Managing Human Capital And Leadership
In a business organisation, human capital is an essential element which is being used to attain certain objectives in marketplace. Human capital is power house of company which provide certain support for conduction of operations (Birasnav, 2014). In simple words, it can be stated as process to stock of knowledge, habits, social and attributes of personality, including creativity in order to produce economic values. This kind of process is directly associated to Human Resources as managing the human capital is their main role. Besides this, recruiting effective employees who have certain skills and capabilities for providing guidance and be better leaders. In this report, company chosen is Nandos which is an international company who mainly deals in international dining restaurant in Malta, South Africa. They mainly deal in Peri-Peri Chicken and other food items to the customers at very reasonable cost. There are certain things which are being discussed like approaches and model of business which is highly related to strategic HR initiatives. Moreover, classic motivational theory is being used for identify the elements of motivation within employees so that effective attaining of tasks can be obtained.
Relevant models, approach of the Nandos to the management of its human resources:-
NANDO'S is very famous Restaurant dominating British food sector with global sales with global sales cater their market in food sector (Birasnav, Rangnekar and Dalpati, 2011). It is incorporated in 1987 with the help of two friend named Robin Brozin and son of Fernando duarte who live in south Africa. Under this restaurant 57% male and 43% female working and people believes that nandocas the one who make difference. HR of this restaurant give a statement that people want to value organisation they work for and be valued in return.
Relevant models of HRM which is best suited to organisation:-
Under this model company HR try to manage the development and training activities because from these activities the employee of the restaurant familiar with the work culture of organisation (Bounfour and Edvinsson, 2012). At NANDO'S they value their people, so they want performance review once a year and they also discuss from employee the career advancement once in every 12 months. Through various workshop, food feast competition the performance of whole management improved because of getting high level kitchen training. The main objective behind it is to ensure the performance of whole management is improved through learning development.
HRM policies decision:-
An organisation will success only when whole HRM team make those strategic policies that ensure good, energetic , knowledgable punctual and discipline environment. Policies made in Nandos is according to the mission is to become world famous and quality Mozambiquan/Portuguees themed restaurant. So recruitment, selection and training is done according to objectives. The main goal behind it to ensure by HR that the actual environment is according to strategic policies made by top level mangers (Boxall and Purcell, 2011).
This model of HRM discuss about all the outcome that come from value the organisation given to its employees. Nandos HRM director say that people want to value organisation they work for and be valued in return and this statement really applied in this organisation where the policies are made concerning individual needs at the time of working with the learning and development department. Because good outcome reflect high job performance, problem solving, successful change at the implementing modern kitchen style, satisfaction of needs leads to low turnover and higher productivity (Bratton and Gold, 2012).
HRM has to concern all the situational factors regarding training appraising, compensation, employees and attending to labour relation, health and safety and fairness concern. Although NANDO'S focus is given long term training for the purpose of putting efforts of employees at right direction. Product training in order to acknowledge worker about culture of organisation, providing development opportunity for career advancement, HR session in order to improve staff relations and lastly focus on the health safety of workers at the time working in various workshops.
Approaches of HRM in NANDOS for effective management:-
An organisation is effective only when HRM approaches is good, Knowledgeable and according to the work culture of organisation:-
Recruitment and selection:-
Recruiting and selection staffing comprises of organisational human resource, skill, abilities and experiences of people be transferred, recruited and laid off help in selecting individuals in each case. In NANDO'S peel feel rewarded why appreciated for their performance (Buller and McEvoy, 2012). Moreover, they offered high wages which is more than normal wage policy which direct their concern that who much they valued their employee. They use internal external method to identify suitable candidate for vacant post. It has 30 restaurant which acknowledge ongoing recruitment of NANDO'S which provide employment opportunity every year.
