Value‐Based Management: Performance Measurement Systems for Human Resources
Journal of Human Resource Costing & Accounting
ISSN: 1401-338X
Article publication date: 1 January 2000
Abstract
This his paper focuses on a specific aspect of Value‐Based Management (VBM), the design of performance measurement systems. This remains an important challenge not only in Management Accounting but also in Human Resources Management. Performance measurement on various levels of organisation should be aligned to value creation, and management compensation should be tied to the achievement of targets set to these measures according to VBM proponents. In the present article definitions of concepts and issues associated with the design of performance measurement systems are discussed. Furthermore, the paper presents a review of four tools available to measure and manage intangible resources: human resource accounting, economic value‐added (EVA), balanced scorecard (BSC) and intellectual capital (IC). The role of non‐financial measures is also analysed from a VBM framework. Finally, some concluding remarks are highlighted in the last section.
Citation
ÁLVAREZ‐DARDET, C., CUEVAS‐RODRÍGUEZ, G. and VALLE‐CABRERA, R. (2000), "Value‐Based Management: Performance Measurement Systems for Human Resources", Journal of Human Resource Costing & Accounting, Vol. 5 No. 1, pp. 9-26. https://doi.org/10.1108/eb029060
Publisher
:MCB UP Ltd
Copyright © 2000, MCB UP Limited