Keywords

39.1 Introduction

Human resources play an important role in the process of achieving the organizational vision; when the organization manages human resources well, it will ensure a clear difference from its competitors. One of the most important factors affecting organizational image is thus the process of human resource management.

Nowadays, human resource management occupies an important place in transforming the moral and social responsibilities which improve staff loyalty and creativity which ultimately contribute to achieving the organizational strategic goals. In this context, the goals of human resource, policies and planning should be integrated and be compatible with the organizational strategic goals. Human resource management process is a good tool which helps the organization to become bigger than its competitors. Because of this, strategic human resource management is defined in terms of compatible organizational strategic goals. Subsequently it is important to plan the actions of human resource management that can contribute to the achievement of the organizational objectives (Bingöl 2010).

The image reflects personnel perception in their minds, and there are many varieties of images such as; Mirror image, Umbrella image, Positive image, Negative image, Brand image, Product image etc.

When we look at organizational image in terms of the different kinds of images it seems as a chaotic concept. Organizational image was handled by different authors with different ways. Some authors think that image is a picture of knowledge in the mind, it is a link between the organizational mark and message, and it is also the concept of management’s vision. According to the results of the different evaluations which have been done, organizational concept is a personal assessment of the organization’s reputation, such as the concept which defines the identity of an institution (Köktürk et al. 2008).

Corporate image is a force which affects the internal and external factors of the organization. When the organizational corporate image is positive, it increases the organization’s commitment and efficiency and helps it to reach its targets. According to the external environment term, corporate image is required to be positive for the good functioning of the organization which makes it popular among the competitors.

According to Rosenthal, corporate image, institutional identity, the staffs, goal groups (customers, partners) and the results obtained from the public are premised on four main points: comparing the organization with its competitors, thinking about the organization’s corporate image, recognition, prestige and value of the institution (Okay 2012).

39.2 Complexity of Human Resources

The human enterprise is complex. When one considers that each individual is unique not only in composition, personality and character but also in interpersonal relationships. The sum of who we are is brought into the role and function that we have within an organization (Truss 2004). To manage these similarities and differences in an work environment is not an easy task and requires particular approaches and skill.

There are many different approaches to managing human resources. Boards must undertake an approach that fits with their values and strategy, to hire the right people and manage them in a way that fulfills the board high level of responsibility to students and the community (Lawler 2005). Above all, they must find ways to fully engage their employees in the educational enterprise.

Human resources form the most important asset of school divisions they typically account for as much as 80 % of expenditures for a board of education. Furthermore, they are critical to the education enterprise. Therefore, the attention that boards of education give to human resource management needs to reflect this condition and value.

Colbert and Elizabeth (2011) while exploring the complexity perspective on strategic human resource management contend that over the past three decades, research on the contribution of human resources (HR), i.e. people, and human resource management (HRM), i.e. policies and practices, to organizational effectiveness has moved from operational to strategic: from examinations of discrete HR policies and practices to consideration of how the HR strategy supports, or even drives, the strategy of the organization or sub-unit.

Managers should therefore be aware that at the core of HRM studies are questions relating HR practices to workforce attributes and behaviors, and subsequently to organizational performance outcomes, with the basic assumption that HRM matters—that the structure, design and execution of HRM practices materially affect the knowledge, capabilities and behavior of people associated with the organization, and that better HRM translates to greater organizational effectiveness.

By viewing organizations as non-linear systems, focusing on interconnections between points in the system, and stressing the importance of network nodes in mediating organizational outcomes, complexity theory suggests, at a conceptual level, that the significance of human resource may lie more in processes than in policies and strategies.

Also important is the rapidly changing business environment and the increasing complexity of modern organizations. These and other changes have created a growing consensus that effective human capital management is critical to an organization’s success (Jackson et al. 2003 cited by Lawler 2005). Bearing in mind how complex the human resources are, this study moved fast to explore the impact of human resource functions on corporate image.

This study will be about the factors that affect the distinction of the organization from its competitors, human resource management and corporate image. The main goal of this study is to analyze the effect of human resource management on the corporate image, and the relationship between both of them.

39.3 The Impact of Human Resource Management on Corporate Image

39.3.1 Human Resource Management

Human resources management is an inimitable process, it is about how one skill holder should manage the human resources effectively, according the law involves therefore it will be beneficial to the organization, individual and the environment (Kaynak et al. 1998).

