Managing Human Capital and Leadership

This report discusses the role of human resource management and leadership in organizational success. It covers HRM models, HR functions, and strategic initiatives. The report also explores the impact of HRM on employee behavior and the approaches used by Alf Mizzi & Sons. Additionally, it highlights the importance of recruitment and selection, training and development, performance appraisal, and employee motivation. The report concludes with a focus on employee welfare, health, and safety measures.

MANAGING HUMAN CAPITAL
AND LEADERSHIP

INTRODUCTION
Human resource and leader is very essential part of company. They both contributes in
success of firm.
Alf Mizzi & sons was setup in 2003. The company had its headquarter in Malta. It was
founded by Alf Mizzi who is the founder and CEO of company. The above report includes
related HR models that is helpful for company to manage its human resource and its
functioning. The report further carried forward with critical discussion on the function's of
HR. Identification and critical evaluation of various HR software program which are available
off shelf and further evaluating the one best out of theses which will be beneficial for company
to manage the HR functioning of company. Report ends with the discussion on characteristics
of effective leadership which can be used by leader for gaining the organizational success with
the help of relevant model.
TASK 1
HRM models
Models of HRM provides the framework which are analytical so that they can study the
management of human resources. There are four models of HRM
Model of Fombrum
Model of Harvard
Guest Model
Warwick Model
In this report guest model will be briefly discussed.
Guest Model-
This model was developed by David Guest in 1997 and claims to be specific and
productive as compared to other models. Managers need to make strategies that requires some
practice if they are executed in the company and this will give the company the results and
outcomes which they are expecting. The results in this aspect includes factors such as relation
with performance, rewards on financial basis and emphasis on behavioral performance of the
company (Sparrow, 2016). This state of model emphasize on management with an strategic
approach as compared to other models of HRM which focus more on areas of development
and management. This model is concerned with taking the needs of individual prior than only
putting focus on performance. On the basis of model given by guest. HRM of Alf Mizzi &

Sons is linked to the strategic management which will improve the structure and management
of the company. This model helps to find out the goals of the organization and achieve them as
it seeks commitment to goals. Of the company. The focus of this model is to look after the
needs of an individual than to look after the whole team of the company. It helps companies
such as Alf Mizzi & Sons to grow and establish their structure in market.
Hard and Soft HRM-
Both these approaches has some impact on the operations of Alf Mizzi & Sons in
positive and negative manner. Manager who implies the strategy of hard HRM is strict, works
on a rigid thought process which states that they work with employees in order to extract high
amount of profits.
Advantages of Hard HRM-
High amount of centralization, control over efficiency on a high level, more process of
standardization, high amount of equality between employees, diversity in culture etc (Young
and Jones, 2018).
Disadvantages of HRM-
Less efficiency in production, most of the people suffer from the issue of fatigue.
Soft HRM-
This approach helps the company to motivate the commitment of Alf Mizzi & Sons by
focusing on areas which concerns the workers of the company. Manager who implies this type
of HRM trusts their employees, more compassionate in nature, collects and listens to the
opinions of their team. They believe that employees of the company must come to work in
order to impress and make progress in their culture.
Advantages of Soft HRM-
High level of participation of employees, high amount of motivation to the members of
the team and high efficiency in the aspect of production etc.
Disadvantages of Soft HRM-
It takes out a huge amount of cost in the progress of skills, increase in pay scale,
development in training program etc.
Analysis Dimensions-
Model of Guest includes six dimensions of analysis which is implemented by Alf
Mizzi & Sons.

 Practices of Human Resource Management (Manuti and De Palma, 2016).
 Outcomes of management of Human resources.
 Strategies which are used for human development in firm
 Impact of department on performance of employees.
 Outcomes in the financial area (Jain, Gera and Ilavarasan, 2016).
 Impact on the behavior of employees.
 Strategies if HRM which makes the company more productive.
 Practices of HRM- Appraisals, Training, Hiring compensation and relations in the
industries.
 Outcomes of HR- quality, commitment and flexibility in the operations of the
company.
 Outcomes on the basis of behavior- cooperation, motivation and organizational
citizenship.
 Outcomes on the basis of performance- positive environment of work, increase in
productivity, innovation and changes in turnover.
 Financial outcome- Return on investment and profit.
Impact on behavior of people-
The implementation of this model has helped Alf Mizzi & Sons to be more committed
towards their goals. The culture of the company has been driven by guest. They have been
successful in sharing the values, attitudes and beliefs of people (Ravazzani, 2016).
Approaches-
The approach used by Alf Mizzi & Sons is system approach which is implemented across
different departments of company as all of them are trying to achieve same goals. Company
works for a similar motive to reach the objectives, but they have many other ways to reach the
goals. Department of HR has many ways to keep them motivated enough with the help of
techniques such as offering them incentives for an extra effort, rewards or appraisals and all
other factors which can push the employees of the company. Company tries to extract most
from their employees as possible, and they even realize that they won't be in the position if
they don't start here. HR department is the one who recruits the right and suitable talent for the
company. Above that they train them make them practice so that they can work according to
the standard of the company (Bowden, 2018).

