Human Capital Management and Performance Implications

This assignment delves into the connection between Human Resource Management (HRM) and company performance, using a meta-analysis of long-term studies. It also touches on the significance of innovation practice in small to medium-sized enterprises (SMEs) and how firms benefit from organizational status in the market for human capital.

Managing human capital and
leadership

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Analysing the approach of the organisation to the management of its human resource........1
TASK 2...........................................................................................................................................4
Critical evaluation of recruitment and selection and recommendations................................4
TASK 3............................................................................................................................................7
Approaches to Human resource approaches to Human resource Development.....................7
TASK 4............................................................................................................................................8
Theories of motivation...........................................................................................................8
Proposal of hybrid theory.......................................................................................................9
Characteristics of effective leader........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Management of Human capital in organisation is considered as an important activity that
is being performed by the managers in order to retain qualified employees at workplace and
increasing their efficiencies by providing opportunities of training and development. For the
achievement of success in business operations, It is essential is for enterprise to use effective
recruitment and selection process through which they will be able to attract and hire employees
with effective skills, knowledge and experiences to perform the critical effectively at workplace.
In present reports, analysis of company Nando's is done which is eating house concatenation that
is originated from the south Africa as its Human resource management consultant. At Nando ‘s,
the belief is the people, that is, the Nandocas, are the 1s who make the difference. HR Director of
Nando ‘s Julia Rosamond has this to state: “ people want to value the administration they work
for and be valued in return. ” Further, this report covers different approaches used by
organisation to manage its human resource. Evaluation of effectiveness of recruitment and
selection in relations to the strategies initiative taken by Nando's for development of its human
resource is also taken in to consideration. Various important approaches used for human resource
development in Nando's is also mentioned along with the critical evaluation of theories of
motivation used by managers.
TASK 1
Analysing the approach of the organisation to the management of its human resource
Human resource management is considered as the strategic approach to managing people
at workplace. It emphasizes on enhancing knowledge, building skills, increasing capabilities, in
order to manage and influence people to work within an enterprise. The advantages of a human
resource management system is that it assist organisation in increasing working efficiency,
productivity, reducing cycle time, reducing cost etc. (Payne and Isaacs, 2017)
The guest model is the effective and appropriate model of human resource management.
This framework states that human resource manager in an organisation has developed some
strategies that requires particular activities to be conducted in order to implement plans. These
strategies or plans assists human resources' manager in managing people at workplace and
enables firm to achieve its goals as well as objectives. The strategies developed by human
resource manager has direct effect on individual behaviour and performance within an enterprise.
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These plans or strategies are developed by human resource manager in order to make
improvement in policies, procedures and practices. It assists human resource management team
in motivating people to improve their performance and increase their participation in various
business activities.
Guest model focus on logical sequence of major six component these are strategies,
practices, behaviour, outcome, financial and performance outcomes. The success and growth of
firm is totally dependent on workers' performance. The policies as well as strategies developed
by human resource team has great impact on employees' behaviour at workplace. Effective
policies and procedures allows employees to increase their commitment. The effective human
resource practices encourages workers to improve their performance, enhance the quality of
work and develop flexibility in them. Human team in the cited Venture should ensure that the
strategic objectives are aligned with business goals.
