5

THE PRINCIPLES OFGOOD MEASUREMENT

THE HUMAN-RESOURCE performance-measurement system you use plays a key role in determining HR’s place in your firm—including securing HR’s credibility. It also influences the organization’s ability to capitalize on HR as a strategic asset. For these reasons, you must ground that measurement system in some essential principles. Let’s take another look at HiTech, the company we first met in chapter 3, to see what can happen when a firm ignores these principles.

HiTech is a large manufacturer headquartered in the western United States. Its innovative products have earned it recognition as an industry leader. Like many companies, HiTech for several years had emphasized the importance of people as a source of competitive ...

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