The ways in which human resource management and human resource (HR) departments can add strategic value to organizational performance is a topic of lively discussion in the literature on strategic human resource management. The expectations of shareholders as primary stakeholders have been emphasized throughout the evolution of strategic human resource management. Therefore, the effectiveness of HR departments has mainly been considered from this perspective. The present study focuses on evaluating performance management and the measurement of HR departments by considering the expectations of stakeholders. According to the research results, there clearly is a need for a multidimensional model to evaluate the effectiveness of HR departments. Since there are many perspectives, practices, problems, and stakeholders related to the performance management of HR departments, there are also varied evaluation styles. Thus, the assessment practices are also diverse in terms of methods and measurement tools. The practical results of this study indicate that performance management and the measurement of HR departments require a broader stakeholder perspective. Furthermore, the study emphasizes the importance of developing relevant and meaningful models for measuring the performance of HR departments while acknowledging that the actual metrics used may vary from business to business.