Human Resource Management at NANDOS: Analysis and Recommendations

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at NANDOS, a South African restaurant chain. It examines various aspects of HRM, including recruitment and selection processes, human resource development, employee motivation strategies, and leadership effectiveness. The report analyzes NANDOS's approach in light of established HRM theories and models, such as the Nadler and Tushman model, Ulrich model, and Kearns model. It delves into the company's recruitment strategies, both internal and external, and offers recommendations for improvement. Furthermore, the report explores employee motivation, proposing a hybrid theory combining classical motivational theories. It also discusses the importance of effective leadership within the HR department. The report concludes with an overview of NANDOS's HRM practices, identifying areas for enhancement and offering actionable recommendations to optimize employee performance and organizational success. This report is a valuable resource for students studying HRM and provides a real-world case study of effective HR practices.

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Abstract
Human Resource Management (HRM) is a method to determine strategies for the purpose of
employee management and for evaluating and enhancing employee performance. This paper
aims at analyzing the various aspects of an effective HRM body and offers a case study on
the various HR strategies undertaken by NANDOS, a restaurant chain of South-African
origin. The paper analyses the HR strategies of NANDOS in the light of various theories and
models on human resource management and offers recommendations to improve them as
well. To state in conclusion, the paper offers a careful study of the various models on human
resource management and examines the nature of the HRM body at NANDOS and explains
any scope of improvements within it.

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Table of Contents
Abstract......................................................................................................................................1
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Task 1: Analysis of the Company’s Approach to its Human Resource Management...........4
Task 2: Recruitment and Selection at NANDOS...................................................................7
Recommendations for Improvements................................................................................9
Task 3: The Company’s Approach to Human Resource Development...............................10
Recommendations for Improvement................................................................................12
Task 4: Employee Motivation and its Scope at NANDOS..................................................13
Recommended Hybrid Theory.........................................................................................16
Task 5: Effective Leadership and its Characteristics...........................................................16
Recommendations for Improving the Effective Leadership of the HR Professionals.....19
Conclusion................................................................................................................................19
References................................................................................................................................21

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Introduction
Human Resource Management (HRM) is commonly known as a tool that is employed
by the Human Resource (HR) department of an enterprise to enhance and increase employee
performance under the strategic objectives of the employer. HR is generally concerned with
managing people within an organization, with the primary focus on the organization’s
systems and policies (Armstrong and Taylor 2014). The HR department looks after the
provisions such as employee-benefits, employee recruitment, performance appraisal, training
and development, and rewarding (management of payments and employee benefit systems).
A lot of factors work for the employment of the HRM activities directed at the organization’s
growth and employee satisfaction. NANDOS is a South-African organization recognized for
its Mozambican/Portuguese restaurant concatenation and gives much value to the HRM
activities. This paper offers an analysis of the various actions related to the HRM taken by
NANDOS and examines them in light of the various existing models. In the first section is
analyzed the company’s approach to its HRM. The second section of the paper provides a
discussion on the selection and recruitment strategies of the HR department while making
certain recommendations to improve the same. The third section offers a discussion on the
company’s approach to the human resource development (HRD) and makes suggestions for
further improvements. The fourth section of the paper examines and analyzes different
classical theories of employee motivation and combining these theories creates a hybrid
theory that might have a practical value for the organization. The fifth section of the paper
draws on existing relevant models to discuss the importance and features of effective
leadership with respect to the organization.

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Discussion
Task 1: Analysis of the Company’s Approach to its Human Resource Management
There are various theories and models explaining the role that the HRM of an
organization could adopt and implement. Among such models, the Nadler and Tushman
model, the Ulrich model, the Perspective model, and the Kearns model are of utmost
importance (Stredwick 2013).
The Nadler and Tushman model provides relevant diagnosis of organizational
behavior. It is stated that an organization depends on the workers either individually or
collectively in order for getting their work done. Management of organizational behavior is
therefore, crucial to management of tasks which involves an understanding of the individual,
group as well as organizational behavior patterns as a whole (Marchington et al. 2016). The
Nadler and Tushman model points out the important inputs, the crucial outputs and the
transformation process that characterize the functioning of the organization. The model is
based on how well components of an organization fit together.
Figure 1: Nadler and Tushman Model
Source: [Created by Author]

