Managing Human Capital and Leadership

This report discusses the importance of managing human capital and leadership in developing a committed workforce. It explores HR practices, recruitment and selection procedures, and motivation theories. The report also provides insights into Tesco's approach and recommendations for building a strong workforce.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
ABSTRACT....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................7
TASK 4............................................................................................................................................9
Classical Motivational Theories..................................................................................................9
TASK 5..........................................................................................................................................11
Characteristics of Effective Leader...........................................................................................11
CONCLUSION..............................................................................................................................13
REFRENCES.................................................................................................................................14

ABSTRACT
The report has discussed how human capital and leadership works as an important
business segment at Tesco where there are large number of employees working within all
departments and the innovation at all roles are highly valued effectively. Report had brought
analysis on various motivation theories which effective leaders can follow for bringing long term
proposition under functional position and how there can be high effective functioning delivery
among all roles.
INTRODUCTION
Managing human capital and leaderships is considered to be one of the most important
business concepts in developing long term committed workforce and in building high skilled
employees working within various teams in company. The function of managing human capital
and leadership comes under HR practices and board of directors of company to enables the
formation on strong innovative channels of leadership and relative synergy by which higher
production goals can be achieved. Tesco is one of the biggest retail company in UK industry
operating wide business functions and working with large number of workforce where
employees are considered to be the biggest asset onto which larger goals are functionally formed.
The report explains HR approaches which Tesco is working towards management of human
capital along with recruitment and selection procedures and further recommendations which can
aid in bringing more functional operations. The report has also discussed theories of motivation
and explanation on most practical theory which will develop value in company business
functioning and further description of effective leaders with various models to find best
justification which will enable in forming long term business value and high growth segments.
Human capital is one of the most important asset of company which enables to develop high
ethical leadership and varied business avenues to develop efficient functioning models (Kong,
Lucchesi and Cortini, 2019).
TASK 1
Tesco has been using various models and approaches to develop strong workforce where
all employees are given high opportunities to showcase their talents and new ides forward where
there is strong diversity encouraged among all departments. Management of human resources is

one of the biggest important functions of HR department as it is the foremost asset which is vital
to develop long term synergy of high efficiency for long term vital positioning. The various
models which enable to analyse company business functioning implications among employees
are as follows:
The 5P’s HRM model
Author Boon, Lepak, and Boselie, (2018) The 5ps HRM model is based on 5
constitutional aspects which enables on developing strong business strategies and high functional
structure of company for higher recognition along with high marketing factor of stronger
working patterns. The 5 aspects are purpose, principles, processes, people and performance
which enables in aligning and balancing 5 principles which will lead into company achieving
success.
 Purpose is based on company vision, mission and primary objectives
 Principles are defined as operational protocols set to leading a purpose
 Processes include company architecture, system and methods of operation
 People are the vital HR resource performing tasks in line with the varied appointed
principles and procedures
 Performance is the ultimate result which can be further measured by appropriate
standards
These aspects enable long term business continuity among employees where strategy
prompts high effective system and staff behaviour factors which will promote business function
and higher profitability factors. The model explains effective working details distribution among
teams of all human capital where factors are focused to keep high relative factors of gaining high
commitment from all human capital. Leaders need to be highly focused to gain strong
commitment and deploy best resources to train them as per company objectives onto higher
levels.
The Harvard model
Author Campbell and Kryscynski, 2019 explains the Harvard model as one of the most
significant and highly influential model of HRM which focuses operations on 5 significant
components: situational factors, stakeholder’s interests, HRM policies and HRM outcomes, long
term consequences which overall management and company goals are set to achieve highly. The
correlation between situational factors and stakeholder’s interests are strong parameters which

