Sebastian Perrier

Although many processes and procedures might be written about what the human resources’ policies within a company are, peoples’ perceptions and cognitive frameworks are far more important than any written rule. So managing human resources is about managing ‘signals’ that will ultimately shape the company’s culture. If the company is sending signals consistent with the company’s policies and with people’s expectations, employees will feel identified with the company and will engage towards their objectives.

However, if the company is constantly sending contradictory messages which are inconsistent with its strategy and policies, employee loyalty and commitment will be damaged. Therefore, every action and decision taken by managers is seen and interpreted by the workforce; these signals and examples shape the organizational culture far beyond any written rule.

So why bother having any written manuals and rules? Is there a relationship between human resources practices and business performance? Why should managers bother to develop such procedures? If peoples’ behavior is a ‘black box’, where it is not possible to establish a direct relationship between processes and performance, why should managers bother writing manuals? Because empirical evidence shows that yes, there is a relationship between good human resources processes and organizational performance.