Chapter 3 discusses various aspects of strategic planning, including the mission statement of the organization. What are the dangers of having a flawed mission statement? How does a flawed statement affect the development of a unit’s mission statement and subsequent individual job descriptions and goals? Why?Direction: * Be sure to support your statements with logic and argument.* citing any sources referenced and cite inside the text APA style Academic writing 6-8 paragraphs including ( introduction – body – conclusion )
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Chapter 3
Performance
Management and
Strategic Planning
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3-1
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
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3-2
Strategic Planning: Definition

Process
•Describe the organization’s
destination
•Assess barriers
•Select approaches for
moving forward
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3-3
Strategic Planning: Goal

Allocate resources to provide the
organization with competitive
advantage
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3-4
Strategic Planning: Purposes




Help define the organization’s
identity
Help the organization prepare
for the future
Enhance the ability to adapt to
environmental change
Provide focus and allow for
better allocation of resources
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3-5
Strategic Planning: Purposes
(Continued)
Produce an organizational
culture of cooperation
✓ Allow for the consideration of
new options and opportunities
✓ Provide employees with
information to direct daily
activities

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3-6
Strategic Planning : Overview
1.
2.
3.
4.
5.
Environmental Analysis
Mission
Vision
Goals
Strategies
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3-7
Environmental Analysis
Identifies external and internal
trends


To understand broad industry
issues
To make decisions using “big
picture” context
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3-8
External Trends

Opportunities:
• Environmental characteristics that
can help the organization succeed

Threats:
• Environmental characteristics that
can prevent the organization from
being successful
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3-9
External Trends—
Factors to Consider




Economic
Political/Legal
Social
Technological



Competitors
Customers
Suppliers
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3-10
Internal Trends

Strengths:
• Internal characteristics that the
organization can use for its
advantage

Weaknesses:
• Internal characteristics that can
hinder the success of the
organization
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3-11
Internal Trends—
Factors to Consider





Organizational structure
Organizational culture
Politics
Processes
Size
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3-12
Gap Analysis
Analyzes:
External environment
(opportunities and threats)
vis-à-vis
Internal environment
(strengths and weaknesses)
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3-13
Gap Analysis Determines:
➢Opportunity + Strength =
Leverage
➢Opportunity + Weakness =
Constraint
➢Threat + Strength = Vulnerability
➢Threat + Weakness = Problem
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3-14
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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3-15
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?
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3-16
Mission Statement contains:
Information on an 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
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3-17
Mission Statement May
Contain:
Information on an organization’s
values and beliefs
▪ Managerial philosophy
▪ Public image sought by organization
▪ Self-concept of business adopted by
• Employees
• Stockholders
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3-18
Vision



Statement of future aspirations
Focuses attention on what is
important
Provides context for evaluating
• Opportunities
• Threats
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3-19
A Good Vision Statement:
Eight Characteristics
1.
2.
3.
4.
Brief
Verifiable
Bound by a Timeline
Current
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3-20
A Good Vision Statement:
Eight Characteristics (Continued)
5.
6.
7.
8.
Focused
Understandable
Inspiring
A stretch
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3-21
Purposes for Setting Goals





Formalize expected achievements
Provide motivation
Provide tangible targets
Provide the basis for good
decisions
Provide the basis for performance
measurement
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3-22
Strategies

Create strategies, game plans or
“How to” procedures to address
issues of:
• Growth
• Survival
• Turnaround
• Stability
• Innovation
• Leadership
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3-23
How the HR Function
Contributes:



Communicate knowledge of
strategic plan
Provide knowledge of KSAs
needed for strategy
implementation
Propose reward systems
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3-24
Strategic Plans at the Unit Level

Every Unit mission statement,
vision statement, goals, and
strategies
Must clearly align with
and be congruent with

the Organization’s mission
statement, vision statement,
goals, and strategies
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3-25
Alignment of Strategic Plan with
Performance
Organization’s Strategic Plan
Mission, Vision, Goals, Strategies
Unit’s Strategic Plan
Mission, Vision, Goals, Strategies
Critical to involve all
employees
Critical to involve all
levels of
management
Job Description
Tasks, KSAs
Individual and Team Performance
Results, Behaviors, Developmental Plan
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3-26
Strategic Consensus

Definition: The state in which
various organizational units
agree on a common set of
strategic priorities
• Predicts firm performance
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3-27
Two Ways to Achieve Strategic
Consensus


Strategies → Goals
vs.
Goals → Strategies
• Strategies → Goals better predicts
firm performance
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3-28
Job Descriptions


Tasks and KSAs are
congruent with Organization
and Unit strategic plans.
Activities described support
mission and vision of
Organization and Unit.
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3-29
Individual and Team
Performance
Organization and Unit mission,
vision, goals lead to:
➢ Performance management system,
which:
✓Motivates employees
✓Aligns development plans with
organization priorities
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3-30
Strategic Plan →
Six Choices in PM System Design
1.
2.
3.
Criteria (Behavior vs. Results)
Participation (Low vs. High)
Temporal Dimension (Short
Term vs. Long Term)
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Strategic Plan →
Six Choices in PM System Design
(Continued)
4.
5.
6.
Level of Criteria (Individual vs.
Team/Group)
System Orientation (Developmental
vs. Administrative)
Rewards (Pay for Performance vs.
Tenure/Position)
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3-32
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
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3-33
Quick Review


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
Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall
3-34
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 © 2013 Pearson Education, Inc.
publishing as Prentice Hall
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3-35

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