Managing Human Capital & Leadership: Doc

Managing human capital and
leadership

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Analysis of the approaches of HRM models to the manage the human resource........................1
TASK 2............................................................................................................................................4
Organisation's HR functions in relation to strategic human resource initiatives and
recommendation for improvement...............................................................................................4
TASK 3............................................................................................................................................8
Evaluation of HRM software programs that are available off the shelf and beneficial for the
company.......................................................................................................................................8
TASK 4..........................................................................................................................................10
The characteristics of effective leaders and relevant models to justify.....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Human capital management is an approach to the workforce staffing that understand individual
as human capital and focuses on managing knowledge, skills, capacity to develop, abilities and
innovate possessed by people in an industry. Along with it, HRM also aims to manage the
leadership in an organisation. Leadership is an underlying factor of HCM and help Human
Resource of the company to manage and lead people in the industry (Rabin, 2018). The present
study of managing human capital and leadership is based on Simonds Farsons Cisk plc, is a
Maltese food and beverage conglomerate. The company was founded in 1928 and headquartered
in Birkirkara, Malta. The organisation engages in the brewing, production and sale of beers and
beverages in Malta.
The present study will outline HRM models and analyse the approaches of the industry to
its human-resource-management and will critically discuss various functions of Human resources
as well as will provide relevant recommendation that how company can improve these. Along
with it, on the basis of criteria, it will identify a number of HRM software programs and identify
the best software for the organisation. Lastly as based on an advice, a discussion made on the
characteristics of effective leader.
TASK 1
Analysis of the approaches of HRM models to the manage the human resource
The HRM model contains all the HR activities that help in managing the human
resources effectively. Simonds Farsons Cisk plc strives to have proper management of
workforce, people and intellectual capital (Bailey and et.al., 2018). For that purpose they can
address several HRM models that will help. It is essential for Simonds Farsons Cisk plc to
manage their human resource in order to ensure fulfilment of the requirement of the workforce as
well as of the organisation. The HRM models provide an analytical framework that explain the
nature and significance of key Human Resource functions in order to manage intellectual capital,
people and workforce of Simonds Farsons Cisk plc.
HR Value Chain Model:
This is one of the best model that divided into two major parts; HRM activities and
outcome.
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As stated by (Branstetter, Drev and Kwon, 2018) activities of human resource
management is to recruit, compensate, train and succession planning of the workforce. This also
called as efficiency metrics. Simonds Farsons Cisk plc try to improve their proficiency in the day
to day activities so that they ensure proper management of the resources.
On the other hand, according to (Morgeson, Brannick and Levine, 2019) the outcomes of
HRM refers to the goals such as workforce, intellectual capital and people management in the
industry through HRM activities. Simonds Farsons Cisk plc have different team that recruit
people, provide training to them and further compensate to achieve the outcomes. The outcomes
also include employee satisfaction, retention and motivation.
For effectively manage the human capital in the organisation Simonds Farsons Cisk can
align the functions of HR as per the model so that they can meet the purpose. For instance;
Simonds Farsons Cisk can hire potential candidate by adapting various techniques of recruiting
and provide them training so their productivity can be improved and the training and
development will ensure that each and every employee in the company have proper knowledge
and skill that make the task easy to manage the workforce capital (HR value chain, 2017).
By implementation activities of HRM model effectively discharged that will result in a
competent and willing workforce that will help in realising organisational goal. This model
enable the Human Resource department of Simonds Farsons Cisk plc to interlink with the
functions that emphasise on all the activity that is essential for effectively manage people.
The Guest Model
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This model emphasise on the assumption by (Rosenbach, 2018) that HR manager has
specific tactics and strategies to begin with that demand various practices and when effectively
executed result in proper outcome that are; behavioural performance and financial rewards.
Simonds Farsons Cisk plc will implement this model in the HRM functions in order to manage
the workforce effectively and achieve the desired outcome.
