Managing Human Capital and Leadership

This document discusses the approaches to manage human resources, recruitment and selection strategy, HR development approaches, and effective leadership characteristics. It focuses on the case of Sainsbury, a retail company in the UK.

Managing Human Capital
and leadership

Table of Contents
ABSTRACT ....................................................................................................................................3
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Analysis the approaches of company in order to manage its human resources.....................3
TASK 2............................................................................................................................................6
Critically discuss the recruitment and selection strategy.......................................................6
TASK 3............................................................................................................................................8
Human Resource Development approaches and how it can be improved.............................8
TASK 4............................................................................................................................................9
Evaluation of classical theories of motivation and the best suitable theory for the organisation.
................................................................................................................................................9
TASK 5..........................................................................................................................................11
Characteristics of effective leadership and model that are relevant to leadership style.......11
REFERENCES..............................................................................................................................14

ABSTRACT
Human capital management is most significant part of the organisation. Development of
human capital skills enhance organisation to improve its compatibility from rival firms in the
market. The chosen firm is Sainsbury which deals in retail industry and offers groceries as main
product in stores. The study covers main point in relation to human capital and their main
approaches for management of human resources. Further it describes recruitment and selection
strategy of company with different approaches of HRD and how they can be improved. Lastly,
the study helps to understand different classical theories of motivation and hybrid of classical
theories and then puts light on various characteristics of effective leadership in relevant to
leadership models.
INTRODUCTION
Human capital management is set of activity which is related to the management of group
of people in an organisation which are related to resources management (Gubbins and et.al.,
2018). As these practices focus on the specific needs and requirement of organisation for
implementation and competencies of employee acquisition, management of employee and
optimisation of workforce in organisation. In this report the chosen firm is Sainsbury which
deals in retailing industry. The company has established as second largest supermarket store
chain in UK. it offer different products such that hypermarket, convenience shops, forecourts
shops, supermarkets in which it retails grocery items like fruits, vegetables, etc. The present
report will study about models and analyse approach that firm used for management of its
human resources in the organisation. Next the report will discuss selection and recruitment in
relation to strategic human resources management. Further discussion will be on theories of
motivation and characteristics of effective leaders.
DISCUSSION
TASK 1
Analysis the approaches of company in order to manage its human resources.
Human resource management is the best process of managing and recruiting talented
candidates in organisation. This department is fully responsible for managing human in company
in order to achieve goals and objectives of companybusiness. Human resource department is

providing orientation, organize training and development, appraising performance of employees,
deciding compensation and providing benefits, motivating employees and maintaining relations
with employees and their trade system (Noe and et.al., 2017). There are different models and
theories which are help to Sainsbury manager in order to manage their human resource or
employees in organisation in effective manner. It is very important to manage human resource in
organisation for better work performance and reach out organisational goals.
The main aim of Sainsbury is to exceed customerscustomers’ expectations during their
shopping. Manager of Sainsbury company is think about the consumer's first choice for food,
delivering products of outstanding quality and great services at a competitive level or cost by
working faster, simple and together. For that, below is show the Harvard model of HRM for
managing human resource of Sainsbury.
The Harvard Model
This model is highly claim to be the comprehensive in as much as it is also seeks to
comprise 6 critical elements of Human Resource Management. This includes stakeholder
interest, Situational factors, HRM policies, HRM outcomes and long term consequences (Di
Fabio and Peiró, 2018 ). This model is very supportive for managing workforce in Sainsbury.
 The first element of this model is Stakeholder interest. That includes shareholders,
management, employees group, government rules and regulations or others. This will be
define by HRM police. It is very important to manage proper workforce in company by
understanding needs and interest of stakeholder because they are the main part of
organisation. Like if their needs are fulfilled by company then they are able to give hard
contribution for achieve goals. For To manage workforce here is very important to
understand interest stakeholder.
 Some situation factors can influence to interest of stakeholders. Those factors
includesinclude workforce characteristics, unions and all the other factors. Human
characteristics and behaviour is impact to interest of stakeholder which is not good and
well for company growth (Cascio, 2015). Like: most of employees have negative
behaviour in company and they are not satisfied with company goals, then it
impactimpacts to whole employee group in negative manner. This will create the issue
for manager in order to manage human resource at company. For that, it is very important
to understand needs for employees in order to manage human resource at company.

