Human Capital Management and Leadership

This assignment delves into the critical aspects of human capital management and leadership, focusing on the intersection of HRM and organizational performance. It presents a comprehensive overview of relevant literature, highlighting the significance of effective human capital management for sustainable development, innovation, and strategic implementation. The assignment also discusses the role of HR software in managing people as assets and promoting healthy organizations.

Managing Human Capital
and Leadership

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
HRM models and approach of the company to the management of its human resources......4
Task 2...............................................................................................................................................6
Critically discuss the organisation’s HR functions................................................................6
Task 3 ............................................................................................................................................10
Based on the criteria identified in the previous tasks, critically evaluate a number of HRM
software programs that are available off the shelf................................................................10
Task 4.............................................................................................................................................12
Characteristics of effective leaders taking into consideration all the issues identified in the
previous tasks.......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

ABSTRACT
Document has showed how, HR practices helps a business organisation in reaching to
new heights in specified time frame. In present business environment, it is hard to manage the
human capital along with the leadership in organisation at the same time. With the help of skilled
and effective staff members, organisation will gain number of competitive advantages. Since
everything has got changed from things like technology, needs of the customers and more it has
become difficult for business organisations to sustain.
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INTRODUCTION
HR practices can be defined as the actions that has been taken by the Human Resource
Department of a business organisation to manage the manpower or all the employees of the
company (Browne and et. al., 2016). Due to change in course of the whole business environment
because of digitalization and other factors, it has become vital for companies to built themselves
up so that they can sustain in the market for a longer period of time. Present report is based on
one of the famous multi national business organisation named as Marks and Spencer, which was
found in the year of 1884 and presently headquartered in Westminster, London that specialises in
selling high quality clothing, home products and food products. Along with this, assignment is
going to be enclosed with HRM models, functions, different range of HRM software programs
and lastly the assessment will also put light on characteristics of effective leaders.
Task 1
HRM models and approach of the company to the management of its human resources.
Human resource management is being considered as a department within an organisation,
which basically deals with all the issues that stays related to manpower all the human capital. It
is the responsibility of HR manager to deal with all the issues which are being faced by
employees of a company and take initiatives in order to remove all the risks that are present four
staff members within an organisation (Budhwar, 2016). In the same way, Marks and Spencer has
also faced issues regarding the same due to change in course where company was looking
forward to expand its business. This has raised issues like the motivation among staff members
due to promotion to others, communication gap, dissatisfaction with the salary and many more
issues. In present context, in order to resolve issues related to manpower, HR manager of Marks
and Spencer easily take in use of different range of HRM models. With the help of this, it can
easily be said that human resources of the company can easily be managed. Some of these HR
models are given underneath:
The Fombrun Model : This is being considered as one of the crucial model that is
available for HR managers, which shows or relies upon four different functions of the
management (Di Fabio and Peiró, 2018 ). Basically, this model says that all of these functions are
interrelated with each other at the time of working on a particular area and that is human
resource. All of these four functions of HRM are Selection, Appraisal, Development and
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Rewards which basically considers all the requirements that an employee can have from the
organisation. In present context, HR manager of Marks and Spencer can use this type of model
to deliver a range of benefits to its staff members. But this module cannot offer detailed benefits
to both Marks and Spencer and the staff because it is incomplete as it focuses on only four
functions of HRM and ignore all other environmental and contingency factors.
The Harvard Model : Another model which could be utilized by Marks and Spencer,
because it has 6 major components that are coming much more fruitful within the human
resource management and these are interest of the stakeholders, situational factors, HR
outcomes, long term consequences, HRM policy choices and lastly the feedback loop. All of
these factors might help HR manager of Marks and Spencer to develop policy as per the
requirements of the customers, trends, risks present in the market and feedbacks given by
different economists. Considering all the factors, HR manager of Marks and Spencer could take
actions for the purpose and that is Business expansion through managing staff as per the
requirement of the company.
