Three Elements Of Human Capital Management

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The challenge for individuals and organizations is to get an ideal mix of the three elements of human capital. The challenge of competing on human capital is the challenge of managing this interactive cycle of building and leveraging intellectual capital, social capital, and emotional capital. This is just as true for individuals as it is for organizations.

a)At the individual level successful careers increasingly require the ability to continuously protect and enhance one’s own human capital through continuous learning, through building relationships and by developing one’s emotional ability to take risks, to make commitments and to act.

b)At the level of a company success will increasingly depend on the ability to attract, develop, and
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Building a powerful human capital strategy requires solid facts, measures, and processes for discerning where an individual firm will get the most leverage from its people. This new path to better business performance and distinct competitive advantages relies on the discipline to enact three core principles: Insist on systems thinking, get the right facts, and focus on value.

i) Human Capital Management(HCM) usually refers to efforts to manage, develop, and retain the unique capabilities and expertise of individuals and of a workforce. It also consists in identifying the skills and abilities of the individuals and utilizing them in the best possible way to gain competitive advantage.

ii) Human Capital Strategy(HCS)

Every company needs a human capital strategy that supports its business strategy. Since human capital is an asset, it follows that Human capital strategy is a form of asset management – a plan for securing, managing and motivating a workforce to optimize business performance. It is business strategy that links the competencies, motivations, and satisfactions of its employees directly with drivers of a value for customers, which in turn drives profitability for the
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Staffing programs focus on identifying, recruiting, and hiring the best and the highest talent available.
2. Training programs complement these staffing practices to provide skill enhancement, particularly in areas that cannot be transferred to another company if an employee leaves. Training is vital to the success of modern organizations. it also plays a central role in nurturing and strengthening the competencies, and in this way it becomes part of the backbone of strategy implementation. In addition, rapidly changing technologies require that employees continuously hone their knowledge, skills and abilities (KSAs), to cope with new processes and systems.
3. Developmental assignments: mangers have to good job of providing developmental assignments to employees and ensuring their job duties and requirements are flexible enough to allow for growth and learning. Other trends towards empowerment, TQM, teamwork, and interpersonal business make it necessary for managers, as well as employees, to develop the skills that will enable them to handle new and demanding assignments.
4. Empowerment: organizations have to find ways of using the knowledge that currently exists. Too often, employees have skills that go unused. Efforts to empower employees and encourage their participation and involvement more fully utilize the human capital

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