On the critical side if the industry not able to manage the workforce that can affect the
overall functions of day to day activities (Bailey and et.al., 2018). At Simonds Farsons Cisk plc,
the Human Resource department is committed to bring out the best in the workforce. They not
only aim to look into the overall productivity and profitability of the industry but also focuses at
individual people growth. Thus, implementing human resource practices such as talent spotting,
mentoring and support network that will effectively result in building good relation with each
and every people in the company. The core areas of the implementation of this model emphasise
on; managing workforce and intellectual capital in Simonds Farsons Cisk plc.
With the help of above model Human Resource department of Simonds Farsons Cisk plc
able to manage the human resource at the industry. The models are idealistic, implicitly
embodying the belief that fundamental elements of HRM approaches have direct relation with
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Illustration 1: The Guest
Model of HRM

the management of workforce. Although dynamic of people management can be difficult for
Simonds Farsons Cisk plc as not single model can capture it comprehensively.
 Workforce management: HRM of Simonds Farsons Cisk plc is focusing on the workforce
in the company and is responsible to understand their needs will fulfil. Furthermore, the
department is focusing on the improvement area of the working people and provide them
effective training so that employees' productivity and performance can be improved. The
rewarding also help in the purpose as it motivates the employees and training can boost
the confidence of employees to work more effectively.
 Workforce planning: Human resource department of Simonds Farsons Cisk plc focused
on understanding and aligning needs of company with regard to employees where focus
of firm is on meeting legislative requirement, production, motivation, results and
organisational objectives. However, in accordance with increasing competition at market
place Simonds Farsons Cisk plc can focus on coaching mentoring of employees during
workforce planning. This will help in improving efficiency and motivation at workplace
for attaining business goals.
TASK 2
Organisation's HR functions in relation to strategic human resource initiatives and
recommendation for improvement
Human resource can be defined as a both people and an organisation & department who
are responsible for managing resources that are related to workers. They play various functions
in order to achieve pre determined goals and vision of an organisation (Albrecht and et.al.,
2015). Some functions which are being played by HR of Simonds Farsons Cisk includes
recruitment & selection, performance management, motivation etc. HR of this company uses
various methods for performance management such as 360 degree performance appraisal and
behaviourally anchored rating scales.
Recruitment and selection: It is the first and foremost function that plays an important
role in an organisation. Recruitment is a procedure of finding and then attracting the skilled and
potential candidates within an organisation for filling the vacant position. On the other hand
selection is a process of choosing the right and appropriate candidate according to the suitability
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of the vacant job position. The selection of an appropriate and suitable candidate for a vacant
position is an asset for Simonds Farsons Cisk company because skilled and knowledgable
employees can help them in reaching their objectives by performing their work and tasks in an
effective manner. For recruiting employees and In the recruitment process, HR sources the
candidates on the basis of their abilities, attitudes and skills that are essential and important for
increasing sales and profitability (Rabin, 2018).
For recruiting employees it uses various methods as it gives advertisement, direct
recruitment, campus recruitment and word of mouth recruitment. All these external recruitment
help the company and HR in gaining different skilled employees and make a pool of skilled
employees within an organisation. For selecting employees HR of Simonds Farsons Cisk
company follows some process of selection such as preliminary interview, references checking,
medical examination and final selection. There are various sources of recruitment includes
internal and external sources. Some examples of internal and external sources of recruitment
includes:
Advertisements: Advertisement is the type and source of external recruitment which the
HR of Simonds Farsons Cisk company use and follows. It is an external method of recruitment
that is being used for recruiting skilled employees. In this type of method, HR give
advertisement in newspapers and professional journals. The main aim of giving advertisement is
to attract candidates in large number of highly variable quality.
Educational institutes: It is called direct recruitment from educational institutions that
requires professional as well as technical qualifications that has become a common practice. This
direct recruitment and recruitment from educational institutes is beneficial for the company in
order to get and achieve suitable candidates.
Promotions: Promotion is also a type of external recruitment as in this type HR generally
shifts their persons and employees to higher position. It is beneficial for employers and
employees as it motivates and encourages employees to improve their performance in order to
get an opportunity of promotion.
