Managing Human Capital And Leadership-Level 5-London School of Commerce Malta
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Managing Human Capital And Leadership-Level 5-London School of Commerce Malta

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  • Level: Diploma
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Introduction

Human Resource Management (HRM) is the term used to determine formal systems devised for the management of people within an organization. Human capital management is the comprehensive set of practices for recruiting, managing, developing, and optimizing the human resources of the company. HRM is the backbone of the organization, and it plays a very important role in any company. Every organization should provide some important task to human resource management. The present report is based on Nandos Company, which is an international casual dining restaurant chain in South Africa. In this present report, models of human resource management and recruitment process are covered. Along with this, the selection process of HRM and approaches to human resource development (HRD) are discussed. Moreover, in this report, classical theories of motivation and characteristics of effective leaders are discussed.

Task 1: Model of Human Resource Management Used in Nandos

Models of HRM provide an analytical framework for studying human resource management and development. They provide the characterization of HRM that establishes variables and relationships to be researched. Through it, they can understand the world to determine the nature and significance of key HR practices. Different types of models can be used in Nando's organization. This company provides effective restaurant services in South Africa. Along with this, it is the largest chain organization, and it wants to expand its business in more areas. However, they want to change their human resource policies and management so they can improve the company's environment and employees (Chatterji and Patro, 2014). Four models have been identified in HRM, and all these serve many purposes. These models are given below:

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The Fombrun, Tichy, and Devanna models: This is one of the important and effective models that can be used by the organization. Being the first model, this emphasizes just four functions and their interrelatedness. The four functions of this model are selection, appraisal, development, and reward. This model is only focused on the four functions of human resource management; however, it can impact the HR functions. This model of human resource management plays an important role in the organization, but with this model, they are not able to focus on other functions of the human resource functions. Through this model, Nandos Company can use these four functions in the business. Other than that, they can use this model with another effective model; however, they can be able to focus on the entire functions of human resource management. This model makes an appropriate process of selection, appraisal, development, and rewards. There are different types of employees and departments in the organization. When the human resource team hires people as employees of the organization, then they should provide them with effective development according to the model. However, they can increase their information, knowledge, abilities, and skills. This model is based on the development of the employees, business, and company. So, they can provide their productivity to the organization. Through this model, human resource management can select the best people in the organization and other than that, they can do a better appraisal of the employees. Moreover, development and reward are also effective functions of human resource management. Nandos Company should use this model in their organization so they can be able to provide effective products and services to their customers. Through the restaurant business, they can provide accurate and appropriate services to their customers (Morris and Bohlander, 2015).

The Harvard model: Another important model of human resource management is the Harvard model, which can be used by the Nandos organization. The Harvard model is based on the six critical components of human resource management. The dimensions included in the model are stakeholder, situational factors, interests, human resource management policy choices, human resource outcomes, and long-term consequences. Through this model, they can establish effective human resource management in the organization. HRM policies are very important in the company because,  through them, they can provide effective training to the employees. Human resource flow, reward system, and work systems of the organization. In the human resource management outcome, they can include commitment, competence, congruence, and cost-effectiveness. Human resource management considers all points in the company and then makes some effective decisions. However, organizations should use this type of model in their company so they can manage a good human resource team and increase their brand value in the entire market. On the other hand, Nandos Company can expand its business in different types of locations so people can get the effective products and services of the restaurant business.

The Guest model: This model was developed and described by David Guest in 1997 and claims to be much superior to the other models. In this model, they determined the outcome of the human resource management and employees of the organization. In the outcome, they included the behavioral, performance-related, and financial rewards of the company. However, through this model, they can evaluate the productivity and performance of the employees and human resource management. Other than that, the model emphasizes the logical sequence of six elements: HR strategy, HR practices, behavioral benefits, performance results, and financial consequences (Mann and Gaddy, 2016). Nandos restaurant organization uses this model in their business, so they can improve their human resource management. Through it, they will also be able to provide their effective performance to the company.

The Warwick model: The model is described and developed by Hendry and Pettigrew of the University of Warwick. This model also has five elements like another model, and those are outer context, inner context, business strategy content, human resource management context, and human resource management content. This is also an important ad-effective model that can be used by the company. If they want the human resource management of the company to improve their performance, then they should use this model in their organization. Through this model, the company can analyze the macro-environmental and micro-environmental aspects of the organization (Armstrong and Taylor, 2014). Through these analyses, the company can identify a number of strengths, weaknesses, opportunities, and threats to the business. Other than that, they can get information on the entire environment of the market; however, it will be easy to expand their business in more areas.

