Human Capital Management and Governance

The provided text discusses the importance of human capital management in a changing financial management world. It references several articles and studies that examine human capital management, including its relationship to governance design, team social capital, business models, reputation creation, and economic performance. The text also mentions knowledge management and organizational culture in Indonesian government human capital management.

Managing Human
Capital and leadership

Table of Contents
INTRODUCTION...........................................................................................................................1
Task1................................................................................................................................................1
HRM models, analyse the approach of the company to management of human resource.........1
Task2 ...............................................................................................................................................5
Industry’s HR functions that relates to strategic human resource initiatives and its
recommendations ......................................................................................................................5
Task 3...............................................................................................................................................9
Evaluation of HRM software programs which are available off the shelf .................................9
Task4................................................................................................................................................9
Characteristics of a effective leader ...........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
Human capital management is the collection of practices that relates to people resource
management. These practices mainly focused on enterprises needs and wants, then make efforts
to complete the needs. The main aim of human capital management is to meet with needs of
customers and provide satisfaction. A human resource manager plays basic function such as
overseeing department and managing employees. Human capital management understand the
problems of workers and provide them training and development programme that help to retain
the workforce (Ahrens, Landmann and Woywode, 2015). To understand this, Vodafone Malta
has been taken that is mobile network operator and subsidiary of British international
telecommunication organisation. The present report will focus on HRM models, approach
analysis, organisation HR's function that help to make strategic planning and relevant
recommendation that help to improve the performance. Apart from this, report will discuss about
characteristics of a leader, HRM software programmes that are available off the shelf.
Task1
HRM models, analyse the approach of the company to management of human resource
Human resource management is the formal system which is used to manage the people
within an organisation. It help to provide the clear information in order to work effectively and
increase the profitability. The main purpose of Human resource is to understand the problem and
make efforts to solve the issue that help to retain the employees for long period of time. The
Human resource model provides analytical framework that helps in studying and understanding
human resource management (Akingbola, 2015) .
The Warwick model
This model is developed by Hendry and Pettigrew in 1990s. It is formed to analysis the
human resource management in order to emphasis on recognizing the impact of roles of human
resource function on human resource strategy content. The researchers focuses on defining the
internal needs and external needs and fulfil it in order to provide satisfaction. This models
contains five interrelated elements that evaluates how external factors impacts on internal
operation of Vodafone Malta. It reflects on open system theory of enterprises thinking. The
benefit of this model is that it identifies and classify most important environmental influences on
1

HRM practices. This model help to understand that how it affects the external and environmental
factors of Vodafone Malta company (The Warwick Model 2013).
Elements of Warwick Model
Illustration1 1: Source: The Warwick Model 2013
HRM contents: This content involves Human resource flows, work system, employee
relation and reward system that help to retain employees for long period of time. Such as in
Vodafone Malta, the HR manager focuses on work system and solve employee's problems that
make feel them good and retain for long term (Brinckmann and Kim, 2015).
Business strategy content: This means organisation should make strong business
strategy that help to run a business effectively and grow continuously. It considers product
market, objectives of business strategy and tactics which are developed by human resource
2

department. For instance, Vodafone Malta is international company which deals in
telecommunication sector and provides number of facility in order to attract the customers. It
makes solid business strategy that help to cope up with upcoming issues and get the solution.
HRM context:This includes the role, organisation, definition, and HR outputs that is
used to develop a product as well as motivate the organisation culture by using effective
resources (Claver-Cortés and et.al., 2015).
Inner context: It involves culture, structure, politics, leadership, task technology and
business output. The HR manager of Vodafone Malta company focuses on culture, structure and
politics in order to control the internal function of the business organisation.
Outer context: It states social economic, technical, legal and competitive factors which
help to expand the business at global market and increase the profitability. Such as the manager
of Vodafone Malta adopts new technology, follows the government legislation and manufacture
better quality of material that help to influence the customers. Moreover, it focuses on external
functions of the company which help to increase the productivity.
Hence, this model will help Vodafone to develop the strategies and make planning in
order to improve the productivity and focuses on organisation's function. By following this
model, Vodafone Malta can adopt the changes and new technology in order to attract the
customer. Moreover, by applying this model, it can grab the opportunities for sustaining in
competitive market place (Corbin Neiberline CGFM, 2015).
The Harvard Model
This is most influencing model of Human resource management that focuses on
employees and stakeholders. The stakeholder involves management, employees, government,
groups and etc. who have interest within organisation. This is most useful assets for Human
resource manager who believes on employee's performance and provide them guidance to work
effective and speedily. This model contains six basic components of HRM which is described as-
Situational factor: This factor states staff characteristic, business strategy, planning,
business position and management philosophy that help to cope up with difficulties and
situations. Such as the HR manager of Vodafone company communicates with employees give
them targets and provide them enough facilities in order to complete the target and overcome the
problems. It contains some situational factors which can not be predict-
3

