Reading Exercise
Questions [1-9]:- Read the paragraph and match the statement given
Human Capital Management
A. In an increasingly service-orientated global economy, more and more organisations have to have
large numbers of employees covering frontline roles 24 hours a day. For those organisations, the
workforce accounts for a large proportion of costs. The way it is managed and utilised is a critical
success factor and fundamental to profitability and growth. Managers can ensure that the large
workforces on which they depend remain motivated and productive, but this can only be
achieved by facilitating closer collaboration between operations, HR and IT professionals within
the organisation.
B. Workforce management software exists which integrates with finance and payroll systems,
providing a comprehensive picture of human resources. Using it properly enables organisations
to take a more holistic approach to the way they contract with and optimise the time of their
employees. This approach is often described as ‘human capital management’. Surprisingly, many
organisations already have much of this functionality or, at least, the potential to develop it
within their existing software systems. However, this doesn’t always happen, largely due to poor
internal collaboration, especially between the operations, HR and IT functions of the
organisation.
number of people working is one aspect, but rates of pay must also be taken into account. The
key is to get a cross-functional team working on the way labour costs are measured and
controlled. Budget variance reports must be used with caution – just because a department is
not seem much, but in the current climate it can mean the difference between profit and loss for