 The stakeholder interest and situational factors has affect to HRM polices. These includes
the core Human Resource activities like recruitment, training and rewards system. The
human resource activities are most important activities in organisation. Like management
of company frame aims and objectives which is achieve by employees. For that manager
hire talented and desirable candidates or organise training and development program for
new candidates and also for existing employees. Through, that workforce if understand
work rules and their own responsibility towards work in organisation. This process is
givegiven proper and positive shape to employees for work and keep motivated.
 Human Resource management polices well done than it leads a positive result and HRM
outcome of work through proper training and development program. These includes
retention of employees, cost effectiveness, commitment of employees and competence.
With inWithin the help of training and development program employees are sharp and
knowledgeable for their own role in organisation and ready to give their hard contribution
Illustration 1: The Harvard model
(Source: The Harvard Framework for HRM, 2019)

in work in order to achieve goals and objectives of Sainsbury (The Harvard Framework
for HRM, 2019). It is important for growth and positive goodwill at marketplace.
 This is the final stage the long term consequences, which is leads positive outcomes and
result. Positive result is help to keep motivated employees in organisation. This process is
help to manage human resource in organisation in proper manner which is very important
and effective for positive growth of company. Positive training and attitude is helpful for
managing employees in organisation. With the help of this model, Sainsbury manager is
able to manage their human resource in organisation.
As per the discussion, this model is best way to manage workforce in Sainsbury by
understanding their needs, providing training and maintaining result.
TASK 2
Critically discuss the recruitment and selection strategy.
Strategic human resource management involves a future oriented process of developing
or implementing effective HR programs in effective manner. That address and solve business
problems and directly contributing in majorly for long term business objectives. This is effective
and best for company to use best recruitment and selection strategy in organisation. Recruitment
and selection is most important and effective operation in human resource management, this
designed to maximize employee strength in order to meet the employer strategic goals and
objectives (Greer, Lusch and Hitt, 2017). It is the main process of sourcing, screening, short-
listing and selecting right candidates for the vacant post.
Most of the time Sainsbury manager, fill their vacant from their own pool of employees,
but most of the time they are seeks employees externally. There are two types of recruitment
method like internal and external recruitment process. The internal recruitment process where
manager of Sainsbury fulfilfulfils vacant post by selecting employee from internal offices. On
the other side, in the external recruitment process manager of Sainsbury fulfil vacant post by
pool and campus interview. The internal process is create advantage which is that process is not
consume extra time and save money but through, this one post is again vacant. This process is
not fulfilfulfilling all post at one time (Ekwoaba, Ikeije and Ufoma, 2015). External recruitment
is requiresrequiring more time to hire candidate but this can help to Sainsbury manager to hire

eligible candidate by taking proper interview. Manager of Sainsbury is select and shortlist
candidates by screening CV.
Having an effective recruitment strategy is the best paramount to the success of
organisation. A recruitment and selection strategy to ensure supply meets demand requirements.
This is the main strategy of recruitment and selection because selecting and hiring candidates for
company by proper screening (Ekwoaba, Ikeije and Ufoma, 2015). Like employee's qualification
is suitable or their knowledge and skills are suitable for vacant post. Candidate is perfectly match
with their organisation goals and aims. This is important to ensuring before for Sainsbury
manager to use process. But most the time, in the interview session employees gives answers
which is correct but exactly they are not suitable for post. In that case employer face problem
(Brown and et.al., 2019). On the other side, the strategy of recruitment and selection process is
increase operational effectiveness by giving proper training and development to employees.
Training is best way to increase operational effectiveness by learning. Manager of Sainsbury is
givinge training by using on the job training process. In this process, candidate and employees
learn job roles and task in proper manner. But it can create problem when employees learn
different department roles.
Recommendation
Sainsbury is recommended to use both type of recruitment that is internal as well as
external recruitment according to demand of the company requirement. As best recruitment
source of recruitment is external recruitment which enables the company to use fresh talent from
outside of the company which enable the firm to get trending ideas and new style of working
form employees. As in internal recruitment the employee with required skill are not present and
they are not acquainted with trending innovative working culture and fresh ideas for doing work
in different ways. The company is recommendrecommended to use on the job training as this
helps the candidate to get proper knowledge of the work and learning in systematic manner. The
company can use latest method to attract candidate towards the company for recruitment that are
print advertising, online portals, social media, etc. as these helps the company to get quicker and
attract large pool of candidates. The best selection process which company is recommended to
use is interview and aptitude test which will helps to know the metal culpabilities of employee to
solve the problem and face to face interview will help to know the body language and personality
of the candidate.

