Report on Human Capital and Leadership Management for H&M Company

This report provides a comprehensive analysis of human capital and leadership management within H&M. It begins by exploring relevant HRM models, including the Warwick and Harvard models, and examines how these models are applied within the company. The report then delves into H&M's HR functions, specifically focusing on recruitment and selection processes, identifying challenges and offering recommendations for improvement. Furthermore, it investigates the strategic alignment of HR initiatives within the organization. The study also touches upon the use of HRM software and the characteristics of effective leaders, taking into consideration the identified issues. Overall, the report offers valuable insights into H&M's approach to managing its human resources and leadership, providing a detailed overview of its strengths and areas for development.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
HRM models, analyse the approach of the company to the management of its human
resources......................................................................................................................................1
TASK 2............................................................................................................................................4
The organisation’s HR functions in relation to strategic human resource initiatives and
recommendations .......................................................................................................................4
TASK 3..........................................................................................................................................10
HRM software programs that are available off the shelf and its beneficial for the firm..........10
Kronos Workforce Ready:........................................................................................................10
TASK 4..........................................................................................................................................11
Characteristics of effective leaders taking into consideration all the issues identified and
appropriate model......................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Now a days, human capital and leadership management are essential for the organisation.
Human capital management is considered as the procedures of obtaining, trainings, retaining
staff for them to contribute effectually into organisational method (Budhwar, 2016). Managing
leadership is a significant guide to know that which leadership is really present in firm and how
to support it to the services of present company. For this report the chosen company is H&M
which is a Swedish multinational clothing retail firm. Its headquarters is in Stockholm, Sweden.
It is also known as the Hennes & Mauritz. The purpose of this report is to explain the human
resource management models and examine the firm to the management of their HR. Human
resource functions of the company in respect to strategic HR initiatives. HRM software
programmes and their benefits of the organisation. Apart from this, characteristics of effectual
leaders undertaking whole the issues and models to justify.
TASK 1
HRM models, analyse the approach of the company to the management of its human resources
Human resource model
These models provide analytical framework for studying and understanding human
resource management.
The Warwick model
this model of human resource develop is developed by two researchers, Hendry and
Pettigrew of university of Warwick in early 1990s. It is developed to analyses human resource
management. It also emphasizes on recognizing impact of roles of human resource function on
human resource strategy content. Researcher of this model focus their research in mapping the
context, identifying an inner context and external context. Internal context are related to
organizational functions and external context are environment (Clarke and Higgs, 2016). This
model comprise of five interrelated elements which analysis of how external factors impact upon
internal operations of organization. This reflects open system theory of organizational thinking.
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Elements of Warwick model
 HRM contents: these content includes Human resource flows, work system in
organization, rewards and recognizing system of company, employee relation with
others. This element is related to business strategy making and HRM context.
 Business strategy context: this consist of objective of strategy, product market and
strategies and tactics developed by human resource department.
 HRM context: this is context of human resource management which include roles,
definition, organization, HR outputs of organization (Garavan and et.al, 2016).
 Inner context: Inner context includes all internal factors of organisation such as culture,
structure, politics or leadership,technology, business outputs of company.
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Illustration 1: The Warwick model
(SOURCE:The Warwick model. 2019)

 Outer context: these context are external factors and affect function of organisation. It
consist of social- economical factor, technical , political and legal factors and competition
of company.
For H&M company this model can help in developing and mapping connection between
inner and outer context of human resource. It will leads to adapt to changes in context of
company. This model can help H&M company in implementing business strategies after careful
analyses and evaluation which help in competitive advantage over other rival companies. This
model is responsible for alignment of internal and external contexts for success.
The Harvard Model
This is the most influential model of HRM. As Harvard model sees employees as
resources. Human resource is considered as a most important assets of organisation. This model
believes that all employees and human of organisation is different from each other and they can
not be deal or managed in same way (Manuti and De Palma, 2016). This model consist of six
basic components of HRM.
Situation factor: these factors includes workforce characteristics of employees, business strategy
and conditions, management philosophy, labour market, unions, task technology, law and
societal values. All these factors depend upon situations and can not be predetermined.
