Human Capital Management

 

KAMRAN KHAN 022 MUHAMMAD MUHAMM AD TAIMUR MUHAMMAD MUHAMM AD ZAF ZAFAR AR WAQAS ALI SAFDAR

1010-017 10-045 10-

057

 

Human Capital Management Human capital management (HCM) is concerned with obtaining, analyzing and reporting on data that inform the direction of value-adding people management manage ment strat strategy egy..

 

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HCM is the use of metrics to guide an approach to managing people that regards them as assets.

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t emphasizes that competitive advantage is achieved by strategic investments in those assets through employee engagement and retention, talent management and learning and development programs.

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HCM is about creating value through people.

 

AIMS OF HUMAN CAPITAL MANAGEMENT  !he four fundamental fundame ntal ob"ectives of HC HCM M are# $. to determine the impact of people on the business and their contribution to value.

%. to demonstrate that H& practices produce value for money in terms, for e'ample, of return on investment.

 

AIMS OF HUMAN CAPITAL MANAGEMENT . to provide guidance on future H& and business strategies.

. to provide data that will inform strategies and practices designed to improve the e*ectiveness of people management in the organization.

 

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THE LINK BETWEEN HCM AND BUSINESS BUSI NESS STR STRA ATEG  •

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t is often asserted that HCM and business strategy are closely lin1ed and that an HCM approach provides guidance on both H& and business strategy.

 !he prime purpose pu rpose of hu human man capital management is to establish 2an employment proposition that lin1s the wor1 of employees to strategy and pro3ts.

 

THE LINK BETWEEN HCM AND BUSINESS BUSI NESS STR STRA ATEG  •

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 !he issue is 4what 4what this lin1 is 56 and 4How to ma1e it wor156 0 bland statement that HCM informs H& strategy, which in turn informs business strategy, tells us nothing about what is involved in practice.  !his means that all business strategic goals for depend on people for their implementation.

 

THE LINK BETWEEN HCM AND BUSINESS BUSI NESS STR STRA ATEG  7ays to lin1 HCM and 8usiness 9trategy# $. ne way of being more speci3c is to use HCM assessments of the impact of H& practices on performance to "ustify these practices and improve the li1elihood li1 elihood that the they y will wor1.

 

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THE LINK BETWEEN HCM AND BUSINESS BUSI NESS STR STRA ATEG  %. 0 second way of specifying the lin1 is to e'plore e'plor e in more detail the people implications of business strategy and, conversely, the business implications of H& strategy.  !his can be done by analyzing the elements of the business strategy and the business drivers and deciding on the H& supporting activities and HCM data re:uired.

 

THE LINK BETWEEN HCM AND BUSINESS BUSI NESS STR STRA ATEG  . 0 third, and potentially the most productive way of lin1ing H& and business strategy, is to relate business results to H& practices to determine how they can best contribute to improving performance. ;or e'ample# nnovation is prime business ob"ective of 90M9 and in recent years company has achieved this ob"ective very well. 9o telling that how much ?age of individual H& practices contribute to this result will help to @in1 the t he HCM to t o 8usiness 9 9trategy trategy..

 

DE*ELOPING A HUMAN DE*ELOPING HUMAN CAPITAL CAPITAL MANAGEMENT STRATEG 

 

DE*ELOPING A HUMAN CAPITAL MANAGEMENT •

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btain, analyzeSTRATEG  and report on data that inform the direction of H& strategies and processes. nform the development of business busin ess strategy strategy.. eneral lectric, 9outh-Corp @td.,