Managing Human Capital and Leadership

This document discusses the approaches used by organizations in managing human resource management, including the Fombrun, Tichy and Devanna Model and the Harvard Model. It also critically discusses the HR functions of an organization in relation to strategic human resource initiatives and provides recommendations for improvement. Additionally, it evaluates HRM software programs. The document focuses on the case of Marks & Spencer, a British multinational supermarket.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Approaches used by organisation in managing its human resource management.................1
TASK 2............................................................................................................................................4
Critically discussing the organisation HR functions in relation to strategic human resource
initiatives along with recommendation to improve................................................................4
TASK 3............................................................................................................................................9
Critically evaluate a number of HRM software programs.....................................................9
TASK 4 .........................................................................................................................................11
Identification of characteristics of an effective leaders considering the issues faced by the
organisation .........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
HRM practices or functions is now become the most important aspects of the
organizations to gain market growth and success criteria. Human resource capital management
is the department function which responsible to ensure the enough capital within the company
without which company can not survive. In other words, human capital management is the
function which managing the organizations employees who contributes the significant role
overall the productivity of management. However, This management department also ensures the
process of acquiring, training, managing and retaining employees for them to contribute
effectively in the process. Further the study has been based on human resource capital
management of Marks & Spencer which is the British multinational supermarket in UK. It deals
with consumer products, clothing, home furnishing, electronics etc.
However, the present study will explains about the relevant model or approaches of the
company. Besides, also critically explained the functions in relation to strategic human resource
initiatives in relation to strategic human resource initiatives. Present report gives the insight
knowledge of human resource management by explaining the different context through
discussing the characteristics of effective leaders taking into account.
TASK 1
Approaches used by organisation in managing its human resource management
It is important for Marks and Spencer to manage its human resource management in order
to ensure that each and everything is going as per the requirement and the functioning of the
department is flowing smoothly (Cooper, 2015). In order to hire appropriate employees, develop
and build potential of the people working in the organisation, it becomes important for the
human resource to manage its activities effectively. In Marks and Spencer, the organisation's
Human Resource department tends to make use of a variety of models in order to ensure that
appropriate activities of human resources are taking place within the organisational environment.
Below explored are the models used by the organisations HRM in order to manage its human
resource management effectively:
 The Fombrun, Tichy and Devanna Model: It is one of the most effective model used
by the organisations across the world. The HRM of Marks and Spencer makes use of this
model in order to ensure appropriate functioning of the Human Resource practices within
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the organisation and ensure that set goals and objectives are being achieved. This model
is one of the oldest model as it dates back to 1984. It emphasizes on four main functions
which are selection, appraisal, development and rewards. These four functions tends to
constituent the human resource management components and are expected in
contributing the efficiency of the organisation.
(Source: Models of Human Resource Management, 2018)
In Selection method, the organisation's Human Resource management tends to select the
appropriate employees for the set job roles. It is important for the organisation to at first select
the appropriate employees. Selection of the right employees helps the human resource
management of the organisation with employees which are skilled and appropriate for the
organisation (Jahan, 2016). In appraisal, they measure the employee performance and the ones
which are performing good tends to receive the best appraisal from the side of the organisation.
This helps the organisation to retain its employees for a long time as well. As per these, the
employees of the organisation are provided with development opportunities and these employees
gain more knowledge and skills for further development and growth aspects. The employees are
provided with appropriate rewards at times when they perform good. Also, this is the time when
their performance gets appreciated.
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Illustration 1: The Fombrun, Tichy and Devanna Model

 The Harvard Model: This model is very comprehensive an it seeks to comprise six
critical components of Human Resource Management. In Marks and Spencer, the
dimensions which are included in these models are situational factors, stakeholders,
interests, Human Resource outcomes, long-term consequences, HRM policy choices and
a feedback loop through. The outputs flows directly into the Marks and Spencer and its
stakeholders.
