Human Capital Management

What is Human Capital Management ?

‘Human Capital Management’ or ‘Human Resource Management’ refers to the set of practices that a company implements to recruit, manage and develop the employees of the organization in order to increase their value to the company.

If a company is able to implement human capital management correctly, it will be able to hire more talented candidates, cultivate a culture of learning and implementing new ideas, improve productivity of the employees as well as manage them effectively and help them manage their time efficiently.

Although the terms ‘Human Capital Management’ and ‘Human Resource Management’ are used interchangeably, they are fundamentally different. Human resource management is more focussed on core administrative functions of the HR related to the employees. However, human capital management is more concerned with the broader HR functions such as performance analysis and training.

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