The term “human capital management” (HCM) refers to methods and approaches to managing human resources. These approaches can be divided into three categories; workforce optimization, workforce management, and workforce acquisition, and are centered on the organizational need to deliver required competencies.
For employees to make a substantial contribution to the organization’s total productivity, it is necessary to manage human capital. In layman’s terms, managing a workforce within an organization is equivalent to managing human capital.
Many people are unaware of what human capital management is, and it’s frequently confused with human resource management. Let’s first examine some of the benefits of human capital management.
- Making the best use of people is made possible by human capital management.
- The use of human capital management by human resource specialists helps them select the best applicant for each open position.
- The use of human capital management can help a business find the best personnel.
- Information can freely circulate between leaders and subordinates due to human capital management.
- The use of human capital management enables employees to enhance their performance in areas where they perceive gaps.
DIFFERENCES IN HUMAN RESOURCE AND CAPITAL MANAGEMENT
Human capital emphasizes an ongoing relationship of worth, whereas the term “human resources” conveys something of finite quantity.
At Prime KBS Institute Limited (PKBSIL) because we strongly believe the human mind is the best global resource, we work with you in implementing human capital management, to offer your business the best possible foundation.