Managing Human Capital and Leadership Sample Assignment

Managing Human
Capital and Leadership

ABSTRACT
Human resource management refer to the process of hiring as well as developing the
staff in order to acquire the necessary skills and grow business successfully. The first task of the
report include various HRM model which help to maintain the smooth functioning of business by
resolving the internal disputes and encouraging the team member to achieve the shared objective
through cooperation. The second task consist of HR function that helps various activity
performed by HR professional to maintain the smooth functioning of business. Moreover, third
task include the software which are used by HR to perform their task effectively and manage the
internal data successfully. Further, fourth task carries the trait of effective leader that help in the
success of business.

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Discussion of relevant HRM models and analysis of approach of the company to the
management of its human resources............................................................................................1
TASK 2............................................................................................................................................3
Critical discussion of HR functions.............................................................................................3
TASK 3............................................................................................................................................7
Critical evaluation of HRM software programs that are available off the shelf and their
suitability for organisation...........................................................................................................7
TASK 4............................................................................................................................................9
Discussion of characteristics of effective leaders taking in to considerations all the identified
issues............................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Managing human capital and leadership can be defined as a human resource function
which helps to manage an organisation. It is vital for all the business entities to manage
employees at workplace so that organisational goals could be attained (Shields and et.al., 2015).
For this purpose, managers formulate plans and strategies for betterment of company. The
enterprise which is selected for this report is Whirlpool. It is mainly established in United
Kingdom. It was founded by Robert Elton in year 1980. Currently it is selling its products and
executing business operation all around the world. This assignment covers various topics such as
HRM models, analysis of approach of company, critical discussion of HR functions of
organisation and evaluation of different HRM software programs that are available off shelf and
their suitability for entity. Characteristics of effective leaders taking in to consideration all the
identified issues are also covered under this report.
TASK 1
Discussion of relevant HRM models and analysis of approach of the company to the
management of its human resources
A human resource management consultant is being invited by Whirlpool in order to
provide them advise on the possibility of taking their HR practices to next level in order to
compete more effectively in the marketplace (Leitch McMullan and Harrison, 2013). For this
purpose, board of directors has the consultant to focus on various aspects which are as follows:
There are various types of human resource management models which are used by
business entities such as Whirlpool UK. All of them are mentioned as follows:
Hard and soft HRM model: This is a model of human resource management in which
hard one is focused with quantitative and calculative strategic aspects of the process of human
capital management (Masa'deh, Maqableh and Karajeh, 2014). Whereas, Soft one is related to
qualitative elements of the procedure. In order to enhance productivity of organisation, HR in
Whirlpool can use this model which can result in increased work quality of staff members who
are working within the company.
Contextual model of HRM: It is based upon importance of environmental factors such
as social, political, and institutional. It is one of the broader approach which could be imposed by
HR manager of Whirlpool in order to make sure that external and internal elements does not
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harm the process of human resource management and the strategies which are formulated to
manage it.
The matching model of HRM: According to this model of human resource
management, HR system and structure of organisation is required to be managed in such a way
which is congruent with strategy of the company. It can be used by HR manager of Whirlpool to
structure and all the system of the organisation so that strategic objectives such as attaining
competitive advantage could be attained (Gupta and Singh, 2014).
European model of HRM: This model was developed by Brewster which covers various
aspects such as environment which should be focused to establish legal framework, objectives
which should be formed to attain growth, cost and benefits which should be focused. It is
emphasises on relation of employees and line manager. With the help of it, top level executives
provide specific guidelines to HR managers regarding their job responsibilities. It could be used
by managers in Whirlpool in order to make sure that all the business procedures are going to be
executed in appropriate manner.
The 5 P's model of HRM: It is a combination of five different elements of HRM which
should be focused by managers in order to make sure that human capital is managers properly.
This model is used by Whirlpool as their approach to manage their human resources.
Philosophy: It is expressed in statements by defining business values and culture. With the help
of it human resource managers get directed throughout the way in which employees should be
treated and valued by them.
Policies: All the policies are expressed as shared values and guidelines. These are formulated to
set guidelines for staff members so that they can perform their jobs according to them.
Programs: These are explicated as strategy of human resource management. Main purpose of
conducting different programs is to facilitate the managers to make changes in order to deal
with business issues such as using old approaches which has resulted in decreased productivity.
