Company Values in HRM: The use of company values in increase the effectiveness of Human Resource Management
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Journal Title
Journal ISSN
Volume Title
School of Business |
Master's thesis
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Author
Date
2018
Department
Major/Subject
Mcode
Degree programme
Management and International Business (MIB)
Language
en
Pages
66
Series
Abstract
Objective of the study In the Human Resource Management literature, company culture has been established as a potential source of competitive advantage. However, while company culture can be a great asset, developing and managing one can be a very difficult ordeal. This study aims to explore and shed light into the building blocks of culture: company values. Looking at values from the point of view of HRM, the study will answer three research questions: 1) How can companies identify their company values? 2) How can companies use their company values to improve their HRM? and 3) What kind of benefits can a company gain from linking values with HRM practices? Methodology and analytical framework The data for the research was collected through six semi structured interviews. Three different companies were selected for the interviews, and from them, an HR manager and a regular employee were interviewed. Value programs are often a ‘pet project’ of the HR department, thus an employee was interviewed to see beyond the prepositions of the party that conducted the program. This separation allowed the study to explore not only the reasons behind the implementation of value programs, but also the perceived worth of the programs in the company. The interviews focused on the theoretical framework of 1) Strategic selection of values, 2) Operational selection of values, 3) Use of values in HRM, and finally 4) Feedback loop of evaluation of values. Findings and conclusions The study found that value programs are used in various strategic purposes, but they are rarely implemented in a way that gives full benefit for the company. It was found that companies tend to focus on either core/cornerstone values, or internal/operational values, but rarely have both working together for full benefit. Cornerstone values were used to ground the company and give its employees a clear direction for the long-term. Companies with cornerstone values saw increased employee satisfaction in the long term, as well as minor benefits in value driven decision making. Operational values on the other hand, were used to guide the everyday behavior of the employees in a way that best supports the long-term vision and mission of the company. Operational values greatly benefitted the company culture and climate, proving a strong tool for strategic human resource management. It was also found, that evaluation of the value program was very important, not only in continuous improvement, but also for the credibility of the entire program. Employees pay special attention to the evaluation of value programs, as a measure of their importance for the management, and thus the company.Description
Thesis advisor
Koveshnikov, AlexeiKeywords
company values, company culture, strategic human resource management, value program
