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Presented By:Ravi Kant & Rohit Singh ABV-IIITM, GWALIOR

HUMAN

CAPITAL

HUMAN CAPITAL

The success of any company will depend on its ability to understand how human capital links to its performance and its wealth Human Capital Management helps organizations analyze workforce strengths and vulnerabilities, while surfacing opportunities and strategies that allow business leaders to proactively manage human capital

HUMAN GAINS CAPITAL BY APPLYING HUMAN CAPITAL

People are assets whose value can be enhanced through investment

Human capital approaches should be designed, implemented, and assessed by how well they help the organization achieve strategic results and pursue its mission

Recruitment

Hire Employee Training and Development

Cost Planning Reporting

ESS
Employee Self-Service

Manage Work Time

Payroll Administration

Compensation & Benefits

LEADERSHIP

ALIGNMENT

ACQUIRING TALENT

EMPOWERING EMPLOYEES

36% revenue spent on Human Capital Expenses but only 16% express anything more than a moderate understanding of RO(HC)I CFOs see HC as a key Value Driver

92% link it to Customer Satisfaction 82% link it to Profitability 72% link it to Innovation and New Product Development

49% report that investors are beginning to ask about HC issues 23% report Boards involved in HC issues

Few (38%) explicitly consider Human Capital Value when making layoff decisions Measuring and quantifying the Human Capital Value remains an intractable issue HR information technology appears to have not delivered as much as expected in terms of helping to manage and quantify Human Capital issues
Source: 2010 Mercer Human Resource Consulting LLC - www.mercerhr.com

Human capital is an intangible asset as it is not owned by the firm that employs it. Basically, human capital arrives at 9am and leaves at 5pm. Human capital when viewed from a time perspective consumes time in one of key activities: Knowledge Collaboration Processes Absence

Human Capital Improvement (ROI)

Change Over 10 Years (2001-2010)


S & P 500

NASDAQ

Change Over 10 Years (2001-2010)

DOW

100

101

102

103

104

105

(In Percentage)

TAKING MEASUREMENT

REPORTING THE MESUREMENT

DRAWING CONCLUSION ABOUT THE SIGNIFICANCE OF MEASUREMENT

USING CONCLUSION AS A GUIDE TO FUTURE ACTION

Define your overall strategy Assess current HCM practices

Implement

Redesign critical HCM practices

Assess current culture

Develop plan to address the gaps

Identify the gaps

Human Capital Lifecycle

Planning

Transitioning

Integration of HC strategy with org strategy (e.g, through competency -based HR system) Characterization of HRM Division

Recruiting

Competencies of HC professionals

Motivating

HC Management Roles & Responsibilities

Automation of HC capabilities

Educating

Developing Operational Components: Used to execute and implement human capital management strategies and policies

Foundational Areas: Organizations ability to manage human capital

Students from the university is creating value through:-

Imparting Practical knowledge Nurturing brain empowerment Acquiring dynamic knowledge Quality education Healthy environment

THANKS FOR THE ATTENTION

Intellectual Capital will go where it is wanted and stay where it is well treated.