1
London School of Public Relations, Jakarta
Kelompok 5
Caesarra Ramadhanny – 2010140952
Denny Margianto – 2010141017
Nadya Putri Saraswati – 2010140837
Naztasya Oktariana – 2010140614
Shinta Hawa Thandari – 2010140901
14 – 5A
9. Corperate Culture and Human Resource Management
Policies
9.1 Definiton of CorporateCulture
9.2 Healthy Corporate Culture
9.3 Culture Levels
9.4 Human Resources Management
9.5 Principles of Human ResourceManagement
9.6 Effects ofCultureandHumanResourceManagementPolicies
9.1 Definiton of corperate culture
Culture refers to an organization's values, beliefs, and behaviors. In general,
it is concerned with beliefs and values on the basis of which people interpret
experiences and behave, individually and in groups. Cultural statements
become operationalized when executives articulate and publish the values of
their firm which provide patterns for how employees should behave.
Corporate culture refers to the shared values, attitudes, standards, and beliefs
that characterize members of an organization and define its nature. Corporate
culture is rooted in an organization's goals, strategies, structure, and approaches

2
to labor. As such, it is an essential component in any business's ultimate success
or failure.
Every company has a culture, though not every culture is beneficial in helping
a company reach its goals. A healthy corporate culture is one in which employees
are encouraged to work together to ensure the success of the overall business.
Developing and maintaining a healthy corporate culture can be particularly
problematic for entrepreneurs, as the authoritarian practices that helped establish
a small business often must be exchanged for participatory management
strategies that allow it to grow.
9.2 Healthy Corporate Culture
Since every company is different, there are many ways to develop a culture
that works. Following are several main principles that small business owners
should consider in order to create a healthy corporate culture:
Prevailing corporate culture begins at the top. Entrepreneurs need to explain
and share their vision of the company's future with their workers. "Let your vision
for the company become their vision for the company," stated O'Malley. "A
company without a vision is reactive in nature, and its management is seldom
confident addressing competitive threats and stepping into the future." In addition,
small business owners should be aware that their own behavior and attitudes set
the standard for the entire workforce. Small business owners who set poor
examples in areas such as lifestyle, dedication to quality, business or personal
ethics, and dealings with others (customers, vendors, and employees) will almost
certainly find their companies defined by such characteristics.
Treat all employees equally. Entrepreneurs should treat all employees equally.
This does not mean that business owners can not bestow extra rewards on workers
who excel, but it does mean that interactions with all employees should be based
on a foundation of respect for them. One particular pitfall in this area for many
small business owners is nepotism. Many small businesses are family-owned and
operated. But bloodlines should be irrelevant in daily operations.

3
Hiring decisions should reflect desired corporate culture. The wise small
business owner will hire workers who will treat clients and fellow employees well
and dedicate themselves to mastering the tasks for which they are responsible.
After all, "good attitude" is an essential component of any healthy corporate
culture. But entrepreneurs and their managers also need to make sure that hiring
decisions are not based upon ethnic, racial, or gender issues. Besides, businesses
typically benefit from having a diverse workforce rather than one that
is overly homogeneous.
Two-way communication is essential. Small business owners who discuss
problems realistically with their workforce and enlist employees' help in solving
them will likely be rewarded with a healthy internal environment. This can be an
important asset, for once a participatory and engaging culture has been
established, it can help propel a small business ahead of its competition.
On the other hand, problems with the corporate culture can play a major role
in small business failures. When employees only perform the tasks necessary to
their own jobs, rather than putting out extra effort on behalf of the overall
business, productivity declines and growth comes to a halt. Unfortunately, many
entrepreneurs tend to ignore the developing cultures within their businesses until it
is too late to make needed changes.
9.3 Cultural Levels
Edgar Shein describes the three levels of a corporate culture:
1. Surface Level: At this level, culture is both enacted and reinforced through
visible appearances and behaviors, such as physical layouts, dress codes,
organizational structure, company policies, procedures and programs, and
attitudes.
2. Middle Level: Here, culture is manifested through our beliefs and values.
3. Deepest Level: At this level, culture is manifested throughbasic assumptions –
our long-learned, automatic responses and established opinions.
9.4 Human Resources Management

