Human Capital Management in Global Entrepreneurship: A Case Study

This case study delves into the human capital management challenges faced by organizations operating in global contexts, particularly in the realm of entrepreneurship. It highlights the critical role of communication and the impact of cultural differences on organizational cohesion and performance. Different leadership styles, such as autocratic, participative, and delegative, are analyzed for their effects on employee engagement and cross-cultural understanding. The study suggests that effective human capital management strategies should prioritize clarity in goals, direction, and accountability, alongside leadership development programs that emphasize cultural sensitivity and the celebration of diversity. Shawn is advised to promote leadership development programs that would reduce cultural barriers and celebrate individual talents. The case emphasizes the need to leverage diversity to empower the organization and foster innovation. Desklib offers similar case studies and resources for students.

Running Head: CASE STUDY
Case Study
Name of the Student
Name of the University
Author Note

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Topic- Managing Human Capital Entrepreneurship
As shown in the case of AGC, there are so many human capital management problems
that arise from the unawareness or not acknowledging the cultural differences at the global
subsidiaries that an organization faces. First of all, the biggest problem is in the field of
communication. According to Binder (2016), it is the most essential key for a successful business
venture. When the members of a particular organization cannot communicate among themselves,
it becomes next to impossible to discuss operational topics. Although it is true that, organizations
have increasingly opted to include other countries for the talent pool and expansion of business.
It is of course healthy for the business but along with it comes so many cultural differences.
These differences are in the fields of religion, opinions, language, perspectives and many others.
When an organization is unaware of these differences or even after being aware of it, does not
acknowledge it and act to reduce it, clashes start occurring within the members and the
management faces hurdles to unite them and make them work together as suggested by French,
(2015).
Solomon et al. (2014), claim that leadership styles have remarkable effects on the small
businesses but also on the largest corporations of the world. The leaders create a kind of
corporate culture that leaves impact on the organization and the performance. First of all, the
autocratic style or the authoritarian leadership defines the division between the workers and the
leaders. These leaders make their own decisions without any involvement of the employees. This
kind of leadership style is alright when it comes to making fast decisions. However, the
employees especially those who are in the global subsidiaries feel the most disconnected with
this leadership style. When the leaders stay in regular contact with the employees and take their
concern in most of the decisions, the cultural barriers can be reduced to some extents. Opposite

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of the autocratic style the participative style takes feedbacks, suggestions and ideas from the
employees and thereby have a more content workforce. The delegative leadership style called as
the laissez-faire style have the leaders make the least decisions for the company and leave
everything on trusted team members. This style creates disadvantages because without guidance
from the leader the team gets demotivated and kind of confused especially people who face cross
–cultural differences.
In order to change the global organizational culture of AGC, Shawn must recommend a
strong and effective human capital management strategy with clarity in human capital goals,
clarity in direction, an accountability system, a foolproof implementation plan and policies to
accomplish the goal and objectives. Since he believes that the leadership style can affect the
organizational culture, he must recommend to organize leadership development programs. These
programs will be designed to focus on the importance and necessity to reduce cultural difference
barriers, celebrate diversity as well as their individual talents. As per the views of Thomas &
Peterson (2017), the better aspects of diversity have to be taken into account and used for
empowering the organization and support innovation.

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Reference
Binder, J. (2016). Global project management: communication, collaboration and management
across borders. Routledge.
French, R. (2015). Cross-cultural management in work organisations. Kogan Page Publishers.
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer
behavior: Buying, having, and being (Vol. 10). London: Pearson.
Thomas, D. C., & Peterson, M. F. (2017). Cross-cultural management: Essential concepts. Sage
Publications.