`

Umesh K Patil

MHRDM- V

Title of the Project

Study on Performance Management Systems focused on Talent Managent.

Objective of Study
To retain existing talent and discovering hidden talent among employees, understanding
role of performance management techniques in talent management.

Research Methodology
Survey research through questionnaire.

Expected result of study

It will help to set organisation strategic plans, helps in developing talent management
techniques /processes, personal development, work life balance and culture building

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Certificate
This is to certify that the project entitled “Study on Performance Management
Systems- Sandoz & MTPF focused on Talent management, Work Life Balance” is
successfully done by Mr. Umesh Kashinath Patil during the Third year in his course is
partial fulfillment of the Master Degree in Human Resource Development Management
(MHRDM) under the University of Mumbai through the Welingkar Institute of
Management Development & Research, Matunga, Mumbai-19. This project is
represents the work done by Umesh Kashinath Patil.

He has done project work under my guidance

Date:-

Place:- Mumbai Name of Guide:- Prof. Savita Tilak

Welingkar Institute of Management

Development & Research,

N. Napoo Road, Matunga, Mumbai-19

Index
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1) Introduction

2) Purpose

3) Performance Management System

4) Elements of Performance Managent Systems

5) Overview on Talent Management, Work life balance

6) Brief introduction of Sandoz

7) Brief introduction of MTPF

8) Designing of Questionnaire

9) Analysis of responses

10) Conclusion

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11) Recommended

12) Bibliography

Introduction
Talent, like innovation and creativity, is highly desired yet rarely
understood or effectively nurtured within organisation. Many recruitment
advertisements ask for talented people, yet if organizations are lucky
enough to recruit a talented individual they often experience difficulty in
engaging or retaining them.

Faced with these challenges, what we have tried to do is to identify

some of the issues around talent and to identify organizations that have
acknowledged the challenges but that have sought to find positive ways of
overcoming them. In this project endeavored to find out the talent level,
work life balance of individual employees in the organisation. For this
purpose I have selected one multinational company doing business in
pharmaceutical ………….and other is Central Government Organisation,
both are manufacturing sectors. Survey has been conducted through
questionnaire, which enables to provide possible clues of the respective
dimension of individual employees and through analysis has been done at
the end and possible recommendation.

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Overview of Performance Management System

Performance management is a strategic and integrated approach of delivering
sustained success to organizations by improving the performance of the people who
work in team and by developing the capabilities of teams and individual contributors.

The evolution of the concept of performance Management as a new Human Resource

Management Model reflects a change of emphasis in organizations away from
command-and-control toward a facilitation model of leadership. This change has been
accompanied by recognition of the importance to the employee and the institution of
relating wok performance to the strategic or long-term and overarching mission of the
organization as a whole. Employee’s goals and objectives are derived from their
departments, which in turn support the mission and goals of the Organization.

Job Description & Essential Functions

Strategic Plan & Annual Goals

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Standards of Performance

Observation & Feedback

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Performance in Organizations

Performance management is a relatively new concept to the field of management.

Performance Performance Appraisal Management System
typically starts out with various
examinations of the term “performance”.

Supervisors/Appraisers have conducted performance appraisals for years. Employees

have attended Performance Development training sessions for
years. Organization members have
worked long, hard hours for centuries.
Processes, such as planning, budgeting, sales billings have been carried out for years
in organizations. But all too these activities are done mostly for the sake of doing them,
not for contributing directly to the preferred results of the organization.

Performance management reminds us that being busy is not the same as producing
results. It reminds us that training, strong commitment and lots of hard work alone is not
result. The major contribution of performance management is its focus on achieving
results—useful products and services for customers inside and outside the organization.
Performance management redirects our efforts away from busyness towards
effectiveness.

Recently, organizations have been faced with challenges like never before. Increasing
competition from business across the world has meant that all businesses must be
much more careful about the choice of strategies to remain competitive. Everyone (and
everything) in the organization must be doing what they’re supposed to be ensure
strategies are implemented effectively.

This situation has put more focus on effectiveness, that systems and processes in the
organization be applied in the right way to the right things to achieve results. All of the
results across the organization must continue to be aligned to achieve the overall
results desired by the organization for it to survive and thrive. Only then it will be said
that the organization and its various parts are really performing.

The performance management process provides an opportunity for the employee and
performance manager to discuss developments goals and jointly create a plan for
achieving those goals. Development plans should contribute to organizational
goals and the professional growth of the employee.

