Human Capital and Leadership Report: A Case Study of NANDOS

This report examines human capital management and leadership within NANDOS, a global restaurant chain. It begins with an introduction to human capital and leadership, emphasizing their importance in the HR context. The literature review sets the stage for five key tasks. Task 1 explores relevant HR models and approaches used by NANDOS, including controlled-based, resource-based, and integrated models. Task 2 critically analyzes NANDOS's recruitment and selection processes, linking them to strategic HR initiatives and providing recommendations for improvement, such as leveraging social media and employing both internal and external recruitment methods. Task 3 discusses different approaches to HRD, with an emphasis on employee training, career development, and mentoring programs. Task 4 delves into classical theories of motivation, exploring how NANDOS uses them to encourage employees. Finally, Task 5 offers recommendations on the characteristics of effective leaders within the organization, focusing on strategies to enhance employee performance and achieve business objectives. The report concludes by summarizing the key findings and insights into the effective management of human capital and leadership in the restaurant industry.

MANAGING HUMAN CAPITAL AND
LEADERSHIP

Table of Contents
ABSTRACT.....................................................................................................................................3
INTRODUCTION ..........................................................................................................................3
LITERATURE REVIEW................................................................................................................3
TASK 1............................................................................................................................................4
Relevant model and approaches of the business organisation to management of its HR......4
TASK 2............................................................................................................................................6
Critical analysis of selection and recruitment in link to strategic human resources initiatives6
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 ............................................................................................................................15
REFERENCES..............................................................................................................................16

ABSTRACT
This report discussed about the managing human capital and leadership and role of HR
manager in the company. Various models and approaches of HR Strategy help the organisation
in order to control all resources and work of person effectively. NANDOS use online method of
recruiting and selecting knowledgable and skilled candidates who meet the minimum criteria of
business. Approaches to human resource development also help the business entity to achieve
long term goals and objectives in limited time period. Company use different types of
motivation theory and leadership model in order to encourage employees towards business tasks
and projects.
INTRODUCTION
Human capital is identified as a measurement of capacity, education, attributes, skills and
experience of labour. With the help of these, they can influence their efficiency capacity and
achieving potentials goals and objectives in an effective manner. Managing human capital is
known as essential role of HR in the company. One of the main responsibilities of HR is to
recruit and select knowledge and talented candidates who easily fulfil business tasks

appropriately. Leadership is known as an art of motivating and encouraging a large number of
person towards attaining a common target and goal (Alpkan and et. al., 2010). It is an effective
procedure by which a manager influences, guides and directs the work and behaviour of others.
This report is based on NANDOS which is an international dining restaurant in Malta,
South Africa. They produce Peri-Peri Chicken and other food items to customers at reasonable
cost. This assignment shows approaches and models of the business organisation as well as
process of recruitment and selection related to strategic HR initiatives. Various approaches of
human resource department and their improvement area are also discussed in this study. In order
to motivate and promote employees, company use classical motivation theory which are
determined in this project. Characteristics of effective leader which is also discussed in this
assignment.
LITERATURE REVIEW
This report mainly consists Five task which are identify the role of human resource
manager in the selection and recruitment process. Whole project discussed about how to
motivate and encourage employees, so in this business use different types of leadership and
motivation model.
TASK 1
Relevant model and approaches of the business organisation to management of its HR
NANDOS is a Private and Casual dining industry in all over the world. It was found in
the year 1987 by Dick Enthoven at Johannesburg, South Africa, Malta, etc. Founders of this
company are Robert Brozin and Fernando Duarte. This business was famous and popular for
their quality and tasty Chicken as well as related Portuguese cuisine products. They provide
different dining options such as late night dinner, Brunch, Lunch, serves Alcohol, free Wi-Fi,
Takeout, Wheelchair Accessible, Waitstaff, Seating, Highchairs Available and other facilities.
They started their business operations in more than 20 countries (Andrews and Boyne, 2010). In
order to attract a large number of the customers towards quality products and services, firm uses
different kinds of communication channels such as advertisement, promotion, sponsorship, etc.
So it is beneficial for company to increase their annual sales and revenue in a quick way.
Model and approaches of the company: Primary aim and objective of NANDOS is to
provide quality products and services to their potentials and target customers at reasonable cost.