effect HRM policies and implementation leads to desired outcomes. Tesco main aim towards
management of human capital can be understood with the fact that commitment towards quality
production with cost effective usage and competence are varied goals onto which employees are
guided further to keep them motivated with strong innovation. Model focuses on nurturing high
cooperation and strong motivational practices which also empowers other managers and HR
aspects of business. The stress is give to fact in building strong human capital which can give
high end competitive edge where employees should be treated as one of the biggest asset and
shall be given strong training and development platform (Wiersema, 2019).
TASK 2
Recruitment and selection can be understood as one of the most important business
function in order to strategic human resource initiatives for building strong committed workforce
and long term synergy of optimistic performance metrics. Tesco has been highly progressive and
being actively indulging in various employee development methods and activities which have
enabled the human capital management decision to be highly resourceful and best among all
fundamental competitors present within industry. Strategic development o human capital enables
to build long term synergy of higher effecting functional goals where management is actively
looking upto more high growth factor of diversity and relative intelligence which will not only
bring long term synergy of actions but also built their motivation towards work. Recruitment at
Tesco by HR department is done from various external as well as internal resources for
developing strong human capital strength among all management levels within the set time
criteria. Recruitment procedure is conducted on the basis of skills requirements among various
departments where employees need to be actively advanced with new skills and innovative
mindset. Author Delery and Roumpi, (2017) explains the internal resource of recruitment as
procedure where already working employees are further selected to some other high role for new
professional responsibilities. Whereas external recruitment is another more time taking method
but highly effective in building talented employees who are talented, experienced to bring in
innovative synergy of working parameters and induce fresh talent into company. Tesco has been
highly looking onto external sources of recruitments who are skilled and actively working
towards gaining stronger working paradigms in high class retail companies. The strategic human
resource capital can be formed on the basis of external recruitments where social media and

advertisement agencies are used to bring on new employees under workforce. Tesco considers
recruitment of human capital as one of the most important function where various HGR
executives have been focusing effectively to being large creativity and synergy of diverse
business functioning at work. There is high positive impact from external recruitment of
employees as they are professionally advanced, skilled minded onto new working parameters
which prepare them for greater leadership roles and more profitability among production
standards. Selection is considered as to be another most important function for developing
strategic human resource capital management which enables in developing higher company.
Author Elfenbein and Sterling, (2018) The selection procedure is highly developed and
fragmented onto various parameters for buildings strong teams and long functional channels for
long term efficiency and higher channels of technology advancement. Interviews are strongly
developed and done on the basis of Tesco company goals for higher effective targets and large
effective workforce development where all functional efficiency are formulated. Selection
procedure enables to get strong employees teams within various departments and is functionally
targeted to strengthen and reach new higher avenues of cost effective structure. The selection
procedure is inclined to formulate strong infrastructure of networking where all employees are
given equal working opportunities and various brainstorming sessions held at company which
keeps them motivated and advanced towards all new technical changes within departments.
Human resources initiatives are highly programmed into new rational synergy parameters at
Tesco by giving all employees working within various departments’ equal high opportunities
which will generate strong working networks and promote them for higher diversity within their
roles. Tesco being one of the biggest retail strong brand having large diversified workforce
working within various departments has been constructed and successful in generating long term
retaining HR policies (Sultana,2018).The leaders are working with high motivational techniques
to motivate employees and also provide best infrastructure and facilities which improvise and
develop employees to gather strong technical advanced skills.
Recommendations:
 As per the views of Author Krausert,(2018) Tesco can use online and social media marketing
channels for selecting best human capital and functionally targeting new arenas and
determinants for gaining strong teams at workforce. The company rational synergy towards
working paradigms of employees is highly stronger working network which will program

