Human Capital Management

MODULE : HUMAN CAPITAL MANAGEMENT

TOPIC : THE CONCEPT AND PROCESS OF HUMAN CAPITAL MANAGEMENT

TABLE OF CONTENTS

Page

1. Introduction ………………………………………………………………….. 2

1.1 Definitions and concepts …………………………………………….. 2 – 3

2. Importance of Human Capital Management (HCM) ………………………... 4 – 5

3. Benefits of Human Capital Management (HCM) …………………………… 6

3.1 Extracting the best out of employee …………………………………. 6

3.2 Hire the right candidate ……………………………………………… 6

3.3 Flow of information …………………………………………………. 6

3.4 Training and skills development …………………………………….. 7

3.5 Importance of soft skills and personal development ………………… 7

4. Differences between Human Capital Management (HCM) and

Human Resource Management (HRM) ……………………………………… 8

4.1 Nature of relationships ……………………………………………….. 8

4.2 Relation of power and management ………………………………….. 9

4.3 Leadership and management role …………………………………….. 9

4.4 Contract of employment ……………………………………………… 9

4.5 Pay policies and job design …………………………………………... 10 – 11

5. Human Capital Management (HCM) drivers …………………………………. 12 – 13

6. Human Capital Management – A global context ……………………………… 14 – 15

7. Human capital in Malaysia – A government effort ……………………………. 16

7.1 Workplace transformation ……………………………………………. 16 – 17

7.2 Workforce transformation ……………………………………………. 17 – 19

8. Conclusion ……………………………………………………………………... 20

9. List of references ………………………………………………………………. 21

10. Appendices …………………………………………………………………… 22

INTRODUCTION

Today's business environment requires a complete re-think of the traditional human resource (HR) practices. Over the years, technological innovations have changed a lot in the corporate world. Thus it becomes...