Transfers: Transfer is an external source of recruitment. It means to shift person and
employees from present jobs to other similar jobs in this type the number of persons and
employees do not increase. There are various benefits of following this process and method such
as it improves morale of employees and promotes loyalty.
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This function has also been critically analysed and it has been ststed that employees feel
discriminated in the recruitment and selection process on the basis of gender. This company
more focuses on recruiting male candidates and avoid to recruit female worker, so it creates
felling of discrimination among them.
Motivation: Motivation is the main important function that is being played by the HR of
Simonds Farsons Cisk company as they help in encouraging and motivating employees towards
achieving the goals by increasing their growth level. It helps them in changing and reducing
negative attitude, improving performance level of employees, creating supportive working
environment and decreasing labour turnover. For motivating employees, HR uses various
methods and theories such as Maslow's need hierarchy, reinforcement theory and McGregor's
theory X & Y. All these theories help them in identifying the needs of employees and then
provides motivation according to the needs of employees. Motivation is not only beneficial for
employees of Simonds Farsons Cisk company but also beneficial for employers as employers
can decrease the rate of labour absenteeism & turnover, improve interpersonal relationship and
also increase its brand favourable corporate image (Beckmann and Heckhausen, 2018). On the
other hand, employees can get various monetary and non monetary benefits which can fulfil their
needs and satisfy them, they have better scope of improvement their skills and knowledge.
This function is also can be criticised at some level and situation. The company tries to
motivate their employees but it does not using the best strategies and models for them so their
employees are feeling demotivated in some situation. It more focuses on the internal sources by
which their existing employees feel demotivated and dissatisfied. It is not also focusing on
providing equal motivation so it requires to motivate employees ion an equal manner.
Performance management: Human resource of Simonds Farsons Cisk company is
responsible for achieving the company's vision by performing and playing functions.
Performance management of employees is one of the main function as it creates a working
environment in which all level of employees are able to work to the best of their abilities. It is
important because employees are more likely to work effectively in this type of working
environment and they help to the company in increasing sales and profitability to the great
extent. There are some benefits of playing this function such as it builds and global leadership
pipelines, it improves employees learning and also help the company in retaining the best and
skilled employees within an organisation for the long run.
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Human resource development: Human resource development plays an important role
with the main aim of developing HR management. For this It provides various opportunities to
employee for improving their skills. For improving their skills it provides training and
development to them. Training and development function is also played and performed by the
HR of an organisation (Andersson and Xiao, 2016). Good training and development programs
help the company and HR in retaining the right and skilled employees within an organisation by
increasing skills and knowledge of employees which they need to improve. Every employee has
some weakness and areas which they want to improve for performing in an effective manner. HR
of Simonds Farsons Cisk company uses various strategies and programs for increasing
knowledge of their employees. By providing training to employees It makes their employees
more able to perform productively and take competitive advantages.
This development function can be critically analysed that Simonds Farsons Cisk
company do not focus on improving and development their employees so their employees
sometimes feels dissatisfied. So it requires to solve this type of problem by more concentrating in
this function by making the best strategy related to human resource development.
RECOMMENDATION
From the study it can be recommended that HR should use comparison and rating
methods for performance management. By using and managing by objectives and rating method
it can manage employees performance which can help them in the future and retain their
employees and also can improve their performance level. In the type of rating method, it can
provides and rates to employees for their performance it can show employees their growth level
which help them in encouraging towards achieving goals.
