Human Capital Models and Software Programs for Management of Human Resources

MANAGING HUMAN CAPITAL AND LEADERSHIP INTRODUCTION 1 TASK 11 HRM models and various approaches used by company in management of its human resource1 TASK 23 HR functions in relation with strategic human resource3 TASK 35 HRM software programs beneficial for organisation 5 TASK 47 Characteristics of effective leader 7 CONCLUSION 9 REFERENCES 10 ABSTRACT Concept of human capital indicate the skills, knowledge and potential of employees working in an organisation. On the other hand, Soft HRM model

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
HRM models and various approaches used by company in management of its human resource
.....................................................................................................................................................1
TASK 2............................................................................................................................................3
HR functions in relation with strategic human resource.............................................................3
TASK 3............................................................................................................................................5
HRM software programs beneficial for organisation..................................................................5
TASK 4............................................................................................................................................7
Characteristics of effective leader...............................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

ABSTRACT
Concept of human capital indicate the skills, knowledge and potential of employees
working in an organisation. Leadership refers to the process carry out by an individual to
motivate and direct workers so company can attain its set goals and objectives with minimum
time and resources. Leaders play a big role in affect employees and their performance at
workplace which impact on overall performance of company in market. Different HRM models
are there which can be utilise by the firms to manage actions of workers at workplace.
Recruitment and selection process of Paragon polymer pvt Ltd. Company is discussed here. By
doe some changes in its current process, company can develop and maintain a skilled workforce,
which is very essential for sustain in this competitive environment. Some characteristics are there
which should be there in an individual in order to become a successful leader.
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INTRODUCTION
Concept of human capital defines the measurement of skills, knowledge, attributes,
capacity of employees which affect the earning potential and productivity of company (Nyberg
and et. al., 2014). Leadership is known as the process of leading group of individuals for attain
organisation objectives. Leaders play a big role in manage human capital of company. Paragon
polymer product pvt Ltd is a consider to be number one footwear supplier and manufacturing
company in India. It has around 18 depots and more than 450 distributors across the country.
This report elaborates about various HRM models and its approaches used within an
organisation. It also explains about number of HR functions and recommendations to improve
them along with various HR software that can be used by company to improve their activities.
Further it also describes about various characteristics within an effective leader and leadership
model that must be used by Paragon company.
LITERATURE REVIEW
TASK 1
HRM models and various approaches used by company in management of its human resource
Human resources management refers to a formal system which is used within an
organisation for the management of people. Main responsibility of an human resource manager
lies with in three categories such as worker compensation, staffing and defining work. HRM
model consists of number of human resources activities and when these activities performed
effectively this will results in accomplishment of organisational objective (Lutz, Butz and Samir,
2017). These models represents the relationship between HRM practices, factors affecting their
choices and outcome of their operations. In year 1960, Michigan and Harvard propounded X &
Y theory for explaining two different models of HRM. Theory X is given by Michigan
University and named it as Hard HRM model. On the other hand, Theory Y is given by Harvard
Business School and named its model as Soft HRM. These models of HRM are as follows:
Hard model:- This model is developed by Michigan Business School which provides a
different view of Human resource management practices. Hard model has less humanistic edge
and state that employees are resources of a company and should be treated as other business
resources. That means human resources of an enterprise are managed in same manner as the
equipments and raw materials are treated (Antonakis and Day, 2017). Employees must be
acquire as lower cost as possible and exploited as much as possible. This model is also known as
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matching model or best fit approach as it requires that HR strategies must fit with overall
strategies of business. It is because this model limits the HR role to organisational function as
well as under emphasize over other external or societal factors.
Hard model used by an enterprise is consider to have more effective workforces and
where decision are taken by higher authorities. This model put less emphases over need of
employees and decisions are generally imposed by senior management.
Soft model:- This model is developed in Harvard university which state that employees
are most valuable resources of a business and a source which help in achieving competitive
advantage. Therefore, employees must be treated as an individual and are not be viewed as a
machinery (Mahdi and Almsafir, 2014). Their needs as well as requirements must also be
considered by top management and must be rewarded as per their performance. Soft model put
more emphases over an individual and their self-direction. This model believes more over
building trust and self-regulated behaviour while applying any strategical approach. It generally
works toward developing a healthy working environment where employees are treated nicely,
rewarded over their performance and staffs are motivated for performing their operations
effectively.
Paragon polymer products pvt Ltd, expertise in trading of women's & men's footwear and
is located in Telangana, India. In order to manage its employees, company generally uses mixed
HRM approach.
