ADDING VALUE THROUGH HUMAN-RESOURCES - REORIENTING HUMAN-RESOURCE MEASUREMENT TO DRIVE BUSINESS PERFORMANCE

Building upon the balanced scorecard framework, this article addresses three central issues of human resource (HR) measurement: (1) Do HR pr actices impact business results? (2) How can HR practices add value to business performance? (3) What HR measures can drive business perform ance? Using Eastman Kodak as a case study, this article identifies thr ee paths through which HR practices contribute to business performance : (1) by building organizational capabilities; (2) by improving employ ee satisfaction; and (3) by shaping customer and shareholder satisfact ion. Three clusters of measures are proposed: internal operational HR measures, internal strategic HR measures, and external strategic HR me asures. (C) 1997 John Wiley & Sons, Inc.