Unit-3

Talent Management – Performance Management

Introduction:

In this chapter, we shall discuss the relationship between Talent Management

and Performance Management. Both are two integral parts of human
resources management, and are focused on the same organizational goal –
securing human capital contribution and performance.

Performance management is concerned with the present – here and now;

whereas talent management focuses on securing the future – tomorrow. The
process and activities involved are completely different between these two
programs however the targeted outcome for the organization is the same.

Talent management aims at retaining the efficient and high-performing

employees, while performance management aims at setting the performance
objective, activities, and target according to the individual accountability plan
and measure performance periodically – yearly or quarterly.

Performance management includes activities such as planning work,

goal setting, monitoring or continuous progress review, frequent
communication, feedback and training for improved performance,
implementation of employee development programs and rewarding
achievements.

Performance Management includes the following activities −

  Planning and Setting Goals − Performance management includes proper
planning and setting performance expectation and goals for individuals and teams
to redirect their efforts and skill towards realizing organizational goals. There
should be measurable, understandable, verifiable, and achievable performance
elements and standards.

 Monitoring or Evaluating Performance − This involves periodical assessment

or measuring of employees’ performance, providing feedback to employees and
work groups on their progress towards realizing their set goals. Continuous
progress review is helpful in identifying unacceptable performance at any time.

 Developing and Enhancing Capacity − Performance management provides

training, gives assignments to acquaint the employees with new skills, and
improves the work processes or methods to enhance the capacity to perform.
Performance management processes provide a good opportunity to identify
development needs.

 Rating or Evaluating Performance − Evaluate or assess employees or group

performance against set standards or elements in a performance plan. Based on
the evaluation, assign a summary evaluation or rating record.

 Rewarding Performance − The last stage of performance management is to

have a culture of rewarding employees, both individually and as members of
group for their performance towards the realization of organizational goals and
objectives.

Objective of Performance Management in Managing Talent

The objective of performance management is to build a high performance
culture for both individuals and teams in an organization so that they jointly
take the responsibility of improving the business processes, and at the same
time increase overall productivity.
Following are some important objectives of Performance Management with
reference to talent management.

 Drive the employees towards achievement of superior standards of work

performance.

 Support the employees in identifying the knowledge and skills required to perform
the job efficiently.

 Motivate employees by encouraging employee empowerment and implementation

of an effective reward process.

 Promote a two-way system of communication between management and the

employees for clarifying expectations, roles and accountabilities, functional and
organizational goals. Provide regular and transparent feedback to improve
employee performance.

 Identify the barriers or problems to effective performance and resolve those

barriers through constant monitoring, training, and development interventions.

 Promote personal growth in the career of the employees by helping or supporting

them in acquiring the desired knowledge and skills.

 Increase the self-esteem of the employees and enhance their self-insight and
development.
Benefits of Performance Management
An effective performance management system can play a very crucial role in
managing the performance in an organization by −

 Ensuring proper understanding of objectives and facilitating effective

communication throughout the organization.

 Developing a healthy relationship between an employee and the line manager

based on trust and empowerment.

 Ensuring each employee understands what is expected and equally ascertaining

whether the employees possess the required skills and support to fulfill such
expectations.

 Ensuring employees understand the importance of their contributions to the

organizational goals and objectives.

 Better and timely differentiation between good and poor performers.

 Enhancing the competence of the employees and enabling the managers to gain
insight about their subordinates.

 Facilitating organizational changes and paving ways for appropriate administrative

actions.
 Overview Employee Development

This section contains two types of development plans. The Performance Development Plan is
used for near-term improvement in one to three performance areas. The Career
Development Plan is used to focus an individual's work experience and training on long-term
organizational needs and personal interests.

 Solve performance problems and turn difficult performance discussions into positive
action.

 Retain high-potential individuals by identifying new challenges and ongoing

opportunities.

 Prepare employees for promotions and other major new responsibilities. Also helps
employees adapt to organizational change.