In an organization, continuous learning is a prerequisite to successful job performance

and organizational effectiveness. Employees must be able to learn work, developing

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effective technical and people skills in order to assume new responsibilities, and keep
pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees alike, responding to these changes requires
the ability to learn, adapt to change, solve problems creatively and communicate
effectively in diverse groups. In addition, employees must take personal and proactive
responsibility for their careers to ensure future employability and advancement.

The realities of the contemporary workplace will continue to challenge existing

paradigms and should be considered in managing the performance of employees in a
dynamic working environment.

The essence of performance management

Performance Management is based on the agreement of objectives, knowledge, skills

and capability (competence) requirements, performance improvement plans. It involves
the joint and continuing review of performance against these objectives requirements
and plans and the agreement and implementation of improvement and further
development plans.

Performance Management concerns everyone in the business –not just

managers .It rejects the cultural assumption that only managers are accountable for the
performance of their teams and replaces it with the belief that responsibility is shared
between managers and team members .In the sense, managers should regard the
people who report to them as customers for the managerial contribution and services
they can provide. Managers and their teams are jointly accountable for results and are
jointly involved in agreeing what they need to do and how they need to do it in
monitoring performance and in taking action.

Performance management process is part of a holistic approach to managing for

performance, which is the concern of everyone in the organisation.

It is an holistic approach means being all embracing every aspect of a subject .in
the case of performance management, this concerns the whole organisation. It takes a
comprehensive view of the constituents of the performance, how these contribute to
desired outcomes at the organizational, departments, team and individual level and
what needs to be done to improve these outcomes. It also believes that everything that
people do at work at any level contributes to achieving the overall purpose of the
organisation. It is therefore concerned with what people do their work, how they do it
and what they achieve i.e results. It embraces all formal and informal information
measures adopted by an organisation to increase corporate, team and individual

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effectiveness and continuously to develop knowledge, kills and competence. It is

certainly not an isolated system run by the HR department that functions once a year.

The purpose of Performance Management

Performance Management is a means of getting better results from the whole

organization or teams and individuals within it by understanding and managing
performance within an agreed framework of planned goals, standard and conformance
requirements. The fundamental goal of PM is to establish a centre in which individuals
and group take responsibility for the continuous improvement of business processes
and for their own skills and contributors.

Principles of Performance Management

 It translates corporate goals into individual, team, department and divisional

goals.

 It helps in clarifying corporate goals.

 It is a continuous and evolutionary process, in which performance improves over

time.

 It relies on consensus and co operation rather than control or coercion.

 It creates a shared understating of what is required to improve performance ans

how this will be achieved,

 It encourages self management of individual performance.

 It requires a management style that is open and honest encourages two way
communications between superiors and subordinates.

 It requires continuous feedback.

 Feedback loops enable the experiences and knowledge gained on the job by
individuals to modify corporate objectives.

 It measures and assesses al performance against jointly agrees goals.

 It should apply to all staff , and it is not primarily concerned with linking
performance to financial reward.

Ethical Consideration

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PM should operate in accordance with the following ethical principles defend

winstanleyand Stuart Smith.

Respect for the individual –people should be treated as ends in themselves and
not merely as means to other ends.

Mutual Respect- the parties involved in performance management processes

should respect each other’s needs and preoccupations.

Procedural fairness- the procedures incorporated in performance management

should be operated fairly so as to limit the adverse effect on individuals.

Transparency- people affected by the decisions emerging from the performance

management process should have the opportunity to scrutinize the basis upon
which decisions were made.

Performance Management as a focal point for integrated HR activities.

Valuing

People

Performance
Paying Developing
Management
People People

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Involving

People

Performance Management not Performance Appraisal

Performance Appraisals can be defined as the formal assessment an rating of

individuals by their managers at usually an annual review meeting .It should be
distinguished from performance management. PM is much wider and comprehensive
and more natural process of management that aims to clarify mutual expectations and
emphasizes the support role of managers .Who are expected to act as coaches rather
than judges and focuses on the future.

Performance appraisal has been discredited because too often it has been operated as
a top down and largely bureaucratic system owned by the personnel department rather
than by line managers. It was often backward looking, concentration on what had gone
wrong, rather than looking forward to future development needs. Performance
appraisals sometimes existed in isolation, there was little or no link between them and
the needs of the business line managers have frequently rejected performance
appraisals schemes as being time consuming and irrelevant. Employees have resented
the superficial nature with which appraisals have been conducted by managers who
lack the skills required or are simply going through the motions. As per the Armstrong
and Murlis assert, performance appraisal too often degenerates into “A dishonest
annual ritual”. Few are following views on PA & PM.

