Description
DB- Module 04: Performance Management and Strategy
Chapter 3 discusses various aspects of strategic planning. As noted in the textbook, it is important to link performance management to strategy. For this discussion board, please consider the scenario below.
Scenario
You are the newly hired HR Director for a large healthcare organization, which serves elderly individuals. Over 1,000 healthcare employees (e.g., physicians, nurses, etc.) are employed by your company. You have been told, by the leaders of your organization, that the performance management system used by the company is not fully aligned with the organization’s strategic plan.
For this discussion board post, please address the following:
- Explain why the job descriptions for all workers must be in alignment with the organization’s mission, goals, and strategies.
- Address how you can effectively communicate the strategic plan to all organizational employees.
- Why does the organization’s compensation strategy need to be aligned with the company’s strategic plan?
Directions:
- Discuss the concepts, principles, and theories from your textbook. Cite your textbooks and cite any other sources if appropriate.
- Your initial post should address all components of the question with a 500 word limit.
In this module, you will examine the components of a strategic plan and evaluate the relationship between strategic plans and their accompanying performance management systems. You will also explore the strength and effectiveness of compensation and reward systems in a performance management system in relation to organizational goals.
Learning Outcomes
- Evaluate the design and implementation of performance management systems.
- Analyze the components of strategic planning in performance management.
- Compare the role of reward systems and their relationship to performance management systems.
Readings
Required:
- Chapter 3 in Performance Management: Performance Management Process
- Sowa, J. E. (2020). Reinvigorating the spirit of strategic human resource management. Public Personnel Management, 49(3), 331-335.
- Sanders, K., Jorgensen, F., Shipton, H., Van Rossenberg, Y., Cunha, R., Li, X., Rodrigues, R., Wong, S. I., & Dysvik, A. (2018). Performance‐based rewards and innovative behaviors. Human Resource Management, 57(6), 1455–1468.
Recommended:
- Chapter 3 PowerPoint Presentation from Performance Management
- The, E. (2020, January 30). How to implement a new performance management plan. Rise. Retrieved from
Chapter 3
Performance Management and Strategic
Planning
Copyright © 2023 Chicago Business Press
3-2
Overview
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■
■
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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
3-3
Copyright © 2023 Chicago Business Press
Strategic Planning: Definition
■
Process
• Describe the organization’s destination
• Assess barriers
• Select approaches for moving forward
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3-4
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: Purposes
Helps define the organization’s identity
Helps organizations prepare for the future
Enhances ability to adapt to environmental changes
Provides focus and allows for better allocation of resources
Provides focus and allows for better allocation of resources
Produces an organization of new options and opportunities
Provides employees with information to direct daily activities
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Aligning Strategic Plan & Performance
3-7
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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
Copyright © 2023 Chicago Business Press
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Strategic Planning Process
■
■
■
■
■
■
■
Critical Role of the HR Function
Environmental (SWOT) Analysis
Mission
Vision
Objectives
Strategies
Job Descriptions
Copyright © 2023 Chicago Business Press
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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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3-10
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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Strategic Planning Process
Environmental Analysis Internal Trends
■
■
Strengths:
• Internal characteristics that organization uses
to its advantage
Weaknesses:
• Internal characteristics that can hinder success
of the organization
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3-12
Strategic Planning Process
Environmental Analysis External
Trends
■
■
Opportunities:
• Environmental characteristics that can help the
organization succeed
Threats:
• Environmental characteristics that can prevent
the organization from being successful
Copyright © 2023 Chicago Business Press
3-13
Strategic Planning Process
Environmental Analysis
Trends to Consider
External
Internal
Economic
Organization structure
Political/Legal
Organization culture
Social
Politics
Technological
Processes
Competitors
Size
Customers
Blank
Suppliers
Blank
3-14
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Strategic Planning Process
Gap Analysis
Analyzes:
External environment
(opportunities and threats)
vis-à-vis
Internal environment
(strengths and weaknesses)
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Strategic Planning Process
Gap Analysis Determines
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3-16
Strategic Planning for the Organization
Environmental and Gap Analyses provide
information for organizations to decide:
■
Who they are
■
What they do
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Company Spotlight(1 of 2)
SWOT
Strengths
Weakness
• First to market
• Host incentive(hosts can
make money)
• Ease of use (search by
price, location, dates)
• Website design
• Profiles (browse hosts
and review them)
• No daily updates required
for listings
• Lack of brand awareness
in new markets
• Company quality
dependent on hosts and
customer
• Ease of competitor entry
• Legal cost to deal with
zoning laws(e.g.,
prohibiting people from
running a business)
• Insurance costs to protect
hosts and customers
Copyright © 2023 Chicago Business Press
3-18
Company Spotlight(2 of 2)
SWOT
Opportunities
Threats
• Lower prices than hotels
• More connected to city and
its culture
• Easy to become a host and
connect with local residents
• Large market for temporary
housing
• Growing use of online
booking
• Established lodging
providers(e.g., hotels)
• Online rooms(e.g.,
craigslist, couch surfing
com)
• Competitors copying
business model
• Bad press surrounding poor
room, poor customers, or
poor hosts
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3-19
Company Spotlight
Gap Analysis
■
■
Provide alternative to hotels by providing
temporary housing that allows hosts to make
money and users to save money and experience
local culture.
