Good HR practices reflects positively on the organisational culture and behaviour. This can be demonstrated through the lens of High-performance HR practices. There is mounting evidence from the field of strategic human resource management that implementing HR practises with a strong focus on improving employees’ skills, motivation, and output is strongly correlated with long-term success (Kataria, 2014). According to Caldwell and Floyd (2014), these systems emphasize employee participation and reflect a commitment to fostering a culture based on commitment rather than control at work. With the help of HPWS, businesses can foster an environment where workers feel like true contributors to the company’s success. Providing a safe workplace is one way to keep employees happy. Several researchers have found that businesses with rules in place to protect their workers attract and retain talented individuals who are invested in the success of the company (Hai et al., 2020). Human resources can also play a role through fostering a culture of shared responsibility, which can be implemented through decentralised decision making to instil the organisation’s values further and encourage greater levels of individual investment (Jiang & Liu, 2015). They accomplish this by forming self-managed teams whose members are highly trusted and given the freedom to make decisions on their own. For instance, within my organisation, employee involvement in active decision-making is highly encouraged. By giving all employees a voice in company-wide decisions, the company is able to consistently provide outstanding service as employees work to ensure client satisfaction at all times and have the freedom to decide how best to do so.
Human resources policies, however, may have unintended adverse effects on both culture and behaviour. A lack of trust, equity, courteous treatment, and opportunities for personal growth are just a few examples of the kinds of poor HR practises that contribute to a negative psychological climate at work and a toxic culture where employees are less likely to go out of their way to do their best (Katarina et al., 2019). It has been shown, for example, that companies that downsize and increase their use of temporary and contract workers in order to avoid creating obligations to employees rarely create new wealth or improve their long-term bottom line (Caldwell & Floyd, 2014). This is sometimes ascribed to workers accepting their transient status and being unmotivated or uncommitted to the company’s long-term vision or goals as a result. Employees are less likely to buy into the company’s vision and goals and devote time, energy, and emotional investment if the workplace lacks a supportive, involving, and challenging climate and does not accommodate the employees’ psychological needs.
In conclusion, human resource practices that view employees as valuable stakeholders and partners create a workplace where individuals are more motivated to generate value. This approach encourages them to actively pursue opportunities that help secure and maintain a competitive advantage
