This document is a practical guide that demonstrates how human resource (HR) professionals can use performance measurement to link HR to organizational strategy and business objectives, and thereby raise the profile of HR within their organization. The following are among the topics examined: (1) the strategic context of measurement (the role behavior, the business cycle, and the organization-specific approaches to measurement); (2) the importance of balance (the myth of financial indicators, the balanced scorecard, the Institute for Employment Studies scorecard); (3) people measures (levels of analysis, approaches to measurement, ways of calculating measures and deciding what is really important); (4) measurement of HR (the evidence, dilemmas, perceptions of HR, an HR value chain, key indicators, "HR scorecards," evaluation of initiatives); (5) benchmarking (setting clear objectives, identifying comparative organizations, collecting data and understanding results, adapting for improvement from benchmarking); and (6) key points and steps to success (organizational objectives, people implications, HR implications). Fourteen tables/figures are included. Appended are definitions of selected people and HR indicators; guidelines for deriving indicators of satisfaction and commitment; and a questionnaire examining perceptions of the HR function. (Contains 26 references.) (MN)