Using performance measurement to evaluate strategic human resource management decisions: Kodak's experience with profit-sharing

Abstract

Profit-sharing frequently is used to link employee performance and labor costs to the profitability of organizations. It represents a significant investment. Yet, managers' decisions regarding such human resource investments frequently do not use the same financial planning frameworks typical of other investments. This article presents a case study describing how one division at Eastman Kodak Company used a strategic investment approach to plan and evaluate a profit-sharing program and describing the role of performance measurement information in that approach.