Answer To: Part 1 The board of directors at AGC needs a status update on yourchange management project. Shawn...
David answered on Dec 25 2021
Executive Report 1
Running Head: EXECUTIVE REPORT OF AGC
Executive Report
Executive Report 2
Part 1:
Diagnosis:
AGC has been engaged in the production and marketing of electronic circuit boards
utilized for high-definition TV screens. Being a multinational corporation, the company has 3
subsidiaries located in Asia, Africa and South America. Several problems have been faced by
the company regarding human capital management. AGC was desired to make every
subsidiary self-sustainable but failed due to some problems (Alvesson, 2012). The major
problems faced by AGC were issues related to intercultural communication, employee
retention and motivation, employee dissatisfaction, diversity and multiculturalism; and
political and regulatory conditions of subsidiary countries. AGC diagnosed these problems at
the time when employees have started leaving the company.
At the same time, it can be analyzed that AGC was unable to detect the exact number
of employees left as new employees were hired for their replacement immediately. The root
cause of these issues can be determined as the ignorance of these significant factors during
the development of company’s structure (Böhm, 2009). Employees were not given adequate
emphasis which resulted in a high employee turnover rate. There was the absence of
employee motivation and retention policies as well as employee training for diversified
culture in the organization. Due to this, employees were faced difficulty in dealing with
people of different cultures (Alvesson, 2012).
Intervention:
There were several strategies for managing human capital that should be implemented
in AGC. Overarching human resource strategies should be adopted in which main focus is
given to employee retention, commitment and motivation. The major strategies were
employee retention and motivation and diversity training to employees (Daft, 2014).
Employee retention strategy was implemented by adopting a corporate culture, having
Executive Report 3
employee recognition, reward system, training and development opportunities and positive
work environment. Employees were given rewards for their motivation and provided training
for intercultural organization. Employee motivation was crucial for AGC at that time because
of which employees were left, which decreased the employee retention rate (Böhm, 2009).
In this strategy, employees were motivated by monetary and non-monetary incentives
as well. Another strategy was to provide cross-cultural training to employees as it is a
multinational company that has to deal with people of different background and culture. It
can be seen that subsidiaries of the AGC are located in industrial centers, where the
competition for same market segment and same labor force is intense (Douglas, 2007). In
such a case, it was necessary for AGC to retain its employees and make them more
competitive by providing diversity training. For retention, employees need to be motivated so
that a positive and dedicated work environment can be developed (Daft, 2014).
Evaluation:
After implementation of strategies, it was necessary to measure the effectiveness of
the change management plan. This effectiveness can be measured by using three types of
metrics that are individual employee assessment, overall performance metrics of subsidiaries
and the effectiveness of change management activities (DuBrin, 2008). For individual
employee assessment, metrics such as...