The HR personnel have realized the importance of the "return on investment" on all activities in an organization as they started playing the role of business partners and helping the heads of companies chart out growth trajectories for the next few years. As a result, the human resource departments have started establishing success criteria for all programs in quantitative terms.

some time ago a company was differentiated from another on account of its vast array of products, its advertising campaigns, its manufacturing locations, its market share, etc. The presence of these factors does help a company, but does not guarantee success. Today the single most differentiating factor between companies is its quality of human resource. The competencies and attributes the employees possess will help a company carve a niche among its competitors. The HR departments have to create the tools to hire such manpower and place them in strategic roles befitting their competencies.

Today many organizations have realized that the most valuable asset in the organization is its people. The organization grows because of the talent of its human assets. For any initiative to be implemented in an organization, the change agents are its people. This slow realization of the management about the importance of its workforce has brought the people aspect to the forefront of all the organizational strategies.

Now that HR has managed to come to the forefront, it has to become accountable on all aspects. The old format of qualitative reporting has to take the back seat. Top management needs to be reported in new and innovative quantitative formats periodically. The HR function has to justify its investments and initiatives in the same way as the other functions of the organization such as marketing, finance, operations, etc. The HR function also has to contribute to the company's bottom line and profit. The HR function has emerged as a front line key player and it has to support the long-term organizational goals. The HR function has to generate a database and transform the data into appropriate business language for the top management.

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