The human resource management as the design, maintenance and implementation of strategies to
handle person for optimum performance of business, including the creation of processes and
policies to assist these strategies in an effective and efficient manner. The link between the
business and HR strategy are explained in the certain context (Birasnav, 2014). These are
identify as a strategies decision in respect to the policies and practices used by the business
management in the activity of developing, training and selecting the knowledge workers and to
control and motivate them.
There are basically three types of HR model which are used by NANDOS in their
business operations which are:
Human resource strategy models
Controlled Based Model: Resource Based Model

Illustration 1: Model of Human resource Strategy
Controlled Based Model: It is known as an effective and essential approach of business
growth and success. In this, company monitored all labour processes in order to gain efficiency
and higher profitability in an effective manner. This model includes different aspects such as
individual, technical and bureaucratic outcomes and process based controls. All these are applied
where the connection of less certain (Birasnav, Rangnekar, and Dalpati, 2011). It is valuable for
the restaurant in order to addressing different issues and overcome with them. This aspects gives
an effective method for establishing or initiating a common structure for communication passim
the process of design while assisting the model of development cycle. In this, role of human
resource manager is to give accurate guidelines to their workers so that they can work with full
efforts and attain desired goals and objectives of business organisation in limited time period.
Resource Based Model: This approach chiefly emphasis on the strategy value of person
and assets as well as continuous learning in the organisation. In this SHRM (Society for human
resource management) has its main emphasis on the external threats and opportunities. This
approach is very important and essential for company to identify their internal strengths in an
effective manner. With the use of this model, NANDOS see their available resources as key to
business performance (Buller and McEvoy, 2012). It is important for the firm to sustain and gain
competitive advantages essentially. This tool is valuable for the enterprise to analyse their
internal resources as well as assess weakness and strengths of firm resources. NANDOS is a fast
food restaurant worldwide and motive of it is to gain maximum profits and revenue in
comparison to other competitors.
Integrated Model: It is also valuable and useful model for the restaurant in order to
controlling the worker compliance. This theory mainly characterised into two parts, including
development and acquisition. It is chiefly emphasis on internal human capital and attaining of
personal and organisational goals. This model includes four steps which are followed by the
human resources of company in their business operations and functions. All these are described
as below: Infancy: In this, all team members of NANDOS mainly lay on the support and direction
of leader.
Integrated Model

 Adolescence: In this, process authority of leadership is entirely challenged. So, HR
manager solve different conflict regarding disagreement occur, values emerges, coalitions
and subgroups etc. Adulthood: In this phase, HR manager or leader should formulated structure of roles so
that unity within team can be observed.
 Maturity: In this process, performance enhance as the group become clearer regarding
their objectives and duties.
TASK 2
Critical analysis of selection and recruitment in link to strategic human resources initiatives
Recruitment and selection process is very essential of the human resource department
(Burgoyne, 2012). In this activity, they HRM plays as an important role to hiring person either
externally or internally, who achieve the long term goals and objectives of company. This
process is usually identify as a sound and legal technically. The human resource of NANDOS
takes the duties and roles of searching knowledgable and talented candidates, who meets some
criteria of firm. In order to encourage candidates, company follows internal and external methods
of recruitment. Both approaches are essential for the organisation to attract pool of the prospects
for the vacant position. They also provides online recruitment system to the person who are
interested for the empty post in the company. In this process all applier can submits their
curriculum vitae by online activity.
NANDOS apply online recruitment process which is essential and valuable for the
company in order to attract million candidates (Caza and et. al., 2010). It is beneficial for the
restaurant to save their time, decreed the hiring cost, Easily access to workers etc. So it is a main
reason behind applying this process. This process includes different steps which are described as
below:
Listing Jobs on organisation Websites: In this process company introduce their job
position in own websites. So in this job applier can give their all documents on business sites. So
it is beneficial for the organisation to save their hiring cost and attract large number of the
candidates who are interested for this job.