The Guest Model : In the year of 1997, this model was propounded by David Guest,
basically this model relies upon assumption which an HR manager develops at the time of
achieving targets of the company (Garavan and et. al., 2016). In context of Marks and Spencer,
model can effectively be utilized by HR manager of the company developing specific strategies
in order to start focusing upon business expansion looking at the demand that customers are
having. Basically, it is the responsibility of HR manager to deliver training to staff based on the
requirements of the company and just when the desired goal is being achieved staff member who
was been a part of the goal gets the financial reward. This also may consist with different range
of components like HR practices, outcomes, behavioural outcomes, performance results,
financial consequences, strategy and more.
The Warwick Model : Hendry and Pettigrew are the two researchers who propounded
Warwick model (Greer, Lusch and Hitt, 2017). Basically the prepositions of this model relies
upon different range of elements and these are given underneath-
 Outer context (macro environmental forces)
 Inner context (firm specific or micro environmental forces)
 Business strategy content
 HRM context
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 HRM content
It can be said that this model was built on both business strategy along with HR practices
considering external content and internal content (Leroy and et. al., 2018). In present context, It
could help a business organisation like marks and Spencer HR manager to make decisions for the
company based upon the changes which organisation is looking forward to made.
The Guest Model could be considered as the best method, which Marks and Spencer's
HR managers uses in order to develop its performance level of Human resource department in
much effective and efficient manner.
Task 2
Critically discuss the organisation’s HR functions
In present time, it has been analysed that human resources department handles a range of
different functions within an organization (Manuti and De Palma, 2016). The department is
responsible for hiring and firing employees, training offered to the workers, developing
motivation, human resource development, raising performances of employees, maintaining
interoffice relationships and interpreting employment laws. The department works diligently
behind the scenes to ensure an organization runs efficiently. If it is talked about Marks and
Spencer then it can be said that organisation is willing to expand its business and this can only be
done through having effective management of staff members which could help the business
organisation in enlargement of the operations. There are range of strategic human resource
initiatives that can be taken by the business organisations like Marks and Spencer which could be
anything from motivating staff members, raising performance level of the employees, building
up an effective recruitment and selection process and more. All of these are part of HR functions
that has been used by HR department of Marks and Spencer. HR functions and their effective use
are mentioned underneath:
Recruitment and selection process : This is been considered as one of a crucial function
of HR department of a business organisation because it could help a company in recruiting the
best employees that might help business organisation in reaching to an all new level. Basically,
Marks and Spencer is having a good name in all over the world as a retailer of clothes and many
other sectors like grocery and more (Mayo, 2016). Due to change in course, needs of customers
has got changed and this has altered the way of doing business as well. If a company like Marks
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and Spencer offers customers with outdated products whether it is related to clothes or any other
sector, it is very possible that business organisation may go through a range of difficulties and
that could be anything from decrease among profit margins, reputation or sales of production
services that are being offered by Marks and Spencer (Morley, Heraty and Michailova, 2016).
All the risks that are linked with the business environment related to the change can easily be
reduced through recruiting candidates with an effective mind. Basically, the approach within the
recruitment and selection process is being used by Marks and Spencer is an online recruitment
system. This helps in pulling out favorable outcomes for the new candidates where they can get
the information related to company and more in specified time frame. On the other hand, it can
also be said that, this type of approach, sometime may not offer employees with right knowledge
for which a company is looking for. It is the responsibility of HR manager of Marks and Spencer
to develop recruitment and selection process much more effective in order to sustain in the
market for a longer period of time. This process basically sets the roots of Marks and Spencer
because recruiting people brings innovation as well within the company. Therefore, it is much
required for HR department of Marks and Spencer to have an effective policy linked with the
recruitment and selection process. Its importance can be measured with the help of an example,
where customer is confused what to buy. Here, an effective employee could easily help the
individual to look into different range of alternatives that are being provided by Marks and
Spencer this directly helps company in building relationships with customers for a longer period
of time.
