Leadership and Human Capital Management

This assignment delves into the realms of leadership and human resource management, examining various leadership models such as Transformational Leadership, Authentic Leadership, and Entrepreneurial Leadership. It also explores human capital management, including its role in venture capital markets and its impact on organizational performance. The assignment provides a comprehensive overview of key concepts, theories, and applications in leadership and HRM, making it an essential resource for students seeking to understand these critical aspects of business and management.

MANAGING
HUMAN CAPITAL
AND LEADERSHIP

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION ..........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
TASK 1............................................................................................................................................4
Relevant model and approaches of the business organisation to manage its human resources. .4
TASK 2............................................................................................................................................6
Critical analysis of selection and recruitment in link to strategic human resource initiatives.6
TASK 3............................................................................................................................................8
Discuss different approaches to HRD and their area for improvement..................................8
TASK 4 ...........................................................................................................................................9
Classical theories of Motivation ............................................................................................9
TASK 4..........................................................................................................................................12
Recommendation to the business discuss the characteristics of effective leaders...............12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

ABSTRACT
This report will discuss about management and maintenance of capital and leadership
within a firm along with the role of human resource manager. These managers have duty to
implement various strategies and policies due to which they can control whole activities of firm
in an effective manner. There are a large number of approaches and models which can be used
by HR manager in future in order to getting growth and success of firm. As TATA motors has a
good brand image and huge market presence due to which, they attracts a large number of
customers in marketplace.

INTRODUCTION
Managing human capital is an essential part of a firm. Management of human capital is
defined as a set of activities which includes recruiting, managing and optimizing human
resources with in a firm. In other words it is termed as an approach of employee staffing in
which employees are considered as assets whose present value may be measured and future
value may increased through investment. On the other hand, leadership is an ability of
individual who provides guidance and supports to its team members for achieving the preset
targets of the firm. The chosen organisation for this assignment is TATA motors. Which is an
Indian MNC in automotive industry with headquarters in Mumbai. This report will discuss about
the approaches of Human resource along with the recruitment and selection in human resource.
Approach of Human resource department and classical theories of motivation will also covers in
this report.
LITERATURE REVIEW
Whole report is divided in five parts through which approaches and models of HRM can
be better understood. This report will defines the structure of the organisation which have to
follow by the firm in order to motivating their staff members due to which they will perform
their business functions in proper manner.
TASK 1
Relevant model and approaches of the business organisation to manage its human resources
TATA is an Indian MNC which engages in automotive industry since 1945. The
company is providing their services in various countries such as Argentina, South Africa,
Thailand etc. across the world. Company have employed more than 80000 employees who are
providing their services in such nations (Alpkan and et. al., 2010). In TATA motors their
management performs all kinds of HR services but through taking help of this they will be get
competitive advantage in market place. From present time, management of TATA motors have
to make suitable strategies and policies due to which, the firm will easily sustained in the
marketplace and beat the competition in effective manner. There are various models and
approaches which can be adopted by the HR manager of TATA for getting huge profitability in
the marketplace.

Illustration 1: Growth in Market share of TATA
Source – Growth in market share of TATA Motors, 2018
Interpretation – It has been clearly identified from the above graph that the market share of
TATA motors are rapidly growing which is a positive sign for the Future.
Models and approaches:
The main objective of TATA motors is to provide better quality products to their
customers through which, they have made their good brand image in customer's mind. In a firm,
HR manager have to perform various roles and responsibilities such as proper decision making
and effective strategic making which will helpful in performing business operations with
smoothness. HR manager have to measure all activities along with performance level of their
employees due to which, organisation will not suffers with any difficulty and issue in future. All
strategies and policies are essential for evaluating and improving the performance level of
employees.
There are three types of HR model which can be adopted by TATA motors for
performing their business functions in effective manner:

Controlled based model- According to Akbarnia and Mundis (2012), It is an important
or essential model of Human Resource which can be used by the HR manager of TATA motors.
With the help of this, they will easily achieve a huge success and profitability in the marketplace.
In addition to this, it is a model in which HR manager have to evaluate all major activities which
are essential for strategy making. There are several elements such as individuals, technical
advancement, business operations etc. are based on business operations and functions. It is also
useful for the management in evaluating the issues and conflicts of the firm. It also defines the
structure and HR strategies which will be helpful in controlling the major functions of firm in
effective manner. Management of TATA motors have to analyse the behaviour of their
employees so that, they can identify the weaknesses and provide support to them for improving
their inefficiency.
Resource based model- According to Chen and Powell, (2012) It is an approach which
depends on reward for effort techniques and also guides the managers in caring of employees as
a precious asset of firm. This model is very good and effective because it provides accurate
results of future to the management. It also assist the employees for performing their duties in
effective manner. For example if a worker is providing its maximum effort in achievement of
organisational goals so, it has an opportunity to gain a better place in the firm. This approach is
used for identifying the abilities and competencies of employees through which management can
think about their better future. There are resources which can be divided in two parts such as
intangible (promotion, reputation) and tangible (cash, human, technologies). Therefore,
management have to allocate such resources which can be used by them for better future.
Integrated model- It is an approach which is considered as combination of all above
models. The main objective of this model is to analyse the two dimensions of HR strategies such
as acquisition and development or locus of control. Furthermore, the first factor is described
about the strategies and policies of the management which are made for developing the human
capital of firm so as to face external factors of environment. Whereas, the other factor is related
with the degree on which the HR strategies are implemented for managing and maintaining the
employees so they can improve their work performance in effective manner (Human Resource
Management Models, 2018).