 Stakeholder interest: stakeholder interest is factors in which stakeholder of company are
interested. This includes management of organisation, employee and group of employees,
government and community.
 HRM policy: this policy influence employees and human resource flow in organisation.
HRM policies includes reward and recognizing system of company and work system in
which each and every employee perform.
 HR outcome: outcomes of human resource for organisation is completion of task
committed, competence, congruence for taking risk and working in cost effective manner.
 Long-term consequences: long term impact of this is in well being of employees of
company and organisation effectiveness in market and societal well-being.
 Feedback: it is a loop by which the output directly flow into the organisation and to
stakeholder.
Human resource manger of H&M company use Harvard model for in policy area. This
will increase human resource flow by recruitment, selection, placement, promotion, appraisal etc.
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By this company can follow proper reward system by providing rewards or recognition to
employee who perform best in organisation (Mayo, 2016). Reward system will leads to better
performance of employees in H&M company. These policies influence employees to work with
full effectiveness and efficiency. Employees are influenced to delegate authority and
responsibility and overall development of work system of company. The implication of this
model by H&M manager will leads to achieving 4 Cs commitment, congruence, competency
and cost effectiveness.
Approaches for H&M company
The Warwick model of human resource work with approach that internal and external
factors affect in business strategies whereas the Harvard model approach is recognition of
stakeholders interest in HRM policy, outcomes and long term (Morley, Heraty and Michailova,
2016). H&M company can used both of these approves in its functioning for achieving
organisation goal and satisfying employee needs . Both of these approach cover all major aspect
which H&M company should develop. Strength of Warwick model is to identify and classify
important environmental factors that influences on HRM. It takes cognizance of business
strategy and HR practices and include interaction between changes in both context and content of
company. By Harvard model, H&M company stakeholder interests and situational factors affect
company HR policy choices in term of influencing employees, HR flow, reward system and
work system.
TASK 2
The organisation’s HR functions in relation to strategic human resource initiatives and
recommendations
Human resource
It is a team used as personnel of an organization. Human resource of Hennes & Mauritz
are the workforce of organization which is responsible for overall management of personnel of
organization. It can he refer as a department of business that deal with various functions
(Nedelcu and Buşu, 2016). It is majorly responsible for hiring employees for organization,
training and development of staff and their management or administration of activities of all
employees of organization. Human resource is also known as human capital for business. It serve
as most useful assets of Hennes & Mauritz.
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Human resource functions
This department deal with different functions of organization. Hennes & Mauritz human
resource function majorly consist of recruitment of candidates, selection best employees,
identifying needs and requirement of training and development and management of performance
of all employees. Human resource operational function includes procurement of needs of
employees, development programmes for their betterment, compensating for work done by
personnel of company and integrating activities of all employees with organization need and
benefits or maintaining safe and positive work environment in Hennes & Mauritz so that each
and every employees can work with efficiency and effectiveness. Human resource function is
responsible for solving and dealing with all issues of staff of organization.
Recruitment
Recruitment refers to a process of searching candidates for organization. It is function of
human resource department which deal with attracting and hiring people to full fill vacant job in
company (Pasban and Nojedeh, 2016). Hennes & Mauritz recruitment team works to find
capable applicants and stimulate them to apply for job opening in organization. This team work
with motive of attracting more and more candidates to apply for job so that they have better
choice in selection of employee. Process followed by Hennes & Mauritz in hiring a candidate is
after proper recruitment planning and strategy.
In recruitment currently H&M company is facing some issues which is affecting overall
performance organization working. H&M recruitment team is not able to attract required
capable candidates to fill vacant positions. This function of human resource is complete
responsible for attracting and stimulating well qualified and candidates with required skill set
and abilities necessary for performing job. Due to lack of recruitment company is not able to
perform well in market. H&M company has to select with those candidates who are available.
This is become major reason for not able to achieve organization goals and objectives.
