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Given the current propensity toward globalization and multiculturalism in the environment of most markets (World Economic Forum, 2016), there is a consistent need to address the issues that may occur in the course of cross-cultural communication. The dilemmas related to the subject matter do not necessarily concern direct conflicts; apart from the latter, misconceptions and the inability to adjust the workplace environment so that the representatives of any culture could feel comfortable in it deserves to be mentioned (Deloitte University, 2016). As the case of AGC shows, creating a multicultural environment in which the needs of all stakeholders are taken into account is the most promising strategy that is likely to lead to a strikingly rapid improvement in the staff’s performance.
Culture Issues and Human Capital Problems
Meeting the needs of the employees in the environment of the global economy is admittedly challenging because of the necessity to focus on a variety of other aspects of the firm’s functioning. Without a sustainable approach toward resources management, a leader will be incapable of paying due attention to the communication issues in the organization. Therefore, the promotion of a set of values aimed at creating a multicultural environment must be considered (Antwi, Opoku, Seth, & Margareth, 2016).
A closer look at the case will show that the HRM managers are not fully aware of the reasons for the former members of the organization to leave. In other words, neither of the HR department members concerned themselves by asking the employees about the reasons for their dissatisfaction. The specified phenomenon shows clearly that the lack of care for the people that work for the company, as well as the unwillingness to encourage them to perform better, can be deemed as the foundational problems of AGC (Halim, Ahmad, Ramayah, & Halifah, 2014).
Leadership Styles: Effects on Global Organizational Culture
Seeing that the adoption of an appropriate leadership style may motivate people to learn more about other cultures and, therefore, adopt a more sensible approach toward the cross-cultural communication process, it can be assumed that the choice of a leadership strategy has a direct effect on the global organizational culture. For instance, in the case under analysis, Shawn’s idea concerning the increase in diversity rates in the organization and the emphasis on multiculturalism as the foundation for the communication process is likely to have a positive effect on the employees’ workplace experience and, therefore, on their performance (Yasin, Nawab, Bhatti, & Nazir, 2014).
The Transformational Leadership (TL) framework, which is currently viewed as one of the most popular strategies for managing relationships in the multicultural environment, should be viewed as the possible tool for improving relationships between the staff members and the managers by convincing the latter to focus on the culture-specific needs of the staff. Furthermore, the approach will have to be supported by the Visionary Leadership strategy, which will serve as the foundation for the company’s HR-related choices. Thus, a gradual change in the global organizational culture will change gradually. As a result, the principles of better quality management, such as TQM, can be introduced to the target setting (Batool, Rahman, & Akhtar, 2016).
Human Capital Management Goal
Shawn should consider investing in the staff members and building a multicultural environment in which they will feel comfortable to improve the current situation. Furthermore, a radical change of the corporate ethics and values toward the need to take the needs of all stakeholders including staff into account must be included in the list of the firm’s goals. As a result, the company will be able to retain its employees and promote essential ideas related to the corporate values to them (e.g., the significance of professional growth, acquisition of new skills, meeting the Corporate Social Responsibility standards, etc.).
Antwi, J. O., Opoku, A. C., Seth, A., & Margareth, O. B. (2016). Assessing the human resource management practices of public banks from employees’ perspective: Case study of selected branches of Ghana Commercial Bank, Kumasi. Global Journal of Human Resource Management, 4(1), 13-30.
Batool, S., Rahman, S., & Akhtar, N. (2016). Relationship of management-rated high performance work system and competitive advantage: mediating role of collective human capital. Abasyn Journal of Social Sciences, 9(1), 176-187.
Deloitte University. (2016). Global Human Capital Trends 2016. The new organization: Different by design. Westlake, TX: Deloitte University Press.
Halim, H. A., Ahmad, N. H., Ramayah, T., & Halifah, H. (2014). The growth of innovative performance among SMEs: Leveraging on organisational culture and innovative human capital. Journal of Small Business and Entrepreneurship Development, 2(1), 107-125.
World Economic Forum. (2016). The human capital report 2016. Web.
Yasin, G., Nawab, S., Bhatti, K. K., & Nazir, T. (2014). Relationship of intellectual stimulation, innovations and SMEs performance: Transformational leadership a source of competitive advantage in SMEs. Middle-East Journal of Scientific Research, 19(1), 74-81.