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Critical Perspectives on HRM in Britain

Research shows that when an organisation is able to achieve a cohesive and unified organisational culture, it improves problem-solving capacity within a firm and leads to enhanced organisational performance (Yilmaz and Ergun 2008). Furthermore, a longitudinal study conducted by Kotter and Heskett (1992) discovered that having a cohesive organisational culture was correlated with a 765 percent improvement of business incomes for the investigated organisations occurring between 1977 and the year 1988.With such evidence of organisational improvement and enhanced problem-solving capacity as a result of developing a cohesive organisational culture, it would appear that it is, indeed, desirable for senior managers to seek to change their organisational cultures if it is determined that existing culture in insufficient for enhancing organisational performance. However, change resistance is commonplace in many organisations in which managers become the victims of illogical and irrational employee responses when organisational members are faced with change (Ford, Ford and D’Amelio 2009). Hence, it might not be feasible to seek change of culture as a result of the intensity of psychological retaliation imparted upon management when attempting to elicit cultural change.There appears to be significant evidence that seeking to change organisational culture maintains a variety of benefits for an organisation. O’Donnell (2006) asserts that when an organisation maintains a cohesive culture, culture can facilitate development of innovations that support an organisation’s goals. For many organisations, especially those that operate in saturated competitive markets, the capability of an organisation in achieving many innovative outputs serves as a predictor of competitive advantage and holistic organisational performance. Kalyanaram and Gurumurthy (2008) describe an example of being a first mover in a new market where a firm

Critical Perspectives on HRM in Britain