Managing Human Capital and Leadership

This report analyzes the role of HRM in the company and how it works, HRM models such as Fombrun's, Harvard framework, Guest model and Warwick model of HRM, functions and approaches of HRM, HR software, characteristics of effective leader, and recommendations for improvement.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

ABSTRACT
This report has analysed role of HRM in the company and how it works in the company.
It is private retailer supermarket and their aim is to provide quality product and services to their
customers. This report has been analysed HRM models such as Fombrun's, Harvard framework,
Guest model and Warwick model of HRM. This report has been explained functions and
approaches of the HRM and It has also concluded recommendation for improvement.

Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
Human resource management models ...................................................................................4
TASK 2............................................................................................................................................6
HR functions and recommendation.......................................................................................6
HRM software available online and best software for company.........................................11
TASK 4..........................................................................................................................................12
Characteristics of effective leader and issues identified in previous tasks...........................12
CONCLUSION..............................................................................................................................14
REFERENCES................................................................................................................................1

INTRODUCTION
Human resource management is the strategic approach, helps to provide skilful workforce
to the organization. HR or the people who are working in the organization are most valuable
person. HRM department of the company is responsible to recruit, hire, select and provide
training & development to the employees, so employees can help company to achieve business
goals.
This report will discuss Iceland Food LTD for case study. It is private retailer
supermarket and their aim is to provide quality product and services to their customers. This
report will analyse HRM models and approaches of the company to the management of their HR.
It will discuss HR function such as selection, recruitment, performance and motivation of
employees. This report will include discussion of HR software which can help to manage
activities of employees. In the end of this report will analyse characteristics of leader taking into
the consideration.
TASK 1
Human resource management models
According to the author ( Di Fabio and Peiró., 2018 )There are four models of HRM
which help company to achieve their business objectives and grow in the market. This models
also provide a characterization of the HRM which establishes variable and relationship to
research. Here are 4 model of the HRM-
The fombrun- This model was introduced in 1984 and it emphasizes 4 for functions and
their relationship. The Four functions of this model are appraisal, reward, selection and
development of the employees. And they are also expected to contribute towards the Iceland
Food LTD's effectiveness (Armstrong and Taylor., 2020). This model help HRM to run their
functions effectively. Selection of the employees are based on their interview and their skills. HR
manager select the employees who have skills to work on particular job. Reward system is for
employees motivation, so they will keep motivated and do their work effectively. HR manager of
the Iceland Food LTD company provide incentives to the employees who are able to achieve
their target. Development of the employees cannot successful without providing them proper
training to them. HR manager of the company provide proper training to the employees to
improve their skills and performance. It also helps them find employees who can take higher
responsibilities in the future.

The Harvard Model- Harvard model consists with the 6 elements of the HRM such as
HRM policy choices, situational factors, stakeholders interest, HR outcomes and long term
consequences. HR manager of the Iceland Food LTD company helps to make polices for the
employees and provide them their right. They listen to the employees and communicate them.
HRM of the company involves all the management functions of the company to create
relationship between employees and company (Bratton and Gold., 2017). Employees of the
company are active stakeholders of the company. They have their needs and demands along with
the other groups like customers and stakeholders. Strategic HRM that totally focus on the
company's management, professional groups and new labours of the company. The main motive
of these models is to align the formal structure of the Iceland Food LTD company. This helps to
achieve the strategic objectives of the company in more effective way. This model is able to
remove the limitation of the single model and put the efficiency and reliability toward the
companies strategies. This model also includes the international development of the firm, the
power of companies stake holders such as employees, government, management and their link
corporate with the companies HR strategies. In the international level where economies are
fluctuating, technologies are getting more advance in this industry. This is forcing companies to
adopt the Harvard model on the practical basis.
The guest Model
This model was introduced to the world in 1997. this model has explained that how
personal management is totally different. This model is work on the basis of companies HR
manager's assumption and begin with the few strategies, Which can help Iceland Food LTD
company to result in outcomes (Chelladurai and Kerwin., 2018). This model integrates the
practices of HRM leading to companies superior individuals and companies performance in the
market. This models have 6 dimensions of analysis such as Outcomes, strategies, behaviour
outcomes, practices, performance outcomes and financial outcomes. One of the essential element
of the HRM Harvard map have direct connection with the consequences of business. This adds
the different stages and level of the analysis in previous version of this model. This model it
helpful to find a relationship of HRM practices with the performance. There is one limitation of
this model is that this model fails to consider that practices of HRM is different and it may
complicate process in the chain.
The Warwick model