The management of TATA motors have to use Integrated model in future period because
with the help of this the efficiencies and skills of their employees will be increased and they will
able in facing the challenges in firm.
TASK 2
Critical analysis of selection and recruitment in link to strategic human resource initiatives.
According to Cohen, (2011) In order to manage and maintain the workforce in effective
manner, HR manager have to recruit those employees who have specific abilities and skills for
handling all the work which are assigned to them. Therefore, HR manager have obligations to
recruit those employees who are fit as per expectations of firm. Furthermore, the employees who
are working in HR department have responsibilities to find skilled and experienced candidates in
recruitment process which will helpful in achieving the goals and objectives of firm. On the other
hand, if HR manager wants to motivate its existing employees, they can use internal method of
recruitment.
In the context of TATA motors, HR manager have to adopt all tools and techniques in
recruitment process through which, they will hire suitable candidates for their firm. TATA
motors using online websites like shine.com, Naukri.Com for finding best candidates for them.
With the help of these websites, candidates who are eligible for vacant job can send their resume
to the HR manager directly due to which HR manager will able in selecting the suitable
candidates for vacant job. Through online method, the time and cost will be saved of the firm
and they would get more appropriate employees for their firm. The whole process of online
recruitment is given as under:
Listing jobs on Organisation websites – It is the first phase of this process in which
firm have to register their job descriptions for vacant jobs on various websites such as
Shine.com, Naukri. Com. After this, the candidates will analyse the job with their eligibility and
send their resume if they are eligible for the job.
Posting jobs online – In this phase, firm can use other online options such as linked.in,
Monster. Com for posting their job description. With the help of this, firm will find more
deserving candidates for their firm.
Using Linkedin- TATA motors has selected linkedin for posting their job description
furthermore, this website is majorly used by various companies for hiring candidates because this

website gave surety to the candidates in terms of fraud and misuse of their information. After
posting job descriptions on website applicants who fulfils the criteria regarding job can apply for
the vacant job.
Social recruitment- In current scenario, it is a large platform through which organisation
can select best candidates for them. In the context of TATA motors, they can also use this
method for getting talented and efficient employees.
Job applicant procedure- In this part, recruitment and selection process will be started.
Firstly, the applications will be analysed and measured by the HR manager then they will short-
listing the candidates and inviting them for a general aptitude test. After this, the candidates who
will pass the test will be invited for final interview.
Interview process- In this part, the candidates who are invited by the HR manager for
interview have to answer some questions which will be asked by the interviewer. With the help
of this, HR manager will able in measuring the talent and ability of the candidates (Zarutskie,
2010). After evaluation, the job letter will be given to the employees who are selected by the HR
manager.
Hiring process- In this phase, HR manager have responsibility to verifying background,
qualification details, credit score of the candidates who are selected by the HR manager.
Recommendation
Employee motivation- In TATA motors, HR manager have to motivate their staff
members so they will perform their duties in an organised manner due to which firm will achieve
their goals and objectives in given time period. For promoting the business operations and
functions, HR manager have to maintain a proper communication structure so that, they will
easily communicate their informations to each employees of firm in effective manner. With the
help of this, the HR manager will able in encouraging and motivating their staff members due to
which firm will easily get growth and sustainability in marketplace.
Providing training and development program – The managers of TATA motors have
to provide proper training and development programmes to their new employees. Through this,
the skills and efficiencies will be increased due to which company have no requirement of
external recruitment. If the staff members will be efficient and capable they will perform their
duties in more better manner.

