Managing Human Capital and Leadership

This report analyzes the role of HRM and leadership in TESCO, exploring different HRM models, HR functions, HRM software, and the characteristics of effective leaders. It provides insights into how TESCO manages its human capital and leadership to achieve organizational goals.

Managing Human
Capital and
Leadership

INTRODUCTION
HRM is considered as the most effective strategic approach in order to manage the
human resource of an organisation. It will aid the whole organisation to gain competitive
advantages at the marketplace. This approach is develop by the management team of the
company for maximizing the performance of employees as well as develop them to achieve the
goals and objectives in an effective manner. In addition to this it is very important for the HR
manager to have leadership quality in them for managing their staff members effectively. It is
also known as personnel and talent management as HRM helps in developing as well as
managing the employees of the company. The present report is based on TESCO, it is a one of
the most popular large scale multi-national company which provides grocery product across the
world. TESCO was established in the year 1919 by Jack Cohen and its headquartered is located
in UK. In this report, HRM models has been included along with HR functions. In addition to
this, a detailed information about the HRM software has been discussed in this report. At last,
effective characteristics of a leader has been included in this report.
TASK 1
HRM models and examine the approaches of organization to the management of its human
resources.
For building good working environment within the organisation there are four main
models of HRM. These models helps in providing analytical framework for studying HRM such
as competence, situational factors, strategic choice levels, stakeholders and many more. Along
with this these models provides distinctiveness to the practices related to HRM (Alfes and et. al.,
2013). These models provides a description of HRM which maintain variables as well as
relationships. Different organisations use different types of Human Resource Management
models. These models are:
 The Fomburn Model
 The Guest Model
 The Warwick Model
 The Harvard Model

The Fombrun, Tichy and Devanna Model – It is the first Human Resource Management
Model, proposed in the year 1984 (Budhwar and Debrah, 2013). It is the model mainly focuses
on the four major Human Resource Management functions and their interrelatedness. These
functions of HRM are development, appraisal, selection and rewards. With the help of these
functions human resource of an organisation can be managed in an effective manner. Along with
this, it helps in increasing the productivity as well as efficiency of employees. In the present
context of TESCO, management team of Human Resource use this model in order to increase the
effectiveness as well as capabilities of employees by providing them training, appraisals and
rewards. On the other hand, one of the major drawback of this model is that it is not in a
complete format as it only focuses on four functions. In addition to this, this model does not
consider contingency as well as environmental factors, which commonly affects the functions of
Human Resource Management.
By adopting this model in TESCO, managers of the company recruit and select fresh
candidates. Approaches of the company are recruiting, selecting, rewarding and appraising the
employees. With the help of this model company recruit and select new candidates in the
organisation.
The Guest Model – It is the second model of Human Resource Management, which was
developed in the year 1997 by David Guest (Chelladurai and Kerwin, 2017). It is one of the most
effective model as compare to other HRM models. In this model, HR manager have some plans
and strategies when they begin and all these strategies demand some practices before Human
Resource Manager execute them in their organisation. After executing these strategies, certain
positive outcomes will be received, these outcomes or results related to the performance,
behaviour as well as financial rewards. This model mainly focus on the logical sequence of six
major components. These components includes, HR outcomes, HR strategy, HR practices,
performance results, behavioural outcomes and financial consequences. In addition to this,
performance of staff members decides the financial results of an organisation. In the present
context of TESCO, HR manager of the company implement this model in their organisation
where final position of the enterprise depends mainly on the performance of their workers. It is
the outcome of the action oriented behaviour of employees. It is the responsibilities of Human
Resource managers to implement HR practices along with HR strategies in order to achieve the
goals and objectives of the company in an effective manner. Commitment of employees,

