Unit 2 – Discussion Board Strategic Human Capital Management

Using AGC as an example, what human capital management problems can arise when
an organization does not acknowledge cultural differences in its global subsidiaries?
Effective adaptation of a business to different cultures is a serious problem.
Adaptation to different sets of cultures requires a business to have a deeper understanding of
cultural diversity, communication patterns, stereotypes, and values (M.U.S.E, 2020). Culture
plays an important role in the business environment since it is the knowledge that individuals
use in the interpretation of experience as well as the generation of social behaviour (M.U.S.E,
2020). When an organization fails to acknowledge cultural differences in its operations, it is
bound to encounter various problems. The major problems that can result from such a
scenario include low levels of satisfaction, high employee turnover, and difficulty retaining
employees.
AGC has created a unified culture by placing key personnel from headquarters in
certain leadership positions. However, the failure of the company to handle cultural
differences well has resulted in serious human capital management issues. One of the issues
is intercultural communication. With employees drawn from various cultures, the company
has struggled to guarantee smooth communication which is the foundation of organizational
success. Another problem that AGC has faced is employee retention and motivation issues.
Employees feel motivated if they are accommodated at their places of work (Jaskyte, 2004).
Improper handling of culture creates a serious problem that may result in low employee
motivation. If employees are not motivated, they may actively look to get employment in
other companies. Performance issues at AGC can also be traced down to a failure to
acknowledge cultural differences. Performance relies on teamwork. Teamwork is founded on
the proper management of cultural issues in the workplace.

How can leadership styles affect global organizational culture?
Organizational culture is founded on the leadership style adopted by the management
of an organization. Organizational culture is defined by beliefs and values that have
existed in an organization for a long period. Leaders help shape the beliefs and
values that define organizational culture. Leadership styles define the strategies that leaders
adopt in the handling of employees. When leaders handle the issues of employees well, a
strong corporate culture is created. Leaders also imprint values and assumptions that define
an organization. The best leaders are ones who can effectively handle change. Leaders are also individuals who can influence the process of change and, in so
doing, create a strong corporate culture founded on strong positive values.
Describe a human capital management goal that Shawn can recommend to change the
global organizational culture of AGC.
One human capital management goal that Shawn can recommend to change AGC is
ensuring that the goals of the organization are aligned with the human capital strategies.
There is a disconnect between the goals of the organization and the human capital
management goals. Ultimately, the success of AGC is founded on the proper management of
human capital. It is therefore important to ensure that problems that are witnessed in the
management of employees are fixed and, in so doing, ensure that problems such as employee
motivation, job satisfaction, and lack of communication are fixed.

References

Jaskyte, K. (2004). Transformational leadership, organizational culture, and innovativeness
in nonprofit organizations. Nonprofit Management and Leadership, 15(2), 153-168.
M.U.S.E. (2020). Asset page cultural adaptation and communication. CTU: Earn Your
Degree at an Accredited Online

University. https://class.ctuonline.edu/_layouts/MUSEViewer/Asset.aspx?MID
=18877294&aid=18877295