Managing Human Capital And Leadership

This report examines the human resource management practices of Medavia Aviation Company Limited, focusing on strategic initiatives like E-HRM and I-HRM. It analyzes various HRM models, including the 5-P's model, and evaluates the effectiveness of different HR software programs. The report also explores the characteristics of effective leaders and the OCEAN model, highlighting their importance in managing human capital and achieving organizational goals. Desklib provides past papers and solved assignments for students.

Managing Human Capital
And Leadership

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
HRM models and analysis of the approach to management of human resources of company. . .1
TASK 2............................................................................................................................................5
Functions of HR in relation to strategic human resource initiatives and recommendations
regarding improvement................................................................................................................5
TASK 3............................................................................................................................................9
Human resource management software programs.......................................................................9
TASK 4..........................................................................................................................................11
Characteristics of effective leaders and OCEAN model............................................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Human resource management is the practice of an organization to hire & recruit, on-
boarding and management of company employees. Also, it is considered as the strategy and
approach of organization to manage the people with in the organization (Stewart and Brown,
2019). The report is explaining about Medavia which is a Mediterranean Aviation company
Limited company. Medavia aviation company was founded in year 1978 and operation of
company were started operating in year 1979. The head quarter of company is in Safi aviation
Park, Malta. The different strategical changes are explained in report to improve the efficiency of
company. Human resource Management models are explained to analyse the approach of
organization. Human resources functions are explained and evaluated to improve human
resources initiatives for better management of operations. The different software programs are
evaluated to find out their benefits. The qualities of effective leader are explained in report.
TASK 1
HRM models and analysis of the approach to management of human resources of company
There are various HRM models which are as follows -
The Fombrun, Tichy and Devanna Model
It is also known as Matching model of HRM. It is one of the oldest model. According to
this model, Company organizational structure and HR system should be co-ordinate and manage
in a manner which become suitable for the company. According to this model, HR has only four
functions. These functions are as follows – Selection, Appraisal, Development and Reward
system (Haida and et.al., 2018). This model also focus on the interrelationship between these 4
functions of HR. According to this model, if HR of the company will focus on these functions
effectively, it will bring organizational effectiveness and efficiency. But due to only limited area
and ignorance of environmental and another factors which can impact the human capital and
resources of the company, it is not considered to be a relevant model in today's time.
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The 5-P's HRM Model
The five p's model is considered to be strategic human resources model which is modern
model. This model are using by various companies in order to do their work within a particular
framework design by this model. In this model, there should be a proper arrangement between 5
variables which will help organization to improvement in their operations and organizational
structure (Models of Human Resources Management, 2011). These 5 variables are as follows -
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(Illustration 1: Matching Model
Source: Models of Human Resources Management, 2011)

PURPOSE – It refers to the reason for which company is running its business and business
operations. According to this model, purpose is the elements which reflect the intention of
organization for doing something in order to achieve that intention. It involves various sub
elements which are mission, vision, goals, objectives, strategies and tactics.
PRINCIPLES – It refers to the beliefs or guidelines or philosophy on the basis of which
company believes and follows a particular theory or model or system. According to this model,
Principle is the elements on the basis of which company is operating its business. It involves
ethics, core value, code of conduct and base of integrity etc.
PROCESSES – In general, processes refers to the series of actions or steps which are taken in
order to complete a task. According to this model, Processes of the company refers to the formal
procedures, structures and systems through which company is able to provide their products and
services to their customers.
PEOPLE – It refers to the individual or group of individuals who perform for the organization in
order to fulfil the needs and wants of themselves. They are considered to be the most important
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(Illustration 2: Five P's Model
Source: What Is The 5P'S Model ? Description,
2019)

asset for the organization. According to this model, people work in systematic manner in order to
co-ordinate with the process and principles of organization for the achievement of organizational
goals as well as personal goals.
PERFORMANCE – It refers to the activities and actions which are carried out by the individuals
in order to completion of tasks. According to this model, Company must have to look upon the
performance of employees on the basis of indicators and measure the performance according to
that indicators. After that company will send feedback to the employees in the case of deviation
from indicators.
