Performance Management and Strategy

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SEU_MGT520_Module05_PPT_Ch03.pptx

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Chapter 3 Performance Management and Strategic Planning

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Overview

Definition and Purposes of Strategic Planning

Linking Performance Management to the Strategic Plan

Strategic Planning Process

Critical Role of HR in Strategic Planning

Devising an environmental (i.e., SWOT) analysis

Produce state-of-the-science mission and vision statements, objectives, and strategies

Devise effective job descriptions

Building Support

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Strategic Planning: Definition

Process

Describe the organization’s destination

Assess barriers

Select approaches for moving forward

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Strategic Planning: Goal

Allocate resources to provide the organization with competitive advantage

Blueprint that defines how the organization will allocate its resources in pursuit of its most critical and important objectives

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Strategic Planning : Overview

Organizational Strategic Plan

Mission; Vision; Objectives; Strategies

Unit Strategic Plan

Mission; Vision; Objectives; Strategies

Job Descriptions

Tasks; Knowledge; Skills; Abilities

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Linking Performance Management and Strategic Plan

The Balanced Scorecard Approach

What are key elements of the balanced scorecard approach?

How can this approach create congruence between performance management and the strategic plan?

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Strategic Planning Process

Critical Role of the HR Function

Environmental (SWOT) Analysis

Mission

Vision

Objectives

Strategies

Job Descriptions

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Strategic Planning Process Critical Role of the HR Function

Communicate knowledge of strategic plan

Outline knowledge, skills, and abilities (KSAs) needed for strategy implementation

Propose compensation systems

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Strategic Planning Process Environmental Analysis

Identifies external and internal trends

To understand broad industry issues

Used to make decisions using “big picture” context

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Mission

A good mission statement answers:

Why does the organization exist?

What is the scope of the organization’s activities?

Who are the customers served?

What are the products or services offered?

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Mission Statement Should Contain:

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Vision

Statement of future aspirations

Focuses attention on what is important

Provides context for evaluating

Opportunities

Threats

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A Good Vision Statement: Eight Characteristics

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Objectives

What organization hopes to achieve in the medium- to long-range period

Next three to five years

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Objectives

More specific information regarding how mission will be implemented

Basis for making decisions by keeping outcomes in mind

Allows for comparison of what needs to be achieved versus what each unit, group, and individual is achieving

A source of motivation

Provides employees with a more tangible target for which to strive

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Strategies

Descriptions of game plans or how-to procedures to reach the stated objectives

Address issues of:

Growth

Survival

Turnaround

Stability

Innovation

Talent Acquisition

Leadership

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Strategic Plans at Unit Level

Every Unit mission statement, vision statement, goals, and strategies

Must clearly align with and be congruent with Organization’s mission statement, vision statement, goals, and strategies

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Job Descriptions

Need to be congruent with and support the organization and unit mission, vision, objectives, and strategies

Provides information about the various tasks performed, together with a description of some of the KSAs required for the position

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Building Support— Answering “What’s in It for Me?”

For top management support:

Emphasize that PM helps carry out an organization’s vision

For support from all levels:

Clearly communicate nature and consequences of PM

Involve employees in the process of PM design and implementation

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Individual and Team Performance

Organization and Unit mission, vision, goals lead to 

Performance management system, which:

Motivates employees

Aligns development plans with organization priorities

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What’s In It for Me (WIIFM)?

Answering the What’s in it For Me (WIIFM) question

How does answering this question build support for the performance management system?

What role does context play in crafting the message about performance management?

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Quick Review

Definition and Purposes of Strategic Planning

Linking Performance Management to the Strategic Plan

Critical Role of HR in Strategic Planning

Devising an environmental (i.e., SWOT) analysis

Produce state-of-the-science mission and vision statements, objectives, and strategies

Devise effective job descriptions

Building Support

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