 Appraisals reinforce authority relations and defines dependency.

 Appraisal implies that rewards and progress are in the hands of a single super
ordinate.

 Appraisal aims at voluntary compliance.

 Appraisal is a form of compliance to “police ‘performance.

 The tendency of management is to adopt a unitary frame of reference when in

reality, organizations are more likely to be pluralistic in the sense that there are
divergent interest that should be acknowledged.

 Appraisal is an inconsistent and fundamentally subjective process.

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 Management indulges in rhetoric about development but often do sa much and

delivered so little.

The concept of Performance Management based on approaches that aim to overcome

these negatives by emphasizing that performance management is a continuous and
forward looking process. In which managers and individuals work together in
partnership. It is a joint process in which top down appraisals no longer have a part. In
many cases performance is not rated and the principle outcome of any opportunities for
learning and experience that will not only improve performance. But will also enhance
potential and employability.

Components of Performance Management Systems

A performance management system includes the following components.

 Develop clear job descriptions.

 Selection of appropriate people with an appropriate selection process.

 Negotiate recruitments and accomplishment-based performance standards,

outcomes and measures.

 Providing effective orientation, education and training.

 Providing on-going coaching and feedback.

 Conducting quarterly performance development discussions.

 Designating effective compensation and recognition systems that reward people

for their contributions.

 Providing promotional /career development opportunities for staff.

The Process

While performance management systems are often considered to be nothing more

than the performance review, this is only the final event in an entire year of activity
which would differ from organization to organization.

At the beginning of the year, the manager and employee discuss the employee’s
goals or objectives for the year. This will form the basis for ongoing discussion
recorded document called the performance plan.

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The manager assists the employees in developing his/her objectives by helping

individual to understand how his/her work relates to the department goals and the
overall goals of the organization .The employee and manager also should work
together to determine the measurements for evaluating each of the objectives. It is
important that a both the manager and employees agree what the objectives are and
how they are to be measured.

Employees should not be set up unrealistic expectations, which will only lead to
sense of failure. If additional support or education is required during the year to help
the employees meet his/her objectives, those can also be identified and planned.

The performance plan will contain the section on goals or objectives. It should also
include a selection that identifies the organization’s expectations of employee
competencies.

The set of expectations will involve a range of competencies applicable to

employees based on their level in the organization. These competencies include
expectations of how employees deal with problems, how proactive they are in
respect to changing work and how they interact with internal and external customers.
In addition to basic behavioral traits, supervisors and managers are expected to
exhibit leadership and more senior still provide vision and strategic direction. It is
important to ensure that employee’s understand these competencies in respect to
themselves.

Throughout the year the appraiser must participate actively in coaching and
assisting all their employees to meet their individual objectives. It can be identified
well in advance of any review and adjustments to the goals or support for the
employee can be provided. This is referred to as continual assessment. e.g suppose
an employee predicted that should complete a new manual for updating the library’s
web site by a particular date, yet he/she has encountered problems in receiving vital
information from another department. Through active involvement in his/her
employee’s activities the superiors is made aware of the situation and understands
that the employee is intimidated by the supervisor he must work within the other
department and receives the vital information he /she requires to meet his / her
objective.

Role Definition

Plan

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Performance Agreement

Performance Review Personal development

Review Act
Planning

Managing Performance

Monitor

The Performance Management Cycle

Role Definition

In which the key result areas and capability requirements are agreed.

The performance Agreement

Which defines expectations, what an individual has to achieve in the form of

objectives, how performance will be measured and the capabilities needed to deliver
the required results. This could be described as the performance planning stage.

The personal developmental plan

Which sets out the actions people intended to take to develop themselves in order to
extend their knowledge and skills, increase their levels of capability and improve
their performance in specified areas. This is the performance development stage.

Managing performance throughout year

Which is the stage which action is taken to implement the performance agreement
and personal development plans as individuals carry on with their day to day work
and their planned learning activities. It includes continuous process of providing
feedback on performance conducting informal progress reviews, updating objectives
and where necessary, dealing with performance problems.

Performance Review

Mid way through the year the appraiser should hold a formal discussion with
each employee to review individual activities to date and to modify the performance
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plan. There should be no surprise at this meeting. The supervisor should have been
actively in continual assessment of the employees through regular contact and
coaching.

If major concerns arise, the performance plan can be modified or the

employee can receive development in areas in which he/she may be weak. This also
is a time for the employee to provide formal feedback to the appraiser on the
coaching, the planning and how the process seems to be working for him/her.

