Managing Human Capital and Leadership

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This report discusses the importance of managing human capital and leadership in organizations, with a focus on Euroclub hotel. It explores different HRM models and approaches, recruitment and selection methods, performance appraisal, training and development, compensation and benefits, and motivation. The report also highlights the role of HR in strategic HR initiatives.

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MANAGING HUMAN
CAPITAL AND
LEADERSHIP

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Abstract-
This report summarized that Euroclub hotel HRM has been adopted different types of
recruitment and selection methods. With the help of using the best HRM software programs
HRM is able to work effectively and manage their people as well which is beneficial for
organization.
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INTRODUCTION
Human capital management plays significance role in helping companies HR department
maximize entire productivity & happiness of workers. In order to manage human capital, HRM
develop or design different techniques and systems. Leadership is term that are used
interchangeably to depict someone who are able to manage group of people, with the help of
choosing effective leadership style or management, human resource department can perform
their day to day job in systematic way.
The present report is based on Euroclub hotel established in Malta, it is set in heart of
Qawar, on island of Malta.
This study explains relevant HRM models and approach of company to management of
their workers. It justifies range of Human resource functions in relation to strategic HR
initiatives with suitable suggestions as to how it will improve these. Furthermore, this report
clarified HRM software programs and characteristics of good leaders taking into consideration
all problems determined in below tasks.
Literature review
Human resource models and approach of Euroclub hotel to management of their HR
Brewster, Mayrhofer and Farndale, eds., (2018) highlight that Fombrun model of HRM
emphasizes four functions and their interrelations, four function are appraisal, selection, rewards
and development in regard to management of Human resource in Euroclub hotel. These four
constituent elements of HRM and expected to contribute to organizational effectiveness. This
model is incomplete as it only centring on four function of human resource management and
avoid all contingency and environment factors that affect HR activities. Fombrun model is one of
the best HRM models which is easy to use and serve heuristic framework for explaining
significance and nature of HR functions.

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HRM of company apply this model in order to manage existing workforce and new
applicants at workplace that is beneficial and helpful for business as they can sustain for longer
period in retail sector.
Selection is the first function of Fombrun model, according to this, Human resource team
will select the best candidates. In opinion of Mejia and Torres, (2018) employee selection refers
to the procedure of evaluating and interviewing people for specific job & selecting person for
employment based on some criteria such as experience, abilities, skills and most important is
qualifications. The purpose of selection function is to picking or choosing individuals who have
applicable qualifications to fill vacancy in company. The most common purpose is to select
person who can successfully do their job, from pool of skilled and qualified applicants.
Situational tests, integrity tests, ability, data revealing and personality describing tests are the
best methods of employee selection that can use by HRM.
Marchington and et.al., (2016) stated that selection methods work effectively to manage
human resource, but it takes long time instead of other methods to achieve goal. Appraisal is
the much better than other functions available in Fombrun model. Workers performance
appraisal is process often combining oral and written elements, whereby HRM examine and give
feedback on staff job performance, including stage to redirect or improve activities as required.
Management by objective is one of the performance appraisal methods, that mostly used by
Human resource management because it is less time-consuming and cost effective. It includes
setting up of goals and objectives for staff either by manager or employer, or both. This
performance appraisal approach helps people to do better because they are well alert of their
goals and already knows quantity that needs to be delivered.
Illustration 1: Fombrun Model
(Source: HRM model, 2019)
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Development is second last function of Fombrun model interrelated with all the above
activities. Employee training, career planning, performance appraisal and employee rewards
programs are the different types of methods of HRD, used by human resource department to
manage their people and retain them as possible as they can.
