{"id":431,"date":"2021-11-30T12:19:01","date_gmt":"2021-11-30T12:19:01","guid":{"rendered":"http:\/\/34.100.192.8\/?p=431"},"modified":"2024-10-15T11:57:09","modified_gmt":"2024-10-15T06:27:09","slug":"understanding-human-capital-management-hcm","status":"publish","type":"post","link":"https:\/\/pyjamahr.com\/blog\/understanding-human-capital-management-hcm\/","title":{"rendered":"Meaning of Human Capital Management (HCM)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"431\" class=\"elementor elementor-431\">\n\t\t\t\t<div class=\"elementor-element elementor-element-6af23c7 e-con-full e-flex e-con e-parent\" data-id=\"6af23c7\" data-element_type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-88a1a3b elementor-widget elementor-widget-heading\" data-id=\"88a1a3b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is HCM?<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-274a3de elementor-widget elementor-widget-text-editor\" data-id=\"274a3de\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p>\n<p>The full form of <strong>HCM is Human Capital Management<\/strong>.<\/p>\n<p>Human Capital Management (HCM) is a set of practices that an organization uses for recruitment, onboarding, and optimizing employees to achieve organizational competency. HCM helps in:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:list --><\/p>\n<ul>\n<li>Hiring right candidate<\/li>\n<li>Having <a href=\"http:\/\/13.235.238.14\/role-of-skill-based-hiring-in-shaping-the-workforce-of-tomorrow\/\">skilled candidates<\/a> in the company\u2019s workforce<\/li>\n<li>Effective management of employees<\/li>\n<li>Increasing company\u2019s productivity<\/li>\n<\/ul>\n<p><!-- \/wp:paragraph --><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6574bfb elementor-widget elementor-widget-text-editor\" data-id=\"6574bfb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3>\u201cGreat vision without great people is irrelevant.\u201d<\/h3>\n<h4><em>Jim Collins<\/em><\/h4>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-72d0116 elementor-widget elementor-widget-image\" data-id=\"72d0116\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"480\" src=\"https:\/\/blog.pyjamahr.com\/wp-content\/uploads\/2021\/11\/Picture-for-blog-24-2-1.jpg\" class=\"attachment-full size-full wp-image-9303\" alt=\"need for human capital management (hcm)\" srcset=\"https:\/\/blog.pyjamahr.com\/wp-content\/uploads\/2021\/11\/Picture-for-blog-24-2-1.jpg 1024w, https:\/\/blog.pyjamahr.com\/wp-content\/uploads\/2021\/11\/Picture-for-blog-24-2-1-300x141.jpg 300w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Elevate HR operations with Human Capital Management (HCM).<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ab8c575 elementor-widget elementor-widget-heading\" data-id=\"ab8c575\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Key processes of human capital management (HCM)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fff43e9 elementor-widget elementor-widget-text-editor\" data-id=\"fff43e9\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p>\n<p>Human capital management (HCM) widely manages<strong> three main processes in an employee\u2019s stay cycle <\/strong>in a company. These are Talent Acquisition, Talent Management, and Talent Optimization.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-df0e54e elementor-widget elementor-widget-heading\" data-id=\"df0e54e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Talent acquisition<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7f4414 elementor-widget elementor-widget-text-editor\" data-id=\"f7f4414\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p>Talent Acquisition is one of the core components of HCM. It can be defined as <strong>how an HR finds the right candidate for a particular post<\/strong>. It includes <a href=\"http:\/\/13.235.238.14\/blog\/a-detailed-guide-to-talent-acquisition-with-the-help-of-ats\/\">applicant tracking<\/a>, recruiting, interviews, reference check, hiring, and onboarding. It is a long-term process that aims to construct a strong workforce. Unlike recruitment, talent acquisition requires finding the most suitable candidate to fit in a particular job role. To produce the maximum value from a talent, elements like accurate forecasting, coordination, etc., act as a boon.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b1d5df elementor-widget elementor-widget-heading\" data-id=\"6b1d5df\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Talent optimization<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fadd890 elementor-widget elementor-widget-text-editor\" data-id=\"fadd890\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p><a href=\"https:\/\/www.predictiveindex.com\/blog\/what-is-talent-optimization\/\" target=\"_blank\" rel=\"noopener\">Talent Optimization<\/a> is the need for an organization to <strong>constantly create methods or approaches for individual or collective growth<\/strong> for achieving business goals and objectives. Training employees on the immediate or future required skills is one such approach. Succession planning, career pathing, and constant learning and development ensure that the organization\u2019s growth and success is not compromised.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-12f4d47 elementor-widget elementor-widget-heading\" data-id=\"12f4d47\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Talent management<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-40dc562 elementor-widget elementor-widget-text-editor\" data-id=\"40dc562\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p>Talent Management enables the goal of increasing employee <a href=\"http:\/\/13.235.238.14\/blog\/the-future-of-hiring\/\">productivity and efficiency<\/a>. It ensures that <strong>the right candidate with a particular skill set is assigned for a specific job role<\/strong>. The management guides and supervises the employee in their job role. Some of the essential features in HCM include,<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-979a065 elementor-widget elementor-widget-text-editor\" data-id=\"979a065\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li><strong>Time and attendance<\/strong><\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>This tool helps in keeping track of the employee\u2019s work time and the leaves taken by them. It is a self-service tool that maintains transparency and improves engagement.