This document provides an introduction to human capital management. It distinguishes personnel management, which focuses on administrative tasks like record keeping, from human resource management, which includes activities like recruitment, performance management, and compensation. Human capital management views employees as assets or investments whose skills can create economic value for an organization. It focuses on recruiting, developing, and retaining top talent in order to maximize returns. The document notes that most people realize less than 10% of their potential and many CEOs acknowledge insufficient focus on talent management. It defines human capital as the economic value of an employee's skill set and discusses how HCM aims to translate human capacities into economic impact.

1. HUMAN CAPITAL
MANAGEMENT
An Introduction
Jakarta, 23 April 2015

2. PERSONNEL MANAGEMENT
 Concerned with the administrative tasks that have to
do with managing an organization, such as record
keeping and dealing with employee wages, salaries

3. HUMAN RESOURCES
MANAGEMENT
 HR planning, job analysis, recruitment and selection,
employee relations, performance management,
employee appraisals, compensation management,
training and development

4. HUMAN CAPITAL
MANAGEMENT
 HCM is about creating value through people -
anything is translated into value. It is more likely to
have better economic results. HRM and HCM simply
treating people as assets - in HCM, people are value

5. HCM vs HRM
 HRM = People Management + Talent
Management
 HCM = HRM + Rupiah produced
 Employer wants to see a return on their
investments.

6. Process to recruit, retain, and develop the
most talented and superior employees
TALENT MANAGEMENT
most people realize less than 10% of their
potential.
54% of CEO’s acknowledge that senior management
spends insufficient time on talent management

7. You should always demonstrate
the impact you have had in the
roles you have held…not just a
statement of what you did.
91% of organizations challenged to identify
high potentials early in their careers

8. Value vs Destination
 What Barriers Operational People to Become
a CEO? (Compared to Finance People)
 What Makes Soccer Player Expensive?
Economi
c Value
Attract
Money

9. Human Capital is a
measure of the
economic value of an
employee's skill set.
It’s about capacities of
an employee,
wheather or not, have
an economic impact
for employer.
DEFINITION

10. HCM MATRIX
Activities
Innovation
Career Plan, Workload Plan
Training, Continue Education
Trainer, e-Learning
Task, Project, Succession
Recruitment, Workforce
Competency Test, Balanced
Scorecard

11. HCM OUTCOMES
Profit/Loss
Promotion
Salary Increment
Demotion

12. HCM: DAILY FACTS