Human Capital Management

One thing that has always bothered me is the term 'Human Resources', as it equates humans to consumable and exhaustible resources, which is not true. Humans can learn and grow with time just like capital assets so Human Capital Management is a much better term to describe this crucial business function.

Here are three key concepts which are key to success in a human-centric organization that are so crucial in the knowledge-based service industry.

1. 𝑶𝒓𝒈𝒂𝒏𝒊𝒄 𝑶𝒓𝒈𝒂𝒏𝒊𝒛𝒂𝒕𝒊𝒐𝒏 
The team-based operation cut across functional and hierarchical lines with more horizontal patterns of communication, which are better suited to dynamic contexts.

2. 𝑺𝒉𝒂𝒓𝒆𝒅 𝒄𝒂𝒑𝒊𝒕𝒂𝒍𝒊𝒔𝒎
Providing employees with stock options creates shared capitalism and leads to an increase in effort and profits. The gains are realized by reduced turnover, interest in firms’ performance, and willingness to cooperate.

3. 𝑩𝒖𝒔𝒊𝒏𝒆𝒔𝒔 𝑷𝒂𝒓𝒕𝒏𝒆𝒓
Human capital business partners include themselves in business functions and can add real value to the bottom line. They need to move away from a transactional and procedural HR role to a more strategic and proactive HCM role.

It was so noteworthy class to learn from professor Bill Roche who has spent huge time in the field and had so many insights to share.

What are other important considerations in human capital management? Share your thoughts in the comments below.

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