HR Management, Leadership and Employee Motivation at NANDO'S

This report provides a comprehensive analysis of human capital management and leadership within NANDO'S, an international dining restaurant. It explores the role of HR managers in implementing policies and practices to effectively manage the organization's workforce. The report delves into various HR models and approaches used by NANDO'S, including controlled-based, resource-based, and integrated models, to achieve organizational goals. It critically examines the recruitment and selection processes, highlighting the use of online platforms and strategic HR initiatives. Furthermore, the report discusses different approaches to HRD, areas for improvement, classical theories of motivation, and the characteristics of effective leaders. The analysis aims to provide recommendations for NANDO'S to enhance employee motivation and improve overall organizational performance.

MANAGING HUMAN
CAPITAL AND
LEADERSHIP

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION ..........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
TASK 1............................................................................................................................................4
Relevant model and approaches of the business organisation to manage its HR resources.......4
TASK 2............................................................................................................................................6
Critical analysis of selection and recruitment in link to strategic human resources initiatives. .6
TASK 3............................................................................................................................................8
Discuss different Approaches to HRD and their area for improvement.....................................8
TASK 4..........................................................................................................................................10
Classical theories of motivation................................................................................................10
TASK 5..........................................................................................................................................12
Recommendation to the business discuss the characteristics of effective leaders ...................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

ABSTRACT
This report discusses about managing human capital and leadership inside the
organisation and the role HR manager plays inside in company. These managers implement
various policies and practices so as to control the work of whole organisation in an efficient
manner. Various models and approaches are applied by the HR manager and helps in achieving
the goals and objectives of organisation. In NANDO'S online method of recruiting and selection
are being used by the managers so as to recruit and select skilled candidate so that they can
contribute in the working of the company. These approaches are very effective in achieving the
long term goals and objectives of the company in shorter period. They are also allowed to use
various kinds of motivational theories and leadership models so that the employees are guided in
an appropriate manner.

INTRODUCTION
Employees are considered as backbone of organisation because without them the
company will not be able to conduct their operations. Because of their hard work and
contribution, companies are able to achieve their goals and objectives. Therefore companies tries
to motivate their employees to learn new skills sop that they are able ton increase the
productivity of organisation (Alpkan and et. al., 2010). Human capital is defined as factors which
collectively has skills, attributes, knowledge of employees which helps them in performing well
in the company and increasing their and company's productivity as well.
Managing human capital is considered as the main role of HR department as these are
employees are the most important asset for the company and if they are effective then it will be
very beneficial for the company. The company that has been referred in this report is NANDO'S.
It is an international dining restaurant in MALTA, South Africa. This report will discuss about
various approaches and models of the business organisation and the recruitment process and
selection process made by them as well. Along with this various approaches of HRD and its
measures of improvement , theories of motivation, characteristics of effective leader will also be
discussed.
LITERATURE REVIEW
The whole report is divided into five tasks through which the ways in which the HR
manager manages the human capital of the company will be understood. They will discuss about
the structure followed by them so as to motivate the employees to perform in an appropriate
manner.
TASK 1
Relevant model and approaches of the business organisation to manage its HR resources
NANDO'S was launched by Dick Enthoven at Johannesburg, South Africa, Malta in
1987. It is considered as a private casual dining industry all over the world. They are having
around 1000 outlets in more than 30 cities. They are having their specialisation in Portuguese
style chicken dishes with various Peri-Peri marinades. They provide various eating alternatives
like late night dinner, Brunch, Lunch and they are also providing few different services like;
serves Alcohol, free Wi-Fi, Take-out, Waitstaff, Seating, Highchairs Available and other
facilities. The quality of their products and services are really good and that is why they have

