Report: Managing Human Capital and Leadership at NANDO'S (Malta)

This report analyzes the human capital management and leadership strategies employed by NANDO'S, an international restaurant chain. The report begins with an introduction to human capital and its significance, followed by an overview of NANDO'S operations and market position. It then explores the various human resource models and approaches utilized by the company, including controlled-based, resource-based, and integrated models. The report critically examines NANDO'S recruitment and selection processes, highlighting both online and social recruiting methods. Additionally, it delves into the company's Human Resource Development (HRD) approaches, such as the strategic human resource framework, integrative framework, and human capital appraisal approach, along with potential areas for improvement. The report also covers employee motivation, training and development, and effective leadership characteristics, providing a comprehensive analysis of NANDO'S human capital and leadership practices. The report also mentions the use of online recruitment systems and social recruiting through platforms such as LinkedIn and Twitter. The report concludes with recommendations for enhancing employee motivation and providing training and development opportunities to improve workforce skills and knowledge.

Managing Human Capital
and Leadership

INTRODUCTION
Manpower is an essential part of firm and are considered as backbone because no
company can perform its operations successfully without them. Employees are the individuals
who highly contributes in growth and success of a company. Their hard work leads an
organisation towards attainment of goals and objectives (Wright and McMahan, 2011). So, it is
required by firm to keep motivating their workforce to learn new knowledge and skills which
enables them to enhance productivity of company. Human capital is defined as the collective
value of intellectual capital, i.e., knowledge, skills and competencies of firm which influence
their earning potential and productive capacity. One of the main role played by human resource
department is to manage their human capital which are the most vital asset of firm. The present
assignment is based on NANDO'S which is an international restaurant of Malta, South Africa.
The report includes analysis of approaches used by company to manage its human resource. It
also includes recruitment and selection process along with HRD approaches. Apart from this,
classical theories of motivation and characteristics of effective leaders are defined in this project.
TASK 1
Relevant models and approaches use by firm to manage its human resource
NANDO'S was started by Dick Enthoven in year 1987 at Johannesburg, South Africa. It
is one of a private casual dining industry which operates all over the world. It offers its goods
and services in around 30 cities with approximately 1000 outlets. They are known for their
Portuguese style dishes made with chicken with different Peri Peri marinades. Several eating
alternative are provided by them such as Brunch, late night dinner, lunch etc. Along with that,
they also administer different services like free Wi-Fi, high chairs available, seating, serves
alcohol, Waitstaff, take out etc. High quality of goods and services are offered by them which is
the main reason behind their strong position in market (Stevens, 2010). Effective promotional
tool is used by company through which they reach to large group of people. Various practices
related to human resource are implemented by firm but, due to sudden increment in competition,
they need to revitalize their policies in order to stay competitive in market and maintain their
shares as well. In NANDO'S, various approaches and models are executed by managers to get
their efficiency back.

Models and approaches:
One of the prime objective of NANDO'S is to administer high quality goods and services
to customers in order to satisfy them and encourage them to visit again. It is the responsibility of
human resource manager to frame and execute best strategies as well as select appropriate model
for firm so that operations can be performed in an effective and efficient manner. Administrator
should ensure that policies and strategies are design in such manner that these provides benefits
to company in future. Proper implementation of these strategies ensures improvement in
performance of workforce as well as firm (Ployhart and Moliterno, 2011).
Basically, 3 types of human resource model are there that are utilized by company at the
time of performing their business operations. These are defined below:
CONTROLLED BASED MODEL:
It is one of the effective approach which is to be utilized by company in order to attain
high success and growth in competitive market. This model states that it is the responsibility of
human resource manager of company to take care of those processes that are going on within
firm so that high profitability ratios can be attain. In this approach, several aspects are covered
such as process based controls, individual, bureaucratic and technical outcomes. It is an effective
model that should be utilized by management of company as it allows them to measure all the
problems or issues that are prevailing within firm. According to this, human resource strategy
and management structure are considered as the most effective methods that assists in bringing
good control inside the company. Therefore, it is required by management of NANDO'S to
ensure that they properly manage their employee's behaviour so that they enable to perform up to
the expectation of firm. So, manager have the responsibility to provide proper guidance to
workforce so that they enable to contribute in attaining pre determined objectives and goals of
firm in an effective and efficient way.
RESOURCE BASED MODEL:
Basis of this approach is reward exchange effort technique and in this, employees are
considered as an essential asset by management and they take care of their work force in better
way. It is stated in this model that, if firm has good technology and have available all the
required resources along with that then it provides an ability to employees to perform in more
effective manner and attain better outcomes (Nyberg and et. al., 2014). Model also states that if
workforce have good knowledge and competencies then, they have the potential to administer

