Managing Human Capital and Leadership

This document discusses the importance of managing human capital and leadership in organizations. It explores relevant HRM models and analyzes TESCO's approach to human resource management. The document also provides recommendations for improving TESCO's HR function and strategic initiatives.

Managing Human
Capital And Leadership

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
DISCUSSION..................................................................................................................................3
TASK 1............................................................................................................................................3
Relevant HRM models, analyzing approach of company to management of its human
resources- ...................................................................................................................................3
TASK 2............................................................................................................................................6
Critical discussion of organization's HR function in relation to the strategic human resource
initiative. Making relevant recommendation as how it can be improved-..................................6
TASK 3..........................................................................................................................................10
Critical evaluation of HRM software program which are available off shelf and evaluation
which one of these software programs would be mostly beneficial to company-....................10
TASK 4..........................................................................................................................................11
Discussing characteristics of effective leadership along with relevant model for justifying
analysis-.....................................................................................................................................11
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................15

INTRODUCTION
Managing Human Capital and Leadership is very essential for company to gain huge
competitive advantage for company. The human capital and leadership must be managed and
controlled by the company effectively so that its goal and objective can be achieved.
TESCO is British multinational grocery and general merchandise retailer. It had its
headquarter Welwyn Garden City, Hertfordshire, England, United Kingdom. Company was
founded by Jack Cohen in 1919. Company had its 6,800 shops in various location. The above
report includes relevant HRM model, analysation of approach for company to management of its
human resource. Discussing organization's HR function with relation to strategic human resource
initiative. The report further carried forward with critical evaluation of Hrm software program
which are available off shelf and evaluation of one of this software program which is beneficial
to company. Report ends with discussing characteristic of effective leaders with the help of
relevant leadership model.
DISCUSSION
TASK 1
Relevant HRM models, analyzing approach of company to management of its human
resources-
Human resource is the department of organization which is charged with screening,
finding, training and recruiting job applicant, and administrating the employee benefit program
with the company. Human Resource plays a key role in helping organization for dealing with
fast-changing business environment and great demand for the quality employees so that the goal
and objective of company can be achieved with the skilled and talented employees. The HR
department of company helps them to maintain their culture and core values. The employee in
company can be effectively managed and organized by the HR department of company. The
competencies can be developed by company so that individual and organizational performance
can be enhanced by the company's HR department.
The Human resource model renders an analytical framework by which HRM study can
be done. Under this model organization's strategic scheme that is designed for coordinating and
administering business function related to human capital (Greer, Lusch and Hitt, 2017). The
models are described below-

The Harvard Model-
It is most significant and influential model of HRM. The Harvard Model, is initially established
by various expert lead by Michael Beer in 1984 at the Harvard University. Harvard Model is
operating along with five important competent that are- stakeholder interest, situational factor,
HRM policies, stakeholder interest, long-term consequences and HRM outcome which is set by
company to achieve. As per the HR framework, the interrelation among stakeholder interest and
situational factor which strongly affect and help to shape HRM policy, that is implemented for
leading to desired HR outcome. According to the creator of this model, it aspires for improving
the four Cs that are commitment, congruence, competence and cost-effectiveness which is
helpful for leading to favorable consequence for the societal well-beings, individual well-beings
and organizational effectiveness (Mayo, 2016). Harvard Model bring up cooperation and
empower general manager and motivational practice to getting involved in HR aspect of
business. This model is helpful for TESCO to gain significant competitive advantage, so that
employee must be treated as asset rather than cost.
Warwick Model-
The Warwick HRM Model was established by researcher Andrew M. Pettigrew and
Chris Hendry at University of Warwick in early 1990. It is developed from Harvard Model, this
framework of HRM represent analytical approach to the HRM. The Warwick framework focus
on five various element-
 Outer context that include technical, political, and competitive factor among other.
 Inner context concerned about leadership, structure, task-technology and culture.
 Business strategy context represent organization's objective, general strategy and product
market.
 HRM context includes role, organization, definition and HR outputs.
 HRM content consist of HR flow, employee relation, reward system, work system and
other aspect (Vidotto and et.al., 2017).
It is helpful for identifying and classifying essential environmental influence on HRM.
The connection among environmental and external factor and further human resource
management can be adapted to change which is helpful for the growth a development of
company. The TESCO can achieve growth and performance by aligning the internal and external
factor context.

