Human Capital Management and its importance in the present scenario.

1. Human Capital Management
By
Sandeep C

2. Human Capital Management:

Personal Management is the part of
management concerned with people at work
and relationship with an enterprise.
Human resources management is to obtain
the greatest Benefit from the employees
ability and the employees obtain material &
psychological rewards from their work.

3. We deal with……………..
 Human Resources
 Job Analysis
Planning.
& Design.
Recruitment & Selection.

Training & Development.

Compensation & benefits.
Employee Relations.
Motivation & Change
Strategic HRM.
Management.

4. Human Resources Planning.

Is the process of Identifying, Quantifying
current & future people resources needs.

It should also reveal deficiencies and
limitations in an organization's human
resources competencies and capacity.

5. Contd.
 Analysis
of Existing staff.
 Forecasting
of HR future needs over a defined
timescales.
A
forecasts of actual staffing needs to achieve
organisational ambitions ‘’The Demand Forecast”
 To
meet supply & demand, an integrated action
plan is prepared.
An
HRIS (Human Resources Information
System) provides insight of internal supply of
manpower.

6. Job Analysis & Design.

Importance: It becomes a basis for –Performance
Appraisal, Training, Reward Systems, Staff
Development, work design.

Skills needed to perform.

Qualification requirement.

Physical & Social environment, contact inside and
outside the organization.

Future prospects.

7. Template:
• Minimum wage=
pressure on the
relationship
• Inflation
• Economic Growth

8. Recruitment & Selection.

Is the process of getting new people to the
organisation.

Selection: Identifying a particular person to fill a
particular post from either within or outside the
organisation.

Benefits of Recruiting from Inside organisation:
Captialises on past investments in current
employees, rewards the employee, ease of
communication at all levels.

HRIS and Use of Intranet.

9. Contd..

Cost of Recruitment per employee (RC)
RC = AC + AF + RB + NS + SI + IM + TC + S&B + OPT
the post
H
Consider Country specific recruitment and the law.
Contracts of Employment. (Implied terms).
Selection: Validity + Reliability + Acceptability.
x Time to fill

10. Contd.

Use of GRAPHOLOGY. (Used mostly in France, UK
and US) analyzing candidates character by his
handwriting.

Use of METAPHYSICS (Used mostly in China)
analyzing candidates character by his appearance.

11. Training & Development.

To foster learning among its members
Development is the effort oriented towards
broadening an individuals knowledge and skills.

Need Assessment

Programme design

Implementation

Evaluation.


12. Compensation & Benefits.

Pay – Pay Structure = Pay level + Job Structure.

A person ratio = (Perceived outcomes like pay,
benefits etc) against (Perceived inputs like
Education, effort, experience).

Linking pay to performance: The Rationale
approach.
Employee benefits = Mandated benefits (social
security, medical treatment, unemployment
compensation).
Non Mandated benefits (health plans, private pension
plans, Training and development etc.)


13. Employee Relations

Adversarial, Traditional, Partnership, Power Sharing.

Physcological Contract:

It is between employer & employee concerns the
assumptions, expectations, promises and mutual
obligations between an organization and its
employees.

Happy Staff = Happy client/customers,

Happy Customers/Client = Happy Shareholders/
Revenue.

14. Motivation.

Influencing motivation = Great Company (brand),
Great Job, Compensation & lifestyle.
* Maslow –Hierarchy of Needs.
……
* Herzberg – Hygiene Factors.
‘’Adam’’ Theory of needing to avoid physical
deprivation.
‘’ Abraham” Theory – the need for man to realise his
human potential for perfection.

16. Performance Measurement.

Psychological & Personality Traits.

Organisational based behavior in the work place.

Results against Key Performance Indicators.

Self evaluation, Peer Evaluation, Subordinate
Evaluation, Superior evaluation, customer
evaluation.

Combination of all these is called – 360 degree
feedback.

17. Change Management.

LEWIN 3 step approach to change.

Unfreezing – preparing for the needed change.

Changing - Moving to a new level by introducing planned
changes.

Refreezing – Making the change permanent, re-stabilise the
new situation.
The change may be influenced by External / Internal.
Breaking through the Change is called G & C effect –
Glass & Ceiling effect.

18. Strategic HRM

Integrating …….








Staffing, Staff development, Staff Welfare.
Staff appraisal.
Performance Management.
Compensation.
Training.
Promotion.
Work Systems.
Recruiting, Recognition and Reward.

19. Influence of Japanese Management on HR thinking
(1980s)
Length of
Employmen
t
Career path
Promotion
Appraisal
Decision
making
Responsibility for
Decision
outcome
Theory J
Theory Z
lifetime
Progression
and exposure
to many areas
Theory A
short
long
Specialised
In chosen
area
Slow
Rapid
oyalty Slow P___________
erformance
L_______
?
Consensus
Individual
By many
collective
Walfare benefits Many
Less
specialised
Than A
individual
Few
Consensu
s
By many
?

20. An HRIS software

22. Blue Ocean!!!

23. New York Police Department :
Blue Ocean Thinking
Strategic Challenge: How to beat crime?
Think out of the box!!!

24. {RE: Skinner: Reward and Punishment
immediate}

25. What kind of staff?
WAKE UP!!!!!

26. Active teamwork, creative,
committed
[Harvard 4 Cs ?]

27. Thank you