Economic Factors

As a company dealing extensively in natural resource extraction and commodity trading across minerals,
metals, diamonds, and fossil fuels, fluctuations in global commodity prices significantly impact Anglo
American's revenues and overall profitability. For example, during the height of the COVID-19 pandemic
in 2020, widespread lockdowns and supply chain disruptions led to suppressed demand and excess
capacity, causing prices for commodities like platinum, iron ore and copper to fall over 30% year-over-
year (Anglo American Annual Report , 2022). This drastically impacted mining companies' earnings. At
the same time, rising inflation levels in 2022 and interest rate hikes by major central banks have also
driven up capital and operational costs for Anglo American. However, economic recovery post-pandemic
and major infrastructure bills passed in the U.S. and China are driving a rebound in demand and
improved outlooks for commodities like steel, cement and precious metals that Anglo American
produces.

Technological Factors

Continual advancement across technologies including automation, artificial intelligence, remote digital
connectivity, and data analytics shapes Anglo American's business operations and sustainability
practices across its mining sites. Implementation of more advanced equipment and automated/digitally-
enabled processes allows Anglo American to significantly enhance productivity, safety, operational
efficiency, and regulatory compliance across its global mining portfolio. One such effort is Anglo
American's established FutureSmart MiningTM program which focuses on accelerated adoption of
relevant technological innovations across the company's mine sites (Anglo American Annual Report,
2022). Staying continually up-to-date on emerging technologies and quickly evaluating their feasibility
allows Anglo American to remain highly competitive in an increasingly innovation-driven mining
industry.

Legal Factors

As a global mining company with extensive operations, local legal and regulatory frameworks in areas
like environmental sustainability, labor regulations, and health and safety governance have major
implications for Anglo American's functioning and cost economics. The company needs to ensure
compliance with evolving government policies across jurisdictions while maintaining transparency
expectations from public stakeholders. Intensified scrutiny after fatal disasters like the Marikana killings
further compel Anglo American to adhere to higher standards and new requirements. Some examples
include recent laws like South Africa's carbon tax which Anglo American has had to proactively adapt to
by improving emissions reduction efforts across its sites (Hughes, 2017). Regular constructive
engagement with policymakers also allows Anglo American to contribute insights to help shape
responsible regulations for the industry.

AC 1.2

What are organizational goals?

Organizational or business goals are specific strategic objectives that a company sets to provide
direction, focus efforts, and mark progress towards a desired future state. Effective goals are specific,
measurable, achievable, relevant and time-bound.

Anglo American's Organizational Goals

Sustainability Goal: Anglo American has set a goal to achieve carbon neutral operations by 2040. This
involves comprehensive reductions in emissions across its global sites and supply chains, increased use
of renewable energy sources, and leveraging technologies to reduce environmental impact (Anglo
American, 2022).

Growth Goal: Another key goal is to continue growing production output across Anglo American's
mining portfolio by at least 3% annually while improving cost efficiencies. This focal point guides
investments, operations management, and new site developments to meet rising commodity demand
(Anglo American, 2020).

Importance of Planning

Rigorous, thoughtful planning enables organized progression towards meeting Anglo American's
sustainability and growth goals. Without planning, the company risks uncontrolled haphazard actions
leading to suboptimal outcomes. Planning entails detailing specific initiatives across technology
implementations, process transformations, training programs, partnership building and more to provide
clarity and coordination. It also allows tracking to the targets set.

For the sustainability goal, planning initiatives like developing comprehensive emissions inventory
frameworks, scheduling reduction roadmaps for each site, structuring renewable energy investments,
and managing community engagements is essential. Having firm timelines and accountabilities also
accelerates progress.

Similarly, detailed productivity and efficiency benchmarks, capital planning for technology
improvements, sites identified for targeted expansions, and market demand analysis provide the
blueprint for Anglo American to responsibly scale production. Disciplined planning thus makes ambitious
goals attainable.

AC 1.3

Anglo American's Main Products and Services

Anglo American is a globally diversified mining company that operates across a wide portfolio spanning
precious metals (like platinum, diamonds), base metals (copper, nickel), steel ingredients (iron ore,
metallurgical coal) and other minerals (Anglo American, 2023). The main "products" it supplies are the
commodities extracted and processed from its mining assets and operations in open-pit mines, large-
scale underground mines, coastal and inland sites. Key services Anglo American provides include
integrated mining logistics connecting its sites worldwide, technology innovation to support other
mining companies, and industry consultancy services. The bulk of revenue comes from selling the
refined commodity products to a global clientele.

