Abstract:
The aim of this paper is to highlight conceptual framework of the term human capital
management (HCM) and to make a case that HCM can ensure competitive advantage for an
organization. The concept of human capital is concerned with the added value people provide
for organizations. It emphasizes that competitive advantage is achieved by strategic
investments in those assets through employee engagement and retention, talent management
and learning and development programmes. Data for this study by and large relies heavily on
the review of available literature. The result of this study highlights the value of human capital
(HC) and its strategic activities which have an influence on organizations performance and
competitive abilities. The most important limitation of this paper was to use data from secondary
sources that might limit the generalizability of the results.
