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24-27 th June, 2014

Uncertainty in a Flattening World :. CHALLENGES FOR IHRM. 24-27 th June, 2014. Uncertainty in a Flattening World :. CHALLENGES FOR IHRM. 24-27 th June, 2014. Gaining Altitude on. Global Performance Management :. A Multilevel Analysis. Allen D. Engle, Sr. Marion Festing.

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24-27 th June, 2014

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  1. Uncertainty in a Flattening World: CHALLENGES FOR IHRM 24-27th June, 2014

  2. Uncertainty in a Flattening World: CHALLENGES FOR IHRM 24-27th June, 2014

  3. Gaining Altitude on Global Performance Management: A Multilevel Analysis Allen D. Engle, Sr. Marion Festing Peter J. Dowling

  4. Overview • Context– a 4 stage process model • Little research on stage four: Systems Evaluation • Going from Micro to Macro –Individual appraisal to MNE evaluation and use • Aggregation via 4 processes: • Implications, Conclusions

  5. GPM: Demand Meets Supply Demand due to: • Advanced Competitive Markets – Drive for Performance • Global Human Capital Mobility & Accountability Supply due to: • Oracle Based HR Decision Support System Platforms • Advanced HR Metrics

  6. Engle, Festing and Dowling, 2014 Four-Stage Model of GPM

  7. A Paucity of Research On how MNEs • Aggregate individual GPM results • Use these results for strategic purposes We want • To gain altitude • Ahigher perspective

  8. We have studied: GPM as individual level feedback and employee consequences, the micro cycle ... But how do MNEs use GPM to assess macro strategy activities?

  9. Gaining Altitude on GPM

  10. 4 Transformation Alternatives

  11. 1st Transformation Alternative

  12. 1st Transformation Alternative

  13. 1st Transformation Alternative • Transformation via Funneling–Identifying high performers to higher levels of the MNE • Elitist vs. Inclusive Funnels–see Festing, Schaefer and Scullion, 2013 • Talent Management Applications

  14. 2nd Transformation Alternative

  15. 2nd Transformation Alternative

  16. 2nd Transformation Alternative • Transformation via SummationApplying a set of uniformed, common performance metricsat all levels • Balanced Scorecard • MNE Performance Dashboard

  17. 2nd Transformation Alternative Summation of: • Past Performance–Financial Targets • Present Performance–Work Flow Processes and Performance Cycles • Future Performance–Human Capital Investments

  18. 3rd Transformation Alternative

  19. 3rd Transformation Alternative

  20. 3rd Transformation Alternative Dimensions, Scales, Levels, Vocabulary performance information Conversion – The form of performance information .Is alteredwith the level in the MNE.

  21. 3rd Transformation Alternative An Example of Conversion: Distinction Between Strategic Performance Measurement Systems (SPMS)and Performance Measurement Systems (PMS) in a sample of Spanish firmsby Gimbert, Bisbe and Mendoza (2010)

  22. 3rd Transformation Alternative A Second Example From SAP America: • Tier One –Business Results (4 indicators) • Tier Two –Key Performance Drivers (4 indicators) • Tier Three –Human Capital Capabilities (7 indicators) • Tier Four –Human Capital Processes (13 indicators) Cantrell, et al., 2006

  23. 4th Transformation Alternative

  24. 4th Transformation Alternative

  25. 4th Transformation Alternative • Sharpening –Strategy whets and sharpens (modifies) GPM • GPM systems • Act as feedback • Sharpen (modify) strategic configuration

  26. 4th Transformation Alternative Macro to Micro • Corporate level strategic indicators“down to”operational level units • Operational units modify to capturelocal conditions and priorities –approved by corporate officers • GPMsystem activated and captures performance dimension information, “sent up” • Results are used to modify both: • Strategic directions,pace,and goals;and • Local performance metrics,weights, etc.,in the light of systems results evaluation

  27. 4th Transformation Alternative • Sharpening as “organizational change capacity”–Shipton, Budhwar and Crawshaw, 2012 • Elements of sharpening as acomplex, spanning, flexible approach in DynCorp’s “strategic performance measurement system”–Kolehmainen, 2010

  28. How many vertical levels? Corporate Strategic Business Unit Regional, Divisional Local

  29. Multiple Intersections to Gain Altitude Corporate Strategic Business Unit Regional, Divisional Local

  30. As if this wasn’t enough ...

  31. A Combination of Approaches Usingtransformation activities at MNE levels • differing

  32. A Combination Approach Example6-Step Ladder of Analytical HR Applications Conversion or Sharpening Talent Supply Chain Conversion or Sharpening Workforce Planning Funneling Customize EVP Focus HR Investments Funneling Critical Talent Management Funneling Summation Employee Database Harris, Craig, and Light (2011)

  33. Conclusions

  34. Conclusions: A Proposed Agenda • Build Multilevel Vocabularies –Bridge the divide • Macro –International strategy literature, models, vocabularies • Micro –IHRM Literature, models, vocabularies • More …Multilevel reading, research designs, theorizing

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