HCM to HRM, What is the difference!

Human Capital Management (HCM) and Human Resource Management (HRM) are related but distinct concepts in the field of managing and developing human resources in organizations.

Human Capital Management refers to the processes and systems used to manage and optimize the performance, development, and engagement of an organization's workforce. This includes managing talent acquisition, employee development, performance management, and compensation. The focus of HCM is on the overall value and contribution of an organization's human capital to the success of the business.

Human Resource Management, on the other hand, is a more traditional term that refers to the administrative and operational functions related to managing people in an organization. This includes activities such as payroll administration, benefits administration, and employee relations. The focus of HRM is on ensuring compliance with laws and regulations and maintaining a stable and productive workforce.

In summary, HCM is a more strategic and holistic approach to managing human resources, while HRM is a more operational and administrative approach. With the increasing importance of human capital to the success of organizations, HCM has become a more widely used term in recent years.