Management of Human Capital - Desklib

This study material from Desklib discusses the diagnosis, intervention and evaluation of human capital management policies. It provides insights on the root cause of problems, implementation process and effects on employees and market performance. The study material also includes a table of contents, references and author note.

Running head: MANAGEMENT OF HUMAN CAPITAL
Management of human capital
Name of the student
Name of the university
Author Note:

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Table of Contents
Diagnosis:........................................................................................................................................3
Summary of AGC’s Problems.....................................................................................................3
Diagnosis Process........................................................................................................................3
Conclusions regarding root cause................................................................................................4
Intervention:.....................................................................................................................................4
Description of Human Capital Management Policies.................................................................4
Process of Implementation..........................................................................................................4
Evaluation:.......................................................................................................................................5
Measurement of the effectiveness of the Change Management Plan..........................................5
Effects on the Employees............................................................................................................5
Market Performance of the Organization....................................................................................5
References........................................................................................................................................6

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Diagnosis:
Summary of AGC’s Problems
After a thorough analysis of the different reports and talking with the management, a
number of different problems has come in the forefront. The very first problem relates to the
behavior and the treatment of the managers and the supervisors towards their employees. The
production managers and the operations managers of the business organization have a tendency
to treat their workers as just the production line persons rather than large assets of the
organization (Hohenstein, Feisel & Hartmann, 2014). The process of recruiting and rehiring is
quite fructuous and irrelevant as because it does not follow an ethical rule.
Financial problems have been the other key problem that has crippled the organizations
as because the management of the organization has failed to meet the financial targets of the
company since a long time from now. The failure to provide a balance sheet in this time has
further intensified the crisis. The management has also failed to take a look into the performance
issues of the employees. According to, Boon et al.( 2018) the absence of an effective
performance from the employees has led to the loss of competitive advantage in the market.
Lastly the absence of a proper leadership in the business can be negative to the operations of the
business and its performance in the market.
Diagnosis Process
The diagnosis process will involve the participation of all the concerned stakeholders.
The selection of a change management plan in this regards is utmost necessary. The change
management plan in the organization will help to create a sense of urgency and a vision for the
change. However, the management of the organization needs to ensure the proper and effective
communication of the change management plan to all the employees of the organization.
The Kotters 8 Step Change Plan will be selected for the change. The plan is the most
justified choice for the change as because it helps in the removal of the different obstacles,
creation of different types of short term wins and ensures the changes in the corporate culture.
All the employees’ needs to be dedicated to bring the change and the change must be led by a
strong leader who will be able to motivate them to be the forerunners for the process of change

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(Armstrong & Taylor, 2014). Apart from this the presence of a proper strategy to execute the
vision is needed to provide success to the business organization.
Conclusions regarding root cause
The major cause for the current problems has been the threats from the competitors and
the lack of proper leadership skills that can help the organization to attain success in the market.
Intervention:
Description of Human Capital Management Policies
The Human Capital Management Policies refers to the coalition of strategy in between
the human Resource and the process of leadership in the organization. This is because the
success of the organization totally depends upon the human capital.
Process of Implementation
Human Capital can be developed and implemented through a number of different policies
which includes;
1. Strategic Development-The main strategy development plan lies in the process when the
HR management policies and procedures generally work towards the same goals (Shields
et al. 2015). There are times when mostly, the Human Resource department performs as
the administrative organization that is based on the extension of the upper management as
the strategic partner. The formulation of a high performance employee management
supports the goals of the organization to attain profits and success in the market.
2. Compensation- The Compensation policies that currently exist in AGC must be revised
and compensation policies must be set according to the rates of the market. The HR must
collaborate with the upper management of the organization to fix the compensation
policies.
3. Compliance- The compliance with the federal and state laws is one of the most important
elements that must be carefully followed by the organization. The HR department of the
organization must ensure to abide by all the different rules and standards like the Fair
Labor standard act, Civil Rights Act and many more as such.

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4. Recruitment and Selection Process- The recruitment and the selection process of the
organization needs to be overhauled. The philosophy of the different kinds of recruitment
policies is considered to be an equal opportunity. On the other hand, the specific
recruitment policies generally includes other kinds of policies like HR communication
skills with the department leaders and the needs of the staff members and the different
kinds of job postings.
Evaluation:
Measurement of the effectiveness of the Change Management Plan
The change management plan must be executed properly and it can be measured by the
implementation of Key Performance Indicators (KPI’s).
Effects on the Employees
Though for a brief period the employees may oppose the change, the change in their
compensation structures and the better implementation of the process will have a positive impact
on the employees of the organization.
Market Performance of the Organization
The company will enjoy a competitive advantage in the market and will also be able to
increase their revenue once they employ the change management plan in the organization.

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References
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Boon, C., Eckardt, R., Lepak, D. P., & Boselie, P. (2018). Integrating strategic human capital and
strategic human resource management. The International Journal of Human Resource
Management, 29(1), 34-67.
Hohenstein, N. O., Feisel, E., & Hartmann, E. (2014). Human resource management issues in
supply chain management research: a systematic literature review from 1998 to
2014. International Journal of Physical Distribution & Logistics Management, 44(6),
434-463.
Hollenbeck, J. R., & Jamieson, B. B. (2015). Human capital, social capital, and social network
analysis: Implications for strategic human resource management. Academy of
management perspectives, 29(3), 370-385.
Ramaswami, A., Carter, N. M., & Dreher, G. F. (2016). Expatriation and career success: A
human capital perspective. Human Relations, 69(10), 1959-1987.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., ... &
Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.