Human capital

An organization’s success and improved performance

An organization’s success and improved performance are greatly enhanced by its human capital. Human capital is defined as a person’s knowledge, experience, and abilities that may be applied to generate economic value for themselves, their community, or their employers. A company’s human capital, according to Ingham (2015), is made up of its directors, employees, and leaders, all of whom are essential to its success. Effective human capital strategies are therefore essential to ensuring that employees contribute effectively to the organization. Notably, accomplishing human capital goals depends greatly on organizational culture and leadership abilities. This paper will explain the problems that arise as a result of failure to acknowledge cultural differences as well as how leadership styles affect global organizational culture.

Problems arising from failure to acknowledge cultural differences

For instance, global companies that do not acknowledge cultural differences in its subsidiaries face a lot of human capital problems. For example, a competent employee may opt to withdraw from employment as a result of lack of recognition or appreciation of their culture thus creating a significant gap in the work performed. Based on the case scenario of AGC global company, several employees have left their job opportunities with the company as a result of lack of cultural competence and appreciation. Similarly, miscommunication is a management problem associated with lack of recognizing cultural diversity thus negatively affect the success of the firm. Therefore, failure to acknowledge cultural differences leads to cultural incompetence thus adversely affect employees performance and company success (Andrews & Mead, 2009).

The role of leadership styles in global organizational culture

Notably, leadership styles play a vital role in enhancing global organizational culture. According to Ingham (2015), managers achieve better results through recognizing as well as adopting various leadership styles thus achieve harmonious coordination among the employees, build a strong relationship, create reputation and rapport and maintain a substantial high motivation level. By so doing, the performance of the company improves. In a workplace with multiple cultures, leadership styles adopted dictate the overall performance of the business. For example, if the leadership styles utilized in the subsidiaries of a global company recognize the significance of celebrating and embracing cultural diversity, innovation, and empowerment, then the global organizational culture of the firm becomes competence. However, if the leadership styles do not embrace differences, then the global corporate culture becomes less proactive and incompetent.

Implementation of cross-cultural program for AGC

Remarkably, Shawn can recommend the adoption and implementation of the cross-cultural program as a human capital management goal to enhance change in the organizational culture of AGC. Based on the presented scenario, lack of embracing cultural diversity in the subsidiaries of AGC Company is a typical prevalent challenge facing the institution. Therefore, AGC should adopt programs focusing on cultural awareness to assist the management in adapting and coordinating the company’s multi-cultural staff. Through the implementation of cross-cultural programs, employees would feel respected and appreciated thus improve their performance and the overall performance of the business.

Conclusion

In conclusion, managing global human capital plays a vital role in ensuring better performance of the business. Accordingly, it is essential to recognize the value of human capital in enhancing the success of an organization. Based on the case scenario of AGC Company, organizational culture, as well as leadership styles, significantly affect the performance of the company, especially among the subsidiaries. Notably, failure to incorporate the embracement of differences in culture and leadership styles has substantially led to human capital management problems. According to Andrews & Mead (2009), it is crucial for a company to implement programs that educate on the importance of acknowledging cultural difference among the organizational employees thus change the global corporate culture and improve the overall success of the business.

References

Andrews, T. G., & Mead, R. (2009). Managing cultural differences. London [u.a.:] Routledge.

Ingham, J. (2015). Strategic human capital management: Creating value through people.