How Corporate Culture Enhances Employee Satisfaction Through HRM Policies

Abstract

Employee satisfaction is a vital outcome when organizations are looking to build committed, productive and stable workforces.
While direct association of corporate culture with satisfaction is well known, the mechanisms by which culture translates into satisfaction outcomes are still not adequately known. This paper focuses on the role corporate culture plays in increasing employee satisfaction
through the mediating role of human resource management policies. Based on already known theoretical models such as Schein's multilevel model of culture, Herzberg's two-factor theory, and social exchange theory, the research represented is an analysis of the dynamics by
which the cultural values and assumptions and norms shape the human resource management policy design and subsequently creates the
conditions that lead to employee satisfaction. The analysis identifies three underlying cultural dimensions that shape the development of
HRM policies: values orientation affecting what is valued and prioritized in the management of people; assumptions about human nature
affecting how people are motivated, controlled, and developed; and relational norms about expectations about interaction, support, and
fairness. These cultural dimensions influence specific HRM policies for the recruitment, training, performance management, remuneration,
and employee-related functions.