Guest Model-
This Human resource management model is established by David Guest in 1997 and also
claims to be superior to the other model. The model claim that HR manager had specific strategy
to begin with, that demand certain practice when it is executed and will further result in outcome.
This outcome consist of behavioral, financial and performance related rewards. This model has
its main emphasis logical sequence of the six component that are HR practice, HR strategy, HR
outcome, performs result, behavioral outcome and financial consequence. The financial
performance of TESCO depend on performance of employee, which result in action oriented
behavior of employee. Behavioral outcome are result of the employee quality, commitment and
flexibility which impact HR practice (Morris, Shenkar and Mackey, 2019). HR practice needs to
coordinated with HR strategies that are invariably aligned with the TESCO strategies.
The claim of Guest Model to be superior can be partially justified. Field of HRM and
delineate input and outcome. But the dynamic of management of people is complex that no
model could capture them comprehensively.
Hard and Soft HRM approach -
There are variety of way to approach the management of HR in the business. The two
broach approaches of HRM are as follows-
Hard HRM : In this approach employees are treated as resources of business such as building
and machinery. There is minimum communication among the employee from top to the down.
The taller organization structure follow this type of approach. There is little delegation or
empowerment among the employees. Minimum wage is given to the employees and no rewards
are given to employees. The appraisal system of company is dependent on judgment that is good
or bad about the staff. Autocratic leadership style is best suited.
Soft HRM: In this type resources employees are treated as most essential resource of business
and source of the competitive advantage. The main strategic focus is on long term planning for
workforce. Communication among employees is on regular with two-way communication. There
is delegation and empowerment among employees and they are encouraged to take responsibility
(LeCounte, Prieto and Phipps, 2017). It has flat organizational structure. In this approach
competitive pay structure is to be given to the employees along with appropriate rewards as per
their performance. The appraisal system is addressed and focused on training and need of other
employees.

TASK 2
Critical discussion of organization's HR function in relation to the strategic human
resource initiative. Making relevant recommendation as how it can be improved-
Human resource professional conducts wide variety of the tasks across organizational
structure. Core function of human resource department that will be useful in framing more
common activity which human resource professionals will be conducting. The main functions of
HR can be summarized below-
Recruitment and Selection (Staffing)-
Staffing is the core function of HR Manager, HR department and the hiring manager
which ensures equal employment opportunity. Human resource recruiting and planning precede
actual selection of individual for position in the company. Recruitment is process of inviting
skilled and qualified applicant by publishing notification in newspaper, online, television media
and social media networking for filling up the job vacancies. Recruitment of employee is
managed by the two main source, that are recruitment by external or internal source. In the
internal recruitment is process where individual candidates from company had given chance for
recruitment on the upper post with the help of promotion or as per the analysation of their skills
and talent and giving them the vacant post by admiring that individual will be appropriate for
that post (Susanto and et.al., 2019). Whereas external recruitment is the process where company
publish the job vacancy to invite the appropriate candidate for the required post. After the
process of recruitment, employee selection process is to be done in which appropriate skilled and
talented individual is to be selected by using the written test, group discussion, oral test,
gamification, final job interview and background verification so that individual's genuineity and
credential of candidate for filling vacant job in company.
TESCO could use common source of recruitment and could publish their job invitation
there so that it could be reached to wide range of peoples and further they can select the skilled
and talented individual for company from huge ocean of people. They allow their employees
referrals so that they can select most appropriate talent for their company for particular vacant
job. They can also use internet or online recruitment, employment agencies, campus or college
recruitment etc. so that they can have more options available. The selection of the candidate by
TESCO must be done by the overall evaluation of their skills and talent that it is suitable for their
company's growth and development or not (Arena and Uhl-Bien, 2016). The candidate is full of