The Guest Model
This model is considered to be better model in regard of another models. Because guest
model focus on the strategic aspect of management of human capital and resources of company
unlike another models which mainly focus on the personal development & management of
human capital & resources of the company.
According to this model, employees relationship is the sum of the individual relationship
which he / she shares with the organization. Thus, organization should focus on the needs and
wants of its employees in order to maintain and improve the relationship (Belso-Martinez,
Palacios-Marqués and Roig-Tierno, 2018).
In order to focus on the needs of an individual, this model has describe 6 basic elements
which are as follows -
HRM pratices
HRM outcomes
Behaviour outcomes
Performance outcomes
Financial outcomes
Analysis of one model in the context of Mediterranean Aviation Company Limited
Mediterranean Aviation Company Limited (Medavia Company) is using “The 5-P's
HRM Model” in order to manage its human capital and resources. This model focus on the
company's following aspects through which company's efficiency will improve. The application
of this model in the context of company is follows as -
PURPOSE – Company's purposes are to earn profit and gain competitive advantages within the
Malta Market.
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PRINCIPLES – Core value of the company is a commitment to sustain the business and provide
excellence services (What Is The 5P'S Model ? Description, 2019).
PROCESSES – Company uses hierarchical structure in order to fulfil their objectives.
PEOPLE – Company provides open communication system and flexible working system to the
employees in order to make them satisfied.
PERFORMANCE – For the performance measurement, company uses 360 degree feedback
system.
Through this model, HR of company is facing following issues regarding not able to
manage workforce and not able to resolve the team conflicts.
TASK 2
Functions of HR in relation to strategic human resource initiatives and recommendations
regarding improvement
There are various strategic initiatives which are using by Mediterranean Aviation
Company Limited (Medavia Company). These initiatives are as follows -
ELECTRONIC HUMAN RESOURCES MANAGEMENT (E-HRM)
E-HRM can be define as the application of information technology on the planning,
staffing, implementing and monitoring the human resources and capital of the company. It is
done by human resource department of the company (Marler and Parry, 2016).
In the context of Mediterranean Aviation Company Limited (Medavia Company), Human
resource department has to carry out the following functions related to the E-HRM -
Recruitment & Selection
In this function of initiative, Company applies information technology to their
recruitment and selection strategy. For this, company has started a mobile and computer
application in which candidates can save its resumes in it and whenever company needs
employees, they will use resumes for the recruitment. On the basis of that resumes, company will
call suitable employees and will book a date for the online interview. After online interview,
company will select the suitable candidates for their required posts.
Advantage – Through information technology, company consume less time in recruitment and
selection which lead HR to focus on another important work.
Disadvantage – Selected candidates may not be capable to perform required job which lead
company to waste its time, efforts and costs.
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Human Resource Development & Training
After selecting suitable candidates, Company can provide those candidates online
training service in which trainers of the company explain everything related to the job and
required skills and knowledge. After acquisition of skills and knowledge, there will be a little
development of employees as a professional. Also, company can conduct online examination
regarding their organization and their works. This will increase the confidence of company on
selected candidates.
Advantage – Company provide trainer and training related materials online which lead company
not to bear extra costs which company has to bear with offline and traditional training facilities.
Disadvantage – There is no personal touch between trainee and trainer which lead to no
guarantee that employees are able to acquired skills and knowledge or not.
Employee Motivation
For the building of relationship with employees, for the retention of employees in the
organization and for the improvement in satisfaction level of employees, company should focus
on the employee motivation. Because it is said that when employees are motivated, they do their
work with focus which improve their efficiency and increase the satisfaction level. For the
motivation, company can apply information technology in this area. For that, company can show
employees story of successful businessmen and motivational speaker online. Also, company can
conduct events in which employees can participate in the online games which make employees
happy.
Advantage – Motivated employees are considered to be satisfied employees who make working
environment of organization good (Kasemsap, 2019).
