Measuring HRM effectiveness: Considering multiple stakeholders in a global context

Strategic human resource management research has mostly gravitated towards financial measures of performance in order to assess the effectiveness of human resource management initiatives. In this paper, we argue that focusing on organizational performance mainly from financial stakeholders' perspective is no longer sufficient. We discuss the implications of globalization, changing nature of work and the need to satisfy multiple stakeholders on how we measure the effectiveness of human resource management systems. We provide examples from several reach streams that focus on stakeholders other than shareholders as their main outcome of interest.