Managing Human Capital and Leadership

This report explores the concept of human capital and leadership in the context of managing a successful organization. It discusses HRM models, HR functions, and the characteristics of effective leaders. The report focuses on Morrison, a UK supermarket, and how it applies HRM models and functions to build an effective working environment.

Managing Human
Capital and Leadership

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................3
TASK 3............................................................................................................................................6
TASK 4 ...........................................................................................................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
In present scenario of world, the concept of human capital plays a crucial role within an
organisation as they are considered as the key element in improving possession of business, since
it is a sustainable competitive advantage and enhance employees efficiency. Moreover, human
capital is defined as a sum total of person's or individual knowledge and skills which company
uses in order to achieve organisational goal in an efficacious and efficient manner. However, it is
an investment in human resource function as it allows firm to increase their productivity by
providing proper training and development tool to employees and encourages them to put their
full contribution towards business objectives (Akintoye, 2012). Apart from this, leadership role
has great impact over each and every manpower of a firm because they are concerned as those
individuals who has an ability or capability to influence or inspire followers to achieve business
purpose within prescribed time limit. This report is based on Morrison, which is one of the UK
famous supermarket and it is established in the year of 1899. In this study, it includes HRM
models, HR functions, identify human resource software program for company and
characteristics of leader with the usage of relevant models.
TASK 1
HRM Models
Human Resource Management is a process of managing, procuring, developing
competent workforce in a structured and thorough way in order to obtain maximisation of profit
with an optimum utilisation of resources. Along with this, it help in transforming the factors of
production i.e. capital, money, man into useful products or service that add value to customer as
well as improves the company's brand image. Moreover, HR aid an organisation to achieve
results quickly, efficaciously and effectiveness (Blanco and Grier, 2012). Furthermore, it
contains several functions or role within an business premises such as personnel administration,
recruitment or selection, employee relation, talent management, performance reward, training
and development etc. which collectively contributes for accomplishing firm pre determined goal.
In regard of Morrison, a leading retailer as it deals in various segments like clothing, food and
drink, books, magazines etc. and serves across the UK over almost 500 stores and an online
home delivery service. Although, it is a very reputed and branded company among UK retail

industry yet it faces an issue related to human resource, as it has been noted that employees of
Morrison's claimed a complainant regarding equal pay case against supermarket industry, which
affected its productivity and proficiency (Morrisons faces fresh equal pay claim, 2019).
However, there are several models in HRM which assist an organisation to build a healthy
relationship with personnel and also to provide an equal platforms to employees for their growth
and development in an impressive or productive way. Along with this, it enable the firm to
identify internal or external factors in order to implement corrective course of action (Boon and
et. al., 2018). All models of HRM contains their own purpose and roles which differ them from
each other, and they render suitable guidance to superior or leader to resolve all conflicts within
business premises. However, Morrison applies HRM models to build a effective working
environment which are as follows:
The Fombrun model: It emphasise on four functions such as selection, appraisal,
development and reward and they all are interrelated with each other. The work and contribution
of properly selected human resource has to be evaluated under this technique. Along with this,
some kinds of rewards have to offered on the basis of results of appraisal and employees
performance. According to this model, this process is totally depend upon HRD procedures and
programmes of an organisation. Moreover, it is believed that HRM is a cyclical process in which
every function is interdependent hence value of each business function is very identical for
acceding business objectives. In addition, it Fombrun model tries to encapsulate all key elements
of human resource and enable the establishment to utilise in a more comprehensive manner.
The Harvard Model: It is regarded as more comprehensive approach from others as it
seeks to comprise six critical components of HRM i.e. stakeholders interest, situational factors,
HRM policies and outcomes as well as long term consequences. In context to Morrison, this
model enable its superior to examine subordinates interest or demand ( shareholders,
management, employee groups, government, community) and provide them suitable working
culture in order to gain high level of satisfaction that enhance the overall performance of
company (Budhwar and Debrah, eds., 2013). Furthermore, under this model it assist Morrison to
recognise the trade off between interest of employer and employee and create a balance among
them by fulfilling their requirements. It provide four HR outcomes (4C'S) within an organisation
such as congruence, cost effectiveness, competence and commitment. Apart from this, it is
composed of mutual respect, earnestness, responsibility and it relies on teamwork approach