flexibility and quality are the three main components which directly affects the behavioural
outcome of employees.
With the help of this model company formulate their strategies, plans, practices which
affect the overall behaviour of the employees of TESCO (Huselid and Becker, 2011).
The Warwick Model – It is the third model of Human Resource Management which was
developed by Hendry and Pettigrew of University of Warwick. They are the two researcher who
develop this model which includes five major elements. These elements are:
 Inner context (micro environmental forces)
 Outer context (macro environmental forces)
 Human Resource Management Context
 HRM content
 Business strategy content
According to this model, the strength of it is based on the identification and classification
of different internal and external factors which affects the overall Human Resource Management.
In addition to this, the Warwick Model also includes interactions between changes which has
happen in both HRM content and HRM context. In reference to TESCO, HR managers of the
company use this model which helps them in order to analyse what factors will affects the
overall HR practices or strategies (López-Nicolás and Meroño-Cerdán, 2011). Also one of the
major advantages of this model is that it helps in classifying and identifying the factors which
influence the organisation. This model help the managers in order to find out the connection
between environmental and external factors, as well as adapt changes effectively. If the company
adapt these changes in an effective manner will help them in achieving growth and success in the
competitive market place.
According to the model, managers of the TESCO examine the external as well as internal
environment environment which affect the overall working culture of organisation.
The Harvard model – This model is considered to be comprehensive and commonly
includes six main components of HRM. These dimensions includes long term consequences,
situational factors, HR policy choices, stake holder's interests, feedback loop and HR outcomes.
Result of this model directly flows to the stakeholder as well as to the organization. Framework
of the Harvard model are as follows:-
Stakeholder’ Situational Human resource Human Long term

s interests factors management
policies
resource
management
outcomes
consequences
Shareholders
Government
Employee
Management
Community
Business strategy
and conditions
Management
philosophy
Workforce
characteristics
Tasks technology
Law and societal
values
Employee
influence
Reward systems
Human resource
flow
Work systems
Commitment
Cost
effectiveness
Competence
Congruence
Societal well
being
Individual well
being
Organizational
effectiveness
TASK 2
Critically discuss the HR functions in relation to strategic human resource
Strategic human resource management is defined as a practice which attract, retain,
reward and promote employees in order to provide benefits to both employees as well as to the
organisation (Marchington and et. al., 2016). Strategic HRM plays very important role in a
company and utilize the talent within HR department in order to make other departments
stronger. With the help of Strategic HRM company will be able to examine opportunities and
threats available at external environment. On the other hand it provide benefits to the company
by satisfying the needs and wants of customers in an effective manner. Therefore, it is very
important for TESCO to fulfil the requirements of employees by implementing effective
strategies within the organisation. As a result it will help the management team of the company
in order to achieve their goals and objectives effectively. In the present context of TESCO, the
main functions of strategic human resource management is to recruit, hire or select the potential
candidates as well as develop strategies for the whole organisation (Messersmith and et. al.,
2011). TESCO is one of the largest multi-national company which provides grocery product all
over the world. Therefore, it is very important for the company to manage their human resource
management in such a way so that they will be able to achieve goals effectively. There are

different types of functions of strategic human resource management within an organisation such
as selection, recruitment, human resource development, talent retention, talent acquisition and so
on. All these functions plays very important role in the growth and development of employees
and for the whole organisation (Renwick, Redman and Maguire, 2013). HR department of the
company involved in hiring the fresh talent and give them training in order to achieve
organisational goals effectively. In the present context of TESCO, there are various functions
which is used by the management team of company which are as follows:
Recruitment & Selection: Recruitment is the process where management team of the
company find best candidate which help them to achieve their goals effectively. It is one of the
most important function of HRM. of an organization. On the other hand, in case of selection,
managers of the company choose right and capable candidate who have required educational
skills and knowledge in order to fill the current job position. In reference to TESCO, managers of
company recruit and select candidate on the basis of their skill and technical knowledge as well
as according to the requirement of staff within the organisation.
Recruitment process includes various techniques such as advertisement in newspaper,
magazines and through job portals, websites and many more. In addition to this, it involves two
sources which is internal and external sources (Rubery and Urwin, 2011). After recruiting a
candidate, second phase is selection where candidates will be judged on the basis of their skills,
aptitude, attitude, personality, analytical, behaviour and so on. In reference to TESCO, it is very
important to understand the strength and weaknesses of internal or external source of
recruitment.
Sources of Recruitment:
 Internal Sources: According to this source, management team of the company fulfil the
vacant position by selecting candidates within the organisation. It includes promotion,
transfer and many more. This type of source motivate the employees which will increase
the profitability as well as performance of employees. In the present context of TESCO,
managers of the company use this method which includes, employee mobility, transfer,
promotion and many more. External Source: It is one of the best recruitment process which helps in acquiring fresh
talent from all over the world. In addition to this, managers of TESCO, use this approach

