Managing Human Capital and Leadership Report: M&S HRM

This report provides a comprehensive analysis of Human Resource Management (HRM) practices at Marks & Spencer (M&S). It begins with an introduction to HRM and its strategic importance, followed by an overview of M&S's business. The report then delves into various HRM models, including the Fombrun, Harvard, Guest, and Warwick models, analyzing their strengths and weaknesses in the context of M&S. It further explicates the HR functions in relation to strategic human resource management, focusing on recruitment, selection, and their respective sources and challenges. The report also touches on HRM software programs and concludes with an examination of the characteristics of effective leaders, drawing on different models to illustrate these qualities. The report emphasizes the importance of strategic HRM in achieving organizational goals and maintaining a competitive edge.

MANAGING
HUMAN CAPITAL
AND LEADERSHIP

Contents
INTRODUCTION...........................................................................................................................4
Task 1...............................................................................................................................................4
HRM models along with analysis of management of their human resources.............................4
Task 2...............................................................................................................................................7
Explicate the HR functions in relation to strategic human resource...........................................7
TASK3...........................................................................................................................................12
HRM Software programs...........................................................................................................12
TASK4...........................................................................................................................................14
Characteristics of the effective leaders......................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCE................................................................................................................................17

INTRODUCTION
Human resource management is defined as a process in which recruitment, selection,
induction of employees, decisions related with compensation and benefits along with employees
motivations is focussed on. It is a strategic approach which is being used by organisation for
carrying out their operations in effectual manner and attain their organisational gaols and
objectives within stipulated time duration. Apart from this, they are responsible for creation and
overseeing policies governing employees as well as maintain healthy relationship between
management and staff. This report is based on Marks & Spencer which is a British multinational
organisation. This is headquartered within London and deals with high quality home, food
products and clothing. They are rendering their services worldwide by covering around 1463
locations and with near about 80,787 employees. This signifies that services which are provided
by them are of high quality by which most of the people prefer them. This report covers HRM
models along with analysis of management of human resources. HR functions are illustrated with
respect to strategic human resource initiatives. Apart from this, software associated with HRM
are identified and software which is being used mostly is evaluated. Furthermore, characteristics
of leaders are explicated with the usage of different models.
Task 1
HRM models along with analysis of management of their human resources.
Human resource management refers to a strategic approach which is implemented for
managing and controlling people within organisation through which competitive edge can be
obtained. It is basically associated with management of people, policies and systems. The
features of HRM are referred to models. They furnish analytical structure for HRM and their
characterisation through which variables and relationship among them can be identified. The
purpose of these models within ZARA is to validate and furnish distinctiveness to HRM
practices. Along with this they assist to understand as well as discover world for explaining
significance as well as nature of these practices. These models are illustrated below:
The Fombrun model: This focus on four functions of HR practices which are correlated with
one another. They comprises of selection, appraisal rewards and development. These are the
basic components and by this effectiveness of organisation cannot be determined. With respect to
ZARA a strong impact will not be created by this as it do not takes into consideration

contingency and environmental factors that can influence functions of HR. It acts like a heuristic
structure for justifying significance as well as nature of HR activities. With this ZARA can
manage their human resources in effectual manner. Apart from this, productivity and efficiency
of employees can be enhanced. Furthermore, their capabilities can be improvised by furnishing
rewards, appraisals and training. The major drawback of this model it do not includes entire
functions which affects HRM.
The Harvard model: This model comprises of six essential components and it is
comprehensive. These dimensions comprises of situational factors, stakeholders, HR outcomes,
HRM policy choices, feedback loop through and long term consequences. The result of this
model directly flows to stakeholders and organisation. This is depicted below:
Stakeholder’
s interests
Situational
factors
Human resource
management
policies
Human
resource
management
outcomes
Long term
consequences
Management
Employees
Community
Shareholders
Government
Management
Philosophy
Workforce
characteristics
Prevailing
business strategies
as well as
situations
Technologies
associated with
tasks
Laws and societal
values
Human resource
flow
Reward systems
Work systems
Employee
influence
Cost
Commitment
Cost
Efficiency &
effectiveness
Congruence
Competence
Effectiveness of
organisation
Well being of
society
Well being of
individuals
The Guest Model: This model was designed in 1997 by David Guest and is one of the most
effectual model in comparison to other HRM models. With respect to this, HR managers needs

