Small Business Glossary and Definitions

Human Capital Management is a management practice that recognizes employees as Human Capital, an asset that can be developed and measured to produce success.

The practice of human capital management takes the organization’s goals and seeks to align its staffing by acquiring qualified employees, providing opportunities to enhance skill sets and performance, and optimizing organizational structure to produce the highest results.

Human capital management elevates the function of human resources to a broader management toolset within an organization. By tailoring employee acquisition, training, support, and compensation to address specific aspects of organizational structure and management, an organization can optimize performance, increase employee satisfaction and retention, and increase the probability of achieving and surpassing organizational goals and objectives.