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The various inputs of the model represent various outcomes and opportunities of the
organization. Such inputs include environment that represents the external factors of the
organization, resources or the assets that the organization can access and use to its advantage,
the history of the organization that determines how it’s function is influenced by its past, and
strategy that determines the process by which the organization matches the resources to the
environment for satisfying demand. The outputs demonstrate what is produced by the
organization, how the organization performs as well as how effectively it works. This is done
by evaluation of the goal attainment of the organization and determining how well it is able to
meet its objectives, utilization of resources and its adaptability (Larsen, Manning and
Pedersen 2013). An organization is therefore the arrangement of individuals in a job structure
that is systematic and is guided by systems, procedures and policies for accomplishing some
specific purpose.
According to the Kearns model, HR strategy usually is more than just some HR
procedures and policies. It helps businesses to take into consideration the total human
implications of the business strategy and to make sure that the function of the human
resources and the strategies of the business are homologous (Aswathappa 2013).
The Ulrich model states that with the rising globalization, HR executives are
constantly discovering themselves in territories that are unfamiliar and in order to cope with
these changes they must show new competencies (Cascio 2014). According to Ulrich, there
are four competencies:
a. HR professionals should understand how their organization works especially the
business strategies and other important aspects of the organization.
b. HR professionals must work at enhancing and improving their skills continuously.

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c. With the rapidly changing norms and trends in the business world, HR professionals
must adapt and influence others to work forward.
d. HR professionals must demonstrate integrity, competency, confidentiality,
accountability in their actions to earn the trust and respect of the people they lead.
According to Whittington’s perspective on business strategy, strategy enables an
organization to attain its organizational objectives and goals and to accomplish an advantage
with the unique products and services the organization offers. Whittington demonstrates four
ways of strategy formation aligned with strategy outcomes and processes. Organizations that
adopt a classical approach usually practice a rational, clear and planned strategy formation
process aiming at maximizing profits (Bamberger, Biron and Meshoulam 2014).
Organizations adopting the evolutionary approach are placed in unpredictable environments.
Such an approach has a different stance on profit maximization where the managers are
unsure about the required level of optimum output. Finally, organizations adopting the
systematic approach emphasizes on social and demographic factors such as the organization’s
national culture.
Studies claim that NANDOS does not have any formal strategy for HR yet, though the
key strategic elements are present. This lack in the HR strategy is a result of the
contemporary history of the company’s globalization. With respect to the function of the HR
at NANDOS, the company applies the Kearns model approach where people are generally
considered to be a competitive advantage. NANDOS understands that the dedicated people
make the organization effective and increases their chances of profit. The HRM function at
NANDOS has progressed from a traditional role to personnel management (Jamali, Dirani
and Harwood 2015). The HRM at NANDOS faces pressure to be completely integrated with
other organizational functions such as finance, production and marketing as well as to legally
enable itself to ensure direct involvement of people to the attainment of strategic objectives of

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the business. It is stated that the HRM at NANDOS have created and implemented HR
strategy of their own suitable for their working environment. This is aligned with Ulrich’s
statement that one of the major roles that HRM needs to function in is that of a strategic
partner. The HR system at NANDOS places its focus on the contribution of the employees,
firm infrastructure as well as fulfill the roles involved in transformation and change and
business organizational strategy. Thus, it can be stated that with respect to the role of the HR
at NANDOS, the major focus is on the employee contribution. This means that the HR is
concerned about the personal needs of the employees and works at enhancing employee
commitment. The HR at NANDOS is also responsible for formulating new programs and
policies to meet the personal requirements and benefits of the employees.
Task 2: Recruitment and Selection at NANDOS
Recruitment and staffing is among the value added process of the HR. Recruitment
deals with the organization’s ability to find new employees in order for the organization to
keep operating and for enhancing the human capital quality in the organization. The main
focus of the process of recruitment is to find the best sources of recruitment and to employ
the most talented and suitable people for the job in order to keep the organization running
within the competitive job market (O'Meara and Petzall 2013).

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Defining Requirements
Selecting Candidates
Attracting CandidatesPlanning Campaigns
Hiring
Figure 2: Recruitment and Selection Process
Source: [Created by Author]
The process of recruitment requires a complete description of the process. The
recruiters must follow required process and help the candidates to go in the right direction.
An organization can recruit both internally and externally (Zaharie and Osoian 2013). In
order to recruit internally the organization seeks to fill in vacancies from within the
company’s existing workforce. External recruitment is done when the organization fills in
vacancies from suitable applicants outside of the existing workforce.
At NANDOS, employees are recruited both internally and externally through a quick
pool of suitable applicants. The selection process is legal and technically sound. NANDOS is
opening about 30 restaurants each year all over the United Kingdom and naturally require
more employees with each passing year (Nandos.com 2018). In order to maintain a balance
between internal environment and external environment, the HR at NANDOS becomes
accountable for finding employees within the existing workforce that are capable of being the
manager or the managing director of the company (Ekwoaba, Ikeije and Ufoma 2015). The