to formulate strategies as well as plans when they initialise their working and these strategies
need effective practices before HR manager executes them within organisation. After execution
of these strategies and policies, various affirmative results are attained, these results or outcomes
associated with behaviour, performance and financial rewards related with this. The aim of this
logical sequence is to focus on sequence of six crucial components. In this case, performance of
employees is measured with respect to profit gained by ZARA in financial terms. HR manager of
this organisation has executed this model within their working structure to analyse the
performance of entire organisation depending on efficiency of employees. It denotes action
oriented behaviour of employees. It is the duty of HR manager to execute HR practices and
strategies for attaining objectives and goals of organisation in effectual way. Flexibility, quality
and commitment of employees are major components which creates direct impact on behaviour
of employees. With assistance of this model, management of ZARA can formulate their
practices, plans and strategies which will create direct impact on performance of employees.
The Warwick model: This model is devised by Hendry and Pettigrew of University of
Warwick. Basically, this is developed by two researchers and comprises of five essential
elements. They comprises of micro environmental forces (inner context), human resource
management context, HRM content, Business strategy content and macro environmental forces
(outer context). As per this model, the major strength of this is based on classification and
identification of internal as well as external factors which analyses entire operations associated
with Human Resource Management. With respect to this, Warwick model comprises of
interactions which occurs in context of HRM content. With respect to ZARA, HR manager of
organisation make use of this model to identify various factors which will create overall impact
on HR strategies or practices. The other major vantage of this model assists in identification as
well as classification of factors which creates impact on performance of entire organisation. This
model assist manager to identify connections which are associated with external environment so
that alterations can be handled effectively by both managers as well as employees. If
organisation can adapt to these changes in effectual manner then it will become easy for them to
attain success as well as growth within competitive working environment and market. As per this
model, management of ZARA will identify internal as well as external elements which will
impact overall working culture and structure of organisation.

Task 2
Explicate the HR functions in relation to strategic human resource
Strategic human resource management refers to practice through which employees can be
promoted, rewarded, retained and attracted in order to render facilities as well as benefits to
employees and organisation. This plays crucial role within organisation to make use of talent
within HR department so that working process of other departments can be made stronger. With
assistance of Strategic human resource management organisation can identify opportunities
along with threats which are present within internal as well as external environment. On other
hand, various benefits are rendered to organisation by meeting the requirements and needs of
customers in effectual way. Therefore, it is essential for ZARA to accomplish needs of
employees by implementation of strategies in effectual manner in working premises. The results
which will be obtained with be affirmative and management team of organisation can attain
attain objectives and goals in trenchant manner. With respect to ZARA, the major functions in
context of strategic human resource management deals with recruitment, hiring and selection of
potential candidates with respect to development of entire strategies for entire organisation. It is
one of the largest British multi-national organisation which furnishes clothes, household goods
and food products. Thus, it is very crucial for an organisation to maintain their human resources
by which they will be able to attain goals with effectual way. There exists different types of
functions which comprises of recruitment, selection, development of human resources, talent
acquisition, their retention and many others. All these functions have their own role within
development as well as growth of entire organisation. HR department within ZARA is involved
in hiring new employees when they are in need and training is provided to them with respect to
current technologies and market practices which are followed by them. With reference to ZARA,
there exists diverse functions which are utilised by management team of organisation. They are
specified below:
Recruitment & Selection: Recruitment implies the process in which management team
within organisation can identify best candidate by which goals can be attained in effectual
manner. It is one of the crucial function of HRM within organisation. But on the other hand
within selection, management choose appropriate as well as capable candidate who possess
ability in context of knowledge as well as educational skills by which present job positions can
be accomplished. In context of ZARA, managers of organisation recruit and select candidates

with respect to technical knowledge and skills as per requirement of staff within organisation.
Recruitment process comprises of different techniques as well as methodologies like
advertisement within magazines, job portals, newspapers, websites and various other mediums
can be used by them. With reference to this, it comprises of external and internal sources. After
recruitment of candidates, another phase comprises of selection in which candidates will
evaluated on the basis of aptitude, skills, personality, attitude, behaviour, analytical and various
others. With respect to this ZARA, it is crucial for them evaluate strengths and limitations of
internal as well as external sources associated with recruitment.
Sources of Recruitment:
 Internal Sources: As per this, management team within organisation can fill the
vacancies by selection of candidates within organisation. It comprises of transfer,
promotion and many others. This source acts as source for motivating employees which
will lead to enhancement of performance and profitability of employees. With respect to
ZARA, managers of organisation utilise this method, it comprises of promotion,
employee mobility, transfer and various others.
External Source: It is considered as best recruitment practices which assists in
acquisition of new talent within entire world. With respect to management of ZARA,
they make use of this approach as by this they will be able to hire a new workforce which
will bring with them a new energy passion and a zeal to work harder to have their own
image. This is done by management of ZARA by making use of campus recruitment,
consultant agencies, labour contract and many others.
Strength and weaknesses of recruitment approach:
Particular Internal Recruitment External Recruitment
Strength  As per this process,
management of ZARA
knows their employees
individually which assists
them to promote the best out
of them.
 With assistance of fresh
talent, ZARA can
improvise their
productivity and
profitability by rendering
creative innovative

