Managing Strategic Performance Lecture Notes. Lecture 1 24/03/16. MSP Definition. - Niche subject in HR. Performance Management Definition
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1 Managing Strategic Performance Lecture Notes Lecture 1 24/03/16 MSP Definition - Niche subject in HR Performance Management Definition Performance: - Task vs contextual performance - Results vs behaviours (social performance) - Organisational vs team vs individual performance (Multilayered) Definition: - Means which mangers ensure employees activities and outputs are congruent with organisation s goals - Performance appraisal: niche process which organisation gets info on how well someone is doing their job (analyse how well employee s performance is) - Performance feedback: process of providing employees with information regarding performance effectiveness. Evolution of PM (Performance Management) Main Features of PM
2 - Strategic (Corporate) - Integrated - Shared - Continuous process - Organisationally specific - Flexible - Owned and delivered by managers Problems in Operationalising Strategic PM - Develop corporate strategy - Short term focus for companies - Change experienced by organisation - Setting objectives (all levels) - Achieving integration vertically & horizontally PM as Strategic Process - Induction and socialisation - Performance planning - Review, feedback - Identify outcomes (reward, training & ) - Counselling and support Benefits of Strategic Approach - Help achieve organisation strategic aims - Enhances individual and group performance - Clarifies organisational goals and creates line of sight - Enhances motivation, commitment and engagement - Creates culture of performance and continuous improvement - Facilitates organisational change - Clarifies individual responsibilities and expected behaviour - Develops employee capabilities - Helps people understand themselves - Facilitates communication and involvement - Helps managers manage - Provides information for making HR-related decisions Role of HR Function - Designing and communicating performance management strategy - Reviewing strategy - Supporting line managers - Give employment relations between people highly trustworthy. HR & Performance Link 1. Universalistic/best practice HRM 2. Contingency/best fit 3. Resource-Based View of firm (RBV)
3 Best Practice HRM - Highlight relationship of sets of good HR practice and performance - HR practices operate more effectively when combined together into coherent and integrated bundle - Universally applicable - High Commitment Management, High Performance Work Systems PFeffer s Seven HR Practices 1988 Employee security Harmonisation Recruitment & selection Compensation Training & Team working Communication Wood & DE Menezes Eight HR Practices 1998 Recruitment & selection Skill Appraisals Collective participation Employee security Performancebased reward Training & High wages Empowerment
4 Appelbaum Et Al High Performance Work Systems - Opportunities to participate (ability to grow) - Skill enhancement - Incentives (financial and non-financial) to increase motivation Criticisms (Best Practice) - One size fit all? - Lack consensus over core HR practices and their content - Methodological problems - Fails to address issue of causality - Black Box problem (not knowing the minute details between a starting and ending point of an applied strategy) how & why practices make difference Best Fit - Effectiveness HR strat, policy and prac depends on how close they re aligned to internal + external environment - Context factors taken into account - Emphasises vertical integration Linking HR to Competitive Strategy Different Role Behaviours for Different Competitive Strategies - Innovation Risk taking, cooperation, creativity Selection, appraisals, high level discretion, broad career paths - Cost Reduction Predictable behaviours, short term, concern for quality Flexible work force, low investment in training, tightly defined jobs. (Schuler & Jackson (1987)
5 Criticism (Best Fit) - Defining organisational strategy - Not flexible b/c increasingly volatile environments - Limited empirical support - Issue of causality and Black Box Problem Resource Based View (RBV) - Internal resources of firm (inside out) - Value: resource must add value to firm - Rarity: firm doing something different with employees unlike their competitors? - Inimitability: resources difficult to copy - Substitutability: resources can t be easily substituted RBV Criteria for Resources - Value Employees with high skill level - Rarity Highly specific skills - Imitability Employees with skills and knowledge (difficult to copy) - Substitutability Skills/knowledge not easily replaced by other factors Unlocking Black Box (HR Causal Chain)
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