A New Strategic Approach to Human Capital

Subject: Management
Pages: 4
Words: 930
Reading time:
4 min
Study level: Master


The modern global economy more than ever values talent and creativity over following the established routine. Therefore, it is crucial to pay attention to retaining smart employees. In many cases, when a company encounters a decline in performance, the root causes lie in issues connected to human capital management. Notably, it is a persistent pattern in global multinational corporations, such as AGC. Therefore, we must make a diagnosis of the problematic issues related to HR in AGC.

Several aspects should be carefully reviewed in connection with human resources.

Communication issues

Communication and collaboration are hugely important when it comes to a companys performance. However, we have grounds to believe that in AGC communication is not well-developed across the board. Collaboration between different departments is limited; the employees do not feel encouraged to express their opinions or anxieties, share ideas, or ask for advice from senior managers.

Social Network Analysis

To go deeper into this problem, we suggest conducting social network analysis in the form of questionnaires distributed among the employees in the subsidiaries. After receiving the response, we will create visual maps representing the network. Analyzing the maps and the questionnaires will help us to identify what is deficient.

The challenges of multiculturalism

Besides, AGC has problems with adjusting to working with multicultural stuff. The subsidiaries seem to lack autonomy and flexibility. Religious following of the headquarters requirements with little attention paid to local differences can lead to a decline in performance. There seem to be problems connected to cultural and language barriers, trust issues and lack of local people occupying managerial positions.

Data collection

In order to see the full picture, we should interview both the employees and the managers in the subsidiaries, asking them whether they encounter any cultural or language barriers while communicating, so as to see what should be improved. Besides, we should study the documents to see how many locals occupy senior management positions and how they had distinguished themselves before acquiring them. Local people must have access to positions with real authority but should not be employed entirely for the quota.

The reasons behind the employees dissatisfaction

Another problem which had been overlooked for a long time is the employees dissatisfaction. There has been no research conducted on the reasons behind their resignations. Moreover, no attention has been paid to the actual number of people who have left the company. The managers in subsidiaries were seeing their departures as independent decisions while being predominately concerned with hiring and training new employees.

Identifying the causes:

  • Step 1: Conducting interviews with the former employees and the people who want to resign;
    • Asking them about the reasons behind their decision and about their general experience of working in the company.
  • Step 2: Conducting interviews with the current employees;
    • Asking them how do they feel about working in AGC, what do they think is the most important objective of the company and how they are contributing.
  • Step 3: Examining the data to identify the main causes of dissatisfaction;
  • Step 4: Analyzing how the staff perceives the company;

Therefore, research into the main issues that prompted people to resign should be conducted. The company should reach the former employees and the ones who are expressing their desire to leave and ask them about the reasons behind their decision. Moreover, interviews about their experience of working in the company should be conducted in order to see the full picture. The employees who continue working in AGC can also be asked some general questions. As a result, we will be able to see how the employees perceive the company and identify the main reasons for dissatisfaction.

The underlying causes:

  • Lack of the broad, systematic approach to human capital development;
  • Regular interviews and performance management strategies are absent;
  • Across the board communication is not encouraged;
  • Underdeveloped corporate culture: lack of shared values and objectives; lack of motivation and feeling of involvement;
  • The prevalence of hierarchical models and lack of flexibility.

It is important to emphasize that the root cause of the current problems of AGS lies in the lack of a broad, systematic approach to human capital development. The company pays close attention to the training of employees but does not devote enough time to implementing broader strategies such as performance management, conducting regular surveys and interviews, enhancing communication and collaboration. More analytical work from the HR departments, both in the headquarters and in the subsidiaries, is required.

Another important issue is connected to the corporate culture of AGC. Studies suggest that corporate culture plays a significant role in a companys performance (Jakobsen et al., 2017). It is a combination of the main values, approaches, and objectives shared by employees. It also represents the dynamics in the interactions within the company.

Communication should not be strictly hierarchical – managers should encourage employees to express their concerns and opinions so that they can feel involved. They should share similar values and understand the main objectives of the company. Creativity and collaboration should be facilitated across the board. Unfortunately, the corporate culture of AGC remains highly hierarchical, and communication is not promoted. It seems that the majority of the employees do not feel like they are doing something meaningful.

By conducting the interviews we will enhance our understanding of both the problems on the surface and their root causes. We will be able to see a clearer picture of what is going on in the company. This strategic approach will not only help us to improve the current situation promptly but it will also increase our chances of creating a better working system.


Jakobsen, M., Worm, V., & Li, X. (2017). Navigating a global corporate culture: On the notion of organizational culture in a multinational corporation. In T. J. Andersen (Ed.), Responsive global organization (pp. 125-148). Emerald Group Publishing.

Vogelsang, J., Townsend, M., Minahan, M., Jamieson, D., Vogel, J., Viets, A., Royal, C., & Valek, L. (Eds.). (2013). Handbook for strategic HR: Best practices in organization development from the OD Network. AMACOM Division of American Management Association International.