for recruiting best and potential candidate which includes job portals, campus
recruitment, labour contract, consultant agencies and so on.
Strength and weaknesses of recruitment approach:
Particular Internal Recruitment External Recruitment
Strength  According to this process,
managers of TESCO know
their employees personally,
so it will become easy for
them to promote best one
from them (Schermerhorn
and et. al., 2014).
 It is the method, which save
cost as well as time of the
TESCO which will be
beneficial for the whole
organisation.
 With the help of fresh
talent TESCO can enhance
their profitability as well as
productivity by creative
innovative products.
 It will provide equal
opportunity to capable
candidates which will
motivate them.
Weakness  This method of recruitment
fails to acquire fresh talent
which will affect the
productivity of TESCO.
 On the other hand, scope for
TESCO will become limited
and company fails to
generate new and innovative
products.
 It is time consuming as
well as costly method
which affect the profit
margins of the company.
 HR manager of TESCO
have to conduct various
activities in order to recruit
best candidate.
Selection: Under this process mangers differentiate best and capable applicants on the
basis of their skills, knowledge, attitude and behaviour (Sheehan, 2014). This process includes
various tests such as personality test, aptitude test, case study analysis, personality test and many

more. In the present context of TESCO, managers of the company adopt two methods for
selecting best candidate which is written test and interview method.
 Written Test: This is the best method in order to examine the skills, knowledge
and capabilities of any candidate. Manager of TESCO use this approach within
their organisation, which will provide them potential candidate which enhance the
productivity as well as profitability of the company (Sparrow, Brewster and
Chung, 2016). This method help the management team, to check capabilities of
candidate according to their academic, logical and analytical knowledge.
 Interview method: Under this method, managers of TESCO conduct an intervie
session for examining their candidates personally. It includes face-to-face
interview, telephonic interview and many more. This approach helps the
managers in order to examine the technical knowledge, personality as well as
behaviour of the candidate.
Strength and weaknesses of selection approach:
Particular Interview method Written Test
Strength  In this method of
selection, managers of
TESCO check the
educational
qualification of the
candidate (Storey,
2014).
 It is one of the common
and traditional method
of selecting best
candidate.
 On the other hand, this
method helps the
manager to personally
examine the candidate
knowledge, skills and
attitude.
Weakness  It consumes a lot of
time and effort of
management team of
TESCO. And on the
 This method also
require lot of time,
effort and cost of
TESCO.

other hand requires lot
of funds.
Training and development: It is another most important function of strategic HRM.
With the help of this function managers can enhance the performance of employees, develop
their skills and knowledge (Unger and et. al., 2011). In the present context of TESCO, mangers
of the company provide training sessions to their workers. These training sessions includes skill
development training, on the job, off the job training and many more. With the help of such
training sessions employees can enhance skills, knowledge as well as abilities. Skilled and
potential employee helps the company in order to achieve organisational goals in an effective
manner. With this company will be able to enhance following things in an effective manner:
 Skills: There are various skills with the help of which an individual can achieve their
goals and targets effectively. These skills includes communication skill, personality
development, attitude building and many more. All these skills will be enhanced if
managers of the company provide effective training and development sessions to their
employees. It is the responsibility of Human Resource manager of TESCO, to provide
regular training sessions to their employees which will enhance their skills. With the help
of this, company can effectively achieve their goals and maintain their position at
marketplace for long term.
 Knowledge: It is the duty of human resource manager to increase the knowledge of their
employees. Technical knowledge, market trends, strategies all of these will help TESCO
to maintain their sustainability at the marketplace. By providing effective training
sessions employees can enhance their knowledge related to products, services,
technology, current market trends. As a result, this will increase the production level of
company as they satisfy the requirements of consumers by knowing their demands in
advance.
 Providing better quality work: With the help of effective training sessions, employees
of TESCO provide high quality work (Welch and et. al., 2011). In addition to this, if
management team of the company provide training sessions on a regular basis, defects in
the products and services will be reduce. It is one of the major function of HR manager to

