Human capital has always been the backbone of all economic endeavors the world over. Business houses and corporate of long standing have recognized the vital inputs made by the invaluable human resource and its strategic placement for optimum realization of potential. Strategic human capital utilization has proven to be the secret to maximization of efforts and optimization of production at all levels and even in totality. The approach to the utilization of human capital has been given in details by various professionals; however, this approach tends to differ from country to country. The approach, nevertheless, and its efficacy in the business world can be judged on the basis of the HR scorecard.
This is probably because of the variant socio-cultural norms being practiced that the HR scorecard is able to give the sustainable human capital advantage. Many countries have business traditions that vary on the basis of their inherent, age-old accepted norms of doing business and obtaining results. In some countries, success or failure of the business depends upon the adherence of the company’s management to these norms. Sometimes the level of following of these norms can also give an idea of how successful the company can rise to be.
Many a times, these traditional norms can help the company over power the negative forces of unhealthy competition, cheaper urban and substandard materials, poor workmanship, shoddy machine work, as well as low cost mass production on the basis of easily available semi-skilled labour. The essay aims towards providing the importance of HR scorecard as the tool achieving excellence in HR operations. Achieving HR operational excellence has thus become a function of the HR scorecard that has been evolved by scholars for measuring the form, function and viability of human capital inputs in any business enterprise.