(Source: Human Resource Management Models, 2017)
The Harvard model starts with the stakeholder interests. These includes shareholders,
government, management, employee groups and more. Along with it, these interests tends to
define the Human Resource Management policies. Marks and Spencer tends to achieve
organisational growth and development from the usage of this model. The situational factors are
next ones influencing these interests. The situational factors tends to include the characteristics
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Illustration 2: The Harvard Model

of workforce, unions, business strategy and conditions etc. It is important for the organisation to
ensure that these factors are being considered in order to reach new growth and ensure that
appropriate development is taking place (Johnston and et.al., 2016). Both of these, situational
factors and stakeholder interests tends to influence the Human Resource Management policies.
They include activities of human resource such as reward systems, training and recruitment.
The Human Resource Management policies at times when done well tends to lead in
outcomes which are positive. This help the organisation to reach new growth and ensure that set
goals and objectives are being achieved. The positive outcomes which Marks and Spencer
receives from the organisation includes cost-effectiveness, competence, commitment, and
employee retention. The Harvard model allows the organisation to ensure that appropriate
functioning of the main activities of Human Resources are taking place. Marks and Spencer
tends to gain competitive advantage and knowledge development from the usage of this model.
It is important for the organisation's Human Resource Management to make use of these
models in order to gain a strong competitive advantage as well as make Marks and Spencer
achieve set goals and objectives. It can help the organisation in reaching new growth and
developing its potential and ensure that appropriate development is taking place. The Human
Resource management of the organisation plays a vital role in making the organisation reach
personal development and reaching set growth and development. The activities needs to
managed well within the organisation and its environment in order to reach towards best
potential and ensure that set goals and objectives are being achieved effortlessly.
TASK 2
Critically discussing the organisation HR functions in relation to strategic human resource
initiatives along with recommendation to improve.
HRM is the most essential function within the organization that always concern for
employees which creates the best product or company environment. In other words HRM
functions creates the positive environment for employees and make the effective and productive
team (Kultalahti and Viitala, 2015). All function of HRM has only one purpose is that to gain the
workforce productivity performance and gain the M&S profitability capital gain. All such
unction able to accomplish the strategic plans by taking the strategic human resource initiatives.
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Such as new productive development for human resource, implement new workforce planning,
development employee productive and many more.
HRM functions of M&S mainly focuses on the recruitment, providing guidance to the
manpower in a company. This all kinds of functions mainly deal with employee managing work
majorly related to the following manner in terms of selecting people, compensate, performance,
and secure the safety of the employees working within the organization motivating employees as
well.
Different functions of HRM given below :
Recruitment & Selection Function
Recruitment and selection is the significant function of the HRM in order to create the
strategic management planning or to to develop the M&S capital productivity. The recruitment &
selection process is the important activity where HR should have to select the best employee for
each position that can helps to reduced the costs and improved the bottom line. In other words,
recruitment and selection try to recruit the best candidate for its organization which brings new
development opportunities for the company (Luu, 2016). In present modern era, company used
different types of methods of selection through internal or external. In order to take some
strategic human management initiatives company can modify its selection criteria to attract more
talented and productive candidates for the company. For that, M&S can choose candidates on the
basis of high potential criteria like high communication skills, professional skills, development
targets and brings the effective management challenges goals. Along with that, M&s also need to
apply fair recruitment and selection policies to maintained the positive work culture
environment.
In order to critically analysed Recruitment and selection process sometimes create the
discrimination among the Gender, race and religion. In order to reduce such practices M&S can
use some digital technology to reduce this happening and make the fair decision towards the
employee development.
HRM Function
HR enhancement is another significant function of HRM to develop the human resource
which helps to create the increase the positive behaviour within the working environment and
goals (Meijerink, Bondarouk and Lepak, 2016). Basically, HRM is the systematic framework to
improve the efficiency level of professional skills and knowledge abilities in an proper manner.
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M&S adopts methods to develop employee performance by training, employee career
development and by improving its performance management, coaching, mentoring and
succession planning all those are the basic and efficient for the high goal performance.