Management Development and training:-
In this method various things consider like long term training, product training, skill enhancement program, on the job off the job training and specific competence training program. At NANDO'S they offer professional training programs to all the people that involves training on the shop-floor attending workshops. The company prepare employees for present job and develop them for future projects. The first three months of working for NANDO trainee is to learn basic management skills, and they are supported by NANDO'S legends as well as NANDOCAS working in L&D department (Burgoyne, 2012). Success of NANDO employee depend to current position in which they presently work. other issue that focuses in international HR planning are as follows:
- Identifying to management potential early
- Providing development opportunities
- Identifying critical international factors that affect the business decision
- Tying strategic business planning to HR planning and vice versa
Company usually adopt monetary and non monetary policy in order to motivate the working employees. They feel rewarded when they appreciate for good performance. Compensation policy in NANDOS decided by HR manger on the basis overall execution that employee contributed during the whole year. Today main focus is given on understanding the effects of wages and employment security on labour cost and strengthening the link between pay and performance. Under this company aside from free meal it also offered 20% discount to their staff and main objective behind it to establish loyal workforce at affordable work force (Coff and Kryscynski, 2011).
Impact of recruitment and selection influencing human resource initiatives
Recruitment is the process of selecting the qualified applicants among the pool of people. Company encourages all people to apply for job It is a positive process and hires the individuals who are competent. Through it Nando company can recruit all qualified employees, they can increase their manpower. Firm can develop their members and they can work efficiently and effectively. Through it company can perform better (Guest, 2011).
Selection is a process which helps in selecting candidates who have required qualification and abilities for occupying the job position. It is a negative process as it is selects only competent employees and eliminates the people who do not have prescribed qualification required in the job. Nando Company through selection process can select good and educated people. This helps the firm in performing better and it increases the productivity .
Recruitment and selection process of Nando's company-
Nando company is recruiting employees both through internal and external sources. In U.K there are 30 eating houses through which enlisting of employees are done with use of both sources. Human resource searches for Nandocas who work under the company. They go to the Patrao who are the managing director or general manager of the firm and they guide them in their work. Through the good trademark, name and fame of firm there can be future references.
Company's motivates and encourage people to come in the group. In central support level(Head office) and in different eating houses there are vacant positions for cashier, griller regions. Individuals can fill these positions. Firm has to evaluate applications of local people as it wants to give local taste to customers through opening of various restaurants.
Nando's are recruiting through their online worldwide source. In various sites of firm there is information of different places and regions in U.K who have vacant positions (Gutiérrez, Hilborn and Defeo, 2011). Company also works with different partners all over country and they helps in hiring many individuals. People can send their CV which helps the firm in scrutiny process. So, many respondents can easily give their application through this source. After the recruitment process participants who are selected they are known as Nandocas. They are to be hired as full time or permanent positions.
Company follows a fair and equal approach in its recruitment as it gives equal opportunities to everyone in applying for jobs in various areas and regions by giving information on websites. Through it people all over the country can apply for position. Firm also saves the hiring cost and time. It increases the efficiency of administration in selecting the people all over the country (Jiang and et. al., 2012).
Training and development-
Training is the process of increasing the skills and opportunities of individuals so that they can perform better. Without proper training procedure it gives negative impact on human resource recruitment. Company tries to focus on current work of employees so that they can learn new activities and skills in their new job. This motivates them to perform better.
Three months training programme and self development workshops are developed for the members. It increases the skills,abilities of workers and employees can recognize their potential in performing the job. Thus it helps them in creating heir plans and strategies for the future work.
Nando's compensation system activities and procedures to give wages,salaries ,bonus incentives and reward system are according to education,skills and abilities of an individual. Company mentions this in their online websites and gives information to the people (Leitch, McMullan and Harrison, 2013). So respondents can have knowledge of their salary structure which motivates people in applying for the jobs. Thus it results in receiving many applications of people.
Recommendations- Company can follow adequate recruitment and selection process which is mentioned below-
- Promotion- It is a process in which person is promoted to higher level based on the performance in job. Nando can promotes their employees to other position which motivates them to perform better. This also enhance their knowledge,skills and future performance.
- Transfers- Nando can shift one employee from one job to another in different division of the company. This helps the company in the saving their recruitment cost, time and they can focus on other activities and procedures related to the hiring of applicants (Lengnick-Hall, Beck and Lengnick-Hall, 2011).
- Former employees- Former individuals of staff who had left job earlier can be recruited on basis of past performance. Call systems can be followed in hiring them. Previous workers can perform more efficiently and effectively in the organization as they know company's activities, processes and environment.