TASK 3
Human Resource Development approaches and how it can be improved.
Human resources development is a systematic and set of planned activities which is
designed by the organisation to provide required skills to its members in order to meet the
present and future objective of the job demands (Gubbins and et.al., 2018). In others words
human resource development is a process for increasing the skills, knowledge and capabilities of
the employees in the country.
Different approaches for human resource development are strategic HR framework
approach, integrative framework, PCMM approach, HRD score card approach, human capital
appraisal approach and integrated system approach all these are explained below
Strategic HR framework approach: This approach was propounded by Lake and
Ulrich in 1990. The main elements of this approach are organisational capabilities, business
strategies and HRD practices. Aim of this approach is to build capabilities for accomplishment of
HRD practices and enable firm to attain its objectives. Strategic HR framework offers path and
tools to determine how organisation will accomplish its HR practices. Sainsbury company uses
strategic framework as an approach to capture the larger market of UK and use its competency
level from rival firms.
Integrative framework: This framework was propounded by Berman and Yeung in
1997. Iit helped to identify the three paths through which organisation can practice HRD which
will further help a firm to increases its business performance. The three paths are improving
employee satisfaction, developing the capabilities of the organisation and shaping customer
needs. The approach mainly focuses on development of entire human resource system taking into
account the natural process that exists among all the HRD practices (Hager, 2019).
PCMM approach: People capabilities maturity model approach was developed by Team
and Curtis in 1995. The approach aim is to give guidance for improvement of the software
organisation which relates to develop and retain the talent by motivating them to improve their
software capabilities. This approach states that the company improves employee management
practises from beginning, repeatable, managed, defined and optimising the level of maturity
with the help of HR practices.
HRD score card approach: This approach was propounded by Dr. TV Rao in 1999.
The HRD score card provides links between the HR operations and company business targets.

The approach states that HRD intervention makes positive impact on business for development
of business system, competencies, culture and business linkages. The managers used score cared
for measurement of effectiveness of HR functions of the company and efficiency in producing
worker behaviour which helps the company to achieve its strategic objective (Nolan and
Garavan, 2019).
Human capital appraisal approach: Tthis approach was propounded by Friedman in
1998. According to this approach there are five stages in human capital development. The
different stages are clarification stage, assessment stage, design stage, implementation stages and
the last stage is monitoring stage. Human capital management relates to five areas that are
recruitment, retention and retirement, rewards and performance management, career
development, succession planning and training, and the last area is management of company
structure and human capital formation. All these stages helps in management of human capital
and are examined with the help of different areas as mentioned which ensure that each area
should be fit in respective strategies (Pareek and Purohit, 2018).
Integrated system approach: Tthis approach deals with separate HRD department for
implementation and effective development of human resources in the company. It enable the
firm to view the strategy from initial point and focus on all the system to till the last stage that is
achievement of organisational goal with attainment of employee satisfaction. Its aims isare to
evaluate the HRD functions which includes elements of human critical approach.
HRD can be improved with the help of providing better training and educational
programs to the employees of the Sainsbury company. The company can align its projects in
accordance with the strategies of the organisation. Sainsbury can find the human capital which
can creates talent triangle in the company as it includes the improvement in scope, schedule and
budget. Experienced employees createscreate the talent triangle for the company which improve
the company capabilities to compete in the markets from rival firms (Ellis, 2018).
TASK 4
Evaluation of classical theories of motivation and the best suitable theory for the organisation.
The classical theories are the traditional theory of motivation which are
maslow'sMaslow’s need hierarchy theory of motivation and Herzberg two factors theory. These
are discussed with their advantages and disadvantages to the organisation.

