Ratios to Manage HR Functions

The HR function was run like a welfare agency rather than being a part of the business. The emergence of knowledge economy makes Human Resource as an important investment and people as assets. HR Management has to involve in strategy formulation and implementation and has to transform itself. It has to speak the languages of business, in quantitative and objective terms. This article attempts to provide a quantitative base for the HR function by coming up with various ratios, which can help the organization in making the HR function more effective and evaluate its contribution in terms of benefits provided and return on investment.