Synopses & Reviews
The field of Human Capital Management (HCM) concerns itself with a company’s most important asset: its people. This book suggests ways for companies to improve performance by implementing HR and business strategies derived from HCM. Drawing on results of case studies from the Chartered Institute of Personnel and Development, a leading UK professional organization, this book offers expert advice on how organizations can apply HCM to maximize performance. It also includes a comprehensive toolkit that enables organizations to introduce HCM effectively.
Review
"[A] comprehensive guide to human capital management for HR managers and more general senior managers alike." - Rapport
Review
"Provides a practical guide to how human capital management policies and practices can help deliver added value through people while continuing to meet their aspirations and needs." - Journal of Economic Literature
Synopsis
Human Capital Management (HCM) has recently been described as a high-level strategic issue that seeks to analyze, measure and evaluate how people policies and practices create value. Put simply, HCM is about creating and demonstrating the value that great people and great people management add to an organization.
This unique book describes how HCM provides a bridge between human resource management and business strategy. It also demonstrates how organizations can use the concepts of human resource management and the processes involved to enhance the value they obtain from people while continuing to meet their aspirations and needs.
Baron and Armstrong explain how to achieve these objectives using various approaches including describing the concept of HCM and how the process works, discussing its application in numerous areas within an organization and examining the role of HR in HCM and the future of the concept.
It also contains a toolkit which organizations can use to develop their own HCM policies and practices.
Synopsis
Aimed at human resources practitioners, this volume explains how managing human capital impacts business performance and profitability. Baron and Armstrong discuss the concept of human capital management (HCM), describe how it works in practice, and identify the specific skills HR specialists need in order to deliver effective HCM. The appendix includes a toolkit” that organizations can use to develop their own policies.
About the Author
Angela Baron is an adviser at the UK's Chartered Institute of Personnel and Development. Her areas of expertise include resourcing and organizational development.
Michael Armstrong is Joint Managing Partner of e-reward and former Chief Examiner of the Chartered Institue of Personnel and Development (CIPD). His books have sold over 500,000 copies worldwide and are translated into over 20 languages. Among them are Armstrong's Handbook of Human Resource Management, Armstrong's Handbook of Performance Management, Armstrong's Handbook of Management and Leadership and, with Duncan Brown, Strategic Reward (all published by Kogan Page).Table of Contents
Part 1 The essence of HCM
1 The concept of human capital
Intellectual capital; Human capital; Social capital; Organizational capital; Practical implications of intellectual capital theory; Conclusions
2 The concept of HCM
HCM defined; Aims of HCM; Rationale for HCM; HCM and HRM; The concept of human capital advantage and resource-based strategy; Conclusions
3 The process of HCM
HCM drivers; The HCM journey; Human capital measurement; Human capital reporting; Drawing conclusions; Getting into action; Putting it all together; Developing HCM
Part 2 The practice of HCM
4 Human capital data
Overall considerations; Types of data; Problems with data collection; A guide to data management; Conclusions
5 Measuring human capital
Measurement issues; Classification of measures; Developing measures; Approaches to analysis; Analytical models; Examples of approaches to measurement; Conclusions
6 Human capital reporting
Internal reporting; External reporting; Conclusions
7 Applications of HCM
The link between HCM and strategic HRM; HCM and talent management; HCM and learning and development; Knowledge management; Performance management as a source of human capital data; Reward management; Supporting and developing line managers
Part 3 The role and future of HCM
8 The role of HR in HCM
The business partner concept and HCM; HRs role in developing, analysing and using human capital data; The role of HR in enhancing job engagement and commitment; The strategist role; Making the business case; Working with the other functions
9 The skills HR specialists need for HCM
Closing the skills gap; Developing a new template for HR; HR versus line manager skills;
Conclusions
10 The future of HCM
The virtues of HCM; Question marks about HCM; The link between HCM and business strategy; Establishing the link between HR practice and business performance; Understanding and fulfilling the needs of the investment community for better information on intangible value; Convincing senior management; Enlisting the interest and involvement of line management; Convincing HR specialists; Staged development of HCM; Developing the HCM skills of HR specialists; The meaning of added value; What is meant by regarding people as assets; Selecting the measures; Analysing and evaluating the data; The future of external reporting; Conclusions
Appendix: The HCM toolkit
Purpose of the toolkit; What is an HCM approach?; Do we need to adopt an HCM approach?; How do we adopt an HCM approach?; Introducing HCM; Decide HCM goals; Decide areas to be covered by HCM; Identify measures required and available; Develop internal reports; Develop external reports; How do we operate HCM?