Ch3
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This document discusses strategic planning and performance management. It defines strategic planning as assessing an organization's environment, mission, vision, goals and strategies. The author explains how to conduct environmental and gap analyses and develop a mission, vision and goals. Additionally, it emphasizes aligning performance management with strategic plans by linking job descriptions, individual goals, and rewards to the organization and unit missions and strategies. This ensures employees' daily activities support the strategic plan and motivates performance.
Ch3
- 1. Herman Aguinis, University of Colorado at Denver Performance Management and StrategicPerformance Management and Strategic Planning: OverviewPlanning: 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
- 2. Herman Aguinis, University of Colorado at Denver Strategic Planning: DefinitionStrategic Planning: Definition • Process – Describe organization’s destination – Assess barriers – Select approaches for moving forward
- 3. Herman Aguinis, University of Colorado at Denver Strategic Planning: GoalStrategic Planning: Goal • Allocate resources – to provide organization – with competitive advantage
- 4. Herman Aguinis, University of Colorado at Denver Strategic Planning: PurposesStrategic Planning: Purposes Help define the organization’s identity Help organization prepare for the future Enhance ability to adapt to environmental change Provide focus and allow for better allocation of resources (continued on next slide)
- 5. Herman Aguinis, University of Colorado at Denver Strategic Planning: PurposesStrategic Planning: Purposes Produce an organizational culture of cooperation Allow for the consideration of new options and opportunities Provide employees with information to direct daily activities
- 6. Herman Aguinis, University of Colorado at Denver Strategic Planning : OverviewStrategic Planning : Overview 1. Environmental Analysis 2. Mission 3. Vision 4. Goals 5. Strategies
- 7. Herman Aguinis, University of Colorado at Denver Environmental AnalysisEnvironmental Analysis Identifies external and internal trends • To understand broad industry issues • To make decisions using “big picture” context
- 8. Herman Aguinis, University of Colorado at Denver External trendsExternal trends • Opportunities: – environmental characteristics that can help the organization succeed • Threats: – environmental characteristics that can prevent the organization from being successful
- 9. Herman Aguinis, University of Colorado at Denver External trends –External trends – Factors to ConsiderFactors to Consider • Economic • Political/legal • Social • Technological • Competitors • Customers • Suppliers
- 10. Herman Aguinis, University of Colorado at Denver Internal trendsInternal trends • Strengths: – internal characteristics that the organization can use for its advantage • Weaknesses: – internal characteristics that can hinder the success of the organization
- 11. Herman Aguinis, University of Colorado at Denver Internal trends –Internal trends – Factors to ConsiderFactors to Consider • Organizational structure • Organizational culture • Politics • Processes • Size
- 12. Herman Aguinis, University of Colorado at Denver Gap AnalysisGap Analysis Analyzes: External environment (opportunities and threats) vis-à-vis Internal environment (strengths and weaknesses)
- 13. Herman Aguinis, University of Colorado at Denver Gap analysis determines:Gap analysis determines: Opportunity + Strength = Leverage Opportunity + Weakness = Constraint Threat + Strength = Vulnerability Threat + Weakness = Problem
- 14. Herman Aguinis, University of Colorado at Denver Strategic Planning for the OrganizationStrategic Planning for the Organization Environmental and Gap Analyses provide information for organizations to decide: Who they are What they do
- 15. Herman Aguinis, University of Colorado at Denver MissionMission 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?
- 16. Herman Aguinis, University of Colorado at Denver Mission Statement contains:Mission Statement contains: A. Information on 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
- 17. Herman Aguinis, University of Colorado at Denver Mission 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. Herman Aguinis, University of Colorado at Denver VisionVision • Statement of future aspirations • Focuses attention on what is important • Provides context for evaluating – Opportunities – Threats
- 19. Herman Aguinis, University of Colorado at Denver A Good Vision Statement is:A Good Vision Statement is: Brief Verifiable Bound by a Timeline Current Focused Understandable Inspiring A stretch
- 20. Herman Aguinis, University of Colorado at Denver Purposes 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. Herman Aguinis, University of Colorado at Denver StrategiesStrategies • Create strategies or Game Plans or “How to” procedures to address issues of: – Growth – Survival – Turnaround – Stability – Innovation – Leadership
- 22. Herman Aguinis, University of Colorado at Denver How the HR Function contributes:How the HR Function contributes: • Communicate knowledge of strategic plan • Provide knowledge of KSAs needed for strategy implementation • Propose reward systems
- 23. Herman Aguinis, University of Colorado at Denver Strategic Plans at the Unit LevelStrategic Plans at the Unit Level • Organization Mission statement, Vision statement, Goals, and Strategies Must clearly align with And be congruent with • Every Unit Mission statement, Vision statement, Goals, and Strategies
- 24. Herman Aguinis, University of Colorado at Denver Alignment of Strategic Plan withAlignment of Strategic Plan with PerformancePerformance Organization’s Strategic Plan Mission, Vision, Goals, Strategies Unit’s Strategic Plan Mission, Vision, Goals, Strategies Job Description Tasks, KSAs Individual and Team Performance Results, Behaviors, Developmental Plan Critical to involve all levels of management Critical to involve all employees
- 25. Herman Aguinis, University of Colorado at Denver Job DescriptionsJob Descriptions • Tasks and KSAs are congruent with Organization and Unit strategic plans • Activities described support mission and vision of Organization and Unit
- 26. Herman Aguinis, University of Colorado at Denver Individual and Team PerformanceIndividual and Team Performance Organization and Unit mission, vision, goals lead to Performance management system, which Motivates employees Aligns development plans with organization priorities
- 27. Herman Aguinis, University of Colorado at Denver Strategic 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. Herman Aguinis, University of Colorado at Denver Building 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