The another model is Warwick model focuses mainly on five variables these are macro
environmental variables, micro environmental constituent, organisational strategy, human
resource management content and context. The Warwick model is more concerned about the
business environment in which the human resources practices are executed. The unique
characteristics of this framework is that it identifies and classifies important environmental
influences on human resource management. This model is adopted by cited venture to identify
the interrelationship between external as well as internal environment variables. It is more
concerned with analysing the way these factors impact or influence human resource practices,
policies, strategies and plans. This framework also is used for examining the way human
resource team deals with change at the workplace. The companies in which the human resource
manager have the potential to accomplish alignment between the external and internal contexts
has the chance to achieve success and foster growth (Patel, Guedes and Pearce,2017)
The objective of human resource manager is to increase net income and to establish more
branches of eating house. Culture of cited organisation is very effective as it allows workers to
feel pride, passionate. Effective working Environment allows employees to feel safe and secure
at workplace. This activity has enabled cited venture to deliver effective as well as quality
services to clients in professional manner. Apparently, there are specific Human Resource
activities implemented which by and large include enrolling, preparation and rewarding. The role
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of human resource manager in cited business venture is to ensure that workers are satisfied. As
this activity will help enterprise in ensuring that all the workers in an organisation are committed
to their works, company norms. This strategy has supported enterprise in expanding their core
business activities and fostering growth. The various approaches of human resource management
are-
Recruitment-The Nando ‘s is committed to its equal chances policy. As compared to other
business entity where the human resource manage identifies the mixture in people, philosophy
and business objectives. Human resource manager in cited venture ensures the reliability and
accuracy of information so that they could hire talented and skilled employees. The cited
organisation follows appropriate procedures and follow the standards in order to recruit
employees (Rees and Smith, eds. 2017)
Training and development-The resource oriented human resource management approach is
adopted by cited business venture. As it has assisted organisation in generating the possibility of
work-related acquisition and the mobilization of employee through acquisition schemes. The
career development programme conducted by the human resource manager in Nan do company
has enables employee to identify their own potential and abilities. It has provided workers a
chance to develop various skills and abilities which can be used by them for performing various
activities at workplace.
Wages- Changeless competitor advantage approach of human resource management has been
adopted by cited firm. This framework or policy states that the internal management team of
business should focus on procedures, policies, practices and systems which anticipated at uniting
the competences, talented performance of an individual or group and balance pecuniary and
non-monetary wages systems (Verma, Bharadwaj and Nanda, 2017)
In addition, to this the various methods that can be used by human resource management
team in order to measure the performance of employee within an enterprise are 360 degree
feedback, balance scorecard, Etc. The performance management approach that has been adopted
by the cited Venture is 360 degree feedback. In this procedure the feedback is obtained by the
human resources' manager from the subordinate, co-workers of workers. The human resource
manager in citied venture can ask employees to facilitate self evaluation. As this activity will
enable workers to identify their own performance (Payne and Isaacs, 2017)
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TASK 2
Critical evaluation of recruitment and selection and recommendations.
Recruitment is important process that is to accomplish by human resource department of
organisations implies to the identification and hiring of the best along with most qualified
candidate the for the job opining, in timely and cost effective manner. It can also be defined the
process of searching for the prospectives employees and stimulating and encouraging them to
apply for the job position (Hollenbeck and Jamieson, 2015). Selection is also considered as
process that starts after the completion recruitments and its implies the screening of those
applicants which are recruited by the management in order to appoint qualified personnel that
provide major supports to organisation for accomplishment of objectives. From the effective
analysis, it is identified that administration of NANDOS aims at following an effective process
of recruitment and selection through which they will be able to get qualified employees at vacant
position. Critical analysis of case study has determined that company is establishing every bit
many as 30 eating houses each 12 months that means to have of going enlisting of Nando's.
They have kept a major balance between internal and external sources of recruitment. Human
resource in company is accountable towards the managers and they aim at improvement of
growth of trade name, opportunities for its employees of growth in future etc.
From the effective analysis, there is effective recruitment and selection process has been
discussed that needs to be used by management of Nando's for the hiring of qualified employees
at workplace.
 Recruitment planning: It is the initial stage at which the management of Nandos needs
to analyse and determine the vacant position. It also includes the of management of to
design and develop a specific job description and its nature, experience, qualifications
and skills which are required to perform the task for the job effectively (Seidu and Otaye,
2016). Management of cited company needs to develop structure plan of recruitment
under which they need to attract the potential candidatures at the job from the pool of
applicants. As per the case study, Human resources' management is effective business
approach that needs to be taken in to consideration should be qualified experienced with
the capability to take the employee required to achieve the objectives business enterprise.
