Image in the context of business world can be roughly defined as a perception of external stakeholders’. Therefore, image management requires investments as image is a critical factor for companies’ success. (Cian & Cervai 2014, 182) Rindell (2013, 205) points out that images are not just impressions and associations of current status; moreover, they are a blend of past and present.
Previous reflections of the image can be referred to as image heritage. Thus, image is under construction constantly and prone to changes.
It can be stated that image is in a starring role in affecting people’s perceptions externally and internally. Having a strong, positive image that truly represents the company values and culture is likely to attract people with similar mindsets.
However, building and maintaining desired image requires effort and strategic planning (Cian & Cervai 2014, 183).
Image can also be a construed image, where the image is built on the perception of how others feel about the organization (Cian & Cervai 2014, 189).
Image is vulnerable and if there is negativity associated to the image it may have crucial consequences. Image has been conceptualized and measured in various ways but Van Hoye et al. (2013, 544) argue that images include two
dimensions: instrumental and symbolic. Instrumental dimension takes into account concrete and tangible attributes whereas; symbolic dimension consists of intangible and abstract traits. Van Hoye et al. also point out that sometimes job seekers are more attracted to the symbolism that they associate with the company than to the actual job.
2.2.1 Employer image
Employer image is a perception of how people see the company as an employer. Employer image embodies the knowledge and the impressions regarding the company that people outside the company have (Gomes & Neves 2011, 687). Recently companies’ interest to create an image of being a desirable employer has increased. People, both outside and inside the organization, evaluate the company partly based on the perception they have about the company as an employer. (Lievens, van Hoye & Anseel 2007, 48) This perception is influenced by different determinants, for example, how the company treats its staff, how employees’ well-being is valued, the things that the company is known-for, like the duration of careers, attitude towards corporate social responsibility etc. It is important to acknowledge that company may have a different kind of image as a business corporation than the image it has as an employer.
Robertson & Khatibi (2012, 32) present that employer image is part of employer brand and therefore it is one of the building blocks in a bigger entity. Moreover, employer image is not important only when fighting for the skilled workforce, in addition it may be a deal-breaker for possible partners in industries where transparency is valued.
Robertson & Khatibi (2012, 43) argue that well-developed employer brand strategy has a clear correlation with increased strength of employer image.
Positive and attractive employer image is connected to the amount and quality of applicants and may also have an effect on stakeholders’ behavior and willingness to co-operate. Thus, it makes sense for companies to pay attention
on how they are perceived as an employer, how to develop this image and manage it in accordance.
2.2.2 Corporate image
Corporate image has been labelled in many ways such as: company evaluation, corporate identity, organizational reputation and corporate associations. This inconsistency has lead into confusion among researchers and practioners. The definition of corporate image can be roughly stated as the sum of perceptions that external stakeholders have about a company. (Cian & Cervai 2014, 187)
Abd-El-Salaam, Shawky & El-Nahas (2013, 131) point out that corporate image is considered as a crucial determinant in the evaluation of the organization as a whole and they also propose that it plays a big role in successful positioning.
Rindell (2013, 200) agrees that corporate image is a meaningful factor affecting the success of the organization.
Rindell (2013, 198) proposes that corporate image is more of a process than concrete entity because images change constantly in the minds of stakeholders due to interaction and culture-dependency. Corporate image is a way of differentiating the company and a well-managed corporate image may work as an asset in the market especially in situations where competing organizations are perceived very much alike on availability and price. (Abd-El-Salaam, Shawky & El-Nahas 2013, 130)
Reputation is often referred to when discussing corporate image, especially in the consumer perspective (Rindell 2013, 199). However, reputation is just one of the particles of corporate image. Corporate image is said to have two dimensions which represent different kinds of characteristics. First there is functional component which is easy to measure by tangible factors. Secondly corporate image contains emotional component which includes beliefs, attitudes and emotions that cannot be measured or assessed (Abd-El-Salaam, Shawky & El-Nahas 2013, 131).
3 HUMAN RESOURCE MANAGEMENT
One of the most important tasks of HRM is talent management, which basically means managing the human capital of the organization. This includes recruitment, assessment, development and retention of employees, the most vital resource for any organization. (Chhabra & Mishra 2008, 52) According to Mitchell, Obeidat & Bray (2013, 900) strategic HRM has risen to a valuable research topic and the influence of HRM as a strategic tool has increased in the past few years due to growth of competitive pressure.
The critical role of HR managers is to develop and build the organization’s HR in order to achieve and sustain competitive advantage. Therefore, HRM can be evaluated on resource-based view which presents proof of the importance of effective HRM (Mitchell, Obeidat & Bray 2013, 902). Shaw, Park & Kim (2013, 574) add that today’s HR managers have distinguished the possibilities of sustaining competitive edge through hiring and retaining high quality workforce and are forced to come up with more creative solutions as the increased competition has lead into so called talent war.
Mitchell, Obeidat & Bray (2013, 913-914) point out that during these competitive times HRM needs to focus on finding new ways to enhance the performance of the organization including improving processes and developing ways of doing work to ensure that employees’ motivation and skills improve along the way. In order to succeed in this, HRM must evolve and obtain more strategic role inside the organization. Moreover, management should ally with HRM in order to become strategic partners who together achieve development.
App, Merk & Büttgen (2012, 265-266) note that sustainable HRM can be used to increase employer attractiveness and suggest that organizations should aim at more strategic and sustainable HRM in order to become the employer of choice. However, several organizations are falling behind as they are not being active on this field just yet and therefore their profitability and competitiveness are not reaching the full potential.