You and Shawn are now ready to meet with John and AGC’s investor group. Shawn calls to check in with you about the executive report. You need to add one more section of information that will help ensure that AGC remains proactive and competitive in a quickly changing global environment. You have enjoyed working with Shawn on the change management project and know that you will soon have fond memories of helping AGC be more aware of the value of human capital.

Review the AGC scenario for this course, revise Part 1 of the Key Assignment based on your instructor’s feedback, and add an additional 750–1000 words to the executive report that addresses the following:

• Now that the change management plan has been completed, describe AGC’s new leadership styles and organizational culture.  
• Are there any potential internal or external threats that AGC should be prepared to address in its business environment?  
• How can AGC detect these potential internal and external threats?  
• What are some methods that AGC can use to protect the organization from these internal and external threats?

Reeshemah Simmons

Strategic Human Capital Management

Colorado Technical University

February 5, 2020

Executive Report

Role of Human Capital Management

The recruitment process is an integral part of human capital management, which ensures that the right people are hired in a company. The importance of human capital management in the organization is that it ensures employees have comfort while working in the organization through the performance of employee orientation, training of the employees, and retention in the company (Beyer and Leoński). In our case, human capital management is an important aspect of the company, which ensures the growth and development of AGC. This is because the human capital’s main focus is on the performance of human resources, and addition of value to the company. Human capital management ensures that the performance of all the employees is improved, which leads to high productivity, and in return, high profits are realized. The challenges facing human capital management are the motivation of employees, managing diversity in the organization, and resolving the interpersonal conflicts that occur as a result of diversity. Also, the issues on competence building in the workplace, recruitment and retaining of employees, and good leadership is an issue of concern in human capital management.

The Diagnosis of the Problem

The company had to conduct change in management and to ensure success; diagnosis of the problems is of great importance. The diagnosis of the problem involved data collection through interviews on employees to improve on workforce planning, conducting recruitment interviews, and performance appraisal as a way of managing performance of employees The problems that are affecting AGC are basic problems which include management of performance, planning of the workforce and the process of employee recruitment in the organization. We identified that the employees are not happy in the working environment as they felt like they are not recognized in the role they played in the success of AGC. The employees are not recognized in their contributions but rather are treated as the source of the problem in the organization. However, the main challenge is the management of the employees as it plays the most important role in ensuring the performance is high. The other challenge identified is the employee diversity in the organization.

The importance of diversity in workplace is that it promotes high performance through combined skills and exchange of ideas in an organization (Wright and McMahan). AGC should consider developing mechanisms that will ensure the high performance of employees in the organization. Communication was identified as a problem in AGC as the management works towards the improvement of performance through employing from different nationalities through diversity and inclusivity. Therefore, the identified issues facing AGC, which should be addressed, include the motivation of employees, employee retention, communication in the cross-cultural environment, diversity and inclusivity, training of employees, and reviews on their performance. The leading cause of the problem in AGC is due to mismanagement in the human resources and poor leadership.

Interventions

The organization should come up with various action plans that will address the challenges facing this organization. For the organization to improve on performance, change is inevitable in AGC. However, the changes are not always acceptable by the employees hence the need for proper human capital management to ensure change is accepted. The first step taken was to have proper planning of the workforce to ensure that the changes do not affect the performance of employees. The motivation of the employees to improve their performance was one of the best strategies to ensure the organization is performing well. Recruitment of employees was the other strategy to ensure that AGC had the right people in the right job. This focused on ensuring diversity in the workplace to improve performance. Also, there is a need for proper management to ensure that management of the diverse groups in the organization to prevent loss of valuable skills as it had happened with the previous vice president (Lakmal).

Measure of Effectiveness

The measure of effectiveness is essential to ensure the changes improve the performance of the organization. The effectiveness of changes made was measured by checking the financial projections of the company, which is reflected in the profits achieved. Feedback from employees on the performance of the management, the working environment, and communication among the diverse groups would also play an essential role in measuring the effectiveness of the change made. The proposed changes were important in ensuring that employees had a good working environment and were motivated. Also, the organization was able to retain the skilled employees through cultural diversity, hence improving the performance.

Works Cited.

Beyer, Karolina, and Wojciech Leoński. “HUMAN CAPITAL MANAGEMENT IN FIELD OF INTELLECTUAL CAPITAL MANAGEMENT.” Journal Of Positive Management, vol 7, no. 2, 2017, p. 46. Uniwersytet Mikolaja Kopernika/Nicolaus Copernicus University, doi:10.12775/jpm.2016.011.

Lakmal, Darshana. “Managing The Challenge Of Generational Diversity In The Workplace.” SSRN Electronic Journal, 2014. Elsevier BV, doi:10.2139/ssrn.2390574.

Wright, Patrick M., and Gary C. McMahan. “Exploring Human Capital: Putting ‘Human’ Back Into Strategic Human Resource Management.” Human Resource Management Journal, vol 21, no. 2, 2011, pp. 93-104. Wiley, doi:10.1111/j.1748-8583.2010.00165.x.