BUSINESS STRATEGY & ITS LINK TO HRM

The success of any organization ultimately rests with its people (human
resources). From a macro business perspective, sound strategy along with a plan for its
execution is critical. A brief linear model to link strategy to HRM is as follows:

• Entrepreneurial Vision
• Strategic Planning (SWOT)
• Operational Action Planning (one aspect focuses on HRM)
• Organization Design & Creation of Roles/Jobs
• Workforce Planning
• Recruitment Planning & Selection of Human Resources
• Creation of a Performance Management System
• Creation of supportive HRM Polices & Systems

Clearly, these preliminary steps in the process of creating an organization, private or

public sectors, are essential and significantly influence the quality of HRM strategy.

ESSENTIALS OF PERFORMANCE MANAGEMENT

One of a manager’s core HRM responsibilities entails the direct management of

the people (human resources) in facilitating the task performance strategically needed by
the organization. In short, it is the “human element” of a manager’s role/job. This
responsibility consumes more energy and time than any other HRM activity because its
execution is daily and continuous. It is NOT simultaneous with performance appraisal or
review, though such review is commonly part of a performance management system.

From the perspective of a manager, effective HRM management does necessarily

require: (1) selecting (hiring), (2) developing (training), (3) motivating (including
compensating), (4) protecting (safety), (5) equitably treating (employee relations), (6)
terminating (including layoffs), and (7) understanding the people (human resources)
whose performance he/she will manage. However, these traditional HRM functions are
peripheral to the core task of managing the task performance of people.

Once employees with appropriate competencies and experience have been

systematically linked to performance expectations, the essential aspects of effective
performance management are:

1. Clarifying and Defining Performance Expectations.

a. Review the strategic objectives of the organization and the relation

between them and specific performance expectations for this person.
b. Define the scope of a person’s work responsibility (job analysis).
c. Establish specific GOALS (or work standards) to guide performance.
d. Define how performance will be measured (criteria).
 e. Define when and how performance will be reviewed.

2. Facilitating Actual Performance.

a. Provide adequate organizational resources.

b. Remove organizational obstacles and/or cope with constraints.
c. Provide training to improve job-related skills and abilities.
d. Provide employee assistance to cope with personal issues.

3. Influencing Behavior to Strengthen Performance.

a. Affirm effective performance-related behavior via immediate feedback.

b. Correct ineffective performance-related behavior via feedback.
c. Identify and address extraneous factors interfering with performance.

4. Motivating High Performance.

a. Provide appropriate economic and non-economic rewards/incentives.

b. Promote and encourage a supportive work culture & peer relations.
c. Address any issues of equity and fairness.

5. Reviewing Performance Results (periodic review).

a. Determine the degree to which performance expectations/goals were met

and/or evaluate performance in accord with organizational policies.
b. Identify performance issues related to ability & determine appropriate
developmental improvement.
c. Identify performance issues related to motivation & determine appropriate
corrective action.
d. Summarize and document performance based on a, b and c above.
e. Establish new performance goals and timetable for completion and review.

S. Mayer OSU 1/04