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When considering human capital investment levels, it is necessary to determine the specific measures to monitor the HR effectiveness. These measures provide insight into the status and health of the human capital function. They signal when additional investment is needed and they serve as the baseline for measuring the progress and payoff of investing in a specific program or project. The first step to determine the measures needed is to examine those currently in use. Some of the HR effectiveness measures evolved from the beginnings of personnel administration to what is today known as human resources or human capital management. Although these measures have existed for some time, they are still important for understanding the nature, scope, and progress of human capital. The measures represent a balance of old-economy and new-economy organizations. Several measures are industry specific. For example, safety and health measurements may be an important issue where employees are routinely at risk for accidents, injuries, and illnesses. Service and white-collar businesses, such as financial services and software companies, would not necessarily list these measures as a priority. They include other measures, however, that are critical to developing and emerging industries, such as innovation, leadership, and competencies. This paper, by referring to a number of scholarly articles and sources, analyzes various ways of measuring HR effectiveness, focusing on HR metrics as the primary method of determining the worth HR function brings to the modern organization. HR metrics have become the predominant method used by organizations to ensure that appropriate measures are tracked and improvement occurs. For example, top executives must take an active role in developing an appropriate human capital scorecard and must ensure that critical measures are tracked and monitored routinely; otherwise, the scorecard measures may be dominated by items that are not meaningful or strategically focused. Executives must also ensure that specific actions are taken to correct situations where measures are less than optimal. Using the return on investment (ROI) methodology, executives should take part in examining the payoff of investments in human capital projects. This paper outlines the issues involved in creating an appropriate HR metrics, concentrating on developing a human capital scorecard.These reasons support the conclusion that human capital professionals must use targeted approaches that can deliver clearly defined, measurable benefits (Nalbantian, Guzzo, Kieffer, and Doherty2004) Although progress has been slow and legitimate barriers for progress exist, the need for HR effectiveness measurement is clearly present. Organizations must show the value of scorecards. The Corporate Leadership Council survey described previously shows that the pressure is on. In 37 percent of organizations, CEOs, COOs, and CFOs, the top three individuals in any major organization, are applying pressure to deliver and enhance HR data and capabilities (Walsh 2002). This kind of pressure will undoubtedly increase. At the same time, organizations recognize the need to build a human capital scorecard. In the Deloitte & Touche study, organizations were asked about the rationale for building a more comprehensive scorecard and the benefits that can be derived. Almost 50 percent of the respondents desire an important scorecard so that human capital can be measured in a recognized way. Over 40 percent indicate that the human capital scorecard forms a basis for performance management/reward systems and allows the organization to specify how to increase human capital investment. Still almost 40 percent see the value in justifying the investment in human capital and over 30 percent track changes in the value of human capital. Clearly, there is not only pressure to measure human capital, but major rationale for accomplishing it (Walsh 2002). In recent years, there has boon much interest in developing documents that reflect appropriate measures in an organization. Scorecards, such as those originally used in sporting events, provide a variety of measures for top executives. In Kaplan and Norton's famous book, The Balanced Scorecard (1996), the concept was brought to the attention of organizations. Kaplan and Norton suggested that data be organized in four categories: process, operational, financial, and growth. HR metrics come in a variety of types, whether it is Kaplan and Norton's balanced scorecard, the scored set in the president's management agenda using the traffic light grading system, or some other kind. Regardless of the type, top executives place great emphasis on the concept of HR metrics. In some organizations, the HR metrics concept has filtered down to various functional business units and each part of the business has been required to develop scorecards. A growing number of HR executives have developed the HR metrics to reflect the human capital segment of the business (Nalbantian et al. 2004). The HR metrics approach is appealing because it provides a quick comparison of key measures and examines the status of human capital in the organization. As a management tool, HR metrics, including scorecards, can be very important to shape the direction of human capital investment and improve or maintain performance of the organization through the implementation of preventive programs. Interest in HR metrics has been phenomenal, particularly the Kaplan and Norton balanced scorecard. The Deloitte survey reports that 32 percent of organizations used the balanced scorecard methodology; 46 percent of those said this was effective for them (Walsh 2002). Other similar terms are also used such as HR benchmarking, HR reports, HR information systems, HR dashboards, and HR human capital reports. This paper uses the terms ?HR metrics? and ?scorecard? to illustrate a range of possibilities for presenting data in a meaningful, organized way and representing performance from a variety of perspectives, using qualitative and quantitative data. More important, the data from an HR metrics can help organizations understand problems and opportunities and can be used for both diagnostic and prescriptive possibilities. Executive input is critical when it comes to selecting the measures to be included in the HR metrics. There are a variety of options and categories. The remainder of this paper will cover a variety of approaches that can bring together the concepts and concerns crucial to the modern organization?s HR effectiveness measurement. When building the HR metrics, it is helpful to start with the organization's strategy. Rather than search for an illusive ?best list? of human capital measures, some professionals prefer to know more about how they can implement a metrics project or convince managers and others to endorse the creation and use of people measures.