Human Capital Management (HCM) is a strategic approach that focuses on managing and developing the skills, knowledge, and abilities of an organization’s workforce to improve performance. Key components include clarity in direction and goals, accountability, and recognizing people as assets, with a focus on creating value rather than relying solely on metrics. Challenges include managing rapid mergers and implementing integrated HR functions while prioritizing the development and retention of talent.

2. 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

3.  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.

4. KEY COMPONENTS OF HUMAN CAPITAL
Clarity in Direction
Clarity in human capital goals
Strategies/Policies
Implementation
Accountability

5. HCM – Organisations
Diverse knowledge base workforce
Constant change
Policies and practices are means to
improve
People are assets
No single means to measure

6. UNDERLYING FACTORS OF HCM
 Leadership
 Employee motivation
 Training and development
 Performance improvement
 Pay and reward structures

7. QUEST FOR PREDICTIVE HCM’s
Varies according to company’s strategy
Direct and casuals relationships.
Increasing productivity through
recruitment – Oracle Taleo app.

8. HCM’s PERSPECTIVES
 Focus on intangibles
 Strategy focused on creating human capital
 HR accountable
 Language of people

9.  CLOUD BASED HCM MODULES

10. 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

11. 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