Managing Human Capital And Leadership 4th Assignment Sample

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Introduction Of Managing Human Capital And Leadership

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Managing human capital and leadership in an organisation plays a vital role in the organisation's successful growth. The human resource and leadership practices offer different strategies to an HR professional in managing employees working efficiently within and organisation. The report will analyse the Human resource approaches and models used by Nando's for managing its employee's functions. Nandocas is an eating house that has restaurants across the UK. It specialises in poulet dishes served with herb and lemons, medium, hot or excess hot peri-peri marinades. It will evaluate the implementation of the Warwick and Guest Model of HRM within the organisation to manage employee satisfaction. The report will outline the recruitment and section process used by the firm to hire the best skilled and capable employees to serve customer satisfaction. Further, it will identify the HR professionals of business to manage employees functioning like salary and wages, performance measurement, compensation, training, recruitment etc. Thus, the report will identify the motivational theories used by the restaurant to boost employees morale and their relationship with the Hybrid theory of motivation.


HR models and approaches of Nando's for managing human resources

Nando's is the eating house and specialises in Poulet dishes offered with herbs and lemons medium, hot or excess hot peri-peri marinades. The eating house uses various Human resource management approaches to manage internal functioning as the firm's motive is to be the one service best food and best beverage services. The organisation implements the use Guest Model of HRM. The enterprise uses the model as it offers systematic functioning of Human resource functions which are as follows:

  • HRM practices: It comprises the policies and practices for training, development and recruitment (Meredith Belbin, 2011). These HR practices assist the management in delivering a safe working environment to employees as it involves labour laws, employment laws, working hours, minimum wage standards etc.
  • HRM Outcomes: With the help of this, the firm can provide a sense of commitment to its employees regarding job satisfaction. Further, HRM outcomes assist the professional in providing a flexible working environment to workers, which aims at protecting the interest of staff members.
  • Behavioural Outcomes: It is focused on developing understanding with employees, which is done by Nando's by cooperating with workers by providing them rewards and benefits to boost their morale. Understanding the behaviours and attitudes of employees is the best strategy that assists the eating house in increasing workers working efficiency (Saridakis, Lai and Cooper, 2017).
  • Performance outcomes: The ultimate responsibility of HR professionals in Eating house is to seek innovation, productivity and quality (Bamber and, 2017). In order to manage productivity and innovation, the management of Nando's is focused on regularly recruiting and training staff members. The performance of Nando's demonstrates that it spent 30 per cent of gross on employer compensation.
  • Finance: The HR professional of the eating house is responsible for maintaining the appropriate record of profits, revenue and investment. It is the foremost duty of the management to manage the flow of funds to conduct the smooth flow of business operations.

Apart from this, the functions of HR professionals of eating house are partially related to Warwick model of human resource management, which represents the inner and outer context of HR practices, HRM content and the business strategies used by the firm to improve the working efficiency of employees (Models of Human resource management, 2015). The Warwick model of HRM is as follows:

  • Outer context: In this, the policies and practices of HR professionals get influenced by changes in political, social, economic and legal factors related to the external environment of business. This comprises changes in employment law, recruitment and training legislation etc. The Eating house is focused on evaluating and implementing all the changes on time to avoid the chances of employee dissatisfaction.
  • Inner Context: Nando's HR professionals' inner function is focused on the effectiveness of organisational culture structure, leadership, task and output. This management of the eating house is focused on discovering and improving workers' inner strength and working efficiency by delivering staff a healthy and safe work environment.
  • Business strategy: In this, the Human resource professional of Nando's is focused on implementing strategies that assist the firm in accomplishing goals and objectives, keeping in mind consumer satisfaction. In this strategy, the Eating house is focused on innovative food items and services according to the consumer requirement, which is the most effective way that assists the firm in staying the needs and wants of a consumer with customer satisfaction.
  • HRM Content: This comprises all the management of employees, which assist the eating house in maintaining employees' work productivity. The content includes the flow of information, employee satisfaction, growth and internal changes in functioning according to the external environment. In the HRM content of Nando's, the HRM includes the motivation of employees, which is done by eating house by providing them rewards, paid leaves etc.