This model emphasizes on the analytical approach to the HRM. The Warwick model
takes awareness of the business HR practices and strategies. It has significance for the
candidates selection and their recruitment, seeing that external and internal context should be
integrated with the strategy of the Iceland Food LTD. Strategies of the company, influence and
affect on the practices of HRM. Such HRM practices entails procedures, system practices,
approaches and models. Strength of this model is mainly centred in the fact which classifies and
identified necessary influences of environment in the HRM. This also maps the connection
within companies strategy and environment. This models can help HR manager of the Iceland
Food to adopt the changes in external environment so company can gain competitive advantages
and achieve goals and objectives.
TASK 2
HR functions and recommendation
HRM plays important role in the company. Functions of the HR manger in the Iceland
Food LTD company are recruitment, selection of the employees, HRD, motivation and
performance appraisal (Chen and et.al., 2016). They manage employees and understand the
requirement of the company in the context of workforce. Company cannot take competitive
advantage if their employees does not have skills, and they are demotivated. HR function helps
those employees to motivate and encourage them to achieve companies objectives and goals.
Managerial functions
Planning -One of the primary function of HRM is plaining of the employees because each
department of the Iceland Food LTD company need employees to run activities. They provide
employees to each department by selecting process (DeCenzo And et.al., 2016). They decide
how many employees will be need to run activities in the company. They are also involved in the
plaining of the organization. They take decision with leaders and manager of the company and
present their thoughts and ideas in the decision-making of Iceland Food LTD company.
Organizing
They provide job to the employees as per their skills and qualifications. They provide
training to the employees, so they can understand their task so employees can help to achieve
common goal of the organization. It is important for Iceland Food LTD company to have strong
Human resource to gain competitive advantages. HR mange has responsibilities in the for major
areas of Iceland Food LTD company such as benefits, staffing and employees compensation.

Main purpose of the HR manager to increase companies productivity by proving active workers
and potential employees who can work properly in the company.
Directing
They provide right direction to the employees and help them to maximize their efficiency
making them contribute maximum towards companies objectives and their goals. Tapping
maximum potentialities of an employee by constant motivation by the reward system and
command is a prime focus of the HR manger (Greer, Lusch and Hitt., 2017). The directing
function of the Human resource management encourage employees to give their best in the task,
so they can achieve the gaols of the company. In simple words directing function of the HRM is
to motivate employees by implementing motivational programs such as group practices,
development programs, training , seminars etc.
Controlling
HR manager of the Iceland Food LTD company control employees performance by
provide them training. HR manager record the performance of the employees. After collecting
the performance data of the employees, they provide training to them, so they can improve their
performance and help company to achieve competitive advantages. If there is no improvement
in the performance of employees after the training then they replace those employees with other
new candidates. HRM function controlling includes assessment, plaining and control of the
both, the performance of workers. HR controlling function helps to ensure advantages in the
competition can be developed and risk can should be identified which is involves in the Iceland
Food LTD company.
Operative functions
Recruitment& hiring- HR manager of the Iceland Food LTD company bring new
employees in the company who have skills to achieve goals and objectives of the company. It is
important for HR manger to recruit people who have right skills and knowledge for right job
(Leroy and et.al., 2018). There are some ways which is used by the HR manager during the
recruitment of the employees. They can take interview to watch confidence of the employees
and communication skills as well. Written test etc.
Job analysis & design
HR manager describe the nature of the job such as skills, qualification and experience
required for the particular job or any position in the Iceland Food LTD company. HR manger