productivity or not or could perform its job with full confidence and in the right way ahead. HR
must not perform any biasness while selecting the candidate for job vacancy they must justify
their selection for particular individual and genially that individual must be productive resource
for the company.
Human Resource Development-
Human resource development include training and development after an individual is
recruited in the company. By the appropriate training and development is helpful for individual
to learn new skill, rendering resource which are beneficial for employee's task and various other
development activity. This process is helpful for TESCO to retain and on-boarding employees
for long term. If proper training is not render to employees than they couldn't be succeeded. With
the help of learning and development employees can develop professional and personal skills in
them so that they can grow steadily. The Human resource development is integrated use of the
organization, trailing and career development efforts which is helpful for individual,
organizational and group effectiveness (Khoreva, 2016). The competencies are developed which
enables candidates in TESCO to perform their current and future job with planned learning
activity. Company can use this to manage and initiate change. The Human resource development
always ensures the coordination among organizational and individual need. HR department of
TESCO can also render time to time training to their employees so that their employees will be
well trained and could perform the task easily and qualitative. In approx 3-4 months they also
must render effective development program for the employees of several department by which
they can learn and develop new professional skill which is helpful for their overall development
and growth and they can be the productive resource for company.
Along with that employed are encouraged to retain with the company as various
development in ones personal identity is being done which is helpful in career development of
individual. Through development program employee will be prepared for higher responsibility in
the company. So that they can be fruitful for the growth and development of company. The goal
and objective of company can also be achieved effectively if employee are well trained and
developed. The proper training and development program are helpful in assuring that workers are
able to perform their task and job at the acceptable level. There are two training process which
TESCO can use are On-the-job and Off-the-job training methods (Cerovic and Kvasic, 2016).
On-the-job training method includes coaching, job rotation, committee assignment, job

instruction, internship and apprenticeship etc., whereas Off-the-job training contains audio-
visual, case studies, classroom lectures, role playing, vestibule training, simulation and
programmed instruction. The HR manager of TESCO must encourage and motivate their
employees to take pat in the training and development program so that more and more
employees participate in these programs actively. The On-the-job training method must be used
by TESCO for their employees. The HR manager of company must engaged their employee also
in ongoing skill development will be helpful for company to achieve their goal and objective
with their talented and skilled employees and could easily compete with their rivals in
marketplace (Aminullah and et.al., 2017).
Motivation-
Motivation to the employees are very essential for company. It is the basic feature of
Human resource management. The HR manager of company must identify factor that cause
demotivation to employees and must try to convert theses factor into motivation for their
employees. The employees who are motivated and encouraged to work for the betterment of
company are productive for growth and development of company as compare to unmotivated
employees. The HR manager of TESCO could motivate their employees by rendering them
paying benefits. The employee's right is to get appropriate salary for work done which is done by
them and providing payment of wages and salary to the employees is fundamental duty of the
employer. Handsome salary can be given to the employees so that they can be further motivated
to work with the company along with that employees can also be retain with company for long
term. The manager of TESCO could provide employee benefit to their workers that are
additional to their salary (Rahim, 2017). The employee benefit includes voluntary benefit and
statutory benefit that contains social security benefit that are necessarily provided to the
employees. Some of these can be free food, paid vacations, medical benefits, paternity benefits,
dependent benefits, maternity benefits, payment of the bonus, provident fund and payment of
gratuity all are extra benefits that are given to employees that they feel motivated to work with
company.
Maintaining and rendering good working condition also motivates employees to work
with company for long term. Good working condition contains rendering flexible work timings,
limited work must be given to employees so that employees could not face stress, maintaining
the healthy work environment. The HR manager of TESCO must also ensure that there is

