Essay About Measures Of Human Capital And Human Capital Management

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The future lies in HR focusing on strategic people
management activities rather than administrative
deliverables and most organizations have started
to use some measures of human capital –
headcount, turnover, and productivity – or make
some assessment of the value produced.
However, there are certain principles you need to
consider to maximize the benefit you receive
from using Human Capital Management (HCM).
An effective tool for HR value proposition
1. Quantify the deliverables.
The power of measurement is not the metrics or data you collect.
Rather, the benefit comes from your ability to use the information to
diagnose your organizational situation and make better decisions to
move the business towards its strategic goals. Organizations should
review current metrics available through technology in the light of their
use for decision-making.
2. Guide people decisions.
HCM is not about proving the value people add to the business; good
leaders already have this fundamental philosophy. It is about guiding
investment decisions and understanding the benefits and trade-offs in
people decisions.
3. HCM is an integrated HR Tool
HCM ranges from basic metrics to comparative information, from
scorecards to predictive models. To succeed with HCM, organizations
need to select the HCM approach that aligns with their context and
needs. This need could be developing or identifying key metrics, setting
performance levels or measuring the ROI of HR practices.
The future lies in HR focusing on strategic people
management activities rather than administrative
deliverables and most organizations have started
to use some measures of human capital –
headcount, turnover, and productivity – or make
some assessment of the value produced.
However, there are certain principles you need to
consider to maximize the benefit you receive
from using Human Capital Management (HCM).
Major focus is on modules like performance
management system & training management
Strategic Business
Partner
Administrative Employee
Champion
Change
Agent
Self-service and administrative modules of HCM
4. Focus on people value and not the cost
Many organizations understand their people costs quite well. However,
not all of them consider how people help the organization achieve its
goals. Consider the person who works late to check the accuracy of a
customer order or the person that comes up with efficiency
improvement ideas. Both of them add value well beyond their costs.
HCM helps you to understand the value.
5. HCM brings business acumen in HR.
HR is often viewed as the softer side of the business. It often struggles
to demonstrate its value. As HCM takes root in an organization, “soft”
measures become performance focused and demonstrate value
creation; this buys HR credibility with the line and a place at the
decision-makers table.
6. Higher ROI through employee engagement.
A variety of tools are available to help your organization focus on
growing