People are arguably the most valuable asset held by an organization today. People invent new products, find ways to creatively reduce costs, deliver quality services, and build long-lasting relationships with customers. It is also an organization’s people and the collective skills, knowledge, and capabilities they represent as human capital – that are most difficult to duplicate by the competition. Only people can manage and maximize assets so that the assets reach their full potential. And only people can reinvent processes, products, and ways of working so that an organization remains one step ahead of the competition. For many organizations today, long-term competitive success is tied less to the products or services they produce than to the people producing them.
Human capital is a measure of the economic value of an employee’s skill set. The concept of human capital recognises that not all labour is equal and that the quality of employees can be improved by investing in them. The education, experience and abilities of an employee have an economic value for employers and for the economy as a whole.
The efficient management of the supply and flow of human assets is rapidly becoming the primary source of its competitive advantage. The traditional importance of managing of capital assets continues to be important but ever less so. This shift has been caused by fundamental changes in the economy, such as:
• increasing product complexity, accelerating innovation, and shortened product lifecycles - and the attendant demand for higher skilled workers; • new definitions of work and organizational structure; and • increasing number and complexity of employment-related laws and regulations.
Human capital management is not about changing the names of things we are already doing in human resources (HR) and elsewhere. It is about acknowledging, anticipating, and acting on the human impacts of those actions. Human capital management provides a systems approach to improving the performance of an organization and its employees, by integrating initiatives that impact their performance, including restructuring, business process improvement, and new IT systems introductions, as well as more traditional HR programs, such as recruiting, retention, and performance management. Human capital management takes the view of employees as individuals-the combination of skills, competencies, motivation, capabilities, interactions, energy, experiences, and institutional memory that create value for the organization. OBJECTIVES:
• Talent management – Support people during every phase of their employment – from recruitment through training, development, and retention. Find the right people, put their talent to best use, align employee goals with corporate goals, maximize the impact of training, and retain top performers. With different HCM systems, you can develop and deploy talent more rapidly and flexibly than ever before. The solutions support and integrate all talent management processes – so you can attract, acquire, educate, and develop talent; identify and grow future leaders; and align and motivate talent with overall objectives. • Workforce process management – Streamline and integrate essential workforce processes such as employee administration, organizational management, time management, benefits, payroll, and legal reporting. Using HCM systems, you can standardize and consolidate all workforce-related processes and data onto a single platform, while ensuring adherence to local regulations and laws.
• Workforce deployment – Deploy the right people with the right skills to the right positions at the right time. Create project teams based on skills and availability, monitor progress on projects, track time, and analyze results for strategic decision making. While HCM theory is molded around the age-old principle that the workforce is a company’s...