Practices in Corporate Culture Communication - Case Study Example

ALITALIA Human Resources case study: Practices in Corporate Culture Communication Introduction In theory, cooperate culture is considered to be among the greatest levels in the success of any organizational business. However, it is very difficult to translate strengthening cultural values and beliefs theory into a plan that is tactical. When this area is taken into account the characteristics of the current business environment, these issues tends to be complex. Because accusation and mergers are happening across the global business, organizations globally are struggling to communicate, maintain and reinforce their identities in regard to their culture. Developing communication strategy that is strong enough so that cultural identity of the organization can be maintained is becoming a great challenge for many global organizations. Despite this, the organizations are still flexible enough to changing along with the needs of the business that are under constant changes and its workforce’s diversification. As several studies in the management of literature has stated concerning ALITALIA as an outstanding example that displays a strong culture which unifies all its federation of companies globally (Linnenluecke and Griffiths, pg. 357). The close link between human resource practices and the corporate values is the fundamental reason that enables ALITALIA Company has been able to maintain its cultural identity. The human resource management system of ALITALIA Company is in full support of any effort made by the corporate to ensure that the cultural identity of the company is maintained while the company’s cultural values and beliefs act as the sole source of inspiration for the human resources and the development of the organizational roles and responsibilities. Human resource theory and practices are crucial and play a role in an organizational cohesive cultural system. The changes seen in today’s business environment globally have contributed to the increasing emphasis that is put on the employees to be part of a vital competitive advantage of any successful company. Literature review Despite the fact that the company’s culture is becoming a popular idea in the corporate field, its terminology, as well as its conceptualization is still poorly defined. This terminology variation results partly from the theoretical framework differences that are grounded in different studies. In business literature, the most term that is accepted is the culture of an organization, corporate culture and the culture of the work. Organizational cultures and corporate cultures are terms that are used interchangeably using similar general concept of culture in an organizations; therefore, both the corporate culture and the organizational culture are used as synonyms in the development of this study (G. Johnson, pg. 28). Organizational culture can be through several ways. Despite the several ways to define corporate cultures, researchers have agreed on the importance of correlating culture with other organizational elements such as strategic planning, process of work, infrastructure, systems of compensation and management performance. This shows that researchers complemented their descriptive approaches to the organizational cultures through the emphasis on the significance of “…the process of communication through which culture is.” In the present study, shared values and beliefs, attitudes and commitment throughout the company that is translated into behaviors that are expected, are used to define corporate cultures. Additionally, the study is basing itself on the assumption that the corporate culture functions as “a coherent and unifying system that is for the smooth functioning and the stability of the corporation. Cultures are compared to systems that must constantly be tuned and put into alignment in order to sustain and shape the organizational stated values into real values. The process of culture conceptualization as a system helps in the recognition of the strategic role of the human resource professionals in communicating corporate culture. This happens through a process that is systematic; thus, human resource functions act as a fundamental part of an organizational cultural system in maintaining, developing, reinforcing and assessing the cultural values. The major role of corporate culture represents a broad range of conceptualizations and terminologies; it has always been also shown to serve a broader range of purposes. The purposes being served vary depending on the theoretical framework of a given study, which may be cultural anthropology, behavior of an organization, psychology or sociology asserts that culture is vital component that helps in generating consistency and stability of an organization (Johnson et al., pg. 111). Communication is part of an organizations culture. Organization and corporate communicate are strongly complementary. In any situation, neither the organization nor communication comes first; they are the same event. That is to say; the process of communicating is an organizations act, and any effort to organize is communication bound. Therefore, through understanding the activities and communication of organizations as attached topics, it makes it easier to understand why cultures incorporates can only undergo development and maintenance through communication strategy support. There is a growing focus on the concerns of corporate communication, which is increasingly being viewed as a competitive advantage. Employees who are well informed and actively participate in the decision-making process as considered