113). Figure 2 shows how an integrated PM system should look like (Barrett, 2004).
The critical point with PM is to view it closely tied to the HRM strategy and not in isolation (Nankervis, Compton, & Baird, 2008). Indeed, PM has a strategic perspective and it is only with it that PM will be able to measure the effectiveness of HRM strategy. Besides, all employees should contribute to the strategic perspective of the organization and as a result to its PM function.
The two primary tasks of PM are: first, to create strategic goals in an easiest way and second, to support the attainment of these goals. Strategic goals need to be expressed in precise objectives and key indicators of performance. In fact, performance incentives are then linked to these goals and performance indicators.
The framework of PM is constituted of four distinct steps. (1) strategize, (2) plan, (3) monitor and analyze, and (4) take corrective action (Ariyachandra & Frolick, 2008). The first two steps define the organizations strategy and the last two steps represent the means to monitor and apply the strategy.
Specifically, (1) strategize allows to identify the strategy, to find specific ways to attain the strategy and the metrics used to evaluate the performance over time. This last step is challenging for organizations because they need to find specific measures that accurately assess the performance of the organization. And this depends on the complexity of the organizational activities. For instance, if the major activity is to sell items, a measure of performance would be the number of items sold in a specific period.
This first step is the most important because it shapes the following activities in the PM framework.
(2) To plan allows developing a plan of action to achieve the desired strategy. Plans that target the attainment of the metrics expressed in step 1 are developed. Each business unit needs to contribute to the establishmen View More »