Performance management is the systematic process of planning, monitoring, and developing employee work to achieve organizational goals. Talent management is a set of integrated HR processes to attract, develop, motivate, and retain productive employees to create a high-performance organization. Key differences include performance management focuses on ongoing feedback while performance appraisal assesses employees annually, and talent management ensures the right employees are ready to achieve strategic goals both currently and in the future. Effective talent management requires assessing employees, developing a talent strategy and system, and monitoring processes to retain key talent.
2. Contents
Performance
PM Vs PA
Contributions of PM
PMP
Managing performance effectively
Talent Management
Purposes of TM
Why TM is important
Strategies
TMS
Relationship b/w talent and commitment
3. Performance Management
“It is the systematic process by which an Organization
involves its employees, as individuals and members
of a group, in improving organizational effectiveness
in the accomplishment of its mission and goals”
4. Performance Management includes
Planning work and setting expectations.
Monitoring performance.
Developing the capacity to perform.
Rating performance in a summary fashion.
Rewarding good performance.
5. Planning
Setting performance expectations and goals for
groups and individuals to channel their efforts toward
achieving organizational goals.
Performance elements and standards should be
measurable, understandable, verifiable, equitable,
and achievable.
6. Monitoring
Measuring performance and providing ongoing
feedback to employees and work groups on their
progress toward reaching their goals.
Monitoring can be ongoing and continuous so
that unacceptable performance can be identified
at any time during the period.
7. Developing
Increasing the capacity to perform through
training, giving assignments that introduce new
skills, improving work processes, or other
methods.
Carrying out the processes of performance
management provides an excellent opportunity to
identify developmental needs.
8. Rating
Evaluating employee or group performance
against the elements and standards in an
employee's performance plan and assigning a
summary rating of record.
9. Rewarding
Recognizing employees, individually and as
members of groups, for their performance and
acknowledging their contributions to the
Organization’s mission.
11. PM Vs PA
• Strategic business considerations
• Driven by line manager
• Ongoing feedback so employee can improve
performance.
While Performance Appraisal is
- Driven by HR
- Assesses employee (strengths &
weaknesses)
- Once a year
- Lacks ongoing feedback.
13. For Employees
Clarify definitions of
job
success criteria
Increase motivation to perform.
Increase self-esteem.
Enhance self-insight and development.
14. For Managers
Communicate supervisors’ views of performance
more clearly.
Managers gain insight about subordinates.
Better and more timely differentiation between
good and poor performers.
Employees become more competent.
15. For Organization
Clarify organizational goals.
Facilitate organizational change.
Fairer, more appropriate administrative actions.
Better protection from lawsuits.
17. Managing Performance
Effectively
Observation and Feedback (Coaching)
Other Resources
Performance Appraisal
Performance Standards
Training Resources
18. Talent Management
“Talent Management is a set of integrated
organizational HR processes designed to attract,
develop, motivate, and retain productive,
engaged employees to create a high-performance,
sustainable organization that meets
its strategic and operational goals and objectives”
19. Purpose of TM
The purpose of TM is to ensure that the right supply of talented
workforce is ready to realize the strategic goals of the organization both
today and in the future
Organization’s efforts to attract, select, develop, and retain key talented
employees in key strategic positions.
Talent management includes a series of integrated systems of
recruiting
performance management,
maximizing employee potential, managing their strengths and developing
retaining people with desired skills and aptitude
20. Why Organizations Need Talent
Development?
To compete effectively in a complex and dynamic environment to
achieve sustainable growth
To develop leaders for tomorrow from within an organization
To maximize employee performance as a unique source of competitive
advantage
To empower employees:
Cut down on high turnover rates
Reduce the cost of constantly hiring new people to train
22. Strategic Aspect of TM
Describes what type of people the organization will invest in
and how it will be done
the talent strategy of all high performing organizations should
have these directives:
Identify key positions in the organization (not more than
20, 30 %)
Assess your employees and identify the high performers
(classify according to their current and future potential)
Retain key position backups
Make appropriate investments (select, train, develop,
reward)
24. Talent Management System
Implementation program of the talent strategy which has a set
of processes and procedures
assessment tools
multi-rater assessment
diagnostic tools
monitoring processes
If the management is not willing to use assessment in their
organizations they can’t do talent management
25. Assessment Tools for TM
The five assessment tools should be linked to ensure that each
assessment is consistent with the four other evaluations
Competency Assessment
Performance Appraisal
Potential Forecast
Succession Planning
Career Planning
26. Multi-Rater Assessment
Employee. The owner of the career plan that is aligned with
the succession plan
Boss. The primary assessor
Boss’s boss. The key link in the vertical succession and
career plan
Boss’s peer group. Source of potential new assignments in
the same or other function
27. Diagnostic Tools
SuperkeeperTM reservoir. SuperkeepersTM are employees whose performance
greatly exceeds expectations, who inspire others to greatly exceed expectations, and
who embody institutional competencies.
