Volume 30, Issue 3 pp. 393-410
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Using performance measurement to evaluate strategic human resource management decisions: Kodak's experience with profit-sharing

John. W. Boudreau

John. W. Boudreau

Iohn W. Boudreau is Associate Professor and Department Chairperson of Personnel and Human Resource Studies, at the Center for Advanced Human Resource Studies, School of Industrial and Labor Relations, Cornell University. He received his MSlA in Management and his Ph.D. in Industrial Relations from the Krannert Graduate School of Management, Purdue University. Professor Boudreau's research includes human resource management decision making; human resource information sys terns; applications of economic, accounting and financial theories to human resource decisions; computer applications to human resource management decisions; organizational staffing; and human resource strategic planning. His articles appear in scholarly and professional journals such as Journal of Applied Psychology, Organizational Behavior and Human Decision Processes, Personnel Psychology, Asia-Pacific HRM, Industrial Relations, Personnel Administrator, and Computers in Personnel. He has also authored numerous book chapters and presented papers to both researchers and executives in the United States, Europe, Australia and New Zealand. Professor Boudreau's textbooks, Human Resource Management (6th Edition) and Personal Computer (PC) Exercises in Personnel/Human Resource Management, written with George Milkovich, are widely used in University classes. Professor Boudreau has consulted and designed seminars in Human Resource Management Decision Making and Personal Computer Applications for companies including Mobil, IBM, Eastman Kodak, Chevron, Hallmark Cards, NYNEX, and Schering-Plough. He is the coordinator of the IBM-ILR Personal Computer Education Project in Human Resource Management at Cornell University. Professor Boudreau has served on the editorial boards of Human Resource Planning, Personnel Journal, Personnel Psychology, and Journal of Applied Psychology.

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Robert Berman

Robert Berman

Robert Berman is Director, Human Resources of the Kodak Colorado Division of Eastman Kodak Company. He joined Kodak in 1982, and has served in a wide range of assignments within Kodak's Human Resource Community. He has been the Compensation Manager for several of Kodak's business groups, and Director of Human Resources for several major business and manufacturing organizations in Kodak's Imaging and Health sectors. His current responsibilities include leadership in the delivery of integrated strategic and operational HR services to Kodak's sensitized goods manufacturing operations in Windsor, Colorado. Mr. Berman has a B.S. in Business from the University of Minnesota and a Master of Industrial and Labor Relations from the New York State School of Industrial and Labor Relations at Cornell University.

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First published: Autumn (Fall) 1991
Citations: 3

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.

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