An organisation can manage its personnel using any of these two different strategies: Human Resource Management (HRM) or Human Capital Management (HCM). Although they are similar, their scope and purpose are different. Let’s understand more about the HRM and HCM processes.
Human Resource Management
People resource management, or HRM, is a conventional strategy for overseeing an organisation's human resources. Administrative tasks including hiring, training, performance management, remuneration, and employee relations are the main areas of concentration. HRM frequently views workers as resources who will help the company achieve its objectives.
Benefits of HRM for Organisations
Increased Attention to Business Objectives
The broad picture can occasionally be difficult to gauge due to the day-to-day tasks making employees deviate from the core objectives. Employee dissatisfaction and disengagement from work are frequently caused by a misalignment between personal and organisational objectives. This can result in below-par employee performance, resulting in reduced business.
By integrating goal-setting into performance management procedures, human resource management closes the gap by tying team and individual employee goals to the overarching corporate objectives. This makes it easy for everyone to comprehend how their work fits into bigger-picture and helps employees realise how their job affects their coworkers as well.
Enhanced Workplace Involvement
It's difficult to overstate the importance of employee engagement, which is why HR professionals have been thinking about it a lot lately. Employers find it hard to track qualified candidates as well as manage symptoms of disengagement such as resignations. Happily, an HRM strategy makes involvement much more inevitable. A more engaged workforce is a result of clear goals set by the HRM, stronger ties between workers and their jobs, and frequent recognition programmes and career progression.
Human Capital Management
The more contemporary and strategic approach to managing human resources is known as human capital management or HCM. It goes beyond conventional HR duties and views workers as important resources (human capital) who add to the success of a company. HCM places a strong emphasis on matching overall company goals with human capital strategy, with a particular emphasis on talent optimisation, and employee engagement and development.
Benefits of HCM for Organisations
Enhances the Procedures for Employee Resources
The main advantage of human capital management is that it provides a strategy for managing a company's need for human resources. It creates a structure that the HR division may use to draw in and keep outstanding employees to accomplish business goals.
Simplifies Hiring
An optimised human capital management process enables you to attract top candidates for your business. It gives recruiters access to a list of people with the most relevant skills and experience for open positions.
These techniques may be used by your public relations and hiring managers to accomplish business objectives and attract applicants who can deliver the greatest results. It also makes candidate onboarding easier.
Conclusion
These are some benefits of the HRM and HCM process for organisations. Both these processes can work in conjunction and help organisations scale up at a greater pace. And if you want human capital management services for your company, contact Kutumbh HRCare - a leading HR and staffing service provider across India. This Noida-based staffing company helps provide a gamut of cutting-edge HR service solutions to client companies. Contact Now!
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