Stakeholder interest: This means stakeholders invest in the company to get return and
increase the liquidity of business organisation. Such as manager of Vodafone company manage
the staff and provide important information to employees and stakeholder in order to get
maximum profits.
HRM policy: It is important factor which is needed in all organisation in order to
influence employees and customers. The Vodafone's HR manager built policy for employees
welfare and customers that help to reward them and make them feel that they are important for
organisation (Gutiérrez and et.al., 2015).
HR outcome: This means HR manager delegate the task among employees, set the goals
for completing the task in given period. Such as Vodafone's manager assign the work between
staff and members that help to complete the given task in certain period of time.
Long term consequences: The Harvard model also considers long term consequences
that help to solve the problems and increase the market share by solving consequences. In
Vodafone Malta, the HR manager analyse employee's performance and get the work done
effectively in order to increase productivity.
Feedback: This is a effective tool which help to get output for organisation and
stakeholders. For example, Vodafone's manager get feedback from workers and stakeholder that
help to give information regarding what need to do for improving the organisation's
performance.
Therefore, Human resource manager of Vodafone Malta company use Harvard model
that help to face the situational factors and control them. Additionally, it provide rewards and
bonus to well performer staff in order to retain them and increase the effectiveness and efficiency
of business organisation.
Approaches for Vodafone's company
The Human resource manager of Vodafone adopt Warwick approach that considers
internal and external factors which affects business strategy where as Harvard model approach
help to recognise the interest of shareholders and employees who are working there. This
approach also help to make long term policy and solid planning in order to attract customers by
adopting new technology (Lajili, 2015).
4

Task2
Industry’s HR functions that relates to strategic human resource initiatives and its
recommendations
Human resource are the most important assets of any organisation who help to perform
all task and maximize the production and profitability of business enterprises. Such as Human
resource of Vodafone are the work force of telecommunication industry who manage all
functions and perform task in order to attract the customers. The HR manager of Vodafone
mainly responsible for recruiting and selecting skilled and experienced people who can be able to
adopt new technology and perform administrative and operating functions effectively. It is also
known as human capital for business who provides training and guidance to existing and new
staff for accepting the challenges (Lee, Park and Lee, 2015).
Human resource functions
The Human resource manager perform various functions such as planning, recruiting,
staffing, directing and controlling the business activities. Such as HR manager of Vodafone
analyse the needs of organisation and hire the best and experienced employees in order to
perform business activities effectively. The manager also identify the needs of training and
development and provide them appropriate training session in order to improve their skills and
competencies so that they enable to perform well in organisation. The manager analyse the
employee's performance and give them rewards for their good performance that help to retain the
employees. In other words, human resource function is responsible for solving and dealing with
employee's issues (Malik and Rowley, eds., 2015). The function of Human resource are
described as-
Recruiting: This is the important function of organisation which is performed by human
resource manager of the business organisation. The manager find the needs of employees such as
in which department they need to hire staff and make some policies to recruit the right staff. This
is the main responsibility of Vodafone's HR manager who find the vacancy in all department and
make planning to hire capable and experienced people. For instance, Vodafone is facing less
productivity and profitability because lack of customers. Due to lack of marketing staff and new
technology, company is facing loss situation which reducing its profitability. For solving this
issue, the HR manager need to hire the employee who are well experience in marketing and
5

convince the customers. The HR manager adopts internal and external sources of recruitment for
recruiting the staff that is discussed as-
Internal sources: This means the candidates are hire from within the organisation who
are already working there. For instance, there is need to hire senior marketing manger who are
highly experienced and skills. In this case, Vodafone Malta recruits the senior marketing manger
within organisation who are already working effectively. Internal sources includes promotion
and transfer that make feel better to employees.
External sources: This means finding the employees from outside the organisation by the
way of advertisement, campus placement, job consultancy, consultant etc. The Vodafone's HR
can hire the candidates from external sources that will help to fill vacant post within
organisation.
Selection: This means choosing and selecting the best candidate for organisation who is
capable to perform all business functions. Selection is the process of getting the right people for
right job after analysing the skills and knowledge of applied candidates. In Vodafone Malta, the
HR manager use this process after finding and attracting candidates within industry. The HR
manager selects the best employees through interview process that help to perform specific job.
The selection process has been described as-
Preliminary interview: In this process, HR manager evaluate the academic qualification,
skills and check rthe family background that help to hire the right employees. It is less formal
interview process that select the candidates who are in required criteria. Such as Vodafone
Malta's manger seek the qualification and skills of employees which is needed in organisation to
select the right person for right job.
Receiving applications: In Vodafone Malta, the HR manger collects the applications of
preliminary interview's candidates who need the job and passed the required criteria. Such as
Vodafone Need to hire highly experienced person who are more confident to attract the
customer. In this case the HR manager will focuses on these skills and experienced to select the
person. This information help Vodafone to get idea about candidate and built more question to
get additional information.
Screening of applications: In this interview process the interviewer screening the
applicants who matches with organisation's needs and wants. Such as Vodafone screened the
6

