Human Capital Management – Achieving Added Value through People

Citation

Cattell, A. (2007), "Human Capital Management – Achieving Added Value through People", Industrial and Commercial Training, Vol. 39 No. 7, pp. 401-402. https://doi.org/10.1108/00197850710829139

The CIPD credentials of both authors, and Michael Armstrong's pedigree as an author of note on Human Resource Management and Performance Management and as an independent management consultant infer that this book will be a well researched but practical text. Readership should include both those who seek an informed introduction to Human Capital Management (HCM) as well as managers and HR practitioners who seek to enhance their knowledge through the medium of up to date case‐studies and practical suggestions.

The authors state that “ The prime object of the book is to provide a practical guide to how HCM policies and practices can help to deliver added value through people while continuing to meet their aspirations and needs”.

The text is divided into three Parts. Part 1 covers the definition, concepts and elements of, and aims of Human Capital and Human Capital Management and a broad description of how the HCM process works. Part 2 describes the practical application of that process with regard to such activities as data collection, measurement and reporting. It also identifies case studies and a range of approaches to analysis including the Balanced Scorecard and People and Performance models, whilst also making tangible links to HR Strategy Formulation, Learning and Development, Talent Knowledge, Performance and Reward Management. Part 3 examines the role of HR in HCM, the skills required to perform that role and the future of the HCM concept. A detailed HCM Toolkit is provided as an Appendix for readers considering developing HCM in their organization.

References are up to date and suggest a range of further reading including CIPD research for those wanting to study the subject more deeply. Chapter 5, Measuring Human Capital in particular gives the reader examples of methods and approaches from a variety of firms, thus grounding the concept in the reality of the workplace. The text is neither hugely academic, nor totally based on practice but finds a nice balance between the two and as such is eminently readable. Whether you are a fan of the concept or not, the authors make a potentially complex subject that bit simpler for the reader. A gap in the marketplace for a book on this subject area has existed for some time. In writing it the authors have provided the reader with a text that will broaden perspectives and enhance knowledge as to how to achieve a closer match between the harder aspects of HR employee asset management and the softer aspects of actually valuing employees for their skills and knowledge.