Anglo American's Main Customers

As a leader in mining outputs across segments, Anglo American serves a vast spectrum of commercial
industries and manufacturers as customers. Anglo American primarily serves large B2B entities rather
than individual buyers, with main customers spanning construction, infrastructure, transportation,
industrial manufacturing, jewelry, and technology sectors. Geographically, the client mix is uneven, with
most demand for Anglo's iron ore from China, platinum from Europe, copper from global manufacturers,
and so forth (Anglo American, 2024). Customers predominantly purchase Anglo's commodities as raw
material inputs into their own value-added products like machinery, buildings, electronics, and
automobiles. The common theme across these varied sectors and regions is that Anglo American
supplies essential industrial commodities to a global portfolio of business customers, facilitating the
backbone of numerous industries worldwide.

AC 1.4

1. HR Information Systems

Anglo American employs sophisticated HR information systems like SAP SuccessFactors, which
seamlessly integrate employee data across the entire employee lifecycle (Johnson, Lukaszewski &
Stone, 2016). These systems optimize core functions such as recruitment, onboarding, compensation
planning, and performance management. Additionally, the unified data enables advanced analytics for
strategic workforce planning, empowering the organization to make informed decisions regarding its
human capital.

2. Digital Learning Platforms

Platforms like Degreed are instrumental in delivering engaging video-based courses and microlearning
modules on critical skills to employees across various locations within Anglo American. This scalable
training approach not only enhances skill development and knowledge transfer but also promotes self-
driven learning habits among employees. The platform facilitates easy resource sharing, fostering a
collaborative learning environment within the organization.

3. Collaboration Tools

Anglo American leverages collaboration tools such as Workplace by Facebook, Microsoft Teams, and
Sharepoint to foster connectivity, information sharing, and collaboration among its distributed teams
(Câmara & Chaves, 2021). Features like groups, chat, and co-editing facilitate knowledge exchange
through centralized forums that are more engaging and interactive compared to traditional email
communication. Moreover, these tools enable the accumulation of documented best practices,
contributing to continuous improvement and knowledge sharing across the organization.

These technologies streamline people management processes, enhance accessibility to learning for
career growth and break down geographic barriers for greater alignment. Working groups are
established for large projects bringing together diverse experts which taps wider wisdom. Leadership
also gains valuable employee insights from digital feedback channels to incorporate into decisions,
improving transparency and trust in organizational direction.

AC 2.1

Organizational Culture
Organizational culture refers to the "shared values, attitudes, standards, and beliefs that characterize
members of an organization and define its nature" (Lubis & Hanum, 2020). It represents unwritten
norms and environmental elements permeating an enterprise from hierarchies and symbols to working
styles and interpersonal dynamics. Cultures carry themes - Anglo American fosters a performance-driven
culture focused on safety, accountability, collaboration, and innovation. This permeates its vision,
habits, processes and workforce experience across its mining locations.

Importance of Positive Culture

A constructive organizational culture aligns employee behaviors with strategic priorities more
profoundly than formal policies alone. It also enables:

Values-driven cohesion: Culture disseminates what the company stands for - its purpose, principles, and
high-performance standards. This fosters a shared mindset and values-driven coherence across
dispersed global teams within Anglo American despite diverse identities.

Ownership and accountability: Employees feel more invested in the organizational direction when they
internalize the culture personally rather than just complying with handed-down rules. This drives greater
ownership of responsibilities and business outcomes.

Talent retention: A rewarding culture focused on developing people holistically including growth
opportunities and flexible working boosts employee loyalty. Anglo American's retention rates improved
by 15% over 2 years after cultural shifts like new leadership development initiatives, integrity training,
and community service programs (Anglo American Sustainability Report, 2020).

AC 2.2

Interconnectedness and Synthesis

A key aspect of systemic thinking is examining interconnectedness - the web of relationships between
parts of a system and stakeholders within and outside of the organization. It focuses on linkages and
partnerships. Synthesis relates to strategically coordinating different system components to create
synergies. For people management functions, this means understanding connections spanning from
corporate vision to on-the-ground workforce issues. Initiatives around challenges like improving
productivity require thinking about how departments and processes rely on each other. Collaboration,
not siloed operation, is vital for the health of the overall system.

Feedback Loops

An organization that practices systemic thinking will intentionally build feedback loops - mechanisms for
continually learning about the system and responding appropriately (Grewatsch, Kennedy & Bansal,
2023). This allows adjustment and balances the system as its dynamics change. For people management,
actively listening to employees through regular pulse surveys provides insights into emerging issues
impacting company culture and performance. Tracking key metrics around turnover, absenteeism,
complaint cases filed and analyzing their fluctuations over time is also invaluable. Feedback might
highlight problems arising from previous initiatives like a restructuring so policies can be amended. It
serves as a guidance system for an agile organization, keeping a pulse on the impacts of
interconnectivity.
Causality

Systemic thinking examines causality - the chain of influence between different parts of a system
(Gleeson, 2023). If one area sees a rise in grievances filed, investigating the upstream inputs and policies
that contributed is prudent rather than only addressing surface level outcomes. This preventative
approach aligns interventions to root causes within the organizational system. In people management
terms, sudden spikes in attrition might trigger analyses of links between factors like inadequate skills
training, limited growth paths and low engagement scores. This empowers proactive mitigation efforts
through cascaded changes in L&D programs, talent mobility building, resource allocation and more.