4
Human Resource Management (HRM) is the term used to describe formal systems
devised for the management of people within an organization. These human
resources responsibilities are generally divided into three major areas of
management: staffing, employee compensation, and defining/designing work.
Essentially, the purpose of HRM is to maximize the productivity of an
organization by optimizing the effectiveness of its employees. This mandate is
unlikely to change in any fundamental way, despite the ever-increasing pace of
change in the business world.
Until fairly recently, an organization's human resources department was often
consigned to lower rungs of the corporate hierarchy, despite the fact that its
mandate is to replenish and nourish the company's work force, which is often
cited—legitimately—as an organization's greatest resource. But in recent years
recognition of the importance of human resources management to a company's
overall health has grown dramatically. This recognition of the importance of
HRM extends to small businesses, for while they do not generally have the same
volume of human resources requirements as do larger organizations, they too face
personnel management issues that can have a decisive impact on business health.
9.5 Principles of Human ResourceManagement
Business consultants note that modern human resource management is guided by
several overriding principles. Perhaps the paramount principle is a simple
recognition that human resources are the most important assets of an organization;
a business cannot be successful without effectively managing this resource. A
third guiding principle, similar in scope, holds that it is HR's responsibility to find,
secure, guide, and develop employees whose talents and desires are compatible
with the operating needs and future goals of the company. Other HRM factors that
shape corporate culture—whether by encouraging integration and cooperation
across the company, instituting quantitative performance measurements, or taking
some other action—are also commonly cited as key components in business
success. HRM, summarized Armstrong, "is a strategic approach to the acquisition,
motivation, development and management of the organization's human resources.
It is devoted to shaping an appropriate corporate culture, and introducing

5
programs which reflect and support the core values of the enterprise and ensure its
success."
9.6 Effectsof Cultureand Human ResourceManagement
Policies
Over the past decade, the management of a firm's entire supply chain has
become the process for building improved and stronger upstream and downstream
business linkages. "Win-win" relationships, that utilize the strengths of other
channel members, are created between supply chain partners (Katzorke and Lee
2000). While there are considerable discussions about the importance of supply
chain relationships, less emphasis has been allocated to the concept of corporate
culture and its role in facilitating or hindering these relationships.
Corporate culture is similar to a firm's personality in that it provides an
organizational memory that minimizes the need to start over whenever personnel
changes occur (Walsch and Ungson 1998). Organizational memory regulates
communication flows both within the organization and between channel members
by ensuring continuity of norms. Conversely, when shared norms are not
reinforced by an organizational memory, information sharing appears to be less
important and less expected. Research confirms that shared values positively
influence both commitment and trust between a firm and its channel members
(Morgan and Hunt 1994).
Human resource management policies, which directly influence and are
influenced by corporate culture, also significantly impact supply chain members.
That is, human resource decisions are important because, when firms hire
personnel that meld with their company culture, these actions enhance shared
social knowledge and increase consistency between employee and firm goals
(Wilkins and Ouchi 1983). Shared social knowledge guides employees in making
the right decision when confronted with novel situations (Weitz and Jap 1995).
Additional Comment :
Corporate culture is unique, dynamic abstract but depends on the vision and
mission of leadership, patterns of interaction among the functions (systems) in the
enterprise and intelligence of its employees attitude. In our opinion, culture can

6
not be measured quantitatively because it is the spirit of a system.
Clarity of vision and mission leadership will determine which direction the
company will be taken. Similarly, leadership skill in appreciating the uniqueness
of each function.
The pattern of interactions between functions (system) will determine whether the
system following the growing cycle, or otherwise become senescent. Model
system are most easily understood model system in which each function has the
attitude of guidance as well as controlling other functions but simultaneously
nurtured and controlled by other functions.
But how quickly the company will grow (or old), still determined by how far the
vision and mission internalized by all employees (internalization).
Medium intelligence employee attitudes will determine the quality of its
employees working attitude. Intelligence attitude include competence, creativity,
team-work, full of enthusiasm / optimistic, productive behavior, mentality
growing, goal-oriented, achievement-motivated, think quality, be positive etc.
Corporate Culture or the Culture Company is the primary, so that when the
Corporate Culture is created, the new corporate vision and mission will be more
visible stuff to shape and accomplish the target can be achieved.
Corporate culture is one form of implementation strategy, which was preceded by
the formulation strategy. Top-down management to determine company's first
business model, after which it formulated its vision and mission.
The point is as long as its leader can manage, make a good relationship with all of
staff and employees, the company will have a good culture.
To create those relationship, we could make an event, and invite all of the
employees. Make an outbond, games, dinner, family gathering, quiz or any kind
of event that will make all of those employees feel comfort and respect with its
conmpany.
We can use a remuneration as well. It is a total compensation that
an employee receives in exchange for the service they perform for their employer.
Typically, this consists of monetary rewards, also referred to as wage or salary. A

