Managing Human Capital and Leadership

This report titled 'Managing Human Resource and leadership' reviews the different HRM theories and analyzing the model used by the organization Air Malta for managing its human resource. It also analyzes the different human resource functions with respect to the initiatives taken by the organization. The study works on identifying the number of HRM software programmes available and its benefits and usefulness to the organization upon implementation. Also, this study helps in identifying the effective leadership skills that is required to deal with the problems faced by the organization. This report summarizes how human resources are managed by Air Malta and implements effective leadership skills.

Managing Human Capital
and Leadership

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LR....................................................................................................................................................1
HRM Models...............................................................................................................................1
HR Functions...............................................................................................................................3
HRM Software Programmes........................................................................................................8
Characteristics of Effective Leaders............................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Abstract
This report titled ' Managing Human Resource and leadership' reviews the different HRM
theories and analysing the model used by the organization Air Malta for managing its human
resource. It also analyses the different human resource functions with respect to the initiatives
taken by the organization. The study works on identifying the number of HRM software
programmes available and its benefits and usefulness to the organization upon implementation.
Also, this study helps in identifying the effective leadership skills that is required to deal with the
problems faced by the organization. This report summarizes how human resources are managed
by Air Malta and implements effective leadership skills.

INTRODUCTION
Management of the human capital and leadership, these are major practices of an
organization. Where the top-level management of the organization employ some strategies and
competencies at their work place for systematically manage human capital and leadership
aspects. Human capital is basically people and employees of the any company which are put
their efforts in the company's business environment. Without human capital, no company can
achieve its goals in specific time period. On other side, the leadership is also one of the major
aspects within the company which work for lead a team or a group of employees with their
innovative skills. Human capital management included some steps where the company needs to
follow them at their workplace, like; select, hire, train, motivate, etc. In the any company all
employees are mostly divided into different teams. In which each team always need a team
leader. The major functions of the leader are, Guide, Motivate, Order, Listen, etc. to the
employees which comes under their command. This is discusses the human capital and
leadership management of the Air Malta. It is one of the leading airline companies in the Malta,
headquarters in Luqa, Malta. The company was founded in 1973. The Air Malta is currently
running its operations mainly in North Africa, Europe and the Middle East.
LR
HRM Models
As illustrated by Henderson (2017), human Resource model helps in understanding the
different roles of HR and what value it adds in an organization. Human resource models serves
various human resource needs and a detailed description of three most important models are
carried out. Approaches that can be used are hard and soft approach.
The Harvard Model (Soft approach): According to Kukreja Sonia (2019),this model
consists of six components of HRM. Air Malta use this method in managing its human resource.
It starts with stakeholders’ interest, which includes, employees, management, government,
shareholders etc. Next is situational factors that influences the stakeholders interest such as
management philosophy, labour market, laws and societal values etc. As per Latemore, Steane
and Kramar (2020), both stakeholders interest and situational factors affects and influence HRM
policies which includes the core HRM functions that is, recruiting, selection, training etc. When

HRM policies are successfully implemented by Air Malta, it leads to the positive result or
outcome which can be in the form of retention, commitment, cost-effectiveness and congruence.
All these positive outcomes are beneficial which may be long termed or short termed, in the
performance of individuals, organizational effectiveness and societal well-being.
The 8-Box Model (Hard approach): As per the Bratton and Gold (2017), this model is
different from other models and it is proposed by Paul Boselie. This model uses hard HRM
approach. Air Malta is currently using this 8-box model for managing its human resources. The
first is external factors. These factors influence the work of HR. For instance, if there is shortage
of any skill then these factors will influence the ways HR will source, recruit and hire. Air Malta
has taken into consideration macro economic factors, labour market, competition, technology,
norms and values, trade unions, stakeholders and so on. These factors can impact the HR
practices significantly which in turn affect the overall organizational functioning. The
organizational culture and technology are the factors that influence the communication in HR.
Air Malta has aligned company's culture, history with the organizations objectives and has made
sure that it won't affect or influence the way employee communicate in the HR. HR strategy has
five parts. First is intended HR practices, it refers to intention of HR while recruiting, selecting,
training and other HR practices. Air Malta clearly states the intention in forming HR practices
related to recruitment, selection, training, compensation and other related practices. Second is
actual HR practices, these practices is based on the cooperation between HR and manager. After
this, Air Malta works in coordination and cooperation with manager for execution of practices as
there can be situation where manager decides to implement practices with different intention
which is much better but the actual practices can be different. Third is perceived HR practices, it
related to the employee's perception towards HR practices in the organization. If employees
perceived it in different way, not as intended by HR and manager then actual HR practices will
not be mirrored. Air Malta has made its practices clear to its employees so that employees can
understand it in the same way as intended by the HR. Fourth is human resource result, the
perceived human resource practices leads to results which can be increase in productivity,
quality, innovation, higher profits, better return on investments etc. Fifth is critical HR goals, all
the human resource result will lead to critical human resource goals. All these goals helps in
building and accomplishing business objectives like profitability, visibility and competitive