competitive edge to company over their rivals. Different work competencies are exploited by this
approach. This model classify resources into 2 parts, that is, Intangible (brand name, goodwill)
and Tangible (technological, human, physical and financial). So, it is required by management of
NANDO'S to have all the resources in sufficient manner (Luthans and et. al., 2010).
INTERGRATED MODEL:
This model is a combination of resource and controlled based model so, it mainly aims on
discussing about 2 essential dimensions of human resource management strategy, i.e., “Locus of
control” and “ Acquisition and development”. Former components are said regarding to the
extent to which strategies of human resource are utilized to develop human capital, that is,
development of manpower. Firm should majorly emphasize on development of internal resource
rather then external factors. Whereas latter variables tells about the level to which strategies of
HR are utilized to keep emphasize on monitoring of manpower in order to improve their
performance.
TASK 2
Critical analysis of recruitment & selection regarding strategic human resource initiative
For managing employees in proper way and attaining goals and objectives of company,
human resource manager are required to anticipate manpower needs and recruit skilled and
knowledgable workforce (Makri and Scandura, 2010). So, a vital role is played by HR manager
in growth and success of company. They are the one who have responsibility to recruit
competent individuals. Both, internal as well as external method are used by them for recruiting
employees. In NANDO'S, individuals of human resource department are given the responsibility
to find out talented and skilled candidates for a particular position as per the needs of business
firm. They are responsible to select right number of employees for appropriate position on right
time.
Both methods of recruitment are used by NANDO'S in order to hire skilled candidate
within firm. These approaches are prove to be very effective for company as it gives them better
outcome. The company use online recruitment system in which they are taking assistance of job
portals such as indeed.com, shine.com, Naukri.com etc. In this, an individual who want job is
required to submit their CV or resume through an online activity. This will gather a large talent
pool and firm have more options to choose best candidate among that (Ling and Jaw, 2011).
This will assists in saving cost as well as time of company. The entire process is associated with:

Listing Jobs on firm Websites:
It is the initial step of online recruitment process in which firm needs to register
themselves on online job site such as indeed.com and then list vacant positions on it. This will
allow desired candidates to apply for job position through website. This method will save hiring
cost of company that occurred when they recruit externally (Jiang and et. al., 2012).
Posting jobs online:
In this, manager post vacant position along with all the essential details that are required
for that position. From this, individuals who want to apply for that particular position is aware
about all the requirements and required criteria for job. Various options are held by firm to post
online vacancies such as Linked in.
Using Linked In:
Linked In is selected by NANDO'S to post vacancy online. This job website is highly
utilized by firm as it is an authenticated site. After posting jobs, candidates are able to apply for
vacant position.
Social recruiting:
This is the method which is widely used by firm for recruiting candidates in current
market. In this, social media sites are they way through which company select their desired
candidates. Twitter is used by NANDO'S for searching skilled individual (Gutiérrez, Hilborn and
Defeo, 2011).
Job application process:
This is the step from where recruitment and selection process gets started. In this,
received applications are shortlisted and a test is conducted for shortlisted people through which
skills of individual will be tested. Scrutinization is done here and after that, selected individuals
are called for process of interview.
Interview process:
In this, an interview is conducted for selected individuals in which various questions are
asked by them in order to judge their analytical and critical thinking skills. After this, a job letter
is provided to those individuals who are selected in interview process.
Hiring process:
Under this process, backgrounds of selected candidates are check and medical
examination is done by human resource manager (Guest, 2011).

Recommendations:
Employee motivation: NANDO'S can motivate their workforce so that they are
encourage to work in effective way so that goals and objectives can be accomplish. This will
help them in getting promotion and career growth. Internal method is used by firm while doing
promotion.
Provide training & development: Firm needs to provide appropriate training programme
to their workforce so that they get opportunity to enhance their skills and knowledge. This will
provide benefit to company as they do not require to conduct process of external recruitment
(Gates and Langevin, 2010).
TASK 3
Approach to HRD and the way it could be improved
HRD is concerned with the development of human resource who are working within
firm. It is a vital function for every business firm that assists in providing personal as well as
professional development to workforce. This will administers an opportunity to manpower for
developing their knowledge and skills which allows them to perform their duties in more better
manner. Several activities associated with HRM department includes career development,
training, coaching, mentoring, tuition assistance etc.
For development of manpower, various approaches are utilized by managers. In
NANDO'S, administrator requires to use such approach that best suits for workers of firm. This
will assist in timely completion of work and attainment of objectives effectively and efficiently.
Around 30% of their revenues are spending by NANDO'S on development of their workforce.
Various methods are defined below:
STRATEGIC HUMAN RESOURCE FRAMEWORK APPROACH:
This is the approach that is widely utilized by firms in which several strategies are
applied to enhance business capabilities. This framework is given by Lake and Ulrich which
emphasize on HRD practices. This approach is applied by firm as it provides advantage by
increasing its productivity. For this, it is required by manager to train their manpower so that
they enable to perform in better manner (Models of Human resource strategies, 2018).
INTEGRATIVE FRAMEWORK:
The similar footsteps of strategic human resource management is followed by this
approach and it emphasize on executing good practices of HRD in order to enhance business