It is recommended for HR department of Marks and Spencer to keep on look into the
policy that they have developed for new candidates who are looking forward to join the company
where they could provide knowledge related to compensation provided by the company,
incentive scheme and many other facilities. It is also recommended that, instead of hiring new
staff, it is required for M&S to promote existing ones for a higher designation as they know
much more than a new talent recruited by the company.
Human resource development : Another HR function which could help a business
organisation in reaching to all new Heights. The term Human Resource Development (HRD) is
the framework for helping employees to develop their personal and organizational skills,
knowledge, and abilities (Munjal and Kundu, 2017). If it is talked about Marks and Spencer,
then it is required for company to look into human resource development as well because it is
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directly connected with both staff members and the company. It is required for HR manager to
develop both organisational and personal skills along with the knowledge, abilities and
performance level of the staff members. Here, incentive scheme is utilized by Marks and
Spencer, which might impact upon company in both positive or negative manner. Here, incentive
scheme given by Marks and Spencer will directly motivate staff of it. On the other side, it could
impact upon profit margins of the company. This can only be done through offering staff with
great incentive schemes through which they can feel motivated towards their work. It can be
said that less motivated team member within an effective team good directly impact upon overall
productivity of the squad. Motivation decreases due to lesser fulfilment of needs of staff which
could be related to anything from taking a leave, looking at the promotion of colleague who was
performing with the individual. Here, it is needed for HR manager to look into all the needs of
staff members and specifically take appropriate decisions on them so that motivation can be
given to them to work within Marks and Spencer. This could be understood with a good example
of promotion where an individual got it through working hard and his colleagues who was
having more experience than him was not got promoted (Noe and et. al., 2017). This filled
demotivation within the individuals who did not got promoted. It is required here for the HR
manager to deal with the situation in order to rebuild the confidence among the individual, which
was not got promoted.
It is recommended over here is that, Marks and Spencer needs to offer different range of
services to its employees like flexible hours, bonuses in terms of money, develop effective
employee policies regarding their leaves and more. This will directly help Marks and Spencer in
building its human resource development regarding criteria.
Performance Appraisal: Employees for every single business organisation are
considered to be as its assets because without them company cannot sustain with the market for
a longer time frame. Along with this, just having the employees is also not a good think for a
company and unless they are doing something productive for the company. It is required for
organisation to keep on looking into the performance level of its staff members and this is mean
living done through Human Resource Department. This is why, performance level of employees
can be considered as one of the main element of HR functions for a company. If it is talked
about Marks and Spencer then HR manager of this company would required to to keep on taking
chances for the staff members so that their performance level can be increased and this can be
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done through different range of software, offering them with the motivation in terms of
monetary and emotional sense. Along with this, it is also required for HR manager of Marks and
Spencer to set targets for staff members and ask them to meet their daily basis so that they could
meet their goals and objectives. This will directly put positive impact Marks and Spencer
productivity and profitability as well. Behavioral Approach is being utilized by Marks and
Spencer that helps HR manager to appraise individuals in specified time frame. This helps in
building staff members much more fruitful for the company. On the other hand, it's negative
impact can be seen through decision made by HR manager in regards to promoting individual for
an upper designation. Along side this, performance level of other members can get affected as
they did not get the same.
It is recommended that HR manager of Marks and Spencer to use performance raising
software which might help individuals in looking into both stronger and the weak points as well.
This will help staff members in reaching to the new techniques through which they can make
weak points much stronger and strong points to become much more powerful for them. With
the help of this, Marks and Spencer could gain competitive advantages within the present crucial
business environment (Popescu, Comanescu and Sabie, 2016).
Motivation given to the staff members : Motivation plays a crucial role not only in an
employees work life but at personal level as well. This is why, motivation is being considered
as one of the vital most HR function that helps staff members in becoming much more
productive for the company. Motivation is ultimately linked with the need of an individual.
Basically, staff members within Marks and Spencer are working but not with the motivation,
then it is possible that Marks and Spencer may not attain its specific goals and objectives. It is
required for HR manager to focus on different range of needs of staff members through which
motivation level among them can stay up. This can be done through offering employees with an
effective compensation policy linked with monetary or an incentives that would help staff
members in earning good money through giving extra time to the company. It is beneficial
because motivation given to the staff members will directly impact positively upon their
performance level and it is may possible that for earning a good money, staff members who
started giving their extra time to Marks and Spencer.
