The Changing Role of Global Human Capital Managers and Sustaining the Competitive Edge

The Changing Role of Global Human Capital Managers and Sustaining the Competitive Edge

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The Changing Role of Global Human Capital Managers and Sustaining the Competitive Edge

Introduction

            In a rather vast changing environment, it is possible that businesses fail to achieve their desired objective in meeting consumer needs. Realizing consumer satisfaction with employee motivation is among the factors that may help the business grow to levels that were undetermined. Blending the required skills to enable the organization aware of the factors that may cause a haul in business is the most effective method of countering the effect of competitors. The internal and external business environment are the factors that affect the scope of business and failure to recognize how these elements may be resolved creates avenues to impending failure (Khanka, 2005). Although AGC has recorded positive outcomes through realizing increased employee satisfaction and morale, elevated employee retention rates and substantially improved productivity, an evaluation of the internal and external threats may provide insight on how the company can form strategies that will be effective in averting the effect of such threats. Furthermore, creating a proactive plan to scan the potential environmental threats may help AGC create countermeasures.

Discussion

Internal Threats

Internal threats are the factors that affect the performance of the business by altering the operational factors within the business (Karami, 2007). There are various internal threats that may affect the business based on the functioning procedures and planning. Leadership and management are among the major factors that may affect the performance of workers in the business since it controls major aspects within an organization. Often people fail to understand that the two levels within an organization have different functions. There are leaders who perform the task of managers while there are managers who perform the task of leadership. Blending the two functions creates a unique blend control that will be effective in handling business processes. However, failure to select people who posses both leadership and management qualities may pose a threat to the business considering one function may fail in performance.

Communication is an important part of any organization since it bridges the gap between people with differences. Communication builds business and worker relationships that will enable smooth flow in business processes (Karami, 2007). Internal communication precisely describes the communication structure within an organization and the hierarchical chain of command. Having a strong communication channel that is built through interpersonal relationships, work activities such as training, policies and constant meetings makes employees feel valued. However, failure to ensure internal communication may cause misunderstandings among workers. The outcome will be incompetence and process failures. This directly translates to performance of the business in terms of profits. Similarly, a deficit in internal communication will shift the attention of the workers from the mission and the goals of the business causing them to concentrate more on resolution. This is consumes time, a factor that is of great essence.

The structure of the business is among the internal factors that affect how the business is carried out. It controls the daily operations of the business such as employees, procurement, sales and the daily records. Although an organization may have a hierarchical structure that is divided into departments and teams, it is important to consider whether the people under each team and department understand how to approach issues at each level. In most cases, employees tend to employ minimum staff with an aim of saving on the employee expense oblivious of the general effect it has on management of products. Employing minimal staff will mean that the workers work under pressure to realize exaggerated deadlines as well as be at their maximum levels of production. This will cost the business in terms of frequent glitches and errors that may be present in records and systems considering the limitation of the workers.

Financial threats are internal factors that are related to the monetary systems that the business has direct control over. The financial threats extend as far as the assets of the company that constitute the capital investment. Businesses require finances on a daily basis that will enable it to carry out the miscellaneous activities associated with money. The financial system proves to be an internal threat since it controls the business profits. Once issues such as the interest rates or the over reliance on a single client emerge, a drop in business may affect the financial aspects within a business (Karami, 2007). Similarly, keeping records of all the financial transactions made within business hours and periods is important if the company is to realize the actual expenses and profits. Financial statements help a business determine if its procedures steer business success or failure. However, once the business fails to manage accounts and statements, they will issue falsified information during audits that may render the business at a risk of closure.

Human resources are necessary if a task is to be complete. These resources include employees, shareholders and the consumers. Among the human factors, employee strength is the major internal threat that a company needs to consider. If the employees lack the qualities of a motivated worker, the business is likely to perform contrary to the expectation. Any business aiming at success needs to have hardworking, talented and goal oriented employees who will steer the business towards achieving the goals of the business. They tend to produce elevated results compared to random workers who are focus on personal gain. For hardworking and motivated employees it is possible to acquire a pool of ideas and resolutions to impending issues that threaten the business. Similarly, employees are the representation of the business and help build the image of the organization. Having mediocre and unmotivated employees impairs growth of the business and weakens its performance.

