Difference between performance mngt & talent mngt

Difference Between Performance & Talent Management

Sheheryar AlviFaizan KhanSyed Haseeb AhmedSarmad JanjuaHafiz Usman

Difference Between Performance & Talent Management

Contents

PerformancePM Vs PAContributions of PMPMPManaging performance effectivelyTalent ManagementPurposes of TMWhy TM is importantStrategiesTMSRelationship b/w talent and commitment

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

Performance Management includes

Planning work and setting expectations.Monitoring performance.Developing the capacity to perform.Rating performance in a summary fashion.Rewarding good performance.

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.

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.

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.

Rating

Evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record.

Rewarding

Recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the Organizations mission.

Performance Management is NOT Performance Appraisal

PM Vs PA

Strategic business considerationsDriven by line managerOngoing feedback so employee can improve performance. While Performance Appraisal is

- Driven by HRAssesses employee (strengths & weaknesses)Once a year- Lacks ongoing feedback.

Contributions of Performance Management

For Employees

For Managers

For Organization

For Employees

Clarify definitions of jobsuccess criteriaIncrease motivation to perform. Increase self-esteem.Enhance self-insight and development.

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.

For Organization

Clarify organizational goals.

Facilitate organizational change.

Fairer, more appropriate administrative actions.

Better protection from lawsuits.

Performance Management Process

Managing Performance Effectively

Observation and Feedback (Coaching) Other ResourcesPerformance Appraisal Performance Standards Training Resources

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

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

Organizations 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

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 organizationTo maximize employee performance as a unique source of competitive advantage To empower employees:Cut down on high turnover ratesReduce the cost of constantly hiring new people to train

TM Model

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 backupsMake appropriate investments (select, train, develop, reward)

Assessing the Employees

Superkeepers- greatly exceed expectations (3-5%)Keepers exceed expectations (20 %)Solid citizens- meet expectations (75 %)Misfits- below expectations (2-3 %)

Talent Management System

Implementation program of the talent strategy which has a set of processes and proceduresassessment tools multi-rater assessmentdiagnostic toolsmonitoring processes

If the management is not willing to use assessment in their organizations they cant do talent management

Assessment Tools for TM

The five assessment tools should be linked to ensure that each assessment is consistent with the four other evaluationsCompetency AssessmentPerformance AppraisalPotential ForecastSuccession PlanningCareer Planning

Multi-Rater Assessment

Employee. The owner of the career plan that is aligned with the succession planBoss. The primary assessor Bosss boss. The key link in the vertical succession and career planBosss peer group. Source of potential new assignments in the same or other function

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.

Monitoring Processes

Evaluate the results of talent management system on a regular basis for qualitytimeliness and credibility

Talent Management

TALENT=COMPETENCE+COMMITMENT+CONTRIBUTIONBeing competent is not only enough to be a talentThe competent person should be committed to the causes and goals of the organizationAnd should be able and willing to contribute to the success of the organizationNote: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

Research on Knowledgeable Talents PM based on OC(De Yi Kong, XiangQian Zhang)

Three types of commitmentAffective Commitment (AC)Continuance Commitment (CC)Normative Commitment (NC)

(Figure shows Knowledgeable talents performance model based on organizational commitment)

Work Motivation

Work Ability

Organizational Support

Personal Factors

In-Role Performance

Extra-Role Performance

Organizational Climate

Organizational Factors

30

Talent Management Model

Talent Management Cycle

Talent Retention Strategy

Employee Relevant Benefits package

Talent Retention

Leadership &Employee Engagement

Learning & Development

Competitive Compensation

Performance Management & Recognition

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

Contd

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.

Advantages of TM

Right Person in the right JobRetaining the top talentBetter HiringUnderstanding Employees BetterBetter professional development decisions

Disadvantages of TM

CostsWorker ConflictsLeadership LimitationsHR and Management Conflicts

Recommendations

It is very important for organizations to get it rightManaging talent should be treated in a way, you treat your any other critical business assetsResearch shows that companies with stronger Human Capital Management outperform in both Total Return to shareholders and annualized return to shareholdersTo implement TMS following things should keep in mind:educate yourselfCost should be kept in mind Gap analysis Defining the desired outcome

Conclusion

Its is very important to know your top performing employees as well as those who are not up to the mark.In todays corporate world cost is a serious issue by doing the right i.e. TMS, PMS we can reduce cost to a significant level.

Questions Please!