7
number of complementary benefits, however, are increasingly popular
remuneration mechanisms.
When you serve best to them, they will give you best as well. In this case, for the
company. Company needs a employee and good image. It is easy to build a health
culture but really hard to maintain it.
10. Leadership in Human Resource Management
10.1 Leadership Quality
10.2 Be a Sucessful Leader in Human ResourceManagement
10.1 Leadership Quality
Leadership can be defined as one's ability to get others to willingly follow.
Every organization needs leaders at every level. Leaders can be found and
nurtured if you look for the following character traits.
A leader with vision has a clear, vivid picture of where to go, as well as a firm
grasp on what success looks like and how to achieve it. But it’s not enough to
have a vision; leaders must also share it and act upon it.
A leader must be able to communicate his or her vision in terms that cause
followers to buy into it. He or she must communicate clearly and passionately, as
passion is contagious.
A good leader must have the discipline to work toward his or her vision single-
mindedly, as well as to direct his or her actions and those of the team toward the
goal. Action is the mark of a leader. A leader does not suffer “analysis paralysis”
but is always doing something in pursuit of the vision, inspiring others to do the
same.
Integrity is the integration of outward actions and inner values. A person of
integrity is the same on the outside and on the inside. Such an individual can be
trusted because he or she never veers from inner values, even when it might be
expeditious to do so. A leader must have the trust of followers and therefore must
display integrity.

8
Honest dealings, predictable reactions, well-controlled emotions, and an absence
of tantrums and harsh outbursts are all signs of integrity. A leader who is centered
in integrity will be more approachable by followers.
Dedication means spending whatever time or energy is necessary to accomplish
the task at hand. A leader inspires dedication by example, doing whatever it takes
to complete the next step toward the vision. By setting an excellent example,
leaders can show followers that there are no nine-to-five jobs on the team, only
opportunities to achieve something great.
Magnanimity means giving credit where it is due. A magnanimous leader
ensures that credit for successes is spread as widely as possible throughout the
company. Conversely, a good leader takes personal responsibility for failures.
This sort of reverse magnanimity helps other people feel good about themselves
and draws the team closer together. To spread the fame and take the blame is a
hallmark of effective leadership.
Leaders with humility recognize that they are no better or worse than other
members of the team. A humble leader is not self-effacing but rather tries to
elevate everyone. Leaders with humility also understand that their status does not
make them a god. Mahatma Gandhi is a role model for Indian leaders, and he
pursued a “follower-centric” leadership role.
Openness means being able to listen to new ideas, even if they do not conform to
the usual way of thinking. Good leaders are able to suspend judgment while
listening to others’ ideas, as well as accept new ways of doing things that
someone else thought of. Openness builds mutual respect and trust between
leaders and followers, and it also keeps the team well supplied with new ideas that
can further its vision.
Creativity is the ability to think differently, to get outside of the box that
constrains solutions. Creativity gives leaders the ability to see things that others
have not seen and thus lead followers in new directions. The most important

9
question that a leader can ask is, “What if … ?” Possibly the worst thing a leader
can say is, “I know this is a dumb question ... ”
Fairness means dealing with others consistently and justly. A leader must check
all the facts and hear everyone out before passing judgment. He or she must avoid
leaping to conclusions based on incomplete evidence. When people feel they that
are being treated fairly, they reward a leader with loyalty and dedication.
Assertiveness is not the same as aggressiveness. Rather, it is the ability to clearly
state what one expects so that there will be no misunderstandings. A leader must
be assertive to get the desired results. Along with assertiveness comes the
responsibility to clearly understand what followers expect from their leader.
Many leaders have difficulty striking the right amount of assertiveness, according
to a study in the February 2007 issue of the Journal of Personality and Social
Psychology, published by the APA (American Psychological Association). It
seems that being underassertive or overassertive may be the most common
weakness among aspiring leaders.
A sense of humor is vital to relieve tension and boredom, as well as todefuse
hostility. Effective leaders know how to use humor to energize followers. Humor
is a form of power that provides some control over the work environment. And
simply put, humor fosters good camaraderie.
Intrinsic traits such as intelligence, good looks, height and so on are not necessary
to become a leader. Anyone can cultivate the proper leadership traits.
10.2 Be a SucessfulLeader in Human ResourceManagement
The HRM have to fill these needs, since recruiting, training and educating new
employees is important in maintaining the high standards of the organization.
It also deals in ensuring high quality performance to their current employees and
dealing with performance issues. In addition, the HRM handles staff and
management practices in conforming various regulations and policies. New