Personal Development Plans

1. Performance Development Plan
 A Performance Development Plan is a flexible tool for improving employee
performance. It can be used with your strongest performers to identify new ways in
which they can contribute or with employees who are not meeting expectations.
 This type of plan is used to address performance issues that have been identified by
the manager and communicated in an appraisal, performance-related memo or in
conversation. In addition, a plan can be initiated by any self-motivated employee
who wants to improve performance in a specific area.
 The following guide takes the employee and manager through the two part process
of completing a Performance Development Plan. Part One leads the employee
through a first draft, while Part Two covers the manager's review, the manager-
employee discussion, and an agreement to action.

Guide to Writing a Performance Development Plan

Part 1: Employee Instructions

Step 1:

Review Improvement areas. Before beginning the plan, review the sections in the
performance appraisal (or other document) where potential improvement areas have been
identified. It is important that you understand and agree with the basic issues and
expectations before setting up developmental activities, so be sure to get clarification from
your manager if you have any questions.

Step 2:
Document development goals. Write down 1-3 developmental goals related to areas you
want to improve or performance issues identified by your manager. An example of a
development goal is "Improve my presentation skills."

Tip: Development Goal Checklist

 Is the goal specific?

 Can your success in reaching the development goal be measured?
 Is it realistic/attainable given the timing and resources?
 Will it have a direct impact on your job performance?
 Is it tied to the organization's goals and mission?
 Are the goals listed in order of priority?

Step 3:

Define development activities. List 2-3 activities that will help you reach each goal. Be sure
to specify how and when you will start and complete each activity.

Tip: Common Development Activities

 Identify and cultivate a relationship with a mentor/role model.

 Read relevant material.
 Engage in training and education.
 Keep a journal.
 Attend appropriate seminars.
 Take on special job assignments or job rotation.
 Receive coaching from a skilled co-worker.
 Increase customer contact.
 Incorporate activities into ongoing work assignments.

Step 4:

Gather resources. List any resources you will need to complete your development activities.
Resources may include other people's time or expertise, funds for training materials and
activities, or time away from your usual responsibilities.

Step 5:

Define metrics of performance. Indicate how you will measure the accomplishment of each
developmental goal, using 2-3 different indicators when possible.

Tip: Different ways to measure developmental goals

 1) Measuring completion of developmental activities; e.g. "developmental goal x

(improving presentation skills) will be met when I complete the ABC training course
(Sales Presentation Seminar)."
  2) Measuring change in performance on a task after developmental activities have
taken place; e.g. "developmental goal x (improving presentation skills) will be met
when the number of positive comments I receive after presentations outweigh the
number of criticisms."

 3) Measuring final end results of developmental activities; e.g. "developmental goal

x (improving presentation skills) will be met when I achieve result XYZ (5
consecutive sales presentations generate orders over $7500).

 4) Measuring the skills or abilities developed using a test or other evaluation; e.g.
"developmental goal x (improving presentation skills) will be met when the average
audience rating for my presentation is 8 or better on a scale from 1 to 10."

Step 6:

Consider what you will need from your manager. Identify ways in which your manager will
support your development activities. Manager support often includes personal guidance
(advice, review of progress) and some type of influence (e.g., introducing you to key people
in the company, putting you in charge of the next team meeting, or giving you additional
resources).

Step 7:

Define process milestones. Describe when and how progress checkpoints will occur (e.g.,
memos, phone calls, meetings, etc.) and what developmental activities will be completed or
discussed at each checkpoint.

Part 2: Manager Review - Tips and Questions

Review the employee's suggested improvement plan before the performance plan meeting.
This plan is a good indicator of how well the employee understood the performance issues
you had identified. Validate the employee's assessment and plan by providing comments
and activity suggestions. Identify any development areas the employee may not have
recognized.
Questions to ask....

1. On a scale of 1-10, how well do you think the employee understands the performance
issues and expectations for improvement? Do the developmental goals and activities
connect directly to the performance issues you identified?

Tip: If the employee misunderstands or disagrees with your assessment of their

developmental needs, try the following steps: 1) Review the facts - the behavior you
observed, the results they achieved, and the impact on the organization- and make sure
that the employee acknowledges them as facts, 2) Describe why that behavior or those
results need to change and 3) Identify suggested changes and describe how they will help
the employee contribute to meeting team or organizational needs.