Rewards is the last and most effective function of HRM, according to Fombrun model.
It effectively helps in retaining people and managing performance of workforce. Effective
management of HR is aim of Euroclub hotel in which human resource management play their
role in systematic manner. They can use different types of approaches-
In view point of Berriet-Solliec and et.al., (2018) system approach is quite beneficial
regarding above statement. It is set of interrelated but separate components working together for
same goal. For example, HRM is system have parts such as training, procurement etc. one part
influence and affected by other. It is a good concept which views firm as an interconnected
purposive programs that consists of different business sections. An company is system whereas
human resource management is sub system. Training and other methods are interrelated with
each other included in system approach used by HRM to manage people effectively and retain
them. This method is used to manage current work force that support long term business goals
and results with strategic framework.
David and David, (2016) contradict that strategic approaches in regard to management
of existing employees is much better than other approaches adopt by firm. Worker is the strategic
asset of company, they have competencies and basis of competitive edge. HR is combination of
skills, talent, some of them are other ability and inborn, they have obtained through education as
well as learning. Strategic human resource management method focuses on employee
management system and longer solutions, & stress organizational development interventions. It
also includes achieving worker organizational fit and other features that assure people add value
to firm. By developing systems to gain better organizational and workers performance, strategic
HRM promotes following benefits, such as lower high employee turnover, increased interest of
people and maximize staff commitment. It helps to create good future, identify strategic
directions, increase market share and profit margin, avoid competitive convergence and take
better business decisions.
Human resource approach of organization to management of their staff is relevant in
context of business. According to this method, individual are human beings with a lot of
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intellectuals and potentials abilities, it is very essential to treat worker with dignity and respect,
that enhance people motivational level and set good image of management in mind. When junior
and seniors at workplace treat people with respect, they can increase work efficiency of workers,
assure them that they are working at good and effective environment. Managers will encourage
their employees to take participation in decision-making process, it helps to motivate other
person, make business more creative and boosts productivity rather than past few years.
Human resource functions in relation to strategic HR initiatives
According to Papa and et.al., (2018) human resource management is strategic method to
effective administration of worker in firm such that they help its business to gain competitive
benefits and raise their position within retail sector. It is designed or planned to increase staff
abilities or work in service of an employer strategic goals. HR department with skilled team
members handles many essential function of Euroclub hotel. It is helpful in offering labour law
compliance, record keeping, compensation, training and help with managing specific
performance problems.
The key functions of HR include recruitment or hiring, human resource betterment,
performance management, motivation & other.
In view point of DeCenzo, Robbins and Verhulst, (2016) workforce planning and
employment (selection and recruitment) is the main function of human resource management
in Euroclub hotel, it includes orientation, selection, recruitment and exist procedure. Department
managers or leaders effectively work with human resources to identify staffing needs and to
complete vacancies in effective manner whenever need arise. Human resource selection group
strategically selects as well as recruits the best applicants for organization and assures existing
workforce efficiency thereafter in attempt to help their firm accomplish its objectives and goals.
Recruitment & selection is the primary accountabilities of HR team, they are responsible to hire
skilled people in order to gain competitive advantages, due to globalization the level of
competition within market is increased, that affect Euroclub hotel business as they have to beat
their competitors through hard work and effective performance, which is totally depended on
strong team who are able to work for firm in order to contribute in achieving common goals.
This part of job entails interviewing, advertising open positions, setting aside hours
devoted to hire new people and select candidates. In simple words, workforce planning and
employment is most essential operation in human resource department, it designed to enhance