provide such sessions which will further help the overall organisation at the marketplace.
Managers of TESCO should formulate effective strategies and plans ion order to maintain
the growth of company at the marketplace.
 Enhancing overall performance of employees: By providing training and development
sessions to their employees on a regular basis, TESCO can enhance the overall
performance of their staff effectively (Renwick, Redman and Maguire, 2013). On the
other hand, if the performance of employees increases it will automatically improve the
profit margin of company. In addition to this, mangers of TESCO provide perks, benefits,
bonus, appraisal, appreciations and many more in order to motivate the employees of
TESCO. It is very important to motivate and encourage employees so that they can
perform effectively within the company. With the help of this, management team of the
company retain their potential employees for a long period of time in their organisation.
As per the above mention it has been critically evaluate that there are some positive as
well as negative aspects of recruitment and selection technique. With the help of this it has been
analysed that by using above mention techniques within the organisation, company will be able
to select and hire best and potential candidate which will enhance the profitability of the
company,. Along with this, company can also maintain their sustainability at the marketplace
which will provide competitive advantages to the company. While evaluating such situation, it
has also been identified that there are some negative aspects of recruitment and selection
techniques which affect the profit margin of the company. This method requires lot of funds,
time and effort, which can reduce the profit margin of the company.
According to the above mention it has been evaluated that there both positive and
negative aspects of training and development (Schermerhorn and et. al., 2014). Positive aspect of
this techniques is that it will enhance the performance of employees, which help them to produce
best and defect free products. Also with the help of this, workers of TESCO will be able achieve
their personal as well as organisational goals and objectives in an effective manner. But while
evaluation this, there are some negative aspects which affect the overall performance of the
company. Training and development sessions require lot of effort, time and cost, which will
enhance the productivity of company but also reduce the profit margin.

TASK 3
Critically evaluate human resource management software programs
In order to enhance the productivity, performance as well as profit margin of the
company, it is the duty of manager to implement effective strategies and plans. With the help of
HRM software company can measure as well as increase the performance of employees. There
are ample number of human resource management software available at the marketplace. For
effectively completing HR functions as well as operations, managers of TESCO use various
HRM software. Some of the most commonly used software are as follows:
Infor CloudSuite HCM : It is one of the most beneficial software for the company. Infor
CloudSuite HCM software help by providing solutions regarding human capital management and
it is very effective for the overall organisation (Storey, 2014). Price of this software is quite
affordable and gives best and simple solutions without any complexity. One of the biggest
drawback of this software is that it over simply the interference of user. If TESCO adopt this
software it will help them to enhance the growth of the company.
As per the above mentioned, it has been evaluated that there are various positive as well
as negative aspect with the help of which it can be analysed that whether company should adopt
it or not. One of the biggest advantage of this software is that the price of Infor CloudSuite HCM
software is quite affordable which can easily be adopted by any company. On the other hand, the
major drawback of this software is that it simplifies the user interface.
Oracle HCM Cloud : It refers to the complete Human Resource Management solution
which provides best and suitable approaches which helps in utilizing the employees of the
company in an effective manner. This software helps the overall organisation in order to develop
as well as find best way to use their employees which as a result increase the growth of the
company. In addition to this, there are some issue related to this software such as amalgamation
or combining the software with 3rd party, high price of the software, unable to translate in
European languages. But if TESCO adopt this software, it will be beneficial for them only if they
ignore its drawbacks.
According to the above mention software, it has been examined that there are some positive
and negative benefit of this software. In context of TESCO if company implement such software
within their organisation it helps them in utilizing their workforce effectively but on the other