A company needs to opt for strategies that can help effectively manage the resources. Hence, to perform this function appropriately, various approaches are used by Nando's in its day to day functioning. As a result, it ultimately results in higher profits and sustainable business. Some of the approaches are:

Recruitment procedures: Administration in Nando's chooses whether they want to recruit people internally or externally. However, a balance between both categories is maintained by the personnel (Van Dierendonck and, 2016). The company has set up its worldwide online recruitment resource. Appropriate advertisement is done for the vacancy to attract the right kind of talent to the organisation. Once the individual gets hired for a particular post, in that case, he/she become a member of Nandocas.

Development training: Various types of training is organised by the management of Nando's. It includes long term training, orientation, product training, skill training, on the job training, off the job training, self-learning, management development training and specific competence training. It is considered one of the most important approaches used by Nando to maintain a set benchmark of delivering services to the stakeholders. In addition, a career development program is also organised by Nando's so that an adequate amount of opportunities can be given to the employees to enhance their existing knowledge and reach to next level of their job.

Salaries and Wages: Nando's normally positions its wages as per its rival companies' wages. Employees are considered to have a significant space, yet they add up to the organisation's operating cost as well. Hence, in that case, the overall costing helps in mapping that what portion of profits will be used by the management for extending rewards, benefits, preparation cost, training and development cost etc. Nandocas also gives a 20% price reduction card and 28 days of paid vacations to its employees. Critically analysing the fact, some employees are not satisfied by its compensation policy (Chiang, LemaÅ" ski and Birtch, 2017). In that case, giving appropriate benefits to the employees and understanding their requirements can help in a better ratio of employee retention for a longer duration.

360-degree feedback and survey procedure: feedbacks are collected from employees and customers so that continuous improvements in its offerings can be made by Nando's. It also helps in receiving various suggestions from them so that relevant changes can be made in business models. Further, the survey is considered an effective procedure at Nando's. It is easy to analyse the loopholes and take appropriate actions (Buller and McEvoy, 2016).

Hence, in that scenario, it can be assessed that the human resource management approaches followed by Nando's are effective enough. However, there are certain loopholes in its compensation plan which can be mitigated through effective planning.


Recruitment and selection about strategic human resource initiatives

There are two recruitment processes used by HR professionals of Eating house: internal and external. In accordance, it has been determined that generally, there is a vacancy at cashiers and grilled department of eating house for which the firm follows the ongoing recruitment process (Daley, 2012). Therefore, following conditions and requirements, the professional of the organisation implements the recruitment process, which is as follows:

  • First, the eating house focuses on analysing vacancy and analysing the need of workforce in particular department.
  • In this step, the firm focuses on evaluating the vacant position and its description to analyse the appropriate information about the vacant job profile.
  • The professional plans a recruitment process in which the firm derives the effective source of recruitment that is

Internal: The Nando's focuses on recruiting people from the internal department. This is called promotion and demotion (Guest, 2011). In this process, the firm aims to analyse every employee's performance, which helps in determining the working efficiency of workers. Further, the HR professional analysis the base and capable employee who can assist the firm in internal recruitment. In this Nando's promote the cable working staff which assist the organisation in boosting employee morale. On the other hand, in this process, the professional of eating house also evaluates the dead staff to clear and recruit new workforce.

External: This is the most effective way of recruiting employees as with the help of this source, the firm can hire new and more skilled and cable employees according to job requirements (Jiang and, 2012). The recruitment functioning of Nando's is focused on hiring people through external sources. The eating house believes in making innovation, and therefore it aims at hiring new employees who can assist the firm in making innovation in services. The firm focuses on recruiting worldwide talent; therefore, it focuses on online recruitment resources. The firm advertises the job vacancy on its website to attract global skilled unemployed people. Further, the professional recruits the person whom the already working employees recommend. In addition, the firm enables advertising on local media channels to attract domestic unemployed people.

  • In this, the Eating houses focused on selecting candidates who have applied for the job. For this purpose, the Nandocas selects the professional committee to analyse the best candidate according to the job specification. In this process, the professional is expertise and is the person who understands the job vacancy where the person is responsible for recognising the best skills and talent for the job. The selection process of Nando's is simple as the firm provides job opportunities to all skilled people.
  • The last step is the recruitment plan, where the company analyses the candidate's skills through practical analysis. In this, the firm aims at testing the skills and talent of people selected for recruitment (Johns, 2010). It comprises all the written sent processing, medical, physical test, communication skills, kitchen skills, and management skills. This is the major and last step of recruitment because in this after all the testing, the person is finally recruited for the specific job.