Management of has maintained a balance between internal external ways methods like
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promotion, succession planning and job enrichment along external recruitment from job
websites, new paper advertisement and other business process etc.
 Strategy development: Second step for organisation in recruitment process is to develop
an effective strategy through that will be able to get the potential candidate that needs to
be recruited by management. After the completing the preparation of job description and
job specification, the major step is to make decision which the strategy to adopt for
recruitment of the potential candidates. While preparation for the recruitment, HR
managers of Nandos needs to consider to following things like making or buying of
employees, types of recruitment, geographical areas and recruitment process. It is
development a recruitment strategy include the development team of board, analysing
effective HR strategies, collection of data that is available, analysing the collected data
setting of strategy.
 Searching: It processes in which the management of company will search for right source
for recruitment that depends upon the nature of job. In present context, Nanados is the
organization that needs to accomplish ends there is company in front at that place, Nando
‘s prioritises are to look after the local people for their enlisting intents (Frederiksen and
Kato, 2017). Source activation is also needs to be verify the existence of the vacancy,
search for the candidates. Selling organisation selects the media through which the
communication of vacancies researches the prospectives of candidates starts. In this, HR
manager of company has selected both internal and external source of recruitment.
 Screening: After the search the source of recruitment the organisation needs to make
screening of effective resources through which they will get their desired candidate for
Job. For instance, Nandos cam use methods online recruitment, job sites, management
consultants, consultancy firm and employment agencies etc. When they get potential
candidates then they need to select the potential candidate on the basis of their qualities .
 Evaluation and control: Effectiveness and the validity of the process and methods are
assessed, recruitments is costly process, hence it is important that the performance of
recruitment process is through evaluated. It includes some task like Salaries to recruiters,
advertisement, salaries to the recruiters , administration expenses and overheads of
recruitments etc.
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In addition to this, an effective process of selection is also discussed above:
 Recruitment: After following an effective process, manager of Nandos will recruit the
qualified employees. In this management also selects the methods of taking interviews
like panel interviews, simple methods Skype interviews etc.
 Applications: It is next process applications of candidates are reviewed and selection is
made between effective candidates from which they will call them for test.
 Written test: A test has been prepared for the candidates and on the basis of results of that
written test, candidate are called further for interviews by management of Nandos.
 Interviews: In this, Nandos has used new and effective methods Skype interviews in
which they will be to communicate with candidate from different geographical areas.
 Reference check: Further, from the selected candidates interviews, their reference in
previous employment, academic background needs to be verified by Nandos.
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Illustration 1: Process of recruitment
(Source : Payne and Isaacs, 2017)

 Medical examination: It is not required in some organisation where there is less
requirement of employees but in large scale enterprise like Nandos it is required so that
any medical problem in candidates can be identified before selection (Payne and Isaacs,
2017).
 Final selection: After all the process the candidate has been selected by management and
a offer is being provided by them to the candidate. After final selection of candidate,
placement and induction for the employees is organised to make an introduction between
new and existing employees.
Thus, it can be said that it is an effective process that needs to be followed by Nandos
TASK 3
Approaches to Human resource approaches to Human resource Development
Strategic human resource framework approach-This concept of human resource
development emphasizes on organisation strategy, firm capabilities and practices facilitated by
human resource manager. The objective of this approach is to improve human resources
practices and assist human resource management in identifying the area of improvement. It
supports firm in accomplishing its goals and objectives. Integrated approach provides specialised
tools and path that can be used by cited venture to recognised the business entity can bring
positive change in human resource practices. The integrated approaches has provided three paths
that will assists human resource management in increasing their contribution to improving
business performance. These paths are development of business capabilities, focusing on
providing satisfaction to workers, etc. (Newman and Newman, 2017).