made their place so easily in the market. They are also having a strong advertisement channel;
through which they try to reach out the people .
At NANDO'S, they are having implementing all kinds of HR opractuicde4s but with the
sudden increase in the competition , they now require to revitalise their HR policies so that they
can stay in then competition and does not loose their market share as well. There are various
models and approaches that can be implemented by HR managers of NANDO'S so as to gain
their efficiency back.
Models and Approaches :
The primary objective of NANDO'S is to provide quality products and services to its
customers so that the customers are satisfied and come again. The HR manager of NANDO'S is
having the responsibility to design and implement best HR strategies for the company and also to
select the HRM model that suits best to the company so that NANDO'S work is completed in an
effective and efficient manner. It is a very important responsibility so HR manager should
complete this with full dedication so that the company might not suffer in future (Andrews and
Boyne, 2010). All these HR strategies are very helpful in improving the performance of
employees.
There are basically three types of HR model which are used by NANDOS while doing
their business operations which are:
 CONTROLLED BASED MODEL – It is considered as an effective and very important
approach that is to be used by NANDO'S so as to achieve growth and success in the
market. In this model, HR manager takes care of all the processes which are going on in
the company so that they can achieve higher profitability in market. Various aspects that
ae covered in this report are individual, technical and bureaucratic outcomes and process
based controls (Birasnav, 2014). This approach is very effective for the management as
they are able to measure all the issues that are prevailing in the organisation. As per this ,
the management structure and HR strategy are the most effective techniques to bring
good control inside the organisation. So, management of NANDO'S should make sure
that they manage the behaviour of employees so that they are able to perform as the
expectation of company. Therefore, HR managers are given the permission to give
appropriate guidance to the employees so that they are able to contribute in achieving the
goals and objectives of the company.

 RESOURCE BASED MODEL- This approach is based on reward-exchange effort
method and also here the management is considering employees as assets and thus they
care of them in an appropriate manner (Birasnav, Rangnekar and Dalpati, 2011). This
model suggests that if there is good technology available in company along with the
necessary resources so that the employees can perform in an appropriate manner and give
good results to the company. Also , it is considered that if the employee is equipped with
god knowledge and expertise then they are having the potential to give competitive
advantage to the company. This approach also exploits different competencies of work
organisation. These resources are divided into two parts which are ; tangible (Human,
physical, technological, financial) and Intangible (reputation, brand-name) . So,
NANDO'S is required to have these resources and that too in a unique and valuable
manner.
 INTERGRATED MODEL- This model is considered as a combination of both the
above mentioned models. Therefore this model's main aim is to discuss about the two
main dimensions of HR Strategy which are; 'Acquisition and Development' and 'Locus of
control'. The Former factor talks about the extent to which the HR strategies are used to
develop the internal human capital i.e. the staff menbers rather than the factors of external
environment. Whereas the latter factor says about the degree to which the HR strategies
are used to maintain focus on monitoring the employees so as to improve their work
performance.
TASK 2
Critical analysis of selection and recruitment in link to strategic human resources initiatives
In order to manage the employees in an effective manner, it is required by the HR
manager that they recruit the employees who are skilled and competent. Recruitment and
selection process is a very important process in Human resource department (Buller and
McEvoy, 2012). So, in this the HR manager plays a very important role as they are the only one
that recruits and selects the employee who are skilled and competent. Here, the HR manager can
recruit the employees internally as well externally so that the employees feel better and work in a
more comfortable manner. The people who are working in Human resource department of
NANDO'S is given the responsibility to search, knowledgable and talented candidates as per the

requirements of the position available this will help them in recruiting the employee who is best
for the position. But if they want to encourage the present employees as well so they can go for
internal methods of recruitment as well (Burgoyne, 2012).
In NANDO'S , the HR managers are following this technique only as they are searching
for perfect candidate both inside and outside the company. In fact, both these approaches are
highly effective as they will give results that will be beneficial for company only. Here at
NANDO'S, the management is providing online recruitment system like taking help of various
job portals like Naukri.com, indeed.com etc. In this process, all candidates who wants to apply
for job can submits their curriculum vitae by online activity. Through this process they will get
more option to select the best candidate for the job. This will be a very beneficial process for
NANDO'S as they will be able to save their time as well as cost and along with this more options
are also available for them. The whole process associated with it as follows:-
Listing Jobs on organisation Websites: This is considered as a first step in the online
recruitment process. Here, the company have to registered online job site like Naukri.com and
then list the positions that are vacant in the company so that the desired candidates can apply for
the job through the site. This will save their hiring cost which they might have occurred if they
have recruited externally.
Posting jobs online: Here, management will post the position that are left vacant in the company
along with the details that are required to be known before applying for the job. There are
various options that are held by the company to post the jobs online like Monster, linked in etc.
Using LinkedIn: NANDO'S has selected Linked In to post their vacant position in the online
sector. It is a highly used job website which is authenticated as well and chances of frauds here is
very less. So, after posting the job on Linked In, the candidate's may apply for the said position.
Here, NANDO'S have more chances to get best employee for the company.
Social recruiting:It is an another platform that is being used widely in the current recruiting
market (Caza and et. al., 2010). In this the companies takes help pf various social media sites so
as to find their desired candidates. Since NANDO'S is also searching for skilled employee, so
they may go for Twitter.
Job application process: From this step, finally the process of recruitment and selection is
actually started. Here, firstly the applications received by company is shortlisted and then the