to be a powerful source of adaptation and innovation. Successful organizations gather the needed information build on effective message deliverance. Moreover, in a globalized world the complexity of communication requires managers to take a closer look than ever before (Hatch and Schultz, pg. 1041). The increasing literature revolving around corporate communication has been contributing other workplaces diversity and constant changes in the business environment. A considerable agreement exists in the organizational communication or corporate communication definition. Generally, it is characterised as a process that involves sending and receiving messages with attached meaning to reach the results of the business. In addition, it helps in pulling strategies into the terms by stating that corporate communication as a process through which messages are being sent, the monitoring of these types of messages, the values being linked with these messages, the amount of data and information being passed, the norms and the rules under which the messages are being sent. It also expounds on the variables in an organization that influences processes including outcome as well as structured measures. A vital part of any system of an organization is a corporate communication. Corporate communication is differentiated from other types of communicative contexts such as communication in the family by organizational variables such as intentions, strategies and outcomes. The principles of basic communication model, descriptive model, are broad to be utilized in any situation, whether two people or large groups, employees or organizations are in communication. The same basic instructions of communication occur, and similar problems are seen to arise from communication as well. In other words, for the message to be regarded as being successful, regardless of the context it bears, it depends on the ability for an individual to understand not only the communication process variables but also the roles being played in the model by every single variable. In general, basic communication variables include a sender and a feedback message or response through the behaviors and attitude. The result of the process is the transfer of a meaning including the words, context, intentions, histories and attitudes. The rationale that lies behind corporate communication strategies can also be applied to corporate culture communication strategy in order to develop and maintain beliefs and values. Human resource management and professionals act as an effective channel through which organizations use as the best choice for communicating out its values and beliefs. The human resource strategic roles are in cultural management. This has been seen to be increasing since 1980’s. Human resource managers for long have been seen as strategic partners in business. The apparent novelty of human resource management according to Guest lies upon the claims that the firm will gain a business advantage when it makes a full use of its human resource management. Because of this unique characteristics being exhibited by the modern environment of business, the only long-term advantage of many companies lies upon the employees’ skills and capabilities. Moreover, numerous scholars have presented their research findings that relate to the high-performance results to the human resources practices as well. Among the several advantages of a strategic-focused human resource, one of them that is most important of all is the cultural management. Cultural management refers to all activities that are related to the formation of culture, development, change and maintenance. Therefore, culture management can be said to be a human resource strategic role that helps to strengthen the values and beliefs of the corporate, consequently, improving the results of the business. Several studies have highlighted the cultural management importance but have used different approaches. Some studies have been able to identify the need for a cultural infrastructure, while other companies still believe the system of human resource should be culturally compatible, and still others are advocating cultural system cohesion. Ultimately, all are still producing the same tactic: aligning policies, human resources, programs and practices with the values of the corporate. However, studies done recently suggest that specific values in not the key value to the success of the companies that are leading, but rather forms the fit between the reality and the culture. No matter what the company holds in the form of cultural values, failure is more likely to occur unless those organizational values are correlated tightly with both internal and external realities. The corporate culture values must be able to fit the business environment needs and those of the employees. Thus, the company’s internal system has to be constructed according to its cultural values (Cameron, pg. 65). More specifically, the system of human resource management of a company must be culturally compatible. Once the fit exists between the role of human resource management and culture, the next step, which is considered difficult, is the development and tactical plan execution. The tactical plan entails how the human resource management and professionals can manage their cultural roles, and plan execution and this refers to the practices of human resource. When referring to the basic model of communication, human resource practices can be said to be a channel of communication that is for value development and maintenance. Assuming that the practices of human resource are a channel of choice used for communicating the