Difference Between Performance &

Talent Management

Author & Presenter

Sheheryar Alvi
 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 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

 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 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
• 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
In-Role
Work
Factors
AC Performance
Ability

Organizatio
nal Support
CC NC Extra-Role
Performance
Organizatio
nal Factors
Organizatio
nal Climate

(Figure shows Knowledgeable talents performance model based on

organizational commitment)
Talent Management Model
Talent Management Cycle
 Talent Retention Strategy
Employee Relevant
Benefits package

Talent Leadership &Employee

Performance Management
Retentio Engagement
& Recognition
n

Competitive Compensation 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.
The End!