Human Capital Management Essay

It is beta for HR Management in managing the experience slap-up of an giving medication and aligning it with cheeks strategic mean. Critic all(prenominal)y assess the strategic image of HCM and challenges of managing the experience heavy(p) in an organization that you ar familiar. The organization that I would like to choose is Jabatan Pelajaran Negeri Terengganu (JPNT). JPNT exists of much than 400 contriveforce and this agency is obligated for administrative and policy executi atomic number 53r of Ministry of Education in the whole Terengganu. In JPNT, t here(predicate) is a puny unit of serviceman Resource Department and this department has 20 provides.However, until the final stage day of my service there, the HR department did not establish each single policy about valet heavy(p) focal point. accordingly I pull up stakes attempt to answer this question while recommending what should be through with(p) by JPNT to succeed in maximize their homosexual cap ital. Before we dis by nature further the strategic role of HCM and challenges that had to be overcome by HCM specialist, let us look at the technical definition of this question. fellowship capital is defined by Business Dictionary as the know how that results from the experience, information, familiarity, acquire, and skills of the employees of an organization.Of all the factors of production, knowledge capital creates the longest lasting matched advantage. It may consist entirely of technical information or may reside in the actual experience or skills acquired by the individuals (BusinessDictionary. com 2012) . Knowledge capital is an internal comp iodinnt of human capital. Human swell is defined by (Baron and Armstrong 2007) as the knowledge, skills, abilities and capacity to develop and innovate possessed by people in the organization. This is one of the attri exclusivelyes of the intellectual capital. talented capital is defined by the compar fit author as the stock s and flows of knowledge avail adequate to(p) to an organization. It is categorized into three categories videlicet human capital, social capital and organizational capital. These capitals be usually feature with the physical resources which be the financial and physical as qualifys for the purpose of treasure unveiling to the unbend equal. As cited by (Sveiby 1998)Tom Stewart who in his June 1991 article Brain Power How Intellectual Capital Is Becoming Americas Most Valuable Asset, proposed the impressiveness of intellectual capital to the management agenda.He defined intellectual capital in his article as the sum of everything everybody in your company knows that gives you a matched edge in the market place. Knowledge Management consists of managerial activities that focus on the maturation and control of knowledge in an organization to fulfill organizational objectives. (Sveiby 1998) Therefore it content that the integration of all management activities that focus on development and control of knowledge is what we call as knowledge management.Challenges of managing knowledge capital in JPNT result be easygoing unitedly as I explained about the role of HCM in the organization. Knowledge management is defined as the abut of storing and sharing the wisdom, at a lower placestanding and expertise accumulated in an organization about its processes, techniques and operations (Baron and Armstrong 2007). Therefore, the info that should be synthesized and acquired should explain the organizations activity for spokesperson the achievement of the employees in knowledge sharing among them and ensure that the knowledge is maximized in lines of its usage.Everybody must(prenominal) sh atomic number 18 their skill, knowledge and experience without any malicious intentions for the purpose of maximizing the performance of JPNT. However, it brings challenges to HR specialist in JPNT as it is not a culture of sharing. Some of the staves afraid to share th eir know how because they thought that by doing so, it might jeopardized their career envelopment in the future. HR specialist overcomes this by implementing a fair assessment indicator to cake their performance without favoritism, nepotism and biasness.In my opinion, the most important attributes that learn Human Resource (HR) with Human Capital Management is the element of the actors as assets. As discussed by (Baron and Armstrong 2007) human capital conjecture emphasized on regarding people as assets of the organization, and investment in people impart generate long run return. Scarborough and Elias noted that human capital speculation is similar to physical capital speculation but they differ in terms of the reference for human capital possible action is made to people and skills while in physical capital theory reference is made to plant and equipments.Both emphasized on think of creations to firm. Thus by applying this theory, JPNT demand to redefine the cost associat ed with genteelness and development and career progression as the investment that will create mensurate for the agency. Staff that undergoes training must be ensured that the new skills matched with their crease exposition and the staff is using that new knowledge in order to efficaciously execute their job. For instance, the weekly training is not supposed to be do by the JPNT if on the purpose of fulfilling the quotas of training hours.Remuneration is not under JPNTs jurisdictions however JPNT throw out recommend the salary of their staff to PSD (Public military service Department). Accepting staff as the asset of the organization will be mutually benefit to both parties involved. On the employees part, they will be feeling much motivated, appreciated so will contribute break-dance in their performances. As for the organization, it will boost the overall organizations performance, decrease turnover rate, absenteeism and early(a) negative behavior of the staffs.Howeve r this theory is not agreed by some scholar for instance Davenport(1999). Davenport argued that worker must not be treated as assets because of three briny reasons. The first reason is workers finishnot be brought, sold and replaced by their owner. Secondly, the principle of this theory is unacceptable and inappropriate in practice is because workers cannot be owned by the firm as the firm owned plants and machines. Lastly, there is not autocratic way of calculating human value-no convincing method of attaching financial value to human resources.Therefore, treating workers sorely based on assets can create drawback to the organization. The rendition of this concept should be made carefully and it should match with the objective of the organization. It is excessively not an easy task to convince the elevation management since the culture of bureaucracy is very strong in JPNT. The next part, I will discuss about the strategic role of HCM. HCMs role as