This document discusses managing high-potential employees (HiPos) and provides strategies for their effective management. It outlines challenges in HiPo programs such as demoralizing regular employees and HiPos not meeting expectations. It then provides recommendations for selecting HiPos carefully based on criteria like skills and interests, communicating their status sensitively, grooming them through leadership training and coaching, developing them with stretch assignments and mentoring, and rewarding and retaining them by recognizing achievements while avoiding overpayment.

1. MANAGING HIPO’S
CHALLENGES
1. RISK OF DEMORALISING SOLID CONTRIBUTORS.
2. CHOSEN ONES DO NOT LIVE UPTO EXPECTATIONS
3. PROGRAM FAIL TO MAINTAIN MOMENTUM

2. EFFECTIVE MANAGEMENT 0F
NEXT GENERATION LEADERS
I. CAREFUL SELECTION OF HiPo’s
II. COMMUNICATING IT TO OTHERS IN THE ORGANISATION
III. STRATEGIES TO GROOM HiPo’s
IV. WAYS TO DEVELOP HiPo’s
V. REWARD AND RETAINING HiPo’s

3. I. CAREFUL SELECTION OF HiPo’s
CRITEREA
a) Person who can handle job enrichment & job
enlargement in multi-division areas -& learn it
at faster pace.
b) Not every high value contributing employee
is a HiPo. A person must have genuine
interest as well.
c) To look for three “Social Motives”-
Achievement, Affiliation & Socialized
influence.
SELECTION PROCESS
a) Managers can nominate from different
departments after annual appraisal.
b) Employees can self nominate themselves.
c) Cut off to be two years report on annual
appraisal along with subjective view of
candidate by its reporting head.
d) Customised psychometric test and
behavioural interview of selected candidates.
e) Complement internal assessment with
external assessment.

4. II. COMMUNICATING ABOUT SELECTED
HIPO’S
The company can follow one of the following strategies-
1. Being transparent with managers regarding the outcome of the selection
process.
2. Nominated managers can be informed in private meeting whether they are
designated HiPo’s or not.
3. The company can take subtle routes by engaging HiPo’s in special programs &
developing roles.

5. III. STRATEGIES TO GROOM HiPo’s
A. Potential development program should be aligned with company
strategy & periodically re-examined.
B. Involvement & insights of senior management along with HR to
develop such programs.
C. Leadership training programs
D. Coaching based on case study at business school or its faculty.
E. Potential assessment and appraisal.

6. IV. WAYS TO DEVELOP HiPo’s
a. On-the-job development and experiences.
b. Targeted mentoring by senior management-preferably by one to
one basis.
c. Training programs followed by stretch assignments.
d. Increase in job scale with periodic job rotation.
e. Careful evaluation of performance in developmental activities.

7. V. REWARD AND RETAINING
HiPo’s
a. Monetary reward with achievement and recognition.
b. Not overpay HiPo’s as it will cause demotivation in other
employees.
c. Communicating with HiPo’s on regular basis to discuss
about growth & take feedback.