 It is defined as a method in
which cost along with time
of ZARA. This will aid them
to utilise the resources in
effectual manner.
products.
 It will furnish equal
opportunities to candidates
who have have the ability
to motivate them.
Weakness  With respect to this new
candidates can not be
acquired this will create a
negative impact on
productivity of ZARA.
 But on the other hand, with
respect to ZARA scope will
be limited and organisation
fails to generate and innovate
new goods.
 This method is time
consuming along with its
cost is high, this will have
negative impact on profit
margins of ZARA.
 HR managers of ZARA,
needs to carry out different
activities for recruiting the
best candidates for
organisation.
Selection: In this case, managers distinguish within best and capable applications with
respect to knowledge, skills, behaviour and attitude. This process comprises of different
attempts related with aptitude test, personality test, case study analysis and various others. With
respect to ZARA, management of organisation can utilise two methods for selection of best
candidates by means of written as well as interview methods.
 Written Test: This is the best method in order to examine the skills, knowledge
and capabilities of any candidate. Manager of TESCO use this approach within
their organisation, which will provide them potential candidate which enhance the
productivity as well as profitability of the company. This method help the
management team, to check capabilities of candidate according to their academic,
logical and analytical knowledge.
 Interview method: Under this method, managers of TESCO conduct an
interview session for examining their candidates personally. It includes face-to-
face interview, telephonic interview and many more. This approach helps the

managers in order to examine the technical knowledge, personality as well as
behaviour of the candidate.
Motivation: It is one of the most crucial aspect in business organisation. Every
organisation takes several steps in order to motivate its employees and organises several
programs which motivates them in order to work for the attainment of business goals and
objectives effectively and efficiently. All the employees working in the Mark and Spencer learns
about the environment in which they work and wishes to get recognition for the work performed
by them. All organisation work harder to provide immense motivation in their employees for the
common intention of accomplish the business goals in more productive and effective manner. As
the present business world is highly dynamic and this creates a need for complex plans so
attainment of those plans is not easy because employees needs to work harder with full potential
and zeal and this is possible only when they have immense motivation from inside and are happy
to do the work for the company. Thus, this plays a vital role in Mark and Spencer. For this
purpose the company focuses on various motivational programs which will empower and
encourage the employees of the company to work with full efforts and confidence. The following
are the types of motivation which are provided in the organisation:
 Intrinsic motivation: This type of motivation is concerned with rewarding and
recognising the individuals from their behaviour. In this type of motivation, the person
requires encouragement which are non financial in nature. The Mark and Spencer will
motivate their employees by respecting them, giving them attention, promoting them in
organisation at next higher level because of their extraordinary performances, etc.
 Extrinsic motivation: This type of motivation is related to motivating an individual at
the workplace to earn a reward or ignore a punishment. Under this, the Mark and Spencer
will give financial rewards to their employees like bonuses, incentives, allowances, etc.
which will motivate people to work with full confidence and zeal for the attainment of
business goals and objectives.
Motivation Strength Weakness
Intrinsic The individuals working in
Mark and Spencer has a
greater level of understanding
of their task and work
At the same time, this can also
be conflicting in nature where
only few individuals are given
this motivation and rest are

performed by them. This helps
them in producing better and
more productive results for the
company.
not recognised and also
creates a feeling of negativity
in employees which could be
harmful for the company.
Extrinsic When the company focuses on
offering incentives and
rewards to the team or group
of individuals then everyone
in the group works with
similar level to maximise their
productivity.
Some of the extrinsic rewards
are so stressful that it can
eradicate the internal
motivation which people
already poses and requires to
do the work of every day.
Training and development: As the business environment is highly dynamic and it requires
changes in the policies and procedure so it becomes very crucial for the companies to provide
regular training to their employees which will guide them and help them in attainment of
business objectives and goals. Due to the use of high and advanced level of technologies in the
operations and systems of the Mark and Spencer, they provide continuous training to its
employees so that their employees remain consistent towards the attainment of the business
objectives and goals and also they will know the manner in which the goals and objectives can
accomplished. There are various types of training programs which can be organised by the Mark
and Spencer to make their employees more knowledgeable and skilled and they are discussed
below:
 On the job training: This is the type of training method where the individual person is
provided a training while performing the job. In this, Mark and Spencer provides training
to the already existing employees. This is the most flexible method of providing training
so that the employee or individual can learn and acquire new set of skills and knowledge.
There are various ways through which the training is imparted like job rotation, coaching,
job instruction, internship, etc.
 Off the job training: Under this type of training, the individual is provided training
away from the actual place of work. They are sent to the another location or field so that
they can learn and gain new experiences and skills. It is done because to enhance the