advantage. With successful execution of HR practices, Air Malta in its fourth and fifth step, has
achieved its goals. All the practices have resulted in a positive outcome which has turned out to
be an achievement of the ultimate business objectives. Air Malta has increased its productivity,
turnover, market value, profitability which has helped in taking competitive advantage. This
model has helped in keeping organizations employees satisfied and engaged, improved
employees’ performance, in bringing integrity and transparency in the organization by promoting
best practices for managing its human resource.
Value Chain Model: This method has the qualities of both soft and hard approach. This
is the best known model and it was proposed by Paauwe and Richardson in 1997. As per this
model, everything done in HR are bifurcated into two, which are, human resource management
activities and outcomes. HRM activities are the daily tasks carried out, including recruitment,
selection, training, compensation, organizational design etc. These are measured using human
resource metrics known as efficiency metrics. HRM activities are based on hard approach. HRM
outcomes are the results and objectives that organization tries to accomplish with human
resource management activities. All these activities carried out by HR is with a purpose to
achieve the given goals. These outcomes can be employee retention, better performance,
increasing competency, trust, employee engagement etc. HRM outcomes are the soft approach.
Air Malta uses both these approaches to manage its human resource efficiently as it takes care of
both the aspects. According to 5 Human Resources Models Every HR Practitioner Should Know.
(2019), when HRM activities and outcomes achieve the marks, it helps in achieving
organizational objectives such as profitability, increase in market share and market value,
enhancing quality, customer satisfaction, increasing turnover, productivity etc. Along with that it
also helps Air Malta in bringing transparency, fairness and moral value. So, overall performance
of the organization is increased.
HR Functions
There are many functions of the HR (Human Resource Department) in the Air Malta. As
per the view of Bratton and Gold (2017) the company operate it's all operations at the large scale.
In this case the company needs many employees in their business environment which help in run
all operations perfectly. In which there are mentioned some major functions of the HR below;

Recruitment & Selection: There are the Air Malta uses two types of recruitment and selection
functions called; internal and external. Both are systematically explained below;
 Internal: In the internal function, the HR department at the Air Malta work for hire
humans or employees for the company. The Air Malta needs many employees in their
business environment which cover all necessary activities for high profit gain in the
airline industry. In this case the top-level management order to the HR manager for hire
some skilful employees for the company. Then the HR manager responsible for follow
that order and need to start their recruitment and selection process. In which the
department firstly search those skilful employees in existing workforce. In this case if
some present employees fulfil necessary eligibilities for the vacant posts, then the
department offer them a new job role which is based on the vacant posts. By using this
function the Air Malta is able to save their lots of time and resources. This is the main
advantage of this process. In other side the disadvantage of this function is, it is reducing
the job opportunities for external people.
 External: According to the Fei (2018) in the external recruitment process the HR
department firstly need to post some advertisements on the various platforms, like,
newspaper, templates, posters, radio etc., for aware people about vacant posts in the
company. The main purpose of external recruitment function is to hire employees from
the external environment of the Air Malta. It also responsible to mention eligibility and
qualification needs of the company for those posts. Then the next step in the recruitment
process is to send call letters to the candidates which eligible for vacant posts. The main
purpose of this step is to invite candidates for personal interview or written exam. Then
after the HR need to select those candidates in the company which passed the personal
interview or exam round. In the selection process the HR basically hire those candidates
in the company which fulfil the all eligibilities of the vacant posts. The advantage of this
function is, with the help of external function the Air Malta is able to gain new and fresh
skilful workforce within their business environment. In other hand the disadvantage of
this function is, it is too much costly and time-consuming.
HRD (Human Resource Development): In the Air Malta the HRD function is conducted in
very proper way, because it is one of the major tasks for the top-level management of the