Posting jobs online: It is also main step which is follow by the enterprise to recruiting
knowledgable and skilled candidates with the help of online process. In this company used
different sides such as niche and Monster sites like MediaBistro.
Using LinkedIn: In this process, NANDOS may post their vacant position on
professional and LinkedIn site. In this business entity may be analysis candidates to hiring best
person (Coff and Kryscynski, 2011). It is also beneficial for the enterprise to save their recruit
cost.
Social recruiting: In current scenario, large number of the business are using social
hiring to source applicants for job on Twitter, Facebook and other sites. NANDOS use Facebook
apps in order to recruit best one from pool of applicants.
Job application process: In this activity, all information, related to recruitment and
selection are done. Under this data, including getting and interviewing a job offer, cover and
resume letters, references checks, background, applicant testing and other information.
Interview process: It is identify as a process for asking and telling some questions in a
systematic manner. In this manager of the company ask various questions about candidates
background, education etc.
Hiring Process: It is known as last activity for recruiting knowledgable and skilled
candidates who meet several criteria of business as well as achieve long term goals and
objectives of them. This process including, employment testing, job offers, background checks
and other essential information.
Recommendation: Business entity can follows proper selection and recruitment activity which is
described as below:
Promotion: It is very essential for the company to encourage their workers at higher level
which is mainly based on employees performance in employment. NANDOS can motivate their
workforce to another job which promote them in order to perform all task in better way
(Dalakoura, 2010). It is also improve their future performance, skills and knowledgable.
Provide training and development program: Company should give better training to
their staff members where they easily increase its basic skills. In this business should tries to
emphasis on real work of restaurant staff so that they can acquire new skills and activities in their
job.

Effective use of social media platform: Since the company is already using social medial
channel in order to stimulate the interest of people towards their vacant position. But, they not
effectively using it as they are not frequently updating about current opening on such sites. Thus,
NANDOS is recommended to effectively use digital media platform and create their own page
that depicts current vacancy.
Use internal and external approach of recruitment: Both methods are essential for the
business, so they should use this approach in order to achieving desired goals and objectives
(Dimov, 2010). This aspects includes different points, such as questionnaires, advertisement,
campus recruitment, etc.
TASK 3
Discuss different Approaches to HRD and their area for improvement
Human resource development identify as a framework of enterprise for assisting workers
to develop their individual and organisational abilities, knowledge and skills. HRD includes
different opportunities such as employee training, career development, tuition assistance,
mentoring, coaching, succession planing etc.
Approaches to the HRD: There are different approaches of human resource development
which is follows by NANDOS in their business operation and functions. Focusing on keeping
their workers fulfilment so that they get business goals. NANDOS hire person on daily basis,
and spend approx 30% revenue for workers. All these methods are described as below:
Strategic human resource framework approach: It is one of the main and essential
approach of the business entity in order to increase capabilities and practices of organisation.
Strategic direction of HR mainly emphasis on be influencing for the person for the all house and
company (Gates and Langevin, 2010). In this, business strategy, HRD practices and
organisational ability are main components for the company to achieve objectives and targets of
company.
Integrative Framework: With the use of this framework business determined three ways
through which human resource development practices can engage to company performance. It is
important activity of NANDOS to building their capabilities, enhancing employee satisfaction,
shaping clients and employees satisfaction. This aspects focusing the all HRD system by taking
innovative practices and plans.

Human capital appraisal approach: This aspects includes mainly 5 phases in
administration of Human capital including, clarification, assessment, Design, implementation
and monitoring stage. Business organisation use this approach for providing different benefits
such as recruitment, retention, rewards and performance management, career development,
succession training & planning, organisational structure and human capital enablers. All these
stage are important for the company in order to retaining human capital with the area of HCM to
ensure that all field which are acceptable to respective strategies.
PCMM approach: It is known as People Capability Maturity Model, main aim of
company using this approach is to give accurate guidance and direction to enhance the
organisation ability (Guest, 2011). It is also very essential for the business entity to attract,
organise, develop, retain, and motivate the person about their work and performance. This model
states that business enhances practices of management through defined, repeatable, initial,
optimising and handled ground of maturity.
Integrated System approach: It is effective and essential approach of the HRD to
implement and design perfect system of HRD at workplace. This strategy mainly focusing on
achieving business objectives and providing higher satisfaction of workers.
HRD score card Approach: This approach give a link between business targets and
human resource operations. It is identify that HRD make accurate impact on business that should
be developed in form of HRD competencies, system, business and culture linkages. Manager of
the NANDOS use a human resource scorecard in order to evaluate functions of HR in an
efficiency and effective manner (Gutiérrez, Hilborn and Defeo, 2011). It is also important for the
administrator to producing workers behaviour which assist in attaining the business's strategic
goals.
Scope of improvement: There are many improvement scope for the company to establish
new policies and plan in order to enlarge their business operation. NANDOS provides different
facilities and products to the customers in order to fulfil satisfaction level of employees in an
effective manner. They plan an effective policies in respect to all person who are working in the
restaurant and attain long term objectives of company.
There are different scope to improve business performance such as promotion, job
rotation, understudy, Mentoring, and task evaluation. All these are also essential approach to
improve growth and success of employees. Promotion is very essential tool in providing better