There are some important approaches of human resource development have been used by the
management of Nandos like development of strategic HR framework that aims to leverage the
practice of human resource development to develop critical evaluation organizational capabilities
that enables the enterprise to achieve its goals and objectives. It also offers some specific tools
along with directions in order to find the organization leverage its HR practices. Integrative
framework is also used by the Nandos to build the organisational capabilities, improving the
employees' satisfaction, shaping the customers and employers satisfaction (Rees and Smith
2017). This approach is used by management of Nanados to develop their employees by taking
in to account the synergies existing among the all the Human resource development practices.
Human capital appraisal is also important approach of human resource development that is used
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by the management of cited organisation. It involves mainly five stages like clarification,
assessment design implementation and monitoring etc.
Thus, it is recommended to the organization that they should use strategic HR framework
approach that needs to be so that they will be to increase the effeciency of their employees at
workplace.
TASK 4
Theories of motivation
The eating house is focused on boosting morale of its employee by implementing the use
of various motivation practices and theories. It has been analysed that almost 30 percent of gross
annual income of company the management contributes to compensation. The firm believes in
both type of motivation to workers that is monetary and non monetary (Arifin, 2014). The firm
believes that if the manager will focus on employee satisfaction then it will ultimately assist the
firm in managing its good reputation. Therefore, in order to serve motivation the ultimate motive
of the management is to fulfil basic needs of employees by implementing Maslow motivation
theory which is as follows:
 Psychological needs: For fulfilling psychological needs of employees the eating house
provides food facility to employees like pantry and canteen,. Further the firm ensures that
the employees are getting safe water to drink and appropriate first aid care in case of
general medication.
 Healthy and safe: The restaurant has enabled safe working environment and condition at
all the locations of eating house in order to prevent hazardous accidents. Nando's has
complied with all the governmental regulation which aims at protecting the interest of
employees against work environment. This is major factor which assist the firm in
serving workers satisfaction.
 Self esteem: Respecting each and every employees is the ultimate motive of Nandocas
which is the major factor behind boosted morale of employees of restaurant. Preserving
self esteem is the basic need of every employee when working which assist the
management in improving working efficiency and effectiveness of staff members (Guest,
2011).
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 Social: It is based on formal and informal relationship of employer and employee, where
the management ensures at the employees work effectively but on under the strict
surveillance and monitoring and control. It is the factor which assist the firm in boosting
employees morale.
 Self actualisation: For self determination Nando's organise regular training ad
development session in which the firm aims at evaluating employees work problems and
discovering their skills and providing them various growth opportunities.
Apart from his the firm enables the use of Hertz berg theory of motivation which is based
on dual factors of boosting employees morale that is motivation and hygienic. The management
enables the use of this motivational theory in order to determine the negative and positive factors
of work environment. The dual factor theory is as follows:
 Motivational Factor: Motivation factor of Nando's is focused on fulfilling the basic needs
and wants of workers which can provide them satisfaction like the restaurant sets the
target and benchmark on which the management evaluates the performance of employees
(Saridakis, Lai and Cooper, 2017). Further, after evaluating of efficiency and
performance the eating house provides various growth opportunities to workers which
will assist the person in boosting career growth. It is the most effective technique which
is being used by restaurant to keep its staff member's motivated.
 Hygiene Factors: In this the restaurant aims ta providing monetary and non monetary
benefits to boost employee morale. In this the firm implements the use of 360 degree
feedback method in which it evaluates the performance on the basis of bench mark and
then provides incentive, rewards, bonus etc. This activity in eating house keeps workers
motivated which assist the management increasing their work efficiency.
Proposal of hybrid theory
Hybrid theory states that providing incentive, fulfilling basic needs and monetary benefits
is not only the factors which assist Nando's in boosting employees morale instead the theory is
focused on providing equal working conditions, growth opportunities, flexible work environment
are the conditions which can assist restaurant in keeping its employees motivated. In accordance
to this, it has been evaluated that the proposal of hybrid theory can be beneficial for eating house
as it offers simple and common tactics to boost employee morale (Terziovski, 2010). Further the
theory aims at promoting equality at workplace which is major factor that assist the firm in
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gaining employees trust and increasing their working efficiency. Thus, in accordance to this
theory it has been demonstrated that it is important for the eating house to implement safe and
equal working condition in order to promote productive, positive and effective working
environment in restaurant.