Practices: Different types of practices such as training and development are used by
organisation in order to motivate employees. With the help of it business operations are
executed in appropriate manner.
Processes: All the formal procedures and methods which are used to form different strategic
plans are known as processes. With the help of this element effective policies and strategies
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could be formed.
The above described models could be used by HR manager of Whirlpool in order to
execute business operations properly and appropriately. Currently the company is using 5 P's
model which helps to execute all the business processes appropriately. With the help of it all the
HRM functions such as managing human capital can be conducted appropriately (Models of
HRM, 2019).
TASK 2
Critical discussion of HR functions
HR Functions: Human resource department is the central part of the organisation that
take care of various internal functioning of the business from recruitment till the appraisal and
development of employee it performs varieties of all activity. Thus, the human resource
department continuous make effort to meet the need of employee and build employer employee
relationship by managing the conflict of interest significantly. Therefore, professional of HR
perform various functions which are defined below:
Human resource planning: Human resource planning is an ongoing process that helps
the organisation to manage its internal resources successfully. In reference to Whirlpool is a
large company which perform its business in various emerging economies so the HR of company
make the planning in relation to employee and resources that helps to avoid the chances of
shortage or surplus production of inventory (Green and Roberts, 2012). This will help the
business to improve HR planning as is the main pillar of the organisation as it helps to identify
the staff require for the business, forecast the demand as well as supply to achieve the short as
well as long term goal of the organisation. Therefore, Human resource planning is the best fit
between the employee and job so that work is conducted in the most desirable manner.
Recruitment and selection: It is again one of the essential functions of HR as in
recruitment the large pool of aspirant are attracted by the company to gain their interest in
company. In simply stimulate the employee to apply for the job due to which it is a positive
process which Whirlpool company conduct through either internal source or external source
(Haynes, Hitt and Campbell, 2015). Within internal source the job vacancy is filled by the
existing employee of company mainly through promotion and transfer due to which it is cost
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effective. On contrary, external source invite the candidate from external part of business in
order to escape the situation of shortage of employees.
Although the purpose of recruitment and selection is same but selection is more practical
process as it involves evaluation round such as short-listing of an employee by resume, face to
face interview, group discussion. These are conducted by Whirlpool company to get the most
suitable candidate for the right job. Hence, these round differ from one designation to another but
its purpose to weed out the unsuitable candidate and hiring the most desirable one. Therefore,
HR can improve this function by clearly identifying the job requirement and hiring suitable
candidate only based on the vacancy.
Training and development: Training is a process that helps the employee to enhance
their existing skill as well as capability in order to perform the task more effectively as well as
efficiently. In relation to Whirlpool company run various training session or seminar so that they
can groom the knowledge of employee and achieve the competencies over their competitor
(Bounfour and Edvinsson, 2012). Thus, providing training ion regular basis can helps the buiness
to improve and sustain in dynamic environment as the manpower are not reluctant to changes.
Development is a long process that is achieved by enhancing the knowledge of employee which
helps in the growth of an employee. Thus, development of an employee is beneficial for selected
company as the manpower gets expertise over their subject. Therefore, such functions of HR
help to enhance the effectiveness of an organisation by increasing the profitability as well as
productivity.
Performance appraisal: The HR specialist offer the compensation to the employee based
on the performance of an employee. The process of offering compensation or benefit is designed
in a fair or transparent manner by Whirlpool company so that each one of them remain motivated
to achieve the objective of an organisation successfully. Thus, performance appraisal is a
positive method that helps to encourage the behaviour of employee through monetary or non
monetary incentives. This is a part of positive reinforcement technique that include recognition,
promotion, appraisal, salary hike, incentive and so on. Therefore, it helps the business to improve
its existing position by associating the incentive to the target achieve by employee that helps to
achieve the personal goal as well as goal of an organisation.
Employer employee relation: It is essential to liaison the relationship between employer
and employee in order to process the business successfully (Turner, Swart and Maylor, 2013).
