The Principles of Good Measurement

The performance-measurement system you use plays an important role in securing HR's credibility and determining its place in the firm. A sound measurement system improves HR's decision-making by focusing on aspects of the organization that create value, and provides a valid and systematic justification for the allocation of resources. This chapter focuses on thinking strategically about measurement, providing essential principles for developing and implementing a performance-measurement system that will support investment in HR as a strategic resource.