At the end of the year a final review of the activities and plans for developing
the next year’s objectives begin. Again this is a chance to provide constructive and
positive feedback and to address any ongoing concerns about the employee’s
activities and competencies. Continuing education opportunities can be identified
and for those systems linked to compensation, salary raises will be linked to the
employee’s performance during the year. Again there should be no surprises to
either employee or appraiser a continual assessment and coaching should take
place throughout the year. There are many varieties of performance management
systems available, but you must be aware that one will need to tailor any system to
suit the needs of the employees. As the organization changes over time, the system
will also need to develop to reflect changes to employee competencies, ranking
systems and rewards linked to the plan.

Performance planning arrangements

 Plans are based on an analysis of past performance and an assessment of

future demands.( representing new skills to be acquired, new tasks for the
role holder and changes in the role or scope of the function.

 Managers encourage an individual to formulate for himself or herself

performance improvement and personal development plans.

 Plan are finalized and agreed jointly by the manager and the individual.

 Plans set out clear objectives to be achieved by the individual with whatever
support is required from the manager .The plan do not spell out in too detail
how these objectives are to be achieved.

 The plans indicate the success criteria –how the individual and manager will
know that the desired results have been achieved.

 Individuals are empowered to the maximum degree possible to implement the

agreed plan.

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 Provision is made for monitoring and reviewing progress without supervision

being oppressive.

 Managers are prepared to provide whatever support is required by an

individual through coaching and counseling.

Objectives and Performance Standard

Objectives describe something that has to be accomplished –a point to be aimed

t. Objectives or goals define what organizations, functions, departments and
individuals are expected to achieve over a period of time.

Influence: Key result, Customer

feedback, Market
circumstances, External Factors,
eg legislation, Employee

Corporate Goals

Sr. Management Goals

Department/Functional
Goals

Team Goals

Individual Goals
Integration of Objectives
Goals
Performance Standard

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Performance standard can be defined as a statement of the conditions that exist when
a job is being performed effectively. These are used when it is not possible to set time
based targets or specific longer term quantifiable objectives. The essential nature of
performance standards may not change significantly from one review period to the
next if the key result area or task remains unaltered, although they may be modified if
new circumstances arise.

Competence and Competency

“Competency” as a capacity that exists in a person that leads to behavior that meets
the job demands within the parameters of the organisational environment and that in
turn, brings about desired results. Boyatzis has suggested following clusters of
competencies:-

1) Goal and action management.

2) Directing subordinates.

3) Human resource Management.

4) Leadership.

This behavioural view of competency is the usual basis of competency frameworks .A

distinction is sometimes made between “soft” behavioral competencies and “hard”
competencies.

Competence was conceived in UK as minimum standards for achievement of set of

tasks and activities, expressed in ways that can be observed and assessed with a
view to certification. It can also be defined as what people in particular roles have to
be able to do and work based or occupational competence, which refer to
expectations of workforce performance and to the standards and occupants that
people carrying out specified roles are expected to attain.

Measuring Performance

“It is often said that if you cannot measure it, you cannot manage it and what
gets measured gets done. Certainly one cannot improve performance until he
know what the present performance is”? The process of managing performance
begins by defining expectations in terms of targets, standards and capability
requirements. But improvements to performance and personal development
programmes have to start from an understanding of what the level of current
performance in terms of both results and capabilities or incapability. This is the basis

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for identifying improvement and development needs if there is shortfall more

positively, it provides the information required for career planning and continuous
development by identifying strengths to be enhanced as well as weaknesses to be
overcome .But this can only be achieved if there are agreed and reliable performance
measures.

PM involves encouraging people to take charge of their of their own performance .This
cannot be done unless they can measure and therefore monitor progress towards
their goals.

Measuring Performance

Economic Value Added

EVA measure represents the difference between a company’s post operating profit
and the cost of the capital invested in the business. Cost of capital includes cost of
equity – what share holders expects to receive through capital gains. Other economic
values are as follows.

A) Added Value: - difference between the market value of a company’s output and the
costs of its input.

B) Market Value added: - The difference between company’s market capitalization and
the total capital investment, if the result of the subtraction is positive, it will indicate the
stock market wealth created.

C) Cash flow returns on investment –a comparison between inflation adjusted cash

flows to inflation adjusted gross revenues to find cash flow return on investment.

D) Total shareholder return: what the shareholder actually gets i.e changes in capital
values plus dividends.

These measures all focus on the criterion of shareholders value .They are not
concerned with other aspects of corporate performance and take no account of other
stakeholders.

