An Overview
Atlantis Global Corporation
(AGC) is a multinational organization that engages in the development,
manufacture, and marketing of electronic circuit boards for use in
high-definition TV screens. Although the design centers are located in the United
States, the bulk of the manufacturing processes are carried out at their
overseas subsidiaries. The electronic circuit boards are primarily sold to
Original Equipment manufacturers located in North and South America, Africa,
and the Asia/Pacific region. Headquartered in the Midwest United States, AGC
has subsidiaries in three locations, on three continents: Subsidiary A in Asia,
Subsidiary B in Africa, and Subsidiary C in South America. In all three
locations, the subsidiaries are located in industrial parks or centers. These
locations were selected for strategic reasons, including an abundance of raw
materials for the company’s products, the availability of a labor force, and a
rapidly growing customer base. Within the industrial parks, it is not uncommon
to find two or three organizations competing in the same market segment and for
the same labor force.
As part of its global human
capital staffing strategy, AGC relocated several key people to leadership
positions at each of the three subsidiaries. By placing key personnel from
headquarters in leadership positions, AGC assumed a unified culture. Senior
leadership envisioned that the subsidiaries would be self-sustainable in 2
years and profitable thereafter. A lot of capital, both tangible and intangible,
has been committed to making the subsidiaries functional.
AGC has approximately
84,000 employees, most of whom are highly skilled and specially trained in the
operations they perform. On average, it takes 3–6 months to fully train
employees in each of the many operations of the parent company and its
subsidiaries. Although the head count at the three subsidiaries has remained
fairly constant, there have been a number of employees who have left the
company for a variety of reasons. As employees leave, others are hired to
replace them, but no one knows the exact number of employees who left the
company or the reasons why they have separated.
At the subsidiaries, line
and middle managers are concerned with having the right number of employees at
each function or workstation. The operations manual, which the line and middle
managers follow religiously, indicates that all staff must be fully trained and
certified before they should be allowed to work on their own. Further, this
requirement indicates that if someone has been certified before leaving the
company, he or she must be retrained and recertified if rehired—no
exceptions—even if his or her absence has just been a week. On the other hand,
a trained and certified employee who is out on vacation or medical leave for a
month is not similarly required.
The Issues
Since operations began in
the three subsidiaries, AGC has failed to meet its financial obligations, and
profits are lagging. This is beginning to show in the company’s balance sheets
and is taking a toll on the organization’s financial bottom line. Although the
company’s structure is designed for adaptability in a fast-changing market,
several other factors were overlooked when the company selected locations for
the subsidiaries. These include, but are not limited to, the following:
·
Intercultural communication
issues
·
Political and regulatory
conditions of the host country and the subsidiaries
·
Diversity and
multiculturalism
·
Employee retention and
motivation issues
·
Employee dissatisfaction
·
Performance issues
·
An overall global human
capital strategy that takes into account the home and host country nationals
AGC, often considered the
leader in this market, is in jeopardy of losing that title when the end-of-year
reports come out in 3 months. This is a critical time for the organization and
the senior leadership team is very concerned. They need to find out what is
happening to the organization, report to the shareholders, and rectify the
situation.
John Dawson, the CEO, COO,
and Chairman of the Board of Directors at AGC, is deeply concerned about the
future of this company. Past strategies have not advanced AGC to a leadership
position in the global market. John believes that he has done everything that
can be done to optimize the company and is reluctant to change the present
strategic course. He is a reluctant risk taker and must be convinced that
changes to the organization have value before changing direction.
John is currently working
with Shawn Williams, the newly recruited Director of Global Human Capital
Management at AGC. His priority is to help diagnose and address the company’s
human capital issues. Shawn brings with him extensive experience in resolving
global problems, and he is recognized as an expert in the field of change
management and viewed as a motivational leader. John and Shawn will be meeting
soon to align goals and set a new strategic path for Atlantis Global
Corporation.
As the new external
consultant for AGC, you will be working closely with Shawn to establish a
cross-cultural team that will address the company’s global challenges. You will
provide guidance and recommendations regarding each objective and anticipated
outcome. This is a critical assignment because failure could lead to the
dissolution of AGC.