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Maintaining healthy relation can helps the business to achieve its pre requisite objective
successfully. In context to Whirlpool company the employer makes sure they understand the
need of staff and encourage them to achieve the objective successfully. Additionally, mutual
understanding, trust as well as transparency helps the selected company to improve and enhance
its footfall for its home appliances by accomplishing the mission of an organisation. Moreover, it
is the responsibility of employee as well, to work sincerely for the organisation by putting their
best possible efforts. Therefore, sharing good bond between employer and employee helps the
organisation to decreases the absenteeism rate as well as turnover rate.
Employee legislation: Employee legislation is the law made by the government to
maintain the interest of employee so that they do not get exploited. Thus, it is compulsory for the
Whirlpool company to adhere the law in order to operate for the long run. It includes health and
safety law where the management needs to provide the favourable environment or surrounding to
the employee to perform its business. In case of any injury because of handle of machinery or
indulging of employee in operation activity it become the duty of manager to compensate for the
loss. Further, certain laws are made to control the discrimination among the employee based on
their gender, culture and religion (Schiuma, Carlucci and Lerro, 2012). Thus, it is part of HR
function which is carried out the HRD successfully in order to achieve long term sustainable
growth and development.
Rewards: For an organisation, it is important to provide reward and it is an important HR
function. It includes salary but also growth & career opportunities, status, recognition, better
corporation culture & satisfying work life balance. For Whirlpool, it is important to provide
rewards to the employees so that they feel motivated and so their willingness in order to achieve
the goals of corporation. There are various types of reward which involves base salary,
performance based pay, bonuses, social environment, job security, job opportunity, incentives
etc. To give reward it is important to analyse the performance and on the basis of incentive &
bonus is provided to the workers and it encourage them to perform better so that goals of
organisation can be accomplish. In this regard Whirlpool make strategy that to motivate the
works they will provide reward so that they work effectively and efficiently. To make
improvement iRewards: n reward policy organisation should monitor the performance of each
and every employees and on the basis of performance reward should be provided.
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Employee participation & communication: Employees need to be informed & heard on
distinct topics which are relevant to them. For the effective communication it is required to
communicate the relevant information to the workers so that they perform better in order to
achieve the goals of Whirlpool. As the employee participation is necessary for the purpose of
better decisions and it motivates the workers that they can provide valuable suggestion for the
purpose of betterment of company (Popescu, Comanescu, and Sabie, 2016) To make effective
communication it is important to establish proper chain of command so that communication can
be effective. In this regard management of corporation can take the important decisions and
communicate it to all departments so that appropriate information can be deliver to all employees
who work in the organisation.
Health and safety: As HR function is also emphasis towards the health and safety of
workers. For that purpose, it is important for Whirlpool to take care about the health & safety
regulations which are made for the protection of workers. In this regard, it is necessary for the
management to provide better and safe working environment so that work can be done
effectively. For the safety purpose it is required to provide better tools and equipment in order to
protect the health so that they does not get injured. In this regard it is necessary for the
organisation to make effective strategy in context to the health and safety of staff so that they
feel comfortable to work in the company. For the improvement of health and safety measures,
organisation should emphasis to follow the regulations of Health and safety Act so that workers
feel safe while doing work.
Industrial relations: As HR function is also emphasis to make better relations with the
employees for that Whirlpool is emphasis in maintaining & cultivating relationships with labour
unions & other collectives and their members. It is helpful to resolve the conflicts which arises in
the work place and it is also beneficial in more difficult economic times when lay-offs or other
actions are needed (Agrawal, Khatri and Srinivasan, 2012). In this regard management of
company has emphasis to build friendly relations with the employees so listen the problems of
them so that they feel comfortable while doing work and put maximum efforts in order to
achieve the goals of corporations. As it helps the organisation to maximize the productivity as
well as profitability. To improve the industrial relation organisation should interact with the
employees and try to listen their problems so that they feel comfortable and perform better in
order to achieve the objectives.
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Function evaluation: As functional evaluation is more technical role of HR which
involves different functions in the terms of qualification, quality & availability of staff, job
location, working times, economic condition etc. As the main idea behind function evaluation is
that similar jobs are required to be rewarded similarly. As there are distinct ways of internally
ranking functions which involves:
Ranking method: It is a method which subject matter experts rank functions in terms of
how much they contribute to the company as a whole.
Classification method: In this method jobs are classified in distinct categories by using
this particular method. For that purpose, jobs are categories & then ranked within these
categories to come up with a ranking. As classification has done on the basis of experience,
education, degree or any specific skill.
