Responses U2 DB

Response 1:

After carefully evaluating the current    position of AGC, it is evident that some of the most glaring issues    affecting AGC’s performance and competitive edge in the    marketplace is the lack of a unified organizational culture and the    company’s inability to align their global human capital goals    with organizational goals. If AGC aspires to remain an industry    leader, it is paramount for the organization to take a collaborative    approach to generating a unified culture across all divisions of the    firm. Also, if AGC relentlessly ignores the cultural differences of    its global subsidiaries, it is likely to breed and compound human    capital problems such as a decline in employee performance and    morale that may subsequently affect the quality of goods, customer    service, and potentially cause friction amongst co-workers. As    DuPraw & Axner (1997) explain, culture is not only complex, but    it is one of the most dominant forces to act upon an individual    because it dictates how people will act and behave in a particular    environment. Therefore, as AGC starts to address the cultural    differences across all branches of the organization, it is vital for    the leadershop group to gain a firm understanding of the different    attitudes and communication and decision-making styles to help    develop a strategic approach to aligning goals and building a    comprehensive plan to change (DuPraw & Axner, 1997, Markowitz ,    2011). 

               When creating an organizational culture, having a firm understanding    of the different attitudes, communication and decision-making    styles, is essential. It is important that the leaders know how to    effectively communicate employee expectations, while understanding    that not all employees have the same attitude towards change or the    experience needed to make rational decisions. Equally, it is vital    that the leaders implement the appropriate leadership style to meet    the needs of the company and foster a unified culture. In    AGC’s case, the best leadership style to adopt would be the    participative (democratic) leadership style, because it encourages    all employees to lend feedback, ideas, suggestions and to    participate in the decision-making process. After all, it is the    organization’s culture that defines ‘how things get    done’ and therefore, as long as the leaders are able focus on    the mission, vision, and goals of the organization and openly    communicate with the employees, long-term success and sustainability    are possible (Pirraglia, 2017).

               As previously mentioned, the alignment of human capital and company    goals is also vital to the success of creating a unified culture and    overcoming cultural differences. As AGC looks to develop its human    capital management goals, it is important to categorize them around    the three major human capital systems; talent, performance    management, and leadership. With the three cornerstone systems in    mind, examples of human capital goals to consider would be to    attract and retain a high-performing workforce with technical and    professional skills by developing plans for the quantity and type of    employees needed. Also, by implementing a flexible staffing process    and reassigning or rotating employees through the different branches    of the company and continuously develop workforce skills and    competencies, allocate human resources across the organizational    components to better respond to the evolving and changing    environment are helpful in building a unified culture and breaking    down barriers to change. As long as AGC leadership is willing and    able to implement the aforementioned human capital management goals,    the prospect of creating their desired culture and remaining    competitive in the marketplace is plausible and realistic (Office of    Personnel Management, 2005).

Response 2:

As    AGC becomes a global company, they need to keep in mind that issues    will arise if they do not recognize the cultural differences in    their foreign subsidiaries. According to SHRM (2015), “culture    has a tremendous impact on employee engagement and cross     –employee interaction”. Some cultural issues that come    to mind are communication, business etiquette, worker norms and    expectations and leadership styles. 

Communication    and business etiquette are probably one of the biggest barriers when    it comes to cultural differences. Take the Chinese for example;    business people in China tend to build relationships with their    clients and connect with face to face interactions especially before    they conduct transactions. Business people in the United States    however tend to put the transaction first and tend not to place any    kind of importance on the relationship with the client, as it is    merely a business transaction (Thompson, n.d). A second issue is the    worker norms and expectations. In some countries such as those in    the Middle East, religion has a huge impact on the daily lives both    personally and professionally. While in the United States religion    rarely plays a role in the work place. A United States corporation    may have to take special consideration in dress code and    accommodations for religious practices with subsidiaries in the    Middle East. 

Leadership    styles can also affect a globalization culture. In the case of AGC,    the leadership styles that are present are transformational and    transactional. As discussed in the previous discussions both of    these styles have pros and cons but each are needed to run a    successful company. According to Chamorro-Premuzic &Sanger    (2016), core ingredients of leadership such as good judgment,    integrity, and people skills are universal but successful leadership    requires culture-specific ingredients. This means that when it comes    to cultural leadership there is no one size fits all philosophy.    Chamorro – Premuzic & Sanger go on to explain that    decision making styles, communication and even dark-side tendencies    are influenced by the geographical areas. A leadership style such as    democratic that is widely accepted in the United States may not be    as acceptable in a place in a country in the Middle East such as    Dubai. There is absolutely nothing wrong with either type of    leadership style but it would be beneficial for ACG to learn the    culture and the customs of their foreign subsidiaries in order to    have a successful global organization.

               Diversity would be a great human capital management goal that Shawn    should try to achieve for AGC. Johnson (n.d), states that the    definition of global diversity should include an understanding of    the differences between countries as well as the internal diversity    between each country. This means that an organization must be    knowledgeable of not only business culture and customs of employees    and managers but also be versed in the customs and cultures of the    customers. Diversity training for the managers and employees of AGC    would be an ideal way to meet this goal so that the organization    could stay at the top of the market chain.