balance among their employees personal life and professional life if it is then employee will be
motivated to work with company for long term and could be productive for the company. The
company policies of TESCO must be supportive to the labor law and principle of natural justice.
The company must have aim that there policies are making their employees feel comfortable and
treating them undiscriminating in the company. If company will have good company policy then
they can motivate their employees to delicately work for company to achieve its goals and
objectives (Nedelcu and Buşu, 2016). The brand reputation and brand value of company also
motivate employees to work with company. Employees of that company feel pride to work with
that company and can be further motivated to work for achieving its goal and objectives. They
will make extra efforts for the growth and development of company. So TESCO must also try to
develop their employer brand and the reputation so that they can motivate their employees. It is
the continuous process in which TESCO must try its best in all the aspects as compare to its
competitors.
Performance Appraisal-
It is the major HR function that is helpful for company to monitor performance of
employee so that they can ensure performance of their employees. The human resource manager
is responsible for administering and developing performance appraisal system. Along with
rendering basis for promotion, pay and disciplinary action, performance appraisal informations is
very important the development of employees however knowledge of result is essential for
motivating and guiding improvement in performance. For analyzing employee performance HR
manager of TESCO must establish standards for performance, and then further communicating
these standards with employees, measuring actual performance of the employee with the help of
several methods of performance appraisal and then at-last comparing actual employee's
performance. The modern appraisal method should be used by TESCO for measuring
performance appraisal of their employees. This modern methods are management by objective,
360-degree appraisal and cost accounting method for the evaluation of performance appraisal for
their employees. The performance appraisal is helpful for TESCO to analyse the gap between
employees performance. So the HR manager of company can develop a plan for filling the gaps
in employee's performance by providing focused and suitable training so that skills can be
further improved in employees (Joo, Lim and Kim, 2016). After the analysis of employees
performance so that further if employee had good performance must be motivated by providing

them particular rewards and incentive so that employees will be encouraged and motivated to
work for the betterment of company and the goal and objective of company can be effectively
achieved by them. If performance of employee not up to the mark then further training and
development programs are given to them for further improvement.
Welfare, healthy and safety measures-
The company must maintain health, safety and welfare measure for their employees is not
just a function but must be mandatory follow by every company's HR department. If company
fails to perform of maintaining these measures, penal action can be taken by law against the
company. The TESCO should render there employees with good canteen facility, medical or first
aid facility, lunchroom, restroom and childcare facility. Employee health measure could be
maintain by company that are cleanliness at workplace, disposing of waste and management,
rendering healthy work environment, cleaning and washing facilities with freshwater etc.,
Employees safety also must be considered by company that there employee can be safeguarded
by workplace injuries, several accident hence employees are responsible if any incident has been
occurred to the employee at the workplace during the employment course (Vasilaki and et.al.,
2016).
TASK 3
Critical evaluation of HRM software program which are available off shelf and evaluation
which one of these software programs would be mostly beneficial to company-
There are many HRM software programs that are available off shelf. This software is
very helpful for companies to manage their HR practices across their business operations.
BambooHR-
BambooHR is online human resource software which renders single system for
consolidating all human resource and employee related data, managing number of human
resource activity (Chen and et.al., 2016). It is helpful for building a centralized database of the
employee profile which can be accessed by anyone in organization with prior permission.
CakeHR-
CakeHR is complete HR solution that solve modern challenges of HR. Requests are
handled and approved digitally, and further it is being tracked in shared reports and calendars.
Team meetings, project management and resource planning is to be managed under this
software.