Mixed approach:- Paragon polymer products pvt Ltd generally put more emphasis
toward managing their employees in order to maintain efficiency in their operation and
performance. Company hires experienced candidates for their top authorities such as managers
of various departments (Frederiksen and Kato, 2018). For higher management, company uses
soft model approach as these peoples are responsible for managing peoples working at lower
level. Hence, it is very essential to delegate them the authorities to take decisions so that they can
perform their jobs effectively. Soft model approach help in developing an environment of
motivation that encourage managers of various departments to make their subordinates perform
well and complete their tasks on time. This provides numerous benefits to Paragon polymer, as
by using it company can retain its skilled and experienced employees for longer period of time. It
also help in formulating better strategies for improving their performance as decision are take
much more quickly.
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On the other hand, for lower level employees Paragon polymer product pvt Ltd generally
appoint fresher and company uses hard model approach as it is a learning phase for freshers and
they are more focused toward gaining experience instead of getting authorities. Main reason
behind using this approach is that Paragon Polymer can get large number of employees at lower
salary. Higher authorities put more targets and work pressure over their employees at lower level
so that company can achieve their set targets and maximize profits (Luthans, Youssef and
Avolio, 2015). This help company in achieving high productivity from their employees by
maximum utilisation of available resources. As Paragon is consider as number one in offering
rubber footwear and they produce 400,000 pairs per day. So, in order to maintain this production
unit, company apply hard approach over their employees. Company also assists employees for
performing their task in timely manner as manager take decision regarding each activity and also
assign time for their work.
Apart from these advantages, hard model approach also sometimes proves to be
disadvantageous for Paragon polymer product pvt Ltd. As under hard approach needs and wants
of employees are not considered by higher authority and they are treated as machinery. So it
results in increase in number of employees turnover which may affect the performance of
company as majority of employees are young and generally freshers. It also increase de-
motivation among employees which further creates inefficiency among their operations.
TASK 2
HR functions in relation with strategic human resource
HR manager perform number of functions for managing the human as well as physical
resource of an organisation in order to achieve organisational goals or objectives. HR strategic
initiatives are refers to those activities which consider employees as a primary asset and
formulate plans for accomplishing task. In this main role of HR officer is to create strategies that
can meet up with company's objectives. Following are number of functions performed by HR of
Paragon polymer product pvt. Ltd:
Recruitment & selection:- This is considered to be a major function of human resource
manager within a company. Recruitment & selection refers to the process of searching a number
of candidates with desired skills, knowledge and experiences for selecting the most eligible
person for vacant position in company. Paragon polymer product pvt Ltd put more emphases
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toward hiring large number of skilled and competent employees so that their targets can be
achieve effectively.
Main focus of company is toward providing high quality product or services to their
customers. This quality level can be maintain if company have competent and hard working
people in their organisation. So in order to create such workforce, Paragon follows a long
recruitment and selection process. First of all, company sources profile of large number of people
by taking telephonic interview (De Clercq and et. al., 2014). After sourcing profile, face to face
interview are being scheduled for selecting eligible candidates out of large pool of peoples. After
clearing the interviewing round, basic screening of these individuals are done and their
backgrounds are verified. After proper verification of their provided information, offer letters are
being released to them.
Training & development:- It refers to the process of developing required skills and
knowledge within employees regarding their jobs by organising some training program for them.
This is very essential part of HRM which help in developing and improving employee’s skills for
preparing them to perform job effectively. Main aim of paragon is to develop new and models
for offering their customers number of varieties as well as to keep up with market demand.
Therefore in order to bring new designs, company always organise training session for their
workers for teaching them about how they can change their design and make them more
attractive. Further company also provide their retailer training regarding the marketing of their
product (Lakshman, 2014). They organise sessions for developing an understanding about
various ways in which footwear can be demonstrated to customers and what information can be
provided to them which influence them to buy product. This help in increasing the sales of
company's product which turn will support in achieving organisational sales as well as profit
targets.
Performance appraisal:- It refers to the process of reviewing the employee's
performance and overall contribution at their work on regular basis in relation with the pre
specified criteria. This assessment is generally done for identifying the ability of an individual
for future growth and development. Paragon generally set certain criteria over their employee's
for particular time period and after the completion of this, performance of employees are
assessed. This help in identifying the effectiveness of their work and gap between the actual as
well as planned performance. Company also put incentives over the completion or exceeding of
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these sales targets which motivates them to accomplish their set goals. Employees who
performed well get appraisal either in term of promotions or monetary benefits.
