Australian Catholic University HRMG308 Human Capital Presentation

This presentation explores the evolving landscape of Human Capital Management (HCM), emphasizing its significance as an intangible asset that drives organizational value. It delves into the historical evolution of HRM, from industrial-era practices to the current focus on employee satisfaction and skill development. The presentation highlights the role of HR technology, including HRIS, in optimizing workforce management, attracting and retaining talent, and improving employee performance through advanced analytics. It also explores the future prospects of HR, including the integration of AI and machine learning. The presentation references key theories like Hawthorne studies and Maslow's Hierarchy of Needs, and discusses the benefits of HR analytics, such as advanced talent sourcing and predictive analysis of ROI. It underscores the importance of aligning HCM with corporate business strategies to ensure organizational sustainability and competitive advantage.

Emerging Thinking in
Human Capital
STUDENT’S NAME:
UNIVERSITY:

HUMAN CAPITAL
 Intangible asset of an organisation, interpreted as the economic
value of employees’ knowledge, skill and experience (Noe et al.
2017)
 Emphasises values such as intelligence, knowledge, skills, health,
loyalty, punctuality and innovation (Armstrong and Taylor 2014).
 Incorporates the possibility of development, growth and change.
 Holds significance to the organisation as the means to enhance
productivity and profitability.
 Comprised of all the strata of the organisational labour, including
the managers, executives and both skilled and unskilled
employees.
 Sourced and managed by the Human Resource department of the
company.

Research on Human Capital and
Management
 Hawthorne studies:
Based on the findings of Fritz Roethlisberger and Elton Mayo, the focus
of HR shifted from employees’ productivity to employees’ efficiency
through enhanced work satisfaction.(Bendix and Fisher 2017)
 Maslow’s Hierarchy of Needs:
The theory identifies physical and psychological needs of the individuals
as the main motivation of performance and knowledge (Jerome 2013).
 Theory X and Theory Y:
Outlines the needs and methods of HRM that led traditional personnel
management approach to transform into a dynamic human capital
management approach (Lawter, Kopelman and Prottas 2015)

Evolution of
Human Resource Management
Industrial Era:
 Focus on wages and salaries, record
maintenance, housing facilities, health care
Post Industrial Era:
 Focus on skilled workforce
 Initiatives for employee motivation,
training and development, welfare and
performance based salaries
Fig 1: Evolution of HRM (Aswathappa 2013)

Stages of HR Technology
1. Paper-Based Manual System (Legacy Mainframe
System)
2. Early Personal Computer-Based Technology (PCT)
3. Electronic database Systems
4. Web-Based Technology

Current Trend in Human Resource
Management
 Employment of HR Technology indicates a paradigm shift
in the contemporary human resource management.
 HR technology is used for attracting, hiring, retaining and
managing employees.
 Every company, irrespective of its size and working sector,
relies on HR Technology for managing employee database.
 HR technology helps to manage and implement effective
strategic HR policies, reducing the administrative burden
(Noe et al. 2017).

HR Analytics
According to McIver, Lengnick-Hall and Lengnick-Hall (2018),
workforce analytics is the most significant trend in contemporary HRM
practices. Organisations are investing more effort and deliberation into
enhancing strategic planning. Therefore, to provide support, HR
departments are involved in the process as they supply employee
information.
This practice of human capital management initiates value
creation within the organization, which is in turn driven by effective HR
Analytics. The utilization of Big Data and Artificial intelligence are
creating opportunity for predictive analysis which may ensure skill
development and enhancement of employee performance(Shah, Irani and
Sharif 2017)

HR Analytics
HR Analytics refers to the process of applying analytic
methods in the field of Human Resource to improve the
employees’ performance by analysing detailed information
gathered from them. The analysis of the information about
employee skill and inclinations enables the HR department to
predict the employee performance and thus getting a better return
on investment. It also provides the scope of improving the HR
processes and the development of strategic HR policies (Marler
and Boudreau 2017).
HR Analytics help organisations attract and retain local as
well as remote talents and reduce employee turnover. It gives the
companies the chance to focus on the a people, instead of
economic benefits.

Benefits of HR Analytics
 Advanced talent sourcing process
 Employee database management
 Ensuring employee satisfaction and retention
 Performance Insight
 Optimization of employee performance
 Predictive analysis of return on investment

Human Capital Management Software
HCM Software, also known as Human Resource Information System
(HRIS), is a rapidly used application that aids HR analytics. It is a employee
database management system that helps the companies maintain and
manage their workforce.
HRIS is a combination of software that reduces the complexity of
using different systems for payroll management, timesheet software,
productivity analysis, HR database etc. It is a necessary aid to HR analytics in
terms of staffing, recruiting, planning and so on. Systems like Blockchain and
ERP are some of the examples of HRIS. (Richter et al. 2013)

Major Functions of an HRIS
Fig. 3 Functions of an HRIS, (Bulmash 2008)

HRIS Subsystems
Fig 2. HRIS Subsystem (Bulmash 2008)