human capital management (HCM)

Human capital management (HCM) is an approach to employee staffing that perceives people as assets (human capital) whose current value can be measured and whose future value can be enhanced through investment.

An organization that supports HCM provides employees with clearly defined and consistently communicated performance expectations. Managers are responsible for rating, rewarding, and holding employees accountable for achieving specific business goals, creating innovation and supporting continuous improvement.

In the back office, HCM is the part of enterprise resource planning (ERP) that deals with employee records. The records provide managers with the information they need to make decisions that are based on data. HCM software streamlines and automates many of the day-to-day record-keeping processes and provides a framework for HR staff to manage benefits administration and payroll, create map out succession planning and document such things as personnel actions and compliance with industry and/or government regulations.

See also: human resource management (HRM)

This was last updated in April 2012
Posted by: Margaret Rouse
View the next item in this Essential Guide: Talent management systems quiz or view the full guide: Talent management system essential guide

More News and Tutorials

Other Essential Guides Related to This Topic

  • Making the switch to Oracle Fusion Apps
    • Oracle Fusion Applications in the news
    • What do users have to say about Oracle Fusion Applications?
    • Executive leadership commentary on Oracle Fusion Applications

There are Comments. Add yours.

TIP: Want to include a code block in your comment? Use <pre> or <code> tags around the desired text. Ex: <code>insert code</code>

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy
Sort by: OldestNewest

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

Research More Tech Terms

  • Search thousands of tech definitions
  • Browse tech definitions
    Browse Alphabetically:

Powered by

File Extensions and File Formats

File Extension and File Formats List:

Powered by