rational synergy onto various rational patterns. Human capital which is one of the biggest asset
for company and rationally the best high growth avenue parameter shall be programmed to
bring log term working and stronger working networking structure
 Tesco can further develop new HR practices to keep strong networking pattern and functionally
develop larger working ethics for higher retention power which will not only keep them
motivated and trained for continuous working paradigms. Tesco can look upon online web
services and look upon long term working potentialities enhancement by more practical
working sessions, brainstorming programs and research programs which will enable in
developing long term working retention among all factors.
 As per the views of Author Lin, Yu-Ping Wang and Jaw, (2017) Tesco can look upon Twitter,
linked in and facebook which are the best working apps onto which employees with high talent
and functional strength can be chosen for stronger working performance. The performance
management metrics shall be focused onto giving employees high intrinsic as well as extrinsic
motivation factors which will enable onto stronger working progression and higher goodwill
attainment which will program out higher profits.
TASK 3
Strategic approach: This approach stresses on fact that human resources are the real assets for
company in high dynamic business world which is based on competitive advantage and strong
working parameters for technical advancement and higher synergy within the department.
Workforce should be combination of new talents and skills, which can also be technically
undertaken with strong training. Strategic HRM approach focuses on people management
program with long term business solutions and highly gives importance to development
interventions.
Management approach: As per the views of Author Mackey and Barney, (2019) This approach
focuses on various factors which management must focus to keep strong committed workforce
where all factors of connectivity and rational synergy of functional strength shall be developed
ethically. The management approach factors importance on factors where all working leaders are
giving due importance and high rational synergy towards variable working conditions and also
give equal importance to all connectivity of innovation which will further develop long term
working parameters and enable high motivation upon them.

Proactive approach: This approach brings forward the high importance and vitality to look upon
future challenges and problems before they come upon management into dynamic business
world. The theory stresses high importance on the fact of proactive working parameters which
will save companies high considerable time and money for the long term within the working
hemisphere, through which large strategic innovation can be developed among employees
working within company. The approach stresses importance on proactive working parameter for
higher retention and long term working parameters which will able to develop long term develop
strong high yield functional position (Mkrttchian, 2020).
Human resource approach: This approach stresses focus towards providing high importance to
human resource where all employees and company management shall be give strong importance
and respect to work onto higher working parameters. The Approach lays stress towards building
strong working parameters where all determinants are focused to bring on high working
performance metrics. Tesco under this approach will develop new working avenues for
employees where the synergy of positive working culture and technical advanced working strong
connectivity shall be given high importance.
As per the views of Author Murugan and Sujatha, (2020) human resource approaches
have wide applicability and functionality with enabling company to develop log term synergy
and working ethics among employees which further develops strong goodwill of company and
also technically brings high advanced ethics in them. Tesco shall use proactive approach of
human resource through which dynamic working paradigms can be developed further and also it
will skill them to bring on strong creativity along with cost effective working paradigms. The
theory shall focus on human capital formation as an asset which will not only enable to develop
long term functional energy through which overall technical advancement can be undertaken
within employees strength and commitment towards work. Tesco also needs to bring on long
term working synergy which will technically bring marketers close to employees brainstorming
development and motivate them to keep retained fro longer working hemisphere. Tesco can also
program out new training avenues and functional seminars which wild develop high innovative
mindset among them but also rationally bring market segments close to generate higher strength
and positivity among them. Tesco can also be more innovative inclusive towards HR policies
and generate high functional strength which will generate long term factors of technical
advancement. Human capital works as one of the biggest strength where long term goodwill