find the hobs which is available for the candidates. After finding the job requirements in the
company they advertise post in the social media, newspaper, and various job application, so they
can get people who can work in the company and help to achieve goals. They also call
candidates according to their job profile and take their interview.
Performance appraisal
it is a process of identifying an employee who can contribute toward the company to
achieve goals and objectives. The physical factors such as efficiency of the employees ,
attendance, performance and amount of work maintained by the HR Manager of the Iceland
Food LTD company. They maintained records in order to provide compensation to the
employees packages salaries, and rises in their wages. This is important for them to record this
all factors to seep how their employees are performing and how they can engage employees to
give their best toward the organization.
Training and development
HRM department of Iceland Food LTD company organize training and development
programs in workplace. This is important for them to improve skills and performance of the
employees (Munjal and Kundu., 2017). Training makes employees batter, and they get change to
increase theirs skills, so they can take higher position the Iceland Food LTD company in the
future. Employees can develop new skills and increase their knowledge through the training
programs. Training and development programs prepare workers for the higher level
responsibilities in the company. If company will have employees who have necessary s Central
Systemkills and performance then Iceland Food LTD company can achieve higher growth, and
they can show their presence in the market.
Salary administration
HRM manager calculate salaries of the employees, and they also add some amount such
as insensitive, rewards, bonus etc. this is depends on their performance and target achievements.
Wages and salary administration is the process of paying salaries to the workers of the company.
This all done on the basis of Iceland Food LTD company's rules and these rules are developed
by the HR department (Nedelcu and Buşu., 2016). It is responsibility of HR manger to ensure
employees are getting fare salaries or not. They have to pay employees wages on right time and
correct amount by meaning payroll duties. Employees have rights to ask HR department if they
are facing any problem related to the wages and payments.

Employees welfare
HR manager of the company make polices related to employees welfare. They provide
employees rights such as equality and make them understand their rights by communication.
Employees can communicate with the HR manager if they are facing any issue related to their
polices etc. Employer of the Iceland Food LTD company can get skilled labour by providing
them facilities for their welfare. Employees have active role in the work or their job with their
participation. Welfare of the workers means ensure companies productivity and create good
industrial relation by maintaining peace in the industry. Employer of the company should
provide them a facilities to rise companies productivity and employees motivation. It will help
Iceland Food LTD company to show their presence in the market, and they can give healthy
competition to the top supermarket companies such as TESCO.
Maintenance
HRM maintain employees turnover in the company because if company will give job to
the more employees as compare to the requirement then it can affect on company's profitability,
and they can suffer from the losses. It is important for HR manager to fulfil requirement of the
employees in the organization. Less arability of the employees in the Iceland Food LTD
company can also affect the probability because company will not able to produce product
according to the demand (Noe and et.al., 2017). HRM also maintain effective workforce by
providing competitive salaries to the employees, salary schedules, current salaries and reward
benefits to them. They also develop leadership qualities in the employees, so they can lead other
workers and understand their responsibilities toward the Iceland Food LTD company.
Labour relation
HRM implement group practices activities in the workplace so employees can make
relationship with each other. Organization is the place where employees come from the different
culture. It can create conflicts between the employees because they are from different cultures.
Group activities helps to create understanding between people, and they all will work together to
achieve common goals of the company. It also increases the efficiency of the employees because
they can work with the people who have experience and knowledge. Iceland Food LTD company
cannot successful in their business if their employees are not working together, this practices
helps company to achieve their goals, and they can achieve their goals and objectives.
Personal research

Research is a necessary part of the HRM (Rahim., 2017). It is performed to keep check
on the employee's opinion about the wages they are getting in the Iceland Food LTD company.
It can also include promotion, welfare activities, employees satisfaction, leadership etc.
Decision-making
HR department managers plays important role in decision-making by implementing
strategies for Iceland Food LTD company. from this prospective of the company decisions
which is made by the HR manager directly influence to the company's competitiveness. Without
involvement of the HR manger company cannot complete decision-making process. HR manger
have proper knowledge of the strategies that how company can take competitive advantages.
Recommendation for Iceland Food LTD company
There are some areas of the Iceland Food LTD company, where they need some
improvement so company can gain competitive advantages in the market. One of them is training
of employees, employees need more training so HR manger should implement training program
for or seminars for the employees (Redman and Dundon., 2017). Training will improve their
performance and seminars will help them to gain knowledge from the experts from this industry.
Effective communication from the experts will increase their confidence, and they will give their
best toward the task to become successful person in their life. Employees can also increase their
working efficiency and skills.
Another areas which is needs to be improved is flow of effective communication in the
company. HR manager of the Iceland Food LTD company should look for this issue because
without flow of effective communication business cannot successful. They can run group
practices in the organization so employees can connect with each other. It will help company to
increase flow of effective communication and make employees relation better. Employees will
do their task in less time which will affect or the company's profitability.
Iceland Food LTD company does not give any rewards to their employees which is
disadvantage for them. HR mangers should implement reward system for employees, so they
will motivate and work with their full potential. Reward plays important role in the motivation of
employees, they should set the target for the employees and give them a bonus, incentive if they
are able to achieve those target. It will also help company to improve their growth performance,
and they can give competitive to the other big brands who have hole most of the market in
retailer industry.