which help Morrison to enhance personnel capability and also enhance the quality or behaviour
off human resource which lead for high commitment. Furthermore, they are more centring over
HR policies like providing fair reward or incentive program based on subordinates potentiality
which aid Morrison to overcome over their current issues and enable them to build good
relationship among employees. Along with this, Harvard model signifies that it's a responsibility
of leader or manager to examine each manpower talent and based on that provide proper training
in order to develop their hidden talents that enlarge company's productivity. Apart from this, it
states that gathering feedback from personnel help company to enhance their overall
performance as well as allow them to add value to customer and explore brand image among
competitive marketplace (Buller and McEvoy, 2012). In addition, it ensure that company should
be flexible in nature in adapting latest technology in order to meet the current and emerging
trends of customers and takes best strategic decision to provide high level of satisfaction and to
gain competitive advantage.
From the above mentioned models, Harvard HRM models is more effective for Morrison
as it focus on all aspects of HR that starts from recruitment till achievement of organisational
goal by allowing company to generate best working atmosphere. Moreover, it assist Morrison to
tackle with their reward system issue and guide them to treat everyone equally, recognise each
personnel effort so that their will be less chance of conflicts, labour turnover, retention etc. and
rather enlarge Morrison proficiency or volume of sales.
TASK 2
HR Function
Organisation develops strategic business goals at the same time they set strategic human
capital objective that aligns enterprise vision and create an best working culture which supports
employee performance and development. Moreover, employee management is not just the
responsibility of human resources but rather retaining, developing and making best use of human
capital depends on work practices, supportive leadership and productive working environment
builds cooperation's or good relation among employees that enhance firm's reputation. Apart
from this, HR function has a vital role to play within an organisation as it's primary objective is
to ensure the availability of right people for correct job profile so as the business goals are
achieved effectively (Campbell, Coff and Kryscynski, 2012). Furthermore, human resource
management is a process of bringing people and firm together so that the vision of each are met

as well as it tries to secure the best from people by winning their whole hearted cooperation. It
deals with issues related to workforce such as compensation, hiring, performance management,
organisation development, communication administration and training. Apart from this, HR
professionals of Morrison create system for managing or handling employees that support an
organisation's overall strategy. The function of human resource is classified into managerial and
operational as it involves manpower planning, recruitment or selection process, compensation
and befits, performance appraisal, industrial relation provision of employee services etc. In
regard of Morrison, it's effective HR function are as follows:
Recruitment and Selection: This concept is regarded as key element in an organisation,
because it decreases the costs of mistakes such as engaging incompetent, unmotivated and under
qualified subordinates. Moreover, recruitment is the process of identifying and hiring best
qualified candidates( from within or outside of firm) for job vacancy, in a most timely and cost
effective manner. The process begins when application are brought in and ends when the same is
finished. The result is pool of applicants, from where an appropriate manpower can be selected.
Moreover, the ultimate goal is to attract qualified applicants and to encourage the unqualified
personnel to pot themselves out (Cascio, 2015). However, there are two sources of recruitment
i.e. internal and external as it involves transfer, promotion, upgrading, promotion, demotion,
placement agencies, job portals, employment exchange etc. In addition, selection involves the
series of steps by which the candidates are screened for choosing most suitable or appropriate
manpower for vacant post. However, there are four stages in the employee recruitment process
which Morrison implies in their business operation and function are given as below:
Job analysis: It is concerned with defining various aspects of job through job description and
specification. However, with the help of job description Morrison's HR department can easily
identifies the tasks required for specific job while the latter defines the requirements an
individual needs to fulfil particular task.
Sourcing:It encompasses the different techniques which Morrison employs to attract potential
candidates to fill a given position as it is accomplished through internal and external
advertisement.
Screening and selection:Under this stage, Morrison evaluate or measure candidates abilities and
according to that they take further step. Along with this, this analysing is performed to determine

skills, qualification, competency and job related experience that potential candidates bring to HR
at the time of interview.
Choosing right candidates: Once the best candidate or personnel get selected, the Morrison's
HR next process is to onboard employee. It is nothing but helping the new recruits to become
productive members of company and provide their full contribution towards the attainment of
increased level of productivity and profitability ratio.
HRD :Development of human resources is an essentially for any organisation that would
like to be dynamic, static and growth oriented. In addition, human resource development is a
process of developing skills, competencies, knowledge and attitude of people in an organisation.
However, it is regarded as integral part of HRM as it mainly concerned with training and
development, career planning and development as well as enhancement of enterprise
(Chelladurai and Kerwin, 2018). Apart from this, HRD has a crucial role as it's core function is
to development of manpower in order to obtain maximisation of profit as it promotes team spirit
among employees. Furthermore, it tries to develop competencies at organisational level as well
as stresses on providing healthy climate for development of company's performance. HRD
enable the firm to provide enormous platforms to personnel and also takes initiative to provide
proper training in order to increase Morrison volume of sales and profit margin.
Motivation:It is directly links to individual performance that helps an organisation to
accomplish their pre determined goal in an effective and efficient way. In a complex and
dynamic environment, leader of a company create an environment in which each employee feel
trusted and are empowered to take decision which leads them to enhance motivation level of
workforce. Moreover, motivation in the workplace is defined as the willingness to exert high
level of effort by an individuals towards organisational goal or vision within prescribed time
limit. In addition, motivated workforce improves company's productivity and its competitive
advantage because they are regarded as highly engaged employees which encourage them to put
innovative ideas, opinions, views etc. within business operation and function. When goals are
achieved, it drives a feeling of being satisfied and enjoyment for employees as well as generate
positive working attitude in the workplace (Delery and Roumpi, 2017). Additionally, the
concept of motivation is classified into two types i.e. intrinsic(internal) and extrinsic(external).
However, intrinsic motivation comes from one self desires to seek out new things and to
challenge oneself. Moreover, it is the eagerness to learn, gain knowledge and to explore self

