Human Capital Management Benefits

Human Capital Management Software  October 8, 2012 – 08:54 am
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Human capital management refers to the managing of employees in a company as human assets. This means that the value of an employee is calculated and thus effects any decisions that are made on this employee. The evaluation of the employee is usually done every year and this is also to evaluate the progress that an employee has made within a company. HCM also determines the investment that an employer is willing to put into this employee in the future.

HCM is in fact not a new concept, but has been used by companies for many years. The difference from now to then is that HCM has become an automated program. This essentially means that almost all human input into the evaluation of an employee is eliminated. In the past an evaluation of a certain employee could be corrupted, due t biased nature of the human being.  Although the information is still put into the system manually, it is done by the human resources department, which in most cases has no contact with the employees at all.

The Human Capital Management software helps employers to make choices in regards to many different aspects of their companies. Performance appraisals are one of the many aspects of the HCM system, as this help the employers to determine the progress that an employee has made over the last year in the company. For many employees, this is not a pleasant part of the year as it can point out all the shortfalls in their career, although this is constructive criticism it does in most cases determine the bonus that an individual will receive at the end of the year.

Source: Human Capital Management

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