2. Are the developmental activities detailed and action-oriented? Are they realistic given the
available time and resources? What is your confidence level (x%) that the employee can
complete the activities?
3. Do you know of other activities that would help the employee reach developmental goals?
What has helped you in the past in this area?
4. Can you provide the resources identified? What is the chance (x%) that resource needs
have been underestimated?

5. Are you comfortable with the measurement criteria for each developmental goal? Can
you make them more quantifiable?

Tip: When dealing with more serious performance issues, make sure that goal measurement
is based on objective, quantifiable criteria. For issues that are difficult to quantify, the next
best solution is to have a third party (a co-worker, manager, customer, etc.) rate employee
performance before and after developmental activities.

6. Are you 100% committed to delivering the help that your employee is requesting? Or,
are you promising more than you can deliver in the given time frame?

7. Have you and the employee agreed on dates for checking progress, how progress will be
measured, and what changes will be made if progress is behind schedule?

Tip: If the employee is making the effort but is behind schedule at a checkpoint, you can
provide additional guidance and/or suggest changes in activities. If the employee has made
little progress and does not appear to be making an effort, you should reiterate the
importance of the development goal, possibly change the schedule to move development up
the priority list, and if necessary, identify consequences if progress continues to be slow.

Tip: Be sure to offer positive feedback at each checkpoint when progress is on track, if
nothing more than a quick acknowledgement (e.g. "I can see you're making great
progress.")

Performance Development Plan Sample

Step 1:

Write down 1-3 developmental goals related to areas you want to improve or performance
issues that have been identified by your manager.

Development goals:

1. Improve my presentation skills

2.
3.

Step 2:

List 2-3 activities that will help you reach each goal. Be sure to specify how and when you
will start and complete each activity.

Activities:
Goal 1: Improve my presentation skills
Activity 1: Attend the Presenters in Business Seminar
How to accomplish: Register for the seminar through work
Starting date: Tomorrow, September 29th
Date of completion: Next month, October 15th (date of seminar)
Activity 2: Continue to practice my skills in meetings
How to accomplish: Volunteer to give a weekly presentation on business results
Starting date: This week
Date of completion: Continue throughout the year
Goal 2:
Goal 3:

Step 3:

List any resources you will need to complete your development activities. (May include other
people's time or expertise, funds for training materials and activities, or time away from
your usual responsibilities).

Resources:

1. The Presenters in Business Seminar will cost $250.00

2. Contacts with Michael Blanchard and Kirsten McKay, who I think are the best presenters
in the company.
3. I will need to leave by 3:00 p.m. on Thursdays to attend the course.

Step 4:

Indicate how you will measure the accomplishment of each developmental goal, using 2-3
different indicators when possible.

Measurement criteria:

1. I'll get feedback on my weekly business results presentation by asking three people there
to rate my presentation (scale of 1-10) before and after my training seminar. I'll be
successful when my average score is an 8 or better.
2. I will attend all of the course sessions.
3. My sales presentations will result in at least $x sales in the next three months.

Step 5:

Identify ways in which your manager will support your development activities.

Management support:

1. By giving me the opportunity to give weekly presentations, and being one of the three
people who rate my performance.
2. Suggesting other excellent presenters who I can contact to evaluate my performance at
weekly meetings.
3. Providing the funds for the seminar.

Step 6:
Describe when and how progress checkpoints will occur (e.g., memos, phone calls,
meetings, etc.) and what developmental activities will be completed or discussed at that
time.

Progress checkpoints:

Checkpoint 1
Date: November 5th
Time: 10:00 a.m.
Type of follow-up: meeting
Progress expected: Presenters in Business seminar attended, 9 weekly presentations
completed, achieve rating of 8 on my weekly presentations
Activity change/addition (if needed)

2. Career Development Plan

A Career Development Plan is a tool to keep individual's skills and interests aligned with
organizational needs, and to build employee commitment to the organization. When it is
completed by the employee and manager cooperatively, it can have a major impact on an
employee's motivation, personal growth, and overall contribution to the company. Employee
career development can make the difference between watching your best people move up in
the organization and watching them move on to a new career or to your competitors.

Career development plans may be written with the following objectives in mind:

 Growth in the current job. Expanding skills and job satisfaction for employees who
are at the top of their career path or who do not have a desire to move beyond
their current position.