In the context of motivation function and for making this function more relevant and
effective, It can be recommended that HR can use Adam's equity and Herzberg's 2 factors theory
of motivation. With the help of Adam's equity theory it can more encourage and push employees
towards achieving their determined objectives. Equity theory makes feel satisfied and equal to all
employees and it also prevent them from discrimination. Herzberg's 2 factor theory help an
organisation in analysing the needs of employees. Each and every employee have mainly 2 types
of needs such as financial and non financial. This motivation theory has 2 factors such as
hygiene factors and motivation factors or motivators. Hygiene factors includes working
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conditions, interpersonal relationships, wages & salary, policies and rules etc. On the other hand
motivators includes achievement, recognition for performance, personal growth, responsibility
etc. Hygiene factors are all about salary and secondary working conditions. It has been said that
these factors do not lead positive satisfaction for the long run but if these factors are not present
then it leads to dissatisfaction. So HR should provide them these factors and use this theory of
motivation in order to motivate their employees.
For increasing the efficiency of hiring and recruiting it can be recommended that HR
should use and follow some practices of recruitment such as recruitment planning, strategy
development, searching via various platforms, screening and evaluation & control. It can also
make the best recruitment strategy and for election process it uses old and existing methods so it
can use the modern method and can select their employees by online and social media platform.
Sometimes it becomes difficult for candidates to come at office if they live far away from the
office and destination then they should given an opportunity of giving interview by online
screening. In the context of recruitment and for saving the cost of recruitment it should focus on
internal sources as there are various options for filling vacant posts such as promotion of existing
employees, transfers, previous applicants, employees referrals etc. Internal sources can save their
time and cost and can also motivate and increase morale of existing employees. Simonds Farsons
Cisk company do not follow and concentrate on internal sources of recruitment so it requires to
focus on promotion and transfer recruitment method (Liu and et.al., 2018).
In the context of human resource development and for making this more effective it
should focus on creating and developing a culture and working environment of continuous
learning and development, it can also measure and monitor effectiveness of its employees. By
allocating tasks and works among team it can increase collaboration and a culture of learning. In
this type and team working, employees get opportunities of learning new things from their
seniors which increases their knowledge about particular topic.
TASK 3
Evaluation of HRM software programs that are available off the shelf and beneficial for the
company
HRM can be defined as a combination of various systems as well as processes that
connect HRM through HR software. HR is an important part of any type of company because
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they play various functions and the main function is recruiting the best an d potential employees
with the main aim of achieving the company's pre determined goals (Rao, 2016). There are
various HRM software and programs that make their functions and performance easy such as
Bamboo HR, Zoho people, smart recruiter, Fresh team, review snap, Zoho recruit, work day etc.
Some software programmes are described as below:
Smart recruiters: This software is mainly useful for recruiting skilled and qualitative
employees. It is an effective tool and platform that can help HR of Simonds Farsons Cisk
company to manage recruitment drive (Turos and Strange, 2018). The main characteristic of this
software is it can be opened in mobile phones also in order to accelerate hiring responsibilities
without compromising the quality of the selection process. It has negative impacts also as HR
and other people can operate this from mobile phones as it became the risk of hacking and it can
be hacked by others. It provides other benefits also like attendance tracking, performance
management and payroll coordination. It is called all in one platform and software consists of
various features.
Recruiter box: This is also an effective and trusted software. This software is being
trusted by several companies such as Olark, Wolfram, Makita etc. It is also equipped with tools
such as applicant tracking, workforce planning, candidate evaluation etc. This software also
helps the company in hiring skilled and the best candidates ion order to increase productivity and
profitability of their business. It has some limitations also as it does not offer payroll
management so it can create a problem for the company.
Bamboo HR: It is called the best HRM software because it has comprehensive set of
HRM features. This software provides various benefits to HR as it helps them in tracking
attendance of their employees, evaluation of performance, payroll administration and benefits
management. This platform provides all the benefits as related to fulfil employees needs and
requirements for growing and developing the business. It has also been stated that Bamboo HR
software won the best HR management software so it can easily be said that it is very helpful
software for Simonds Farsons Cisk company. It is beneficial for employees also as they can get
and collect all the informations and then take actions by evaluating data (Yuan and et.al., 2019).
