Human Resource Management at Capco

This report provides an analysis of Human Resource Management practices at Capco, a leading financial services company. It examines the company's flat matrix structure, its impact on employee motivation, and the democratic management style employed. The report also delves into two key HRM functions: performance management and reward management. The analysis concludes with recommendations for Capco to further enhance employee motivation and communication.

Understanding
Human Resource
Management

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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. Suitable structure of Capco company.....................................................................................3
2. Factors which influence employee motivation........................................................................3
3. The management style of Capco which influence management activities..............................4
4. Two HRM functions of Capco.................................................................................................5
CONCLUSION AND RECOMMENDATION...............................................................................5
REFERENCES ..............................................................................................................................6
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INTRODUCTION
Human resource management is a process of hiring and developing employees so that
they become more valuable for its organization. HRM includes recruitment, selection of
employee, provide training and develop skills, manage wages and salary, give benefits and so on.
The report is based on Capco case study which is leading company in financial service industry
with 21 offices around the world (Capco, 2016). This report includes suitable structure of above
mentioned organization along with justification. It discusses about factors which influence
employee motivation within Capco. Furthermore, the style of company which affects
management activities are discussed in the report.
1. Suitable structure of Capco Company
The suitable structure of Capco is flat matrix because this structure supports the
innovative culture. The factor which influences structure of company is its purpose, the
complexity of task, size and culture. For Capco, this structure is suited because the company has
specific projects which require different skills. Once the project has been completed the
employees move to another group for different project. The employees report and give
information to both functional manager and project manager. This flat structure has long chain of
command and narrow area of control (Hendry, 2012). The employees do different task with
diverse group of people so the matrix structure helps to interact with many people. The
advantages of this structure are that the resources can be used effectively and efficiently as they
have expert employees. This structure creates a highly motivated and empowered workforce
within organization (Budhwar and Debrah, 2013). In this structure, products and projects are
formally coordinated across functional department. Employees are in contact with many people
which helps to sharing information each other and decision are taken quickly (Delahaye, B.,
2015). This structure increase employee’s personal growth opportunities, performance and
rewards, gives challenging portfolio, provide learning of different task and experience.
2. Factors which influence employee motivation
The factors which influence employee motivation in Capco are as follows:
Span of control: The span of control in Capco is narrow. This narrow control is easier
for the manager to provide support and guidance to subordinates and to control employee’s
activities which influence workers motivation. This span of control helps to communicate in a

proper manner between managers and workers which gives better control. The narrow control of
Capco provides effective leadership in its workplace because the employees are divided into
small groups which are monitored by the individuals. The supervisor can control employee’s
activities and motivate them through rewards which reduce the chances of employee inefficiency
(Buller and McEvoy, 2012).
Hierarchy: Hierarchy of organization impact the employee motivation. The hierarchy of
Capco Company has flat structure. There are many layers of management where employee
report. The mentioned company follows flat hierarchy because in this open communication
exists in its workplace which motivates employees and empowered. It gives opportunities and
career growth to employees which influence the workers (Delahaye, 2015). The open and clear
communication and collaboration helps to achieve business goals and objectives. It increases
relationship between employees and managers which influence manpower motivation and
enhance employee performance. This structure helps the human resource to become creative and
provide innovative ideas as the organization requires different specialized people to carry out the
task.
3. The management style of Capco which influence management activities
The Capco Company follows democratic style in its workplace which motivates
employees. According to case study, in the mentioned company the employees are free to ask
question and interact with their supervisor. In Capco workplace, the workers are cooperative and
also there is openness in its work environment. The democratic style is followed in this company
because the organization believes in open line communication. This communication manager and
employers helps in improving employee performance which influence management activities
(Human resource management, 2016). In the democratic style, the managers provide
development opportunities to its employee that increases motivation of employees and morale of
the workforce. This management style gives rewards and recognition to the employees which
influence management activities (Hendry, 2012). Once they achieve rewards, they give efforts in
the task to attain business goals. Furthermore, this style influence management activities such as
participation in decision making, utilization of capabilities and increase production.

4. Two HRM functions of Capco
Performance management: It is processes where the manager and employees work
together to plan control and take feedback from the employees on work goals. In Capco
Company the performance management is used for setting objectives of employees, assessing
progress and controlling their work to ensure that employees meet their goals. Through
performance management, the mentioned company identifies the lacking areas which are to be
developed (Jiang et. al., 2012). The performance management activities impact positively on
employee performance because it provides opportunities for employee’s career growth. Further,
through performance management, the employees are recognized and are rewarded for their hard
work within Capco.
Reward management: It is related to formulation and implementation of strategies and
policies of reward system. The aim of this management is to provide rewards to employee fairly
and consistently in accordance with the employee performance (Kehoe and Wright, 2013). In
Capo Company they implement the reward management strategies to recruit and retain
employees and to motivate workers. The company gives rewards to employees according to the
manpower performance which motivates employee and improve business performance.
CONCLUSION AND RECOMMENDATIONS
From the above report, it is concluded that the Capco Company is following matrix
structure which is suitable according their organization. In the company, long chain of command
and narrow span of control influences the employee performance. Democratic leadership style is
followed in the Capco which increases employee motivation. Through performance
management, company ensures that the employees meet their goals. The reward management is
implemented in the company to motivate employees.
 The Capco organization should adopt both financial and non financial rewards
system to increase employee motivation.
 The company should be clear about the role and responsibilities of employees
which improves the communication chain in Capco Company.

REFERENCES
Books and Journals
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Budhwar, P. S. and Debrah, Y. A. eds., 2013. Human resource management in developing
countries. Routledge.
Buller, P.F. and McEvoy, G.M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Delahaye, B., 2015. Human resource development. Tilde Publishing.
Hendry, C., 2012. Human resource management. Routledge.
Jiang, K. and et. al., 2012. Clarifying the construct of human resource systems: Relating human
resource management to employee performance. Human Resource Management
Review. 22(2). pp.73-85.
Kehoe, R. R. and Wright, P. M., 2013. The impact of high-performance human resource
practices on employees’ attitudes and behaviors. Journal of management. 39(2). pp.366-
391.
Online
Capco. 2016. About us. [Online]. Available through: <http://www.capco.com/>. [Accessed on
11th August, 2016].
Human resource management. 2016. [Online]. Available through:
<http://www.whatishumanresource.com/human-resource-management>. [Accessed on 11th
August, 2016].