Human Capital Management – A Strategic Role for Human Resources.

A company’s human capital asset is the collective sum of the attributes, life experience, knowledge, inventiveness, energy, and enthusiasm that its people choose to invest in their work. Human Capital Management (HCM) is the task of measuring the cause and effect relationship of various Human Resource Management (HRM) programs and policies on the bottom line of the firm. HCM attempts to obtain additional productivity from workers; it is in this area that HR can truly play a significant role. Human capital assessment leads to a different kind of role for HR. HR executives can help a corporation build a strategy map, helps senior management view the complex roles and to measure and manage changes in philosophy for organizations.
With human capital management, an attempt is made to determine the relationships that exist between certain HR actions and the bottom line. Instead of assuming that all employees react in the same way, a profile of each employee may be developed and analyzed for cause and effect. However, HCM decisions must be tailored to fit the culture of each company. It is not a one-size-fits-all situation. A big difference between HCM and old-era HR is that instead of trying to emulate what other companies are doing, a manager attempts to discover what is best for their company…