 Promotion and succession planning. Preparing an employee for a promotion,

including the replacement of the employee's manager.

Guide to Writing a Career Development Plan

Part 1: Employee Instructions

Step 1:

Write down your primary career interest.

Tip: A primary career interest is usually described in terms of a general vocation. For
example, "My primary career interest is marketing within the automobile industry."

Step 2:

Identify long-term professional goals (including positions desired within the company).
Tip: Long term professional goals are often conveyed in terms of specific positions ("become
a regional sales manager") or major accomplishments ("write a book").

Tip: List any lateral moves or promotions that will help you meet your long-term
professional goals. For example, "I want to move from sales associate to sales manager,
and finally to regional sales manager."

Step 3:

Identify the short-term goals that contribute to long-term interests and the challenges that
must be overcome in order to reach these goals.

Tip: Identify barriers, both personal and external, that prevent you from accomplishing your
short-term goals, then create ways to overcome them. For example, "My short-term goal is
to acquire advanced computer skills. The barrier is the time constraints on my job in
mechanical engineering which leave me little or no time to receive the additional training I
need. The way I could overcome this barrier is to find more efficient ways to complete my
tasks or to delegate them to others while I attend the August training sessions."

Step 4:

List 2-3 activities that will help you reach each goal. Be sure to specify how you will
accomplish the activity, including any resources you might need, and when you will start
and finish it. (Resources may include other people's time/expertise, funds for training
materials and activities,or time away from your other responsibilities).

Tip: Common Development Activities

 Identify and cultivate a relationship with a mentor/role model.

 Read relevant material.
 Engage in training and education.
 Keep a journal.
 Attend appropriate seminars.
 Take on special job assignments or job rotation.
 Receive coaching from a skilled co-worker.
 Increase customer contact.
 Incorporate activities into ongoing work assignments.

Step 5:

Describe tasks in your current job that are contributing to long term goals and that you
would like to emphasize or perform more frequently.

Step 6:

Describe tasks in your current job that are not contributing to your long-term goals.
Suggest ways to minimize, remove, or delegate them to others.
Step 7:

Write down any additional skills, knowledge or experience you would like to acquire that
may directly or indirectly help you in your current job or future positions.

Step 8:

Describe when and how progress checkpoints will occur (e.g., memos, phone calls,
meetings) and what developmental activities will be completed or discussed at these times.

Part 2: Manager Review

Questions to ask....
1. Are you aware of your employee's career interests and values? Do you know which of
your employee's strengths contribute to these career goals and what areas need to be
developed?

2. Do you feel that the short-term goals your employee has suggested are unrealistic, given
the employee's abilities or other external factors? Is there anything standing in the way of
the desired goals?

Tip: Convey what you know about organizational realities to help the employee set short-
term goals. If you think there are outside barriers which will inhibit the attainment of their
goals, describe them and help the employee work around them.

3. Do you know of other activities that would help the employee reach the developmental
goals? What has helped you in the past in this area?

Tip: Help the employee select at least one development activity for each short-term goal.
Scan the Employee Appraiser Coaching Advisor for action suggestions.

4. Are there people you know who could help your employee meet their career development
goals? Can you provide the resources identified?

Tip: Help the employee meet their goals by offering your ideas, contacts with people, and
resources. Think of at least one person who could help the employee in a mentor or advisor
role.

5. Can you make changes to the employee's job to replace routine tasks with new work that
is more closely aligned with the employee's goals?

Tip: If you agree with the employee's suggestions for expanding their responsibilities, work
with them to define any additional knowledge or experience they will need to meet the new
set of expectations. Also take a close look at how their workload will be affected, and
discuss any responsibilities they will need to give up.

Tip: When employees mention tasks they no longer want to be involved with, ask them for
specific suggestions on how to get the same result without their involvement, e.g. delegate,
eliminate, or find more efficient ways of accomplishing the tasks.
6. Have you and the employee agreed on dates for progress checkpoints and what will be
measured at each one?

Career Development Plan Template

Step 1: Write down your primary career interest.

PRIMARY CAREER INTEREST: sales management

Step 2: Identify long-term professional goals (including positions desired within the
company).

Long-term professional goals:

1. