Chapter 3
Performance
Management and
Strategic Planning
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-1
Overview
➢
➢
Definition and Purposes of Strategic
Planning
Linking Performance Management to
the Strategic Plan
•
•
•
•
➢
Strategic Planning
Developing Strategic Plans at the Unit Level
Job Descriptions
Individual and Team Performance
Building Support
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-2
Strategic Planning: Definition
◼
Process
•Describe the organization’s
destination
•Assess barriers
•Select approaches for
moving forward
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-3
Strategic Planning: Goal
◼
Allocate resources to provide the
organization with competitive
advantage
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-4
Strategic Planning: Purposes
✓
✓
✓
✓
Help define the organization’s
identity
Help the organization prepare
for the future
Enhance the ability to adapt to
environmental change
Provide focus and allow for
better allocation of resources
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-5
Strategic Planning: Purposes
(Continued)
Produce an organizational
culture of cooperation
✓ Allow for the consideration of
new options and opportunities
✓ Provide employees with
information to direct daily
activities
✓
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-6
Strategic Planning : Overview
1.
2.
3.
4.
5.
Environmental Analysis
Mission
Vision
Goals
Strategies
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-7
Environmental Analysis
Identifies external and internal
trends
◼
◼
To understand broad industry
issues
To make decisions using “big
picture” context
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-8
External Trends
◼
Opportunities:
• Environmental characteristics that
can help the organization succeed
◼
Threats:
• Environmental characteristics that
can prevent the organization from
being successful
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-9
External Trends—
Factors to Consider
◼
◼
◼
◼
Economic
Political/Legal
Social
Technological
◼
◼
◼
Competitors
Customers
Suppliers
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-10
Internal Trends
◼
Strengths:
• Internal characteristics that the
organization can use for its
advantage
◼
Weaknesses:
• Internal characteristics that can
hinder the success of the
organization
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-11
Internal Trends—
Factors to Consider
◼
◼
◼
◼
◼
Organizational structure
Organizational culture
Politics
Processes
Size
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-12
Gap Analysis
Analyzes:
External environment
(opportunities and threats)
vis-à-vis
Internal environment
(strengths and weaknesses)
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-13
Gap Analysis Determines:
➢Opportunity + Strength =
Leverage
➢Opportunity + Weakness =
Constraint
➢Threat + Strength = Vulnerability
➢Threat + Weakness = Problem
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-14
Strategic Planning for the
Organization
Environmental and Gap
Analyses provide information
for organizations to decide:
➢Who they are
➢What they do
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-15
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?
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-16
Mission Statement contains:
Information on an organization’s
▪ Basic product/service to be offered
▪ Primary market/customer groups
▪ Unique benefits and advantages of
product/services
▪ Technology to be used
▪ Concern for survival through
growth and profitability
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-17
Mission Statement May
Contain:
Information on an organization’s
values and beliefs
▪ Managerial philosophy
▪ Public image sought by organization
▪ Self-concept of business adopted by
• Employees
• Stockholders
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-18
Vision
◼
◼
◼
Statement of future aspirations
Focuses attention on what is
important
Provides context for evaluating
• Opportunities
• Threats
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-19
A Good Vision Statement:
Eight Characteristics
1.
2.
3.
4.
Brief
Verifiable
Bound by a Timeline
Current
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-20
A Good Vision Statement:
Eight Characteristics (Continued)
5.
6.
7.
8.
Focused
Understandable
Inspiring
A stretch
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-21
Purposes for Setting Goals
◼
◼
◼
◼
◼
Formalize expected achievements
Provide motivation
Provide tangible targets
Provide the basis for good
decisions
Provide the basis for performance
measurement
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-22
Strategies
◼
Create strategies, game plans or
“How to” procedures to address
issues of:
• Growth
• Survival
• Turnaround
• Stability
• Innovation
• Leadership
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-23
How the HR Function
Contributes:
◼
◼
◼
Communicate knowledge of
strategic plan
Provide knowledge of KSAs
needed for strategy
implementation
Propose reward systems
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-24
Strategic Plans at the Unit Level
◼
Every Unit mission statement,
vision statement, goals, and
strategies
Must clearly align with
and be congruent with
◼
the Organization’s mission
statement, vision statement,
goals, and strategies
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-25
Alignment of Strategic Plan with
Performance
Organization’s Strategic Plan
Mission, Vision, Goals, Strategies
Unit’s Strategic Plan
Mission, Vision, Goals, Strategies
Critical to involve all
employees
Critical to involve all
levels of
management
Job Description
Tasks, KSAs
Individual and Team Performance
Results, Behaviors, Developmental Plan
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-26
Strategic Consensus
◼
Definition: The state in which
various organizational units
agree on a common set of
strategic priorities
• Predicts firm performance
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-27
Two Ways to Achieve Strategic
Consensus
◼
◼
Strategies → Goals
vs.
Goals → Strategies
• Strategies → Goals better predicts
firm performance
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-28
Job Descriptions
◼
◼
Tasks and KSAs are
congruent with Organization
and Unit strategic plans.
Activities described support
mission and vision of
Organization and Unit.
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-29
Individual and Team
Performance
Organization and Unit mission,
vision, goals lead to:
➢ Performance management system,
which:
✓Motivates employees
✓Aligns development plans with
organization priorities
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-30
Strategic Plan →
Six Choices in PM System Design
1.
2.
3.
Criteria (Behavior vs. Results)
Participation (Low vs. High)
Temporal Dimension (Short
Term vs. Long Term)
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-31
Strategic Plan →
Six Choices in PM System Design
(Continued)
4.
5.
6.
Level of Criteria (Individual vs.
Team/Group)
System Orientation (Developmental
vs. Administrative)
Rewards (Pay for Performance vs.
Tenure/Position)
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-32
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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-33
Quick Review
➢
➢
Definition and Purposes of Strategic
Planning
Linking Performance Management to
the Strategic Plan
•
•
•
•
➢
Strategic Planning
Developing Strategic Plans at the Unit Level
Job Descriptions
Individual and Team Performance
Building Support
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-34
All rights reserved. No part of this publication may be
reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical,
photocopying, recording, or otherwise, without the prior
written permission of the publisher. Printed in the United
States of America.
Copyright © 2013 Pearson Education, Inc.
publishing as Prentice Hall
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-35
Purchase answer to see full
attachment