10
projects and activities include managing tasks on how the company can approach
employees with their benefits and compensation.
For small businesses, they handle these activities and tasks by themselves since
they cannot afford to have a Human Resource management team. However, they
should always be aware of the need to regulate personnel policies. These policies
are mostly seen in human resource handbooks, which all employees should have.
You should also take note that the HRM's duty is mainly on major management
activities. Since you are considering improving your career in the Human
Resource Management department, leadership traits and trainings are important
aspects in acquiring your dreams and goals in the company.
For large scale businesses, Coaching is providing feedback usually to the
supervisors and executives on how they reach their personal best in their Human
Resource leadership role. HRM coaches usually works with every manager and
supervisors at every level in the company. This what makes the human resource
coach as challenging and exciting. Here are some tips on how to become an
effective leader or coach.
1. Effective coaches and leaders should define the boundaries of his
relationship with his managers.
2. You should also pay attention to your team's concerns and issues. Allow
yourself to receive feedbacks and comments on what areas you want to
improve on.
3. Help the manager to obtain a 360 degree feedback and implement action
plans to increase his capabilities as a good leader.
4. As a human resource management leader, you should push the window
with each manager in assisting each employee to grow professionally. It is
also important to promote the success of each employee in the company.
5. A good leader should always listen to his personnel in the organization.
You should allow ideas and thoughts of your employees to help form the

11
vision and mission of the organization.
6. You should provide each employee what they want and deserve within his
capabilities. You can share rewards to your team if the organization is
performing well.
7. You can set the pace through your own expectations and by examples.
8. Always establish an environment of continuous improvement.
9. Provide new opportunities to employees who deserve to grow. This can be
professionally or personally
Success of businesses may depend on the capabilities of a good human resource
management. Recruiting good leaders that want to take advantage of the
knowledge, experience, and thoughtfulness of talented employees is important.
Lastly, Human resources management plays a major role in staffing, training and
educating good leaders that will lead the company in a highly fulfilling manner.
Additional Comment :
The role of a direct leader in the workplace that directly relate to fixed operators as
well as outsourcing are very important. They are the spearhead of added
value, increasing productivity and improving the quality of a product or service.
Direct election of a leader (foreman, sub-leader, part leader, etc.) are often based
on two things: work experience, and work performance. The reality , not a
few direct leader who initially successful as an employee achievement, then do not
develop as a leader.
Therefore, as a "Front yard Leader" of the company's operations, besides these two
things, to succeed in his role, they need to be equipped with effective leadership,
tactical planning, developing subordinates, the process
of coordination and instructionin implementing policy and strategy for aimlessly pr
oducts and services that suitable with customer needs.
Why it have to be managed and well prepared ?

12
 To gain the self-awareness and confidence needed to take on new leadership
responsibilities. A session on the art of leadership will challenge you to
develop your emotional intelligence by drawing a connection between the
performing arts and the science of leadership.
 Improve skills by identifying and managing strengths and development needs
through constructive feedback from peers and a confidential. Learn more
about leadership behaviors and the impact they have on others. Sharpen your
leader selection and influencing skills by taking part in an interactive
executive selection simulation.
 Learn about strategic partnering, teamwork and coping with workplace
challenges by revitalizing creativity. You will take part in an outdoor exercise
to develop your problem-solving and strategic partnering skills.
 Stimulate personal and career growth through self-directed development.
 Develop a plan of action, including a set of achievable goals through
individual guidance in planning and goal setting.
 Network with other human resource professionals.
References :
 http://www.referenceforbusiness.com/small/Eq-Inc/Human-Resource-
Management.html
 http://findarticles.com/p/articles/mi_qa3705/is_200201/ai_n9060287/
 http://www.streetdirectory.com/travel_guide/20358/corporate_matters/human
_resource_management_how_to_be_a_successful_leader.html
http://www.hrworld.com/features/top-10-leadership-qualities-031908/