parameters can be developed among consumers which will enable in strengthening the
commitment of human resources and also keenly focus on regaining the higher reflection.
Tesco leaders can built strong human capital management which will generate more higher
efficiency and yield onto best targets completion within the set performance metrics
(Rajarajeshwari and Cynthia, 2020).
TASK 4
Classical Motivational Theories
Motivation is the key factors which helps the business organisation to increase the
performance of their workforce and gain higher profitability. Motivation is the process of
increasing the opportunities of employees to fulfil their needs by achieving objectives of the
company. Classical motivation theory focuses on the needs and wants of employees in order to
develop effective strategy and increase their potential to compete in the market effectively. Tesco
has to analyse all the classical motivational theories which can help company to increase
workforce efficiency and improve the quality of decision making to increase higher profits and
market share effectively.
According to LeCounte, Prieto and Phipps,(2017) Maslow’s hierarchy of needs theory
states that it every human has different needs which if satisfied increases the performance. This
theory provides explanation of needs in hierarchy according to motivation level. Higher the need
in hierarchy will also increase the motivation of person. It is very essential for business to
understand all the needs of employees which improve cultural values of the organisation.
Maslow’s theory also maintains the work culture of the company by motivating employees
effectively.
Physiological needs Every human has basic needs which have to be fulfilled to survive
in the environment and increase standard of living effectively (Alayoubi, Al Shobaki and Abu-
Naser, 2020). This need also keep human to increase their motivation level to work hard and earn
their living to satisfy their needs effectively. For example, food, shelter, and water are
physiological needs of every human which helps to improve the decision making process.
Safety Needs are the second level needs which arise after satisfaction of basic needs.
These are the needs which help to motivate employees by ensuring safety which includes, job
security, economic security, health and safety at workplace.

Social Needs is very essential for very person as it provides social communication in the
society. This need is to be recognised in the society and attain affection and loved by them to be
satisfied and increase their performance effectively (Baškarada and Watson, 2017).
Esteem Needs motivates employees to increase their skills and knowledge to achieve the
objectives of the organisation and improve their personal development to increase status in the
society. These needs include respect, confidence, recognition, power, admiration which helps to
increase the potential of business to grow effectively.
Self Actualisation Needs arises only after fulfilling of all the needs in the hierarchy as
this need helps employees to be motivated to self learn and develop themselves in such way
which increases their internal satisfaction and make them best in their fields. Tesco needs to
develop strategy which helps to increase self actualisation needs which also motivates employees
and reduces the cost to provide training and development.
As per the view of Bartz, Thompson and Rice, (2017) Herzberg’s two factor theory
explains that need theory is flaw as it is very essential for business organisation to understand all
the internal and external factors which can influence the efficiency to motivate effectively. Two
factor theory states that it is very important for organisation to identify motivators and hygiene
factors which increases the efficiency of business to compete in the market effectively.
Motivators are the factors which helps the employees to increase their motivation level
and increase their performance to achieve objectives of the business effectively. Tesco has
developed effective understanding about all the motivators to develop effective strategies and
increase the job satisfaction of employees. Company uses public recognitions to employees to
increase their performance and also make them loyal to the company effectively.
Hygiene Factors are those factors which help to support the motivation factors and
improve the efficiency of strategies to improve superior’s performance of employees to achieve
objectives effectively (Arena and Uhl-Bien, 2016). Equal pay scale, company policies,
healthcare benefits, workplace safety, and respectful working environment are some of the
hygiene factors which helps motivators to increase productivity of the company to achieve its
objectives effectively.

Kant’s motivation theory helps to provide information about morale values of employees
which helps to motivate and improve performance of the company effectively. Tesco has to
develop adopt this Kant motivation theory which enables the company to enables managers to
develop behavioural motivation to achieve core competency in the market effectively. This
theory helps to integrate morale values with the actions of the employees to increase customer
engagement level and improve customer satisfaction effectively. with the help of hygiene factors
and analysis of needs of employees company can develop high performance workforce which
has more efficiency to compete in the market and take better decisions. Ethical organisational
culture also helps to increase the brand value and satisfy their stakeholders effectively. it is very
essential for Tesco to conduct research and development in the market to analyse current trends
and adopt changes to survive. Increase in the technological advancements also increases the
competition in the retail market and hence impacting the profit margins of the company. It is
very essential for Tesco to adopt powerful technology which reduces the cost of operations and
gather better information to make effective decisions effectively.
TASK 5
Characteristics of Effective Leader
In accordance with Subramony and et al., (2018) every person is leader until they realises
their inner strengths and power which helps them to increase the potential to achieve objectives
effectively. Effective leaders are people who have the ability to inspire others to increase their
potential and achieve the objectives for the leader effectively. Leaders also motivate and
influence them to increase their willingness to accept more work and learn to increase their
knowledge to reach the level of leader effectively. They increase the positive thinking in the
teams and workplace to resist all the threats and gain higher profit margins effectively.
Tesco is one of the largest retail store chain in UK and needs to adopt effective leader in
order to survive and maintain its position to grow and expand in the new markets effectively
(Leroy and et al., 2018). According to proposed hybrid strategy following are characteristics of
effective leader for Tesco to increase its performance to gain higher profit margins.
Transparency
Every employee as the right to know all the information which are instructed by their
leader which helps to provide more power in the organisation. This is also very essential for

