ABSTRACT
This chapter focuses on measuring Human Resources (HR) against human capital and approaches to measurement. In a world where performance measurement is progressively more value based, HR needs its own language to articulate the value it brings. Effective measurement allows for an evaluation of the degree of alignment between functional and organizational strategies and helps identify those areas that should be the focus for change. In their work The HR Scorecard, Becker, Huselid and Ulrich also recognized the challenge, claiming that one of the most critical actions HR can take is to develop a measurement system that captures the impact the function has on the business. In the absence of central standards like those in the accountancy profession, a common language for measurement is starting to emerge through the introduction of global benchmarking tools developed by bodies such as EP-First & Saratoga and consultancies like Watson Wyatt. Measurement systems only add value when they can measure what matters.