company. With the support of HRD function the management takes many actions towards
develop the current behaviour of the human resource within the company. It is very necessary,
because with the help of HRD function the Air Malta can easily achieve its business goals in the
airline industry of the Malta. Here is huge competition in the airline industry today. So, this is the
major responsibility of the HR department for develop human resource aspect of the company.
The HR manager always knows the value of human resource, because with this the company
able to gain high competitive advantage in the market. As illustrated by George, Schillebeeckx
and Liak (2018) for perfect development of the human resource of the company the HR manger
need to use some basic development strategies at their workplace. These strategies include
provide motivational seminars, conferences, and training sessions etc. to the employees. The
advantage of HRD is, with the help of this the employees are able to develop their work
efficiency. In other hand the disadvantage of this function is, the top-level management of the
Air Malta need to give additional focus on this by avoiding another major functions.
Motivation: Motivation is big part in the company's business environment. The Air Malta is
conducted this function for take effective work form their employees. With the help of HR
department of the Air Malta providing high motivation to the employees which improve their
workability at workplace. For always make motivated to the employees the Air Malta created a
healthy and happy work culture in the company's business environment where all employees able
to work happily. This type of work cultures also help in improve employees' skills. The company
invited some motivational speaker in the company which motivate all employees with their
energetic and effective word delivery. It also runs some fun activities at the workplace which
always make motivated to the employees for work hard. The advantage of motivation is, it is
provide effective workforce to the company. The disadvantage of this function is, it is some
costly for the company, because motivational speakers are taking huge fees for seminars.
Performance: As per the view of Cleary and Quinn (2016) performance of the employees give
great contribution the overall growth of the company. So, here is another function of the HR is to
maintain the performance of the all employees. The Air Malta sets some performance measures
under this performance function. The main purpose behind conduction of performance function
is to improve their employees over all performance at workplace. Here is the advantage of this

function is, it is helpful in improve company's performance in the airline industry. In other side
the disadvantage of this function is, it is very time-consuming for the Air Malta.
Training: Air Malta also conducted the training function for improve their employees work
efficiency. The company knows highly trained employees always give the best input in the
business operations in the comparison of untrained employees. So, here is the training is also
important part in the Air Malta. Other side the Air Malta is also the part of airline industry, in
this case it highly needed the fully trained employees in the company for avoid many of the
issues related to the airline industry. According to the Lock (2017). Prajogo, D. I. and Oke, A.,
2016 The company Air Malta provides some training sessions to their employees in the specific
time periods in a year. The main role of training is to make up to date employees with the latest
and modern ways of workability. The company also contact to some business trainers for invite
them in the company. These trainers share their useful knowledge with the employees which
improve their work efficiency in the Air Malta. The main advantage of this function is, with the
help of training function the Air Malta some training sessions to the all employees for
systematically maintain their performance at workplace. The disadvantage of this function is, it
is also very costly for the company.
Relationship: The Air Malta also work for build effective relationship between the management
and the employees through its relationship function. The top-level management completely
understand a good relationship is necessary in the company's business environment for
understand each. With the effective relationship the company's all activities become more
productive. Suppose in the Air Malta, here is great relationship between employer and
employees. In this case the top-level management of the company support and guide their
medium and low-level management at workplace. So, here is this also a major function of the Air
Malta for maintain a healthy relationship between them. As illustrated by the Meyer and Xin
(2018) there are many ways for any the company to build effective relations within business
environment. For example; organize meetings, fun events, dinner, play, etc. for the management
and employees. Where both parties come together and interact with each other. Respect is the big
factor in the relationship. In this case the Air Malta need to create that environment in the
company where all give respect to each other. This step of the HR department put positive
impression on the employees, because with this they feel valued by the top-level management.

