Abstract:     Knowledge and competence is the core of the human capital, it affects the organizational performance ultimately. The narmonious management theory is applied to examine the mechanism of those institutional factors and non-institutional factors acting on knowledge and competence, a human capital management model based on the harmonious management theory is put forward. Research suggests that efficient human capital management should carry through four aspects. Firsty, regulating and optimizing management rule, principle, and activities; secondly, fostering an associability and trust organizational environment; thirdly, coupling optimum mechanism and the mechanism of associability and trust from the angle of whole organization; fourthly, establishing a two-phase self-monitor mechanism.  

Key words: human capital management, harmonious management theory, operation optimization, associability and trust