candidates who are more knowledgable, experienced and skilled in order to perform marketing
function.
Interview: In this, the Vodafone's manager take the interview of screened candidates that
help to get information about applied candidates. In this process manager asks number of
questions which relates to job profile, skills and experience that relate to job requirement.
Employment test: In Vodafone, the Human resource manager take the test of employee
that help to suggest which employee can perform best within organisation. Such as Vodafone
take IQ test, technical round and etc. in order to select best staff.
Check the reference: After this process, the HR manager of Vodafone company ask the
reference from candidates and take medical test for selecting best people. This process help to
take effective business decision in order attract the best employees. In other words, HR manager
also asks about reference that is employee is known or not that help to understand work
environment and culture of organisation (Olmedo-Cifuentes and Martínez-León, 2015).
Final selection: This is the final round in which Vodafone's manager select the best
employee after clearing all the interview round. In this process, the manager take corrective steps
in order to select the best employee for selected job profile.
Human resource development: This is essential function of business organisation that
is used to provide training and development to workers. This is effective function that make feel
confident to employees who are working within organisation. In other words, this function help
to increase the efficiency and productivity of business activities. Such as the manager of
Vodafone Malta provide training to staff for adopting new technology and maximize the profits.
It also help to accept the challenges in competitive market by using new technology and
attractive skills. It help Vodafone's employee to participate in career and development
programme in order to beat the competition. The employees of Vodafone Malta increases
efficiency and effectiveness through training and development that will help to provide
competitive advantages. The Vodafone adopt training and development methods such as-
On the job training: This method is used to providing training and increase skills by
working in an organisation. It includes training and development while working within business
industry. Such as Vodafone Malta is international company who provides training through job
rotation, coaching training, monitoring, orientation, job instruction or internship. This help
Vodafone's staff to get experience and learn new skills through observing the people.
7

Off the job training: This method is used to provide training and development through
lectures, role play, case study, grid training and conference etc. Such as Vodafone's Human
resource manager provides training and development through conference, class room and
lectures that help to enhance the knowledge and skills.
Performance management: This means HR manager manage and evaluate the
employee's performance by recording the business activities. The human resource manager of
Vodafone interactmanager of Vodafone interacts with staff, share ideas and evaluate the
performance that helpperformances that help to take corrective action within organisation. In
other words, it is a set of activity that makemakes sure about employees performance by
measuring and evaluating the performance. It helps to meet with organisation's goals and
objectives by increasingby increasing the production.
Performance management is an ongoingon-going process that help to communicate
among employer and employee. Performance management is essential function of human
resource such as it can providescan provides appraisal to employees after evaluating the
performance of organisation. The HR manager of Vodafone focuses on employee's needs and
wants and providemanagers of Vodafone focuses on employee’s needs and wants and provide
them training and development that help to meet with needs. It includes number of performance
management tools and techniques like as-
Rating system: This is effective system that is used to evaluate the employee's
performance. Vodafone's manager evaluatemanager evaluates the employee's performance who
are responsible for organisation's work. It help to measure the employee's performance and get
improve if needed.
360 degree feedback: This toolsThese tools help to analysis the work and employee's
performance that help to maximize the production and profitability within business enterprise.
The business enterprise takes feedback from employeesfrom employees and get information in
order to improve the performance. Such as Vodafone's manager evaluate performance and get
feedback from staff, supervisors, customers and suppliers in order to improve the production.
Recommendations
From the above mentioned Human resource function it has been recommendrecommends
that HR functions are essential that help to perform business activities effectively. These
functions can be improve by evaluating the performance of business organisation such as the HR
8