Sometimes due to the common repetition process all such methods become boring and inefficient
for new employees. For that, M&S should need to focused on the new technologies or improves
strategic management initiatives (Noe and et.al., 2017). Some of the new methods of training are
shadowing and cross training. Cross training is the significant practice and method to improve
the efficiency of training and development where the manager team the roles and responsibilities
of other job at their company to just enhance their skills and effectiveness. So in other words,
human resource development includes as individual after the selection process task and goals.
In order to critique this approach it shows that without proper training & development
employees cannot succeed the proper attention and goals. In other words, without proper
attention and long lasting development it makes dis-satisfactory attention towards the employees.
Another negative affect that affect the employee performance that is low effective
development growth, limited growth and scope for further development. So such environment
can reduce the employee motivation. This is the most important and significant function of
human resource development that gains the overall employee development process to fulfil the
long lasting growth for the employees. The aim of this HR function is to give to the HR
management growth and specialise the personal growth.
The positive concept of this function is to gain the employee productivity and better
relation and greater profitably for any organization. And makes the best outcomes results and
growth for the better growth (Poole, 2016). Sometimes it also define the long lasting approach
and also makes the best process and leading development which helps to define the best
developing outcomes for the best development.
Acceptability towards the change can be created a good working advantage that helps to
deal with long lasting opportunity and makes profit for the company.
Motivation of Human Resource Function
Motivation is the best and the most significant concept of the organization. M&S is the
high advanced work culture where the employees get different types of motivation and gain the
self satisfaction from the working environment. This is the best leading strategic approach that
creates the good positive environment within the work culture it also increased the employee
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performance and development growth. In other words, employee motivation is the foremost
function for human resource department that always ensure the employee satisfaction and growth
results. Often many of the multi-corporation companies encourage teamwork by increasing and
influencing people in the best contextual manner (Pourias, Aubry and Duchemin, 2016). This can
be the best process to deal with uncertain situation where the employees of the company is
always most supported and responsible towards the work and company development.
In order to critique without the helps of motivation employees does not able to perform
their task with full enthusiasm. Or maintaining interest and their commitments. Company should
have to build the motivation and confidence among all workforce to sustain it work productivity.
Also, dissatisfaction and lack of communication can lead the company cost high and also
less motivated towards the work goals which might affect the company overall outcomes.
Performance Management Function
Human Resource department also needs to ensure the each employee performance and
take steps according to that as well (Renwick and et.al., 2016). Basically, performance
management system ensure the level of employees and try to improve their weaknesses and
lacking area. It is the most significant function for HR manager that should be conduct in a
proper manner. This function of HRM can also motivate employee growth and development in
an significant manner. In this process some of the measurable techniques are like taking
feedback from clients, rewards and recognition, review. Many of the functions of HR helps
managers to maintained the good working environment and expectations from employees.
(Sarvaiya, Eweje and Arrowsmith, 2018). It allows HR manager develop the individual
performance to meet the company aims and objectives. out the final aims and objectives.
Company incur their high cost on this performance management which reduces the positive
outcomes and make the best dealing challenges gaols. Planning setting clear goals and objectives
that set the better development goals. All along with that it brings the best and leading
department goals. This function of HRM is highly admired by the different opportunity that
impact the best leading opportunity and task. This function of HR is more influenced by the
different opportunity.
Performance management is the helpful function for HR manager to setting the aims and
objectives through employee can easily understand the expectations for the work (Torrico and
et.al., 2018). In the contrast by not focusing on the employees performance it might get affect the
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company overall performance and low outcome productivity. Performance management is the
also a process under which employees get training, coaching or adjusting the individual
performance outcomes.
The best benefit that company gained by the performance management is development of
an individual. This process also enable or fill the difference gap which helps to define the
leading management task.