- Campus placements- Nando can select students from the different schools and colleges. This motivates them in performing better with using their skills and abilities. Through it they can get qualified and competent employees in the organization.
- Press advertisements- Nando can give advertisements in television. This helps them in reaching more people and in recruiting many applicants. It benefits the company as it can reach to many individuals within and outside the country (Mahsud, Yukl and Prussia, 2011).
- Walk in interviews- Company can also organize walk in interview as it can give chance to every individual to show their skills. This motivates all participants and they can also give referrals to their friends and relatives. Through this Nando can receive more applicants and it helps in recruiting more employees.
Approaches of HRD used by Nando's :
In this organisation there are regular requirement of personnel as business focuses on expanding their company. Hence there is demand of employees. There run business at large scale. They open new outlets so thy shift old staff to those places so that they can mange their easily. Nando's wants to deliver their best services with this view they take care of their employees interest as well. They have view that if employees are satisfied than they will work with more diligence (Mendenhall, and et. al., 2017).
They emphasis on keeping their employees satisfied so that they can company's goal get satisfied. Nando's recruit people on regular basis. They spent 30% of their revenue for employees. Around 25% recruitments are within the company. If there is increase in their profit percentage proportionately they increase employees welfare programmes. They promote employees so that they also get satisfaction as their career is growing.
While starting any job recruitment is important task which has to be accomplish. Before recruitment there is requirement to see how much is requirement of organisation. Nando company needs to invest money and time for recruitment and selection. So those options should be opted by the company which proves to be fruitful (Ployhart and Moliterno, 2011).
Nando company train their personnel for new job responsibility. They provide training through following methods:
- Promotion: Nando organisation mostly use this approach to give feeling of career growth to employees as well. Promotion is done when someone is good at his work and able to serve if he get posted to some higher position. In promotion individual's salary and post both get uplifted. Decision of promotion is very sensitive. This judgement is publically out only when management of the company checked all the aspects. Management of the Nando organisation want to keep long relations with their employees as they want to upliftment their employees to top level management. Hence promotion is very effective technique in this regard (Ployhart, Van Iddekinge and MacKenzie, 2011).
- Job rotation: Job rotation means one person is shifted temporarily with the other person. This is done with the post of same level. There are benefits of doing so. Firstly individual gets knowledge of different sections in the company. This helps in giving view about the overall working of In the view of organisation, if someone is leaving the organisation or remain absent then company need not to suffer. In addition to this company can cross check the working of different individuals. Nandu can train their employees through this technique. This is cheap and time is absorbed for conducting some activities related to business.
- Understudy: Nando deals in hospitality sector. There are few things that can be learned by watching their senior doing things (Varma, 2013). In this senior shows how to complete the task. In this the trainee does not get the chance to apply that knowledge hand to hand. Senior tells about the hurdles creates at the time of completing the operation.
- Mentoring: This is very good method to train new joining in the Nandu organisation. Under this old and existing employees train new joinees. Freshers work as per the guidance of old personnel. The person under whom train is provided is known as mentor. There is regular contact between trainee and mentor. Through mentoring mentor get feeling of promoted and organisation saves the cost of external trainer. Hence this method is beneficial for company as well as employee. This provides practical knowledge while learning. In this employees apply the learnedness to their job.
Only training, recruitment, selection is not the task of the HR department of Nando (Wright and McMahan, 2011).
Evaluation of task perform: Nando company deals in hotel industry, to make organisation growing company they have to add value to their product and services. This attracts the consumer. So training of existing employees is also important task for them. They has to evaluate whether the training is fruitful or not, which method is more effective for the employees. There is requirement of training to new as well as existing employees. Training is a time consuming and costly process. It should be fruitful if it revert back to the organisation. Nando organisation works not only to satisfy customer but they emphasis more to uplift employees. They have thought that satisfied employees gives his/ her best. They prefer that there employee gets over all development of their personality. There should be feedback of training programme and performance should be checked so that there is fear in the mind employees that they get examined.