Disadvantage – it is not always necessary that by this motivation initiative, employees get
motivated.
Performance Appraisal
It is considered to be main function of human resource department as they have to
appraise their employees' performance and accordingly give them feedback for the improvement
of their performance. Company can use various information technology in order to measure the
performance and feedback to the employees. For the performance appraisal, company can
develop and use their own app through which managers and supervisors will track and appraise
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the performance of their employees and give them feedback through telecommunication
technologies.
Advantage – Due to this, performance appraisal is becoming paperless. Also, the apps which are
using for the appraisal are user friendly.
Disadvantage – The costs for development and improvement of the application for performance
appraisal is high which lead company to bear a lot of costs.
INTERNATIONAL HUMAN RESOURCES MANAGEMENT (I-HRM)
I-HRM can be define as the planning, staffing, implementing and monitoring the human
resources and capital of the company at the international level. It is done by human resource
department of the company. It is done for the achievement of organisational objectives and gain
the competitive advantages over its competitors at the international market.
In the context of Mediterranean Aviation Company Limited (Medavia Company), Human
resource department has to carry out the following functions related to the IHRM -
Recruitment & Selection
In this function of IHRM, company is hiring and selecting the candidates from various
countries in order to bring efficiencies in the organisation. For the performance of this function,
company go to the various countries and do follow the whole procedure of recruitment and
selection of the employees. It is a complex process due to different education level and different
criteria for the selection of employees (Al Shobaki and et.al., 2017).
Advantage – Due to cross countries' recruitment and selection, Company is able to perform
under the cross cultural environment as well as manage the cross cultural environment easily.
Disadvantage – Due to recruitment and selection from various countries, Employees from
another country are not able to understand the local language of host country.
Human Resource Development & Training
In the case of international HRM, there will be cultural diversification which can lead
company to face so many issues. In order to prevent from these issues, company wants those
employees who are multi lingual and have multi cultural skills. Thus, company provide them
training and development opportunities for the acquisition and improvement of multi lingual and
multi cultural skills.
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Advantage – Training provided to cross cultural employees regarding various languages will
increase their knowledge. This help employees to able to build good relationship with their
customers.
Disadvantage – It is a time consuming process with a lot of costs for the various training and
programs such as Cultural sensitization programmes, Language training, Practical training and
Preliminary visit etc.
Employee Motivation
At the adoption of IHRM initiative by the Medavia Company, organisation has to adopt
new ways to provide various benefits to the employees in order to motivate them. It is important
for the organisation to motivate their employees at the international level as they might feel
pressure on themselves as everything is going to level up.
Advantage – Due to international HRM standards, some employees get self-motivated as they
feel like they are doing work at the international level which excite them and motivate them.
Disadvantage – Due to high standards, complex policy and cross cultural dimensions, some
employees may feel pressure at workplace which lead them to demotivate and their satisfaction
level may also decrease.
Performance Appraisal
In the international context, performance appraisal becomes complex due to different
criteria for the measurement of performance and different tools are being used by company for
the employees' performance measurement. Measurement of performance is done by the
comparison of the performance with the pre-defined parameters of company which is relevant at
the international level (Brewster, Chung and Sparrow, 2016).
Advantage – Due to high standards at the international level, both employees and managers of
the company try to improve their performance standards and efficiencies in order to match with
the international standards. This lead company to achieve their organisational goals as there is
improvement in the overall performance of company.
Disadvantage – Due to international context, performance appraisal become more complex for
the company.
Recommendations regarding improvements
The use of technology in human resource practices can improve the effectiveness of HR
function of organization. The meaning of E HRM is to implement the different internet and
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digital systems in Human Resources department of Medavia. The things like cloud computing is
better option for Medavia to shift on E Human Resource Management. This can improve the
performance of HR practices. This can provide mobility to the function of department. This can
help the Hrm department to track the employee movement from remote location. This will
improve their working speed. The storing of data and data management is more effective than
other methods. The management of employees through digital method can allow the HRM to
track details of individual employee. Training through digital methods will improve the speed of
training and development unction of HRM.