Keeper Key position backups. The “insurance policies” that ensure organization
continuity. Every key position should have at least one backup at the “Keeper”
(exceed job expectations) level.
Surpluses. Positions with more than one replacement for an incumbent. While
ostensibly a positive result of the talent management process, it can be a potential
source of turnover and morale problems if the replacements are blocked by a non-promotable
incumbent and/or there is no realistic way most of the promotable
replacements can advance.
Voids. Positions without a qualified backup. Determine whether it will transfer
someone from the surplus pool, develop alternative candidates, or recruit externally.
Blockages. Non-promotable incumbents standing in the path of one or more high-potential
or promotable employees.
Problem employees. Those not meeting job expectations (measured achievement or
competency proficiency). Give opportunity to improve, receive remedial action, or
be terminated. The time frame should be no longer than six months.
28. Monitoring Processes
Evaluate the results of talent management system on a regular
basis for
• quality
• timeliness and
• credibility
29. Talent Management
TALENT=COMPETENCE+COMMITMENT+CONTRIBUTION
Being competent is not only enough to be a talent
The competent person should be committed to the causes
and goals of the organization
And should be able and willing to contribute to the success
of the organization
Note:
So, developing your talent is not enough, the organizations
need to take all the measures to motivate, reward their
talent pool to gain their commitment and contribution.
Retention is also essential to gaurantee future alignment of
the talent with the right key positions
30. Research on Knowledgeable Talents PM based on
OC
(De Yi Kong, XiangQian Zhang)
Three types of commitment
Affective Commitment (AC)
Continuance Commitment (CC)
Normative Commitment (NC)
Personal
Factors AC
(Figure shows Knowledgeable talents performance model based on
Work
Motivation
Work
Ability
Organizatio
nal Support
organizational commitment)
CC NC
In-Role
Performance
Extra-Role
Performance
Organizatio
nal Climate
Organizatio
nal Factors
34. Difference b/w TM & PM
When we talk about Management of Talent, we need to
take care of the following :
- Their Compensation and benefits
- Rewards Administration
- Leadership
- Systems and process
- Involving the Talented people in decision making process
- Make them more responsible
- Respecting their ideas etc
- Directing and controlling the strategies
- Not only inviting them in Strategic planning but to
execute them
35. Cont’d…
Performance Management consist of the following :
- Review the performance appraisal like Behavior, Output
etc
- Show the significant difference between a Star performer
and poor
- Do the potential appraisal as per the customized need of
the organization
- Identification of Training needs and fulfilling the gaps
- Competency development and mapping
- Identifying Personal Development Plan
- Initiating Performance Improvement Plan
- Developing Leadership skills etc.
36. Advantages of TM
Right Person in the right Job
Retaining the top talent
Better Hiring
Understanding Employees Better
Better professional development decisions
37. Disadvantages of TM
Costs
Worker Conflicts
Leadership Limitations
HR and Management Conflicts
38. Recommendations
It is very important for organizations to get it right
Managing talent should be treated in a way, you treat your
any other critical business assets
Research shows that companies with stronger Human
Capital Management outperform in both Total Return to
shareholders and annualized return to shareholders
To implement TMS following things should keep in mind:
educate yourself
Cost should be kept in mind
Gap analysis
Defining the desired outcome
39. Conclusion
Its is very important to know your top performing
employees as well as those who are not up to the
mark.
In today’s corporate world cost is a serious issue
by doing the right i.e. TMS, PMS we can reduce
cost to a significant level.