Human Capital Management
Having a solid system of human capital management (HCM) in place is an essential first step for the success of any organization in any industry. In order to drive growth, maximize revenue, and minimize costs, you first must understand the functions of your technology and resources that ensure organizational efficiency. Here we’ll help you understand some of the key terms you'll come across in discussing human capital management. These definitions will enable you to better coordinate within your organization for optimal results.
At Ultimate Software, we devote 100% of our resources to the research, development, and delivery of industry-leading, continuously evolving HCM technology. Our undivided attention has made us experts in the industry—trusted advisors and business partners who can be counted on to deliver sustained excellence to our customers. UltiPro, the culmination of these efforts, is a comprehensive tool which connects payroll, HR, and talent management into a single solution that seamlessly connects people around the globe with the information and resources they need to work more effectively.
Human Capital Management (HCM) - The administrative management of an organization's people. HCM practices are related to all aspects of human resources, payroll, and talent management and are responsible for the attraction, selection, performance, development, and rewarding of employees. HCM also oversees organizational leadership and culture, and ensuring compliance with employment and labor laws.
Also called Strategic Human Capital Management, HCM, HCRM, Human Capital Management Solution, and Human Capital Management System.
Check out this short video on The Power of Unified HCM Reporting.
Human Resource Management System (HRMS) - Refers to software solutions designed to automate Human Resource business processes, transactions, payroll and compliance. Optimally, the HRMS also provides a single, centralized view of an organization’s people. HRMS applications can include talent acquisition, benefits administration, compensation management, payroll and compliance, performance management, succession planning, and career development. Frequently used interchangeably (though inaccurately) with HCM.
Human Resource Management (HRM) - The strategic approach to managing people and recruitment, and the developed approach for handling training, personnel policies, and employee benefits and records. HRM oversees the organizing of corporate culture, corporate communication and compliance with employment and labor law. Put simply, HRM is the management of an organization’s workforce. The HR/HRM department has many roles that may include but are not limited to: recruitment, training, assessment, employee benefits and rewards, labor law compliance, and change management.
Learn more about HRM and UltiPro with our UltiPro HR Solution Features.
Human Resources System - A designed application database that analyzes data that assists HR Management in making precise decisions that support the goals of a company while improving functionality.
Synonyms are HR Systems, Human Resource System, Human Resource Systems, and Human Resources Systems. Similar to HRIS and HRMS.
Human Resources Information System (HRIS) - A software or cloud-based management information system used to organize the Human Resource (HR) data for employee information. Examples include: payroll, accounting, benefits, reporting, time and attendance, recruiting and scheduling.
Synonyms are HRIS and HRIS Software.
For more on HRIS, check out this case study: UltiPro as Our HRIS Solution: A Case Study in Success.
HR & Payroll Services - Resources that leverage an all-inclusive database to manage workforce data and calculate the appropriate payroll. Online, paperless HR and payroll systems can effectively help a company stay organized and keep employees engaged.