TASK 5
Characteristics of effective leader
An effective leader has certain, basic, visionary, characteristics. The aim of the strong
leader is to translate their vision into reality. Leaders come in different nationalities, gender,
generations, personality profile, etc. and they come from the different life experiences. Here are
some following characteristics of the effective leaders:
An effective leader is a risk taker: - They attempts to bring about changes and these are not
without risk in the organisation. Facing changes and challenges, as they get older is a part of life.
Ways of dealing with changes and challenges reflects the quality of the leader (Barbulescu and
Mollick, 2015). However, a leader has power to take risk in any of the circumstances.
An effective leader is a caring individual: - Leadership should show a caring attitude about the
mission of their company. So, their concern for each and every individual team member must
take priority over everything else. Moreover, a leader should care their entire team members, so
they will be motivated for work hard at their work place (Hollenbeck and Jamieson, 2015).
An effective leader has self control: - There are different types of leaders, but an effective leader
should have the self control. Strong leader know that their skill to stay calm, even in the worst of
situation, is a character trait that must be nurtured and grown. One of the best thing of the leader
and their mantra is, “when you lose tour temper, you lose.” With the help of this valuable
mantra, they can able to handle and manage the worst problem or situation in their personal and
professional life.
An effective leader is modest: - Self examination is the very strong characteristics of the
effective leader. A good leader does not have an issue in being evaluated or receiving criticism.
No one enjoys being corrected but an effective leader sees it for what it is an opportunity for
personal and professional growth.
An effective leader is balanced: -An effective leader can not avoid the any area of their personal
life. They understand that they should manage the personal and professional life, however it will
be beneficial for them (Miller and Mehrotra, 2015). Along with this, they should rest, and get
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enough sleep, so they can able to work in the company. Moreover, they should eat the healthy
diet and exercise on regular basis. The entire activities of their personal life can helps them in
achieving the personal and professional goals and targets.
An effective leader is resolute: - They should make some effective wise decision, which will be
beneficial for the company (Seidu and Otaye, 2016). There are different types of department and
employees in the organisation and they handle a team and team member can face some conflicts
at their work place. However, leader should provide the appropriate and accurate solution to
them.
Leader should be motivational: - A motivational leader enjoys their task and work, so they can
accomplish their work on time. They should have ability to take risk and get motivate in the all
situation. Along with this, they should provide some effective motivational training to their team
members, so they also can able to give their effective performance to the organisation. A
motivational leader has power to take risk, handle situation, take an effective decision and
motivate others In the personal and professional life.
A leader should be a clear communicator: - A leader should have different types of skills and
abilities, but communication skill is one of the important and useful skill of the leader. With the
help of communication skill, they can able to make some effective deal with customers or any
other person. Through it, they can manage the entire team member in the organisation.
Moreover, they can able to interact with their superiors, so they will learn the lots of things from
them (Frederiksen and Kato, 2017). Other than that, it is important to understand that
communication is not solely conversation. A good communicator aims to make sure that their
message is understood. The skill of communication is grown upon the skill of listening, so it is as
important as talking.
CONCLUSION
The report has concluded that internal as well as external business environment forces
have direct impact on the human resource management practices. It also has high influence on
human resource management decision, policies and strategies formulated by them. It has been
concluded from the report that human resource is an essential assist of the company. As success
and growth of firm is totally depended on its management system. The study has highlighted the
characteristics as well as quality of effective leader. Project has successfully explained the
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various motivational theories that will help human resource manager in inspiring people to
increase their contribution in driving firm towards achievement of business goals and objectives.
The assignment has also defined the various approaches of human resource management.
It has suggested the various strategies that can be adopted by human resource manager in order
to bring improvement in human resource practices.
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