Feedback system can help company to maintain performance of the employees. HR
manager can improve mistakes of the employees in the task through feedback. Employees can
understand where they need to improve and how they can help company to achieve objectives
and goals by giving their best in the task.
TASK 3
HRM software available online and best software for company
There are many HRM software which are available online. HRM department of the
companies can use this software for the selection of employees, recruitment, salaries & payment
etc. this software makes work easy for the HR mangers to select employees, and they also use
software to send automatic messages to the candidates who are selected in the interview
(Sparrow, Brewster and Chung., 2016). They will not need to write a message for their
selection.
Bamboo HR
Bamboo HR is the online system for the medium-sized companies. It is cloud based
system which offers integrated applicants tracking on the tool, there are more offers by this tool
are time-off tracking, e- signature, management of the performance with the help of easy
reporting and a convenient mobile app for the companies employees. This software frees HR
from the data management spiritual to become more effectiveness and more human.
Zoho people
This is also a cloud based HR solution which is suable for the all size of the business.
This is specially designed for all types of business so small size business can also use this
application. This system is used to track the time of the employee, attendance, employees self
services and many more. This software can also use of leaves in the company. Employees can
apply for the leaves by using this feature. Companies can also have a centralized view of the staff
and employees information by the location, leave types and their experience level in the
company. This software also allowed HR team to create custom modules by adding the tabs and
forms according to the need and demand (Stark and Jeffries., 2017). There is one more feature
which allow workers of the company to access their profile, and they can also change their
details as per the companies compliances. There is a file carbinet feature available on the Zoho
People allow HR team of the companies to save share and store their documents related to the
company or companies policy.

If company change any polices then their life notification feature will allow employees to know
the changes. Pricing of this software is based on the monthly subscriptions.
Zoho Recruit
Zoho recruit is web based employees recruitment software which allows all kind of
business to use their features. This software run ATS system which includes resume parsing,
automatic job posting according to the arability of jobs, stores resume and sedulous interview
dates etc. this application also includes multiple specialization application created to help users
collaborate with their peers to increase productivity.
Recommendation
Iceland Food LTD should use Zoho people software in their company because it can be
useful for them to manage employees performance and their timing (Stewart and Brown., 2019).
This system is used to track the time of the employee, attendance, employees self services and
many more. This software can also use of leaves in the company. Employees can apply for the
leaves by using this feature. Companies can also have a centralized view of the staff and
employees information by the location, leave types and their experience level in the company.
HR manager of the Iceland Food LTD company can track the leaves of the employees and they
can know which day they have taken the leaves.
TASK 4
Characteristics of effective leader and issues identified in previous tasks.
Leaders are most important for development of business at a large scale and work to
improve overall effectiveness of organizations goals and objectives. Iceland food LTD company
require leaders to innovate their organization services.
Clear about what needs to be done
Company need to be clear about their goals and objectives. Leaders work to fulfil those
goals of their organization and work to improve effort of employees(Gupta and Misangyi,
2018.). Leader need to clear about what organization wants from them and work according to
requirement of employees. Leaders analyse their employees skills and abilities require for
development of business, and help to improve performance of employees.
Confidence

Leaders need to be confident about their work and make all other employees to be
confident and work according to requirement. Confidence in employees help to achieve goals
and objectives easily. Iceland food wants to improve performance of their employees and
confidence help them to achieve their goals and objectives of business.
Inspire others
Leaders inspire others and motivate employees towards working of organization.
Inspiring employees improve their efforts and require to achieve their goals easily. Leader able
to handle worse situation in business and motivate employees to work effectively in those
situations.
Good communicator
Leader communicate organizations goals and objectives with employees to make them
effective to work according to requirement of business. Communication help to prepare strategy
to achieve goals and objectives of business. Good communication help employees achieve goals
and work according to requirement.
Decision making capabilities
Leaders play an important role in taking decision for development of organization at a
large scale. Leaders need to think before taking a decision for development of business. Leader
take decision that help to improve performance of employees.
Creativity and innovation
Leader need to be creative and work according to welfare of organization to achieve
their goals and objectives. Leaders must be creative and innovative to develop new products and
services that help organization to achieve their goals and objectives. In order to get an
competitive advantage creativity help in smooth working of business.
Transparency
Leaders need to share their opinions with employees. Need to increase participation of
employees in decision making of organization which help to achieve goals and objectives and
improve effectiveness of organization. Employee participation help to win trust so that they work
effectively. Share organizations rules and regulations with employees.