satisfaction towards achievement of business goals. Another is job rotation, it is also essential for
doing all tasks and projects of company in limited time period. With the use of this technique,
company train their workers towards making long relation with business.
TASK 4
Classical theories of motivation
Employees are main component in any company. To make company stepping upward
company have to take care of its employees so that they can get motivation to work with more
confidence (Jiang and et. al., 2012). Motivated employees give good performance and try to
enhance image of NONDOS.
Theory X and Theory Y: In the words of Douglas McGregor, as per this theory personnel
company is divided in two sections. They are X and Y. Theory X states that these people does
not to work as per saying of management. They does not like to take responsibility. Hence to
make them working management of company use punishment as their substitute. Theory Y says
that personnel under this category are aware of their task and responsibilities. Management of
NONDOS has to decide which employee will categories under what group.
Hierarchy of Needs: This theory is also need as Maslow's need hierarchy theory. In this
technique there are five stages which employee want to satisfy. If these needs gets satisfied they
got satisfaction and they work with more energy. It starts from bottom where physiological needs
is present. It include basic need of human being i.e. clothes, food and shelter. Above it safety
need is present it means employee should feel secure about job. If employee get feeling of
security there is no fear in mind so it help in good quality work. At third level feelings of
belongingness, that states employees does not only work for money. There should be feeling of
love and affection (Ling and Jaw, 2011). At fourth level Esteem need is categorised. It means
feeling of respect at work place. At last self actualisation is present. This is utmost and highest
level of satisfaction.
Equity Theory: This theory is stated by John Stacey in 1960. As per this theory, there is
equal weightage in what they perform and the outcome of it. There is direct relation between
efforts given and what they are getting from it. If performance of employees is good then reward
will also provided to them. This process is beneficial for company as well as staff. This increases
morale of employees and there is feeling of equality in NOMDOS.

Hawthorne Effect: Hawthorne Effect theory of motivation was developed by Henry A.
Landsberger in 1950. This theory states that regular check should be done over performance of
employees. This examination works as motivation for employees, hence they will perform their
best to be in good books. Individual will get reward as per their performance . This creates the
feelings of competition in organisation and ultimately this will increase productivity of
organisation (Luthans and et. al., 2010). Hawthrone theory talks about main six aspects. They
are: Psychological contract, communication, socialise, group activity, recognition, workers
interest. These factors plays vital role in motivating employee in NONDOS.
Proposing Hybrid Theory for NANDOS:
Hybrid means combination of different types of theories. Which are provided by different
authors to provide guidelines how to motivate employees. Any organisation cannot apply single
theory for all personnel. Hence organisation can use different theories to motivate employee and
increase productivity and consumer satisfaction. NANDOS deal in hospitality sector hence they
have to give quality to their product and services. Motivation will help in providing long term
relations with customer. Employees are the main part in hotel industry. They have to deliver best
services to customer so that there is good image in society, this will generate revenue for
company. Satisfied employee will try to achieve organisational goal, with which their own
objectives are too satisfied. Different personality have different ways through which they get
motivated.
Equity theory will help in generating equality and feeling of competition among
personnel in organisation (Makri and Scandura , 2010). In Theory X Theory Y there is reward as
per behaviour of employee. There is concept of reward ans well as punishment. Maslow theory
tells about different stages of satisfaction, if they get satisfied individual will work with more
dedication. NANDOS will be beneficial if they apply different theories as per characteristics of
employee. This will help in motivating employee and provide good services and product. Also
beneficial for enhancing their business unit and employee retention as well.
TASK 5
Recommendation to the business discuss the characteristics of effective leaders
There are lots of companies who have efficient leaders. These managers have capabilities
to gain competitive advantage and these are persons who are liable for firm's success. But some