Task 2: Recruitment and Selection Process of Human Resource Management in Nando's

The recruitment and selection process is important for new and established enterprises. Human resource management has the support and expertise of employment specialists who assist hiring managers with procedures to ensure the company's leaders are making wise hiring decisions. Selection and recruitment processes are very important for human resource management and the company because, through them, they can get the best employees who can provide effective performance to the organization. Through human resource management, the company can get better employees. (Barbulescu and Mollick, 2015). Human resource management of organizations should follow the given process for recruitment and selection:

Sourcing candidates:- This is the first step in the recruitment and selection procedure. There are different types of ways to find people who need the job. On the other hand, there are several avenues and methods to find suitable candidates for job vacancies. The human resources team can find the candidates through online, consulting, or any other method. Sourcing candidates is the main process of the selection and recruitment process because, through it, they can interview the candidates and then accomplish the process of selection for the company. Along with this, sourcing candidates can be done via online advertising on job and career sites or professional networking and participation in trade associations.

Tracking applications:- The second step is tracking applications and reviewing the resumes in the selection and recruitment process. This is one of the important procedures of the human resource management of the organization. Through this method, candidates can know about the entire vacancies of the company; however, they can apply for the provided position of the company (Manuti and De Palma, 2016). Other than that, this technology aids in the management of job vacancies and applications for every open position in the organization. The applicant tracking system has the strong power to provide and manage the entire application of the person or candidate who wants to apply for the positive given by the organization. Through this system, human resources management can get an effective application from the applicant tracking system. Through it, they can review the application of the candidate. Moreover, human resource management can analyze all candidates through the applicant tracking systems.

Preliminary phone interview: This is the third step of the recruitment and selection process of the human resource management of the Nandos Organization. Through it, they can take the interview on the phone; however, they can get all the information about the candidates. It is essential for obtaining information about the applicant's background, work history, and experiences. Through these interviews, the human resources team can learn about the information about their previous experiences, background, and history of work. The company can also use this process in their human resources management; however, they can create an effective work environment in the company (Li and Pow, 2017).

Face-to-face interview and selection: One of the effective steps of the recruitment selection process is the face-to-face interview of the candidate. In this step, human resource management can ask questions to the candidates, and they should answer appropriately to the managers. Other than that, in this step of the recruitment and selection process, the hiring manager reviews the candidates and resumes the employment specialist forwarded to them. The hiring manager can invite the candidates for a face-to-face interview. Through it, they can communicate with candidates and get all the information about their background, experiences, and history. Along with this, the hiring manager should ensure that candidates are qualified or not for specific jobs. Further, they can provide them with all the information about the job profile; however, candidates can make decisions for the job. Moreover, if they find that candidates are not able to do that job or they are not qualified as the requirements of the company, then the hiring manager has the authority to reject that candidate for the job. It is the most important process of human resource management because, through it, they cannot select the non-effective employee for the organization.

Extending an employment offer: Once the human resource management decides which candidates are most suitable for the job vacancy, then the hiring manager should inform the candidates of the employment rules and regulations of the organization. Other than that, the hiring manager should get the appropriate medical test of the candidates and licensing information of them (Fulmer and Ployhart, 2014). This is an important process of human resource management in the selection process. Through it, candidates can decide for the job; however, they can accept or deny the offer that is given by the human resource management. When they accomplish the entire process of recruiting and selecting, then the hiring manager should provide the offer later of the job to the candidates via mail or physically.

Consideration: This is the last and final step of the recruitment and selection process of the human resource manager of the company. Through this step, the hiring manager can consider the candidates as their employees, and then they can be able to give all information about the company to the candidates. Other than that, through this process, human resource managers can know about the performance of the company in the market; however, it can be possible by the candidates who were coming for the job interviews. The hiring manager should consider the candidates as their employees, and they should tell them that they should follow the rules and regulations of the previous company. However, candidates can serve the notice period of the organization, then they can resign from the job. So, the hiring manager can ensure the candidates for the specific job (Comănescu and Sabie, 2016).

Recommendations for ways of improving the process:

  • The company should have an effective team of human resource management; however, they can follow the entire models and recruitment and selection process.
  • They should prepare the website so candidates can apply on the career site of the organization.
  • The resource department should be attractive on the company premises so candidates can not feel the strangeness in the company (Sun and Markóczy, 2015).
  • Hiring managers should have appropriate knowledge and information about human resource management. Other than that, communication skills and other effective abilities are also necessary for the hiring manager of the company.
  • The human resource management team should have accurate knowledge and information so they can make decisions about the candidates. Moreover, through it, they can learn about the candidates and then select them according to their qualifications, knowledge, abilities, or skills.
  • Nando's human resource department should be very attractive with effective infrastructure; however, people will want to work with the company (Meghir and Shaw, 2016).
  • The hiring manager should provide the entire rules and regulations, required documents of the candidates, and terms and conditions to the entire candidates. Along with this, to further accomplish the selection process, they should provide the appropriate training session and development program for the employees so they can know about the company and increase their information, skills, and abilities.