performance. 3 paths are included in this framework, i.e., improving employee satisfaction,
building organisational capability, shaping individual needs. It mainly emphasize on developing
the entire human resource system within firm. They mainly emphasize on developing entire
human resource management system within the firm.
HUMAN CAPITAL APPRAISAL APPROACH:
This approach mainly emphasize on workforce as they are the essential assets of business
enterprise. This approach was given by Friendman in year 1998 in which 5 stages are defined
which includes design Clarification phase, Assessment phase, Design phase, Execution phase
and monitoring phase. In order to get several benefits such as performance and reward
management, recruitment, career development, retention, planning and succession training etc.
NANDO'S utilize this approach. For every business organisation, it is necessary to follow all the
above mentioned 5 stages so that firm enable to retain their employees for long term ( Dimov,
2010).
SCOPE OF IMPROVEMENT:
In every case, there is always an improvement scope. Different facilities are having by
NANDO'S that can be enhanced by them in order to administer good services to their customers.
New plans and policies are also reformed by them for the purpose of attaining their goals and
objectives in an effective and efficient manner.
Scope of improvement is large in performance of business such as mentoring, job
rotation, task evaluation, promotion and understudy. All those are the effective approaches or
techniques for bringing success and growth within firm. Promotion is considered as one of the
most effective tool that helps in encouraging workforce more to work and perform their duties in
more better and effective manner.
TASK 4
Classical theories of motivation
Human resource manager play an important role in an organisation where they have play
an important role in order to manage workplace properly. There is a need to assess things better
and in appropriate frame so that each and every individual become motivated towards work and
attribute properly (Dalakoura, 2010). Thus, for making a person motivated towards working and
objectives, there are various motivational approaches could be utilise. Such approaches are
helpful in managing consideration better so that effective and appropriate assessment get done in

determined manner. NANDO is one of a largest restaurant in UK whom have better and best
number of employees. Thus, company required to determine classic theory of motivation
properly so that they could facilitate effective and better working at workplace which facilitate
and support in accomplishing each and every target better and in determine manner (Coff and
Kryscynski, 2011).
Following are the certain number of theories of motivation whom consider and define
under the classic theory of motivation. Classic theories are building blocks for future oriented
theories so that better and determined assessment get done. A basic consideration on such
theories is reflected as follow and in determined frame so that effective assessment could get
done in define course of frame: Maslow Theory of Hierarchy needs: This theory is helpful in order to made an
individual motivated towards working so that better encouragement get done and
perform. It is really essential for managers of a company to evaluate and estimate about
appropriate motivation so that an individual become more encourage towards the things
which they really want to achieve. This facilitate in accomplish all define goals and
targets better by fulfil all needs and wants of individuals. Hence, management could
utilise this framework in order to maintain and manage consideration better. Although,
this attribute majorly have five factors included which signify and enable in deal with a
person behaviour properly and made them satisfied as well (Caza and et. al., 2010). five
diverse kinds of needs are proposed by Abraham Maslow, initiating with the most basic:
survival. Then comes Physiological needs, like food and shelter, then needs related to
safety. Succeeding, there are needs of love and belongingness. And then esteem and self
actualization needs are come. Thus, all such consideration is really essential to determine
properly so that better and define consideration could be evaluated in design frame.
NANDO's managers have to determine this aspect in better and signified manner, so that
they could utilise this frame better which enable and support them in accomplishing
objectives properly. This facilitate business managers to motivate their staff individuals
which enable and support in managing human capital at workplace. This need to assess
and understand properly as well as such factors need to utilise by HR manager of a
company in design frame (Burgoyne, 2012).

