HUMAN CAPITAL MANAGEMENT

An Introduction

Jakarta, 23 April 2015

PERSONNEL MANAGEMENT

Concerned with the administrative tasks that have to do with managing an organization, such as record keeping and dealing with employee wages, salaries and benefits

HUMAN RESOURCES MANAGEMENT

HR planning, job analysis, recruitment and selection, employee relations, performance management, employee appraisals, compensation management, training and development

HUMAN CAPITAL MANAGEMENT

HCM is about creating value through people - anything is translated into value. It is more likely to have better economic results. HRM and HCM simply treating people as assets - in HCM, people are value adders, not overheads.

HCM vs HRM

HRM = People Management + Talent Management

HCM = HRM + Rupiah produced

Employer wants to see a return on their investments.

Process to recruit, retain, and develop the most talented and superior employees 

TALENT MANAGEMENT

most people realize less than 10% of their potential.

54% of CEO’s acknowledge that senior management spends insufficient time on talent management

You should always demonstrate the impact you have had in the roles you have held…not just a statement of what you did.

91% of organizations challenged to identify high potentials early in their careers

Value vs Destination

What Barriers Operational People to Become a CEO? (Compared to Finance People)

What Makes Soccer Player Expensive?

Economic

Value

Attract Money

Human Capital is a measure of the

economic value of an employee's skill set. It’s about capacities

of an employee, wheather or not,

have an economic impact for employer.

DEFINITION

HCM MATRIX

Activities

InnovationCareer Plan, Workload PlanTraining, Continue EducationTrainer, e-LearningTask, Project, SuccessionRecruitment, WorkforceCompetency Test, Balanced Scorecard

HCM OUTCOMES

Profit/Loss

PromotionSalary Increment

Demotion

HCM: DAILY FACTS