Traditional financial ratios

It includes financial measures include: return on equity, return on capital employed,

earnings per share price /earnings ratio ,profit or sales or added value per employer
and output per employee.

Performance Management Checklist

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Performance appraisals performance reviews appraisal forms as a

standalone annual assault a performance appraisal in universally disliked and
avoided.

If the true goal of the performance appraisal is employee development and

organisational improvement then the organisation is moving towards a “Performance
Management Systems”.

Preparation and Planning for Performance management

However even though this process appears to be too much time

consuming ,once the foundation of developmental goals are in place, time to
administer the system decreases. Each of these steps are taken with the
participation and cooperation of the employee, for best results.

Performance Management and Development in the General Work System

 Define the purpose of the job, job duties and responsibilities.

 Define performance goals with measurable outcomes.

 Define priority of each job responsibility and goal.

 Define performance standards for key components of the job.

 Hold interim discussions and provide feedback about employee performance,

preferably daily, summarized and discussed at least quarterly.

 Maintain a record of performance through critical incident reports

 Provide the opportunity for broader feedback. Use a 360 degree performance
feedback system that incorporates feedback from the employee’s peers,
customers and people who may report to him.

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 Develop and administer a coaching and improvement plan if the employee is not
meeting expectations.

Immediate Preparation for the Performance Development Meeting

 Scheduling the performance Development Planning meeting and define pre-

work with the employee.

 The employee reviews personal performance, documents “Self assessment”

comments and gathers needed documentation including 360 degree feedback
results when available.

 The appraiser prepares for the PDP meeting by collecting data including work
records, reports and input from others familiar with the staff person’s work.

 Both examine how the employee is performing against all criteria and think about
areas for potential development.

 Develop a plan for the PDP meeting, which includes answers to all questions on
the performance development tool with examples documentation and so on.

The performance Development Process Meeting

 Establish a comfortable, private setting and rapport with the staff person.

 Discuss and agree upon the objective of the meeting to create performance
development plan.

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 The employee identifies ways in which he would like to further develop his
professional performance, including training, assignments, new challenges and
so on.

 Add the appraiser’s thoughts to the employee’s selected areas of development

improvement.

 Discuss areas of agreement and disagreement and reach consensus.

 Examine job responsibilities for the coming quarter and in general.

 Agree upon standards for performance for key job responsibilities.

 Set goals for the quarter.

 Discuss how the goals support the accomplishment of the organizational

business plan the department‘s objectives and so on.

 Agree upon measurement of each goal.

 Assuming performance is satisfactory, establish a development plan with the

employee that helps him grow professionally in ways important to him.

 If performance is less than satisfactory, develop a written performance

improvement plan and schedule more frequent feedback meetings.

 Remind the employees of the consequences connected with continued poor

performance.

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 The appraiser and employee discuss employee’s feedback and constructive

suggestions for the appraiser and then department.

 Discuss anything else the appraiser or employee would like to discuss hopefully,
maintaining the positive and constructive environment established thus far
during the meeting.

 Mutually sign the performance development tool to indicate the discussion has
taken place.

 End the meeting in a positive and supportive manner. The appraiser expresses
confidence that the employee can accomplish the plan and that the appraiser is
available for support and assistance.

 Set a time frame for formal follow up, generally quarterly.

Benchmarking

Benchmarking involves measuring performance of the organisation, teams or

individuals against the best practice for the industry, function or particular activity.
Benchmarking for organizations means analyzing the performance of comparable
business under appropriate headings e.g productivity and when the performance of the
organisation inferior assessing why the performance of the benchmarking at this level
will look at the best practice elsewhere in areas affecting the performance of the
organisation as a whole-for eg quality control, manufacturing systems, customer service
,employee satisfaction, absenteeism

At team and individual level, benchmarking involves the systematic collection and
analysis of data from other comparable organizations, this data will refer to specific
activities or processing times, speed of response and throughput. One of the aims of
this type of benchmarking is to establish performance standards and targets based on
what can be realistically achieved elsewhere. Naturally in marking such comparisons
allowance has to be made for differences in the types of activity, the technology
available and resources deployed elsewhere, so that conclusions of what can be
achieved within the organisation are not based on invalid evidence.

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Benchmarking can also take place within organizations to compare say service
delivery standards in different divisions or unit.