Recommendation to improve the process

Following the recruitment ans selection process of Eating house, it can be recommended that the enterprise should focus on the following factors such as:

  • Nando's can focus on adding more job details at the time of advertising.
  • The firm should use social media channels to promote awareness about job vacancies across the globe.
  • The Internet is the most effective tool for communicating with people worldwide; therefore, the firm advertises job vacancies on its official website. It can even advertise on other websites that have the most traffic.
  • The firm should make is recruitment process lenient but authentic to attract efficient employees.


Approaches to Human resource development and ways to improve.

The human resource development aim of the organisation is to recruit and place the right number of employees in the right position. In this, the enterprise ensures that there is a right number of the workforce according to skills and capabilities required for job function (Mithas, Ramasubbu and Sambamurthy, 2011). The human resource planning of Eating house is focused on the growth and development of business. The Nando's restaurant HR professionals implement the use of the following approaches that are:

Strategic HR framework approach

This approach is the business strategy that assists the management in recruiting staff and developing staff to analyse organisational capabilities to attain goals and objectives. In this, the firm is focused on training employees to enhance their working efficiency and capabilities to perform tasks as it is the most effective way for accomplishing goals on time (Gruman and Saks, 2011). In this, the enterprise implements the use of Human resource practices and policies which assist infirm in carrying out systematic training and development processes of staff members. Furthermore, in this approach, the firm ensures that the rights of employees are not exploited at any level of development because it is the factor that aid in improving the working efficiency of workers and boosting employee morale.

Integrative Framework approach

Yeung and Berman proposed this approach in 1997, which states that human resource development of the organisation is based on three practices: enhancement of organisational capabilities, serving worker satisfaction, improving customer base, and serving satisfaction by regularly analysing their needs and wants. Following this, it has been analysed that Nando's is focused on the enhancement of its services like, there were 214 eating houses in 2009 in the United Kingdom, and according to the scenario, it was determined that at that moment there was the need for 840 eating houses in twelve months. This denotes the organisation capabilities of performing satisfactory functions. However, the firm needs to grab opportunities to improve its capabilities. Further, the HR professional of Eating house is focused on serving employees satisfaction as ten enterprise offers flexible working house, a healthy and safe working environment, 28 days paid leaves annually, and follows all the ethical practices that aim to protect employees' interest. Besides, customer satisfaction is demonstrated by the increasing demand for restaurants across the UK. Therefore, following all these factors, it has been analysed that the film effectively uses the integrative framework approach.

The firm implements every possible technique to develop its workforce to increase the working efficiency of the employee in attaining organisational goals and objectives. The Development plan of Nando's involves long term training in which the professional aims at making employees determine companies vision, mission and values, which assist the firm in establishing basic working practices for workers. In this training, the firm focuses on providing basic working training required at all levels of organisational functions. In addition, the restaurant aims to provide specific product training to its employees in which the management aims to enhance the skills and capabilities of innovation companies essential food products. The company is focused on product training because the profits and reputation are based on its food products. Therefore, the staff needs to know about the basic items offered by the restaurant. The effectiveness of development training is measured with the help of 360-degree feedback. The professional sets the performance benchmark for all employees based on which performance is measured, and an appraisal are decided. It is most effective, which Nando's uses to serve employee satisfaction and increase working efficiency.

Hence, following human resource development approaches, it has been determined that the development practices of Nando's are effective and assist the enterprise in improving workers performance and understanding organisation capabilities. However, on the other, various other HR approaches can assist restaurant in its Human resource development like, the firm can implement the use of Human capital appraisal approach as in this the development functions are divided into five stages is, clarification stage where the professional of business aims at recognising opportunities and making employees understand their benefits and limitation (Terziovski, 2010). Assessment stage: In this stage, the firm analyses the organisation's development and employees. In this stage, Kando's can set measures under which the employees have to work to attain goals and objectives. Then comes the design stage, in which the firm can focus on implementing stages to attain goals. It is the best step to be implemented in the restaurant to enhance the workforce's work. The fourth is the implementation stage, where Kando's can implement strategies of developing employees like training, conferences etc. It is an effective step that assists the employees in learning more about the firm and its practices. Lastly, the monitoring stage is when the enterprise monitors employees' practices after training. It is the step that aid in evaluating the effectiveness of the development plan. Hence, following this approach, it has been denoted that the firm needs to implement various effective HRM approaches to increase employees' working efficiency and effectiveness.