Then they always try to put their great efforts at workplace, and this will contribute in the overall
growth of the company. The advantage of this function is, with the help of this function the
company's work environment become more productive. In other side the disadvantage of this
function is, it is very tough task for the Air Malta to convenience employee for build good
relationship with other employee.
Rewards: In the Air Malta's work environment there are different employees work together
which comes from different background. In which some employees always have high work
efficiency than others. In this situation the Air Malta is giving rewards to those employees which
are putting great efforts in the company's operations. It is necessary for always make motivate
them. It is also necessary for motivate to other employees also for work hard in the company.
Most of the businesses are giving rewards to their employees for improve their efficiency.
Rewards include such elements like; prises, appreciation, promotion, etc. The advantage of this
function is, the Air Malta is able to improve its business performance also in the airline industry.
The disadvantage of this function is, when the company give rewards to only selected
employees, the other employees not feel well.
Health and Safety: As per the view of Hitt, Xu and Carnes (2016) here is the Air Malta created
a safe work environment for their all employees. In other hand health responsibility also taken by
the company. Provide better health and safety is also major function of the Air Malta, because
the employees are most important resources for the company which are day and night putting
their high efforts for achieve its decided goals in the market. In the health aspect the Air Malta
provides health insurance facility to their employees, because when they will feel sick, then they
can easily take necessary treatment for recover with the help of insurance. The major advantage
of this function is, with this the company able to create a familiar environment for their
employees. The disadvantage of this function is, when the company provide free insurance to the
employees. Then it becomes too costly for the company.
Recommendation
The HR department of the Air Malta always need to improve or develop their work
strategies which it uses in their all functions. For example: in the recruitment and selection
function the HR department still following the traditional strategies for hire employees in the
company. The Air Malta employed many strategies in its recruitment function. The HR

department also need to cover the market research for analyse what kind of tools and
terminologies are uses by the competitors in their human resource development programmes.
The top-level management at the Air Malta need to hire some highly qualified people which
make some extra ordinary business strategies for the company. By using these strategies, the
company can gain huge competitive advantage in the airline industry. The HR department
specially need to focus on motivation function, because motivated employees are like a blood for
the company. In which when employees become motivated, then they can high contribution in
the company's overall growth.
HRM Software Programmes
There are many software programmes are available for the HR department of the Air
Malta. According to the Okeke (2016) these software programmes are designed by the software
companies for the purpose of help the human resource department of the any company. With the
help of this software programmes the HR department at the Air Malta easily able to operate it's
all functions in systematic manner. There are mentioned some major software programmes
below which the HR department necessarily need to use in their workplace;
BambooHR: It is a human resource management software which provide facility of ATS
(Applicant Tracking), e-signatures, on-boarding tools, performance management, and time off
tracking, many of the successful companies are already uses this software in their particular
business environments. In this case the HR department of the Air Malta also need to take
advantages from it. For example; this software indicates the performance structure of the all
employees. In this case it is helpful for the company to analyse the strength of their workforce.
BizMerlin: BizMerlin also good HR software programme which the HR department at
Air Malta need to use in their operations. As illustrated by the Prajogo and Oke (2016) this
software provides facility of the employee records, e-signatures, on-boarding platform,
performance management, ATS, Competency management, feedback, training and reporting, etc.
It has many other features also which help to the HR department to properly cover their all
functions in the specific time period. It's employee record feature is specially very helpful for the
businesses, because by using this the businesses can easily manage all important records of their
employees. So, the Air Malta also able to use this in their HR department for systematically run
their all functions.