Human resources management is a system that is concerned with how to ensure the effective and efficient use of human talents to accomplish the organizational goals (Maths and Jackson 2000).

According to Randall, good managing is the manager’s role and it is defined according to the human resource management system in an organization, providing the best institution and the best public. Many factors put human resources management in an important place such as (finding the best employees, the best institutions, the best way to reach the public, an intense rivalry, existence of new little companies, the advantages of speed technology, the dynamic laws, the policy and social realities, the change of values and educational features, the quality of customers, quality and cheap goods needed and so on). Therefore, in this case the organizations have to change their practices (Randall 1995).

Human resources management focuses on two key elements, the first; using human resources effectively to reach the organizational goals and the second; promoting the development of the organization by providing for the employees’ expectations. According to Ivancevich the human resources management can be summarized as below:

  • Helpful to achieve the organizational objectives

  • To employ a skilled and talented workforce

  • Ensure well trained and high motivated employees in the organization,

  • Make working in the organization attractive to improve the quality of working life

  • Inform all employees about Human resources policy and its implementation

  • Give importance to ethical policies and increase social responsibility

  • Manage the changes for the benefit of individuals, groups, organizations and communities.

Human resources management looks at the human as a second plan and understands them as capital which improves the human resources activities of the organization as well as setting new strategic dimensions. The main objective of an organization is providing a useful model or plan that helps to integrate the policies and activities within the framework of logic and purpose to make all parts work together towards the goals.

Strategic human resources management is not only the organizational strategic supporter or simply supervises it; sometimes the factor of human resources itself can shape the organizational strategy (Leopold et al. 2005).

The strategy of an organization is defined by the human resources and the top manager together that helps to identify the strategy of organization in terms of the specific human resources. These applications help to reach the organizational goal by the employees enter into rivalry with each other (Dessler 2003).

The management’s internal or external factors are not separated from each other’s sharp lines. How the customers perceive the management influences the attitudes and behaviors of team members. Therefore, managers have to consider the internal customers when they implement strategies that will be applied in the process (Gürbüz 2010).

Efficient management of human resources is one of the main ways which positively affect the perception of the corporate image by the internal environment. Human resource functions are classified into planning, human resource discovery, selection and placement, training and development, career management, performance management, compensation management, staff relations and orientation.

39.3.2 Corporate Image

The long term success of the organization to achieve its internal and external goals depends on the powerfulness of its image.

The image is how one person is seen and judged by others (Mooij 2005).

According to Kotler and Clark, “image is the process of a person’s learning and perception about the corporate individual or corporate judgment, their impressions or evaluation. The images include; mirror image, umbrella image, organization’s perceived image, foreign image, transfer image, current image, desired image, positive image, negative image, store image, product image, brand image and corporate image.

According to Marken, firm’s image is all the objectives and plans of that organization defined as a perception. Firm’s image is supported by the company’s products, services, management style, communication activities and other operations worldwide.

Image today, is not only concerned with the marketing area; it is now a strategic tool that should be used by the manager. The organization should have a positive image which can help its continuity and strategic success. Providing a positive image through the marketing of one product or service helps to create a strong corporate image that improves the sale of products and services. The firm’s positive image can help to provide good staff, the firm does not need only employees to succeed, its needs analysts, investors, customers and partners; accordingly all these should be attracted to the firm. The strength corporate image adds to the emotional value of the firms’ system, can make them distinguished and credible; and this helps to outstrip the competitors (Erdoğan et al. 2006).

All kinds of organization activities create an image in the minds of internal and external customers. The perception of corporate image by the persons who are in a relationship with the organization can be positive or negative. The main purpose of an organization is to achieve its objectives and perform its vision. The tactics and strategies used by the organization are key determinants which will help to attain the organizational image. One part of the tactics and strategies is completed by human resources management with a different kind of plan and application that helps to create a corporate image (Caner 2013).

39.3.3 Effects of Human Resource Management on Corporate Image

The human resource functions evaluated show that all these functions, one by one, affect corporate image. These functions are related with each other, when one function is negatively affected that automatically affects the others so, whatever can affect corporate image should not be neglected. When planning takes place around the human resource functions, it is necessary to achieve the organization’s long-term objectives. When efficient planning is done employee turnover rate can be maintained at a particular level and internal and external perception which damage image can be reduced. Effective planning of human resource should be done to reach a positive corporate image perception which is considered as one of the prerequisites for any preferred management system.