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Task 3: Approach to Human Resource Development

Human resource development is the framework for helping employees develop their personal and organizational skills, abilities, information, and knowledge. Human resource development is one of the significant opportunities that employees seek when they consider an employer. Employee development is very necessary for the organization; however, human resource management should provide training sessions and development programs to the entire employees of the organization. There are different types of approaches to human resource development, which are mentioned below:

Individual and organizational learning: It is one of the effective approaches to the development of employees. Through this approach, the hiring manager can arrange training sessions and development programs for the employees so they can increase the learning of the organization and individuals (Hollenbeck and Jamieson, 2015). It can support the employee in increasing the individual knowledge and information and organizational skills and abilities that are required by human resource development.

Learning should address the impact: When human resource management provides training sessions and development programs to the employees, then they should examine whether that employee can get all the information and knowledge or not. However, they can know about the overall impact of the training sessions and development program that are given by the human resource management for the employees. Training and learning sessions for human resource development should be attractive; however, employees can add knowledge and abilities from them. It can help them at their workplace (Werner, 2014).

The approach to learning includes multiple methods to meet multiple needs. Human resource management is providing effective training sessions and development programs for the employees, but they should use multiple methods to achieve the multiple needs of the company. On the other hand, they should accomplish several learning sessions for the employees so they can learn the ways to use the approaches at their workplace in the organization. Generation and cultural differences affect how people learn, and an approach to learning must take that into account.

Inside out and outside in learning approaches: This is the most important and valuable approach to the human resource development of the organization. They should use this approach in their organization; however, they can provide the appropriate knowledge about the familiar with formal education. Through it, employees can increase their information, knowledge, skills, and abilities through the presentation, models, and procedures of the training session and development program (Grenier and Collins, 2016). Some of the key considerations in incorporating the art and science of instructional design include:

Creating and resolving the problems: There are different types of departments and numbers of employees in the company, and the manager allotted them different types of tasks. When they start work for accomplishment, they can face some problems and issues; however, human resource management should resolve the problems and issues of the employees. Other than that, different types of tension can be faced by the employees in the organization, and they can get the appropriate solution from the human resource development team.

Dealing with learner emotions: There are two aspects to dealing with the emotions of adult learners. Through it, they can deal with the emotions of the adult employees in the company. These two aspects are that confidence in their ability to learn is critical to their successful use of the abilities on the job, and second, many adults are risk-averse and need a safe environment in which to practice new skills.

Collaborative learning:- In this approach, collaborative learning is very important because, through it, employees can be able to help each other at their workplace. Human resource management should include collaborative learning in their training and development program; however, employees can work together in a team. In any company, teamwork is greater than individual work, so they should arrange the training of collaborative learning. Nandos organization should provide a training and development program with effective learning and collaborative learning to their employees. It is useful learning for every employee in the company. Through it, they can understand the problems and issues of other employees, and they can also resolve their problems and issues with effective solutions at their workplace (Reynolds, 2017).

Ways of improvement:

  • The organization can arrange effective training and learning sessions for the employees so they can improve themselves for the company.
  • They should start effective activities for the employees; however, they can understand the situational context.
  • Managers can arrange the development program for the employees so they can increase their organizational development (Wit and Folke, 2015).
  • Human resource management should provide motivation classes for the employees so they will be able to increase their confidence in their work place.
  • They should provide the skills of communication, team leading, time management, and work handling; however, they can manage the team with good behavior and confidence.

Task 4: Classical Theories of Motivation

The motivation concepts were developed around the 1950s. The three most important theories were made during the period. These three classical theories are given below:

Maslow's hierarchy of need theory:- In this theory, five needs are described that can be used in human resource management. Five needs of this theory are mentioned below:

  1. Physiological need: This is the basic need of air, water, food, clothing, and shelter. Through it, people can survive easily, and it is one of the important needs of humans.
  2. Safety needs:- In these needs, include physical, environmental, and emotional safety and protection. Through this need, the company should provide safety to the employees, and that safety can be job security, financial security, and family security.
  3. Social needs: In these needs, human resource management should include the need for love, affection, care, and friendship (Werner, 2014).
  4. Esteem needs:- These needs are of two types: internal and external esteem needs. The internal esteem needs can include self-respect, confidence, and achievement. Moreover, external esteem needs can include recognition, power, status, and attention.
  5. Self-actualization needs: It is another important need of this theory. In this need, they can include growth, opportunities, self-contentment, and social services.