culture of the corporate, what makes the difference is the implementation of such practices. The practices of human resource including staffing, developing, designing, and rewarding can achieve results that are strategic when it is aligned to the values and goals of the company. Staffing deal with the organization recruitment, hiring and retaining of the most talented and skilled workforce whose values are congruent to the culture of the corporate. It is easier to live by the values that are company-driven that overlap with personal values. Organizations that value diversity globally faces bigger challenges during recruitment and retaining of workers who have similar core values of the corporate cultures regardless of the normal culture they come from. Training and development involve the organization facilitating learning, commitment and understanding of the corporate values as well as the development that is with career development and training. The future managers of an organization receive the training they need to be the role models of the company’s beliefs and values; the human resource professionals ensure training is adequate. Leaders, to help in disseminating the organizational culture are playing important roles. In fact, the key differentials of human resource practices are because of the leadership development practices. By developing skills that are value-based, the company will be ensuring their long-term cultural values. Human resource professionals are, therefore, required to honor the company's values not only in the process of hiring, but also in the termination process. If the values entail treating employees with lots of respect, then, the company has to do whatever it will take to help the employees who are terminated to get new positions in the job market. Human resource, therefore, needs to be involved with overall policies and working procedures so that it can ensure alignment with the cultural values (Borkowski, Welsh, and Wentzel, pg. 29). In conclusion, it is can be said that human resource professional act as the guardians of the corporate culture. The daily practices of the human resource, once shaped, becomes a powerful channel of choice to pass the strategy of communication culture; whom the company hires and retains, how workers are paid and the behaviors that are deemed desirable send a strong message about the culture of the organization that is desired. Findings and analysis I have identified Alitalia as the company that best communicates its corporate cultural beliefs and values. Alitalia is considered a company with the strongest corporate culture. Many studies have related the strength of an organizations culture to outcomes that are significant. Therefore, to understand the strong values-based culture of airline company, the following analysis will be linking the company’s culture to the valuable outcomes: financial performance that is successful; decision-making process that is structured; and employee behaviors that are positive. Culture and performance Many studies have been able to explain the advantages of having culture that is strong by demonstrating the substantial impact of culture on a financial performance over time of the company. All the important studies discussed in the literature review identify Alitalia as having a very strong culture. A company is always considered as a prime example for any substantiation of the findings of the high correlation existing between financial performance and culture (Anonymous, pg. 36). Findings In a sample of 207 companies in 25 industries, Alitalia is considered a very strong company. From the findings, it has been concluded that corporate culture that is “adaptive” is being ranked as having four times more growth in the total revenues compared to the “unadaptive” culture. Analysis In addition, the company has been recognized for its results that are steady and outstanding in the literature in general. The company offers the two most things in equity investor today that most want- the potential for gains and consistency outsize that have been lacking in the market and in addition being the ultimate best flag carrier and national airline of Italy. The values-based culture of the company has proved to work in several economic conditions that are different. Recently, the economist group gave the airline company the achievement of the global corporate award for 2002. The award is used to distinguish companies that have been having outstanding performances amidst the volatile conditions of the economy. Moreover, financial analysts say that Alitalia proves to have the strength and stability to not only prosper but also survive the crisis over the long-term. In fact, the strong financial performance of the company is a representation of a model of corporate vision and culture. Indeed, the Company has been receiving returns that are above the market average since 1986. By analyzing the result of the company over the past eleven years from 1991, it is not hard to understand how the company’s value-based culture pays off. Form 1991 the revenues collected have almost tripled and risen to $418 in 2001. Creativity and innovations are key to the company, but they are not the only things among the values of the company but also they were stated in the 1982 company’s letter to its shareholders (Liu, Horsley, and Levenshus, pg. 189). In 2002, the company was expected to reach even higher investments than the previous years. The company has adopted a strategy of growth through acquisitions and mergers actively. During the 11 years period, the company executed activities of acquisition and mergers in its operations. The