Implementation of Human Capital Management in Increasing Organizational Competitiveness

Human Capital Management (HCM) emerged as a strategic approach in human resource management, which does not only focus on administrative aspects, but also on developing individual competencies, capabilities and potential in the organization. In this research the researcher used a qualitative descriptive method. The data collection technique using literature study is a series of activities relating to a method of collecting library data, reading and writing, and managing material in research. The results of this research have found that the application of Human Capital Management (HCM) has a strategic and significant role in increasing organizational competitiveness. The implementation of integrated and long-term oriented HCM has been proven to be able to encourage improvements in the quality of human resources through effective HR planning, competency development, a fair performance management system, as well as appropriate retention and talent management strategies. Organizations that view employees as the main asset and manage human capital regularly tend to be more adaptive to change, innovative in service, and superior in achieving business performance. This shows that HCM not only contributes to increasing individual productivity, but also to the competitive advantage of the organization as a whole.