360 Degree Feedback

360 degree feedback is the latest and most exciting development in the field of
performance management. It can be defined as systematic collection and feedback of
performance data on an individual or group derived from a number of the stakeholders
on their performance, data is usually fed back in the form of ratings against various
performance dimensions. It can also be described as multi source assessment or
multirater feedback. Performance data in a 360 degree feedback process can be
generated for individual from the person to whom they report, their direct reports, their
peers and their external and internal customers.

The range of feedback could be extended to include other stakeholders –external

customers, clients or supplier’s. As elf assessment process may also be incorporated
using for comparison purposes the same criteria as the other generators of feedback.

Manager

Peers
Individual Customers

Direct Reports

Feedback can be initiated entirely by peers or both by peers and team leaders .It
can also take the form of 180 degree or upward feedback, where this is
generated by subordinates to their managers. feedback may be presented
directly to individuals or to their managers or both .Expert counseling and

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coaching for individuals as a result of the feedback may be provided by a

member of the HR department or an outside consultant.

Use for developmental purpose

 Performance improvement is important but is viewed as alogical outcome

of a successful feedback process.

 The potential for personal change and growth is emphasized rather than
current performance.

 Strengths and weaknesses are regarded as developmental opportunities.

 A long term perspective is adopted because the ultimate goal is personal

growth.

 The line manager has a nominal role and may be executed altogether.

 Feedback data is personal intelligence and a trigger for change.

 It helps managers to formulate personal development plans or as input to

a development centre.

Advantages of 360 degree feedback

Organizations that are happy with the 360 degree component of their performance
management systems identify these features of the process. These features will
manifest themselves in well managed, well integrated 360 degree processes.

1) Improved feedback from more sources

Provides well rounded feedback from peers, reporting staff, coworkers and
supervisors .This can be a definite improvement over feedback from a single individual .
360 feedback can also save managers time in that they can spend less energy
providing feedback as more people participates in the process co-workers perception is
important and the process helps people understand how other employees view their
work.

2) Team development

Team development helps members learn to work more effectively together.

( Team know more about how team members are perfrompomg than their

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supervisor). Multirater feedback makes team members more accountable to each

other as they share the knowledge that they will provide input on each members
performance .A well planned process can improve communication and team
development.

3) Personal and organisational performance development.

4) 360 degree feedback is one of the best methods for understanding personal and
organisational developmental needs.

5) Responsibility for career development

For many reasons, organizations are no longer responsible for developing the
careers of their employees; if they ever were multirater feedback can provide
excellent information to an individual about what one needs to do to enhance his
career. Additionally many employees feel 360 degree feedback is more accurate
reflective of their performance and more validating than prior feedback from the
supervisor alone. This makes the information more useful for both career and
personal development.

6) Reduced discrimination risk

When feedback comes from number of individuals in various job functions,

discrimination because of race, age, gender and so on is reduced .The “horns and
halo effect”. In which a supervisor rates performance based on her most recent
interactions with the employee is also minimized.

7) Improved customer service

Especially in feedback processes that involve the internal or external customer,

each person receives valuable feedback about the quality of his product or
services .This feedback should enable the individual to improve the quality,
reliability, promptness and comprehensive of these products and services.

8) Training needs Assessment

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Multirater feedback provides comprehensive information about organization

training needs and thus allows planning for classes, cross functional
responsibilities and cross training.

Nailing a goodmanagerial360degree performance

Introducing 360 or multi-scorer feedback into an organisation for the first time
requires a thoughtful well planned, structured process. Always strt with the
outcome you are trying to achieve .This goal must be clear ,well accepted and
communicated .There is no question that 360 is best placed in a development
context so try and link your goal to development outcome. Also be aware of any
resistance that might exist, either overtly or covertly to 360 oand plan
accordingly.

Consider what other systems and initiatives link into the 360 program. For
example many organizations follows up the 360 program

Following the Performance Development Process Meeting

 If a performance improvement plan was necessary, follow up at the designated

times.

 Follow up performance feedback and discussions regularly throughout the

quarter ( An employee should never be surprised about the content of feedback
at the performance development meeting)

 The appraiser needs to keep commitments relative to the agreed upon

development plan, including time needed away from the job payment for courses
agreed upon work assignments and so on.

 The appraiser needs to act upon the feedback from departmental members and
let employees know what has changed based upon their feedback.

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 Forward appropriate documentation to the Human Resource Office and retain a

copy of the plan for easy access and referral.

What is the value of using PMS???

Today, many organizations place strong emphasis on the adoption and usage of broad
spectrum performance management system as opposed traditional financially focused
systems, partially this has been driven by the popularity of balanced scorecard
developed by Kaplan Norton over a decade ago.

