Human capital management (HCM) and human resources (HR) are related but distinct concepts. Traditional HR primarily focuses on administrative functions such as recruitment, payroll, compliance, and employee relations, handling the day-to-day operations necessary for managing a workforce. In contrast, human capital management takes a more strategic approach by viewing employees as valuable assets whose skills, talents, and potential can be optimized to drive organizational growth. HCM involves talent development, performance management, succession planning, and leveraging data analytics to enhance workforce productivity. While HR is essential for operational efficiency, HCM emphasizes aligning human capital strategies with overall business objectives to foster long-term success.