Human capital management informs decisions on the issues critical to the organisations success by systematically analyzing, measuring and evaluating how people policies and practices create value. HCM is concerned with obtaining, analyzing and reporting on data that inform the direction of value-adding people management, strategic, investment and operational decisions at corporate level and at the level of front line management
2. DEFINITION:
Human Capital Management (HCM) is a strategic approach to
people management that focuses on the
knowledge, skills, abilities and capacity to develop and
innovate possessed by people in an organisation. Baron
The stock of accumulated
knowledge, skills, experience, creativity and other relevant
workforce attributes – Nalbantian et al
Human capital management is an integrated effort to manage
and develop human capabilities to achieve significantly higher
levels of performance. - Chatzkel
3. Concept of HCM
Intellectual capital
Social capital
Organisational capital
Key focus of HCM
Knowledge and insight rather than metrics and standards,
Complexity and not through cause and effect
Using best fit
Creating value
People management
Strategic partner.
4. KEY COMPONENTS OF HUMAN CAPITAL
Clarity in Direction
Clarity in human capital goals
Strategies/Policies
Implementation
Accountability
5. HCM – Organisations
Diverse knowledge base workforce
Constant change
Policies and practices are means to
improve
People are assets
No single means to measure
6. UNDERLYING FACTORS OF HCM
Leadership
Employee motivation
Training and development
Performance improvement
Pay and reward structures
7. QUEST FOR PREDICTIVE HCM’s
Varies according to company’s strategy
Direct and casuals relationships.
Increasing productivity through
recruitment – Oracle Taleo app.
8. HCM’s PERSPECTIVES
Focus on intangibles
Strategy focused on creating human capital
HR accountable
Language of people
10. Human capital transformation helps multinational
Pharmaceutical companies through Mergers.
CHALLENGES
2 MNC’S into fast mergers.
Business process redesign
SOLUTIONS
Fully integrated HR functions
Health and welfare benefits
Integrated competency model
Programs to develop and retain top employees
11. QUESTIONS
1. What are the three major characteristics of HCM strategy?
Organisation people based programs
Develop and deliver
Minimum cost
2. What is the challenge represented in above case?
Two pharmaceutical companies entered into fast mergers.
BPD
3. What are the processes that organisations used to
implement HCM?
Prioritizing the needs
Create strategic HCM processes
Implementation
HRIT