However few of this adoption are strictly what Kaplan Advocates and balanced
scorecard has become a generic term for PMS that extends beyond regular financial
measurement systems.

The benefits of PMS. ( last …………)

For the Organistion

1) Align corporate, individual and team objective.

2) Improve performance.

3) Motivate employees.

4) Increase commitment.

5) Underpin core values.

6) Improve training and development processes.

7) Help to develop a learning organization.

8) Enlarge the skill base.

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9) Provide for continuous improvement and development.

10) Provide the basis for career planning.

11) Help to retain skilled employees.

12) Support total quality and customer service initiatives.

13) Support culture change programmes.

For Managers

1) Provide the basis for clarifying performance and behavior expectations.

2) Afford a framework for reviewing performance and competence levels.

3) Improve team and individual performance.

4) Support leadership, motivating and team building processes.

5) Provide the basis for helping underperformers.

6) May be used to develop or coach individuals.

7) Offer the opportunity to spend structured “quality” time with teams and team
members.

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8) Provide the basis for providing non financial rewards to staff ( eg. recognition,
opportunity for growth and development)

For Individuals

1. Greater clarity of roles and objectives.

2. Encouragement and support to perform well.

3. The provision of guidance and help in developing abilities and performance.

4. Opportunities to spend “quality time “with their managers.

5. Opportunities to contribute to the formulation of objectives and plans and

improvements in the way work is managed and carried.

6. An objective and fair basis for assessing performance.

Direct financial gains

1) Grow sales
2) Reduce costs
3) Stop project overruns
4) Aligns the organization directly behind the CEO's goals
5) Motivated workforce
6) Optimizes incentive plans to specific goals for over achievement, not just
business as usual
7) Improves employee engagement because everyone understands how they are
directly contributing to the organizations high level goals.

8) Create transparency in achievement of goals.

9) High confidence in bonus payment process.

10)Professional development programs are better aligned directly to achieving

business level goals.

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Improved management control

1) Flexible, responsive to management needs

2) Displays data relationships

3) Helps audit / comply with legislative requirements

4) Simplifies communication of strategic goals scenario planning.

5) Provides well documented and communicated process documentation.

Ground work By Umesh K. Patil

MHRDM – Vth Sem

Roll No-86

"The ability to make good decisions regarding people represents one of the last reliable
sources of competitive advantage, since very few organizations are very good at it."
- Peter Drucker

Talent management refers to the process of developing and integrating new workers, developing
and retaining current workers, and attracting highly skilled workers to work for a company.
Talent management in this context does not refer to the management of entertainers. The term
was coined by David Watkins of Softscape published in an article in 1998. The process of
attracting and retaining profitable employees, as it is increasingly more competitive between
firms and of strategic importance, has come to be known as "the war for talent."

Talent management is a process that emerged in the 1990s and continues to be adopted, as more
companies come to realize that their employees’ talents and skills drive their business success.
Companies that have put into practice talent management have done so to solve an employee
retention problem. The issue with many companies today is that their organizations put
tremendous effort into attracting employees to their company, but spend little time into retaining
and developing talent. A talent management system must be worked into the business strategy
and implemented in daily processes throughout the company as a whole. It cannot be left solely
to the human resources department to attract and retain employees, but rather must be practiced
at all levels of the organization. The business strategy must include responsibilities for line
managers to develop the skills of their immediate subordinates. Divisions within the company
should be openly sharing information with other departments in order for employees to gain

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knowledge of the overall organizational objectives. Companies that focus on developing their
talent integrate plans and processes to track and manage their employee talent, including the
following:

 Sourcing, attracting, recruiting and onboarding qualified candidates with competitive

backgrounds
 Managing and defining competitive salaries
 Training and development opportunities
 Performance management processes
 Retention programs
 Promotion and transitioning

Talent management is also known as HCM (Human Capital Management),

Human capital management

Companies that engage in talent management (Human Capital Management) are strategic and
deliberate in how they source, attract, select, train, develop, retain, promote, and move
employees through the organization. Research done on the value of such systems implemented
within companies consistently uncovers benefits in these critical economic areas: revenue,
customer satisfaction, quality, productivity, cost, cycle time, and market capitalization.[6] The
mindset of this more personal human resources approach seeks not only to hire the most
qualified and valuable employees but also to put a strong emphasis on retention. Since the initial
hiring process is so expensive to a company, it is important to place the individual in a position
where his skills are being extensively utilized.