It is recommended that, Marks and Spencer is required to make alterations within their
staff policies and start offering them with extra curricular activities with their could play with
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other colleagues within the campus or the building of the business organisation. This will
directly help Marks and Spencer in developing employee engagement which is eternally
beneficial for the company and for staff members as well because we got the opportunity to show
their capabilities to the beyond (Renz, 2016).
Training and development program : Training and development program referred to the
actions taken by HR manager to improve skills and capabilities of staff members so that they can
help company to survive in both crucial and normal times. It is being analysed that, technology is
upgrading every single month where it becomes vital for a company like Marks and Spencer to
adopt those alterations so that they could survive and give hard competition to its rivals. This
could be understood with a good example where Marks and Spencer has brought a new
machinery for their clothing sector but the team which was handling it do not know about the
machine. It is possible here for employees to feel fear year of losing their own jobs within the
company as they do not have any knowledge in regards to the technology which company is
going to use in near future. Here, it is required for HR manager of Marks and Spencer to give
training for the the new technology that company is going to use so that it could be utilised for
betterment of the company. That means, with the help of training staff could easily my become
successful in using the the new and updated technology which has been adopted by the company.
With the help of this, skills and abilities of staff members my directly improves capability of the
company to reach to desired position to successfully given rivalry to its competitors like spirit,
Tesco, Zara and more (Smith, Lewis and Tushman, 2016).
It is recommended for HR department of Marks and Spencer to first examine the
necessity of conducting the training and development programme. Once this is being done then
the whole training thing needs to be started for staff members.
Task 3
Based on the criteria identified in the previous tasks, critically evaluate a number of HRM
software programs that are available off the shelf.
It has become hard for business organisations to deal with the manpower which are
working at international level, this has made companies to realise that adopting the software
linked with the HRM could help them in maintaining the manpower or staff members. It is being
analysed that for company like Marks and Spencer, there are a range of software present on the
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Internet that can be used, which could easily resolve issues that are complex in a short instance .
But adopting these type of software is also impacted up on profit margins of the company as well
because organisation would required to be properly be engaged with its customers along with
the staff members because then only e a solution can be pull out from it. On the other hand, it is
also vital for Marks and Spencer to know the worth of the software that they are going to use to
manage its staff because this software can be expensive as well which might impact on profit
margins of the company. In present context for Marks and Spencer there are a range of software
available which will be used are given underneath :
Kronos : Kronos is being considered as one of a crucial workforce management software
that can be used by Marks and Spencer in order to manage staff. Basically, Kronos offers a
single unified platform for end-to-end HCM with recruiting, on boarding, core HR, training and
development, benefits, performance management, compensation, succession planning, time and
attendance, scheduling, labour activities, absence management, payroll, and labour analytics.
Workforce Dimensions leverages the latest smart technologies to help Marks and Spencer
optimize their workforce for stronger business outcomes.
Oracle human resources cloud : Since the businesses are growing for the companies like
Marks and Spencer,it has also raised issues in regards to the manpower on the workforce. Large
business organisations like Marks and Spencer have many of the same HR issues as enterprise-
sized counterparts.. The right people in the right jobs can make a huge difference for within the
Marks and Spencer and for its brand as well. It is being analysed that, Rapid growth can add
additional pressure. Staff members might basically have many options in advancing the overall
business of the company, it is may be possible that eternal of Marks and Spencer would required
to look outside of the four walls in order to manage all the manpower related issues. In order to
sustain Within the present competitive environment, it is required for Marks and Spencer to
focus will have to fight to keep the best and the brightest. Therefore, Marks and Spencer need a
flexible and agile cloud-based human resources (HR) solution that allows company to
streamline departments and processes, while ensuring that organisations talent structure fits any
growth or business strategy (Best HR Software Comparison, 2019).