If the training provided to employees is not proper then they won't be able to look out
for the factors and work upon the standards which are set by the company (Huemann, 2016).
TASK 2
Discussing organization's HR function which are related to strategic human resource initiative-
Human resource department of company handle a wide range of various functions.
Department is responsible for firing and hiring employee, training worker, maintaining
relationship with employees and interpreting law for employees. This department work behind
company so that it ensure company could work efficiently or smoothly. Managers have to plan
things and have to organize in proper manner in order to meet the goal (Ganesh, 2018). It is
essential part of the management that is concerned with people at work and along with their
relationships across firm. The various functions of HR has been described below-
Recruitment and Selection:
It is the primary and major function of Human Resource department, hiring manager
and HR manager must ensure that equal employment opportunity. Recruitment is process in
which candidates are invited by issuing notification on television media, newspaper, social
media networking for particular post. The recruitment of employee is to be administered by
the two major source through external and internal source (Wehrmeyer, 2017). In which
internal recruitment is done by recruiting employees from the existing one through promotion.
Whereas the external recruitment includes the recruitment through inviting talents to work
with company and further the best suitable candidate must be selected. External recruitment is
very helpful or company to recruit talented, new and fresh employees from pool of vast talent.
After the process of recruitment employee's selection process should begin for identifying
appropriate candidate through written test on the relevant subject, group discussion, oral test,
gamification, final interview and at last document and background verification for checking
credential and genuinity of candidate who had applied for the vacant post in organization
(Zandi and et.al., 2019). No biasseness must be done by the HR department and suitable and
appropriate candidate must be selected for company so that individual could be beneficial for
company. The Alf Mizzi & Sons must recruit and hire talented employees for their company
so that they can gain huge competitive advantage for them and compete with their rivals
effectively if they had talented employees with them. The skilled and talented employees are

valuable resource for company which is helpful for them in raise for their revenue and profit
(Kessler, Heron and Spilsbury, 2017).
Training and Development-
It is core function, they must trained their employees with knowledge and skills for
performing job effectively. The companies sometime provide training to their new employees
also so that they could perform their task well and could be productive for company.
Sometime big and large company also have development program that is helpful for employee
to gain higher level of responsibility within company. Training and development program
ensures company to that they are capable for performing the jobs. It is very useful for
company that employee can learn new skills with the help of it (Gauche, de Beer and Brink,
2017). So the Alf Mizzi & Son ‘ employees must get training on time so that they could be
helpful for company to gain their competitive advantage. The company could gain huge
revenue and profits of they had talent and skilled employee with them. Thus, if employees are
trained with time to time training and development program then they could learn new skills
and will be motivated so that they could retain with company for long term. And could work
further for achieving goal and objective of company.
Performance Appraisal-
Performance appraisal is very essential for company to monitor the employees
performance and ensuring that its acceptable at all levels. The HR manage of company is
responsible for administering and developing performance appraisal system so that they can
monitor actual performance of their employees. It is very helpful for the development of
employees as is very essential for motivating and guiding employees for their performance
improvement. The HR manager of the Alf Mizzi & Sons should set the standard for
performance so that they can measure their employee performance on that basis and gap
between employees performance could be optimized and then further steps must be taken by
them to fill that gap. Modern appraisal method should be used by company so that they could
estimate their performance on quarterly basis (Sparrow, 2016). The modern method that could
be used by company are management by objective, 360 degree appraisals, cost accounting
method and through rating scale etc., Through the performance appraisal employee's
performance monitoring could be done by manager so that they could monitor and see where
there employees are lacking. And could appreciate & motivate employee who had good and