Scope of improvement: There is always scope of improvement whether its about person or company (Birasnav, 2014). Nando give emphasis on each and every individual. They plan policies in regard to every individual this may lead to loose concentration on other important aspect of organisation. Nando will try to focus more on their five important belief i.e. pride, bravery, unity, passion and sense of household. This give provide increase in goodwill of company. Company should equally give emphasis to out sourcing as well.
Classical theories of motivation
When employees are demotivated, company often face low productivity and profitability and thus high turnover rates are being applied. There are various theories which can be applied for motivation of workers and thus enhance the rate of retention and improve worker productivity and below are described theories:
- Theory X and Theory Y:According to Douglas McGregor, there are two theories which are related highly to employee motivation and management and this theory has been further divided into two parts (Birasnav, Rangnekar and Dalpati, 2011). The main focus of theory X is on avoiding work and dislike responsibility and thus to motivate them rules and punishments needs to be enforced. Theory Y mainly focuses on control the ethical environment within workplace. So it is the duty of an employer to provide platform of opportunities for employees so that they can get motivated and perform in high manner.
- Hierarchy of Needs:There are five levels which are being suggested by Maslow and that has been done through providing a pyramid of needs to make sure that needs of employees are being met. At the bottom there is physiological needs like food, shelter, clothes and others. At the second level safety is present for securing lifestyle and at third belonging is being utilised. In simple words, every stage of the pyramid suggests that motivation can be provided by various channels to an individual so that expected outcomes can be achieved (Bounfour and Edvinsson, 2012).
- Equity Theory:According to the John Stacey, this theory is being applied in order to motivate when they work in workplace to be fair and unmotivated when treatment is perceived to be unfair. In an organisation, this process is highly beneficial for employees because for good work they are being appreciated and thus bonus and rewards are being given. This in turn helps out in boosting up the morale level of employees and high level of performance is being set as perception within staff members.
- Hawthorne Effect:Elton Mayo developed this kind of theory and in this measurement is being done along with the studies on employees. This kind of monitoring makes employee work in better manner and thus an indirect boost can be provided to performance level of an employee so that aims and objectives can be attained in effective and effectual manner (Boxall and Purcell, 2011).
Proposing Hybrid Theory for Nandos:
Hybrid theory is basically combination of various kinds of theory in which the various authors give their point of view and those are put in single shell and thus applied to an organisation in order to motivate employees and create competitive advantage. This kind of theory is being applied in Nandos for giving unique and long lasting services and taste to customer which they can not forget and thus bond is created. This will create practical value within Nandos so that motivation can be provided for employees working. Motivation from various point of views needs dynamic skills so that work can be done within time allocated. Applying an hybrid theory is much more beneficial then applying other single theories because the single theories will open the gateways of criticism which will certainly hamper the work. Hybrid theory has all those essential features which are the speciality of all theories which are stated above (Bratton and Gold, 2012). Highlighting all the characteristics of various theories and extracting them into nut shell and the applying in company is the process of Hybrid theory. Certain features which can be undertaken from the above mentioned theories like in theory X and Y can have element of monitoring the performance level and thus providing them appreciation according to that and also creating ethical environment is what they believe in. apart from that major element which can be taken from Maslow theory is that actual needs and wants of employee should be fulfilled so that their morale level can be boosted. Two other theories have essential element like providing tools and techniques which can directly or indirectly affect the performance level of an employee in positive manner.
So it can be stated that hybrid theory can be applied by Nandos so that their employees can provide better taste and services to customers which can in turn help them to attain growth and success (Buller and McEvoy, 2012).
Characteristics of effective leaders
Many of the companies have ineffective leaders while some of them are mediocre leaders who can get the job done and some of the companies have effective and successful leaders who help companies to become competitive in marketplace. There are some effective qualities which are should be possessed by every leader and those are described below:
- Personable: There are few leaders who became successful in bringing people together without talking or listening to the people around them. A leader should have quality of talking with his team members on personal level so that personal grudges can be solved out. Leaders who have become successful businessman often listen to the concern of employees and try to bring effective resolution so that better performance level can be observed. In every kind of an organisation, employees prefer the manager who is understanding and have friendly nature with every staff members (Burgoyne, 2012).
- Visionary: Every leader who is successful and highly experienced knows the ways through which they can attain the objectives. They have a vision in mind and thus they focus onto that until it is being attained by various tools and techniques. By doing so, unity within workplace can be explained regarding the ways through which it can be done.