HROne: It is the simplest software for the HR department. Their features are too easy to
understand. HROne also provide that all facilities which previous software programmes are
provided, but in simple manner. The major specification of this software is, its feedback feature.
As per the view of Gage and Smith (2016) with this feature the HR department able to improve
many areas which comes under their functions. It also provides another plan maker feature. So it
can help to the department for prepare specific plan for cover it's all functions in proper channel.
In these all software programmes the BizMerlin software is very beneficial for the Air
Malta. The main reason behind this statement is, this software programme provides more
facilities than rest software programmes. It has many additional features which other
programmes are not providing. The HR department of the company necessarily need to
implement it in their operations for reduce important time and cost. According to the Sousa and
Rocha (2019) with its employee record, e-signatures, and performance management features the
department perfectly manage their human capital in own business environment. With this the
company also able to improve the work performance of the employees.
Characteristics of Effective Leaders
Every business wants effective leaders in their business environment, because an
effective leader is always passionate for achieve its target in specific time period. An effective
team leader always success in team building. People or employees which work in that type of
leaders, they always feel valued at their workplace. As illustrated by Chetiya and Sharma (2016)
an effective leader always think about benefits for whole team, not for themselves. There are
discusses some major characteristics of effective leaders below;
Punctual: Effective leaders are always followed the strategies of perfect time
management. They are always punctual in nature. Effective leaders are always following specific
schedule for cover all activities which they necessarily needed to covered. They also teach the
punctuality lesson to their employees also which comes under their command. With the company
able to remove their issue related to time-management.
Innovative: Effective leader are also too good at innovation aspect. They give specific
time for innovate new things, like; time management strategies, team building strategies, etc.
With their innovation nature they always find some smart ways for cover any task. As per the
view of Al Rahbi, Khalid and Khan (2017) the innovation skills are very necessary for the job

role of the leader. With innovation skills effective leaders are handle each situation perfectly at
their workplace. On the basis of this characteristic of effective leader, their teams are always runs
activities in productive way. The company able to avoid high competition issue with help of
innovation.
Problem Solver: The company face many problems and challenges in their business
environment in the airline industry. In this case leaders which has great problem solving skills
are help to the company by solve those problems. Each leader need to develop or improve their
problem solving skills for face all types of problems and challenges at workplace.
Positive Attitude: Positive attitude is also big characteristic of effective leaders. In
which effective leaders always take decisions and actions on the basis of their positive attitude.
They always follow the positivity at their workplace for run all operations in productive way. In
case of Air Malta, their leaders need to maintain positive attitude in company's all operations. As
illustrated by the Cunningham, Seaman and McGuire (2016) positive attitude of the leader
always put their team on the progressive path. That leader teaches “Be Positive” lesson to their
team members as well. With the help of positive attitude the company able to remove negativity
issue from workplace.
Professional Excellence: Effective leaders also has high professional excellence. Here is
the first recruitment for become an effective leader is gain high professional excellence. This
characteristic of leaders is based on the situational leadership model. In the Air Malta also
leaders need to gain this excellence at the high level for reduce many errors which a common
team faces in their activities. It is very necessary also for cover all tasks within the team in
productive manner. This characteristic helpful in the making of healthy work culture in the
teamwork. With the help of professional excellence the company is able to remove issue related
to the poor teamwork.
Effective Decision Maker: As per the view of Puni, Agyemang and Asamoah, 2016
effective leaders are mostly taken very effective decisions at their workplace. Each decision
which taken by the leader needs to be effective and productive in nature. This is basically a skill
called 'Decision-Making'. In the business environment of the Air Malta, leaders need to improve
their decision-making skills for take effective decisions in the team work. It is important because
in the any teamwork a leader faces many situations where it needs to take some important

decisions. In this case the with the help of decision-making skills leaders at Air Malta are able to
take some effective decisions for systematically handle those situations in the teamwork. With
the help of effective decision-making the company is able to avoid issue related to the
uncertainty in business environment.
CONCLUSION
It can be concluded that here is included major models of the HRM which are very
helpful in the HR practices. There are also mentioned some main functions of the human
resource department of the company. The HR manager need to properly supervise these all
function for gain productive results from activities of the functions. Here is the HR department of
the company need to implement some new HR strategies at their workplace for cover all
functions with more efficiency. There are included three major HRM software programmes
which are very helpful if the HR department use them in their work environment. In these all
software programmes the BizMerlin is most favourable and beneficial software for the Air
Malta's HR practices. It is providing great features which help in cover all major functions of the
human resource department. There are also mentioned major characteristics of effective leaders.
In the Air Malta, leaders need to improve their leadership skills for work with more efficiency in
the teamwork. Effective leadership also needed in the Air Malta for gain high competitive
advantage in the airline industry.

REFERENCES
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Kukreja Sonia, 2019. Human Resource Management Models. [Online]. Available
Through:<https://www.managementstudyhq.com/hrm-models.html>.