leaders to provide transparency in the organisation will increase the trust of employees to share
the same vision and develop objectives to achieve it effectively. Effective leader need to have
ability to increase the positive environment in the organisation and decrease politics and other
negative factors. Tesco has to adopt these characteristics which can improve the motivation of
employees to develop high performance workforce to compete in the market and gain higher
profit margins effectively.
Ability to influence
Effective leader has the ability to influence which is very essential for business to adopt
new changes according to current market trends to survive the competition (SMITH, 2020).
Influencing employees also helps employees to increase their knowledge and become more
potential in making decision and attracting more customers. Retail industry is growing rapidly
and it is very essential for Tesco to influence workforce to implement change management
strategies and increase opportunities of company to achieve core competency in the market
effectively.
Risk taking
Effective leader has the ability to anticipate risks easily with any mental pressure which
can impact the business organisation positively or negatively. Every decision which leader make
are uncertain and they need to have the responsibility to accept challenges to discover something
new to improve efficiency of employees. Tesco need to experiment new strategies and theories
which due to increase in the competition all the market factors are changing very quickly.
Value ethics and integrity
Value and ethics define the culture of the organisation and working environment for
employees (Manuti and De Palma, 2016). Leaders have the ability to develop high performance
workforce which is more ethical in performing their actions and according to government
regulations and compliance. This helps company to reduce conflicts and increase communication
between all the departments to achieve collaborative working and attain objectives of business
effectively. Implementing ethical leadership in Tesco will help the company to increase its brand
value and motivate employees to work more effectively to gain higher opportunities to grow.
Balanced Optimism
Tesco needs effective leader who has the ability to provide hope and opportunities to
employees in the balanced manner so that if the objectives are unsuccessful it does not impact

the performance of any employee. This also helps the company to improve the value of working
environment by accepting the reality of uncertainty.
Empathy
Every leader has to understand feelings and behavioural patterns of employees in order to
analyse their performance. Effective leader has to ability to communicate with all the employees
and determine the issues and challenges they are facing in working and solve all the problems to
increase their efficiency and develop effective motivation strategies to improve the growth
opportunities for the company effectively (Di Fabio and Peiró, 2018) . Tesco has examine and
performance of employees and formulate succession planning who increases the ability to
understand employees effectively. this will also increase employee relations with Tesco and
make them loyal to the company effectively.
CONCLUSION
This report concludes that it is very essential for business to develop effective human
resources strategies by identifying all the external and internal factors to increase the
performance of the workforce. Report discussed recruitment and selection process helped
business to improve its workforce and increase quality of working environment effectively. This
also helped to understand the importance of human resource development to compete in the
market in the changing environment and also maintain performance of Tesco effectively. report
has also explained the approaches of human resource development to gain higher productivity
and increase profitability of the company effectively. There is brief information about different
classical motivation theories which helped to company to develop effective motivation strategy
and improve the efficiency of company to achieve its objectives effectively. it also helped
company to integrate it with effective hybrid theory to grow and expand effectively in the global
market. at last, report highlighted different characteristics of effective leaders which are required
by Tesco to increase the potential of company to lead their employees and improve the
opportunity effectively. report provides recommendations to increase the potential of Tesco and
reduce the threats of competition to indulge with more customers and improve customer base
effectively.

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