Human capital management involves several processes. Together they are supposed to achieve the organizational goals. These processes can be performed in an HR department, but a few tasks can also be outsourced or performed by line-managers or other departments. When effectively integrated they provide significant economic benefit to the company. The Human Capital Management (HCM) function includes a variety of activities. There are following multiple areas which are actually playing an imperative role in Human Capital Management:
a) Procurement
b) Development
c) Compensation
d) Maintenance
e) Integration
f) Separation
The major functions of human capital management include recruiting people, training them, performance appraisals, motivating them as well as workplace communication, workplace safety, and much more. The advantages of these functions have been discussed here in detail:
Recruitment and Development
It is one of the most important responsibilities of the human resource management team. The managers work out plans and strategies of hiring the right kind of people. They design the criteria suitable for a specific job description.
Performance Appraisals
Human capital management motivates every individual in the organization, to work according to his potential and also facilitates him increase his capability. The management team communicates with the employees, all the essential information regarding their performances and also defines their respective roles from time to time. We will also discuss 360 degree performance appraisal as well.
Following methodologies will be part of our focus discussion:
i) Formal Performance Appraisal
ii) Informal Performance Appraisal
iii) Management By Objective (MBO)
iv) Management By Walking Around (MBWA)
Maintaining Job Environment
The performance of an individual in an organization is largely staring by the work atmosphere that prevails at the job place....