Types of recruitment function
There are various ways by which company can find and attract them towards
organization job (Popescu, Comanescu and Sabie, 2016). As recruitment team of H&M
company is responsible for hiring and creating pool of candidates they have to carefully evaluate
and analyses different type of recruitment sources. Majorly two types of sources is used by
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respective company that is internal sources of recruitment and external sources of recruitment.
These types of recruitment are mentioned below.
 Internal sources – These sources of recruitment refers to hiring candidates from within
H&M company. In internal sources applicants seeking for different position is done by
employees who are currently working in organization. It includes promotion of current
employee to fill higher position, transfer from one position to other at same lever,
upgrading employee by providing more responsibilities, demotion of employees to low
level when employee is not performing well. Rehiring of retired employees and taking
references from current employees.
 External sources – External sources includes finding and attracting candidates from
outside organization. These sources includes advertisements, campus recruitment, or
contacting placement agencies. H&M company can also outsources its overall
recruitment process to consultancies. They can also hire some candidates from
employment exchanges programmes or labour contractors.
Selection
Selection term refers to choosing best and most suitable out of many options. Selection is
a process of picking right candidates after careful evaluation and analysis of all option available
(Renz, 2016). In H&M company selection is done after finding and attracting applicant in
organization. Now selection team will evaluate each and every candidates on bases of skills,
abilities required in candidates to perform job in company. Evaluation can be done by in depth
interview of candidates and select best candidates who can perform specific job.
H&M company selection team is not able to proper measure and evaluate candidates
from pool of interested candidates. It is responsibilities of selection team to put right skilled
candidates to right job. For this H&M company selection team have to identify requirement for
performance vacant job and choose applicant who have best ability to do that. But this is issue
currently company is dealing with. Selection team is not have to hire and put right employee to
right place. Company should look for solution to this problem because this is become reason for
lack of well qualified candidates in organization.
Selection process
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Selection process is a step by step evaluation of candidates and eliminating candidates on
each step which are not able to full fill requirement of company (Secundo and et.al, 2016). Step
followed by H&M company in recruitment process is as followed:
 Preliminary interview – In this basic information about candidates is evaluated on bases
of their qualification, skills and interests.
 Receiving applications – all those employee who are interested and capable for job
opening needs to fill application form of H&M company with correct details.
 Screening of applications – Received applications are screened and employees are
eliminated who does not match with requirement of vacant job.
 Employment Test – Candidates selected in this step needs to give test to check their
knowledge. Different types of test taken by H&M company are technical aptitude and IQ
test.
 Interview – Candidates who clear test are invited for interview process. In this in-depth
interview of candidates is taken by expertise of H&M company. Face to face interview
will help in better understanding and comparing all candidates and selecting best out of it.
 References checking and Medical Examination – References is cross checked and
medical examination of employee is conducted by company to test its medical fitness.
 Final selection – Candidates who clear all step will be given offer letter for final
selection.
Human resource development
This function of company is responsible for development of all employees of
organization. It is very important for company to provide human resource development
programmes for its employees (Surijah, 2016). Human resource development of H&M company
includes building opportunities for employee training and career development of employees
which leads in increasing performance of employees. This will help in achieving objectives of
company. This function focus on all aspects of developing superior workforce.
It is very important to develop training and develop programmes in organization but for
H&M company it is very cost consuming. Training helps in increasing effectiveness and
efficiency of employees in their working. This will leads to development new skills and abilities
in employee to perform their job. To facilitate training and development function company
require large amount of cost. Training and development include cost in hiring trainer for
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conducting training program, requires training equipments, venue for training and cost of
employees time. It is very difficult for H&M company to identify employee who require training
and its is out of budget to provide training to large number of employee at same time.
Methods of training and development
There are two methods used by H&M company for training and development function.
Methods used by company are on-the-job training and off-the-job training. Both of these two
methods have their own advantages for organization. Training and development methods are
mentioned below.
 On-the-job training – In this method, employee can get training and increase their skills
by working within organization. These methods include providing training by job
rotation, coaching training by supervisor, induction and orientation, job instructions or
internship. This will help employee to learn by observing other also.
