Managing Individual Performance : A Strategic Perspective

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 concerns of multiple stakeholders. Taking corrective action based on performance against these goals is essential for the organization's continuous learning and improvement .