Chapter 10. Creating and Using the Human Capital Scorecard

Scorecards have become the predominant method used by organizations to ensure that appropriate measures are tracked and improvement occurs. 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 ROI methodology presented in chapters 5 and 8, executives should take part in examining the payoff of investments in human capital projects.

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