Human Capital Managment

What is Human Capital?

The stock of accumulated knowledge, skills, experience, creativity

and other relevant workforce attribute

What is Human Capital Management (HCM)?

It is metrics to measure the value of knowledge, skills, experience, creativity of the workforce and using that knowledge to effectively manage the organization

What is difference between HRM and HCM?

What are concepts of HCM?

Individuals generate, retain and use knowledge and skill (human capital) and create intellectual capital. Their knowledge is enhanced by the interactions between them (social capital) and generates the institutionalized knowledge possessed by an organization(organizational capital).

What is Intellectual Capital?

Intellectual Capital= Market value of Company - value of Tangible Assets of Company

or

Intellectual Capital= Human capital+Social capital+ Organizational or Structural capital

What are the tools to measure HCM?

Tool:1

The human capital index – Watson Wyatt

It's propitiatory tool of watson wytt. Watson Wyatt (2001) identified four major categories of practice viz, total rewards and accountability (16.5),collegial, flexible workforce(9.0)recruiting and retention excellence(7.9)communication integrity (7.1)that could be linked to a 30 per cent increase in shareholder value

creation

More information at http://www.watsonwyatt.com/render.asp?catid=1&id=9047

Too2:

The Organizational Performance Model developed by Mercer HR Consulting is based on the following elements: people, work processes, management structure, information and knowledge, decision-making and rewards.

More information at http://www.mercer.com/articles/1315745

Tool3:

The human capital monitor – Andrew Mayo

Mayo (2001) has developed the ‘human capital monitor’ to identify the human value

of the enterprise or ‘human asset worth’, which is equal to ‘employment cost × individual asset multiplier’. The latter is a weighted average assessment of capability,potential to grow, personal performance (contribution) and alignment to the organization’s values set in the context of the workforce environment (ie how leadership, culture, motivation and learning are driving success).

http://www.mayolearning.com/human-capital-measurement/

Too 4

The Sears Roebuck model

The Sears Roebuck model (Rucci et al, 1998) defines the employee-customer-profit chain. It is sometimes called the ‘engagement model’. It explains that if you keep employees satisfied in terms of their attitude to the company and their job you will create a ‘compelling place to work’, which will encourage retention and lead to service helpfulness and merchandize value, which leads to customer satisfaction, retention and recommendations, thus creating ‘a compelling place to shop’. This in turn creates ‘a compelling place to invest’, because of its impact on return on assets, operating margins and revenue growth.

More details at http://www.internalcommshub.com/open/measuring/toolkit/sears.pdf

Tool 5

The Balanced Score Card.