The four fundamental objectives of HCM are:
- to determine the impact of people on the business and their contribution to value;
- to demonstrate that HR practices produce value for money in terms, for example, of return on investment;
- to provide guidance on future HR and business strategies;
- to provide data that will inform strategies and practices designed to improve the effectiveness of people management in the organization.
As Manocha (2005: 28) stated: ‘Essentially, it [HCM] is a discipline that enables organizations to identify how their people contribute to and drive business performance’.