Explain How Culture Influences Human Resource Practices

Explain how culture influences human resource practices and employee management

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COMPETENCY: Explain how culture influences human resource practices and employee management.

CRITERION: Explain how culture influences HR practices and employee management in this case study.



Faculty Comments: “Don’t forget that this must ultimately be not only supported, but championed by the CEO in order for it to really change.

I experienced a similar situation as head of HR for a company. I was hired specifically to create improvements in a toxic culture which was largely due to the fact that the CEO doesn't like people.... We were able to work around him to make significant improvements, but when he finally started supporting our efforts, there was an immediate lift.”

Paper For Above instruction

Explain how culture influences human resource practices and employee management

The influence of organizational culture on human resource (HR) practices and employee management is profound and multifaceted. Culture shapes how organizations attract, retain, develop, and motivate their employees. It influences policies, leadership styles, communication norms, and decision-making processes. In the context of multinational corporations, understanding cultural nuances becomes even more essential as organizations operate across diverse cultural settings. This paper analyzes these influences through a case study of Riot Games and discusses critical elements such as leadership support, diversity, and inclusion.

Organizational culture serves as a foundation that guides HR initiatives, including recruitment practices, onboarding, training, performance evaluations, and employee engagement strategies. For example, in organizations with a culture that values innovation and agility, HR policies tend to favor flexibility, autonomy, and continuous learning. Conversely, a hierarchical and bureaucratic culture may emphasize formal procedures and strict compliance. This influence extends to how companies approach diversity and inclusion, which is particularly relevant given Riot Games’ efforts to address gender imbalance and foster a more inclusive environment.

In the specific case of Riot Games, cultural elements such as the company's emphasis on talent, creativity, and innovation are central to its HR practices. The company’s goal of attracting diverse talent from around the world is shaped by its cultural values that prioritize performance and uniqueness over traditional organizational hierarchies. However, cultural challenges persist, particularly regarding gender diversity. Less than 10 percent of women are employed in the creative areas, reflecting cultural biases and barriers within the organization and the broader industry. Understanding these cultural influences informs targeted HR strategies aimed at combating stereotyping, disrupting gender biases, and creating a more equitable environment.

Effective leadership plays a vital role in engineering culture change. Faculty comments highlight the importance of CEO support — without it, HR initiatives often struggle to gain traction. Leadership that champions diversity and inclusion can shift organizational culture by setting norms, allocating resources, and modeling inclusive behaviors. As exemplified by Riot Games, when top executives support efforts to address gender imbalance and promote diversity, this sends a strong message that these values are integral to organizational success.

Moreover, culture influences employee management through communication styles, conflict resolution, and recognition practices. For instance, Western cultures often emphasize individual achievement and open feedback, whereas other cultures may prioritize harmony and indirect communication. Multicultural HR policies must accommodate these differences to maintain a cohesive, respectful work environment. Riot Games’ global footprint necessitates culturally sensitive HR practices that respect regional norms while aligning with the company's core values.

In addition, organizational culture significantly impacts how companies address issues such as toxic environments, bias, and harassment. Faculty comments underscore the importance of a healthy culture supported by leadership, which can foster psychological safety and openness. Riot Games’ acknowledgment of challenges related to diversity and inclusion signifies an organizational culture that recognizes issues and seeks to improve, although the process remains ongoing.

In conclusion, culture fundamentally influences HR practices and employee management by shaping policies, leadership behaviors, communication styles, and diversity strategies. For multinational organizations like Riot Games, understanding cultural influences across regions is essential to crafting effective HR strategies that promote inclusion, innovation, and performance. Leaders play a critical role in championing cultural change, which ultimately determines organizational success and sustainability.

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