Maslow's need hierarchy theory of motivation explains that theirs there are five stages
in accordance with the psychology which are required by the firm to be fulfilled. Maslow's
theory express that people get motivated to achieve certain objectives that needed to take
precedence over other things. The five stages are psychological needs, safety and security needs,
peer recognition, self esteemself-esteem needs and last is self actualisationself-actualisation
needs (Cascio, 2015).
Psychological needs: This is the first and foremost stage which is needed to be fulfilled
by the company. As the basic biological needs of the human should be accomplished for survival
that is food, shelter, clothes, etc. as it satisfies human body to function optimally.
Safety and security needs: The safety of human in order to protect from elements that
may threaten, job security, law, orders, stability, freedom from fears, etc. (Livingston, Shah and
Happé, 2019).
Peer recognition: When the first two needs are being fulfilled then human focuses on
fulfilment of increasing self respectsself-respects in the society, it involves the feeling of
belongingness, acquire and giving the love and affection, etc.
Self esteemSelf-esteem needs: This needs includes the achievement, mastery and
independences. As it also includes the desire for getting status and prestige in the society.
Self actualisationSelf-actualisation needs: This is the last stage which states human
personal potentials, self fulfilmentself-fulfilment, acquiring personal growth and peak
experiences.
The advantages of maslow'sMaslow’s theory is that it is simple to understand the basic
needs that are required to be fulfilled during the lifetime (Kapp and et.al., 2019). As the business
in concerned with fulfilling the requirement and achievement of all the stages of psychological
needs. Next benefit is that maslowMaslow theory is relevant to all the fields that can be
business, home, etc. disadvantages of the theory is that the thinking and thoughts of all the
humans are not in same direction as for some people social affection is more important thenthan
fulfilling the requirement of safety needs. Another disadvantage is that it creates difficulties in
measurement of satisfaction level present in humans. For example, some people will gets
satisfied by fulfilling psychological need and some does not get satisfied by accomplishing all
level of demand.

Herzberg theory focuses on subject of motivation and to get employee satisfaction. The
theory was evaluated with the help of research done on two hundred engineers and accountant
(Courtney, 2018). It has been identified from the research that hygiene and motivating factors are
the ways which can increases the employee job satisfaction level. As motivating factors creates
job satisfaction which encourages employees and hygiene factors creates job dissatisfaction for
employees. Factors of motivation are sense of achievement, peer recognitions in job,
responsibility for work assigned and its accountability, advancement and growth. Hygiene
factors includes policies of company, supervision which should be appropriate and fair, salary
distribution should be on equitable basis. Advantages of herzbergHerzberg theory is that it
able to build motivation within employee’s rather external source of motivation is required to
employee (Verkoeyen and Nepal, 2019). For example, Sainsbury adopts the theory to improve
the working environment so that employee feel motivated to work efficiently. Another
advantages of herzbergHerzberg theory is that it enable the organisation to focus on the problems
of employee which dissatisfy them so that employee can feel friendly working environment.
Disadvantage of theory is that it is not necessary that satisfied employee will always contribute
in increasing the productivity of the company. For exampleexample, the manager in Sainsbury
may thinksthink that by increasing the level of job satisfaction will increase the productivity of
firm. Another disadvantage is that the theory does not undertake the external factors that are
related job satisfaction like rival company is offering more salary to employee then Sainsbury.
Hybrid Theory by considering each classical theory reveals that motivation is much
bigger concept in exploration of the subject. As different theories makes organisation to learn
and establish discrediting of 'rabble hypothesis' theory, based on the assumption that individual
seeks interest by perusing self interestself-interest which leads the organisation to effect on
leadership and working of the Sainsbury (Livingston, Shah and Happé, 2019). By proposing
ana hybrid theory to Sainsbury will increases the productivity of organisation and improves the
efficiency level of the employees. As motivation requires diverse skills for leading Sainsbury
employee to get work done. By combining both theories the individual can get motivated to
manage the skills which will further motivate the employees of Sainsbury to meet their
objectives (Kapp and et.al., 2019). the most suitable character of Maslow’s theory is that it focus
on fulfilling the needs of humans and character of Herzberg theory is to get satisfaction.

