HUMAN CAPITAL MANAGEMENT: THE NEW COMPETITIVE APPROACH

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.