Ch3

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Ch3

  1. 1. Herman Aguinis, University of Colorado at DenverPerformance Management and StrategicPerformance Management and StrategicPlanning: OverviewPlanning: OverviewDefinition and Purposes of Strategic PlanningLinking Performance Management to theStrategic Plan– Strategic Planning– Developing Strategic Plans at the Unit Level– Job Descriptions– Individual and Team PerformanceBuilding Support
  2. 2. Herman Aguinis, University of Colorado at DenverStrategic Planning: DefinitionStrategic Planning: Definition• Process– Describe organization’s destination– Assess barriers– Select approaches for moving forward
  3. 3. Herman Aguinis, University of Colorado at DenverStrategic Planning: GoalStrategic Planning: Goal• Allocate resources– to provide organization– with competitive advantage
  4. 4. Herman Aguinis, University of Colorado at DenverStrategic Planning: PurposesStrategic Planning: Purposes Help define the organization’s identity Help organization prepare for the future Enhance ability to adapt to environmentalchange Provide focus and allow for betterallocation of resources(continued on next slide)
  5. 5. Herman Aguinis, University of Colorado at DenverStrategic Planning: PurposesStrategic Planning: PurposesProduce an organizational culture ofcooperationAllow for the consideration of new optionsand opportunitiesProvide employees with information to directdaily activities
  6. 6. Herman Aguinis, University of Colorado at DenverStrategic Planning : OverviewStrategic Planning : Overview1. Environmental Analysis2. Mission3. Vision4. Goals5. Strategies
  7. 7. Herman Aguinis, University of Colorado at DenverEnvironmental AnalysisEnvironmental AnalysisIdentifies external and internal trends• To understand broad industry issues• To make decisions using “big picture” context
  8. 8. Herman Aguinis, University of Colorado at DenverExternal trendsExternal trends• Opportunities:– environmental characteristics that can helpthe organization succeed• Threats:– environmental characteristics that canprevent the organization from beingsuccessful
  9. 9. Herman Aguinis, University of Colorado at DenverExternal trends –External trends –Factors to ConsiderFactors to Consider• Economic• Political/legal• Social• Technological• Competitors• Customers• Suppliers
  10. 10. Herman Aguinis, University of Colorado at DenverInternal trendsInternal trends• Strengths:– internal characteristics that the organizationcan use for its advantage• Weaknesses:– internal characteristics that can hinder thesuccess of the organization
  11. 11. Herman Aguinis, University of Colorado at DenverInternal trends –Internal trends –Factors to ConsiderFactors to Consider• Organizational structure• Organizational culture• Politics• Processes• Size
  12. 12. Herman Aguinis, University of Colorado at DenverGap AnalysisGap AnalysisAnalyzes:External environment(opportunities and threats)vis-à-visInternal environment(strengths and weaknesses)
  13. 13. Herman Aguinis, University of Colorado at DenverGap analysis determines:Gap analysis determines:Opportunity + Strength = LeverageOpportunity + Weakness = ConstraintThreat + Strength = VulnerabilityThreat + Weakness = Problem
  14. 14. Herman Aguinis, University of Colorado at DenverStrategic Planning for the OrganizationStrategic Planning for the OrganizationEnvironmental and Gap Analyses provideinformation for organizations to decide:Who they areWhat they do
  15. 15. Herman Aguinis, University of Colorado at DenverMissionMissionA 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?
  16. 16. Herman Aguinis, University of Colorado at DenverMission Statement contains:Mission Statement contains:A. Information on organization’s Basic product/service to be offered Primary market/customer groups Unique benefits and advantages ofproduct/services Technology to be used Concern for survival through growth andprofitability
  17. 17. Herman Aguinis, University of Colorado at DenverMission StatementMission Statement maymay contain:contain:B. Information on organization’s values and beliefs Managerial philosophy Public image sought by organization Self-concept of business adopted by Employees Stockholders
  18. 18. Herman Aguinis, University of Colorado at DenverVisionVision• Statement of future aspirations• Focuses attention on what is important• Provides context for evaluating– Opportunities– Threats
  19. 19. Herman Aguinis, University of Colorado at DenverA Good Vision Statement is:A Good Vision Statement is:BriefVerifiableBound by a TimelineCurrentFocusedUnderstandableInspiringA stretch
  20. 20. Herman Aguinis, University of Colorado at DenverPurposes for Setting GoalsPurposes for Setting Goals• Formalize expected achievements• Provide motivation• Provide tangible targets• Provide basis for good decisions• Provide basis for performance measurement
  21. 21. Herman Aguinis, University of Colorado at DenverStrategiesStrategies• Create strategies or Game Plans or “How to”procedures to address issues of:– Growth– Survival– Turnaround– Stability– Innovation– Leadership
  22. 22. Herman Aguinis, University of Colorado at DenverHow the HR Function contributes:How the HR Function contributes:• Communicate knowledge of strategic plan• Provide knowledge of KSAs needed forstrategy implementation• Propose reward systems
  23. 23. Herman Aguinis, University of Colorado at DenverStrategic Plans at the Unit LevelStrategic Plans at the Unit Level• Organization Mission statement, Visionstatement, Goals, and StrategiesMust clearly align withAnd be congruent with• Every Unit Mission statement, Visionstatement, Goals, and Strategies
  24. 24. Herman Aguinis, University of Colorado at DenverAlignment of Strategic Plan withAlignment of Strategic Plan withPerformancePerformanceOrganization’s Strategic PlanMission, Vision, Goals, StrategiesUnit’s Strategic PlanMission, Vision, Goals,StrategiesJob DescriptionTasks, KSAsIndividual and Team PerformanceResults, Behaviors, Developmental PlanCritical to involve alllevels of managementCritical to involve all employees
  25. 25. Herman Aguinis, University of Colorado at DenverJob DescriptionsJob Descriptions• Tasks and KSAs are congruent withOrganization and Unit strategic plans• Activities described support mission andvision of Organization and Unit
  26. 26. Herman Aguinis, University of Colorado at DenverIndividual and Team PerformanceIndividual and Team PerformanceOrganization and Unit mission, vision, goals lead toPerformance management system, whichMotivates employeesAligns development plans with organization priorities
  27. 27. Herman Aguinis, University of Colorado at DenverStrategic PlanStrategic Plan Choices in PM System DesignChoices in PM System Design• Criteria (Behavior vs. Results)• Participation (Low vs. High)• Temporal Dimension (Short Term vs. Long Term)• Level of Criteria (Individual vs. Team/Group)• System Orientation (Developmental vs.Administrative)• Rewards (Pay for Performance vs. Tenure/Position)
  28. 28. Herman Aguinis, University of Colorado at DenverBuilding Support –Building Support –Answering “What’s In It for Me?”Answering “What’s In It for Me?”• Top Management:– Help carry out vision• All levels:– Involvement– Participation– Understanding

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