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You and Shawn met yesterday with the members of a cross-cultural leadership team from AGC’s subsidiaries to discuss a change in AGC’s human capital management goals. The team concluded that if AGC does not change, it may not survive in today’s global environment. To fully diagnose the problems at AGC, they recommended that data be gathered and analyzed. The team asked you to prepare a presentation describing how you will diagnose the problems at AGC.
Review the AGC scenario for this course and prepare an 8–10 slide presentation that addresses the following:
Atlantis Global Corporation (AGC) is a multinational organization that engages in the development, manufacture, and marketing of electronic circuit boards for use in high-definition TV screens. Although the design centers are located in the United States, the bulk of the manufacturing processes are carried out at their overseas subsidiaries. The electronic circuit boards are primarily sold to Original Equipment manufacturers located in North and South America, Africa, and the Asia/Pacific region. Headquartered in the Midwest United States, AGC has subsidiaries in three locations, on three continents: Subsidiary A in Asia, Subsidiary B in Africa, and Subsidiary C in South America. In all three locations, the subsidiaries are located in industrial parks or centers. These locations were selected for strategic reasons, including an abundance of raw materials for the company’s products, the availability of a labor force, and a rapidly growing customer base. Within the industrial parks, it is not uncommon to find two or three organizations competing in the same market segment and for the same labor force.
As part of its global human capital staffing strategy, AGC relocated several key people to leadership positions at each of the three subsidiaries. By placing key personnel from headquarters in leadership positions, AGC assumed a unified culture. Senior leadership envisioned that the subsidiaries would be self-sustainable in 2 years and profitable thereafter. A lot of capital, both tangible and intangible, has been committed to making the subsidiaries functional.
AGC has approximately 84,000 employees, most of whom are highly skilled and specially trained in the operations they perform. On average, it takes 3–6 months to fully train employees in each of the many operations of the parent company and its subsidiaries. Although the head count at the three subsidiaries has remained fairly constant, there have been a number of employees who have left the company for a variety of reasons. As employees leave, others are hired to replace them, but no one knows the exact number of employees who left the company or the reasons why they have separated.
At the subsidiaries, line and middle managers are concerned with having the right number of employees at each function or workstation. The operations manual, which the line and middle managers follow religiously, indicates that all staff must be fully trained and certified before they should be allowed to work on their own. Further, this requirement indicates that if someone has been certified before leaving the company, he or she must be retrained and recertified if rehired—no exceptions—even if his or her absence has just been a week. On the other hand, a trained and certified employee who is out on vacation or medical leave for a month is not similarly required.
Since operations began in the three subsidiaries, AGC has failed to meet its financial obligations, and profits are lagging. This is beginning to show in the company’s balance sheets and is taking a toll on the organization’s financial bottom line. Although the company’s structure is designed for adaptability in a fast-changing market, several other factors were overlooked when the company selected locations for the subsidiaries. These include, but are not limited to, the following:
AGC, often considered the leader in this market, is in jeopardy of losing that title when the end-of-year reports come out in 3 months. This is a critical time for the organization and the senior leadership team is very concerned. They need to find out what is happening to the organization, report to the shareholders, and rectify the situation.
John Dawson, the CEO, COO, and Chairman of the Board of Directors at AGC, is deeply concerned about the future of this company. Past strategies have not advanced AGC to a leadership position in the global market. John believes that he has done everything that can be done to optimize the company and is reluctant to change the present strategic course. He is a reluctant risk taker and must be convinced that changes to the organization have value before changing direction.
John is currently working with Shawn Williams, the newly recruited Vice President of Global Human Capital Management at AGC. His priority is to help diagnose and address the company's human capital issues. Shawn brings with him extensive experience in resolving global problems, and he is recognized as an expert in the field of change management and viewed as a motivational leader. John and Shawn will be meeting soon to align goals and set a new strategic path for Atlantis Global Corporation.
As the new external consultant for AGC, you will be working closely with Shawn to establish a cross-cultural team that will address the company's global challenges. You will provide guidance and recommendations regarding each objective and anticipated outcome. This is a critical assignment because failure could lead to the dissolution of AGC.
|Category||Online Classes | Quizzes | Exams|
|Subject||Online History Class||Level||PhD|
|Budget||$60-100 (2-5 Pages/ Short Assignment) Approx.|
|Required Skills||Proofreading & Editing|
|Type||Open For Bidding|
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Lessons From Experience: One Really Bad Apple
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.
One Really Bad Apple
I have been employed at Elite Global Engineering, Inc. (EGE) for over 25 years. During that time, I have worked in several different departments including engineering, research, and manufacturing. I have been an associate director in this organization for over eight years. One of the things that has always been important to me during my employment at EGE is the type of person to whom I report. This is important because I have had 18 different bosses in 25 years. Sometimes the transition to the new boss is difficult because there is change. Some changes have restructured the group that I am in, and some changes involved the new boss's expectations about his or her staff.
Occasionally, the most difficult thing to do was to develop a good, mutually- respectful working relationship with the new boss. I never had a problem with this prior to my last boss. I can still remember her first day. All of her direct reports were asked to meet with her in the conference room. Hazel, my new boss, sat at the head of the table looking down the entire time that her boss, the vice president of engineering, introduced her to us. She did not smile or make comments, and I knew we were in for trouble.
Hazel turned out to be an autocrat with no interpersonal skills. She believed that she had all of the answers and purposely embarrassed staff during meetings, which created a hostile working environment. In her first year, she did the following:
• Fired seven people in the department because she said they were not “engaged in their work”
• Took away responsibilities from staff without cause • Was allowed to behave with disrespect toward others with no
repercussions • Became well-known across the organization as an “equal opportunity
bully” • Was the root cause of many good employees leaving the organization
Lessons From Experience: One Really Bad Apple
It is important to take away the following from this scenario:
• Human Capital Management must ensure the choice of “the right person for the right job.” Technical skills alone cannot make up for a total lack of interpersonal skills.
• Leaders create the environment of a department and the organization. The best leaders lead from a position of high character and respect for the most important asset in the organization—the employee.
• An organization can lose significant talent if the leaders are toxic to the health of the organizational culture.