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Adding value through human resources: Reorienting human resource measurement to drive business performance
Author(s) -
Yeung Arthur K.,
Berman Bob
Publication year - 1997
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/(sici)1099-050x(199723)36:3<321::aid-hrm4>3.0.co;2-y
Subject(s) - balanced scorecard , human resources , business , human resource management , process management , shareholder value , shareholder , performance measurement , organizational performance , resource (disambiguation) , strategic management , business case , value (mathematics) , knowledge management , operations management , business administration , marketing , management , computer science , engineering , corporate governance , finance , economics , computer network , machine learning
Building upon the balanced scorecard framework, this article addresses three central issues of human resource (HR) measurement: (1) Do HR practices impact business results? (2) How can HR practices add value to business performance? (3) What HR measures can drive business performance? Using Eastman Kodak as a case study, this article identifies three paths through which HR practices contribute to business performance: (1) by building organizational capabilities; (2) by improving employee satisfaction; and (3) by shaping customer and shareholder satisfaction. Three clusters of measures are proposed: internal operational HR measures, internal strategic HR measures, and external strategic HR measures. © 1997 John Wiley & Sons, Inc.