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HR professionals also keep in mind that it is in fact the employees’ passion that results in the
company’s growth. Hence, the employee details are filed and recorded for further reference.
The HR team at NANDOS encourage the candidates to contact the team of local
management. The vacancies are usually seen to be obtainable at the level of the central
support. NANDOS also has the provision for an online portal for recruitment where
applicants are able to submit their curriculum vitae. NANDOS usually tends to give priority
to the local people to achieve local popularity in the countries in which they have their
branches (Bamberger, Biron and Meshoulam 2014). This is one of the major factors that has
led to the company’s success in the attainment of its goals.
NANDOS has also become partners with organizations such as the Global
Recruitment Resource, that enable searching for jobs online. This has enabled the
organization to fill in vacancies that are not possible to be immediately filled in internally.
People hired by the HR professionals of NANDOS fill in both part time as well as permanent
job positions (Mupani 2016).
In the legal context, NANDOS demonstrates its dedication for the policy of equal
opportunities that ensures that the company will give equal importance to everybody. The
company believes in diversity in employment as well recruiting people of different origin as
well as beliefs. It is also made sure by the HR professionals that vacancy information is
publicized and promoted appropriately so as to reach different communities. The recruitment
process and the selection process at NANDOS is generally objective oriented and based on
fair criteria (Bamberger, Biron and Meshoulam 2014).
Recommendations for Improvements
In order for effective recruitment, the HR department at NANDOS must follow
certain guidelines. However, even though NANDOS has maintained quite a standard for

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effective recruitment, there are certain tools that the HR department can adopt in order to
improve their recruitment as well as selection process. It is advised that NANDOS invest in
and develop quality relationships with the placement offices at universities to attract a larger
and collective pool of applicants. It is also advised that the HR department of the organization
enable and encourage the current staff to engage actively in the professional associations of
the industry and in conferences. Furthermore, it is suggested that the HR department of the
company does appropriate promotion for the organization with provisions made for employee
retention such as motivation, recognition, reward, flexibility and balance in work-life. In
addition, it is recommended that the HR department engage the employees in their process of
hiring. This can be done by allowing the employees to recommend suitable candidates to the
firm. The employees can also be asked to review and rate the qualifications and resumes of
other potential candidates. It is also advised that the HR department continuously revise their
payment structures along with allowing better and additional bonus to motivate the
employees and retain employee commitment. Finally, it is recommended that the HR
department conduct ample background and references check before hiring a candidate in
order to ensure better security for the firm as well as the employees.
Task 3: The Company’s Approach to Human Resource Development
Human Resource Development (HRD) is the tool that enables employees to develop
their organizational and personal skills and abilities (Gold et al. 2013). HRD is a major
opportunity that every employee seeks for it acts as a motivating factor and ensures employee
retention. HRD usually include opportunities like training of employees, development of
employee career, development and management of employee performance and other aspects
required for organizational development (Alfes et al. 2013).
At NANDOS, the employers understand that it is important for the employees to be
well-trained in order for focusing on their current job as well as for bringing out the best in

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them. The HRM model of NANDOS is resource based and therefore provides ample learning
possibilities that is work related and is helpful to the employees in developing learning
strategies. NANDOS operate a development platform to ensure progression of the career
paths by enabling the HR to allow the trainees and employees of the company to recognize
their potential. The organization invests a large amount of time and money in the training of
the employees which are usually executed in-house. It is customary that in the first three
months the trainees will be engaged in learning the required skills for the job as well as
essential skill management (Nandos.com 2018). The trainees are supported and coached by
the experienced and the best of the NANDOS and by other employees working for the
company’s Learning and Development Department. After the completion of the of the
training of three months, the employees are invited for a workshop on self-development
where they demonstrate plans for the future development of their skills. The following
training is done and depends on the position for which the employee is hired.
Human Resource Management (HRM) mostly focuses on organizing the people as
well as the whole enterprise (Elnaga and Imran 2013). The HR plans usually involve
marketing strategies and the business future (Shen and Benson 2016). The first step to
planning is ensuring that the right count of people is placed appropriately in the right position
(Mitchell, Obeidat and Bray 2013). NANDOS makes sure that the right person is placed in
the proper job at the correct time. In doing so, it incorporates three practices including
strategies based on anticipating personnel requirements, skills analyzing personnel supply
and a system to match the requirements.
Performance management of the employees is a key requirement to help them identify
and acknowledge their potential. Performance management is an incessant process of
communication between the employee and the employer. Such a process includes
clarification of opportunities, setting objectives, identification of goals, provision of feedback