Introduction
Multiculturalism is one of the main factors to be taken into account in the work of any transnational organization with offices and productions in different parts of the world. Despite the globalization and informatization processes that are taking place in society and affect almost all developed and developing countries and industries, the critical features of the mentality and traditions of different regions must be taken into account. The lack of attention to this factor during the shaping of one of the most important capitals for the functioning of the company – the human capital – has caused the company’s current and potential problems and increased risks.
Diagnosis
In the context of the case scenario studied, the first thing that should be emphasized is the main points, which caused the problems, and which should be affected by the process of changes to normalize the situation. The described situation demonstrates obvious shortcomings and errors in the formation of the management branch of the subordinate companies A, B, and C. In addition, there is insufficient control over the active employees regarding the lack of up-to-date information about their numbers. Thirdly, the rules of certification and recertification are incorrect even if implemented in a mono-market organization.
Thus, the above reasons contributed to the problem of employee retention, a drop in productivity, and employee underperformance. In turn, the main root cause and unifying feature of almost all the disagreements that have arisen is the lack of multiculturalism or its absence directly in the field and at headquarters (Varela, 2019). Such an approach is ineffective and damaging to the formation and existence of human capital and threatens the company’s future.
Intervention
As an intervention to fix the situation, several changes are proposed aimed at correcting the situation and normalizing the work of all departments. Such changes should cover all areas completely since human capital operates in all areas of the company (Okolie, 2020). Nevertheless, most attention should be paid to the A, B, and C firms abroad while implementing human capital management strategies.
Management
In the context of the management structure of the company, it is recommended that an independent performance evaluation be conducted immediately. This evaluation should include human resources managers and specialists in the central and peripheral divisions. Concerning the remote units, it is recommended that financial, operational, and performance audits of human resources management are carried out for the currently designated line managers (Stone et al., 2020). A further selection of unsatisfied managers should consider the region where they will work and the importance of multiculturalism.
Employment
Considering the mentality and difficulty of selecting the necessary critical specialists in certain countries, it is recommended to contract with local recruiting companies with the highest reputation temporarily. In addition, financial or management outsourcing to specialized organizations in the countries of operation is also possible (Okolie, 2020). Suppose the management of current employees or candidates from the head office is satisfactory. In that case, hiring a consultant in the host country for management and internal human resources is mandatory. Attention to employee retention, the current mood of the team, and its composition should be monitored and evaluated by such consultants.
To further normalize the situation in light of the traditionalism of some communities, it is recommended that managers of appropriate ethnicity be seconded to the country of assignment and that women be avoided in the highest positions if possible. Unfortunately, in today’s world, there are still gender and racial inequalities in many developing countries, and the unit’s effectiveness can suffer. When considering this information in decision-making, all ethical norms must be respected, and violating employees’ rights is unacceptable. However, the experience of failures in appointing women regional managers in the Middle East and Africa needs to be taken into account (Tlaiss & Al Waqfi, 2022). Differences in cultures and traditions are often incomprehensible to members of other nations.
Job Requirements
Undoubtedly, the complexity of the job requires appropriate qualifications. However, it should be evaluated separately for each position, and recertification with tests should be regular for all in due course. An employee who has been certified and quit for a week cannot lose qualifications and knowledge and should not be re-evaluated. Such a fact most likely indicates an inadequate attitude toward data retention by the human resources department, which is also unacceptable. In addition, such situations increase dissatisfaction, reduce retention, and generate unnecessary bureaucracy. Current certification rules and regulations should be reviewed.
Reports
As part of the remediation process, report requests need to become more frequent and keep their hands on the pulse of the situation. When human capital is essential to an organization, multiculturalism must be considered. Due to the information provided, AGS’s status as a leader in human capital management is undeserved and is likely to be lost in three months. However, if acted upon skillfully and hastily, its recovery could most take from two quarters to a year.
Evaluation
The effectiveness of decisions made is evaluated by the company’s overall performance levels in all areas, data from reports, and employee feedback. For a more accurate assessment of results, it is recommended to conduct regular anonymous questions by region with employees at all levels to monitor the situation and respond to problems promptly and actively (Stone et al., 2020). Moreover, the retention and dismissal index will demonstrate the company’s attractiveness for the staff and will raise organization’s market performance.
Conclusion
With the utmost respect for other cultures prevalent in American society today, management has not considered all the specifics and nuances of more narrow-cultural societies when expanding. Deploying specialized employees, hiring local professionals, or outsourcing management can help solve this problem. Increased attention to accountability, opinions, and concern for overseas colleagues will quickly lift all related areas and return AGC to a leadership position.
References
Okolie, U. C. (2020). Effect of diversity management on human resource management: Recruitment and selection in focus. Annals of Spiru Haret University Economic Series, 20(2), 63–86. Web.
Stone, R. J., Cox, A., & Gavin, M. (2020). Human resource management, 10th Edition (10th ed.). John Wiley & Sons.
Tlaiss, H. A., & Al Waqfi, M. (2022). Human resource managers advancing the careers of women in Saudi Arabia: Caught between a rock and a hard place. The International Journal of Human Resource Management, 33(9), 1812–1847. Web.
Varela, O. E. (2019). Multicultural competence: an empirical comparison of intercultural sensitivity and cultural intelligence. European J of International Management, 13(2), 177. Web.