significant employees. So that they would feel motivated for their good work and boost up to
work with company for long term. The organizational goal and objective could be achieved
effectively. company has to provide performance appraisal for their employees so that their
performance must be measured and good performer could be motivated and encouraged for
their good work and other could be provided with training and development program so that
they could improve & enhance their performance further (Jain, Gera and Ilavarasan, 2016).
Motivating employees-
If employees will not be motivated by their leaders and managers then they could be a
resource for company and thus organizational goal and objective could not be achieved by
company. So Alf Mizzi & Sons could give pay and benefits to their employees so that they
keep on working with company for its growth and development. Employee had right to
receive a justified payment for the work which is done by them and thus giving appropriate
wage and salary to employees is fundamental duty of employees (Ravazzani, 2016). It is
helpful fort motivating employees. Along with that employee benefits must also be given to
them. It can be categorized as statutory and voluntary benefits which are social security
benefit which are compulsory rendered to employees. Some of them could be free food, paid
vacation, dependent benefit, maternity benefit, medical benefit, payment of the bonus,
provident fund, paternity fund and gratuity payment. The good working condition to the
employee also motivate them to work with company. Company must follow the labour laws in
their company so that their employees could feel encouraged and valued by their employers.
Good working condition for company includes rendering flexible working hours, giving them
correct work load so that their employees could not feel stressed and thus they could maintain
healthy work environment. So the HG manager of company must ensure that their employees
could balance the professional and personal life. Having all these benefits in company will
definitely motivate employee for working ahead for achieving organizational goal and
objectives. Companies policies should also have a balance among labor law and principle of
the natural justice. So that their employee feel comfortable and valued by company and
couldn't feel undiscriminated (Wehrmeyer, 2017). If Alf Mizzi & Sons will have good
company policy then they could encourage employee so that goals and objective of company
will be achieved effectively.
Welfare, healthy and safety measure-

The company must maintain welfare, healthy and safety measure for their employees.
It is compulsorily followed by company and must be maintained and managed by the HR
department. In the employee welfare they must include goof canteen facility to their workers,
medical and first aid facility so that employee could be treated if got hit while working in the
office premises, restroom if any employee feel weak or sick, lunchroom's where employees
could have their lunch and tea breaks could spend their break time there and childcare facility
for the female employee who couldn't put their child at home as no one is there at home who
can take care of their child's (Zandi and et.al., 2019). The company must take healthy
measures for employees for which they must maintain cleanliness at the workplace so that
their employees could get a healthy working environment and could get fresh air which is
helpful for them to keep healthy. Disposing of waste and its management must be done by
company sop that their it could be a step by them towards sustainability. Along with that they
must render them with washing & cleaning facility with the freshwater and thus overall this all
will be helpful for Alf Mizzi & Sons to provide their employee a healthy work environment.
Employee's safety must provided by company as they must avoid injuries at workplace and
accident to the employees, if it happens then the employer will be responsible for that, and
they must provide proper treatment to that employee if all that happened during employment
(Kessler, Heron and Spilsbury, 2017). The company must gave their employee overall security
so that they feel safe to work with company and must work with positive attitude for achieving
the goal and objective of company. Alf Mizzi & Sons could maintain a better relationship with
employee if they motivate them and encourage them for working further.
TASK 3
HRM software
HR uses many software in the company to work in an efficient manner as it is necessary
for the department. Software for the companies are built on a better platform so that they
can manage the department of work and get the eligible employees for work. Sometimes
there are some issues in the software such as wrong entries so that employees can get
more money out of the system (Young and Jones, 2018). The role of HR is to be fair
with everyone and not be biased with anyone and treat everyone the same way. The
different programs for designing of this aspect are-
 Human resource information system

