Role of Motivation in Employee Retention
Employee retention involves various steps taken to retain an employee who wishes to move on. An employee must find his job challenging and as per his interest to excel at work and stay with the organization for a longer period of time. The management plays an important role in retaining the talented employees who are […]
Tips for Professionals on Making Smart Career Moves during your Working Life
Determining Whether you want to be a Big Fish in a Small Pond or Small Fish in a Big Pond Whether you are a fresher or an aspiring professional, or you have established yourself in your career, or are beginning to find your feet in your job, there are some ways in which you can […]
Group Behavior – In Organizational Context
In an organizational context, groupthink and group behavior are important concepts as they determine the cohesiveness and coherence of the organizational culture and organizational communication. For instance, unless the HRD function communicates the policies clearly and cogently, the employees would not participate and comply with them wholeheartedly. Hence, molding group behavior is important for organizations. […]
Knowledge Management – Meaning and Important Concepts
Introduction It has been extensively identified that knowledge is an important aspect for an economy to develop. We are seeing a lot of transformation rapidly happening in our society. Every day we are seeing that we are becoming more and more dependent on knowledge. If this is the case with our societies, the scenario is […]
Knowledge Management in the Age of Information Overload
The Evolution of Knowledge Management Knowledge Management as a separate stream of business and as an organizational function and practice emerged with the advent of the Information Age with its reliance on knowledge as power. Indeed, while the Industrial Era did have some connection to accumulating, preserving, and share knowledge, it was only with the […]
To understand the meaning of Human Capital Management let us first find out the meaning of “Capital”.
What does the word “Capital” stand for?
Capital refers to already produced durable goods which further contribute to the production of goods and services. In simpler words, capital refers to any produced good/service which enables an individual/organization to deliver high quality output. Capital acts as a catalyst to increase productivity in organizations.
Employees are the lifeline of an organization. An organization can’t survive if there are no employees. Organization runs with the help of individuals who contribute in their own way in its success and productivity. Employees spend maximum part of their day in offices and strive hard to achieve the goals and objectives of the organization. Employees ought to be motivated from time to time so that they develop a sense of attachment towards their organization and also deliver their best.
Every employee in his/her tenure acquires some set of skills through his experience, exposure, trainings and so on which further increase his/her productivity eventually benefitting the organization. Knowledge and expertise which employees develop in due course of time to further increase the productivity of organizations refer to human capital. Every employee tries his level best to sharpen his/her skills during his stint with the organization. Human capital is defined as the collective stock of skills, attributes, knowledge, expertise of employees which further plays an integral role in increasing the productivity of the organization.
Every organization invests its money and resources to train new employees. Employees in turn work hard, upgrade their existing knowledge and contribute in their own way to increase the productivity of their organization.
The word “Human Capital” was introduced by A. W. Lewis in “Economic Development with Unlimited Supplies of Labour”.
Human capital plays a crucial role in increasing the productivity and output of an organization.
Human Capital management refers to managing an organization’s employees for them to contribute significantly in the overall productivity of organization. In a layman’s language managing workforce of an organization refers to human capital management.
Human Capital Management is defined as the process of acquiring, training, managing, retaining employees for them to contribute effectively in the processes of the organization.
In simpler words, upgrading the existing skills of an employee and extracting the best out of him/her refers to human capital management.
Human Capital management has more to do with how organizations treat their employees ? Do not treat your employees as mere labours. Senior management must ensure timely growth and development of every individual concerned for him/her to contribute efficiently when required.
The key objective of every organization should be to train its employees so that they become efficient resources later on. In human capital management, organizations treat their employees as important resources that play an instrumental role in productivity of the organization.
The development and management of individuals in line with their key responsibility areas not only make them an indispensable resource in the future but also ensure their hundred percent contribution towards the organization.
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The Age of Oversupply: Why the Future Would be Demanding on the Present Generation
February 12, 2025