The term "talent management" means different things to different organizations. To some it is
about the management of high-worth individuals or "the talented" whilst to others it is about how
talent is managed generally - i.e. on the assumption that all people have talent which should be
identified and liberated. From a talent management standpoint, employee evaluations concern
two major areas of measurement: performance and potential. Current employee performance
within a specific job has always been a standard evaluation measurement tool of the profitability
of an employee. However, talent management also seeks to focus on an employee’s potential,
meaning an employee’s future performance, if given the proper development of skills and
increased responsibility.

The major aspects of talent management practiced within an organization must consistently
include.

 performance management
 leadership development
 workforce planning/identifying talent gaps

recruiting

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This term "talent management" is usually associated with competency-based human resource
management practices. Talent management decisions are often driven by a set of organizational
core competencies as well as position-specific competencies. The competency set may include
knowledge, skills, experience, and personal traits (demonstrated through defined behaviors).
Older competency models might also contain attributes that rarely predict success (e.g.
education, tenure, and diversity factors that are illegal to consider in relation to job performance
in many countries, and unethical within organizations).

Current application of talent management

In current economic conditions, many companies have felt the need to cut expenses. This should
be the ideal environment to execute a talent management system as a means of optimizing the
performance of each employee and the organization. However, within many companies the
concept of human capital management has just begun to develop. “In fact, only 5 percent of
organizations say they have a clear talent management strategy and operational programs in
place today.”

To develop a clear talent management strategy and to increase awareness of available talent and
successors, all organizations should conduct regular Talent Review meetings to be prepared for a
variety of business changes, such as mergers, company growth, or a decrease in talent needs. In
the same way that all companies have regular meetings and reports regarding their financial
status and budgetary needs, the Talent Review meeting is designed to review the current talent
status and future successor needs in the organization.

The Talent Review meeting is an important part of the overall talent management process; it is
designed to review the performance and career potential of employees, to discuss possible
vacancy risks of current employees, to identify successors and top talent in the organization, and
to create development action plans to prepare employees for future roles in the organization.
"This is what talent management is all about — gathering information about talent, analyzing
their career interests and organizational business needs, identifying top talent and successes, and
developing these individuals to reduce the risk of losing the best people and experiencing
extensive leadership gaps when turnover occurs." Management Myths", Sims, Doris, Talent

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Talent management
Talent is innovation and creativity is highly desired yet rarely understood or
effectively nurtured within organizations .Many recruitments advertisements ask
for talented people, yet if organizations are lucky enough to recruit a talented
individual they often experience difficulty in engaging or retaining them.

We can only wonder at what makes someone talented. However hard we try to
define it, talent remains almost indefinable. Talented people are creative, self
confident, self starters, edgy, resilient, entrepreneurial, intellectually flexible,
opportunistic, unique and different. Employees display intuition, creativity and
imagination in their day to day employment .Sometimes we may not able to
describe it accurately, but we recognize it when we see it.

Talent Management also known as Talent development as it is quite difficult to

manage talent .Talent slips and rolls around an organisation and often before you
realize it, it has disappeared out of the door.

Organizations often try to set up talent management processes, but real success
comes when one engage with the hearts and mind of individual. The
organizations that achieve most success with this are those where the vision and
values of an organisation are aligned with the individual.

Fundamentally talent development needs attention to make it happen. It also

needs a holistic approach, like customer service, quality standard and health and
safety. One cannot just give the responsibility to one person and hope that it will
happen. There has to be a belief and a commitment to make it happen from the
CEO and executive right through line management to the newest recruit.

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Organizations can conceive themselves that talent management is being carried

out when they create a system to define the steps or outline a process to
manage talent. However talent development only happens when one create a
culture based on shared values and beliefs. Where thinking and feeling emotions
are engaged and the leadership demonstrates its commitment through its
behavior and attitudes.

Individuals joining an organisation need to feel they are valued and that their
contribution will make a difference. It is easy to say that this is happening, but far
harder to have concrete evidence of its application.

In any discussion about talent development or development of “high potentials” it

is important first to emphasis the development of all individuals .No organsiation
should focus all its attention on developing only part of its human capital .What is
important, however is recognizing the needs of different individuals within its
community.

In the search of effective process of for developing talent, most organizations

recognize the need to do it differently. However the challenges are often to
identify how and where to start. Talented people do not necessarily fit into an
easy system of classification .People are talented in many ways .Some may have
a particular aptitude for doing something, Which may be primarily skilled based.
Others may be gifted artistically and yet others may demonstrate their talent tin
more outrages ways and may be seen as maverick in their approach to life.

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