Apart from these, company also set sales target for their retailers which encourage them
to sale maximum units for achieving higher incentives. This strategy is generally used to enhance
the performance as well as volume of sale which further provides an opportunities to achieve
maximum revenue.
These all are the major functions of human resources officers which help in enhancing
the performance of employees working in company which further support in increasing the
goodwill as well as profitability. Paragon polymer product pvt Ltd can more enhance their
human resource practices by adopting following recommendations:
 Company generally recruit fresh employees at lower level which sometimes may affect
the performance. So, Paragon should also appoint experienced candidates along with
freshers, as skilled workforce operates their tasks much effectively as compare to
inexperienced individuals. Further it also reduces the addition training and development
cost of the company.
 Paragon should also include group discussion in their recruitment process as it help in
identifying the knowledge that a candidate have.
 Company can also recruit internally by promoting their existing working employees. This
will further support in motivating other workers to perform well and organisation can
retain skilled employees for longer period of time.
These all are the recommendation that can be implement by Paragon polymer product pvt
Ltd in its human resource activities. This help in improving the productivity as well as overall
performance of employees and company as well.
TASK 3
HRM software programs beneficial for organisation
HR software refers to a unified program which provide a solution to everyday HR
strategic and planning process by combining various function that are required for Human
Capital management. Following points describe about various HRM software that help in
simplifying the operations of HR:
ADP Workforce Now:- It is a web-based human resource application, designed for
medium sized organisation. It integrates various functions such as payroll, talent management,
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time& labour management, analytics and benchmarking over a single dashboard. ADP helps HR
officer in managing their workforces related operation at one place. According to Kring 2018,
employees can provide their operational information electronically instead of writing down time-
card. It saves time of both employees as well as employer.
But according to Bouckenooghe, Zafar and Raja, 2015, though it is beneficial for
company as it simplify the HR functions and also saves time but still it requires some
improvements. As it is appropriate to the company where employees strength are average. But in
case when companies have lots of remote employees or branches at different location, it become
harder to find the name of employee even by typing full name. It requires to add extra page or
feature for providing more customized solution. For instance, it can add more job sections which
make it easier to search out job title and team to which an individual belongs.
Breathe:- It is a cloud based HR software solution which puts business under the control
by letting them manage employees data, recruitment, training, workload, on-boarding, payrolls
and more. Breathe software provides a secure and more reliable way to mange, advocate and
communicate with people more effectively. According to Nyberg and et. al., 2014, it is a perfect
solution for increasing the number of employee engagement. Its user friendly dashboard,
extensive reporting facilities and comprehensive analytics help in improving the efficiency of
business operations. It also company by providing information which is required to take strategic
decisions by integrating with API (application programming interface).
But according to Armstrong, and Taylor, 2014; Breathe HR is very helpful to an
organisation which provides a better and integrated solution to HR problems. But the Kudos
feature of this software seem to be unnecessary as well as harder to tackle. Apart from its simple
design it also become confusing when software is navigated and calendar are also sometimes
seem to be confusing.
Paragon polymer product pvt Ltd is recommended to use Breathe HR for performing and
managing its human resource practices much effectively. As it includes number of features and
its UI is also very easier to use. The support team is also very supportive as it is always available
to provide help.
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TASK 4
Characteristics of effective leader
Leader refers to a person who have the ability to command the group of people and
motivate them toward the achievement of their goals. Leadership is considered to be a most
essential activity of an organisation which contributes toward improving the efficiency of
employees. It help in motivating the workers so that they can perform their tasks much
effectively and is also helpful in improving their performance. This further help in achieving the
overall objective of a company. Following are the characteristics that must be possessed by the
leaders of Paragon polymer product pvt Ltd:
 Risk taker:- An effective leader is one which tries to bring changes in operations for
bring more positive outcomes or contribute toward achieving expertise. These changes
are not possible to implement without risks. So a leader must be risk taker and have an
ability to think innovative so that company can achieve higher success (Felício, Couto,
and Caiado,2014). As Paragon put more emphases toward creating new designs and
models for fulfilling market demand as well as keeping their customer happy. So, a leader
must take initiative for motivating employees of Paragon to keep on offering fresh
models by bringing creativity in their practiSes.