 Off-the-job training – This method includes case study, role play, grid training, lectures,
conferences etc. These training help employee to focus in achieving training objective
only. In off the job training employee do not have to face any work pressure. They can
fully concentrate on learning rather than performing.
Performance management
This means management of performance of each and every employee of organization.
Performance management can be defined as interaction with employee at very step of way
between performance evaluation life cycle (Suseno and Pinnington, 2017). Performance
management of H&M company work with motive to focus on overall performance of
organization, department, employees of company. They are set of activities that ensure
measuring and evaluating performance of employees and ensure goals are met in an effective and
efficient manner.
H&M company performance management activities is an ongoing process of
communication between supervisor and employees. Performance management is a very crucial
function of human resource as it provide result after measuring task done by employees. H&M
company provide appraisal to employees after certain time period according to their
performance. Employees of H&M company are not satisfied with company's performance
management system. Unhappy employee are big issue company is currently dealing with.
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Employee have feeling that performance management system of company is biased and not able
to measure actual performance of employees.
Performance management tools and techniques
 Rating system – In this type of performance management system, employees are
evaluated on bases of pre defined goal and activities. Employees of H&M company has
been informed in advance about their work and task they are responsible for. On these
bases contribution of employees is measured to fulfil objectives and goals of
organization.
 360 degree feedback – this is tool which help in analysing work done and performance
of all employees (Vasilaki and et.al, 2016). H&M company uses this by taking feedback
from many about employee. To evaluate performance feedback is taken from supervisor,
manger, peers, customers, suppliers, clients etc.
Recommendations
 For recruitment function, company can use online job portals, social networking sites and
H&M company website. Company can take this strategic initiative for attracting more
candidates in recruitment process. Recruitment through online can give vast range of
options for finding candidates to fill job openings.
 For selection function, currently company is have difficult is understanding and analysing
right candidates for company. H&M company should take initiative for selecting
candidates which have high qualification degree and certificates which shows their
knowledge about job. Selecting well qualified employees with requirement skill set and
ability solve lack of efficient employee problems from company.
 For human recourse development function, company can use E-learning system. Online
learning management system is very cost effective. H&M company can upload online
videos and content on learning management portal and all employees can watch and
learn from it. It is not only cost effective but does not contain much time of learner.
 For performance management, H&M company should take strategic initiative of
developing a software for measuring and evaluating performance of employee. This
software can record each and every activities or task performed by employees and
analyse it when required to show performance of all employees.
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TASK 3
HRM software programs that are available off the shelf and its beneficial for the firm
Now a days, in organsiation technology advancement are effective to lead or leading into
marketplace. In context of H&M which is considered as the leaders of the market as well as
utilise the several HRM software to obviate issues which are faced while hiring candidates,
chose proficient employees within company and during facilitating training and development to
them. For this, respective firm are utilising several types of HRM software programmes which
are present into market area as this provides different facilities to amend organisational system.
Some of the software programmes which can be beneficial for the firm's development and
growth are mentioned below:
Kronos Workforce Ready:
Kronos provides the workforce management as well as the human capital management
abilities. This particular software facilitates a individual unified platform for last HCM with
hiring, on boarding, core human resource, training and development, compensation and many
more (Vidotto and et.al., 2017). In order to resolve the issues in H&M related to recruitment and
selection that are recruitment team is not able to attract required capable candidates to fill vacant
positions, selection team is not able to proper measure and evaluate candidates from pool of
interested candidates etc. This is beneficial for the respective company as with the help of this
software they can attract as well as retain top quality talent, also useful to meet the staff
requirement so that they become happy.
BambooHR:
Bamboo is considered as the cloud based human resource information system which
mostly target SME's enterprises. This software provides a various intuitive HR tools that cover
the individuals as well as data analytics, culture of the work area and so on. Moreover, this
usages staff satisfaction software that is embedded with electronic NPS for promoting and
engaged personnel. This is helpful to resolve the issues of unsatisfied employees, cost consuming
as keep all the data of the people as well as company which aids to reduce the cost and also
helpful to measure the performance of the employees which results in increased productivity
level.
Kitaboo Insight:
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