Managing Human Capital And Leadership 2nd Assignment Sample

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Managing Human Capital And Leadership


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.


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.


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.


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 â€" 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.


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, 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 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.


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.


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 â€" 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 â€" 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 â€" 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 â€" 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 â€" 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).


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 â€" 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 â€" 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 â€" 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


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 only they will be able to guide the employees in most effective manner. If an organisation is successful in market then the main reason behind it can be leadership (Ployhart and Moliterno, 2011). So, NANDO'S is also required to have a good and efficient leader who are having good calibre and knowledge which can be used by them to train the staff members. There are some characteristics that a leader must posses, they are:-

  • Personable â€" A leader is required to have an open nature so that all the employees can come and talk to them without any kind of hesitation. If they will behave nice;y to employees then they will also feel free to share all their issues with the leader. This will also make the work environment happy as all the employees are satisfied with the treatment they are getting in work environment.
  • Visionary â€" A leader is always required to have a future vision because then only they will be able to train and guide the employees in a proper manner. Vision is very important because then only they can prepare the employees to face any kind of situation in future. These vision only give strength to employees to work day and night so as to give good results to the company.
  • Motivational â€" If the employee is motivated enough then they will understand their responsibilities in the company and will behave and perform as per that only. If company's wants to achieve the goals and objectives of company then they should implement good motivational theories inside the company so that the employees feel encouraged and motivated and increases the productivity of company as well.

Model of leadership:

There are several models of leadership that are applied in various organisations so as to achieve their goals and objectives (Stevens, 2010). NANDO'S can also implement various models of leadership in their organisation so as to motivate the employees and guide them in more effective manner. These models are :-

  • Situational leadership model: As per this model, it is said that there is no perfect model that can be implemented by the leader. A leader or a manager is required to adopt a style of leadership as per the situation present in business. This is essential for every leader to make sure that they are adapting a good leadership style for the company so that the company comes out of the situation in a winning manner.
  • Contingency leadership model: As per this model, it is said that there is no best way to make good judgement and increase coordination inside the company (Wright and McMahan, 2011). Here, managers and leaders are required to use their understanding so as to solve the difficult situations present in the company.


From the above report, it can be concluded that management of human capital and leadership is very important in the company as because of this only they will be able to give good results to the company. HR managers are required to design good strategies for recruitment and selection so that only skilled and efficient employees are recruited. After recruiting them, HR manager is required to provide appropriate guidance to the employees so that they are able to perform well in the company and achieve their individual targets as well. This report discussed about various approaches of HR strategies and selection. It has also covered various models of leadership and characteristics required in a leader.


Books and Journal:

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Andrews, R. and Boyne, G. A., 2010. Capacity, leadership, and organizational performance: Testing the black box model of public management. Public Administration Review. 70(3). pp.443-454.

Birasnav, M., 2014. Knowledge management and organizational performance in the service industry: The role of transformational leadership beyond the effects of transactional leadership. Journal of Business Research. 67(8). pp.1622-1629.

Birasnav, M., Rangnekar, S. and Dalpati, A., 2011. Transformational leadership and human capital benefits: The role of knowledge management. Leadership & Organization Development Journal. 32(2). pp.106-126.

Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance: Sharpening line of sight. Human resource management review. 22(1). pp.43-56.

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Caza, A. and et. al., 2010. Psychological capital and authentic leadership: Measurement, gender, and cultural extension. Asia-Pacific Journal of Business Administration. 2(1). pp.53-70.

Coff, R. and Kryscynski, D., 2011. Invited editorial: Drilling for micro-foundations of human capitalâ€"based competitive advantages. Journal of Management. 37(5). pp.1429-1443.

Dalakoura, A., 2010. Differentiating leader and leadership development: A collective framework for leadership development. Journal of Management Development. 29(5). pp.432-441.

Dimov, D., 2010. Nascent entrepreneurs and venture emergence: Opportunity confidence, human capital, and early planning. Journal of Management Studies. 47(6). pp.1123-1153.

Gates, S. and Langevin, P., 2010. Human capital measures, strategy, and performance: HR managers' perceptions. Accounting, Auditing & Accountability Journal. 23(1). pp.111-132.

Guest, D. E., 2011. Human resource management and performance: still searching for some answers. Human resource management journal. 21(1). pp.3-13.

Gutiérrez, N. L., Hilborn, R. and Defeo, O., 2011. Leadership, social capital and incentives promote successful fisheries. Nature. 470(7334). pp.386-389.

Jiang, K. and et. al., 2012. How does human resource management influence organizational outcomes? A meta-analytic investigation of mediating mechanisms. Academy of management Journal. 55(6). pp.1264-1294.

Ling, Y. H. and Jaw, B. S., 2011. Entrepreneurial leadership, human capital management, and global competitiveness: An empirical study of Taiwanese MNCs. Journal of Chinese Human Resources Management. 2(2). pp.117-135.

Luthans, F. and et. al., 2010. The development and resulting performance impact of positive psychological capital. Human resource development quarterly. 21(1). pp.41-67.

Makri, M. and Scandura, T. A., 2010. Exploring the effects of creative CEO leadership on innovation in high-technology firms. The Leadership Quarterly. 21(1). pp.75-88.

Nyberg, A.J. And et. al., 2014. Resource-based perspectives on unit-level human capital: A review and integration. Journal of Management. 40(1). pp.316-346.

Ployhart, R. E. and Moliterno, T. P., 2011. Emergence of the human capital resource: A multilevel model. Academy of Management Review. 36(1). pp.127-150.

Stevens, R. H., 2010. Managing human capital: How to use knowledge management to transfer knowledge in today’s multi-generational workforce. International Business Research. 3(3). p.77.

Wright, P. M. and McMahan, G. C., 2011. Exploring human capital: putting ‘human’back into strategic human resource management. Human Resource Management Journal. 21(2). pp.93-104.

Zarutskie, R., 2010. The role of top management team human capital in venture capital markets: Evidence from first-time funds. Journal of Business Venturing. 25(1). pp.155-172.


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