The levers of HR and how it influences corporate culture

Abstract

Human Resource (HR) department, which organizes and manages the workforce of a company, plays a key role in creating, maintaining and changing a corporate culture. When performing Human Resource Management (HRM), the HR department uses tools in the areas of employee benefits, recruitment and training that shape the working environment for employees. Some companies may be restricted in the usage of HR tools due to structural and budget issues. In addition to that, the size of the company and amount of HR personnel are pivotal as not all HR tools will prove themselves feasible and effective. However, there are examples of large corporations that make use of a large variety of HR levers to create a particular working environment and employer brand. Despite certain HR levers, there are probably also other influencing factors for corporate culture. The aim of this article is to, based on the literature, discuss important levers of HR influencing Corporate Culture of an organization –namely, compensation systems, performance management, recruiting & talent management and Training & development. We also argue that before leveraging these four HR elements, it is crucial for HR professionals to fully understand the leadership’s requirements and expectations regarding corporate culture.