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STRATEGIC HRM PERFORMANCE MANAGEMENT Presentation by Prof.M.S.S.Varadan Chairman Om Consultants (India) Pvt. Ltd. UNLOCKING PEO PL E POTENTIAL C O N S U L T A N T S

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Page 1: 7   strategic hrm performance management

STRATEGIC HRMPERFORMANCE MANAGEMENT

Presentation

by

Prof.M.S.S.Varadan

Chairman

Om Consultants (India) Pvt. Ltd.

U N L O C K IN G P EO PL E P O T E N T I A L

C O N S U L T A N T S

Page 2: 7   strategic hrm performance management

U N L O C K IN G P EO PL E P O T E N T I A L

C O N S U L T A N T S

BUSINESS BENEFITS AT THE THREE LEVELS OF PERFORMANCE

Level of Need - Performance

Business areas and possible benefits

Level 1 Level 2 Level 3

Implementing

Doing things well

Improving

Doing things better

Innovating

Doing new and better things

Organizational processes

Successful implementation of systems

Improvement of and efficiency of systems

Better strategy for choosing which systems to use

Marketing Matching the competition

Satisfying customers

Beating the competition

Delighting customers

Growing the market

Engaging customers

Legislation Meeting the requirements

Improving on the requirements

Creating the requirements

Page 3: 7   strategic hrm performance management

U N L O C K IN G P EO PL E P O T E N T I A L

C O N S U L T A N T S

BUSINESS BENEFITS AT THE THREE LEVELS OF PERFORMANCE

Level of Need - Performance

Technology

Level 1 Level 2 Level 3

Introducing technology effectively

Using technology more efficiently

Developing your own new technology

Government initiatives (eg. Investors in People)

Meeting the standards

(Getting the award)

Exceeding the standards

Setting new standards

Relationships Businesslike relationships and behaviour

Collaborative relationships and behaviour

Creative new relationships and behaviour

Individual aspirations

Meeting minimum career qualifications and requirements

Moving along a career path

Carrying your own career forward

Page 4: 7   strategic hrm performance management

U N L O C K IN G P EO PL E P O T E N T I A L

C O N S U L T A N T S

ORGANIZATIONAL GROUP AND INDIVIDUAL NEEDS AT THE THREE LEVELS OF PERFORMANCE

Area of need

Level of

business

benefit

Organizational Group Individual

I1 : Implementing doing things well

Meeting current organizational objectives

Working together to meet existing targets and standards

Being competent at the level of existing requirements

I2 : Improving doing things better

Setting higher objectives and reaching them

Continuous improvement teams

Having and using systematic, continuous improvement skills and processes

I3 : Innovating doing new and better things

Changing objectives and strategies

Working across boundaries to create new relationships and new products and services

Being able to work differently and more creatively with a shared sense of purpose

Page 5: 7   strategic hrm performance management

HR SCORECARD

5. Strategic Performance Metrics(Are we achieving our strategicgoals?)

1. Hotel Paris Basic StrategicThemes(What basic themes must we in HRpursue to help Hotel Paris achieve itsstrategic goals?)

Create Service-Oriented Workforce Embed Core ValuesEncourage Personal Employee

Growth and LearningEphasize Partnership and Sense of

Ownership

2. Strategic HR Activities Metrics(What HR function should we focuson, and how should we measure itsefficiency and effectiveness?)

Chapter 9, Appraising Number ofemployees getting feedback;percentage of appraisals completedon time

Chapter 8, Training Number of hourstraining for employee for employeeper year; number of hours training fornew employee

Chapter 10, Careers Percentage ofemployees with formal careerdevelopment plan

3. Strategically Relevant EmergentEmployee Capabilities andBehaviors Metrics (What skills andactions must our employeesdemonstrate if our company is toachieve its strategic goals?)

Employee moraleEmployee servicecommitment andengagement index

Various employee service-orientedbehavior metrics, including percentcalls answered with required greeting;speed of check in/out; percent roomcleaning infractions; and, percentguests receiving Hotel Paris requiredgreeting on arrival

Percentage ofemployees scoringat least 90% onHotel Paris corevalues quiz

Employee turnover

4. Strategically Relevant Customerand Organiational OutcomesMetrics (How can we measurewhether our customer service isactually improving and having thedesired effects?)

Guest servicesatisfaction index

Number of writtenguest complimentsand / or complaintsper year

Various customer and HotelParis outcome metrics,including; frequency ofguests' returns; averagelength of stay; and guestexpenditure per guest perstay

Rankings inindustry servicesatisfactionsurveys

Profit margins, andtotal annual profits

Percent shares ofmarket

Anual revenues

Page 6: 7   strategic hrm performance management

U N L O C K IN G P EO PL E P O T E N T I A L

C O N S U L T A N T S

EVALUATING THE TRAINING EFFORT

Four basic categories of training outcomes:

1. Reaction2. Learning3. Behavior4. Results