selected people are called for the test where there skills will be tested. After scrutinising
employees from here, the final selected candidates are called for the interview process.
Interview process: Here, the candidates are called for the interview and asked questions from
which their skills and knowledge will be judged. After this , if the employee is selected then they
are given the job letter (Coff and Kryscynski, 2011).
Hiring Process: In this step, the HR manager is required to check the backgrounds of the
employees who are finally selected and their medical examination is also done.
Recommendation:
Employee Motivation: In this NANDO'S can motivate the employee to work with their full
potential so that they can get promotion in the company and achieve the goals of the company as
well. So, while doing promotion they can make use of internal method of communication.
Provide training and development program: The management of NANDO'S should provide
effective training programmes for its workers so that they can enhance their skills and
capabilities. This will be beneficial for company as they will not have to conduct external
recruitment process.
TASK 3
Discuss different Approaches to HRD and their area for improvement
Human resource development can be defined as a process that is considered as very
important for the employees who are working in the company. Through this process, the
employees gets the opportunities to develop their skills and knowledge which they can use to
perform their work in more effective manner (Dalakoura, 2010). The various activities that are
included in Human resource department are employee training, career development, tuition
assistance, mentoring, coaching, succession planing etc.
There are various approaches that are used by HR managers in order to develop the human-
resource. In NANDO'S , the HR manager is required to use an approach that suits the best fir the
employees of the company. This will help them in completing their work in more effective
manner and completing the goals as soon as possible. NANDO'S is spending approx 30% of ots
revenue on its workers. The various methods described as follows:-
STRATEGIC HUMAN RESOURCE FRAMEWORK APPROACH – This is
considered as one of the mostly used approach in which various strategies related to business is

applied so as to increase the capabilities of business. This framework was propounded by Ulrich
and Lake. It considers the practices of HRD as one of its main elements. Here, they aim to take
advantage of various HRD practices so as to increase the productivity of company and for this
the employees are trained well so that they perform in an good manner (Dimov, 2010).
INTEGRATIVE FRAMEWORK – This approach is also following the same footsteps
of Strategic HRM approach as here also the main focus is on implementing good HRD practices
so as to improve the performance of business organisation. The three paths that are considered
are; Building capabilities of organisation, improving satisfaction of employees, shaping needs of
individual. They are having a full focus on developing the whole system of Human resource
inside the company.
HUMAN CAPITAL APPRAISAL APPROACH - The main focus of this approach is
on employees as they are only considered as the main assets of the company. This approach was
propounded by Friendman in 1998. In this, the approach is divided into five stages which are;
Clarification of stage, Assessment stage, Design stage, Implementation stage, Monitoring stage.
NANDO'S can make use of this approach to get various types of benefits like recruitment,
retention, rewards and performance management, career development, succession training &
planning. It is very essential for companies to follow all these stages so as to retain the
employees in the company for longer period of time.
PCMM APPROACH – It is called as People Capability Maturity Model and this
approach was mainly built for the companies that is dealing in software. But the way they are
applied, it can provide benefit to every organisation. Here, the management will try to develop
and motivate the employees so that they do not leave the organisation and benefit the company
as well. It is also said that each of the maturity level is consisting several key process areas that
help in identifying cluster related work practice (Gates and Langevin, 2010).
INTEGRATED SYSTEM APPROACH – It is considered as a very effective approach
that can be used by NANDO'S so as to effectively design and implement Human resource
development system. It showcases that strategies are applied in the initial process and are having
focus to achieve goals and objectives. Here, most of the elements of human capital approach is
used.
HRD SCORE CARD APPROACH – It is also a very effective approach as it provides
a link between the Work of HR department and goals and objectives of company. It basically