values of culture do influence the company’s decision-making process by framing employees’ assumptions and attitudes. Cultures in any organization can be seen as a structured process by which decisions and behaviors are formed in accordance to the corporate values. As a strong culture, it is not surprising at all that the Company’s values drive a very structured and distinctive decision-making process. The employees use the most important document that represents the company’s inner values as the company’s framework during the process of decision-making. This is called the Alitalia-based process of decision-making. The system of value in the company underlies everything the employees do, this is to mean that nothing of significance happens in the company without any consideration to its ethical implication and the company together with the employees pays a lot of attention to that. The company understands there are four constituencies composed of employees, customers, shareholders and the community as part of the responsibilities of any company. Therefore, for the company employees, the question of whom they may have to consider does not exist as part of their decisions. Moreover, the framework of Alitalia-based dictates the constituencies’ prioritization: the primary responsibility of the company is to its customers, second are employees, third the community and lastly the shareholders. The principle that underlies the Alitalia-based framework is that the fourth constituent will automatically be fulfilled by meeting the expectations of the first three company’s constituencies (Anonymous, pg. 36). The rationale behind the company acquisition is a decision that is based on the cultural system. Among the different parameters used in the evaluation of an acquisition of the company are the management and the culture of the target. The involvement of this airline company in the community is another good example of the company’s decision that is Alitalia-based. Since the Alitalia-based framework has highlighted the social responsibility, it is common for the company to get involved in a number of key initiatives in the community. According to the findings presented, the employee’s behaviors can be affected by the strong cultural values. When a fit exists between the values of the employees and the company’s values, satisfaction in the job, recruitment process, retention and well-being are more likely to be positive. Again, the culture of the Company can be used to validate this finding. The recruitment process of organization attracts prospective candidates who are looking out for companies that show care on its employees and offers career in the long-term basis. In organization, the retention rate of the employees who are high performers does not seem to have any problem for the company. The company’s presence at job fairs generates much interest from several people (S. Johnson, pg. 50). Because of the company’s strength in sharing its beliefs and values, Alitalia has been able to achieve the outcomes in a very distinctive way; these outcomes are suggesting that the roles of corporate cultures are also well established at the company. In other words; identity of culture, alignment of behaviors, motivation and the outcomes entailing successful financial performance, structured decision-making process and positive behavior of the employee of a strong corporate culture make the long-term success difference in a company. Moreover, the company’s corporate culture goes beyond just maintenance of a strong-shared value. The company has developed some great masterly skills to enable its culture be flexible. Alitalia human resource practices are the choice of communication channel. They are considered to be the most important communication channel used by the company to help in the consistent management of the cultural values. The company’s workforce that is diverse is representing one of the constituency- the employees. The basic cultural system of the Company is to run the business for the long-term through good and bad times ( Lundby, Kyle, Jeffrey, and Allen). The ultimate purpose of this case study gives an inspiration to the human resource professional with ideas that are insightful on how-to maintain and develop strong corporate belief and values. At Alitalia, managers are highly encouraged by the company to focus their main agenda on the issues affecting people. The company brings a role model in developing talents and communicating values and beliefs is considered to part of the managerial agendas. The company best human resource practices are extended beyond the human resource department. They represent the attitudes of the top management towards values and people. Nevertheless, the department of human resource at Airline Company has no unique characteristics rather than just being strongly aligned with the values of the company. The Alitalia human resource is described as having a high sociability and high solidarity. Individuals of the organization, within the former, work together in a friendly and effective working environment. The human strategies of the organization that is communal such as this company are focused on the cultural values maintenance in order to find a good balance between solidarity and sociability. Whenever the need arises to make changes, the human resource professional are expected to play a role that is strategic to assure a smooth transition. This company is considered as a communal organization, and its human resource profile is characterised as “obsessed” with the values that are shared. The social environment, friendly and cooperative makes it easier to