From all of the above mentioned HRM software program, it can be said that for Marks
and Spencer Oracle human resources cloud can easily be considered as one of the most crucial
program that could help company in maintaining the overall decorum of it in all over the world.
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Basically what the software can do for Marks and Spencer is, it lead individuals to deal with the
right individual at correct position.
Task 4
Characteristics of effective leaders taking into consideration all the issues identified in the
previous tasks.
An effective leader refers to a person who has the abilities to influence number of people
working in the organisation to pursue it or achieve goals of the company. Appropriate guidance
and directions are two features of a good and effective leader. Along with this, leader should
have the competencies to motivate others and make them have the commitment for the
achievement of the tasks. Leadership is a skill that is possessed by leaders requiring visualisation
of vision which is to be targeted. The characteristics that makes effective leadership are as
follows:
 Ability to influence others: A leader should be a personality who can influence his team
members to perform in an efficient way so that individual goals can be achieved without
any difficulty. It requires exchange of ideas so that employees feel motivated to work in
the way the leader wants. Also, this is about changing the perception of subordinates for
good results. Leaders of Marks & Spencer can help reducing the negativity from
workforce and persuade them to work in the allotted time frame.
 Transparency: There should be a clarity of organisational goals which is the the
foundation of creating the trust of personnel on their leaders. An effective leader always
make sure that his team members understand the roles that have been assigned to them
and carry the work within the authority provided to them. This helps in increase
participation of employees which tends to give a sense of belongingness and emotional
attachment with the company. Marks & Spencer's leaders should promote collaboration,
knowledge sharing and accountability in all the fields for increasing the productivity.
 Encourage risk taking and innovation: This characteristics is directly related to
competitive advantage of an enterprise. This requires leaders to have experiments in the
existing activities by taking risks through introducing various innovation. This feature of
leader can develop in subordinates tendency to accept the failure and change the pattern
or structure of doing the work which involves innovation. Employees’ creativity is
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appreciated in this way. Marks & Spencer’s leaders business environment which might
affect the position of the company in the market so that guidance and direction can be
provided to it’s personnel. This can be done by giving awards in the form of monetary as
well as non monetary (Vasilaki and et. al., 2016).
 Value ethics and integrity: It's one of the main characteristics of an effective leader
whereby leaders with high ethical standards tend to be liked by all employees. This helps
in promoting fairness and justice in the organisation which boost the confidence of
people working out there. Further, effective leaders bring all the employees on the same
page by valuing the ethics and integrity. The leaders of Marks & Spencer should have
this quality so that the workforce abide by all the rules that have been imposed by the
entity. This will help in reducing unnecessary burden and disputes.
 Decision making: It is about making decisions on the basis of evaluation of various
factors that have affected or might affect business. The business environment is changing
expeditiously which calls for right decision making in the complex matters. Therefore,
leaders of Marks & Spencer should obtain the views and ideas of employees in decision
making as they can contribute to understand the major problems of the company.
Leadership model: The leadership model that can be applied to justify the above
analysis is mentioned below:
 Democratic leadership model: The essence of this model is to engage employees in
decision making (Pasban and Nojedeh, 2016). By adopting this model, leaders of Marks
& Spencer can have creativity and talent of the workforce. This leadership model is
basically being followed by leader of M&S, as it offers transparency among individuals
(leaders and employees itself). This provides high job satisfaction which in turn increases
the productivity and long-term retention of best performing people. For a large company
M&S, this model is appropriate as it has to make many decisions to survive in fierce
competition.
CONCLUSION
With the help of mentioned report, it can easily be said that human capital plays a crucial
role for a business organisation and helps it in reaching to new heights. Focusing upon effective
leaders, within a company aid it in hitting targets so that company could reach to desired
position. Along with this, it can also be said that HRM models could help a business
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organisation in managing its manpower. Functions of HRM not only stay is beneficial for the
company but for employees as well. Away with this, an effective leader along with its
characteristics might take company to the position where it can earn high range of profits and
improve productivity as well.
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