Strategic Planning and Performance of Stakeholders Order Instructions: To be successful, human resources managers must create and implement a strategy that not only meets organizational goals but also takes into consideration the roles and responsibilities of important stakeholders.
Achieving this alignment requires careful planning.
In this Key Concept Exercise, you will explore the challenges of strategic planning and performance management systems design.
• Write a 550-word analysis of the relationship between strategic planning and performance management systems design, including the roles and responsibilities of stakeholders.
• In formulating your Key Concept Exercise, consider the following questions:
o How can organizational and HR leaders align the performance management system with the strategic plan?
o How can a performance management system help achieve critical elements of the strategic plan?
o Who should be responsible for, or have input into, the process of planning for performance management?
Strategic Planning and Performance of Stakeholders Sample Answer
Strategic Plan
Strategic planning is the organizational process of strategy definition and the appropriate allocation of core resources that need to be used in implementing these strategies (Johnston et al., 2013). Therefore, a strategic plan is a plan that is structured using appropriate strategies and resources to achieve his strategic goals of an organization. On the other hand, a performance management design is a key employee management system in business organizations (Adler, 2011). Its core purpose is to make effective use of Human relations management practices to effectively control the performance of individual employees and the organization. The two aspects mentioned above are used to improve mainly the performance of an organization by helping it achieve its strategic goals.
The HRM of a given organization is the one tasked to integrate these key aspects of an organization to effectively improve the output of the organization. The success of the organization solely depends on the ability of the HRM department in creating a shared understanding of what is to be achieved and the strategies to be put in place to achieve them. This entails solving the strategic plan first before moving on to the performance management system. Therefore, the two crucial components of a business organization go hand in hand.
The HRM department can effectively align the performance management system with a strategic plan in the following way. The organization has goals to be achieved. The first thing to identify are the goals to be achieved by the organization. Then the Human Relation Managers will look at the goals and the business environment to dictate which strategies are going to be used to achieve the said goals. After careful evaluation of the strategies, a strategic plan will be drawn up including all the necessary resources to be used I achieving the said goals. Consequently, a performance management design will be drawn up guided by the strategic goals of the organization. Then, the performance management design will be implemented guided by the ability of an employee to perform towards making the implementation of the strategic plan a success (De Waal, 2013). Therefore, the purpose of the performance management plan is to gauge the employee’s efforts toward successfully implementing the strategic plan.
The performance management system can help achieve critical elements of the strategic plan in some ways. First of all stakeholder are very crucial to the success of any organization. Therefore, the first step to achieving critical elements of the strategic plan is to involve the stakeholders. The second step is to have a scope of the goals of the strategic plan and purposes for management. Having an idea of the scope will provide valuable information about what the Performance management system will be looking to evaluate. The aspects to be evaluated include the effective and efficient use of resources. The strategic plan and the performance management system are closely tied to the guiding principles that help them achieve the organizational goals.
The management and the HRM department have the responsibility of planning the process of designing a suitable performance management system. The reason being that managers usually deal with ensuring that all resources are used in an appropriate manner to ensure that the goals of an organization are achieved efficiently. Therefore, it’s the sole responsibility of various management departments in an organization to provide input for the process of planning for performance management.
Strategic Planning and Performance of Stakeholders References
Adler, R. W. (2011). Performance management and organizational strategy: How to design systems that meet the needs of confrontation strategy firms. The British Accounting Review, 43(4), 251-263.
Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
De Waal, A. (2013). Strategic Performance Management: A managerial and behavioral approach. Palgrave Macmillan.
Johnston, R. E., & Bate, J. D. (2013). The power of strategy innovation: a new way of linking creativity and strategic planning to discover great business opportunities. AMACOM Div American Mgmt Assn.