Provide easy-to-use web platform that allow hosts
to easily list temporary housing by posting their
listing once, and users to easily search and filter.
Copyright © 2023 Chicago Business Press
3-20
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 © 2023 Chicago Business Press
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Mission Statement Should Contain:
Basic product/service to be offered(does what)
Primary markets or customer groups to be served (to whom)
Unique benefits, feature, and advantages of products/services(with
what benefits)
Technology to be used in production or delivery
Fundamental concern for survival through growth and profitability
Managerial philosophy of the organization
Public image sought by organization
Self-concept of business adopted by employees, shareholders and
other stakeholders
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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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3-23
A Good Vision Statement: Eight
Characteristics
Brief
Verifiable
Bound by a timeline
Current
Focused
Understandable
Inspiring
A stretch
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Objectives(1 of 2)
■
What organization hopes to achieve in
the medium- to long-range period
• Next three to five years
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Objectives(2 of 2)
■
■
■
■
■
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
Copyright © 2023 Chicago Business Press
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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
Copyright © 2023 Chicago Business Press
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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
Copyright © 2023 Chicago Business Press
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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
Copyright © 2023 Chicago Business Press
3-30
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 © 2023 Chicago Business Press
3-31
What’s In It for Me (WIIFM)?
■
■
How does answering this question build support
for the performance management system?
What role does context play in crafting the
message about performance management?
Copyright © 2023 Chicago Business Press
3-32
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
Copyright © 2023 Chicago Business Press
3-33
Copyright
■
■
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 © 2023 Chicago Business Press
Copyright © 2023 Chicago Business Press
34
DB- Module 04: Performance Management and Strategy
Chapter 3 discusses various aspects of strategic planning. As noted in the textbook, it is
important to link performance management to strategy. For this discussion board, please
consider the scenario below.
Scenario
You are the newly hired HR Director for a large healthcare organization, which serves
elderly individuals. Over 1,000 healthcare employees (e.g., physicians, nurses, etc.) are
employed by your company. You have been told, by the leaders of your organization, that
the performance management system used by the company is not fully aligned with the
organization’s strategic plan.
For this discussion board post, please address the following:
• Explain why the job descriptions for all workers must be in alignment with the
organization’s mission, goals, and strategies.
• Address how you can effectively communicate the strategic plan to all
organizational employees.
• Why does the organization’s compensation strategy need to be aligned with the
company’s strategic plan?
Directions:
• Discuss the concepts, principles, and theories from your textbook. Cite your
textbooks and cite any other sources if appropriate.
• Your initial post should address all components of the question with a 500 word
limit.
In this module, you will examine the components of a strategic plan and evaluate the
relationship between strategic plans and their accompanying performance management
systems. You will also explore the strength and effectiveness of compensation and reward
systems in a performance management system in relation to organizational goals.
Learning Outcomes
1. Evaluate the design and implementation of performance management systems.
2. Analyze the components of strategic planning in performance management.
3. Compare the role of reward systems and their relationship to performance
management systems.
Readings
Required:
• Chapter 3 in Performance Management: Performance Management Process
• Sowa, J. E. (2020). Reinvigorating the spirit of strategic human resource
management. Public Personnel Management, 49(3), 331-335.
• Sanders, K., Jorgensen, F., Shipton, H., Van Rossenberg, Y., Cunha, R., Li, X.,
Rodrigues, R., Wong, S. I., & Dysvik, A. (2018). Performance‐based rewards and
innovative behaviors. Human Resource Management, 57(6), 1455–1468.
Recommended:
• Chapter 3 PowerPoint Presentation from Performance Management
•
The, E. (2020, January 30). How to implement a new performance management
plan. Rise. Retrieved from
Purchase answer to see full
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