HUMAN CAPITAL MANAGEMENT (HCM)
Human capital management (HCM) is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment. An organization that supports HCM provides employees with clearly defined and consistently communicated performance expectations. Managers are responsible for rating, rewarding, and holding employees accountable for achieving specific business goals, creating innovation and supporting continuous improvement. In the back office, HCM is the part of enterprise resource planning (ERP) that deals with employee records. The records provide managers with the information they need to make decisions that are based on data. HCM software streamlines and automates many of the day-to-day record-keeping processes and provides a framework for HR staff to manage benefits administration and payroll, create map out succession planning and document such things as personnel actions and compliance with industry and/or government regulations.
IMPORTANCE OF HCM
1. Human Capital Management is essential for hiring, managing, training and retaining talented and high performing employees. Human Capital management plays an important role in the recruitment process. It ensures that human resource professionals hire individuals who really deserve to be in the organization. Recruiting the right talent is of utmost importance. An individual who is not fit for a particular role will not be able to contribute much in the long run.
2. Human Capital management plays an important role in orienting a new employee to the system. Boring and meaningless induction programs lead to confusions and an employee eventually loses interest in the organization. Employee should not be loaded with unnecessary information, the very first day he steps into the organization. Otherwise, he/she will run away. Employee should be made feel comfortable. Order...
Please join StudyMode to read the full document