Performance Management AND Strategic Planning: Prof. Preeti Bhaskar Symbiosis Centre For Management Studies, NOIDA

PERFORMANCE MANAGEMENT
AND
STRATEGIC PLANNING
Prof. Preeti Bhaskar

Symbiosis Centre for Management Studies, NOIDA
Herman Aguinis, University of Colorado at Denver

Strategic Planning: Definition
• Process
• Describe organization’s
destination
• Assess barriers
• Select approaches for moving
forward
Prentice Hall, Inc. © 2006

Goal of Strategic Planning:
Allocate resources to
provide organization
with competitive
advantage
Strategic 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
 Produce an organizational culture of
cooperation
 Allow for the consideration of new options and
opportunities
 Provide employees with information to direct
daily activities

There was a good strategic
planning in most of the
organization , but there is no
clear relationship between
Organizational Level and
individual level goals.
There is a need to link the strategic planning with
individual goals

Alignment of Strategic Plan with
Performance
Critical to involve all
levels of management
Critical to involve all

unit head &
department head

Resent study including 338
organization in 42 countries
found performance
management is the 3rd most
important factor affecting
success of a strategic plan.

Linking among organization ,
Unit strategic Plan , Job
Description and individual and
Team
BANK OF UTAH
Washington, United States

Mission statement:
The mission of the corporation is to operate as a
High performing financial institution providing a
wide range of profitable Competitive and superior
financial services in our market
Goals:
To attract and retain an outstanding staff who are
highly motivated and productive and who vigorously
pursue revenue – generating and Costs-reduction
strategies
Strategy:
Critically reviews out existing branches and
departments to Ensure that all branches are
consistent in their goals, strategies, And profit
objectives.

Mission
(Department Level):
Increase the Knowledge,

management skills and Decision-
making abilities of our branches
Managers so that we will minimize
losses and other operating
expenses. While maximizing the
profitability of our branching
systems.

Position Description
for HR Manager
Administers A comprehensive
human resources program in the
division to ensure the expertise,
effectiveness, motivation, and
depth
( including providing appropriate
management succession) to the
division’s staff members.

Individual
Performance:
Information on various
responsibilities, standards
expected, goals to be reached, and
actions to be taken to improve
performance in the future..

Steps require for successful Strategic
Planning

Environmental Analysis SWOT
SWOT Analysis
Analysis
Identifies external and internal

trends
• To understand broad industry issues

• To make decisions using “big picture”
context

External trends
• Opportunities:
• environmental characteristics that can help the
organization succeed
• Threats:
• environmental characteristics that can prevent the
organization from being successful
Factors to Consider
• Economic • Technological
• Political/legal • Competitors
• Social • Customers
• Suppliers

Internal trends
• Strengths:
• internal characteristics that the
organization can use for its advantage
• Weaknesses:
• internal characteristics that can hinder the
success of the organization
Factors to Consider
• Organizational structure
• Organizational culture
• Politics
• Processes
• Size
Gap Analysis
Analyzes:
External environment
(opportunities and threats)
vis-à-vis
Internal environment
(strengths and weaknesses)

Gap analysis determines:
 Opportunity + Strength = Leverage
 Opportunity + Weakness = Constraint
 Threat + Strength = Vulnerability
 Threat + Weakness = Problem

Strategic Planning for the Organization
Environmental and Gap Analyses

provide information for organizations
to decide:
Who they are

What they do

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?

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
B. Information on organization’s values and beliefs
 Managerial philosophy
 Public image sought by organization
 Self-concept of business adopted by
 Employees
Stockholders
PrenticeHall, Inc. © 2006
Vision
• Statement of future aspirations
• Focuses attention on what is important
• Provides context for evaluating
• Opportunities
• Threats
A Good Vision Statement is:
 Brief  Focused
 Verifiable  Understandable
 Bound by a Timeline  Inspiring
 Current  A stretch
Purposes for Setting Goals
• Formalize expected achievements
• Provide motivation
• Provide tangible targets
• Provide basis for good decisions
• Provide basis for performance measurement
Strategies
• Create strategies or Game Plans or “How to”
procedures to address issues of:
• Growth
• Survival
• Turnaround
• Stability
• Innovation
• Leadership Herman Aguinis, University of Colorado at Denver
How the HR Function contributes:
• Communicate knowledge of strategic

plan
• Provide knowledge of KSAs needed for
strategy implementation
• Propose reward systems

Strategic 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

Job Descriptions
• Tasks and KSAs are congruent

with Organization and Unit
strategic plans
• Activities described support

mission and vision of
Organization and Unit

Individual and Team Performance
Organization and Unit mission, vision, goals lead

to
 Performance management system, which
 Motivates employees
 Aligns development plans with organization
priorities

Strategic Plan  Choices 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)
Building Support –
Answering “What’s In It for
Me?”
• Top Management:
• Help carry out vision
• All levels:
• Involvement
• Participation
• Understanding


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PERFORMANCE MANAGEMENT

Prof. Preeti Bhaskar

Herman Aguinis, University of Colorado at Denver

Prentice Hall, Inc. © 2006

Prentice Hall, Inc. © 2006

Herman Aguinis, University of Colorado at Denver

Critical to involve all

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Increase the Knowledge,

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Herman Aguinis, University of Colorado at Denver

Identifies external and internal

• To understand broad industry issues

Prentice Hall, Inc. © 2006

Prentice Hall, Inc. © 2006

Prentice Hall, Inc. © 2006

 Opportunity + Weakness = Constraint

 Threat + Strength = Vulnerability

 Threat + Weakness = Problem

Prentice Hall, Inc. © 2006

Environmental and Gap Analyses

Who they are

Prentice Hall, Inc. © 2006

Prentice Hall, Inc. © 2006

A Good Vision Statement is:

• Communicate knowledge of strategic

Prentice Hall, Inc. © 2006

• Organization Mission statement, Vision

Must clearly align with………

• Every Unit Mission statement, Vision

Prentice Hall, Inc. © 2006

• Tasks and KSAs are congruent

• Activities described support

Prentice Hall, Inc. © 2006

Organization and Unit mission, vision, goals lead

Prentice Hall, Inc. © 2006

Prentice Hall, Inc. © 2006

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