Chapter3

PerformanceManagementandStrategicPlanningCopyright?2019ChicagoBusinessPress3-1OverviewDefinitionandPurposesofStrategicPlanningLinkingPerformanceManagementtotheStrategicPlanStrategicPlanningProcessCriticalRoleofHRinStrategicPlanningDevisinganenvironmental(i.e.,SWOT)analysisProducestate-of-the-sciencemissionandvisionstatements,objectives,andstrategiesDeviseeffectivejobdescriptionsBuildingSupport3-2Copyright?2019ChicagoBusinessPressStrategicPlanning:DefinitionProcessDescribetheorganization’sdestinationAssessbarriersSelectapproachesformovingforward3-3Copyright?2019ChicagoBusinessPressStrategicPlanning:GoalAllocateresourcestoprovidetheorganizationwithcompetitiveadvantageBlueprintthatdefineshowtheorganizationwillallocateitsresourcesinpursuitofitsmostcriticalandimportantobjectives3-4Copyright?2019ChicagoBusinessPressStrategicPlanning:Purposes3-5Copyright?2019ChicagoBusinessPressAligningStrategicPlan&Performance3-6Copyright?2019ChicagoBusinessPressStrategicPlanning:OverviewOrganizationalStrategicPlanMission;Vision;Objectives;StrategiesUnitStrategicPlanMission;Vision;Objectives;StrategiesJobDescriptionsTasks;Knowledge;Skills;Abilities3-7Copyright?2019ChicagoBusinessPressLinkingPerformanceManagementandStrategicPlanTheBalancedScorecardApproachWhatarekeyelementsofthebalancedscorecardapproach?Howcanthisapproachcreatecongruencebetweenperformancemanagementandthestrategicplan?3-8Copyright?2019ChicagoBusinessPressStrategicPlanningProcessCriticalRoleoftheHRFunctionEnvironmental(SWOT)AnalysisMissionVisionObjectivesStrategiesJobDescriptions3-9Copyright?2019ChicagoBusinessPressStrategicPlanningProcess

CriticalRoleoftheHRFunctionCommunicateknowledgeofstrategicplanOutlineknowledge,skills,andabilities(KSAs)neededforstrategyimplementationProposecompensationsystems3-10Copyright?2019ChicagoBusinessPressStrategicPlanningProcess

EnvironmentalAnalysisIdentifiesexternalandinternaltrendsTounderstandbroadindustryissuesUsedtomakedecisionsusing“bigpicture”context3-11Copyright?2019ChicagoBusinessPressStrategicPlanningProcess

EnvironmentalAnalysis

InternalTrends3-12Copyright?2019ChicagoBusinessPressStrengths:

InternalcharacteristicsthatorganizationusestoitsadvantageWeaknesses:

Internalcharacteristicsthatcanhindersuccess

oftheorganizationStrategicPlanningProcess

EnvironmentalAnalysis

ExternalTrends3-13Copyright?2019ChicagoBusinessPressOpportunities:

EnvironmentalcharacteristicsthatcanhelptheorganizationsucceedThreats:EnvironmentalcharacteristicsthatcanpreventtheorganizationfrombeingsuccessfulStrategicPlanningProcess

EnvironmentalAnalysis

TrendstoConsider3-14Copyright?2019ChicagoBusinessPressStrategicPlanningProcess

GapAnalysis3-15Copyright?2019ChicagoBusinessPressAnalyzes:Externalenvironment(opportunitiesandthreats)vis-à-visInternalenvironment(strengthsandweaknesses)StrategicPlanningProcess

GapAnalysis

Determines3-16Copyright?2019ChicagoBusinessPressOpportunity+

Strength=LeverageOpportunity+Weakness=Constraint

Threat+Strength=VulnerabilityThreat+Weakness=Problem

StrategicPlanningfortheOrganizationEnvironmentalandGapAnalysesprovideinformationfororganizationstodecide:WhotheyareWhattheydo

3-17Copyright?2019ChicagoBusinessPressConductingaSWOTAnalysisConductingaSWOTAnalysisWhenshouldorganizationsconductaSWOTAnalysis?WhatisthedifferencebetweenWeaknessesandThreats?3-18Copyright?2019ChicagoBusinessPressCompanySpotlight3-19Copyright?2019ChicagoBusinessPressSWOTCompanySpotlight3-20Copyright?2019ChicagoBusinessPressSWOTCompanySpotlight

GapAnalysis3-21Copyright?2019ChicagoBusinessPressProvidealternativetohotelsbyprovidingtemporaryhousingthatallowshoststomakemoneyanduserstosavemoneyandexperiencelocalculture.Provideeasy-to-usewebplatformthatallowhoststoeasilylisttemporaryhousingbypostingtheirlistingonce,anduserstoeasilysearchandfilter.MissionAgoodmissionstatementanswers:Whydoestheorganizationexist?Whatisthescopeoftheorganization’sactivities?Whoarethecustomersserved?Whataretheproductsorservicesoffered?

3-22Copyright?2019ChicagoBusinessPressMissionStatement

ShouldContain:3-23Copyright?2019ChicagoBusinessPressVisionStatementoffutureaspirationsFocusesattentiononwhatisimportantProvidescontextforevaluatingOpportunitiesThreats3-24Copyright?2019ChicagoBusinessPressAGoodVisionStatement:

EightCharacteristics3-25Copyright?2019ChicagoBusinessPressObjectivesWhatorganizationhopestoachieveinthemedium-tolong-rangeperiodNextthreetofiveyears3-26Copyright?2019ChicagoBusinessPressObjectivesMorespecificinformationregardinghowmissionwillbeimplementedBasisformakingdecisionsbykeepingoutcomesinmindAllowsforcomparisonofwhatneedstobeachievedversuswhateachunit,group,andindividualisachievingAsourceofmotivationProvidesemployeeswithamoretangibletargetforwhichtostrive3-27Copyright?2019ChicagoBusinessPressStrategiesDescriptionsofgameplansorhow-toprocedurestoreachthestatedobjectivesAddressissuesof:GrowthSurvivalTurnaroundStabilityInnovationTalentAcquisitionLeadership 3-28Copyright?2019ChicagoBusinessPressStrategicPlansatUnitLevelEveryUnitmissionstatement,visionstatement,goals,andstrategiesMustclearlyalignwithandbecongruentwithOrganization’smissionstatement,visionstatement,goals,andstrategies3-29Copyright?2019ChicagoBusinessPressJobDescriptionsNeedtobecongruentwithandsupporttheorganizationandunitmission,vision,objectives,andstrategiesProvidesinformationaboutthevarioustasksperformed,togetherwithadescriptionofsomeoftheKSAsrequiredfortheposition3-30Copyright?2019ChicagoBusinessPressBuildingSupport—

Answering“What’sinItforMe?”Fortopmanagementsupport:EmphasizethatPMhelpscarryoutanorganization’svisionForsupportfromalllevels:ClearlycommunicatenatureandconsequencesofPMInvolveemployeesintheprocessofPMdesignandimplementation3-31Copyright?2019ChicagoBusinessPressIndividualandTeamPerformanceOrganizationandUnitmission,vision,goalsleadtoPerformancemanagementsystem,which:MotivatesemployeesAlignsdevelopmentplanswithorganizationpriorities3-32Copyright?2019ChicagoBusinessPressWhat’sInItforMe(WIIFM)?AnsweringtheWhat’sinitForMe(WIIFM)questionHowdoesansweringthisquestionbuildsupportfortheperformancemanagementsystem?Whatroledoescontextplayincraftingthemessageaboutperformancemanagement?3-33Copyright?