Every employee can access their accounts and could see their balance, time off request and
access with company's information.
ADP Vantage HCM-
ADP Vantage HCM is strategic focus, globally Scalable system of HR which renders
unmatched services and expertise, intuitive and innovative technology, unified service and
valuable insight which help unlock their workforce's maximum potentials. It delivers innovative
technology which is combined with actionable “intelligence in business” which is helpful for
company to make effective business decision.
Adrenalin HRMS:
Adrenalin eSystems Limited is the global software and product solution company in filed
of automation in HR. It offers complete suite solution which covers entire HR Processes
spectrum. It makes workforce Mobile enabled workforce. Access is provided to related
personalized HR capability to their employee and enable them to quick act on things which
needed their attention (Leroy and et.al., 2018). The individual can be connected with the business
from anywhere and on any of the device.
Open HR-Advanced Business Solution-
Advanced Business Solution is leading provider of the integrated business service and
application for private, public a third sector. It is flexible, built and Scalable on latest proven
network technology. It provides tool to Hr department which manage workforce efficiently and
effectively. The all HR aspects are included under workforce and talent management
optimization processes.
The ADP Vantage HCM can be used by TESCO so that they can make smart business
decision through deeper insight. They can recruit right individual in right place at right time so
that they can have productive employees for their company by which company's goal and
objective can be further achieved. They can also have single view of the critical analytic across
company for its business decision making and actions which can be used by company for its
further growth and development.

TASK 4
Discussing characteristics of effective leadership along with relevant model for justifying
analysis-
Leader is one of the most important factor in an organization for smooth working of
business. Help in establishing business at a large scale. Make efforts to make employees work
effectively in an organization. Tesco wants to develop their business at a large scale and leaders
help them to establish their business with developing smooth working in their organization. To
understand characteristics of leader in Tesco going to use different model.
Laissez faire leadership
In this model leaders make their choices based on their ideas and judgments. Leader help
to analyze task and assign duties to their employees on the basis of their skills and abilities
(Manuti and De Palma, 2016). This model of leadership help Tesco to take opportunities develop
overall environment in an organization
Characteristics Little guidance - Leaders give less guidance to their employees. Employees need to solve
their problems on their own which help them in their own development. Freedom to take decisions - All employees in organization are free to take decision. That
help in development of skills and abilities of employees. If employees are free to take
decision than they are familiar towards working of organization. It helps them to upgrade
themselves and develop their own abilities and improve effectiveness of work. Leaders provide tools and resources - Leaders of Tesco need to provide required tools
that help employees to work and resources that are required for overall development of
business. Employees are able to work according to requirement in an organization if they
have technology for fulfillment of tasks.
 Group members are expected to solve problem on their own - Leaders make their
employees free to take decision. And due to that guidance provided to them leaders aim
that employees are able to solve problems on their own (Noe and et.al., 2017).
Situational leadership
In this style leaders aim to influence employees to work effectively in development of
business. Leaders change their style to meet needs of organization.

Characteristics Supervising - Leaders of Tesco need to guide employees at each and every stage in an
organization so that they are able to work according to requirement of organization.
Leaders guide employees about achievement of goals. Coaching - When new technology is introduces in business. Tesco need to coach their
employees about working of new technology. They provide instructions to work with full
of their efficiency. Aim to motivate employees to take decisions. Taking part - Leaders need to advice their employees while they are working in
organization. It helps them to solve problems of employees. Increase participation of
employees in decision making of organization. Delegating - Leaders of Tesco when they work with a team with highly;y skilled
employees take less part in supervision employees. They are free to take important
decision to achieve goals of organization. Honesty - Leaders need to be fair and honest while treating each and every employees
(Di Fabio and Peiró, 2018). They need to treat employees according to requirement and
make them effective towards success of organization.
 Clear vision - Leader need to have a clear vision analyze progress in a team. That
analysis help them to set strategies for business to achieve goals.
CONCLUSION
From the above study it has been concluded that Human capital and leadership is very
essential to manage. The Human resource management is helpful for the company to retain and
motivate their employees for long term. Company can effectively and efficiently achieve their
goal & objective if they have skilled and talented employees. Motivated and encouraged
employees are always productive for the company and with the help of them company can gain
huge competitive advantage for company among its rivals. The company must use effective
leadership styles so that they can manage and control their employees.

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