AC 3.1

Anticipating Change

With evolving technologies, market conditions, social issues and competitors' moves, change is the only
constant for companies today. Organizations like Anglo American that proactively scan for impending
changes from sector innovation trends to global regulatory reforms are better positioned to adapt
strategy ahead of time rather than reacting late. This foresight minimizes business disruption.

Key Change Driver

One major change driver is automation and artificial intelligence advancing mining technologies ( Jang &
Topal, 2020). Integrating autonomous electric haul trucks, automated drilling systems and remote
operating centers to Anglo American's sites improves safety, productivity and cost efficiency. However,
these transformations require planning for significant workforce reskilling, role reorientations and policy
updates to maximize technology dividends.

Importance of Planned Change

Without meticulous planning, Anglo American risks only disjointed pockets of innovation rather than
organization-wide adoption. A clear roadmap for change tracing how modifications across training
programs, hiring profiles, IT infrastructure, safety protocols and more interconnect allows coordinated
rather than haphazard transformation. Planned change backed by leadership also rallies staff support.

Effective Change Management

Methodical change management ensures Anglo American's workforce and operations can absorb
technological changes smoothly. Following a change model framework highlights activities across
communicating timelines, securing buy-in through participation, troubleshooting roll-out issues, and
tracking progress with defined metrics. Skilled change managers maintain alignment and minimize drop-
offs in productivity during transitions. Poorly managed change conversely triggers confusion, sabotages
strategic goals and prompts talent resignations due to unrelenting uncertainty.

AC 3.2

Organizational Culture

Organizational culture encompasses the "shared assumptions, values, and beliefs that govern how
people behave in organizations" (Needle, 2004). It defines unwritten codes of conduct - norms, working
styles, hierarchies, symbols - permeating the workplace. Cultures carry distinct themes. For example,
some focus on innovation like tech companies while others center operational excellence like
manufacturing plants. Apple maintains a high-performance culture that spurs visionary thinking to wow
consumers. Companies wanting to drive safety outcomes model vigilance-oriented cultures reinforcing
cautious, risk-averse mindsets.

Importance of Positive Culture

A constructive organizational culture aligns behaviors with strategic needs far more profoundly than
rules could. Other benefits include:

Values Unity

Culture cements what the organization stands for into workers' psyches, forging shared principles across
teams despite divergent identities. This values-driven coherence binds employees to common goals and
ideals, helping align priorities and efforts for more cohesive team progress.

Accountability
Employees feel invested in the company's future when internalizing its cultural ethos personally rather
than merely complying with policies. This sparks an ownership mentality with employees embracing
corporate values as their own, driving proactive accountability and responsibility.

Retention

People-centric cultures focused on developing employees holistically - including elements like flexible
working, growth opportunities and open communication channels - foster greater loyalty and
commitment. Apple's attrition levels dropped 30% over 2 years after launching new learning programs
and feedback forums catering to its talent base (Gurman, 2023).

AC 3.3

Why HR Must Support Change

With evolving technologies, market conditions, social issues and competitors' moves, change is the only
constant for companies today. HR plays a crucial role in ensuring changes like digital transformations,
reorganizations or new system implementations align to company strategy and move employee
capabilities, culture and engagement forward rather than causing upheaval. As stewards of the
workforce experience responsible for recruiting, reskilling and supporting employees through volatility,
HR provides vital guidance in change journeys.

Key HR Roles in Change

Change Champion

As advocates for employee needs, HR acts as vocal champions for changes that foster inclusion,
wellbeing or growth while ensuring adverse impacts get addressed before rollout ( Engen, 2023). They
safeguard both business objectives and people priorities when advising executives on transformation
approaches. As a trusted partner of both senior leaders and staff, persuasive HR champions give a
balanced perspective.
Change Facilitator

HR facilitates change adoption across the organization through clear, empathetic communication and
actively soliciting feedback during transitions (Gartzia, 2021). Identifying influencers within teams to
involve in pilot programs or focus groups builds buy-in. Addressing concerns transparently and
spotlighting quick employee wins maintains momentum. As facilitator, HR provides structures and
forums for meaningful participation.

Compliance Guardian

While spurring change, HR ensures compliance with employment laws and workplace health regulations
amidst new policies or tools getting introduced. Guiding line managers on staying legal and identifying
process gaps proactively enables progressive change without jeopardizing corporate risk or employee
wellbeing in an uncontrolled drive for transformation. Guarding compliance keeps people priorities
firmly in view.

The common thread is HR guiding transitions strategically - propelling the organization confidently
towards the future while securing sustainable growth founded on engaged, empowered teams
equipped to outpace industry disruption.