PERFORMANCE-MEASUREMENT AS A SURROGATE VALUE OF ORGANIZATIONAL HUMAN-RESOURCE

Proposes a method to assess the relative value of organizational human resource (HR) based on total performance. The total performance of th e man-machine resource base of an organization includes its profitabil ity together with how it affects the interests of consumers, the natio nal economy and society (i.e. other than profitability performance). T he total performance thus achieved, judged in relation to the plant ba se used, reflects the productivity of HR. Such a productivity level ac hieved by the HR viewed in relation to the man-related cost reflects t he ''external value'' of HR. The impact of certain uncontrollable exte rnal factors (which may not be attributable to HR) has been assessed o n the organizational total performance to reflect the controllable dim ension of HR value, i.e. the ''internal value'' of organizational HR. The proposed method has been applied in an integrated iron and steel p lant to study its HR value over a ten-year period.