Difference between performance mngt & talent mngt
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Difference between performance mngt & talent mngt

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The presentation is about how talent management is different from performance management, advantages and disadvantages of talent management, strategic point of view of TM and talent retention ...

The presentation is about how talent management is different from performance management, advantages and disadvantages of talent management, strategic point of view of TM and talent retention strategy.

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Difference between performance mngt & talent mngt Difference between performance mngt & talent mngt Presentation Transcript

  • Difference Between Performance & Talent Management Sheheryar Alvi Faizan Khan Syed Haseeb Ahmed Sarmad Janjua Hafiz Usman
  • 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
  • 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 Organization’s mission.
  • Performance Management is NOT Performance Appraisal
  • 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.
  • Contributions of Performance Management  For Employees  For Managers  For Organization
  • For Employees  Clarify definitions of  job  success criteria  Increase 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 Resources  Performance 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 highperformance, 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  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
  • 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
  • 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 backups  Make 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 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
  • 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
  • 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
  • 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 nonpromotable 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 • quality • timeliness and • credibility
  • 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
  • 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) Work Motivation Personal Factors Work Ability CC NC Organizatio nal Support Organizatio nal Climate AC In-Role Performance Extra-Role Performance Organizatio nal Factors (Figure shows Knowledgeable talents performance model based on organizational commitment)
  • Talent Management Model
  • Talent Management Cycle
  • Talent Retention Strategy Employee Relevant Benefits package Performance Management & Recognition Competitive Compensation Talent Retentio n Leadership &Employee Engagement Learning & Development
  • 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
  • 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.
  • Advantages of TM  Right Person in the right Job  Retaining the top talent  Better Hiring  Understanding Employees Better  Better professional development decisions
  • Disadvantages of TM  Costs  Worker Conflicts  Leadership Limitations  HR and Management Conflicts
  • 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
  • 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.
  • Questions Please!