Human resource management is strategic in nature and establishes a coherent manner of handling the people working for the organization. It stresses on human potential, not necessarily the outcome of it. On the other hand, Human capital management uses various measurements as the basis for people management, and looks at them as assets, which if properly managed, will lead to attainment of competitive advantage.
Human capital management concentrates on functions and the processes that drive them while human resource management tries to decipher how these processes support the business. It comes across as a comprehensive model of management that aims at ensuring all employees are in tandem with all parts of the organization.
The basis for human capital management is the desire to institute relevant strategies for optimization of the human capital the organization possesses with the goal of improving on the organization’s development. It is difficult to distinguish clearly, whether Foschini employed Human resource management of human capital management, because of the huge area of overlap between the two.
However, the model implemented leans heavily towards human capital management. There were very clear indicators demonstrating the performance of each person in the system. There were steps taken to optimize the deployment of human capital that included transferring staff to execute roles where they had better fit. Bi-annual appraisals speak of an ordered-up process of human capital management as does the training programs regularly organized to shore up employees’ skills.
As a strategy for setting the strategic direction for any organization, human capital management plays a critical role as it allows for the optimization of human resources and provides feedback on the results obtained. Done rightly, several advantages such as a leaner staff and hence a better return on profits remains in sight. The process of change requires careful consideration and planning and hence a human capital management plan.
