Psychometric – An assessment tool for strategic HRM.

A radical change is witnessed in the face of HRM in the last decade. Volatile business environment, economic turmoil, talent war, demanding work culture, potential vs. performance is posing new challenges for the HR. In the present competitive business environment achieving corporate excellence became a continuous process that requires high performance through out the organization. At this juncture the roles of hr managers are quite important and challenging. They are accountable for their HR activities and assessed in terms of delivering strategic value that is quantifiable. At this point of time use of metrics in HR functions can help in linking HR actions to business strategies. The application of psychometric tools in HRM functions can result incredible increase in returns on human capital. In the international business scenario many a corporate houses are using psychometrics as an assessment tool to take business decisions. It is popular technique to assess individual behavior in countries like US, UK, South Africa. Of late Indian companies, research and training institutions have started using psychometric tests for individual assessments, team building and organizational development purposes. The use of psychometrics in HRM is getting significant than ever to enhance the strategic role of HR that brings long-term performance of the company and the shareholder's value. This conceptual paper is designed to give a logical explanation of the role of psychometric as an assessment tool for HR to take the strategic decision.