Saturday, 4 May 2013

Confusing of Human Capital and Human Resources term

Hello Folks! I'll back with the new (i hope) informative lecture review for you all! Again, this is for my Industrial Psychology task about the HCM and HRM. What does those term means? Yeah maybe in this 'serious topic' i'll try to be an informative blogger than a spam blogger. Okay, in this review i want to (maybe try) to explain some terms which is exist (more than just EXIST, i mean) in your office. Honestly, almost employee in my office think the same with me with this creature (oops sorry, i'm scared it's gonna be a vulgar post). They're sooooooooooo damn creepy, annoyed, liar, deceiver, not transparent, unfair etc etc etc. Mmm yeah that's only an employee's point of view about them in my working environment. Sometimes i think their jobdesc are really cool, when they seems to have almost authority in a company even they'll be the most ******** person in the workplace. Okay, before this post becoming too spam, i'll be explain who they are actually (as a human resources).

The HR Point of View

Theoritically, i'll explain about what the ORGANIZATION means where the HUMAN CAPITAL MANAGEMENT and HUMAN RESOURCES MANAGEMENT do their own 'mission'

Based on, Organization is a social unit of people that is structured and managed to meet a need or to pursue collective goals
All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems, they affect and are affected by their environment. You can see this figure below.

The Diagrams


HRM is a policy to determine the human resources aspects as management position in obtaining process, training, evaluating, and give compensation to employees, pay attention to their employment, health, security, and for their justice (Garry Dessler) while from John M. Ivancevich is a program that involved effectively by people-employees to facilitate them to achieve  the organization and individual purpose.

HCM is an effort to manage and develop the manpower to gain the higher performance significantly (Chatzkel) and from the Kearns point of view is to create a value through person and this is a philosophy of human development.

We can conclude that HRM and HCM is also manage all of employment aspects based on management functions.

and how about the DIFFERENCE...

HRM and HCM By Gunawan Tjokro:
- From paradigm side, HCM assumed HR as organization key source while HRM is assumed as a supporting power.
- HCM focused itself in strategic steps to maximalized talent for creating value that can direct and accelerate the business strategy while HRM focused on adding value to make sure that HR supporting the implementation of business strategy.
- From the measurement of the effectiveness of HR on achieving the organization. HCM consider importantly   the effectiveness level of human capital management in achieving to organization. That's why measurement tools development on HCM becoming important. Comparing to HRM, contribution measurement is actually exist but doesn't as strong as HCM.


Garry Dessler, Manajemen Sumber Daya Manusia Jilid I ( Jakarta, PT. Indeks, 2006), hal 5

John M. Ivancevich, Human Resource Management (Mc Graw Hill, 2007), p. 4.

Chatzkel JL, Human Capital: The rules of engagement are changing, Lifelong Learning in Europe, 2004, p. 139.

Kearns, P,  Human Capital Management, Reed Business Information, Sutton, Surrey, 2005

1 comment:

  1. Informative post! I really like and appreciate your work, thank you for sharing such a useful information about human capital management system strategies, keep updating the information, hear i prefer some more information about jobs for your career hr jobs in hyderabad .