What is HCM?

Human Capital is the cumulative knowledge, competencies and personal attributes in the people in an organisation which can be used to create a financial value. Human Capital Management is an approach which believe that employees are a strategic asset and tries to increase the value of Human Capital as well as evaluate, measure and analyse it.

Human Capital Management (HCM) is not the same as Human Resource Management (HRM). HCM focus more on the strategic alignment with the overall business and on measuring and evaluating the bottom-line impact of projects. While some activities may be the same the design is different. Take recruitment for example; In HRM the focus is to try to find the best fit between the person and the job description. In HCM the focus is about making the job description fit the needs of the organisation in the context of its strategy.


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