The different other factors of e HRM can help the organization to the other thing is the
international HRM. The globalization of HRM standards can help company to operate on the
international level. The both thing E HRM and International HRM can be used together to
improve human resource practices. If the policies of HRM are common on the global platform
will make the function more vast. The e HRM function can be operated on global level by
putting this system online. The common international standards of human resource management
will make recruitment, training & development and other operation. The technologies like radio
frequency Identification, Block chain management and Artificial Intelligence can also improve
the actions of HRM practices. Artificial intelligence can minimise the work load of HRM and
can provide better efficiency to them. The technology like RFID can improve the employee
behaviour tracking to manage reward management and employee relation. The other system like
information and data system can improve the operations of HR department. The International
HRM can help to implement different strategy by considering the experience of other people or
organization. The HR function like training, development and reward management will be more
effective by use of digital management and storing of employee data. The data storing and
processing will be more effective of the company.
TASK 3
Human resource management software programs
HRM define as procedure of managing workforce in organization, it helps to managed
workers. In additional, human resource management responsibility is to hire, trained and
motivate new and existing employees (Hunt, 2014). They are responsible to organized each and
every activity of staff within effective manner that give many advantages to firms. In many
companies HRM used Human resource software which combine number of essential HR
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functions and activities such as storing worker data, benefits administration, managing payrolls,
keeping track of attendance in workplace and recruitment procedures records. With the helps of
human resource management software programs, HRM assure that HR procedure is manageable
and well organized as well as easy to access. HRMS give many benefits to human resource
management of company, they help to improve productivity of human resource which is one of
the most essential for businesses. Medavia, HRM used human resource software that support to
managed every day activities of department and organized data about staff members efficiently.
There are the three types of human resource management software programs that is
available for Medavia.
Workday Human capital management software-
HCM software define as applications that is intended to support company maintain and
manage its workforce, it also refers to human resource management system or HRIS. Generally,
it considered as to be firm software that automate procedures and scale up like performance
reviews, training and recruiting and payroll (Brinia, Zimianiti and Panagiotopoulos, 2014).
Company HRM can used this software to managed their daily actions and feed data about staff
attendance. It is the combination of various software instead of time sheet software, human
capital management software and having payroll software integrates all these functions into one
platform. It helps human resource management of companies to set their plan for future staffing
if it is required by sharing data with other enterprise software such as ERP (Enterprise planning
software). In short workday HCM gives absolute visibility to firms into global workforce and
also provide better experience, so HRM can keep workers engaged and help them to grow more
and more rather than before.
Infor Cloud Suite HCM software-
It is a cloud based solution for HCM that is more complete than any other in specific
sector. With the helps to this software program organizations get all talent optimization abilities
according to their need. It is unique and different types of tool that permit applying predictive
analytics across talent procedures in order to support Human resource and leaders of business
make more informed decisions. Furthermore, Infor cloud suite human capital management
software helps to optimize labour compliance and efficiency (Joo, Lim and Kim, 2016). It
considered as one of the best program that managed time, labour optimization, attendance and
planning.
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Orcale Fusion HCM cloud-
Orcale Fusion human capital management cloud is the best applications and new or latest
software that helps HRM of company to managed its work or performance daily. It is new
generation of cloud based HCM application that helps Leader in Human resource management
and also support business to drive more towards success and growth. It is the one of the leading
vendor of HCM software mostly used for mid size to bigger organizations. It contributes to
manage workers lifecycle for 40 million employees in 14,000 companies across 40 countries
today.
Orcale fusion HCM software as best and suitable program for Medavia-
Orcale fusion is an application that managed work of workers and activities based on
daily routines such as work, attendance etc. it builds for comprehensive organizations such as
Medavia. It considered as the best application for organization, Orcale Fusion helps to know
more about workforce better than before. This software is designed for companies to get more
details about their workers easily. It helps firm to analyse employees performance, risk of
attrition and potentail. It also supports Human resource management of company to predict
future performance of staff, that is why Orcale fusion HCM application is better for organization.