stated in the book Human Capi tal Management by Baron and Armstrong, HCM acts as billet partner of the firm.Secondly, they are also responsible in developing, analyzing and using affair data. Thirdly, they are also responsible for enhancing job particular date and commitment, fourthly, they are responsible to build Business Case and lastly, they are also responsible for engaging with the other function of the organization. (Baron and Armstrong 2007)These points will be elaborated one by one in below. For the first one HCM acts as the cable partner with the top management of the organization.This concept was introduced by Ulrich in 1998 where the author proposed that HR specialist should be share duty with management people to run the business. They must withdraw the ability to understand and exploit opportunities and HR specialist themselves must understand how their role could help in achieving the objective of the organizations. Ulrich suggested that in order for the organization to create value, HR prof essionals must carry out their responsibility as strategic partners, administrative experts, employees advocates and as driver of changes.This can be done through schema execution, improved planning by thorough handling on how the firm should be organized to carry out the strategies. HR engagement with operate and marketing function is essentials in ensuring that all of their initiatives will belong triple-crown by answering the following issues- whether the initiatives is best aligned with strategy implementations, they recognise selection based on priority, and lastly the evaluations of the initiatives should be indicate positivistic linkage to business result.HR specialist must act as employee advocate, human capital developer, functional expert, strategic partner and lastly as leader in terms of HR function. However, the premise HCM act as business partner did not agreed by all practitioners. Tim moth miller and Alex Wilson reported by Smethurst(2005) and Pickard(2005) a re the examples of the top management who disagree with this premise. convince the top management will not going to be easy. quiesce HCM emphasized on the importance of evaluation of what had been happen inside the organization and it also proposes basis for value adding strategist.Therefore, according to this theory, HCM in this case the HR specialist in the human resource department should work together with the top management of JPNT in ensuring the creation of value to the firm. The value that we meant here is creating competitive human capital that at the end of the day this human capital will be able to serve successfully to their customers thus deliver excellence business service for the organizations. Secondly, HR is responsible to develop, hit the books and use human capital data.The measurements that must be developed by HR should be able to measure issues relating to workforce, capable of quantity the levels and trends in performance achieved by both individual and b usiness, can measure the preserve of HR policies and practices on business performance or what Mercer HR Consulting called as Business Impact Modeling. It is also expected that HR should be able in building an effective measurement to measure the effectivity of air manager in applying HR policies and the measurement tools should be able to measure the effectiveness of HR function (Baron and Armstrong 2007).The workforce matrix should provide data which allows the business to measure the key characteristics of the people it employs. Understanding the birth between workforce matrix and people management is very important because the workforce matrix focus on the influences business performance and target the business of what contain to be done to improved the added value from human capital resources. Therefore, HR cannot simply gain data without proper implementations of specialized procedures and standards because gaining accurate data will never be easy.The data trueness will face the current situation and trends of human capital within the organizations. In JPNT, the typical tool to measure the human capital is key Performance Indicator (KPI) in human resource department conjecture the organizational goal. They matched the number of training and types of training according to the need of the staff. Therefore KPIs adopt by Human Resource department is quantitative they are defined in terms of the feedback that they gain through hold out training survey. This KPI however is not emphasized on skills retention that the staff gained on the training.They are not focus workers as the assets of an organization therefore, I think there are a lot of improvement needs to be carried out to improve this measurement method. Next, is on the aspect of measuring the overall performance. Human Resource department use Balance hold Card that is developed by Beatty et. Al (2005) to measure them. Balance rank Card highlighted four important aspects which are customer perspectives, internal perspectives, innovations and learning perspectives and lastly the financial perspectives.This scorecard focuses on equilibrate representation and synopsis of data. In HR, four dimensions are being highlighted which are HR competencies, its practices, systems and deliverables. On the aspect of financial performance, the HR department always runs cost benefit analysis to choose the best trainer to train their staff or just simply using the internal sources that they have. Productivity is measure when the training course that undergo by the staff is beneficial and the new knowledge are continuously used by the staff.The operational impact or effectiveness is measure for instance creation of successful training course to the staff and when the staff perceived such programs contribute to their career developments. Lastly, is in terms of customer service. Through continuous training programs, the staffs become to a greater extent skillful in treating the custome rs thus more of them will be delighted. metre the impact of HR policies and practices are one of the toughest roles of HR specialist. This is because it is hard to match causation-what actions or factors that are specially cause the performance (Baron and Armstrong 2007).Genome II is a model that was developed by National Building fiat proved statistically that the more committed the employee, the happier the customer will. Genome project had focus on recruitment and retention, deeper understanding of the commitment of the employees, abide by system that is more transparent and flexible, increase the effectiveness of the execution on the first line management, promotes recognitions, and develop a culture where both managers and their subordinates demonstrate right behaviors. decoct area of GenomeII could act as a benchmark to be use in JPNT. Effectiveness of the line manager could be improved with the intervention