, HRM4802 ASSIGNMENT 2 2026
DUE DATE: 2026
QUESTION 1
1.1 Human Capital Management (HCM) versus Strategic Human Resource
Management (SHRM) (10 Marks)
Human Capital Management (HCM) and Strategic Human Resource Management
(SHRM) are two closely related but distinct approaches used by organisations to
maximise employee performance and achieve organisational success. Although both
focus on managing people effectively, they differ significantly in their objectives, scope,
and strategic emphasis. In today's dynamic business environment, where organisations
are increasingly embracing digital transformation, remote work, and artificial intelligence
(AI), understanding these differences has become critical for sustainable organisational
performance.
Human Capital Management is based on the principle that employees are valuable
organisational assets whose knowledge, skills, experience, creativity, and competencies
contribute directly to organisational success. Rather than viewing employees simply as
labour resources, HCM regards people as investments whose value can be increased
through education, training, career development, coaching, succession planning, and
continuous learning. The primary objective of HCM is therefore to maximise the value of
employees over time by enhancing their capabilities and supporting their professional
growth (Armstrong & Taylor, 2023).
HCM adopts a long-term developmental perspective by investing in employee learning,
leadership development, performance improvement, and talent retention. Organisations
implementing HCM often use sophisticated technologies such as Human Resource
DUE DATE: 2026
QUESTION 1
1.1 Human Capital Management (HCM) versus Strategic Human Resource
Management (SHRM) (10 Marks)
Human Capital Management (HCM) and Strategic Human Resource Management
(SHRM) are two closely related but distinct approaches used by organisations to
maximise employee performance and achieve organisational success. Although both
focus on managing people effectively, they differ significantly in their objectives, scope,
and strategic emphasis. In today's dynamic business environment, where organisations
are increasingly embracing digital transformation, remote work, and artificial intelligence
(AI), understanding these differences has become critical for sustainable organisational
performance.
Human Capital Management is based on the principle that employees are valuable
organisational assets whose knowledge, skills, experience, creativity, and competencies
contribute directly to organisational success. Rather than viewing employees simply as
labour resources, HCM regards people as investments whose value can be increased
through education, training, career development, coaching, succession planning, and
continuous learning. The primary objective of HCM is therefore to maximise the value of
employees over time by enhancing their capabilities and supporting their professional
growth (Armstrong & Taylor, 2023).
HCM adopts a long-term developmental perspective by investing in employee learning,
leadership development, performance improvement, and talent retention. Organisations
implementing HCM often use sophisticated technologies such as Human Resource
