ABSTRACT
Human Resources in any organization are perceived as a
cost to the organization and the Human Resource function
is perceived as a cost center, which needs to be monitored
stringently to deliver optimum value. This paper explores
the context of Human Resources as the cost of capital to
the company in order to understand the repercussions of
human capital management which can not just help save
cost but add to the bottom line in a more competent and
financially accountable manner. A huge expense of the
organization is incurred on human resources and it is
imperative that this organizational cost is not just
optimized to enhance human competencies but the human
resource be managed so that it is a financially strategic
tool to add value to the organization and to realign its core
competencies to leverage upon the varying business
opportunities and to combat challenges more
competitively. The traditional return on investment model
always inevitably anticipated the returns on other
resources invested by an organization excluding
manpower, which was perhaps discounted because of its
intangible and inconsistent measurement and no means
available to establish its direct co-relation to the
profitability of the organization. It is high time that
organizations seek to correct this and account for the
human capital and measure the return on this investment.
This paper will present a strategic perspective on the
significance of measuring the cost of human capital in
logistics and supply chain management to create a more
robust organization, which is geared to deliver a
perennially more market-driven and consistently adaptive
human resource to build an organization which is bestsuited
to serve the customer and reinforce its own
capabilities to so as to have a greater return on investment
for all human capital.