External Threats

External threats represent the surrounding factors that may affect the performance of the business (Ireland, Hoskisson & Hitt, 2006). The external threats take an evaluation of the opportunities and the threats around the business environment. Competitors in the global market are among the major external factors that a company has to counter if it is to succeed. It involves people and businesses that may offer similar or more services compared to the business under consideration. Most businesses strive to outshine their competitors considering it is what attracts consumers. The ability to offer unique and exemplary services that surpasses that of competitors sets a business a step ahead. However, the extent to which a business can perform is limited by their ability to match the cost with the returns. Competitors may have supplier advantage that enables them maximize ore on customer satisfaction. To any business, trying to match this effect may result to losses or business failure. Furthermore, business objectives and cultures may be different which may set them at a competitive advantage.

Traditionally, businesses used to store files and information on hard copy materials that consumed space and was timely. However, modern technology has enabled companies adapt to the trending system that enables them store information on computers and access the internet when desired. Most companies are struggling to match these advancements considering the application in most countries (Ireland, Hoskisson & Hitt, 2006). The changes will always warrant a demand for companies to change their structure in terms of technology. Among the changes will include the popularity of the internet web, incorporation of technological legislations, the broadband consumer-business market and the changing infrastructure.  Most of these changes are accompanied by unbudgeted financial constraints that the business is likely to incur. Moreover, with most ancient companies having a solid perception on the traditional means, their employees need to be trained on how to manipulate the internet and emerging issues in technology. These changes pose a great threat to the structure of the business.

The economies of scale change over time with most countries experiencing recessions and drops in the economic status. This poses as a threat to most established companies that solely depend on the local market to accrue profits. During such periods, companies are forced to increase their products and service costs or face impending failure or losses (Karami, 2007). Although it seems to affect the production levels extensively, economic imbalance may eliminate a business out of market in case it is not prepared. Customer buying habits are affected once they are aware of the economic impact therefore translating negatively to the business. Economic fluctuations render money valueless in some countries therefore a business threat during the business year. Similarly, recovering from economic situations may prove to be strenuous and financially constricting whose result may be losses.

The government policies and laws regarding businesses changes with time as the effect of globalization are felt across different countries. Any government policies set or amended affects interdependent businesses, producers, manufacturers and suppliers. In most cases, the proposed policies take long before they are approved and implementation. However, the effect is felt long before. Issues such as tax and levies are carefully monitored with some companies being under close evaluation. Political issues also pose a great risk to most businesses considering the hefty influence that comes with political events such as rallies and elections. During such periods, instability may be experienced that places most companies at a disadvantage. Unions and bodies controlled by the government experience constant changes especially the employees under such unions who are expected to adjust to the new structures. Similarly, employers are required to adhere and value the credibility of such unions.

The recent years have seen constant change in the societal and cultural factors in most countries. Modern business trends with changes in preference are among the changing factors in the external environment that affect most businesses. It is impossible to determine a major advancement or change in the products that consumers desire to purchase and use. Although through advertising most companies are able to reach their target market, it is impossible to sway the attention of consumers from a product that is considered fashionable. Such changes render most companies at a disadvantage since it warrants a change in product strategies to bridge the business gap (Ireland, Hoskisson & Hitt, 2006). Similarly, different cultures have staunch perceptions regarding the products they prefer and any move to alter these beliefs is met by hostile consumers. Therefore, businesses struggle to blend to the cultural aspect of the target market to render their purpose relevant. In some areas however, this may prove a challenge.