The classical theories of motivation

Nando's is focused on boosting its employee's morale, and the compensation denotes it. The organisation contributes almost 30 per cent of the gross annual income of the restaurant to compensation. This assists the firm in deriving goodwill ad serving employee satisfaction. Apart from this, the enterprise has implemented the use of Maslow's theory of motivation. The firm is focused on fulfilling the basic needs of employees to improve their working efficiency (Chelladurai and Kerwin, 2017). The theory of motivation in Nando's is as follows:

  • Psychological needs: In this type of needs, the restaurant professionals are focused on fulfilling the needs of employees' needs, food by providing pantry, safe drinking water and providing care and medical aid services to protect the interest of employees.
  • Healthy and safe working environment: The firm provides safe working conditions to its all employees, and when working at a hazardous location, the company provides tools to workers who will assist the preventing accidents (Marchington and, 2016).
  • Respect: It is another factor that assists the firm in boosting employee morale there. The HR professional aims to provide similar working conditions for workers, which assist the employees in gaining respect from all colleagues, which assists the management in protecting workers' self-esteem.
  • Formal and informal relationship: Nando's aims at maintaining the formal and informal type of relationship with its employees, which assists the management in motivating employees, which aid in increasing working efficiency and productivity (Arifin, 2014).
  • Self-determination: In this, the firm focuses on providing training and development to employees who assist them in increasing their working efficiency and is beneficial in increasing their determination for work.

Hertzberg theory of motivation assists the restaurant in maintaining motivation and hygiene factors hand in hand. Moreover, it is implemented in the organisation as it is based on the positive and negative feelings of workers, which assist the firm in determining the right and wrong of the situation.

  • Motivational Factor: In this the, HR professional of the firm is focused on fulfilling the basic requirement of employees (Tyson, 2014). Moreover, in this, the restaurant aims at enhancing the analytical and working skills of employees by providing them various growth opportunities. It is the motivation technique that is beneficial in boosting employee morale.
  • Hygiene Factors: This is based on employees' monetary and monetary appreciation. In this, the firm emphasises boosting employees by rewarding them incentives, potion, bonuses etc. (Al-Tameemi, and Alshawi, 2014.) Monetary and non-monetary benefits are the most common and effective strategies which assist the Nando's in boosting workers morale and working efficiency.

Proposal of a hybrid theory that combines the most meaningful characteristics of all motivation theories

The concept of the hybrid theory states that it is important for the firm to manage the motivation of employees. However, the company does not need to manage the functioning by implementing motivation theory. Instead, the firm can use the concept of both theories that protect the interest of employees by providing them benefits and by establishing similar working conditions to boost their morale. However, on the other hand, the firm must understand the analytical view of the organisation. Then, it can focus on implementing strategies that aim t get work done by employees. Following this, the firm needs to provide good and safe working conditions to boost employee morale for working, but the firm cannot offer different types of services to every employee.


Characteristics of an effective leader and its justification.

Nando's HR manager holds the effective characteristics of leaders, which assist the firm in managing workforce functions effectively. The management needs to have leadership characteristics to manage the company's internal functioning smoothly. Further, the leader's effectiveness in Nando's is demonstrated by its clear structure. The organisation's functions are formulated systematically to avoid the chance of mismanagement and confusion, which can lead to the dissatisfaction of employees. The enterprise leader is focused on serving employees and customer satisfaction by implementing various new strategies, which is the most effective way that denotes the appropriate functioning of the organisation.

Furthermore, the ultimate motive of the restaurant is to become the only one offering the best food services across the globe, which demonstrate its determination to attain growth. Following this mission, the leader needs to manage all the employee problems at the initial level to reduce the chance of conflicts. The conflict-resolving technique of the leader demonstrates the person's communication skills, which is the most effective and necessary tool for successful business operations. Apart from this, a positive attitude and commitment towards the company's goals and objectives is another technique that denotes the leader's effectiveness.