hand there are some drawbacks which create hurdles for the management team (Messersmith and
et. al., 2011).
Kronos Workforce Ready: This is the software which make the work of company easy, as
it provides a flexible domain model with Artificial Intelligence. Kronos Workforce Ready
software provides each and every detail relating to recruitment, compensation, training and
development benefits, succession planning, performance management, time and attendance
schedule, labor analytics, absence management, payroll and many more (Alfes and et. al., 2013).
One of the advantage of this software is that it is fastest as well as cheapest software which
provides so many benefits to the company. But on the other hand, with the help of this software
if management team doing so many things it will become clumsy and start giving negative
results.
As per the above mention it has been evaluated that if TESCO use this software in their
organisation, it will definitely bring some positive result. One of the positive aspect is that the
price of this software is quite cheap and can adopted by any company. But on the other hand, its
negative aspect is that if too many works can be done with this software, this will become
clumsy.
Workday HCM: It is the software which totally work on cloud based, it is a revolutionary
software which helps the whole company regarding human resource. This software is built on a
single system with the help of single source of data, as well as it is a single security model with
the help of which company can manage their overall work related to work force of their
organisation. It provides various benefits to the company related to compensation, manage the
human resource, manage the absence of employees, talent management and so on. One of the
drawback of this software is that it does not provide the ability to customise it.
TASK 4
Discuss the characteristics of effective leaders of the organization
With the help of proper Human Resource Management, company will be able to
maximise their profit margins as well as achieve their goals and objectives effectively. In
addition to this, effective leadership required in TESCO in order to accomplish the operations
and functions (Budhwar and Debrah, 2013). In the context of TESCO, there are various
characteristics of an effective leader which includes communication skills, honesty, integrity,

commitment towards work, confidence, passion, decision making abilities, creative as well as
innovative and many more. With the help of these traits and characteristics, leader of an
organisation can effectively perform their roles and responsibilities. It is necessary for a leader to
be innovative, passionate and creative towards their work and achieve pre determine target
effectively. With the help of effective communication skills, leaders of the company can
communicate with their employees effectively.
It is the responsibility of HR manager of TESCO that from the above mention software
which is the best software for company. After analysing all the HRM software with their positive
and negative aspect, Oracle HCM Cloud will be the best and suitable software for TESCO.
Reason behind adopting this model is that it is most compatible with existing business strategies
and can easily be adaptive by the management team of the company.
Trait theory of leadership: This theory of leadership is an approach which focuses on
studying the personality of human being. This theory focus on identifying various personality
traits and characteristics which acts as a link between contrasting situations of the company
successfully (Chelladurai and Kerwin, 2017). Successful leader have different interest,
personality and ability which makes them differentiate from other leaders. According to this
leadership theory there are some common traits which makes an individual effective leader.
These traits are as follows: Honesty: Effective leader of an organisation build healthy relationship with their
employees by being truthful and honest towards their words and work. In context of
TESCO leaders of the company provide true and fair information to their employees
which helps them to motivate towards their work. Intelligence: In context of TESCO, leader of the company is intellighent and have
information and knowledge related to the current market situation. With this they will
produce effective products and services. Drive: Leaders have hire desire of achievements, they are highly motivated towards their
work. In references of TESCO leaders are highly motivated towards their work and have
desire to achieve more.
 Job relevant knowledge: Effective leader should have high degree of knowledge related
top their work, technology, industry and so on. In the present context of TESCO, leader

have high quality of knowledge about their work, with this they will be able to provide
relevant information to their workers regarding their tasks.
CONCLUSION
As per the above mentioned report, it has been concluded that HRM as well as Strategic
HRM plays very effective role in order to achieve the goals and objectives of the company
effectively. In addition to this, various HRM software are examined in this report with the help
of which company can reduce their extra cost and enhance the profitability of the company.
Along with this, various characteristics and traits of an effective leader has been analysed with
the help of which leader can effectively perform their roles and responsibilities.

REFERNCES
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