HCM (Bohlander and Snell 2010). Guidance, help and further train ing is available in case where they need them. With this, it was hoped that line managers can carry out their people management responsibilities effectively. For instance if the line manager of JPNT encounter any unsolved problem or the problem is not routine, they can always refers to HCM specialist to guide them.Human resource should be measure to indicate whether they are executing their role and meet the target of their department. Tsui and Gomez-Mejia (1998) cited in (Baron and Armstrong 2007) had clarified the distinction between process criteria- how well things are done and output criteria- the effectiveness of the end result. To distinguish them, utility approach by Boudreau(1998) can be applied.Beside this approach, HR performances can also be measured using points suggested by Likierman (2005) that the budget allocation is in line with HR objectives- means HR has a order in changes in implementing the strategy, analyze and interpret the reason behind it, canvas internal and external benchmarking, enhance the usage face to face discussion to gain the feedback, and lastly the measurement should not expect to measure something that is impossible, and they should be noted that many problems just being mitigated, instead of being solved, and this is noisome to the JPNT.Another important role of HCM is in the terms of promoting job engagement and commitment. Job engagement happens when people are willing to commit to their work and willing to perform excellently in their job. Hay Group defined engage performance as a result that is stimulated by employees enthusiasm for their work and direct it to the success of the organizations. On the other hand, organizational commitment is defined as the recognition of goals and values of the organization, a sense of belonging to the organization and willingness to contribute effort for the organization (Baron and Armstrong 2007). presidency commitment and job engagement can be created by JPNT if JPNT set a great place to work, HR people promotes positive arbitrary behavior, create excellence total reward policy and constantly measure job engagement and commitments. JPNT should provide conductive working environment- comfortable in nature, ergonomics, make sure that the job prospect is parallel with training, appraisal, and the superior staff should take care of the welfare of their subordinates.JPNT can adopt the criteria suggested by The sunlight Times in rateing the best 100 companies which are leadership of cured management level, good relation with their superiors, have the opportunities of personal growth and developments, balanced work-life issues, cooperativeness between colleagues, my company- the way JPNT treats its staff and lastly the fair deal- stipend and benefits are provided to all, without nepotism and biasness.The superior should also act in discretion vogue it means that not everything must be solved black and white. For instance, if one of the subordinates absent fo r their work with a concrete reason, the superior should not penalise he or her. Reward is categorized into two which are transactional reward (tangible reward-the pay and benefits) and relational reward ( intangible asset reward-learning and development and work environment). That is the responsibility of HR to create the best reward model that can motivate their employees in the future.The tangible reward is easily to be copied by the competitors as everyone have the capability to pay and gives benefit for instance dental plan, but the intangible reward it harder to be imitated thus increase the chances of sustaining the firms competitive advantages. Next, another(prenominal) role for HR professionals is as strategist. Strategist here means HR professional should be able to address long term issues related to management and development of people and the employment relationships.This role is distinctly demonstrated when HR professional are being regarded as business partner- they have the persuasion power to influence the top managers to develop business strategies that are maximizing the potential of human capital. (Baron and Armstrong 2007) As we discussed earlier, people are the assets of the organizations, thus they are one of the resource to achieve and sustain competitive advantage of JPNT HCM is also responsible to develop a good business case. Baron and Armstrong 2007) As I discussed previously, HR specialist should be able to persuade top management, a good business case can act as one of the convincing evidences on why the top management should agree to HR specialists proposals. The case should show how the purposed course will add value in terms of income will exceed the cost or by executing the proposal, it will replication positive return on investments (Bohlander and Snell 2010).The business case should present on how the available human capital data will impact on key areas of organizations operation, show how it will the proposal will incre ase the business competitive edge, or presenting a successful original projects to be employ to the entire organization, the proposal can be implemented without much hassles, it will also able to enhance the employers defacement by promoting JPNT as the best place to work and lastly the points, data are presented in neat manner, simple and easy to understand.Challenges for managing knowledge are knowledge acquisition, knowledge modeling, knowledge retrieval, knowledge reuse and knowledge maintenance. In JPNT it is hard to get the information needed and turn the information to become useable. For instance, it is hard to transform the tacit knowledge to become explicit knowledge, to identify the gaps in knowledge, and difficult to acquire and integrate the knowledge that is cross departmental and different expertise.Therefore, it is important for the HR specialist in JPNT to be able to create an approach that is able to integrate all knowledge in the organization so that it can be benefited to all. On the top of that, knowledge modeling is also can be another obstacle for HR specialist in managing knowledge capital in the organization. The challenge that is approach by JPNT HR specialist is how to use the knowledge available in solving problems because knowledge possessed by staffs are varies from one another (Bhojaraju 2005).To overcome this, HR departments had introduce mentor and protege program. As a conclusion, the roles that are played by HCM are indeed complex and requires HR specialists to be able to multitasking, possessed multidisciplinary of knowledge and wide range of skills to execute their roles dead thus enable them to overcome the challenges of managing knowledge capital in JPNT. contribute managements should also give full cooperation in favor of HCM so that the usance of knowledge capital in JPNT could be maximized.