Until recently, Human Resource Management (HRM) activities have commonly been evaluated in behavioral and statistical terms. In this competitive climate where everything is related to finance, the need to evaluate HRM activities in economic terms is becoming increasingly apparent. Developing such measures requires an interdisciplinary approach wherein information from accounting, finance, economics and behavioral science has to be incorporated and delivered in the language understood by the business world.

At last, the cliché `people are our most important resource' has actually come to mean something. Today more than ever the management realizes that the most effective asset in an organization is its people. In fact ,it is obsolete to say people are the most important asset, rather they are the only dynamic asset. Nothing happens without people money, equipment, technology.. nothing means anything without a human to act. Hence, the management has slowly realized the importance which in turn has edged Human Resource (HR) from the background into mainstream organizational strategies.

Having moved to the center stage is not the end. It has to sustain its stand and move even further and for that to happen HR must learn the language of organizations and management, i.e. it has to talk in quantitative and objective terms. Time and again, every manager has always stated `You can't manage what you can't measure'. Organizations are managed with quantitative data. Today, HR has also got into the game. It has learned the terminology of the organization's financial statement and has begun to contribute in this area. Universally, HR is emerging as a front line strategic player.

Every organization has its eye on the bottom lineprofit and all the units work to demonstrate their contribution to service, quality and performance. It is to be remembered that every unit affects business results and every function is a valueadding operation. Hence, it is imperative to be able to measure this contribution objectively. The next step is to transform generated data into the only language the business world understandsMoney.

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