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staff strength to meet specific goals. Success of employment and recruiters specialist is measured
by number of vacancies they fill and time it takes to fill those positions at work place. Screening
of new applicants will be properly managed by HR which allow them to hire skilled workers for
company. They source right peoples for right job, advertise job postings, coordinate hiring
attempts and conduct preliminary interviews with managers accountable for taking final
selection of job seekers.
As per view of Basak and Khanna, (2017) human resource department will use external
recruitment method, in order to hire people from talent pool.
HR development ( Training & development) is the second function and main function of
HR department. It is integrated use of company, training and career development efforts to
enhance group, individual & organizational effectiveness. It develops competencies that allow
workers in Euroclub hotel to perform recent and future jobs through planned learning activities.
Human resource is accountable while doing job in company for assuring that workers receive
proper training whether off site or in house, to adequately do their jobs. The manager of this
department encourage all the workers to take benefits of tuition reimbursement advantage that
give individuals an incentive to further education & use their acquired knowledge and skills for
betterment of business in general. In relation to strategic human resource, training and
development help workers to strengthen their ability of work, it helps to increase efficiency and
make them able to perform & complete given task on time in systematic manner. Development
and training increased morale and job satisfaction among staff members.
Total rewards (Compensation & benefits), HR benefits group in Euroclub hotel is
responsible for acquiring attractive benefits as well as compensation package for new applicants
and existing. It is one of the most amazing and highly effective function of HR, might include,
medical & dental insurance, competitive salary range, choice of life insurance, flexible spending
account, tuition reimbursement and many more. Human resource recruiter in company offer and
promote the best or most enchanting rewards package to those applicants who meet selection
criteria at some stage during interview procedure. Along with this, compensation reward package
is prepared on the bases of workers performance, considered by HR manager. It helps to retain
employees once hired and also gain attention of top talent people. Payroll specialist and human
resource compensation analyst oversee salary administration of new candidates, staff benefits,
process payroll and maintain workers files. Dispensation of payroll covers under accountabilities
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of HRM. Both elements are essential aspect of human resource management as it support to keep
workers motivated. Furthermore, benefits and compensation contribute to provide benefits to
staff members based on their performance and hard work brings best out workers at workplace.
Overall accountability of both component's manager it to organize company rewards and
compensation programs without discrimination and make differences based on age, gender and
skin colour.
Motivation is heart of human resource management, motivation is defined as procedure
which directs, energizes and sustain human nature. In HRM term refers to individual desire to do
the great possible job to utilize maximal efforts to work assigned tasks. It is considered as
procedure of encouraging, stimulating and inspiring workers for their maximum effort to obtain
improved performance. It is common understanding that motivated peoples subordinate their
objectives to gain company specific aims. Changes in organizational structure bring difficulties
for workers to perform in new environment, some employees cannot be able to work effectively
in new workplace after changes, as it affect working abilities and demotivate existing staff which
is not good for business. At that movement Human resource department, plays vital role, they
can adopt and apply different types of methods in order to motivate their staff and boost up their
morale as well.
Performance management refers to the continuing procedure of communication
between workers and managers, with mutual goal of achieving strategic goals and objective of
organization. Human resource department play essential role in implementing and designing
performance appraisals. Infect, they play role as mediator between functional heads and workers,
to assure smooth implementation of appraisals procedure in context of workers is the
responsibility of HR team. In include different important function of HR like rewards, feedback,
performance review and goal setting. Effective performance management system designed by
HRM established clear work expectations through which people can effectively understand what
is expected of their duty. With the help of performance management procedure team of this
department assure that outputs and set of activities will meets organizational objectives in
efficient and systematic manner. It only focuses on performance of company, departments and
staff in place to manager specific tasks. It is considered as process through which firm aligns
their mission, objectives and goals with existing workforce, available raw materials and systems.
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Worker performance management is necessary and essential HRM tools that affect people &
organizational growth as well as development significantly.
Performance appraisal is day-to-day review of labour performance and all the attempt
to firm, it is also known as annual review and performance evaluation method. It helps to
examine individuals skills, growth & achievements. Human resource manager and its team
members is highly responsible to ensure effective implementation of appraisal procedure. The
three basic components of this function is to give adequate feedback to each person on their
performance, to serve as common for changing or modifying behaviour toward additional good
working habits and to cater data to managers with which they can judge further job assignments.
They have to make sure activity is easy and does not take too much time, team members of this
section know accountabilities assigned to all people for them to design or create system where
their overall achievement will be rated with respect to their responsibility areas. Along with this,
HR team used different types of methods while designing performance appraisal system, such as
self evaluation, management by objectives, rating scale, and 360 degree feedback.
.Sheehan, (2019) risk management is considered as HR function, human resource
department workers along with administration manager is active in detecting risk causes that
pose threat to business for instance dismission of hazardous unnecessary material from work area
within company. Human resource risk management group take extra precautions in offering safe
work environment for their employees and its consumers. The team of this department issue
handbooks to their workers to educate them on risk management problems and also provide
safety training in order to develop ability among people to prevent themselves as well as other in
any sudden incidents such as fire at workplace. Individual face legal obligation to give hazards
free and safe work environment, while doing job in Euroclub hotel. Employer comply with
occupational health & safety administration in keeping proper records for all job related injuries.
HR of company plays two different roles in risk management function, first, individual are
source of risk for example, shortage of workers, staff refusing to take on additional
accountability or work, doing sloppy work etc. Second, people are essential in handling risk, i.e.,
worker use their ingenuity to solve unexpected issues, going excess mile for good of
organization, and group redesigning their own job to avoid unessential delays in getting work
finished.

