and promote positive and efficient organisational culture.
