Diagnostics and Interventions for the Global Human Capital Manager
DUE ON 10/31/2017 AT 23:00PM
750 – 1,000 words
The board of directors at AGC needs a status update on your change management project. Shawn asks you to write an executive report for John and the board of directors about the change management process and the progress being made toward resolving the global human capital management problems at AGC. This report will be shared at an upcoming investor meeting. Because the future success of AGC depends on achieving its human capital management goals, the board of directors wants to ensure that investors understand that it has changed its strategy to align human capital goals with its organizational goals.
Review the AGC scenario for this course and prepare a 750–1000-word executive report that describes the steps in your change management plan, including the following:
· Diagnosis: A summary of AGC’s problems, how they were diagnosed, and your conclusions regarding the root causes.
· Intervention: A description of human capital management strategies that you recommended to create change at AGC and how they were implemented.
· Evaluation: How did you measure the effectiveness of your change management plan? What were the effects on the employees and the organization’s market performance?
MUST USE SOURCES & NOTES BELOW
Introduction: Lessons from Experience: Diversity and Cultural Sensitivity
The story that you are about to read is from actual events that occurred in the field. Its purpose is to provide you with a real-world example from a seasoned professional in the business world.
Diversity and Cultural Sensitivity
My company, Elite Global Engineering, Inc. (EGE) is a multinational organization with international subsidiaries in eight locations. Project management is an important component at EGE. Individuals are chosen to lead large change initiatives. Depending on the project, these changes often affect our home base in Florida as well as one or more of our global subsidiaries. I was asked to lead a large project for our home base and two of our international locations in Italy and in China. The project involved the integration of a new informational management (IM) system. My core team was crosscultural and included members from all locations. As the manager of this project, I employed key components of change management principles and steps; I followed a combination of Kotter’s and Lewin’s basic steps. Well into the project, I felt pleased about my team’s performance until I received a phone call from one of the senior directors in China. He told me that team members in China had concerns about the team and their involvement. He said that they felt their opinions were not taken seriously and that they did not feel like equal partners. This came as a surprise to me because we had been completing key objectives and keeping to our time line. I thought we were an effective team. In hindsight, I realized that I hadn’t focused on cultural differences that may have led team members from China to feel that they were isolated. Even though I was always respectful to everyone, it simply wasn’t enough because I was not appropriately prepared to handle all aspects of managing a crosscultural team. It is important to take away the following from this scenario: • Expatriates are not the only people who need cultural sensitivity and Lessons From Experience: Diversity and Cultural Sensitivity 2 crosscultural team training. People who work virtually with international sites do as well. • Project management training should include training interventions of this sort to strengthen the interpersonal skills of a crosscultural team.
Global companies face a vastly different set of challenges, priorities, and responsibilities than do domestic companies. Many large companies have gone to the global market over the past several years to gain access to new market shares. Companies that decide to go global will normally make the decision when a cost-benefit analysis and other forecasts show clear room for growth and greater profit.
Organizational Identity Influences Structure
Organizational models can differ for global companies based on organizational identity and structural needs. At the highest level of the organization, global companies must first decide how the organization itself will be headquartered: Decide whether the organization will be centralized in a main physical location or subdivided into several locations situated in line with the goals and objectives of the organization. Identity also influences the choice of structure. For example, an organization that relies on a localized identity to transact business would probably use subdivided locations. For other organizations, this might not be the sensible choice.
Legal Factors Influence the Organizational Model
Organizational models and characteristics for global companies can vary from companies that are not global in scope because of legal factors like international law, labor laws, and the regulations particular to a given business or industry (Kogut, 1998). The organizational characteristics of global companies also differ greatly from those of domestic companies especially in terms of the culture of society. For example, the setting and expectations of host country nationals affect the degree of formalization in job expectations, documentation, written directives, and policies (Hodgetts, Luthans, & Doh, 2006).
With the exceptions previously noted, organizational models in global companies consist of a main corporate structure dictating to smaller operational units. Beyond the superficial considerations, these units could be located and placed together based on the client base, product, or service that is being utilized. For example, organizational units associated with the oil industry are typically placed in strategic areas where oil production or associated ancillary services are to be found. This makes sense as a strategy for the business interests of the firm. Many times these structures are in a state of flux and can be changed in response to changes in the economy, business, or political climate of a specified unit’s location.
The Dynamic Nature of Global Business
The organizational model for global companies is different from that of domestic companies. These differences are based upon the needs and objectives of the given organization and can change in response to needs and changes in the business model itself, indicative of the complex and dynamic nature of global business in the fast-paced and highly competitive 21st century. A viable, growing global company must forecast and respond to all called for changes to ensure ongoing and future successes.
Hodgetts, R. M., Luthans, F., & Doh, J. P. (2006). International management: Culture, strategy, and behavior (6th ed.). Boston: McGraw-Hill/Irwin.
Kogut, B. (1998). International business: The new bottom line. Foreign Policy, 152–162.