Measuring organizational performance in strategic human resource management: Problems, prospects, and performance information markets

A major challenge for Strategic Human Resource Management research in the next decade will be to establish a clear, coherent and consistent construct for organizational performance. This article describes the variety of measures used in current empirical research linking human resource management and organizational performance. Implications for future research are discussed amidst the challenges of construct definition, divergent stakeholder criteria and the temporal dynamics of performance. The concept of performance information markets that addresses these challenges is proposed as a framework for the application of multi-dimensional weighted performance measurement systems. "What are you doing?" inquired the policeman of the drunk crawling on the pavement under the glow of a lamppost. "I am looking for my quarter," came the reply. "Where did you lose it?" asked the officer helpfully. "I dropped it over there by that payphone," retorted the drunk. Incredulous, the officer asked; "Then why are you looking in the middle of street?" "Because there is more light over here," he replied with his nose nearly to the ground.