 Two factor theory: Another motivational theory which support managers of a company
to encourage their workforce would be two factor theory. This theory of Hezberg define
that there are only certain number of tools get evaluated which causes job satisfaction for
a person where as certain factors also get evaluated which used to cause dissatisfaction as
well. The first and essential factors which used to made an individual satisfied would be
performance, recognition, job status, responsibility and opportunities. All these enable
and support to made an individual satisfied towards working (Buller and McEvoy, 2012).
This motivate them in better manner so that chances of deriving beneficial attribute get
done. On the other hand, certain factors and aspects also get evaluated which made a
person dissatisfied regarding job. Such aspects on which managers of human resource
need to work will be working condition, policies and rules, employees attribute etc.
NANDO's management have to determine this aspect in better manner so that they could
work on each and every aspect which further enables them to manage effective
motivation towards each and every individual properly.
Hybrid Theory of motivation:
Once classic theories of motivation get evaluated, a hybrid consideration get crafted
which assist and support in defining aspects better so that NANDO's managers would utilise
them properly and maintain effective motivation in their restaurant for gaining competitive edge
and to facilitate their human resource workforce as well.
The first thing which need to understand by managers of a company would be to
determine needs of each and every individual better. On the basis of such motivational factors, it
would directly support in utilising two factor theory. Here, they start analysing employees
satisfaction aspects which used to motivate them like providing better working condition which
is a typically part of psychological needs of a person to determine such environment where they
could work properly. Hence, this is a part of hybrid theory on which each and every individual
used to perform their work better and in determined manner (Birasnav, Rangnekar and Dalpati,
2011).
TASK 5
Characteristics of effective leaders
Every firm is needed to have influential leaders so that they can easily guide their
workforce to perform in more effective and efficient way. It is required by leaders to have skills

and traits to influence their team members. They needs to have good skills of communication so
that by using this, they enable to influence others and encourage them to perform their duties in
well manner. They are the one who provide guidance or directions to employees so that they can
work properly towards attainment of goals and objectives within company. So, in case of
NANDO'S, it is required by manager or leader to have good knowledge and skills so that they
can utilize them in order to train their staff appropriately. Some characteristics that leaders
should possess are defined below:
Personable – It is required by a leader to have an open nature so every one of workers
can come and converse with them with no sort of faltering (Birasnav, 2014). On the off chance
that they will carry on nice to workers then they will likewise don't hesitate to impart every one
of their issues or problems to the leader. This will likewise made the workplace cheerful as every
one of the workforce are happy with how they are treated at workplace.
Visionary – It is require by leader to constantly have a future vision, since then only they
will have the capacity to prepare & direct the representatives in an appropriate manner. Vision is
imperative since then no one but they can set up workers to confront any sort of circumstance in
future. These vision just offer quality to representatives to work constantly day and night in order
to administer great outcomes to organization.
Motivational – If manpower is persuaded sufficiently then they will comprehend their
obligations in organization and will carry on & execute according to that as it were. In the event
that organization's needs to accomplish the objectives and destinations of organization then they
should execute great motivational hypotheses inside the organization with the goal that the
manpower feel energized and propelled and builds the efficiency of organization also.
Model of leadership:
Several models of leadership are there which are implemented by managers of many
firms in order to effectively attain their goals and objectives in structured and systematic way.
Various models are also applied by NANDO'S managers within firm in order to motivate their
workforce and provide them guidance in more appropriate way (Model of Leadership, 2017).
Selection of appropriate leadership model assists company and their employees in dealing with
various situations effectively and attaining goals as well as targets of company. These models are
defined below:
Situational leadership model:

This model states that there is no perfect style to adopt in particular situation. Situational
is an leadership style has been developed by Paul Hersey & Kenneth Blanchard. Situational
leadership suggest that when the leader or administrator of an association of firm should alter
their leadership style which suits the advancement level of the adherents they are endeavoring to
influence. With this style of leadership, it is all up to the leader whether to change their style or
not and their team members have to adjust with leader's style. In this leadership, the style might
change constantly to resolve the issues of others in the group in view of the condition. Situational
leadership is flexible as it adjusts to the actual workplace and the needs of team. This leadership
style did not rely on a specific ability of leader; rather, he or she changes the leadership style to
fit the requisites of the organisation (Alpkan and et. al., 2010).
One of the keys to situational leadership is versatility. It is required by the leaders to
have abilit to move initiating with one style of leadership then onto next in order to meet the
dynamic needs of a group and its workers. These leaders require the knowledge about when to
change their leadership style and what initiative methodology suits each new world view.
Contingency leadership model:
According to this model, it is stated that no best way is there to make effective and good
judgement as well as enhancing coordination within the firm. In this, it is required by manager
and leader to apply their knowledge and understanding in order to resolve difficult issues and
handle different situations that takes place within firm (Andrews and Boyne, 2010).
CONCLUSION
According to above discussed report, it has been said that leadership and human capital
management is very necessary for the firm in order to attain good outcomes. They are the only
one without which success and growth of firm is not possible. HR administrators are required to
plan great techniques for enrolment and choice so just gifted and proficient workers are selected.
Subsequent to selecting them, Human resource administrator is required to give suitable
direction to the representatives with the goal that they can perform in better manner in
organization and accomplish their goals also. This report talked about different methodologies of
human resource techniques and choice. It has additionally secured different leadership models
and traits as well as required characteristics in a leader.