Conducting an internal analysis to gauge the firm's strengths and weaknesses involves looking at a firm's core capabilities, its talent and composition in the firm, and the firm's corporate culture. An internal analysis enables strategic decision makers to assess the organization's workforce—its skills, cultural beliefs, and values.
An organization's success increasingly depends on the knowledge, skills, and abilities of employees, particularly as they help establish a set of core capabilities that distinguish an organization from its competitors. When employees' talents are valuable, rare, difficult to imitate, and organized, a firm can achieve a sustained competitive advantage through its people. HRP is a systematic process that involves forecasting the demand for labor, performing supply analysis, and balancing supply and demand considerations. Quantitative and qualitative methods help a firm identify the number and type of people needed to meet the organization's goals.
Formulating an HR strategy is only half of the HR battle. The strategy must also be executed. Human resources management is instrumental to almost every aspect of strategy execution, whether it pertains to the organization's structure, systems, style, skills, staff, or shared values. Like the firm as a whole, HR has to focus on ensuring agility when the environment changes. Employment forecasts must also be reconciled against the internal and the external supplies of labor the firm faces. This can include having current employees work overtime; hiring full-time, part-time, or contract employees; downsizing employees; furloughing them; and outsourcing or offshoring. If there is a labor shortage, the firm might have to reformulate its long-term and short-term strategic plans or find ways to develop employees "from the ground up."
To evaluate their performance, firms need to establish a set of "desired" objectives as well as the metrics they will use to monitor how well their organizations delivered against those objectives. The objectives can include achieving certain levels of productivity, revenue, profit, market share, market penetration, customer satisfaction, and so forth. Issues of measurement, alignment, fit, and agility are central to the evaluation process. Firms use strategy mapping, the balanced scorecard (BSC) tool, and various HR-related metrics for these purposes.
Sets with similar terms1. What factors to include as performance measures?
Five generic performance objectives: quality, speed, dependability, flexibility and cost. These can be broken down into more detailed measures or aggregated into composite measure (e.g. customer satisfaction).
2. Choosing important performance measures:
Important to have a clear link between an operation's overall strategy, the most key performance indicators that reflect strategic objectives and the bundle of detailed
measures used to epxpand each key indicator. Without strategic clarity, key performance indicators cannot be appropriate targeted.
3. What detailed measures to use:
The five performance objectives are really composites of many smaller measures. E.g. if an organization regards its cost performance as unsatisfactory, disaggregating it into purchasing efficiency, operations efficiency, staff productivity etc might explain the root causes.
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1.BELIEF in measurement there must be REAL COMMITMENT to using measurement as a TOOL for IMPROVEMENT.
2.START A SIMPLE START with a few KPIs and add more later.
3.Measure what's important STAY FOCUSSED on critical issues.
4.Communicate effectively LET THE DATA SPEAK display results so they show performance and trends easily.
5.CLEAR RESPONSIBILITY, NO bureaucracy use a well designed, STRAIGHTFORWARD data collection system.
6.Use appropriate technology (IT) IS EXCELENT WHEN you know what KPIs you want.
7.Become a DATA BASED DECISION MAKER use the data to guide improvement.
8.ACTION, NOT data, drives performance improvement it's only when action is taken that KPIs add value.
9.KPIs and PARTNERING go together partnering provides the right environment for KPIs to work.