Human capital management (HCM) is crucial for every organisation since employees are the engine that keeps the firm running and growing. HCM’s rising profile may be attributed in part to the shift from manufacturing to services that has taken place during the last decade in developed economies.
Just what does it mean to “manage human capital?”
Human capital management is a system of organisational rules, practises, and processes for handling all aspects of an employee’s lifecycle inside an organisation. It streamlines the processes involved in finding, training, and retaining employees. Tasks like managing time and attendance, payroll, benefits, onboarding new employees, and training new employees are all part of this.
The purpose of human capital management is to maximise and enhance the economic or commercial value that an organisation obtains from its people capital in order to acquire a competitive edge. An effective management of the company’s human resources offers the firm the opportunity to successfully pursue goals connected to such resources.
Role of HCM in Health and Disease
Human resources management (HRM), often known as human capital management (HCM), is similar to but distinct from HCM. HCM is a broad discipline that includes not just HR practises but also other work systems and people management policies that improve an organization’s output. Human capital management extends well beyond the jurisdiction of typical HR departments and include a holistic people analytics strategy, which is one of the key distinctions between HRM and HCM.
Fosters the Spread of Traditional Values
Current information regarding business decisions, employee viewpoints, pay, and management initiatives is available to both within and outside the company. Now more than ever, workers may pick and choose from a wide range of career opportunities and get insight into the inner workings of different companies. So modern CEOs treat their employees more like customers.
Contemporary workers are on the lookout for places of worship, meaningful relationships, positions of authority, and professional growth. Keeping up with all of these needs might be taxing on your business, which is why striking a healthy balance is so important.
Job design, management, leadership development, and the workplace setting are all factors that may help a company’s culture evolve to meet the challenges of a dynamic workplace. It ultimately leads to higher levels of productivity thanks to higher levels of employee retention and engagement.
Helps Strengthen Structure Within Organizations
Companies are reconsidering the structure of their organisations in light of the higher priority they are placing on human resources. Jobseekers increasingly expect more discretion and independence in the workplace. There has been a change in focus as of late as businesses try to improve how they are structured to meet the needs of their employees.
Conclusion
Many companies hold the view that giving employees more say over the direction of the company and the tasks inside it would help create a feeling of responsibility in them and provide more meaning to their job.