TASK 3
Discuss different approaches to HRD and their area for improvement
According to Gupta and Huang, (2011) Human Resource Department is an essential part
of the organisation which have responsibility of managing and maintaining the performance of
the staff members. With the help of this, they can better identifying the weaknesses of their
employees and for improvement they can provide training programmes to them. It provides
assistance to employees in developing their skills and abilities due to which they will perform
their duties in more effective manner. There are a large number of activities which are included
in HRD like training of employees, career development, evaluation of performance level etc.
Source- Revenue of TATA motors, 2018
Interpretation – From the above graph it has been clearly identified that the TATA motors
has earned an revenue of 45.2 U.S$ dollar in the year of 2018.
TATA motors engages in automotive industry where customers fulfils their needs and
requirements as per their demand and preferences. But it can be possible when employees will
Illustration 2: Revenue of TATA motors, 2018

understand their duties and providing better services to their customers. At present time an
organisation invests a huge amount for fulfil the needs and requirement of employees in order to
achieving the goals and objectives in appropriate manner (Buller, 2012). HR manager can adopt
the strategic framework approach because it helps them in getting efficient employees due to
which, firm will achieve their goals and objectives in limited time period. The approach is briefly
explained as under:
Strategic HR framework approach- This approach was given by Ulrich and Lake in
1990. Business strategy, capabilities of organisation and HRD practices are essential elements of
this approach. The main purpose behind this approach is to build capabilities in the firm due to
which organisation can achieve their goals in predetermined time period. It provides a large
number of practices to HR manager through which they can focus on the profitability and
productivity of the staff members and provide them training to improve their skills and
efficiencies. It involves the practices and program of Human resource which facilitates the
organisation to achieving their objectives. This approach translates the objectives of firm with
using proper management systems. The main purpose behind this approach is to managing the
people without boundaries so that, the loyalty will be increased in the employees and they
provide maximum contribution in their assigned tasks.
This approach is based on the vision and mission of firm therefore the adoption of this
approach by the firms may be vary. It may be also different because the objectives and goals of
the firms are also varied in nature. Therefore, this is an approach which facilitate the managers in
order to take suitable and appropriate decisions for the betterment of firm. Through this approach
the managers can effective carry out their operations and functions in more effective manner.
For further improvements
Managing the entry and exit process- To make some improvements in this approach,
HR manager will evaluate the performance level of the employees and employees who are not
performing well will be terminated by the firm. It will helpful in formulating efficient group of
employees due to which firm will get profitability and revenue in future.
Managing the growth and development process- For making better improvements in
future, HR manager have to define the vision and objectives of firm to their employees due to
which they will get aware with their roles and responsibilities and perform their tasks in effective
manner due to which firm will easily get competitive advantage in marketplace (Gates, 2010).

Managing the reward and recognition process- In order to getting improvement in this
approach, HR manager of TATA motors can recognise the best performer of the firm and
provide them rewards. Lower performer or efficient performer who have ability to perform well
they will get training sessions from the organisation which will improve their inefficiencies.
Managing the overall organisation climate – For improving the approach, HR manager
have to know their duties and guide their employees for performing well on given tasks. It will
increase the overall profitability of firm.
TASK 4
Classical theories of Motivation
According to Latham, (2012) Employees are the essential part of a firm because without
their contribution firm cannot achieve their goals and objectives. Without employees firm can
not provide products with quality to their customers therefore, it is very essential to the HR
manager to provide support and guidance to their staff members due to which they will perform
their activities in well manner. In the context of TATA motors, their HR manager have to adopt
motivational theories through which they will motivate and encourage their employees. There
are various motivational theories which are briefly explained as follows:
Maslow theory of need- This is an essential theory which is connected with the
requirement of employees in a firm. This theory is divided in five stages like social, safety,
physiological, self actualisation, and self esteem needs (Tran, 2014). All these needs are
important because it motivate the employees for performing their duties in well manner.
Furthermore, Physiological needs can be fulfilled by the HR manager of TATA motors as the
employees are working in their firm so they can provide fair remuneration of their work due to
which their common and most important need will fulfils. They can also provide job security to
their employees due to which their safety and security needs will also consummated and their
loyalty will also increased towards firm.
Equity theory- This theory states that equality must be provided to the employees of the
organisation. The employees feel motivated when they are treated equal in workplace. Through
this equality, the employees can work with the required efficiency and they work in better
manner. When employees will feels motivated they performs better on the given task due to
which, the firm will achieve their objectives in allotted time period (Gruber, 2012). With taking

help of this theory, the chances of conflicts and issues will be decreased and Manager will make
better relation with their employees due to which a healthy environment will be created in the
firm.
Illustration 3: Theory X and Theory Y
Source: Assumptions of Theory X and Theory Y
Theory X and Theory Y – This theory is divided in two parts such as positive and negative
which is based on opinions and views of staff members. The X part is related with negative and
Y is related with positive. According to this theory, the X factors are related with the employees
who are not performing their duties in well manner and not providing their any suggestion for
improvement. In other words, the employees who are related with X part of theory, they are not
interested with any activities of the firm. Therefore, HR manager have to provide better training
to such type or employees due to which their ability and efficiencies will be increased and they
will perform their functions in effective manner. On the other hand, the theory Y is related with
those employees whose working level is very high and they performs their duties in most
effective way. So, these type of employees have less requirement of training in the firm. As their
loyalty level towards firm is high therefore, their guidance can be taken by the HR manager for
making decisions in future.
Hawthorne effect – It is a motivational theory which is given by Henry A. Landsberger
in the year of 1950. this theory can be used by the HR manager of TATA motors for motivating
their staff members. With the help of this theory, manager can evaluate the performance level of

