Performance Managment

CHAPTER 18
Managing Individual Performance :
A Strategic Perspective
Susan E. Jackson and RandaLL S . Schuler
Rutgers University, New Brunswick, NJ, USA
GSBA-Zurich, Switzerland
INTRODUCTION 372
DESIGNING AN INTEGRATED AND COHERENT
ADDRESSING THE CONCERNS OF MULTIPLE
HUMAN RESOURCE MANAGEMENT SYSTEM 377
STAKEHOLDERS 373
THE MAJOR TASKS OF HUMAN RESOURCE
CUSTOMERS 373
MANAGEMENT 379
EMPLOYEES 373
USING HR PRACTICES TO ACCOMPLISH THE MAJOR
OWNERS AND SHAREHOLDERS 373
HR TASKS : KEY CHALLENGES 381
COMMUNITIES AND SOCIETY 374
CONTINUOUS MONITORING, EVALUATION,
LINKING PERFORMANCE MANAGEMENT PRACTICES AND REVISION 386
TO BUSINESS STRATEGY 374
CONTINUOUS MONITORING AND EVALUATION 386
BASIC TYPES OF STRATEGIES 375
TAKING CORRECTIVE ACTION 387
STRATEGY IMPLEMENTATION 375
REFERENCES 388
SUMMARY
Designing and implementing an approach to managing employees that ensures they
are a source of sustainable competitive advantage is the objective of "strategic human
resource management". A strategic human resource management system reflects
the concerns of multiple stakeholders, is linked to the organization's specific business
strategy, represents an integrated and coherent set of HR practices, and it is continuously
monitored, evaluated and revised . This chapter describes the implications
of these four features of strategic human resource management (HRM) systems, focusing
on organizations pursuing strategies that require innovation . We show how an
integrated HRM system addresses four major tasks : managing behaviors, managing motivation,
managing competencies, and managing opportunities . After illustrating how
these tasks are shaped by a strategy of innovation, we consider some of the key challenges
that arise when applying this framework . Finally, we note that the performance
management system should be monitored and evaluated to assess how effectively it
(a) sends a clear, consistent message to employees and (b) represents the...