Human Capital Management Essay

Executive Report
Introduction
In any organization there are five  M’s which are very important, namely, Machinery, Material, Men, methods  and Money. Amongst all the M’s the Men is the most important and crucial M.  as these are the men who are responsible for managing and guiding the rest. Men behind the machine are important to operate and control it, in the similar manner for the optimum utilization of material and money the right kind of professionals are required. Thus we can say for the success of any company or organization the right people, at the right place and at the right time is necessary to be ensured.  The human capital management is the tool that can ensure and maintain the required systems.



Importance of Human Capital Management
The human capital management is the technique through which the employee staffing is maintained. The approach considers employees as an asset and thus believes in investing and maintaining them.
Human capital management (HCM) is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment.
Thus implementing the human capital management is not only helpful but vital for company’s growth and success. The employees of an organization can be seen as synonymous to players in a team and to win the game the best players are required in the same manner in an industry to be the leader a company needs right set of employees.

Significance and Objectives of HCM
Human capital management also help in systematic resource planning and management. It helps in procuring as well as maintaining the required manpower.
Human capital management also help in bringing the timely innovation and creativity to the organization.
Human capital management is essential for managing, training and improving the human assets.
It is responsible to provide necessary orientation and guidance to the incumbents.
In today’s highly competitive environment it is necessary to be updated with knowledge. Human capital management equips people with knowledge and skills for the future assignments.
Thus human capital management provides development tool.

Issues and problems
The major issues and concerns that have to be addressed by the Human Capital Management are:
Motivating people
Managing diverse workforce.
Managing inter-personal conflicts.
Team-building and team management.
Building competencies.
Retaining and maintain key personnel.
Encouraging innovative and creativity in the organization.

Leadership – the steering force
Leadership provides the guidance and help employees in putting their efforts into the right direction. Leadership help individuals achieve and coordinate their personal goals with the organisational goals and objectives.

Harold Koontz and Heinz have defined leadership as “the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals.”

There are different styles of leadership which can be practiced to achieve the best results. The style of leadership though depends on the leader but the level of follower understands and capabilities also play an important role in deciding the right mix of leadership strategies.

The qualities of a leader can be enumerated as follows:
Charisma
Courage
Dependability
Flexibility
Decision-making
Respect for others
Creativity
Intelligence and knowledge.
Vision
Conflict –resolution skills

There are various leadership styles which can be adopted as per the situation and objective to be achieved.

Broadly the leadership style can be put into three categories as per Iowa studies:
Autocratic leadership
Democratic leadership
Laissez-faire.

Autocratic leadership style believes in having the concentration of power in his hands only and providing no or very little freedom to workers.

On the other hand Democratic leadership style advocates the theory of delegating authority and taking decision in consultation with followers.

Laissez-faire style of leadership uses very less power and provides complete freedom.

The leadership styles can also be categorized as Production–oriented or People–oriented. However in addition, there has been lot of research and the theories have evolved which are classified into Trait Theory, Behavioral theories and Situational & Contingency.




  Change management
In today’s dynamic world change is an unavoidable phenomenon. The competitive forces and other environmental factors put an ever increasing demand on organization’s to update and change with changing time. Thus managing change is one of the greatest challenges that mangers face today. Leading change and motivating employees to accept the change is the major responsibility of the managers across the globe. To make the change effective and organization wide there are few assumptions that need to be kept in mind.
Every organization is unique.
Leadership is the engine that drives the vehicle called organization.
Leading the change is a process in itself.
It requires both bottom –up and top-down approach.
Timeliness is very important with regard to change.

There are few steps that need to be followed before implementing change:
Ensure effective participation of employees.
Effective planning.
Consider employees interest.
Focus on group dynamics.
Provide motivation
Planning for training and development activities.
Anticipating reasons for resisting change and be prepared to tackle.
Constantly following the process of change.

The diagnosis process:
The diagnosis process is the first step towards change management as it brings to light the prevailing concerns and issues to be resolved. Thus needs careful planning and designing.
In order to identify and diagnose the main issues and concerns at AGC, the process to be followed will include:
Questionnaires from employees
Interviews and discussions
Reading companies literature and past reports.

In case of AGC the issues and challenges with regard to change and modifications are mainly concerned with Human Capital management. The problems lie in the area of:
Motivation
Cross-cultural communication and understanding.
Retention
Workforce diversity
Performance related issues.
Interventions
the term intervention refers to a set of sequenced planned actions or events which are intended to bring effectiveness and improve organizational processes.
Thus the intervention needs to be implemented will target the individuals and the team separately.
The interventions concerning individuals will include:
Coaching and mentoring
Sensitivity training
Work design
Behavior modeling
The interventions with regard to teams and groups will include:
Team MBO
Self managed teams
Team-building
Role negotiations
Visioning
Quality of Work life (QWL)
Total Quality Management (TQM)
Mentoring


Furthermore to make the whole change plan effective and successful regular follow-up and updating the plan will be necessary.  To implement the change organization –wide and improve its acceptance following steps could be taken:
Establishing sense of urgency for change to happen
Creating vision for a better future
Communicating and motivating the key members of the work groups.
Rewarding those who accept change, even though the short term.
Reinforcing the change by highlighting its impact on success of the organization.

Conclusion:
AGC has been the leader in the industry and to maintain that position they need to bring certain changes to bring motivation in their employees. All the concerns and problems of the employees need to be addressed and resolved as to give them feeling of belongingness. The reasons for employees leaving the organization have to be identified and dealt in order to minimize the turnover in the future.