CHAPTER 3 EXERCISE

1. Define strategic planning and its overall goal. (6 marks)

Strategic planning in performance management refers to the process of aligning an
organization's performance management practices with its overall strategic goals and
objectives. This involves creating a performance management framework that
supports the organization's strategy and enables it to measure progress towards its
goals. One of the main goals of strategic planning is to allocate resources in a way
that provides organizations with a competitive advantage. A strategic plan serves as a
blueprint that defines how the organization will allocate its resources in pursuit of its
goals. It outlines the organization's mission, vision, and values, and identifies the key
strategies and initiatives that will be pursued to achieve its objectives. For example,
set clear performance expectations. Sales associates might be expected to achieve a
certain level of sales revenue or to recommend additional products to customers.

2. Draw the process of linking performance management to the strategic plan. (8 marks)

3. List of seven (7) external factors that should be considered in any environmental
analysis. (7 marks)

 Economic.
 Political/legal.
 Social.
 Technological.
 Competitors.
 Customers.
 Suppliers.
4. List of five (5) internal issues that should be considered in any environmental
analysis. (5 marks).

 Organizational structure
 Organizational culture
 Politics
 Processes
 Size

5. The human resources (HR) function plays a critical role in creating and implementing
the strategies that will allow the organization to realize its mission and vision. Justify
three (3) contributions the HR function can make. (9 marks)

Communicate knowledge of strategic plan

The HR function can play a crucial role in communicating the various components of
the strategic plan to all employees. HR professionals can act as a conduit between
upper management and the rest of the organization, ensuring that the strategic plan is
effectively communicated to all employees in a clear and concise manner. For
example, the HR department might send an email to all employees that includes the
mission statement and explains how it guides the company's decisions and actions.
They might also create posters or other visual aids that display the mission statement
in common areas of the workplace.

Outline knowledge, skills, and abilities (KSAs) needed for strategy

implementation.
The HR function can play a critical role in identifying and assessing the KSAs needed
for successful implementation of a strategic plan. Through job analyses and job
descriptions, HR can identify the specific KSAs required for each position and assess
whether the current workforce possesses these skills. If there are gaps in the
workforce's KSAs, HR can provide recommendations for hiring new employees or
developing the necessary skills internally through training and development programs.
For example, an organization in the healthcare industry may need employees who are
skilled in healthcare billing and coding, as well as financial analysis of insurance
claims.
Propose reward systems.
The HR function might recommend offering monetary incentives, such as bonuses or
profit-sharing, to employees who achieve specific performance metrics that align with
the organization's strategic plan. By proposing reward systems that align with the
organization's strategic plan, the HR function can help to motivate and engage
employees and ensure that everyone is working towards the same goals. For example,
a sales organization might offer bonuses to employees who achieve certain sales
targets or a manufacturing company might offer bonuses to employees who meet
production quotas.