Encourage risk
Organizations development largely depends on working of leaders(Friedrich, Griffith and
Mumford, 2016.). Leader help employees to bring innovation about new product and take a risk
to develop plans for new product and service that they are providing to their customers. Risk to
bring innovation and work effectively for development of business.
Motivate employees
In organization changes always effect working of employees. Changes influence overall
development of employees. Leader work to motivate employees to work with full of their
efficiency in changing environment. Motivation help employees to improve their performance
and they are able to work effectively for success of organization at a large scale.
CONCLUSION
As per report has discussed Iceland Food LTD for case study. It is private retailer
supermarket and their aim is to provide quality product and services to their customers. This
report has been analysed HRM models such as Fombrun's, Harvard framework, Guest model
and Warwick model of HRM. This report has been explained functions and approaches of the
HRM and It has also concluded recommendation for improvement. This report has been
analysed HR software which can help to manage activities of employee. It has been concluded
software such as Bamboo HR, Zoho people, Zoho Recruit and also recommend the best
software for company. In the end of this report has been analysed characteristics of leader taking
into the consideration.

REFERENCES
Books and journal
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Chelladurai, P. and Kerwin, S., 2018. Human resource management in sport and recreation.
Human Kinetics.
Chen, L. and et.al., 2016. Transformational leadership, social capital and organizational
innovation. Leadership & Organization Development Journal.37(7). pp.843-859.
DeCenzo, D. A. And et.al., 2016. Fundamentals of Human Resource Management, Binder Ready
Version. John Wiley & Sons.
Di Fabio, A. and Peiró, J., 2018. Human Capital Sustainability Leadership to promote
sustainable development and healthy organizations: A new scale. Sustainability.10(7).
p.2413.
Friedrich, T.L., Griffith, J.A. and Mumford, M.D., 2016. Collective leadership behaviors:
Evaluating the leader, team network, and problem situation characteristics that influence
their use. The Leadership Quarterly. 27(2). pp.312-333.
Greer, C. R., Lusch, R. F. and Hitt, M. A., 2017. A service perspective for human capital
resources: A critical base for strategy implementation. Academy of Management
Perspectives.31(2). pp.137-158.
Gupta, A. and Misangyi, V.F., 2018. Follow the leader (or not): The influence of peer CEOs’
characteristics on interorganizational imitation. Strategic Management Journal. 39(5).
pp.1437-1472.
Leroy, H. and et.al., 2018. Managing people in organizations: Integrating the study of HRM and
leadership.
Munjal, S. and Kundu, S., 2017. Exploring the connection between human capital and
innovation in the globalising world. In Human Capital and Innovation (pp. 1-11). Palgrave
Macmillan. London.
Nedelcu, A. C. and Buşu, C., 2016. Managing employee’s resistance to change: A conceptual
model based on human capital perspective. In Entrepreneurship, Business and Economics-
Vol. 1 (pp. 153-164). Springer. Cham.
Noe, R. A. and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Rahim, M. A., 2017. Managing Diverse Situations in Organizations. Diversity, Conflict, and
Leadership.15. pp.1-9.
Redman, T. and Dundon, T. eds., 2017. Contemporary human resource management: text and
cases. London: Pearson.

Sparrow, P., Brewster, C. and Chung, C., 2016. Globalizing human resource management.
Routledge.
Stark, E. E. and Jeffries, F. L., 2017. Social Capital Via Leader–Member Exchanges: An Avenue
to Human Capital?. In Diversity, Conflict, and Leadership (pp. 117-136). Routledge.
Stewart, G. L. and Brown, K. G., 2019. Human resource management. Wiley.