Question

What is meant by the term “strategic performance driver?” What is the relationship of HR activities to strategic performance drivers?

Answer 1

Strategic performance drivers are defined as the forces that drive the strategy of an organization and result in a better performance. Those organizations that fail to adapt to these performance drivers in their strategies invite the disaster. These drivers usually arise because of technological change, competition, and regulations.

Strategic performance drivers and human resources activities are interrelated with each other. The performance of any organization is dependent on its human resource department. How the human resources department conducts its activities of hiring, recruiting, training, appraising, complying with the laws, and retaining the employees for a longer period of time decides the performance of an organization. When technological change and competition arise in the market, human resources activities should adapt to them to drive the performance through its improved strategies. Without complaining with strategic performance drivers the same cannot be achieved.