DEFINITION:Human Capital Management (HCM) is a strategic

approach to people management that focuses on the knowledge, skills, abilities and capacity to develop and innovate possessed by people in an organisation. Baron

The stock of accumulated knowledge, skills, experience, creativity and other relevant workforce attributes – Nalbantian et al

Human capital management is an integrated effort to manage and develop human capabilities to achieve significantly higher levels of performance. - Chatzkel

Concept of HCM Intellectual capital Social capital Organisational capital

Key focus of HCM Knowledge and insight rather than metrics and

standards, Complexity and not through cause and effect Using best fit Creating value People management Strategic partner.

KEY COMPONENTS OF HUMAN CAPITAL

Clarity in DirectionClarity in human capital goalsStrategies/Policies Implementation Accountability

HCM – Organisations

Diverse knowledge base workforce

Constant change Policies and practices are means to improve

People are assets No single means to measure

UNDERLYING FACTORS OF HCM

Leadership Employee motivation Training and development Performance improvement Pay and reward structures

QUEST FOR PREDICTIVE HCM’s

Varies according to company’s strategy

Direct and casuals relationships.Increasing productivity through recruitment – Oracle Taleo app.

HCM’s PERSPECTIVES

Focus on intangibles Strategy focused on creating human capital HR accountable Language of people

CLOUD BASED HCM MODULES

Human capital transformation helps multinational Pharmaceutical companies through Mergers.

CHALLENGES 2 MNC’S into fast mergers. Business process redesign

SOLUTIONS Fully integrated HR functions Health and welfare benefits Integrated competency model Programs to develop and retain top employees

QUESTIONS 1. What are the three major characteristics of HCM

strategy? Organisation people based programs Develop and deliver Minimum cost

2. What is the challenge represented in above case? Two pharmaceutical companies entered into fast

mergers. BPD

3. What are the processes that organisations used to implement HCM?

Prioritizing the needs Create strategic HCM processes Implementation HRIT