Using Performance Measurement to Evaluate Strategic Human Resource Management Decisions: Kodak's Experience With Profit Sharing

Abstract

[Excerpt] Profit-sharing is frequently 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 the role of performance measurement information in that approach.