In critical terms this process sometimes give negative impact on Low skilled employees
which face low growth within the organization in terms of the company. All those employees get
demotivated and also give negative feedbacks to other employees. Such situation can restrict the
scope of performance management and would have been given the low productive growth to the
system. However, performance management is the continuous activity which does not end once a
performance appraisal is delivered (Volkow and et.al., 2016). Ongoing performance growth may
increase the business results and empowered workforce. So that, it has been concluded that this
HR function involves the high cost of the company which needs to be covered by the employee
good performance.
Recommendation
HRM is the backbone department of the organization, that creates the long lasting
development goals which brings the company profitability. It is become necessary for the
company to gain the internal environment and enhance the productivity level of the company
opportunity and gain the best goals and opportunity which also define and manage the work
opportunity and goals. In order to improve the company HRM function in order to prepare the
stronger strategic management company requires to modify some good changes among the all
HR functions for better improvement.
Improve hiring Process
M&S requires to modify their hiring process to get the attention of high skilled
candidates. In present market, candidates always looking for those organization who is more
engaged with digitally technologies and which process is cost effective and taking less time or
growth (Zehir and et.al., 2016). On the other side, employer also need to make sure about the
candidate which will going to select for the organization in future. In order to build a effective
team, Company need to invest some time in pre-employment screening and find out the best
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more potential employees for the company. Also organization need to make sure weather
employee is belongs from the good environment or not.
Educate Employees
This is the another strategy that should M&S needs to adopt to make the employees
happy and satisfied. Along with the good training some more education company needs to
provide to employees to gain some more opportunity and or professional or personal gains. Such
digital learning classes to employees to learn latest updated knowledge to conduct the work
pressure, and how to manage the customer satisfaction such all smart education can give the
good advantage to HRM to get the high potential growth for the company (Zehir and et.al.,
2016).
Be Clear about expectations
Despite of the that hiring process is the best process or way to contribute in the busines
functions. This can help in strategic management and achieve the company aims and objectives
into more efficient manner.
Utilize HR software
HR manager can also take use of different growth and managing factor to enhance the
materialistic growth and form a better result for the company (Zehir and et.al., 2016). This
solution will save a lot of paperwork and job which done on the basis of better work and goals.
HR software is best way to promote the HR activities which also brings the best outcome and
growth in order to best and better work performance.
TASK 3
Different HRM software programs
HR main function is to recruit the best candidate for the company and as in this new era,
HR of the firm are also uses advance technology and in the same way, there are many HR
software programs are introduce that help a business to saves time as well s money. These are as
mention below:
BambooHR: This is one of the most effective tool that helps users to smooth switch
from a spreadsheet to HR information system so that it will help to meet the business needs. HR
of Marks and Spencer can also use this system for Applier Trailing Scheme (ATS) that helps to
pull off the various key aspect of worker being rhythm (Noe and et.al., 2017).
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Zoho People: It is another software that can be used by HR such that it aid users to pull
off the worker transaction which includes clip, attending and time off. Through this software, the
HR of the firm enhance heir Working capabilities and also organizes HR process in effective
manner. This system also helps to keep track of leaves, holidays and tome rendered.
Gusto HR: This is another important software that offers a good selection of HRM tools.
This platform also allow to make the structure map and provide an worker enchiridion in order
to contour the work advancement and also helps to keep the team associate on aforesaid leaf at
all time. This software also help HR to keep the personal and important information confidential
(Holzer, 2019).
SmartRecruiters: This software is mainly designed for recruitment management and
hiring process. Such that it has a mechanization tool that can be designed as per the ad hoc
demand. Ven this system is also run in mobile as well in order to manage the recruitment
process. Moreover, this software also make it more easier to speed up by hiring the responsibility
without flexible the choice procedure.
