The Purpose Of Human Capital Management

2177 Words9 Pages
1. Introduction The purpose of Human Capital Management (HCM) in organisations is to achieve business objectives through the work force in the most effective & efficient manner. This comes combined with challenging aspects of retaining knowledge & talent plus ethical dimensions of looking after people. This document explores strategies to increase employee motivation & retention by using classical & contemporary theories of how to increase employee engagement, productivity & improve company climate based on the chosen business called SuperVAR (Company Profile - see Appendix). 2. Theory Motivation is to achieve a desired outcome such as completing a task or project quickly and to a high standard for reward and recognition through enthusiasm. What motivates employees at work? According to Herzberg et al, 1957 - the happiness of staff at work depends on the existing working conditions, the status of the job and the pay and benefits package. While these so called hygiene factors keep workers satisfied initially, only if the work is challenging, efforts are rewarded and responsibility is given does it lead to long term motivation. For this to work, the company needs to create policies and practises that encourage motivation and performance. Team motivation is more difficult compared to motivating a single individual because every team member shares different beliefs, goals and values. To motivate a team, a sense of togetherness and belonging is required. To achieve this, mutual
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