Thus, in accordance, it can be justified that the organisational leader needs to be effective because the person is responsible for managing employee's relationships which plays a crucial role in improving the effectiveness of business operations (Burke and El-Kot, 2014). Moreover, the working efficiency of a leader is important for the business functions because it assists the firm in making a challenging assumption which is the best strategy that helps the enterprise deal with uncertainties. Leadership characteristics are the best trait for the restaurant as they assist the firm to determine profitable opportunities' ad make employees work according to terms ad conditions set by the organisation.


The report summarised HR models and approaches implemented by HR professionals of Nando's eating house to enhance the employee's working efficiency. It evaluated the firm implements the use of the Guest model and Warwick model of HRM as it comprises all the aspects of managing the workforce within the organisation. The company aims at serving employee and customer self-satisfaction, due to which it is focused on its recruitment process, wages, salary, compensation, training practices. Furthermore, the ultimate mission of the firm is to become the one and only market leader, due to which the professional implements the use of the 360-degree feedback method, which assist the firm in evaluating workers performance by setting the benchmark in context to restaurant goals ad objectives. Moreover, the report outlined the motivation theories of Maslow and Hertzberg, which are focused on boosting employees morale and are used by Nando's eating house to enhance the working spirit of employees. Finally, it evaluates the Proposal of a hybrid theory that holds the characteristics of the other two motivational theories already implemented in an organisation. Thus, the report will conclude with the effectiveness of leadership, which assist the enterprise in managing employees work and relationships.


Books and journals

Al-Tamimi, K.S.A. and Alshawi, M., 2014. The impact of organisational culture and leadership on performance improvement in Iraq. The Built and Human Environment Review, 7, pp.1-15.

Arifin, H.M., 2014. The influence of competence, motivation, and organisational culture to high school teacher job satisfaction and performance. International Education Studies, 8(1), p.38.

Bamber, G. J. and et al., 2017. HRM and workplace innovations: formulating research questions. Personnel Review. 46(7). pp.1216-1227.

Buller, P. F. and McEvoy, G. M., 2016. A model for implementing a sustainability strategy through HRM practices. Business and Society Review. 121(4). pp.465-495.

Burke, R.J. and El-Kot, G., 2014. Human resource management practices in small and medium-sized enterprises in Egypt. Journal of Transnational Management. 19(3). pp.211-226.

Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation. Human Kinetics.

Chiang, F. F., LemaÅ" ski, M. K. and Birtch, T. A., 2017. The transfer and diffusion of HRM practices within MNCs: lessons learned and future research directions. The International Journal of Human Resource Management. 28(1). pp.234-258.

Daley, D.M., 2012. Strategic human resources management. Public Personnel Management. pp.120-125.

Gruman, J.A. and Saks, A.M., 2011. Performance management and employee engagement. Human Resource Management Review. 21(2). pp.123-136.

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

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

Johns, G., 2010. Presenteeism in the workplace: A review and research agenda. Journal of Organizational Behavior. 31(4). pp.519-542.

Marchington, M., and et al., 2016. Human resource management at work. Kogan Page Publishers.

Meredith Belbin, R., 2011. Management teams: Why they succeed or fail. Human Resource Management International Digest. 19(3).

Mithas, S., Ramasubbu, N. and Sambamurthy, V., 2011. How information management capability influences firm performance. MIS quarterly. pp.237-256.

Saridakis, G., Lai, Y. and Cooper, C. L., 2017. Exploring the relationship between HRM and firm performance: A meta-analysis of longitudinal studies. Human Resource Management Review. 27(1). pp.87-96.

Terziovski, M., 2010. Innovation practice and its performance implications in small and medium enterprises (SMEs) in the manufacturing sector: a resource‐based view. Strategic Management Journal. 31(8). pp.892-902.

Tyson, S., 2014. Essentials of human resource management. Routledge.

Van Dierendonck, D. and, 2016. We link HRM Practices and Institutional Setting to Collective Turnover: An Empirical Exploration. Administrative Sciences. 6(4). p.18.


Models of Human resource management. 2015. [ONLINE]. Available through: <>.

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