The Human Capital Management

Junior (College 3rd year) ・Business ・APA ・2 Sources

The level of technology has significantly improved and globalization has increased over the past ten years, which has led to business expansion into overseas markets. They concentrate on accomplishing this in order to outperform their competitors in the market and enhance their financial performance. Organizations have also been at the forefront of using the resource-based approach of the human resource department and hiring competent and talented individuals in their effort to improve performance. The improvement of a company's performance while also creating value is the focus of human capital management. In this paper, an assessment of the AGC’s new leadership roles and organizational culture will be conducted as well as the analysis of the potential and external threats. The paper will also look at the methods that will be used by the company in the detection of the threats and protective measures to be put in place.


AGC’s new leadership style and organizational culture

The new leadership style that has been put in place by the AGC Corporation is transformational leadership. It is designed in such a way that the leaders of the organization work hand in hand with the employees in the identification of the necessary changes, creation of vision and putting in place measures that can be instrumental in the enhancement of the firm’s performance. In the recent past, AGC’s leadership has been on the frontline in motivating its workers, and this is focused on enhancing their productivity and improving the retention rates of the most talented employees. As a part of the company’s culture, it occasionally scans its environment with the aim of identifying threats and opportunities and at the same time enhance its long-term planning (De Waal, 2013). The firm also currently enjoys a bolstered employee-morale and is in the process of putting in place measures that will be vital in improving staff members’ work rate.

Potential internal and external threats

There are various potential internal and external threats that the organization needs to be prepared to address. One of the internal threats that may serve as obstacles towards AGC’s improved productivity is low skilled task force. With the advancement in technology, some of the workers may lack specific skills and this may make it hard for them to handle various roles within the firm.

The firm may also be faced with increasing conflicts among the workers, and this may make it hard for it to meet the set goals. Despite the transformational leadership in place, the company is yet to address some issues such as lack of inclusivity and equality that creates a lot of friction among the employees in various departments (De Waal, 2013).

External threats come from outside and are usually responsible for changes that negatively impact the company. AGC may be faced with an increase in competition in the market such as PPG Industries, and this may end up contributing to a decline in its financial performance. Apparently, this may be coupled with changing consumer demands which may affect its sustainability (Eriksen, 2014).

Tight market and government restrictions may also make it hard for the AGC to meet its productive goals. The company’s quest for expanding into foreign markets, for instance, may be thwarted as a result of tough regulations in some of the countries. It may also be faced with contractual obligation threats that restrict the number of people that the firm hires, impairing its productivity.

Methods of detecting internal and external threats

In the quest for detecting internal and external threats, it will be necessary for the AGC to come up with a SWOT Analysis whereby weaknesses, opportunities, threats, and strengths of the firm will be critically assessed. The management will be required to ask its employees various questions related to challenges they face and in the process come up with suitable measures to address the issues (Eriksen, 2014). By hiring competent staff, for instance, the company will find it easy to increase its performance.

As for external threats, the company will have to come up with an extensive research that will focus on identifying its competitors in the market and some of the reasons behind their strengthened performance. AGC will also focus on unearthing some of the strict regulations in the foreign markets during the research process.

Protection of the organization from threats

One of the methods that will be instrumental in the protection of the organization from both internal and external threats will be incorporation of diversity. As a part of inclusivity, the HR will be mandated with the role of hiring skilled workers from various cultural and ethnic backgrounds (De Waal, 2013). Measures aimed at thwarting gender disparity will also be implemented within the AGC Corporation.

The AGC will also have to conduct a competitive analysis that will focus on tracking all the moves made by a competitor, their strengths, and weaknesses. The company, in so doing, will also come up with suitable measures that will give it a competitive advantage over the rivals in the market (Eriksen, 2014). The move by the firm to come up with unique products, for instance, will help in capturing the attention of various consumers thus an increase in its market base.


The roles of the human resource managers have changed rapidly in the past decade. Companies such as AGC, in their quest for remaining sustainable in the market, have to ensure that they provide their workers a suitable working environment where they can meet their goals. The firm may also enhance its performance by producing products that meet consumer tastes and preferences.


De Waal, A. (2013). Strategic Performance Management: A managerial and behavioral approach. Palgrave Macmillan.

Eriksen, B. (2014). Rethinking Sustained Competitive Advantage from Human Capital Again. SSRN Electronic Journal.

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