Managing Human Capital

Activity 1

I do not think AgFund is engaging in discriminatory behavior in this case study. The
company is not willingly hiring whites or not offering opportunities to women or minorities
because of a discriminatory culture at the firm or in the minds of senior leadership. Rather, they
are responding to the demographic-induced discrimination in the markets where they must operate.
They know offering their services to communities that actively discriminate requires them to make
certain decisions that may seem like discrimination but are more so reactionary in nature.
There are a few key stakeholders in this situation, the first one being Cynthia’s boss, Peter
Jones. Peter oversees the success in the districts his team operates in. Thus, hiring decisions made
by Cynthia directly impact Peter. Second, the executives at the company that oversee Peter’s work
are also a stakeholder as they have a responsibility to the success of the company. Finally, if the
company has any actual shareholders (private or public) they would be a key stakeholder in the
outcome of this situation if it impacts the success of the firm.
Peter is making assumptions relating to the customer’s willingness to work with minorities
(or women) as their business partners. The areas that peter is referencing is primarily less affluent,
less urban, primarily white, and arguably less education communities. His assumptions are based
on both the demographics of the communities as well as prior experience sending minorities to
these communities (Betty Inez and Hugh Conley).
Personally, I do not think Cynthia should hire Steve. First, we know Steve has a pristine
record with the company, a great resume and is poised to be successful in a number of financial
services firms like AgFund. If hiring Steve would result in him hitting a glass ceiling or worse,
failing at his career, then hiring him is not the preferred option for Cynthia. It is also clear that
hiring decisions at this firm are based on both candidate credentials as well as the markets the
future hire will work in. if market demographics are known to result in issues with minorities I
don’t think Steve should be hired into a seemingly zero-sum situation. Customer preferences
should only play roles in hiring decisions when the firm’s business is very customer facing. In this
case, since staff interacts with customers to such an extent that it makes sense to take into account
their preferences.
Cultural shifts in a company are often times driven by the tone at the top. Senior leadership
needs to address the demographics in the markets they operate in and either relay publicly the
situation relating to minorities and women, or actively create better opportunities for individuals
like Steve in the company. If the firm cannot change how promote or hire within, nor the customer
behaviors in their markets then they need to exit from these markets and potentially enter new
markets.