says that all the practices of HR that are applied should be mature and beneficial in terms of
skills and competencies (Guest, 2011). Managers of NANDO'S can make use of score card so
as to measure their effectiveness and efficiencies in producing employee behaviour which will
help in achieving goals of company.
SCOPE OF IMPROVEMENT : There is always a scope of improvement in every case.
At NANDO'S also, they are having various facilities that can be improved by them so as to
provide good services to the company. They can also re form new plans and policies for the
company so that they can achieve their long term goals and objectives of the company.
There are various scope to improvement in business performance such as promotion, job
rotation, understudy, mentoring and task evaluation. All these approaches are effective so as to
bring growth and success to the company. Out of all this, Promotion is considered as the mos
effective tool so as to encourage the employees to work in a more better manner (Gutiérrez,
Hilborn and Defeo, 2011).
TASK 4
Classical theories of motivation
Employees are considered as main asset for every company. Through their contribution
only the organisation is able to deliver the products and services to their customers. Thus it
becomes an essential duty of company to take care of their employees so that they do not face
any kind of issues and helps in achieving the goals and objectives of the company. For giving
good results, the employees are required to be motivated so that they do their work with more
dedication and hard work (Jiang and et. al., 2012). So, NANDO'S is also required to implement
various motivational programmes inside the organisation so as to motivate the employees and
improve the image of the company in market as well. Some of the theories are:- Theory X and Theory Y - As per Douglas McGregor, this theory has divided the human
behaviour into two aspects or in other words two different views of employees are
included one of which is Negative i.e. Theory X and the positive one is Theory Y. As per
theory X, It is said that the employees are not working in a proper manner and are
escaping whenever possible. They are forced to do their work and achieve the goals of
the organisation as they do not do it by self. So, here the managers re required to have a
close supervision on such employees so that they can be managed and controlled in an

effective manner. Where as in Theory Y, employees are doing their work in a more
relaxed manner and does not need any kind of physical or mental threat so as o achieve
the goals and objectives of company. Here, the employees work with dedication by
themselves and does not need control of anyone (Ling and Jaw, 2011). Management of
NONDO'S has to decide which employee will categories under what group. Maslow's theory of Need – It is considered as the most effective theory while considering
the needs of employees. In this theory basically five stages are included namely;
Psychological needs, safety needs, social needs, self Esteem needs, self actualisation
needs. As far as the psychological needs are considered, NANDO'S are required to give
appropriate salary to the employees so that they can fulfil their basic needs. In case of
safety needs, the employers are required to give job security to its employees. Also
providing a safe and secure work environment should also be given to them so that they
work without any pressure. In case of social needs, employees should be provided good
team so that they are able to work in a free manner. Equity Theory – This theory is based on the fact that the employees can be motivated
only through fairness and equality. Here, the employee's motivation is correlated with
their perception of equity. If the employees are having a perception that they are being
treated in a good manner then they will be highly motivated and will give good results to
the company. So, while doing evaluation they compare their input with their output
(Luthans and et. al., 2010). Hawthorne Effect – This theory of motivation was developed by Henry A. Landsberger
in 1950. as per this theory, it is very important to have a look on the performance of
employees and this work is done by HR manager of company. Through these regular
checks the employees develops a feeling of motivation in between the employees which
compel them to perform in more better manner. But all the individuals gets the rewards
on the basis of their performance. So, it will bring a sense of competition in the
employees and thus they will try their best to give better results to the company so s to
get good rewards. In this theory, six main aspects are considered namely; Psychological
contract, communication, socialise, group activity, recognition, workers interest. These
factors plays vital role in motivating employee in NONDOS.
Proposing Hybrid Theory for NANDOS:

It is considered as a combination of theories. Since there are various kinds of employees
working in company so company cannot apply same theory to motivate all of its employees
(Makri and Scandura, 2010). Since NANDO'S is into hospitality segment so they are required to
all of their customers in an equal manner and if they will do any kind of discrimination then it
will be illegal. The employee are required to serve the customers in their best manner so that they
are able to generate good revenue for the organisation. So, NANDO'S are required to make use
of equity theory and Maslow's theory so that they can achieve their goals in shorter period of
time.
Source: Maslow's need theory, 2018
TASK 5
Recommendation to the business discuss the characteristics of effective leaders
It is required for every company to have effective and efficient leaders so that they ca
train and guide the employees so that they can perform in their most effective manner (Nyberg
and et. al., 2014). The leaders are required to be very skilled and knowledgable because then
Illustration 1: Maslow's need theory