“Effective personnel selection process and its implementation will create a positive impact on business performance”. Nowadays, the intense competition of the internal and external markets, particularly affects employee performance positively and the management’s market performance such as (satisfying customer’s expectations, image of business in society, increasing the value and quality services etc.). Furthermore, motivation increases the productivity of a company, loyalty of employees towards the company and job satisfaction. As result, the market performance of a company will increase and will provide a competitive edge (Marangoz and Biber 2007).

Therefore, staff recruitment, selection and evaluation is a function that ought to be fulfilled in an efficient manner, for the organization’s functionality and can affect the internal and external image of the corporate environment positively.

Nowadays, organizations have begun to give critical importance to the human resources function in other forms such as; educating the employees. With employee training, the organizations improve the employees’ professional skills as well as their organizational commitment.

Staff training can influence a positive atmosphere within the corporate image perception in the organization. The created corporate image perception of the employees and their organizational commitment will be positively reflected in the external environment (Caner 2013).

The career management of Human resources functions is concerned with the development of personnel skills and achievement of personnel goals within the administrative processes. And good staff satisfaction is directed towards the management process. When employees believe that a career plan is drawn better, they think that the assignments in the organization have been made ​​on a rational basis; their organizational attachment brings a positive corporate image. When the employees think that they are evaluated by the performance management system in the organization, they will be motivated and that increases their efficiency. The high motivation in an organization improves the staffs’ confidence and commitment that will positively affect the corporate image.

A fair management with a wages implementation system can incite and make the employees more productive. The effective management of fee system creates a positive organizational image perception within the employees. In the labor sector, the factors such as, health and safety, motivation, leadership and communication when it is successfully managed that positively affects corporate image perception. Therefore, in this study, the interaction between the human resource functions and employees’ corporate image perception will be examined and established.

39.4 Methodology

39.4.1 The Goal of the Study

The goal of this research is, to determine the relationship between human resources management and the employees’ corporate image perception in Ankara’s pharmaceutical company.

The study was planned around Ankara’s pharmaceutical company only, the employees in the pharmaceutical company in Ankara state, the number of workers in this company is estimated at 2,000 people. 518 people joined the study through the help of other employees in the sector and the researcher’s effort. From 518 surveys which were distributed, 477 were completed by the workers, 42 of them were inaccurate or incomplete and were removed from the survey and 435 surveys were evaluated.

The results of the survey from the pharmaceutical company consisted of analyzing the demographic data by the SPSS data analysis program to find the frequency and percentage in terms of the employees’ gender, age, educational level, marital status, and uptime in the organization, position in the management function and their net wage range while hypotheses were investigated by SPSS Chi-square method.

The main hypothesis of study is “the impact of human resources management on the development of corporate image”. According to the main hypothesis therefore, the sub-hypotheses are:

H1 :

Employee’s low turnover rate positively affects perception of corporate image

H2 :

There is a relationship between the corporate image and the supply of qualified personnel in the pharmaceutical industry

H3 :

There is a relationship between a company’s employee training and a strong image of the pharmaceutical industry

H4 :

The organization’s effective career planning creates a positive perception of the corporate image within the employees

H5 :

There is a relationship between the company’s effective performance management and the employees’ positive perception of the company’s corporate image

H6 :

There is a positive relationship between the staffs’ satisfaction with the Salary policy and the company’s corporate image

H7 :

There is a positive relationship between the pharmaceutical company’s measures taken for the workers’ health and safety and the value of that company’s corporate image

H8 :

There is a relationship between motivation activities implemented for employees in the pharmaceutical industry and their positive perception of corporate image

H9 :

There is a positive relationship between the subordinates being appreciated by managers in the pharmaceutical company and their perception of corporate image

H10 :

There is a relationship between an open communication environment offered to employees in the pharmaceutical company and the organization’s corporate image.

Data Collection Methods and Tools

In this study as a data collection tool “the impact of human resources management in the development of corporate image” instrument was used. The 5 point Likert scale was used in the second part of the questionnaire. The people selected the options that were best to them. There were ‘Accordingly Disagree’, ‘Disagree’ ‘Neutral’, ‘Agree’ and ‘Strongly Agree’.

Because I could not reach significant results with SPSS using a 5 point Likert scale Chi-square analysis software, the survey was evaluated through reduced program options in which only “Disagree”, “Neutral” and “Agree” were selected.