 Caring individual:- An effective leader is one who shows a care and is more concern
about the its team members as well as goal of organisation. When a leader cares about
their follower and listen to them, then it become easier for him to convince employees to
perform different operation. As Paragon use hard approach for their employees which
creates a disappointment and job dissatisfaction among employees that further leads to
employees turnover. At this situation if a leader shows care toward their employees then
it will help in motivating them and boosting up their confidence toward performing their
tasks effectively (Nappi, 2014). This further help in improving the productivity of
company and also assists in retaining their employees for longer period of time.
 Motivational:- An effective leader is one which has an ability to motivate their
employees toward performing their job task much more effectively. As leader is a one
who inspire their employees to work toward the accomplishment of organisational goals.
Being a number one footwear company, Paragon is required to take regular sessions for
motivating their employees to maintain their quality work as well as try to enhance their
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performance. As it will be beneficial for both employees as well as company. Leaders
must also provide on job training to their employees in order to motivate them for
performing their tasks effectively.
 Good communicator:- A leader must be good communicator and listener as well. As
Paragon uses hard model approach for its employees working at lower level and decision
are generally taken by top or middle management. Therefore, it is very essential for a
leader to communicate with employees about their will and wish regarding the decision
taken by management (Joo, Lim, and Kim, 2016). They must take workers issues to
higher authorities so that their needs must also be consider while taking decision. This
will further help in keeping employees happy which motivate them to perform their work
effectively and contribute toward organisational progress.
 Decision maker:- For being an effective leader, a person must have an ability to take fair
and appropriate decision which contribute toward organisational success. An effective
leader is one who identifies each and every aspects of a concerned problem before taking
decision. As Paragon generally hire fresh candidates with an motive to achieve maximum
production at minimum wages or salary (Day,and et. al., 2014). So the main role of leader
here is to motivate their employees to complete their targets on time. Therefore, they
have to take decisions accordingly which help in accomplishing targets with required
quality and on time.
All these are characteristics that a leader of Paragon polymer product pvt Ltd must have
in order to deal with different situation that may be faced while performing operations. For
implementing these features, company must required to adopt situational leadership model.
Situational leadership Model:- It refers to a leadership strategy which encourage
leaders to investigates about present situation, weight out its various aspects present in workplace
and then choose best suitable leadership style according to situation. This strategy suggest that a
particular style is not suitable for each situation (Han, Han,and Brass, 2014). Therefore, in order
to perform operations much effectively a leader must change its style according to the prevailing
situation.
This model is consists of adaptive leadership style which help leaders of Paragon in
dealing with different situation and in motivating their workers so that they can contribute
toward achievement of organisational goals.
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CONCLUSION
From the above given report, it can be concluded that Human resource department is
consider to be an most essential part of an organisation. It manage and operates the human
resource of a company. For managing them, HR officer performs several functions such as
recruitment & selection, training & development, performance appraisal etc. Apart from this the
main role of a HR manager is to make their staff work toward the accomplishment of
organisational goal. For making employee work, leaders are required who motivate and inspire
them to perform their task effectively. So for being an effective leader, a person most have
various features or capabilities. It includes risk taker, caring individual, good communicator,
decision maker and motivator.
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REFERENCES
Books & Journal
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Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
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performance: The mediating roles of goal congruence and psychological capital.
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Day, D. V., and et. al., 2014. Advances in leader and leadership development: A review of 25
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De Clercq, D. and et. al., 2014. Servant leadership and work engagement: The contingency
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Felício, J. A., Couto, E. and Caiado, J., 2014. Human capital, social capital and organizational
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Frederiksen, A. and Kato, T., 2018. Human Capital and Career Success: Evidence from Linked
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psychological capital, authentic leadership, and work empowerment. Leadership &
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Lakshman, C., 2014. Leveraging human capital through performance management process: the
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Luthans, F., Youssef, C. M. and Avolio, B. J., 2015. Psychological capital and beyond. Oxford
University Press, USA.
Lutz, W., Butz, W. P. and Samir, K. E. eds., 2017.World Population & Human Capital in the
Twenty-First Century: An Overview. Oxford University Press.
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Nappi, J. S., 2014. The teacher leader: Improving schools by building social capital through
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Online
Soft and hard management. 2018. [Online] available
through<https://www.chronologic.co.uk/soft-vs-hard-hr-management/>./
Paragon Footwear. 2018. [Online] Available through
<https://ritika.kwww.paragonfootwear.com/about-us>./
RECRUITMENT AND SELECTION. 2018. [Online] Available through
<https://www.ahri.com.au/assist/recruitment-and-selection>./
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