manager of Vodafone company has facing lack of profitability and productivity because lack of
experienced and technical person who can adopt the new technology in order to increase the
profit margin. To solve this problem and improve the performance HR manager need to hire best
candidate who will perform all marketing as well as administration functions.
For hiring the best candidate Vodafone can use online job portals, social sites, and own
website that help to provide information about vacancy. Company can take this strategy initiative
for influencing people for participating in recruitment process. Additionally, it focuses on
rehiring of women who has left the organisation because of some personal issue that give a
advantages to employee to work effectively.
For selection function Vodafone need to understand and evaluate the right candidates
within organisation. Vodafone Malta can take initiative for choosing highly skilled and
experienced people in order to perform business function.
For performance management, Vodafone can take strategic initiative by providing
training and development thatdevelopment that help to perform the task smoothly and
effectively. Moreover, manager can use different tools and techniques to measure the
performance and get best results.
Task 3
Evaluation of HRM software programs which are available off the shelf
In present day, the advancement in business practices and improvement in technology
company are attaining the at most success in existing market place (Poston and Dhaliwal, 2015).
In Vodafone it is observed that manager are utilising valuable advance techniques and HRM
software that help to reduces the possibility of problems that may be faced while recruiting
suitable candidates for specific position. In order to increase the affectivity and efficiency of
worker management of respective company have utilise different kind of HRM software in order
to increase the overall performance and organisational structure in specific time frame. The basic
software programme areprogrammes are defined underneath:
Kronos Workforce Ready:
It is consider to be one of the most important software that support in team management
and also aid in managing the capital ability of company during a specific time period. This
software helps to provide a single platform in order to different HRM practices such as
9

recruiting, training and development, rewards management, compensation etc. There are number
of problems that are faced by Vodafone's that are relevant with selection and recruiting as they
are not able to hire skilled employees for their different position same the selection team, is
unable to make smart selection from different candidates that have applied for particular job in
Vodafone's. Therefore it is stated that this software is advantageous for respective company as
this software help to attract the skilled professional and capable talented employees and also used
to fit the staff requirement that makes them satisfied with job and they deliver best results in
order to attain the desired objective (Rainey, 2015)..
Bamboo HR
This tool is depended on the cloud supported HR information system that is mostly used
by small companies while conducting different business operations. This software mainly helps
to deliver the different natural HR tool which includes persons and data analytics, culture of
company and other elements etc. Furthermore, this practices helps to staff satisfaction as the
respective software is surrounded with electrical NPS for encouraging and involving them more
in each Vodafone operations. This is supportive to overcome the problems of unhappy workers,
reduces cost by keeping detail information about total activities and individuals working in
company (Sensuse, Cahyaningsih and Wibowo, 2015). It also benefit the company to evaluate
the overall performance of the employees and make possible improvement in case of problem in
order to increase the yearly profitability.
Kitaboo Insight:
It is defined to be effective and crucial interface training software which that is mainly
develop to provide the authentic and accurate training to employees by different sources such as
mobile training software. It is cloud based stage which communicates persons through videos
audio and images in effective way to improve the quality of operations. It helps to resolve the
issues of Vodafone that is related with time management and excess utilisation of cost during
training programmes. With the help of this software Vodafone can easily operate business
operation with skilled labour in order to increase the efficiency of business.
Therefore it supports to analyse numerous kind of software which helps to maintain the
records, improve the training of employees etc. As Vodafone is facing different issues like cost
overwhelming, unfortunate worker, most important unable to find the best candidate for desired
10

positions. Henceforth, they implements the various software like Kronos Workforce Ready,
BambooHR, Kitaboo Insight etc. to resolve all these issues.
Task4
Characteristics of effective leaders taking into consideration all the issues identified and
appropriate model.
It is necessary for the leaders to have specific characteristics so that they can influence
their subordinates effectively. For this purpose there are different kind leadership model which
provides guidelines to the leaders for better result. Herein, the case of the Vodafone they are
facing various kind of issues regarding to the leadership (Tomšič, Bojnec and Simčič, 2015). . As
well as they need suitable models to resolve their problems. Some types of leadership models are
mentioned below:
System leadership model- It is a kind of model which is related to the analysing the
human behaviour of the human beings and accordingly develops the strategies. Herein, the case
of the Vodafone company they use this model to overcome from their issues related to the
leadership. Due to this model their leader will evaluate the situation of their employees and after
that design the plans and policies accordingly. Eventually, this model is necessary for them
because they are facing a lot of issues. If they will apply this model then automatically their
issues will resolve because understanding of the human behaviour is compulsory and this model
emphasis on the evaluation of the employee behaviour. As well as due to this, relation between
the employees and leaders can be better.
Contingency leadership model- This is a kind of leadership model which is depended
on the different kind of circumstances (Zubair, 2015).. Eventually, the contingency model is
based on the theory that particular course of action depends on the internal and external situation.
Herein, the aspect of the leadership, this model can be very beneficial because the leaders will
enhance their skills and abilities as per the different kind of situation. In the context of the
Vodafone company they are facing the problem of the ineffective leadership and due to this their
functions are also getting effected. If they will implements this leadership style then their leaders
will develop their skills and abilities after analysing the internal and external factors. On the
basis of this leadership model, their other issues like unhappy environment among the
employees, higher cost, bad relation and many more can be sort out easily.
11