Fresh team software: This HR software offers various benefits that fulfil all recruitment
management needs. It allows HR of Simonds Farsons Cisk company to perform everything from
candidate sourcing to offer management. Fresh team software called an effective software as it
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provides a comprehensive set of solutions in order to maximize their recruitment process. Other
than this feature it has other various benefits including resume parsing tools, assessment
management and interview scheduling. It has some disadvantages as it does not provide
workforce management facility (Nguyen-Duc, Shah and Ambrahamsson, 2016). Simonds
Farsons Cisk company can use this software for hiring and recruiting the best and potential
candidates in order to achieve their goals.
It has been identified that the company should use and focus on Bamboo HR software as
it is the best among all softwares of HRM. It also does not have some limitations as compared to
others and can provide various benefits and can satisfy their needs by taking a competitive
advantages.
TASK 4
The characteristics of effective leaders and relevant models to justify
There are mainly 2 types of theory and model of leaders or it based on 2 leadership
theories such as trait based and skilled based. It has various characteristics as good leaders are
effective in direction, guidance, inspiration because of their higher level of commitment,
ambition and confidence.
According to the (Hargie, 2016), skilled based theory of leadership is wholly based on the
characteristics of many leaders whether they are successful and unsuccessful. It states and said
that leaders need to improve some essential skills with the main aim of becoming an effective
leader. The main characteristic and skill that is requires to be developed by an individual for
solving critical problems and issue is technical skill and conceptual skill and the ability to solve
problems by technical knowledge. It has some advantages and disadvantages such as anyone can
become a leader if they have some skills and a set of skills within an organisation. Conceptual
skill are based on a leader and an individual thinking. For developing this skill, there ia a
requirement for an individual to have the ability of expressing their ideas and views or in other
words they have a skill of communication.
It is suggested that, leader of Simonds Farsons Cisk company need to focus on
improving communication skill and technical skills. It is important to improve and develop both
skills because it can help them in improving relationship with employees and their followers.
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The main aim of focusing on improving technical skills according to the skill-based leadership,
leader of Simonds Farsons Cisk company can solve any type of problem which occur in their
company as they operate and provide food and beverage services.
According to the (Wyatt and Silvester, 2018), trait theory of leadership also play an
important role and it states that effective and the great leaders are born not made. It is just
opposite of skill-based based theory. This theory states that there are some characteristics which
requires to become a leader and effective leaders posses all characteristics and qualities by birth.
According to the trait theory there are some common skills which are not being developed and
taught as they are already in an individual includes self confidence, aggressiveness and
intellectual skills. It is important for Simonds Farsons Cisk company to focus on improving
these skills and tries to find a leader who possess all these skills in order to become in a
competition and for taking a competitive advantages. They should also require to become task
oriented rather than becoming relationship oriented. Task oriented leaders can improve their
performance level which can directly lead in increasing sales and profitability of their food &
beverages business.
There are some characteristics that differ leaders from non leaders such as ability and
desire to lead people, self confidence, honesty & integrity, ambition & energy and job relevant
knowledge. This theory and characteristics of leaders are valid and provides a vast understanding
& knowledge of the leader element in the process of leadership (Antonakis and Day, 2017).
CONCLUSION
From the above study it has been concluded that HR played a significant role in an
organisation. HR has overall all responsibility of achieving their company's goals and objectives
by performing various functions. It played and performed performance management of
employees, motivation, recruitment and selection, improving & developing interpersonal
relationship functions. For analysing needs and demands of employees it also used various
models as well as approaches of motivation, performance management with the main aim of
managing all the human resources in an effective manner. It has also shown various
characteristics of effective leaders which solved every type of problems and issues which
occurred in an organisation. For solving critical problems, it has also used the best and suitable
models and theories of leadership for making a significant growth. There are various models and
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methods of performing functions like 360 degree performance appraisal, behaviourally anchored
rating scale for performance management but it has recommended to use rating methods and
comparison methods for managing performance of employees with more efficiently.
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Rosenbach, W. E., 2018. Contemporary issues in leadership. Routledge.
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Wyatt, M. and Silvester, J., 2018. Do voters get it right? A test of the ascription-actuality trait
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