 Human resource management system
 Human capital management
 Applicant tracking system
 Software for Payroll.
HRIS is very popular software which plays significant role in HR operational activities. This
software keeps records of all employees and related activities. This has facility of automation
hence recurring task can be managed effectively. HR function is very difficult task because
human resource team has to handle large number of employees. This software help in
analyzing requirement of workers and reaching to the suitable person effectively because
performance of each staff member is recorded which help in finding the most deserving
candidate and giving the opportunity to work on top level to the right candidate. This software
keeps record of each activity such as salaries, task allotted, resource required in computer
hence this helps in minimizing wastage of paper ad related materials. Even all these records
can be kept save for longer duration which helps in evaluating overall performance of
particular department in the organization. HRIS software helps in integrating with LMS by
this way managers can raise capabilities of training so that workers can work even better in
workplace. Payroll system is managed effective hence issues related to salaries can be
minimized to great extent. HRIS system keep track of all the workers in the firm, their arrival
and departure time are recorded hence attendance tracking is done closely which helps in
making salaries of employees accordingly. This will improve the level of productivity and
make it faster. Role of HR is to know about the personal as well as professional belonging of
their employees such as their personal details which are meant to be hidden. Software helps
the company to track their employees. Currently the HR department of Alf Mizzi & Sons is
learning about some program so that they can introduce the approach in the company. To keep
the track of employees company is using the payroll software and HRIS so that they can
evaluate their efforts and hard work invested in the company but the company is not paying
them on the basis of that which is a demerit. (Ravazzani, 2016). Employees of the company
will leave if the department of HR is not able to manage the operations of the company.
Human capital management software is based on a set of skills which the employees
possess, their qualifications and the productivity of individuals which is recorded by the HR of
the company. They will assign the work to employee according to the area of his expertise.

Company can also track the performance of employees with the help of software which will
make it easier for the department of HR to work. They will offer them rewards, incentives or
bonuses on the basis of that. It will help the employees to motivate as they will be getting paid
according performance and hard work which will also help the company to make progress in
the market (Ganesh, 2018). HCM software gives positive outcome to the organization because
it helps in empowering employees and giving strength to their voice. This software makes the
recruitment process little easy hence right person is recruited on the right job. This is effective
software in order to make succession planning because it makes it automatic. This software
gives positive results in leveraging talent management. It keeps record of organized training in
company so that continuous development of employees can be done.
Alf Mizzi & Sons must implement HRIS software, as it gives better result than other
software. It has all the features, by using this software HR of company can make record
keeping task more accurate because this minimizes mistakes in record keeping. Training and
recruitment becomes more systematic so that skilled workers can be managed in business
effectively. This software is helpful in generating salaries automatically which makes its easy
and minimize mistakes.
TASK 4
Characteristics of effective leaders
Good leadership is essential, manager of human resource as they have to maintain the
level of standard of work of the company. Department of HT has to ensure that the
company is achieving success, and they will be able to meet their goals and objectives.
HR department of the company has to create atmosphere where all workers follow the
guidelines of leaders. Department of HR needs to make sure that every employee in the
company must maintain the code of conduct and the level of professionalism which will
not disrupt the discipline of the company (Kessler, Heron and Spilsbury, 2017).
Employees of the company have to listen to the instructions and orders made by the
department as they believe that if there are no instructions or orders then employees of
the company won't be able to develop personally as well as professionally which will
also affect the growth of the company, characteristics of leadership which are required-
Department of HR needs to be honest with the management as well as the employees because
until they know the reality of the prospect they won't be able to function in an efficient

manner. It is advised that employees of the company who are facing problem in any area can
consult it with the HR of the company (Gauche, de Beer and Brink, 2017).
Employees face a lot of pressure and suffer from lot of stress because of work assigned
to them. So it is necessary to keep them motivated by keeping them confident by listening to
their opinions and training them under them. Employees of the company must have confidence
to engage in a conversation with the HR of the company and address the issues which they are
facing. Confidence will develop them in other concerned areas as well.
Communication is considered as a skill which is an important aspect and it is very important to
work in the department of HR. It is the main area where HR manager must excel and have the
adequate skills so that they can reach onto gaining the benefit from that field.
When the attitude of the manager is positive then the environment of the company will
remain positive on its own. It is a requirement in the characteristic trait of HR as it helps to
spread positivity among the employees which helps them to work with less amount of stress.
Leaders have to reach by looking at necessity of situation. above that they will be able to
provide them with necessary skills and training as they have to deal with new joiners. Training
can help in understanding task well and performing well in business, and they can work
effectively and efficiently on their own with less guidance (Sparrow, 2016).
CONCLUSION
Study summarizes as managing human capital is essential for company so that they
could work further for company's overall functioning. If company have an effective leader
then they could lead and manage their employee and company's operation further and thus it
will be helpful for company for creating a competitive advantage foe its rivals in market place.
Company must have appropriate human capital also so that all activities could be effectively
managed and co-ordinate by them for further company's functioning. The better leader is
always fruitful for company to gain their goal effectively. The leaders always guide and
motivate employees for the work they are doing for the company and keeping it further.
Company could achieve huge success if it had a better leader. Leader always ready to take risk
for company and helps them to compete with its rivals and stand out from other ones in
marketplace.

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