In the constantly changing business scenario, accomplishing organizational excellence in the marketplace demands high performance on a continuous basis. Organizations that invest in human capital measurement systems have improved employee performance, retention, and enhanced corporate end results. This has led to a deep-rooted transformation of the role of HRD from being a cost creator to being a strategic partner of an organization. This Human Capital Intervention exhibits the clear links between human capital and a company's effectiveness.

In the current economic environment and business scenario of globalization, privatization and liberalization, a company's market value depends less on tangible assets and relies more on intangibles resources such as technology, and principally people, the `Human Capital'. The most challenging of all assets to quantify and control is Human Capital (HC)— defined as individual value in an economic sense, and the way it is transformed into the company's collective competence. A company's HC asset is the collective sum of the attributes, life experience, knowledge, inventiveness, energy and enthusiasm that its people choose to invest in their work. Today, a matchless competitive advantage in the marketplace and a massive premium mount up for those organizations that have built up a greater facility for managing human capital. For example, the sustained superior performance of best practice companies like Marriott, Borg-Warner, Merck, etc., has been accredited to their excellent human capital management.

As developed economies persevere to become more knowledge intensive, a transformation that calls for top executives to focus on human capital management as never before has taken place. Besides, the institutional investors are in quest of diverse measures of human capital to scrutinize a company's strategy and business as they find there is an explicit relation between a company's Human Capital activities and long-term shareholder value. This in turn demands a measurement system to facilitate the optimization of their return on people. Human capital measurement accentuates the way an organization manages its people/workforce that engenders a vital contribution to the company's bottom line. HC measurement is all about conveying objective data to guide the direction of HR strategy and to help to formulate better HR investment decisions.

HRM Review Magazine, Human Capital Measurement, Economic Environment, Globalization, Liberalization, Human Capital Management, Global Economy, Organizational Objectives, Strategic Goals, Performance Management, Employee Performance Optimization, Employee Engagement, Organizational Progress, Balanced Score Card, Organizational Management.