Gaining altitude on gpm a multilevel approach office 2010 version
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24-27th June, 2014
Uncertainty in a Flattening World: CHALLENGES FOR IHRM
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24-27th June, 2014
Uncertainty in a Flattening World: CHALLENGES FOR IHRM
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Allen D. Engle, Sr.
Marion Festing
Peter J. Dowling
Gaining Altitude on Global Performance Management:
A Multilevel Analysis
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■ 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
Overview
FUNNELING SUMMATION CONVERSION SHARPENING, HONING
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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
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Engle, Festing and Dowling, 2014
Four-Stage Model of GPM Systems Context
Systems Design
Systems Operations
Systems Evaluation
Macro strategy• Strategic interest:
- multidomestic - global - transnational
• Heritage – OriginScope of the system• Actors• Roles• Information sourcesPurpose of the systemDevelopment, rewards
• Clarify major responsibilities
• Develop performance standards
• Select performance constructs
• Createconceptual equivalence
• Determine method of measurement
• Decide how to assess• Define measures• Define performance
• Giveperiodic feedback
• Dialogue & coach
• Facilitate performance:−Eliminate roadblocks−Provide resources,
ongoing basis
• Evaluate individual formal performance:- Review overall
performance- Encourage
performance
• Aggregate unit performance profiles
• Evaluate- Validity- Acceptanceof the GPM system in process (Reaction)
LACK OF EMPIRICAL EVIDENCE
Design parameters >>• Frequency• Formalization• Feedback capability• Explicit Implicit• Focus:
- traits- behaviors- outcomes
Trainsystems users >>
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A Paucity of ResearchOn how MNEs
■ Aggregate individual GPM results
■ Use these results for strategic purposes
We want✓ To gain altitude
✓ A higher perspective
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GPM as individual level feedback and employee consequences, the micro cycle ...
But how do MNEs use GPM to assess macro strategy activities?
We have studied:
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Gaining Altitude on GPM
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4 Transformation Alternatives
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1st Transformation Alternative
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1st Transformation Alternative
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■ 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
1st Transformation Alternative
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2nd Transformation Alternative
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2nd Transformation Alternative
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Transformation via SummationApplying a set of uniformed, common performance metricsat all levels
■ Balanced Scorecard
■ MNE Performance Dashboard
2nd Transformation Alternative
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Summation of:
■ Past Performance–Financial Targets
■ Present Performance–Work Flow Processes and Performance Cycles
■ Future Performance–Human Capital Investments
2nd Transformation Alternative
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3rd Transformation Alternative
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3rd Transformation Alternative
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3rd Transformation Alternative
Conversion – The form of performance information .Is altered with the level in the MNE.
Dimensions, Scales, Levels, Vocabulary
performance information
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An Example of Conversion:
Distinction BetweenStrategic Performance Measurement Systems (SPMS)
and
Performance Measurement Systems(PMS)
in a sample of Spanish firmsby Gimbert, Bisbe and Mendoza (2010)
3rd Transformation Alternative
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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
3rd Transformation Alternative
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4th Transformation Alternative
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4th Transformation Alternative
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■ Sharpening –Strategy whets and sharpens (modifies) GPM
■ GPM systems● Act as feedback
● Sharpen (modify) strategic configuration
4th Transformation Alternative
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Macro to Micro
1. Corporate level strategic indicators“down to” operational level units
2. Operational units modify to capturelocal conditions and priorities –approved by corporate officers
3. GPM system activated and captures performance dimension information, “sent up”
4. Results are used to modify both:
● Strategic directions, pace, and goals; and
● Local performance metrics, weights, etc.,in the light of systems results evaluation
4th Transformation Alternative
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■ 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
4th Transformation Alternative
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How many vertical levels?
Corporate
Strategic Business Unit
Regional, Divisional
Local
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Multiple Intersections to Gain Altitude
Corporate
Strategic Business Unit
Regional, Divisional
Local
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As if this wasn’t enough ...
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A Combination of Approaches
Using transformation activities
at MNE levelsdiffe
ring
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A Combination Approach Example6-Step Ladder of Analytical HR Applications
Conversion or Sharpening
Conversion or Sharpening
Funneling
Funneling
Funneling
Summation
Talent Supply Chain
Workforce Planning
Customize EVP
Focus HR Investments
Critical Talent Management
Employee Database
Harris, Craig, and Light (2011)
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Conclusions
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■ Build Multilevel Vocabularies –Bridge the divide
■ Macro –International strategy literature, models, vocabularies
■ Micro –IHRM Literature, models, vocabularies
■ More …Multilevel reading, research designs, theorizing
Conclusions: A Proposed Agenda
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■ Repeat Lawler’s call for a balanced, but
● essentially centralized,
● strategically customized bundled systemof IHRM culture and technology
■ A GPM With four qualities:
1. Parsimonious use ofperformance dimensions, weights, and levels
2. Thoroughly understood by participants
3. Widely shared
4. Locally interpreted
Lawler, Benson and McDermott, 2012 .
Conclusion
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Thank you.for your kind attention.
Any questions?