HRM Metrics Revised.

Human Resource Metrics
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Human Resource Metrics
Human resource metrics entails the indicators that help the HR management in measuring the efficiency of the HR initiatives. The significance of human resource metrics has increased over time as far as measurement of performance and scorecards are concerned (Small business basics: How to understand a cash flow statement, 2009). The human resource metrics is a very effective tool in enhancing effective management of the human resource in any organization (Financial Leverage Ratios 2015). The human capital of an organization is very important therefore effective management is vital. The department of human resource in any organization is supposed to apply economic principles in decision making (Liston, 2015). The human resource department applies the economic principle to some extent and outlooks other aspects (Evans, 2015).
Example of an area that the department of human resources fails to incorporate relevant economic principles is the application of value-based as well as financial metrics (Profitability Ratios, 2015). The human resource fails to link the human capital to the value since it fails to comprehend the aspect of value-based management (Liquidity Ratios, 2015). Failure to understand the element of value in management fails to connect the finance and human resources in the organization (The Finance Storyteller, 2017). To this end, it is apparent that the department of human resources does not apply all economic principles while executing its function of decision making (Efficiency Ratios, 2015).

To improve efficiency in executing its duties, the department of human resource is supposed to ensure that it incorporates all the economic principles while making important decisions (Tutor2u, 2017). The department should also benchmark its metrics alongside its previous performance as well as with that of other firms (AccountingWITT, 2010). A strong connection between the human resource metrics and the strategies of the company should be established. One way to establish the strong connection is through the application of all economic principles in decision making as far as the department of human resource is concerned (Evans, 2015).
However, application of economic principles by the department of human resource in decision making may raise some ethical issues as far as employees are concerned (Youderian, 2013). For instance establishing the financial and human capital relationship only tries to depict the value of human beings in financial terms (Jun, 2008). The concept of human dignity is greatly undermined by the economic principles in the organization. To this end, it is evident that despite the benefits gained from applying economic principles, ethical issues raise (Brocaglia, 2006).
References
AccountingWITT. (2010). The accounting equation – Conceptual analogy. [Video file].
Retrieved from https://www.youtube.com/watch?v=YK4FJ7QrFY0Brocaglia, J. (2006). The importance of human capital. ISSA Journal
Efficiency Ratios (2015). My Accounting Course. Retrieved
from http://www.myaccountingcourse.com/financial-ratios/efficiency-ratiosEvans, M.H. (2015). Metrics for Human Resource Management. Retrieved
from http://www.exinfm.com/board/metrics_for_hr_management.htmFinancial Leverage Ratios. (2015). My Accounting Course. Retrieved
from http://www.myaccountingcourse.com/financial-ratios/financial-leverage-ratios
Jun, J. (2008). How to master analyzing the cash flow statement. Old School Value. Retrieved
from http://www.oldschoolvalue.com/blog/valuation-methods/analysing-financial-statements-and-aerogrow/Liquidity Ratios. (2015). My Accounting Course. Retrieved
from http://www.myaccountingcourse.com/financial-ratios/liquidity-ratiosListon, H. (2015). How to read and analyze an income statement. Bplans. Retrieved
from http://articles.bplans.com/how-to-read-an-income-statement/Profitability Ratios. (2015). My Accounting Course. Retrieved
from http://www.myaccountingcourse.com/financial-ratios/profitability-ratiosSmall business basics: How to understand a cash flow statement. (2009). eHow. Retrieved
from https://www.youtube.com/watch?v=4xfcNNAMcNkThe Finance Storyteller (2017) How to analyze an income statement. Retrieved
from https://www.youtube.com/watch?v=jovKWaUxdmUTutor2u. (2017) Introduction to the Balance Sheet. Retrieved
from https://www.youtube.com/watch?v=Syu2sKv05rQYouderian, A. (2013). How to read a Balance Sheet (The non-boring version). Retrieved
from http://www.ecommercefuel.com/how-to-read-a-balance-sheet/