encourage values including creativity, innovation, flexibility, and balance between work and life in the company. At the same time, the side of solidarity helps assure other company values as competitiveness, high quality and customer driven focus. As a source of inspiration, several aspects of Alitalia experiences and practices can be generalized to situations being faced by other organizations (Fassin and Buelens, pg. 586). Conclusion and recommendations Conclusion When communicating the culture, companies should avoid stating business goals instead of values. Top leaders should be extremely cautious when communicating the goals and the values; usually, they are interconnected but not similar in any way. Starting a company’s goals for a given span of the period is far much different from espousing timeless values. Corporate culture is considered one of the most important company’s assets. It strengthens a corporate culture. It is cumulative and a process that is ongoing. Above all, human resource plays the strategic role as a communication channel through a communication process. Once the human resource become aware of the cultural facilitation potential, as demonstrated by Johnson and Johnson, they can leverage the most traditional human resource practices and see them from a different perspective of culture communication channel. In conclusion, challenging the values consciously does not mean disrespecting or weakening the corporate culture. Any organization should create a working procedures and performance criteria for evaluation that supports and rewards open discussions and participation. The agendas of the human resource must consider promoting discussion of the values of corporates. Company’s should, therefore, reevaluate and revise formal missions, visions and statements of values on an ongoing basis. This should be involving the participation of the employees’. Through several checks and practices balance, senior leadership and management should willingness in assessing on whether the values are shared throughout the organization. Companies are likely to have much stronger culture than they would have had without values that offer challenges when creating the periodical assessments of the corporate values that are relevant and accurate. Recommendation The future researchers should try to gather data from more than one organization to enrich the examples of best-in-class practices of human resource There is a potential biased when making a description of a company’s corporate culture. To diminish this in future, the effect of the described bias and validate the assumptions about Alitalia system of culture, an extensive outside-in assessment of the company should be performed. Work cited Hatch , Mary Jo , and Majken Schultz . “Bringing the Corporation into Corporate Branding.” European Journal of Marketing 2003 : 1041–1064. Anonymous. “Johnson Controls; Corporate Responsibility Magazine Names Johnson Controls a Top U.S. Corporate Citizen.” Politics & Government Week (2010): 36. Print. Borkowski, Susan C, Mary Jeanne Welsh, and Kristin Wentzel. “ALITALIA: A Model for Sustainability Reporting.” Strategic Finance 09 (2010): 29–37. Print. Cameron, Carolynn. “ALITALIA Italian Design, .” Organization Development Journal 25 (2007): 65–70. Print. Fassin, Yves, and Marc Buelens. “The Hypocrisy-Sincerity Continuum in Corporate Communication and Decision Making: A Model of Corporate Social Responsibility and Business Ethics Practices.” Management Decision 2011 : 586–600. Johnson, G. “Managing Strategic Change--Strategy, Culture and Action.” Long range planning 25 (1992): 28–36. Johnson, J. D. et al. “Differences Between Formal and Informal Communication Channels.” Journal of Business Communication 1994 : 111–122. Johnson, Steven. “Steven Johnson: Where Good Ideas Come from.” TED. N. p., 2010: 50, Print. Linnenluecke, Martina K., and Andrew Griffiths. “Corporate Sustainability and Organizational Culture.” Journal of World Business 45 (2010): 357–366. Liu, Brooke Fisher, J. Suzanne Horsley, and Abbey Blake Levenshus. “Government and Corporate Communication Practices: Do the Differences Matter?” Journal of Applied Communication Research 2010 : 189–213.  Lundby, Kyle, Jeffrey Jolton, and Allen I. Kraut. Going Global: Practical Applications and Recommendations for Hr and Od Professionals in the Global Workplace. Hoboken: John Wiley & Sons, 2010. Internet resource. APPENDICES APPENDIX I : What ALITALIA offers The Company is currently involving itself with major re-launching of projects that represents a motivating challenge for its workers. More than ever today, it is a great opportunity for one to have a period of with Alitalia Airline Company since it helps individual discover the air transport business and factors affecting the development of the airliners company. APPENDIX II: ALITALIA letter of permission MR. JOHN HART Human resource Manager ALITALIA AIRLINE COMPANY CONTACT EMAIL: alitaliaHRmanager@live.com CONTACT PHONE: +4470 3596 5335 WEBSITE.www.alitalia-airline.org. Dear Sir/madam, REF: PERMISSION TO CARRY OUT A RESEARCH STUDY ON THE HUMAN RESOURCE PRACTICES IN ALITALIA COMPANY I am a student pursuing visual and art films. As part of the requirements for qualification of, I am required to carry out a research project. I humbly request your permission to carry out a research on the human resource practices in your company. I will ensure that all ethical considerations during and after the study are upheld and not compromised at any given time. Thank You. Yours faithfully, Human Resource manager, ALITALIA Company Sign………………… Sign……………….. APPENDIX III: Global job satisfaction Read More