How Is Performance Management Linked to Organizational Strategy Execution and Performance? a Case Study of Two Organizations of Different Scale in Asia

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ABSTRACT

How is performance management linked to organizational strategy execution and performance? A case study of two organizations of different scale in Asia By Raveenderen Ramamoothie Strategy execution is a topic of practical importance and its success depends on how an organization integrates and aligns the business units and the employee performance to the strategic goals of the organization. However, many organizations find that their strategic goals realization is not optimized. One of the key issues is that the strategy and the performance goals of an organization are often disconnected with the performance management platform, a function of the strategic HR in managing employee performance. Essentially in this research, a performance management exercise that is aligned to organizational strategy and performance is viewed as a strategy execution and alignment exercise led by the HR team of an organization in the form of a performance management program. The purpose of this dissertation is to identify how a performance management program can be linked to organizational strategy and firm performance. Elements such as the enablers of alignment, if the model applied differs in companies of different scale, the application of goal setting and expectancy models and the reward systems are investigated to provide insights of the key success factors in implementing a performance management initiative. Case studies of two organizations of different scales in Asia were conducted. Based on these studies, the findings indicate that a few key enablers are critical for the successful implementation of a performance management initiative that aligns the organizational strategy and performance goals. These enablers are identified and validated against a contemporary management model presented by Kaplan and Norton (2006) on best practice principles of alignment and successful strategy execution.

Raveenderen Ramamoothie

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Table of Contents
HOW IS PERFORMANCE MANAGEMENT LINKED TO ORGANIZATIONAL STRATEGY EXECUTION AND PERFORMANCE? A CASE STUDY OF TWO ORGANIZATIONS OF DIFFERENT SCALE IN ASIA ................................................................................................................... 1 Table of Contents ................................................................................................................................................................ 2 Table of Figures ................................................................................................................................................................... 5

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CHAPTER 1: AIMS OF THE DISSERTATION ................................................................... 6 CHAPTER 2: REVIEW OF THE LITERATURE ................................................................. 10

2.1 Introduction................................................................................................................................................................ 10 2.2 Leadership as Key Enabler .................................................................................................................................... 11 2.3 The Role of Change Management in Performance Management Initiative ......................................... 12 2.4 Strategic Execution, Strategic HR Practices and Performance Management ..................................... 15 2.4.1 Performance Management ............................................................................................................................................... 15 2.4.2 Strategic HR ............................................................................................................................................................................. 16 2.4.3 Strategy Execution and Translation ............................................................................................................................. 17 2.5 Rewards as Key Employee Motivators...
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