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.
PM Vs PA
Contributions of PM
Managing performance effectively
Purposes of TM
Why TM is important
Relationship b/w talent and commitment
“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.
Developing the capacity to perform.
Rating performance in a summary fashion.
Rewarding good performance.
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,
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.
Increasing the capacity to perform through
training, giving assignments that introduce new
skills, improving work processes, or other
Carrying out the processes of performance
management provides an excellent opportunity to
identify developmental needs.
Evaluating employee or group performance
against the elements and standards in an
employee's performance plan and assigning a
summary rating of record.
Recognizing employees, individually and as
members of groups, for their performance and
acknowledging their contributions to the
Performance Management is
PM Vs PA
• Strategic business considerations
• Driven by line manager
• Ongoing feedback so employee can improve
While Performance Appraisal is
- Driven by HR
- Assesses employee (strengths &
- Once a year
- Lacks ongoing feedback.
Contributions of Performance
Clarify definitions of
Increase motivation to perform.
Enhance self-insight and development.
Communicate supervisors’ views of performance
Managers gain insight about subordinates.
Better and more timely differentiation between
good and poor performers.
Employees become more competent.
Clarify organizational goals.
Facilitate organizational change.
Fairer, more appropriate administrative actions.
Better protection from lawsuits.
Observation and Feedback (Coaching)
“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
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
maximizing employee potential, managing their strengths and developing
retaining people with desired skills and aptitude
Why Organizations Need Talent
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
To empower employees:
Cut down on high turnover rates
Reduce the cost of constantly hiring new people to train
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,
Talent Management System
Implementation program of the talent strategy which has a set
of processes and procedures
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
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
Boss’s peer group. Source of potential new assignments in
the same or other function
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.
Evaluate the results of talent management system on a regular
• timeliness and
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
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
(De Yi Kong, XiangQian Zhang)
Three types of commitment
Affective Commitment (AC)
Continuance Commitment (CC)
Normative Commitment (NC)
(Figure shows Knowledgeable talents performance model based on
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
- 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
Performance Management consist of the following :
- Review the performance appraisal like Behavior, Output
- Show the significant difference between a Star performer
- Do the potential appraisal as per the customized need of
- 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
Understanding Employees Better
Better professional development decisions
Disadvantages of TM
HR and Management Conflicts
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:
Cost should be kept in mind
Defining the desired outcome
Its is very important to know your top performing
employees as well as those who are not up to the
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.