This software or application provide many powerful features and abilities to firm to accelerate
their time of value.
TASK 4
Characteristics of effective leaders and OCEAN model
Leaders is a person who do right thing such as manage workers performance and
motivate them to work hard and better. Leader always posses with clear vision, has integrity,
humility, courageous, honest and clear focus. Leaders will always help people around workplace
to reach it professional and organizational goals.
Creativity and innovation, motivation, communicator, honesty and integrity, decision
making abilities, passion and flexibility are the main characteristic of leaders that helps to
managed and organized their work effectively.
Creativity is the main characteristic or trait of effective leaders, it is very essential that
leaders must have creativity in their nature and always being creative which makes them able to
inspire workers in company (Di Fabio and Peiró, 2018) . Creative leader help to motivate staff to
develop and generate creative and original ideas that support to gain profit and increase
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productivity of firm. By facilitating creativity in workers leaders increase workplace satisfaction
and helps to build team or group of people that perform with enthusiasm.
Communicator, leaders will always be good communicator that help to keep workers on
right path and give advice to them about solving any issues. In above work, it has been
mentioned that workforce planning is the main issue faced by human resource management in
Medavia company. As leader play important role to solve their problem through communication,
they try to managed staff performance and style of working that helps to gain organizational
desired goals and business objectives. If leader communicate effectively about its expectations,
advice and issues, their staff members will be more likely to meet goals and react efficiently.
Flexibility, it is another characteristic of effective leaders which help to make business
more successful and powerful rather than before. Leaders must be flexible in its working styles,
they are also been adjustable and being flexible to open minded and new ideas. They can be able
to adjust itself in any working situation as well as also must drive team towards flexible working
environment that help to increase profitability and gain better outcomes.
OCEAN Model-
OCEAN model is also known as big five personality traits and also known as FFM (Five
Factor Model). This model is based on five factors, that define five types of characteristic of
effective leaders.
Openness to experience-
Openness is commonly appreciation for emotion, curiosity, imagination and variety of
experience. Leaders with openness trait is open and set mind to experience new things and try to
enhance performance of workers by applying new ideas and concept of work. Leader must be
able to quickly understand things and take action against it for betterment.
Conscientiousness-
Conscientiousness is another trait, it is tendency among leader to display self discipline,
strive for achievement against evaluate or outside expectations (Kellis and Ran, 2015). With the
help of this characteristic leader can be able to control workforce and direct its impulses. High
and low conscientiousness are they type of this trait.
Extraversion-
It is characteristic of leader by breath of functions or activities as opposed to depth, leader
must be extraversion, they try to work hard and find new options for success.
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Agreeableness-
Leader with agreeableness value getting along with others, they must be kind, trusting,
generous and helpful that helps to motivate staff.
Neuroticism-
Neuroticism is tendency to feel and experience negative emotions such as anxiety, anger
and depression. Sometime is also considered as traits of leaders that impact on their performance
and working capabilities. Leaders sometimes get worried about their work and things, they have
frequent mood swings.
CONCLUSION
The present report summarized Human resource management functions and activities and
different types of model such as Fombrun, Tichy and Devanna Model, The 5-P's HRM Model
and The Guest Model. The 5-P's HRM model is one of the best approach for Mediterranean
aviation organization that helps to increase it productivity and profitability. It has been concluded
that electronic human resource management and international HRM have different strategic
initiatives used by company to gain profit. Recruitment and selection, employee motivation, HR
development and training and performance appraisal are the types of Human resource
management function which helps to grow business more than before. This study discussed
about different types of HRM software such as Orcale fusion HCM software, Workday Human
capital management softwareI and Infor Cloud Suite HCM software, all these are very beneficial
and effective for company. But Orcale fusion HCM software is better and applicable for
Mediterranean Aviation Company Limited (Medavia) as it helps to managed workers attendance,
performance, and other activities within organization. Furthermore, OCEAN model is one of the
best model that define various types of leaders traits that helps to grow employees professional
and personal career.
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