39.4.2 Analysis of the Survey’s Validity and Reliability

In this study, the reliability of the survey was calculated by SPSS ‘Cronbach’s Alpha Coefficient program’. Cronbach’s alpha coefficient is located between 0 and 1 and in the analysis the place that it took 0.80 shows that it is highly reliable. Taking a 0.903 coefficient of 0.80 Alpha 1 has taken place. Therefore it is a highly reliable scale.

39.4.3 Evidence

The first part of this section, a survey of participants in terms of demographic information was made and the second part was about the results of the hypotheses.

39.4.4 The Demographic Results

The number and the rate from the drug company employees who completed the survey was 435 participants, 285 (male) (65.5 %) and 150 (women) (34.5 %). 12 participants aged 18–24 years (2.8 %), 25–31 years, 117 (26.9 %), 32–38 years 193 (44.4 %), 99 were 39 to 45 years (22.8 %) and 14 were 46 years and older (3.2 %). Regarding educational level, 11 (2.5 %) were of high school, 24 (5.5 %) associate degree, of 326 (74.9 %) degree, 72 (16.6 %) and 2 master and doctoral graduates (0.5 %). 271 (62.3 %) of the participants were married, while 164 (37.7 %) were single.

According to the analysis of the participants’ working period in their affiliated organizations, there are 116 people between 0–3 years (26.7 %), 129 people between 4–7 years (29.7 %), 106 people between 8–11 years (24.4 %), 53 person 12–15 years (12.2 %) and 31 people over 16 years (7.1 %).

Considering the titles of participants, 354 were Medical Sales Representative (81.4), 31 Regional Directors (7.1 %), 15 Product Manager /Medical Directors (3.4 %), 8 Sales Managers (1 %, 8) and 27 others (6.2 %).

The different wages declared by the 435 participants are as follows: 6 of them (1.4 %) earn less than 1,500 TL 130 (29.9 %) of them earn between 1500–2500 TL, 163 (37.5 %) of them earn between 2501–3500 TL, 74 (17 %) are from 3501–4500 TL and 62 (14.3 %) earn more than 4,501 TL.

Evaluation of Hypotheses

Main hypothesis “the impact of human resources management on the development of corporate image” the second part of the survey was based on 3 Questions.

Main Hypothesis

According to Table 39.1, it is reported that, 361 participants out of the 435 participants who took part in the second part of the questionnaire answered the 3rd question.

Table 39.1 There is a positive impact between human resource activities and development of a corporate image
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The assessment was conducted in Table 39.1 and as a percentage, 83 % of participants think that human resources activities have a positive impact on the development of a corporate image.

Sub Hypothesis

H 1 :

When the employee’s turnover rate is low it affects the perception of corporate image positively (Table 39.2).

Table 39.2 The relationship between corporate image and employee turnover rate
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According to the chi-square test p-value is not significant (Table 39.3). Therefore, there is no significant relationship between the employees’ low turnover rates with their positive perception of corporate image.

Table 39.3 The relationship between the employee’s turnover and corporate image on Chi-square test
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H 2 :

There is a relationship between corporate image and qualified personnel supply in the pharmaceutical industry (Table 39.4).

Table 39.4 The relationship between corporate image and qualified personnel supply
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According to the result of Chi-square analysis, the p-value is significant, but not significant for the cell value as result in (Table 39.5). The relationship could be not obtained between the supply of qualified personnel with the perception of corporate image.

Table 39.5 The relationship between supply of qualified personnel and corporate image, according to the chi-square test
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H 3 :

There is a relationship between the training given to employees of the company with a strong image hold in the pharmaceutical industry (Table 39.6).

Table 39.6 The relationship between corporate image and the training given to employees in an organization
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According to Table 39.7 in the chi-square test p value was significant. Therefore, there is a relationship between corporate image perceptions with training in the organization.

Table 39.7 The relationship between corporate image and training in the organization on Chi-square test
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As a result of this assessment in the pharmaceutical industry, it was determined that there is a significant relationship between the training given to employees and the company’s strong image.

H 4 :

The organization’s effective career planning creates a positive perception of the corporate image within the employees (Table 39.8).

Table 39.8 The relationship between corporate image and career planning
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According to Table 39.9 the chi-square analysis indicates that the required p-value is significant. So, the relationship between the perception of corporate image and career planning is obtained.

