Home' Trinidad and Tobago Guardian : September 17th 2013 Contents To understand the meaning of human
capital management let us first find out the
meaning of "capital".
Capital refers to already produced durable
goods which further contribute to the pro-
duction of goods and services. In simpler
words, capital refers to any produced
good/service which enables an
individual/organisation to deliver high quality
output. Capital acts as a catalyst to increase
productivity in organisations.
What is human capital?
Employees are the lifeline of an organ-
isation. An organisation can t survive if there
are no employees.
Organisation runs with the help of indi-
viduals 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 organisation. Employees
ought to be motivated from time to time
so that they develop a sense of attachment
towards their organisation and also deliver
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 organisation.
Knowledge and expertise which employees
develop in due course of time to further
increase the productivity of organisations
refer to human capital.
Every employee tries his level best to
sharpen his/her skills during his stint with
the organisation. 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 organisation.
Every organisation 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 organ-
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
What is human capital
Human capital management refers to
managing an organisation s employees for
them to contribute significantly in the overall
productivity of organisation. In a layman s
language managing workforce of an organ-
isation refers to human capital manage-
Human capital management is defined
as the process of acquiring, training, man-
aging, retaining employees for them to con-
tribute effectively in the processes of the
In simpler words, upgrading the existing
skills of an employee and extracting the
best out of him/her refers to human capital
Human capital management has more to
do with how organisations treat their
Do not treat your employees as mere
labours. Senior management must ensure
timely growth and development of every
individual concerned for him/her to con-
tribute efficiently when required.
The key objective of every organisation
should be to train its employees so that they
become efficient resources later on. In
human capital management, organisations
treat their employees as important resources
that play an instrumental role in productivity
of the organisation.
The development and management of
individuals in line with their key respon-
sibility areas not only make them an indis-
pensable resource in the future but also
ensure their 100 per cent contribution
towards the organisation.
Guardian www.guardian.co.tt Tuesday, September 17, 2013
Human capital management
1. Leadership Practices
Communication: Employees must be treated well for
them to develop a feeling of attachment and loyalty
towards the organisation. Managers must understand
that their role is not just to sit in closed cabins and impose
ideas on others. They ought to communicate well with
their subordinates. Employees must have an easy access
to the senior management. Communication from man-
agement to employees also known as Top down com-
munication is essential for the employees to be aware
of their goals and objectives and for them to know what
is expected out of them.
Inclusiveness: Management ought to sit with employees
on a common platform to invite suggestions and feedbacks
Supervision: Senior executives and management must
reduce the various levels of hierarchy between them and
employees . Management must interact and motivate the
employees from time to time for them to give their level
Leadership: Senior executives should support, lead
and influence the workforce so that they contribute effec-
tively towards the organisation.
2. Employee Engagement
Key Responsibility Areas: Key responsibility areas of
an individual should be designed in line with his education,
skills, expertise, experience and also area of interest. This
way, work never becomes a burden for him.
Commitment: Outstanding efforts of employees must
be acknowledged for them to feel motivated and work
harder even next time. Employees performing well ought
to be suitably rewarded and appreciated in front of oth-
ers.Time: Time management ensures that no employee
is overburdened. Responsibilities must be equally shared
Evaluation: Employee engagement must be evaluated
from time to time by the top management.
3. Knowledge Accessibility
Information Availability: Employees must have an easy
access to all relevant information required to perform
their duties. Organisations must organise various training
programs (In house Trainings or Out sourced trainings)
to constantly upgrade the existing skills of employees
and acquaint them with new learnings.
Team Work: Employees must be motivated to work
in teams rather than working alone.
Information Sharing: Encourage employees to share
information with each other.
4. Workforce Optimisation
Human Capital Nanagement (HCM) Practice
Work processes: Senior management must define
work processes of employees well for maximum pro-
Working Conditions: An organisation needs to provide
excellent working conditions to the employees to expect
the best out of them.
Accountability: Individuals must be held accountable
for their work. Get a commitment from employees and
nothing like it, if everything is in writing.
Hiring: Individuals responsible for talent acquisition
must ensure that they hire the right candidate for the
right role. Design a strong induction program for all the
newly joined employees.
5. Learning Capacity
Innovation: New ideas should be welcome. Employees
must be encouraged to come out with new and innovative
ideas which might benefit the organisation.
Training: Trainings must be practical/relevant and
designed to sharpen the skills of employees. Do not
design training programs just for the sake of it. They
must benefit the employees.
Career Development: Employees must be aware of
their growth plan in the organisation.
Learnings: New learnings should be valued by all in
Links Archive September 16th 2013 September 18th 2013 Navigation Previous Page Next Page