values and capabilities. On the other hand, extrinsic states performance of activities to attain
desired outcome and most of the time it arises from external factor rather than internal. In regard
of Morrison, it contains wide number of employees and each of them has different values and
approaches that has direct impact on business proficiency and efficiency. Therefore, Morrison
leader should be very sensitive in recognise the effort of an individual and provide them fair
reward so that they can contribute their best attempt towards the accomplishment of goal in a
proper way. With the help of this HR function, Morrison can overcome their issue of equal pay
and build a positive attitude among personnel that add value to target audience as well as
improve overall performance of company (Ebrahimi Mehrabani and Azmi Mohamad, 2015).
Performance: It is defined as structured formal interaction between subordinate and
superior, that usually takes the form of periodic interview (annual or semi-annual), in which the
work performance of employee is examined and discussed in order to take corrective course of
action. Moreover, personnel are regarded as an useful assets for company as they put their full
contribution and help organisation to explore their sales as well as profit margin. Therefore, this
business function allow Morrison to analyse its employees effort and based ion their
performance provide them incentive so that they will be less chance of disputes and its leaders
will be able to build a better relationship with their manpower.
The preceding explained HR function signifies that employees are lifeblood for Morrison
success and growth so it's a responsibility of firm that they should take initiative to determine
each individuals potentiality and provide them better working condition. In addition, they should
provide productive training in order to enhance employees hidden talent for attaining hifgh level
of satisfaction and proficiency.
TASK 3
HRM software program
It is a combination of system and processes that connect human resource management
and information technology with the help of HR software as it help to revolutionise workplace.
In order to sustain within today's competitive marketplace, technology plays a key role in
company as it provide quick response and saves time, cost and money and also enhance firm's
efficiency (Fagan and Ployhart, 2015). Hence, the function of human resource department
involves tracking employee histories, skills, abilities, salaries and accomplishment. HR software
simplifies and optimizes human capital in ever evolving style as it assist with managing people,

automating manual tasks and keeping information orderly so that there will no possibility of
arising conflict of interest and ambiguity among manpower. In addition, there are various types
of HR software that can perform a variety of human resource tasks in which some solution are
comprehensive, encompassing most of all the elements of HR management. However, the
various kinds of software which Morrison can imply in their HR business function and operation
are as follows:
Human Resource Information System: This tool allows an organisation to handle or
manage human resource functions electronically as it is regarded as the platform which collect
and stores information related to employees within an enterprise. Moreover, to passively gather
and keep data, HRIS software has evolved to assist with many HR activities like time and
attendance tracking, succession planning and recruiting which help Morrison to improve
efficiency as well as save labour hours that increase level of satisfaction (Luthans, Youssef and
Avolio, 2015).
Human Capital Management: IN every firm, they realize that their most valuable assets is
their workforce. However, this software offers an array of application designed to aid in the
acquisition, tracking and development of subordinates effectively automating and streamlining
processes. It also enable the organisation to track time and attendance that prevents overpayment
in payroll and assist in an accurate calculation of tax payment while minimising the risk of
labour disputes and compliance violation.
Applicant tracking system: It is designed to make recruiting easier for companies as it
process dozens or even hundreds of application in a small fraction of time that it would take for
recruiter to procedure application. Moreover, it uses algorithms to help hiring mangers in
selecting a candidate that will fit best in the position being filled based on information provided.
Along with this, it also allow hiring team coordinate with one another, streamlining recruiting or
selection process and enhance the experience for new everyone who involved.
Payroll software: This is concerned with compensating employees for time worked as it
enable HR to calculate pay check from hours logged in time and attendance tracking system and
directly deposit funds into employees accounts. Additionally, tax and deduction are also
calculated and withheld by payroll program. If payroll is being done manually, automating
system by investing in payroll software helps firm to save labour dollars, eliminate errors and
avoid compliance issues (Mugera, 2012).