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li><strong>Payroll<\/strong><\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>The HCM tool simplifies the task of <a href=\"http:\/\/13.235.238.14\/blog\/understanding-salary-calculation-in-hrm\/\">payroll management<\/a>. By keeping track of the employee attendance, overtime, etc., it efficiently manages the employee payroll through the automated process.\u00a0<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li><strong>Performance management<\/strong><\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>HCM systems help in better communication, facilitate in planning goals and objectives for individuals and the team.<\/p>\n<p><!-- \/wp:paragraph --><!-- wp:list --><\/p>\n<ul>\n<li><strong>Culture connect<\/strong><\/li>\n<\/ul>\n<p><!-- \/wp:list --><!-- wp:paragraph --><\/p>\n<p>The HCM system also makes it easy for the employees to highlight their grievances to get addressed.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-784531d elementor-widget elementor-widget-image\" data-id=\"784531d\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"480\" src=\"data:image\/svg+xml;charset=utf-8,%3Csvg xmlns%3D&#039;http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg&#039; viewBox%3D&#039;0 0 1024 480&#039;%2F%3E\" class=\"attachment-full size-full wp-image-9301 ld-lazyload\" alt=\"need for human capital management (hcm)\" data-src=\"https:\/\/blog.pyjamahr.com\/wp-content\/uploads\/2021\/11\/Picture-for-blog-24-1-1.jpg\" data-srcset=\"https:\/\/blog.pyjamahr.com\/wp-content\/uploads\/2021\/11\/Picture-for-blog-24-1-1.jpg 1024w, https:\/\/blog.pyjamahr.com\/wp-content\/uploads\/2021\/11\/Picture-for-blog-24-1-1-300x141.jpg 300w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" data-aspect=\"2.1333333333333\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Utilize Human Capital Management (HCM) Software to make better decisions.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6e91863 elementor-widget elementor-widget-heading\" data-id=\"6e91863\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Need for a human capital management (HCM) software<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fad88cc elementor-widget elementor-widget-text-editor\" data-id=\"fad88cc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p>Human capital management (HCM) software facilitates the effective management of the workforce by managing the processes and the functions associated with it. It is also known as<strong> Human Resource Information System <\/strong>(HRIS) or <strong>Human Resource Management System <\/strong>(<a href=\"http:\/\/13.235.238.14\/blog\/hrms-full-form-and-meaning\/#:~:text=Functions%20of%20HRM&amp;text=It%20assists%20in%20the%20recruitment,employee%20self%2Dservice%2C%20etc.\">HRMS<\/a>). This software saves time and money by streamlining the processes such as recruiting, record keeping, onboarding, <a href=\"http:\/\/13.235.238.14\/blog\/applicant-tracking-system-what-is-an-ats\/\">applicant tracking<\/a>, etc. While choosing an HCM Software, one must keep in mind the organization\u2019s needs.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-9a6c88a elementor-widget elementor-widget-heading\" data-id=\"9a6c88a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Differences between human capital management (HCM) and human resource management (HRM)<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f8099ff elementor-widget elementor-widget-text-editor\" data-id=\"f8099ff\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><!-- \/wp:paragraph --><\/p>Human capital management (HCM) or Human resource management (HRM) share a common goal of achieving a more robust and better-managed company. However, they have two different meanings. <strong>HRM emphasizes the core administrative functions of HR<\/strong>. These include maintaining the records of employees and administering benefits and day-to-day operations. On the other hand, <a href=\"http:\/\/13.235.238.14\/blog\/decoding-human-resource-management-roles-and-functions\/\">HRM encompasses<\/a> the processes of HRM and different strategic positions, including analytics and performance management. HRM manages and maintains the system responsible for recruiting, hiring, training, and retaining the workforce. <strong>HCM is responsible for maximizing the value of people in an organization<\/strong>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0f00d30 elementor-widget elementor-widget-heading\" data-id=\"0f00d30\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Related articles<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8db6ebc elementor-widget elementor-widget-text-editor\" data-id=\"8db6ebc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><a href=\"http:\/\/13.235.238.14\/blog\/decoding-human-resource-management-roles-and-functions\/\">What is Human Resource Management (HRM)?<\/a><\/p>\n<p><a href=\"http:\/\/13.235.238.14\/blog\/hrms-full-form-and-meaning\/#:~:text=Functions%20of%20HRM&amp;text=It%20assists%20in%20the%20recruitment,employee%20self%2Dservice%2C%20etc.\">HRMS \u2013 Full Form and Meaning<\/a><br \/><br \/><a href=\"http:\/\/13.235.238.14\/blog\/training-development-process-in-hrm\/\">Steps in the Training and Development Process<\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is HCM? The full form of HCM is Human Capital Management. Human Capital Management (HCM) is a set of practices that an organization uses for recruitment, onboarding, and optimizing employees to achieve organizational competency. HCM helps in: Hiring right candidate Having skilled candidates in the company\u2019s workforce Effective management of employees Increasing company\u2019s productivity [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":11651,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[30],"class_list":["post-431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-hrm-hcm"],"_links":{"self":[{"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/posts\/431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/comments?post=431"}],"version-history":[{"count":49,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/posts\/431\/revisions"}],"predecessor-version":[{"id":11654,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/posts\/431\/revisions\/11654"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/media\/11651"}],"wp:attachment":[{"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/media?parent=431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/categories?post=431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pyjamahr.com\/blog\/wp-json\/wp\/v2\/tags?post=431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}