Personal method: Under this method, job itself is not determine but the individual doing
the job is. In this method workers are rewarded on the basis of their personal skills and abilities.
Recommendation: In the growth of an organisation HR functions plays a vital role but it
can be improved when organisation is emphasis to provide training to the employees for the
development of skills and abilities so that workers can perform better in order to achieve the
goals of corporation. In recruitment and selection Whirlpool should emphasis to hire those
candidates which are more talented and committed towards their work. The plans and strategies
are required to be made in order to satisfy the desires of employees so that they feel comfortable
to work and achieve the objectives of corporation. To encourage the workers, it is required to
motivate them so that they feel comfortable to perform in the organisation.
TASK 3
Critical evaluation of HRM software programs that are available off the shelf and their suitability
for organisation
In all the business entities different types of HRM software are used which are available
off shelf. With the help of all of them all the functions of HR could be performed accurately. All
the types of software have been described below:
Bamboo HR: It is a cloud based human resource software which is mainly used by small
and medium sized organisations. A human resource information system is offered by the
software to the companies in order to track the applicants. It can also be used by Whirlpool and
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managers can use applicant tracking system so that detailed information regarding them can be
gathered.
Clear company: It is a software system which is used by large and small companies
whether these are private or public (Morley, Heraty, and Michailova, 2016). The alignment
platform of the software connects new employee who are onboard and performance
management. It could be used by Whirlpool in order to analyse characteristics of applicants with
the help of tracking system of it.
Zoho People: It is a human resource software which is suitable for all businesses whether
it is small or large. It has various features such as time tracker, attendance management,
employee self service, customisation etc. In order to conduct all the human resource functions in
appropriate manner it can also be used by HR manager of Whirlpool.
Freshteam: It is a software which is offered by Freshworks which is used for the purpose
of applicant tracking. With the help of it recruiters can screen, source, interview and recruit
applicants according to their description. It key features includes candidate engagement tools and
dashboard. It could be used by Whirlpool in order to conduct all the activities which are related
to recruitment and selection.
CEIPAL workforce: It is software which is mainly designed to cater requirements of
recruitment and staffing business entities. It could be used by Whirlpool to fulfil all its
requirements which are related to selecting and staffing processes.
Cake HR: It is cloud based HRM solution in the form of a software which integrated
various features. These are workforce management, attendance tracking system, performance
appraisal, 360 feedback etc. If it is used by Whirlpool, then it can help HR to perform all the
human resource activities appropriately.
Namely: It is also a cloud based software which is used by companies to seek single
comprehensive system in order to manage the human resource of organisation. It is mainly used
by medium size business entities to manage compliance and streamline various items such as
payroll, benefits and talent management. It could be used by Whirlpool in order to manage all the
functions of HR manager (Kellis and Ran, 2015).
Paycor: It is a human resource management software which offers functionality to
execute all the process from advertisement to selection and recruitment in proper manner. With
the help of it all the recruitment and selection related activities can be conducted on time. It
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could be used by Whirlpool's managers in order to improve the HRM practices by reducing the
time which is taken to recruit and select new employees.
From all the above described software the best suitable software for Whirlpool is clear
company which is used by all the public and private sector organisations. It can help the human
resource manager to analyse characteristics of new applicants with the help of applicant tracking
system. It can guide them to hire skilled and experienced candidates on the basis of their
knowledge and skills.
TASK 4
Discussion of characteristics of effective leaders taking in to considerations all the identified
issues
For all the business entities it is very important to focus on characteristics of leaders in
order to make sure that all the activities of organisation will be performed appropriately or not
(Mobley and Wangand, 2012). To evaluate the characteristics various leadership models are
used by human resource managers in Whirlpool. Some of them are described below:
System leadership model: It is based upon leadership principles in which leaders try to
bring out skills and qualities of all the subordinates by providing them appropriate opportunities.
With the help of it all the characteristics of staff members are brought out by the leaders. In
Whirlpool this model could be implemented by leaders so they can motivate workers and inspire
them to work productively. With the help of this model, various characteristics of leaders can be
analysed which includes motivating and inspiring behaviour in which they try to motivate
employees so that their work quality can be enhanced. Another characteristics which can be
evaluated with the help of this model is non discriminative in which leaders try to provide
appropriate opportunities to all the workers according to their capability.