- Motivational: This kind of element which should be present in every effective leader so that motivation can be provided within employees and thus aims and objectives can be attained in effective and efficient manner. It is known by a leader that he\she can not attain the mission and vision without workforce so equality should be given to every kind of employee (Coff and Kryscynski, 2011). This needs to be ensured by managers that all the members of his team should know exactly what are impacts of their actions in order to attain the goals. There are various tools and techniques which can be utilised like promotions, rewards and other contribution and keeps the process of enhancing.
- Becoming an effective leader: There are various number of people who are born with qualities of being an effective leader but that does not mean that they know how to take the benefits of those kind of qualities. Experience and growth occurs from making mistake to taking risks and failing. With the time passes they come to know about the ways through which leadership strategies will work and thus by gaining experience they become better then before. For example: Nandos employee made a experiment with a dish but that failed badly and did not receive good feedbacks so that can lead to low morale and thus learning can be taken from those mistakes (Guest, 2011).
Model of Leadership:
(Source: Leadership Model, 2017)
- Leading Self: In this kind of stage there are various elements which are being present within model of leadership and those can be stated as features of growing leader like personal strengths and effective communication skills. While growing into effective leaders there are areas which needs to be developed so that performance level can be improved and competencies can be created among leaders (Gutiérrez, Hilborn and Defeo, 2011).
- Leading Others: This is one of the most essential element which can be used to provide effective guidelines to team members in order to attain the objectives. It is highly essential for a leader to maintain the ethical styles of leadership while leading group of people. There are various elements which can be used in this are like collaboration and providing coaching and training.
- Leading with Conviction: This kind of stage is highly essential for an organisation and specially to a leader because this stage tells the pros and cons which needs to be improved. This can be done by taking feedbacks and working on them. Apart from that flexibility should be present so that changes can be adopted while the development is taking place.
- Leading your organisation: This is basically attaining the aims and objectives of the firm by completing the tasks and activities in better manner (Jiang and et. al., 2012).
From the above report, it can be concluded that effective leadership is highly required by an organisation. For a company like Nandos it is highly required to have effective human capital so that they can attain certain objectives of firm. It is highly essential to maintain the effectivity so that competitive advantage can be acquired. Apart from that there are certain things which are being discussed in this report like ethical qualities of leadership and applying classical and hybrid theory of motivation so that high performance work can be obtained so that goals of firm can be attained in effective and efficient manner.
Books and Journals:
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.
Bounfour, A. and Edvinsson, L., 2012. Intellectual capital for communities. Routledge.
Boxall, P. and Purcell, J., 2011. Strategy and human resource management. Palgrave Macmillan.
Bratton, J. and Gold, J., 2012. Human resource management: theory and practice. Palgrave Macmillan.
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.
Burgoyne, J., 2012. Management learning. In Encyclopedia of the Sciences of Learning. pp. 2090-2092. Springer US.
Coff, R. and Kryscynski, D., 2011. Invited editorial: Drilling for micro-foundations of human capital–based competitive advantages. Journal of Management. 37(5). pp.1429-1443.
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.
Leitch, C. M., McMullan, C. and Harrison, R. T., 2013. The development of entrepreneurial leadership: The role of human, social and institutional capital. British Journal of Management. 24(3). pp.347-366.
Lengnick-Hall, C. A., Beck, T. E. and Lengnick-Hall, M. L., 2011. Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review. 21(3). pp.243-255.
Mahsud, R., Yukl, G. and Prussia, G. E., 2011. Human capital, efficiency, and innovative adaptation as strategic determinants of firm performance. Journal of Leadership & Organizational Studies. 18(2). pp.229-246.
Mendenhall, and et. al., 2017. Global leadership: Research, practice, and development. Routledge.
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.
Ployhart, R. E., Van Iddekinge, C. H. and MacKenzie, W. I., 2011. Acquiring and developing human capital in service contexts: The interconnectedness of human capital resources. Academy of management journal. 54(2). pp.353-368.
Varma, A., 2013. Managing human resources in Asia-Pacific (Vol. 20). Routledge.
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.