Human Capital Management:

In recent years there has been a dramatic shift in the way labor is pooled across the globe. The influences of technology and growth have effectively caused industry leaders to have to change their focus from the brute force of labor to the actual quality of the workers available throughout the world. This has produced a shift in tactics for those who manage Human Resources. Instead of gathering up workers in a huge net and sending them off to the fields and the factories, it is now necessary to nurture the working population by educating them and developing their technological skills so that they will be able to contribute to the needs of the enterprises they work for.
It is important today that companies understand the value of increasing a laborer’s output capability by investing in, and adding worth to, his or her abilities, rather than finding a mass of laborers who are willing to work yet who are unqualified to excel in today’s highly technological business environment. Simply put, the idea is that, contrary to the old HR theory that emphasized people as the most fundamental asset to a company, Human Capital Management, or HCM is focused on the right kind of people to get the job done.
Indeed, the theory behind Human Capital Management is first and foremost the transformation of a worker into a resource that is competitive.