Contingency leadership model: It is another type of leadership model which is used by
business entities to analyse business situations and then find solutions for all of them. Leaders
change their behaviour according to the nature of staff members. Whenever a company faces a
negative situation then leaders try to find different solutions for all of them so that it can be
resolved appropriately. It could be used by leaders of Whirlpool in order to respond all the issues
effectively. With the help of it various skills of them can be evaluated. These are decision
making, cooperative, problem solving, critical thinking etc. With the help of these
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characteristics they try to form effective decisions which could be implemented in critical
situations such as decreased productivity of employees (Schweizer and Patzelt, 2012).
Both the above described models could be used to evaluate characteristics of effective
leaders. These theories of leadership guide them to find best suitable solutions for all the
business problems such as decreased employee engagement, productivity and employee
turnover. All these issues could be deal appropriately with the help of system and contingency
models of leadership as both of them can bring out different characteristics of leaders such as
decision making, critical thinking, problem solving, coordination, motivating and inspiring
behaviour etc. In order to become an effective leader, it is vital for individuals to acquire all
these skills so that subordinates can follow their instructions and perform all the tasks
effectively. If they do not have such qualities, then it will become difficult for them to fulfil
requirements of their job role.
CONCLUSION
From the above report it has been determined that human resource management is an
essential part of management that manages the employee, working culture as well as the
environment. There are various HRM model that helps the business to operate significantly along
with that the manager of human resource perform various function like recruitment, staff,
training, provide the compensation and benefit to the employee that helps to liaison the
relationship between employer and employee. To perform the task of business effectively
various software such as centralised database helps to maintain the record of all employee.
Therefore, the trait of successful leader helps to overcome the issues and carry forward the
business effectively.
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REFERENCES
Books and Journals:
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strategies. Cambridge University Press.
Leitch, C. M., McMullan, C. and Harrison, R. T., 2013. The development of entrepreneurial
leadership: The role of human, social and institutional capital. British Journal of
Management. 24(3). pp.347-366.
Masa'deh, R. E., Maqableh, M. M. and Karajeh, H., 2014. A theoretical perspective on the
relationship between leadership development, knowledge management capability, and
firm performance. Asian Social Science. 10(6). p.128.
Gupta, V. and Singh, S., 2014. Psychological capital as a mediator of the relationship between
leadership and creative performance behaviors: Empirical evidence from the Indian
R&D sector. The International Journal of Human Resource Management. 25(10).
pp.1373-1394.
Kellis, D. S. and Ran, B., 2015. Effective leadership in managing NPM-based change in the
public sector. Journal of Organizational Change Management. 28(4). pp.614-626.
Mobley, W. H., Wang, Y. and Li, M. eds., 2012. Advances in global leadership. Emerald Group
Publishing Limited.
Green, D. D. and Roberts, G. E., 2012. Impact of postmodernism on public sector leadership
practices: Federal government human capital development implications. Public
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Haynes, K. T., Hitt, M.A. and Campbell, J. T., 2015. The dark side of leadership: Towards a
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Management Studies, 52(4), pp.479-505.
Bounfour, A. and Edvinsson, L., 2012. Intellectual capital for communities. Routledge.
Turner, N., Swart, J. and Maylor, H., 2013. Mechanisms for managing ambidexterity: A review
and research agenda. International Journal of Management Reviews. 15(3). pp.317-
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Schiuma, G., Carlucci, D. and Lerro, A., 2012. Managing knowledge processes for value
creation. Vine. 42(1). pp.4-14.
Popescu, G. H., Comanescu, M. and Sabie, O. M., 2016. The role of human capital in the
knowledge-networked economy. Psychosociological Issues in Human Resource
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Agrawal, N. M., Khatri, N. and Srinivasan, R., 2012. Managing growth: Human resource
management challenges facing the Indian software industry. Journal of World
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Morley, M. J., Heraty, N. and Michailova, S., 2016. Managing human resources in Central and
Eastern Europe. Routledge.
Schweizer, L. and Patzelt, H., 2012. Employee commitment in the post-acquisition integration
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Online
Models of HRM. 2019. [Online]. Available through: <https://hrmpractice.com/models-of-hrm/>
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