Managing Human Capital and Leadership

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