Herzberg's two-factor theory of motivation: This is another effective theory of motivation. In this theory, human resource management can include the hygiene factor and motivational factors. Along with this, hygiene factors are those job factors that are essential for the existence of motivation at work. In the hygiene factors, they should provide the salary on time to the employees (Classical Theory of Motivation, 2018). Moreover, they should provide them fringe benefits so employees can increase their motivation. According to this theory, human resource management should maintain the relationship between employment and employees. Other than that, they can provide job security to all employees. In the motivation factor, they can include the recognition, sense of achievement, responsibility, and meaning of the work.

Both theories are important in the human resource management of the Nandos organization. From the above theories, human resource management should get the effective point of the theories, however, which can be useful for the organization. Other than that, they should provide the safety needs to the employees. Moreover, esteem needs and self-actualization needs can also be useful in Nandos' human resource management (Rao, 2014). Hygiene factors are very important in human resources management in the Nandos organization because every employee needs salary and fringe benefits. However, the company should provide an effective salary and job security to the employees. Along with this, according to theory, they should include family security and insurance for the employees so they will not feel insecure about their jobs and company. Moreover, both theories are meaningful for the organization.

Task 5: Characteristics of Effective Leaders

There are different types of leaders in the organization, but Nandos Company should hire a leader who has effective skills and abilities. The skills and abilities have the power to manage the team and time. On the other hand, leaders should be clear about the needs and requirements. They can express their vision of the future in simple language. Leaders should have different types OF qualities which can be useful for the organization. Along with this, there are different types of tasks in the company; however, the leader should have the skill to accomplish the entire task professionally. They should have appropriate communication skills to interact with superiors and the team (Fulmer and Ployhart, 2014). It is one of the most important skills and abilities of the leaser because, through communication skills, they can be able to solve lots of problems and issues in the company. Other than that, through it, they can deal with their dealer or any third-party company, which can be very beneficial for the organization. Moreover, leaders should have the power of resolution and creative thinking, which is useful for problem-solving. Employees can face several problems in the company; however, the leader should solve them through these problem-solving skills. To resolve the problem, they can use the skills of problem-solving in the organization Characteristics of an Effective Leader, 2018(). Moreover, they should have the skill in team handling and time management; however, they can coordinate with the team and accomplish their task on time. However, leaders should know team handling so they can manage the team and motivate them in a very professional way. An effective leader is a risk-taker, self-controlled, caring individual, modest, balanced, resolute, motivational, communicator, visionary, and ethical. The most important skill is a sense of humor, which is more beneficial for the organization; however, the leader should have a sense of humor. A leader's skills and abilities are most important for the organization.

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Conclusion

In the present report, it has been recognized about the Human Resource Management and development of organizations. Other than that, in the present report, it is concluded about the recruitment and selection process of HRM and the approach of the human resource development of the company. Along with this, it is also concluded that Nando's organization should use the classical theories of motivation and their leaders should have the appropriate and effective skills as well as abilities in their company. Moreover, leaders are the main power of the organization, who can make effective decisions in the business.

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References

  • Armstrong M. and Taylor, S. 2014. Armstrong's handbook of human resource management practice. Kogan Page Publishers.
  • Barbulescu R. and Mollick, E. 2015. I used to work at Goldman Sachs! How firms benefit from organizational status in the market for human capital. Strategic Management Journal. 36(8). pp. 1164-1173.
  • Chatterji A. and Patro, A. 2014. Dynamic capabilities and managing human capital. The Academy of Management Perspectives. 28(4). pp. 395-408.
  • Comănescu M. and Sabie, O. M. 2016. The role of human capital in the knowledge-networked economy. Psychosociological Issues in Human Resource Management. 4(1). pp. 168-174.
  • Fulmer, I. S., and Ployhart, R. E. (2014). “Our Most Important Asset: A Multidisciplinary/Multilevel Review of Human Capital Valuation for Research and Practice. Journal of Management. 40(1). pp. 161-192.
  • Grenier, R. S., and Collins, J. C. 2016. “Man, Have I Got a Story for You?” Facilitated Autoethnography as a Potential Research Methodology in Human Resource Development. Human Resource Development Review. 15(3). pp. 359-376.
  • Hollenbeck, J. R., and Jamieson, B. B. 2015. Human capital, social capital, and social network analysis: Implications for strategic human resource management. The Academy of Management Perspectives. 29(3). pp. 370-385.
  • Li, S. C., and Pow, J. 2017. Developing and managing school human capital for information and communication technology integration: a case study of a school-based e-learning project in Hong Kong. International Journal of Leadership in Education, pp. 1-15.
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