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Recommendations for improvement
Human resource management use external recruitment approach in order to recruit new
people in Euroclub hotel which is quite beneficial for business, but they can get the best and
talented applicants when they use another methods along with the existing one. HR manager of
company is recommended to adopt internal recruitment approach. It consists of workers who are
already working in organization and on payroll of business. Internal recruitment is beneficial for
firm as it helps to save time and money as well in order to fill vacancy.
Idowu, (2017) different types of methods are available which human resource team can
use in performance appraisals system. To motivate team and retain workers for longer HRM
must use assessment centre method and 720 degree appraisal approach. The aims of 720 degree
approach for performance appraisal is mapping, monitoring, giving feedback, evaluating and
encouraging people to achieve goals of business.
Range of human resource management software programs available off shelf
According to Tanwar, (2017) HRM software programs help human resource department
of company to achieve their objective and goals through streamlining management procedures
and leveraging their tasks such as training, maintenance and recruitment of workforce. Usually it
helps to improve HR efficiency as well as productivity more than before. Purpose of HRM
software greatly differ due to variety of workflows of human resource administration from one
organization to next. Based on functionality, there are the most popular examples of software
programs.
Bamboo HR is one of the most famous and top HRM solutions, it is an online HR
information system that priorities' management to focus on workers and not on paperwork. It is
easy to use and intuitive cloud based tool that allow human resource team to create users team,
fields & tables, customize tabs, track benefits and integrate with third part app for applicant
tracking and payroll. It helps to tackle everything from payroll management and benefits
administration to daily attendance tracking & performance evaluation. So HRM can be sure that
it is equipped to manage their basic responsibilities.
Shikov and et.al., (2020) highlighted that Open elevator is better than Bamboo HR
system programs, it is a human resource software that centring on hiring workers that are highly
engaged and motivated. Developers of this software strive to secure company from hiring
indifferent peoples as it believes that recruiting highly engaged staff translate to higher rate of
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productivity and good performance for entire group. In order to achieve this, Open Elevator uses
matching approaches employed by dating websites to assure characteristic of hired applicants
with firm culture and their managers values. It comes with large dashboard that permits for easy
criteria based sorting, filtering, rejecting and short-listing of candidates. It is the only platform
centring on hiring for engagement, unlike other HRM software programs which manage workers
and track people hours.
From above analysis, it has been identified that Open Elevator is one of the best software
programs that would be beneficial for Euroclub hotel and its HR department. It helps team
transform workers into stakeholder who actually care about business. It is talent selection tools
that support company attract the most compatible candidate who will likely progress with firm
and become not just resources but stakeholders who add more value to hotel. Open Elevator does
this by using compatibility driven selecting algorithm designed to choose correct person among
hundreds of qualified and job seeking peoples. Software is not focuses on supporting users hire
and attract individual with better qualifications but also helps to consider their people
personality, matches it with leaders, managers and firm culture. It helps HRM to find worker
who have qualities and personality that is easily aligned with business mission, goals and vision,
it is beneficial in context of Euroclub hotel as save time and efforts choosing the best one among
number of people available in market seeking for good job.
Characteristics of effective leaders take into consideration all problems
The way leaders lead the operation of the business used to heavily depends on the
demand of situation and characteristics which is possessed by the leader to carry out the different
operation of the business. Lee and et.al., (2017) used to explain the same in their published
paper, as author highlights that there are many characteristics which need to be showcased by the
leader to overcome the different issue, good communicator is one of the same trait. As it very
important for the leader to pass on the correct message to the different employee in the
organization, so that there is good sort of clarity among the different level of the employee in the
organization. This will eventually help the company in building good working environment
which will reduce the employee turnover of the rate. Wilson, (2018) highlights that
communication characteristic of the leader will also help the leader in improving the morale and
motivation of the employee at the workplace. As good communication characteristic will help
the leader in understanding the different motivational factor of the employee in the organization.
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On the basis of the information derive leader in the organization can communicate the best
strategy to the employee to improve their motivation in the organization.
Konya, Matić and Pavlović, (2016) supports the above author by highlighting that
Decision making capability in the leader also can help the leader in reducing the amount of
employee turnover in the organization. As good decision-making capability will help the leader
in showcasing the opinion of all the employee in the different decision in the organization. This
help the leader in reducing the employee turnover rate in organization. This characteristic is also
supported by the Ocean trait model, openness is the trait under which this type of leader used to
fall.
In the published paper Garretsen and et.al., (2019) highlights that commitment and
positive attitude toward achieving the goal is the another characteristic which will help the
organization in improving the motivation of the employee at the time of change management in
the organization. As at the time of change in the organization all the employee feel uncertain in
terms on finding the direction in which they have to follow different direction. If leader at that
time in the organization shows the positive attitude and commitment toward define goal. It
passes on the good positive message to the employee, this contributes very positively toward
improving motivation of the employee. same trait by quoting the evidence of Ocean trait model,
as Conscientiousness aspect is the aspect under which this sort of the leader falls and this used to
define the leader must be thoughtfulness and of a goal directed behaviour.
CONCLUSION
From above, it has been concluded that by applying Fombrun model, human resource
management in Euroclub hotel effectively manage their existing workers and able to retain of all
of them. System approach and strategic approaches used by firm, that provide benefits as it help
to manage people and motivate them. With the help of effective HR functions, organization is
able to retain skilled labour and gain attention of new people in ethical manner. Furthermore,
among range of HRM software programs, Open Elevator is the best one for company that they
can use in competitive environment for hiring talented persons.

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REFERENCES
Book and Journals
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human resource management. Edward Elgar Publishing.
David, F. and David, F.R., 2016. Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
DeCenzo, D.A., Robbins, S.P. and Verhulst, S.L., 2016. Fundamentals of human resource
management. John Wiley & Sons.
Garretsen, H and et.al., 2019. The relevance of personality traits for urban economic growth:
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