Detecting Threats to an Organization

            Internal Threats

            Through carrying out an internal risk assessment, a business is able to detect any possibility of threats that may affect the performance. For leadership and management threats, it is possible to detect failure through a drastic drop in issues such as delegation of duties and effective discipline. Communication issues may be detected through evaluating the performance of connected processes such as production and sales departments that may prove incompetent (Karami, 2007). Similarly, an evaluation of the conflict resolution measures applied by the workers can also be evaluated to discover the extent in which effective communication lacks. In detecting structural threats, the business can monitor the behavior of the workers to any change in the procedures that will prompt for change. Financial threats may be detected through closely studying the financial records as well as the trends. Human threats may be detected through observation of workers as they handle tasks.

External Threats

The environmental factors considering the scope of their diversity require a rather practical risk assessment procedure. To detect competitor threats, a business needs to consider the competitor business procedures and strategies and compare them with their own strategies. Technological threats can be detected through ensuring that the company technical team is well updated and aware of the changing trends in the industry. Detecting an economic imbalance is among the hardest tasks that a company can manage. However, through evaluation of the previous trends in the economic system, the business is able to detect challenges and changes before they occur (Khanka, 2005). Similarly, government policies are evaluated and expounded before they are passed. Therefore, businesses are able to detect the impact of such policies through involving a legal team. For societal and cultural risks, businesses are able to detect their impact through keeping an open and close relationship with consumers through the media.

Protecting the organization

Internal Threats

Protecting the business against determined potential threats takes the input of the managers, leaders and workers who work in cooperation to ensure a balance in all factors. Creating an understanding though sensitizing on the effect of the threat across all levels may encourage the workers to work towards ensuring protection. Internal threats are manageable since they emanate from the business (Khanka, 2005). Therefore controlling the operations through business policies and rules accompanied by hefty consequences will enable the workers work to ensuring business success.

External Threats

External threats are impossible to control since they do not emanate from the business. However, to protect the organization from surrounding threats such as competitors, the business can develop a unique strategy that can counter the effect of external threats. This involves engaging in unique business processes and allocating funds to counter threats that cannot be averted. Forming alternatives and back up plans may also protect the business from occurred threats and relieve them of the financial burden associated with recovery. Staying updated with the trends through using print and social media systems will help the business remain relevant in the global market.

Proactive Plan of Environmental Scanning To Evaluate Any Existing Threats to AGC

AGC needs to remain relevant in the competitive and global changing environment. Therefore, this proactive plan will enable AGC scan and evaluate the cope of existing environmental threats to the business (Khanka, 2005). AGC can use undirected viewing can visualize that the environment has some threats within it but it is impossible to evaluate such threats. Therefore, gathering information during this phase may mislead the business, which may be costly. AGC at this point is satisfied with the current competitive environment. The second phase, conditioned viewing involves analyzing environmental threats only that are clear and evident. Resources allocated to evaluate the scope of such threats are inexpensive and do not involve allocating any team. The enacting phase involves penetrating the environment to influence the outcomes of the impending threats (Khanka, 2005). The search phase involves allocating full-time resources to the evaluation of the threat. The information gathered is formal, qualitative, and quantitative and market determinable. With this plan, AGC is able to develop countermeasures.

Conclusion

            Business threats are common issues that test the credibility of a business prompting them to take all and necessary precautions to avoid any undesired outcomes. Internal factors threaten the operation of the business by interfering with the different sectors within the business. Detecting and handling internal factors proves to be an easy task since it involves an evaluation of the known variables. Although this is the case, external threats prove to be difficult to determine and handle. They cover issues beyond the capacity of the business and any move to counter such issues without prior evaluation may cost the business. Carrying out risks assessment on all business levels is the most appropriate method of determining the extent to which a threat may affect the business. As much as studying and determining potential threats proves to be a step in the right direction, the issue arises in the methods that the business would use to protect itself. In the case of AGC, an environmental evaluation plan will be effective in handling potential external threats.

 

References

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Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2006). Understanding business strategy: Concepts and cases. Mason, OH: Thomson Higher Education.

Karami, A. (2007). Strategy Formulation in Entrepreneurial Firms. Ashgate Publishing Group.

Khanka, S. S. (2005). Human resource management: Text and cases. New Delhi: S Chand.

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