Therefore, the above mentioned HR software, human capital management and payroll
software is suitable for Morrison. As they undergoes with an issue that its employees complaints
that firm is not recognise their effort properly and not rendering them fair reward. Thus, these
two software enable them to track manpower work and provide them equal incentive so that
they will be better working culture and high level of satisfaction among workforce.
TASK 4
Characteristic of effective leaders which are helpful in resolving the issues
An effective leader is a person who has the ability to guide and inspire the team members
toward the objective and goals of an organisation. Below are some of the qualities of leaders that
helps in handling the particular issues:
 Communicate effectively: The leader must have the ability to communicate the
information clearly and concisely in order to get the work done by other efficiently.
Communication plays a vital role among both the managers as well as employees as it
helps in reducing the misunderstanding and conflicts that usually arise at the work place.
The issue in Morrisons was regarding the payment to the employees. In order to
overcome such issue managers need to be very transparent toward their work. Therefore
it is suggested that in order to avoid the negativity in the concern effective communicate
plays a important role (Nieves and Quintana, 2018).
 Motivate and inspire: The leader must have the ability to motivate their employees and
helps in driving them toward the success of an organisation. It is the quality of leader of
Morrisons to know about the strength of their employees and then delegate the work
accordingly. Here in order to resolve the issue, employers must make their employees
valuable in order to encourage and motivate them. Valuing can be in the form of giving
certain rewards like certificate, monetary compensation and so on. This will inspire the
employees to work with full dedication in order to achieve the success.
 Empower others: It is considered as one of the important characteristics as leaders have
the ability to motivate the employees in a effective manner. The leader of Morrisons
should communicate the goals and objective of the organisation clearly and must also
encourage team members in achieving them. In order to motivate employees toward the
attainment of goal training should be provided to them on regular basis (Noe and et. al.,
2017). In order to overcome the issue of equal payment in Morrisons the leaders must

give their employees different challenges and should encourage them to show highest
degree of creativity. This would help the employees of Morrisons to work in any
challenging situation provided by the leader.
 Demonstrate integrity: Effective leaders are always the one who has the ability to guide
the decisions of their employees. They are the one who are most aware about whether the
decision taken is right or wrong. In such case a leaders must be genuine towards his
decision. In the above issue, leaders must have the ability to listen to everyone and their
problem and provide certain solution in order to overcome the issue. If integrity is
followed by the leaders, employees will be very loyal toward them.
Situational leadership model: This model of leadership was developed by Paul Hersey
and Ken Blanchard and is based on two continuum that is supervision and arousal. This helps in
guiding the workers toward a certain situation so that they can become effective performer.
 Supervision: It is the skills of employees which determines the level of supervision
whether it is over supervision or under supervision. In the continuum of over supervision,
the leader make certain decision according to its knowledge and skills and guides
everyone towards the competition of task. In under supervision, there is situation having
lack of coordination and miscommunication (Nyberg and et. al., 2014).
 Arousal: It totally depends on the skills and knowledge of employees. The support
provided can be either lo or high. The level of arousal always motivate the employees
toward the changes.
 Situational leadership depending upon the situations basically divides into four step
models which are depended on certain situations which are as follows:
 Directing: Here the leaders provide direction to the team members as other members of
the team do not has any idea regarding the same (Ployhart and et. al., 2014).
 Coaching: Here leader should provide emotional support to the team members due to
some failure faced earlier instead of providing them with proper support.
 Supporting: Team members are so supportive and because of this they require less
amount of direction.
 Delegating: Here the leader must provide direction and support as per the needs and
requirement of the individual.

CONCLUSION
From the above discussed report, it has been concluded that the concept of human capital
is important because it is perceived to increase productivity and profitability ratio. Along with
this, identifying an individuals potentiality or capability and based on that provide them proper
training in order to obtain maximisation of profit in an effective and efficient way. Moreover,
HRM models is considered as an integral component of company as it guide or direct employers
to maintain a better working relationship with employees and take heed of their demand that add
value to customer as well as improves organisation brand image. In addition, HR function are
those determinants who encourage various department to work collaboratively and provide
support to each other for achieving business objectives within prescribed time limit. Along with
this, HR software simplifies the work within human resource department as it help them to track
employees performance as well as enable them to give fair reward in order to create a healthy
working environment and explore overall performance of firm.

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Online
Morrisons faces fresh equal pay claim, 2019 .[Online]. Available through;
<https://www.personneltoday.com/hr/morrisons-equal-pay-claim-2019-shop-floor-staff/>