TASK 5
Characteristics of effective leadership and model that are relevant to leadership style.
Leaders are the persons who motivates the employees to work effectively and efficiently
for the organisation (Courtney, 2018). The qualities of effective leaders is that it enables to build
strong team and nurture the talent and strengths of employees for achievement of the common
goals of the organisation. Some of the characteristics of effective leadership are as follows
Share vision: The leaders have clear idea of vision as where they wanted to go and
where they stand in present (Qualities of effective leaders, 2017). As the imposition of vision
should be clear and passionate so that the team members can also understand the importance of
accomplishments of the objective. Which will enhance employee to contribute more efforts for
accomplishment of the goals. In other words, leader must share vision, mission and goals with
personnel so that team can give their best efforts in an appropriate direction.
Lead by example: To build the credibility and get respect from other leaders can give
right example to guide the employee in correct path. As the behaviours and personality of leaders
influence employee willingness to follow the guidelines given by leaders as it set standards for
aligning actions and words to build the trust and team can follow the instructions given by the
leaders (Verkoeyen and Nepal, 2019).
Effective communication: This leadership skill is very crucial a. As communication
concern more thenthan just hearing. Communication views sharing of information, soliciting
inputs and fresh ideas, intelligent questioning and clarifying the misunderstanding, etc. The
effective leaders communicate to inspire the staff and make full energized. In the context of
business organization, focus need to be placed on effectual communication aspects. Moreover, in
the absence of having proper communication regarding activities and goals team members would
not become able to contribute in organizational success.
Capabilities to take difficult decision: Effective leader possess the capabilities to take
decision in tough situations. As the time of facing difficult situation the leaders shows best of
their characteristics to achieve the goal of the company. Leaders assess the consequences of
decision and avail alternative options.
Recognise success: Effective leaders regularly and continuously recognise achievement
which is most powers wont of impelling leader. The leaders appreciate the work of the

employees and make them to give their best in their work. By celebrating the achievement
strengthens the motivation and helps the employee to give best continuously (Northouse, 2018).
Empower others: Effective leaders have the sense that what they are doing in their work
is meaning full and creates a sense of ownership. By communicating clear goals and deadlines to
employee will give them authority and autonomy for getting work done. Challenges given to
employee encourages them and make increases their expectations from work which enhance the
ability and skill to become creative and innovative in their work
Inspire and motivate: The effective leaders possess the ability to push their team
membersmember’s forwards for accomplishing their personal goals with the help of increasing
motivation, inspiration, passion and enthusiasm in workers (Glatthorn and et.al., 2018). Under
participative leadership, leaders make focus on motivating personnel in relation to coming up
with new ideas as well as suggestions which contributes in organizational growth and
development.
Situation when leaders shows the trait of effective leader is when Sainsbury wants to
expand its business by introducing new and innovative product in the market which will require
more ideas. The effective leaders can motivate and inspire employees so that they can open with
different fresh ideas for expansion of business in international market. Leaders can adopt
democratic leadership style so that member can be involveinvolving in giving innovative and
creative ideas (Verkoeyen and Nepal, 2019). As in democratic leadership model the member are
involved in decision making process which enhance leaders to get broad pool of ideas from their
employees. As in autocratic leadership style leaders does not involves its members in the
decision making process which limits the leaders to get creative and innovative ideas.
CONCLUSION
From the above report it can be concluded that human capital is the most important part of
the company in development and growth of the firm. As recruitment of talented employee will
increases the growth and development of the company and enhance the company to expand in
international markets which will increase the profitability and image of the company on global
basis. The report also studied about different human resources development approaches the best
approach which is suitable for the Sainsbury is strategic human HR framework which makes
company to achieve the objective for overall development of human resource. Further the
discussion was based on characteristics of effective leaders which encourages employees to work

hard and give their best efforts in work. As the effective leaders represent clear vision with
effective communication and influencing personaltypersonality t. The best suitable leadership
model for Sainsbury company is democratic leadership model which will help the leaders to
involve employee in decision making and motivate them to give fresh and innovative ideas for
development of the organisation.

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