So these are the model of the leadership which can help to the Vodafone company from
overcoming the issues regarding to the leadership. Herein, it is important that these models must
be applied as per the systematic process (Veltri and Bronzetti, 2015)..
CONCLUSION
From the report it has been concluded that Human resource department plays a vital role
in business organisation such as it recruit the right candidate for right job that help to meet
objectives. The main functions of HRM is stated as hiring, selecting, performance management,
and human resource development that helps in improving the profitability and productivity of
organisation. Warwick model help to retain the employees within organisation by fulfil the needs
and wants of customers. Additionally, HRM function such as recruiting, selection, HRD and
training and development help to select the right candidate for right job.
12

REFERENCE
Books and Journal
Ahrens, J. P., Landmann, A. and Woywode, M., 2015. Gender preferences in the CEO
successions of family firms: Family characteristics and human capital of the
successor. Journal of Family Business Strategy. 6(2). pp.86-103.
Akingbola, K., 2015. Managing human resources for nonprofits. Routledge.
Brinckmann, J. and Kim, S. M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal. 9(2). pp.153-166.
Claver-Cortés, E., and et.al., 2015. Intellectual capital in family firms: human capital
identification and measurement. Journal of Intellectual Capital. 16(1). pp.199-223.
Corbin Neiberline CGFM, C. P. A., 2015. Making human capital management a strategic
business priority in a changing financial management world. The Journal of
Government Financial Management. 64(3). p.34.
Gutiérrez, I., and et.al., 2015. Managing sustainability for competitive advantage: Evidence from
the hospitality industry.
Lajili, K., 2015. Embedding human capital into governance design: a conceptual
framework. Journal of Management & Governance. 19(4). pp.741-762.
Lee, J., Park, J. G. and Lee, S., 2015. Raising team social capital with knowledge and
communication in information systems development projects. International Journal of
Project Management. 33(4). pp.797-807.
Malik, A. and Rowley, C. eds., 2015. Business models and people management in the Indian IT
industry: From people to profits. Routledge.
Olmedo-Cifuentes, I. and Martínez-León, I., 2015. Human capital and creation of reputation and
financial performance. Electronic Journal of Knowledge Management. 13(3). p.209.
Poston, R. S. and Dhaliwal, J. S., 2015. IS Human Capital: Assessing Gaps to Strengthen Skill
and Competency Sourcing. CAIS. 36. p.34.
Rainey, M. A., 2015. An Appreciative Inquiry Into the Factors of Culture Continuity During
Leadership Transition. Handbook for Strategic HR-Section 6: Change Management.
Sensuse, D. I., Cahyaningsih, E. and Wibowo, W.C., 2015. Knowledge management:
organizational culture in Indonesian government human capital management. Procedia
Computer Science. 72. pp.485-494.
Tomšič, N., Bojnec, Š. and Simčič, B., 2015. Corporate sustainability and economic
performance in small and medium sized enterprises. Journal of cleaner production. 108.
pp.603-612.
Veltri, S. and Bronzetti, G., 2015. A critical analysis of the intellectual capital measuring,
managing, and reporting practices in the non-profit sector: Lessons learnt from a case
study. Journal of Business Ethics. 131(2). pp.305-318.
Zubair, A., 2015. Authentic leadership and creativity: Mediating role of work-related flow and
psychological capital. Journal of Behavioural Sciences. 25(1). p.150.
Online
The Warwick Model. 2013. [Online]. Available through:
<http://mbaonlinelibrary.blogspot.com/2011/11/huma-resource-management-models.html>.>
13

Poston, R. S. and Dhaliwal, J. S., 2015Rainey, M. A., 2015Sensuse, D. I., Cahyaningsih, E. and
Wibowo, W.C., 2015Tomšič, N., Bojnec, Š. and Simčič, B., 2015
Veltri, S. and Bronzetti, G., 2015.Zubair, A., 2015.
14