Among all, Marks and Spencer uses BambooHR as a HR software program because it
helps to saves time as well as money. This is one of the mostly used program such that more than
13000 companies are uses this software as it supply organization with all necessary HR
characteristic such as paysheet direction, public presentation rating and worker retentions. It is
the only software that comes with advance functionalities such as real time reporting and
employee self service and also helps to make one of the most comprehensive platform on market
as well. In addition to this, using BambooHR as a HR software in M&S will make the process
more efficient and also give worker more than time to pass different trading transaction in order
to lead a company towards further level of success (Koelmel and et.al., 2019). Therefore, this
software will help a firm to maximize the time as well as resources as effortlessly and also
provides solution which assist streamlining and automating HR activities such that it make the
hiring process more effective. Thus, using BambooHR is quite beneficial for M&S.
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TASK 4
Identification of characteristics of an effective leaders considering the issues faced by the
organisation
The skilled based theory of leadership highlights the important skills which are required
to be developed by an individual in order to become an effective leader. The skills highlighted in
the skills based leadership model will assist management in identification of those people who
have capability to lead people in an effective manner. Skill based theory states that an effective
leaders have specialised set of an abilities as well as core competencies which they developed
overtime. It is the hypothesis which also states that it is the skills which effects an individual
performance at a leader. According to to the skills based leadership model, the skills which are
required to be developed by leader in marks and Spencer in order to deal with different types of
issues are technical skills which are required to resolved the technical issues or errors which
might occur in HRM system or other business operations (Leroy, Van Dierendonck and Den
Hartog, 2018). By developing such skills , leaders in marks and Spencer can provide training to
workers which could be helpful in increasing the productivity of firm. Development of technical
skills will assist leader in increasing their working efficiency and productivity.
In addition to this, considering the issues related to inefficiency in operations, leaders in
marks and Spencer organisation is required to improve their management skills. In addition to
this, they are required to increase their knowledge about the techniques which can be utilised for
managing people as well as business activities (Skills-Based Leadership Theory, 2019.).
Management knowledge and skills are needed for administrating business activities and
managing people within an enterprise.
Leaders in marks and Spencer should also improve their communication skills, as it will
assist them in developing the strong relationship with the employees that is very much essential
in order to motivate them for making the significant contribution in accomplishment of desired
business objectives. According to the skills based leadership theory, leader in marks and
Spencer should improve their conceptual skills, as it is the ability which is required for
establishment of vision (Di Fabio and Peiró, 2018. ) . The other abilities which are highlighted
in the theory and required to be either developed or improved by leaders in marks and Spencer
are problem solving and social judgement skills. S according to the skills based theory, every
buddy can become leaders by just developing few skills and core competencies.
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Trait based leadership model, states that an effective and great leaders have common
characteristics. It is the model which is based on the assumption that leaders are born with
certain characteristics. Trait leadership theory also highlights the behaviour characteristics which
are posses by an effective leaders (Trait Theory of Leadership,2017.). According to the threat
theory leader in marks and Spencer is required to develop the following skills such as self-
confidence, aggressiveness, intellectual skills which are needed in order to deal with different
business issues. In addition to this, as per the trait theory of leadership , leader in marks and
Spencer is required to become more task oriented and they are required to develop social
characteristics which will assist them in managing people in effective manner.
CONCLUSION
Managing the human resource tends to play a important role within the organisational
environment. The practices of human resource needs to be followed well and the human resource
managers ensure that they are being followed well. As per the above evaluations, it has been seen
that the in order to effectively manage its employees or resources the human resource of the
organisation tends to make use of a set of models to increase their efficiency. The models which
are used by the Marks and Spencer includes the Fombrun, Tichy and Devanna Model and the
Harvard model. These models helps the organisation in ensuring appropriate growth and
development is taking place within its working environment along with ensuring set profitability
is being achieved. As per the drawn conclusions, it has been found out that the organisation
needs to hire effective individuals in order to solve the issues related to performance and
motivation. Along with it, it has been seen that appropriate training and development needs to be
provided to the employees as well in order to develop their personal potential and growth. These
all strategies identified would allow Marks and Spencer to grow and achieve its chosen goals and
objectives. Along with it, they would provide the organisation with a direction to gain
competitive advantage and adapt into new dimensions.
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REFERENCES
Books and Journals
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