their employees and providing feedback for improving. Due to which the motivation level of
employees will be increases. HR manager can uses different methods for motivating their staff
members like financial and non financial (Gupta, 2011). In financial, HR manager can motivate
their employees with providing them incentives on their extra work whereas in non financials
they can provide promotion to their employees. When employees will get this kind of rewards it
will directly impact on their working nature due to which their performance level will be
increases and they performs their duties in highly effective manner. There are a large number of
aspects which are included in this theory such as socialise, recognition, group activity,
psychological contracts etc. All these parts can be used by the HR manager of TATA motors for
getting more effective outcomes.
Proposing Hybrid theory for TATA motors
It is a combination of all theories which assists the managers of TATA motors in
encouraging their employees at a huge workplace. There are a large number of employees who
are working in the firm so the managers can adopt various motivational theories due to which
their staff members will be motivated and perform their assigned tasks in more effective manner.
In the context of TATA motors, the firm is providing their services in automotive industry so
they needs to provide more effective services to their customers which will enhance the revenue
and profitability of firm. In order to getting competitive advantage, firm have to provide better
training to their employees through which employees will know about their roles and
responsibilities and they will provide more effective services to their customers. It will also assist
them in attracting a large number of customers towards their offerings. With taking support of
this model, firm can achieve growth and success in a short time period.
TASK 4
Recommendation to the business discuss the characteristics of effective leaders
The leaders are an essential part of firm therefore they have obligation to provide guide
and support to their team members. For performing their duties in well manner, they have to
understand their roles and responsibilities due to which their capabilities will be increased and
organisation will easily achieve their preset objectives in short time period. There are a large
number of characteristics of leaders which are briefly explained as under:

Personable- In this type of characteristics, leaders needs to be open minded in order to
effectively communicate with their employees. Through which the employees will share their
problems and issues directly to leaders without any hesitation. If they will treat their employees
in equal manner then they can easily resolve the major issues and conflicts of employees.
Visionary – A leader has responsibility to set targets for developing the organisation for
this they have to guide their team members so that the employees will perform their task in more
effective manner. Vision is an important thing for setting the targets because without this, leaders
can not encourage their team members in right directions. With the help of vision, leaders can
motivate their employees in proper direction and team members will easily understand their roles
and responsibilities due to which organisation will easily achieve better outcomes in future.
Motivational- Without motivation employees can not perform their duties in an effective
manner therefore, leaders have to motivate their team members due to which organisation will
attain better results in future (Harris, 2012). For example – If an organisation wants to achieve
their targets in limited time period, they have to provide better training to their employees due to
which their capabilities and skills will be improved and they will perform well on the given task.
With the help of motivational characteristic, Leaders can encourage their team members which
will leads the success to firm.
Models of leadership
There are a large number of leadership models which can be adopted by TATA motors
because it will helpful for them in performing their operational activities in more better way.
With the help of this models, Managers can motivate their staff members due to which their
capabilities and skills will be enhanced. Which will leads the firm towards profitability and huge
revenue. Some of the leadership models are explained as under:
Situational leadership model – According to this model, there is no theory of leadership
in which leader can implement their decisions in effective manner. A leader have various roles
and responsibilities so they have to make decisions as per the current situations of the firm . This
model directs leaders to take decisions on their own according to the situations arises at
workplace.
Democracy leadership model- In this model, Leaders have to provide freedom to their
team members for performing their assigned task with using their own ideas and thoughts. The
leaders has obligation to not interfering during the task. With the help of this model, leaders will

identify the capabilities of the employees and team members will also finish their task with using
innovative and effective way. This model will maximises the satisfaction level of employees due
to which they will sustain in the firm for a long time period.
Managers of TATA motors can adopt democracy leadership model because it will
automatically increases the capability and efficiencies of their employees. Through which,
managers can take support from them in decision making and employees will finish their
assigned task in more effective manner.

CONCLUSION
It has been concluded from the above report that HRM plays an essential role in TATA
motors because it has obligations to perform its functions in effective manner so that the
organisation can easily achieve competitive advantage in marketplace. For providing better
candidates to the firm, they have duty to examine the ability, skills and communication level of
the applicants in recruitment process through which, they can make an efficient team of
employees in the firm. Leaders are also important because if they will not guide their team
members in right way it will be difficult for company to achieve growth and success in the
marketplace therefore, leaders have to support and guide their team members so that their
capabilities and efficiencies will be improved. With the help of this, employees will understand
their duties and responsibilities in well manner and provide better quality products to their
customers.

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