Introduction
In today’s world, strategic human capital management is the key to highly effective corporate management focused on achieving growth and rapid progressive development. Modern industries depend on human capital, which includes education, professional skills, experience, motivation, and soft skills (Pattanayak, 2020). Attracting suitable employees and their continuous training and retention allow for building a long-term company development strategy, minimizing the risks of being left without a qualified workforce (Pattanayak, 2020). The Atlantis Global Corporation (AGC) is a multinational company that designs and manufactures precision electronics. Sizeable multinational tech corporations often have around 100,000 employees, most of whom are highly skilled and have specific technical experience, which increases their value in the labor market (Amladi, 2017). In such conditions, staff turnover negatively impacts the company’s performance, setting challenges for diagnosing problems in human resource management.
Diagnosis Purposes
Diagnosing issues in human resource management are necessary to adapt promptly to changes in the market, in the company’s strategy and monitor workers’ motivation levels. Typical challenges of high-tech campaigns are the long cycle of training highly qualified personnel, the high turnover of highly talented workers, and the need to constantly retrain and motivate them (Stonehouse & Konina, 2020). To diagnose problems that arise in workers, various methods are used, including tracking staff turnover and the dynamics of key performance indicators (Kokina et al., 2017). In addition, qualitative methods are used – screenings, polls, one-to-one meetings, etc. (Stonehouse & Konina, 2020). Moreover, HR managers can evaluate what management techniques are used and propose extensions of compensation and benefits programs.
Current Human Capital Management Problems
AGC has a number of problems arising from the specifics of the company and its international status. First, the campaign should have addressed issues of intercultural communication and diversity that arise because the company is international (Amladi, 2017). Second, AGC has high levels of employee turnover, hence high levels of employee dissatisfaction and low motivation. Outdated HR practices and authoritarian methods of management reduce the motivation of highly educated people. Thirdly, the company needs to have its own systematized and digitalized retraining and professional development program that any employee could take at any time (Amladi, 2017). AGC relies on old methods of transferring knowledge and gaining experience, which makes the firm vulnerable to losing employees. Thus, AGC runs the risk of becoming unattractive to a highly educated and skilled workforce now in high market demand.
Human Capital Problems and AGC Goals
At the moment, AGC’s management type is defined as authoritarian, which does not correspond to the needs of managing human capital engaged in research and high-tech work. First, AGC needs to increase the democratization of governance by introducing an ethical code of conduct and involving employees in making governance proposals (Cooke et al., 2019). Gathered qualitative data can show uncovered multicultural needs of personnel. Second, using incentive programs such as say-on-pay can help link employee remuneration to performance and skill development (Cooke et al., 2019). Basic polls with benefit options will give information on the workers’ preferred programs. Third, the AGC may move towards an academy culture where the more experienced and educated employees are, the more influence they have in managing and educating rising staff (Cooke et al., 2019). This culture is well suited to the fields with a highly skilled workforce. Performance reviews and screenings can highlight the most active employees and put them forward in academy culture promotion.
Conclusion
Modern companies rely on their human capital as much as they do on technology and finance. In particular, when it comes to such high-tech industries as AGC, highly qualified personnel want to participate in development and management and have career prospects. The root cause of modern changes in HR lies in the growing demand for highly educated and qualified people who have high requirements for their jobs. It is impossible to retain people if they are not satisfied with the internal HR culture of the company and cannot influence it. To do this, AGC needs to apply democratization measures, improve intercultural communication and use the experience of international differences and advanced reward systems.
References
Amladi, P. (2017). HR’s guide to the digital transformation: ten digital economy use cases for transforming human resources in manufacturing. Strategic HR Review,16(2), pp. 66–70. Web.
Cooke, F. L., Wood, G., Wang, M., & Veen, A. (2019). How far has international HRM travelled? A systematic review of literature on multinational corporations (2000–2014). Human Resource Management Review, 29(1), 59-75. Web.
Kokina, J., Pachamanova, D., & Corbett, A. (2017). The role of data visualization and analytics in performance management: Guiding entrepreneurial growth decisions. Journal of Accounting Education, 38, 50-62. Web.
Pattanayak, B. (2020). Human resource management. PHI Learning Pvt. Ltd.
Stonehouse, G. H., & Konina, N. Y. (2020, February). Management challenges in the age of digital disruption. In 1st International Conference on Emerging Trends and Challenges in the Management Theory and Practice (ETCMTP 2019) (pp. 1–6). Atlantis Press. Web.