Table 39.9 The relationship between corporate image and career planning in terms of Chi-square Test
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H 5 :

There is a relationship between the company’s effective performance management and the employees’ company corporate image perception (Table 39.10).

Table 39.10 The relationship between corporate image and performance management
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In Table 39.11, according to the chi-square test p-value was significant. So, a significant relationship between effective performance management with the employees’ positive corporate image perception of the company is not obtained.

Table 39.11 The Chi-square test of the relationship between corporate image and performance management
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H 6 :

There is a positive relationship between staff satisfaction with the Salary policy and the company’s corporate image (Table 39.12).

Table 39.12 The relationship between corporate image and salary management policy
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In Table 39.13, the obtained p value was significant. Therefore, a positive and significant relationship between the sector employees satisfied by their salary policies and the corporate image of firms where they work was obtained.

Table 39.13 Relationship between corporate image and salary management on the Chi-square test
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H 7 :

There is a positive relationship between the pharmaceutical company’s measures taken for the employees’ health and safety with the value of that company’s corporate image (Table 39.14).

Table 39.14 Relationship between corporate image and occupational health and safety applications
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Table 39.15, In the Chi-square test when p-value was evaluated it was significant. So, there is a positive and significant relationship between pharmaceutical companies’ measures for occupational health and safety and value that the employees place on company corporate image.

Table 39.15 The relationship between corporate image and occupational health and safety applications on the Chi-square test
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H 8 :

There is a relationship between motivation activities implemented for employees in the pharmaceutical industry and their positive perception of corporate image (Table 39.16).

Table 39.16 Relationship between corporate image and motivation
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According to Table 39.17, the p-value is significant and according to that it is determined that there is a significant relationship between the activities motivating employees in the pharmaceutical sector with employees’ corporate image perception.

Table 39.17 Chi-square test of the relationship between motivation and Corporate Image
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H 9 :

There is a positive relationship between the subordinates being appreciated by managers in the pharmaceutical industry and their perception of corporate image (Table 39.18).

Table 39.18 The relationship between leadership and corporate image
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In Table 39.19, according to Chi-square test results the p value was significant. So it has been found that there is a positive and significant relationship between the managers’ appreciation of subordinates and the perception of corporate image in the pharmaceutical industry.

Table 39.19 The relationship between corporate image and leadership in terms of Chi-square test
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H 10 :

There is a relationship between the open communication environment pharmaceutical companies offer to employees and the organization’s corporate image (Table 39.20).

Table 39.20 Relationship between corporate image and open communication environment offered to employees
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In Table 39.21 according to the Chi-square test evaluated p-value was significant. So in the pharmaceutical companies, there is a significant relationship between open communication environments offered to employees and the corporate image.

Table 39.21 The relationship between corporate image and existence of open communication on Chi-square test
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39.5 Discussion of the Results

According to results of the research based on tests conducted on the sample of employees operating in Pharmaceutical companies, it has been established that, many of the human resource functions have an effect on the perception of corporate image.

Only H1 and H2 hypotheses were rejected. Particularly, the claim that “the low rate of employee turnover affects the perception of corporate image positively” should be rejected. Extensive research should be conducted on employee turnover rate and corporate image and how this may be eliminated in the company.

For example, employee turnover rate may be high and yet not due to the company’s management, it may be based on the existence of an industry’s structural problems which affect the employees’ evaluation of a company, so the established connection may be limited between employee’s turnover rate and the corporate image.

Meanwhile the second hypothesis; H2 stating that “there is a relationship between qualified staff supply and organization corporate image in the pharmaceutical company” was also rejected. So, there is no relationship between human resource management functions such as, staff finding, selection and evaluation and corporate image.

According to two specified exceptions which were established, generally, human resource management can be positively influenced by the internal environment perception and the corporate image perception. This shows that HRM has an important role when it is positively directed within an organization.

When the results of research within the dynamic process of industry in recent years are assessed, the legal regulations that negatively affect employees and businesses in the sector should be considered. In the assessment of the survey questions of sector employees, the following cropped up; the psychological environment, the industry’s current structure, suspicion of losing their jobs, which make them think that their image perception of the current company cannot be objective.

The study took place in a situation where the industrial process today is characterized by extensive and intensive staff reductions and instability. So the results of this study can be tested again at a time when the industry is more stable, the study should thus be repeated and the new results should be compared to this study’s results.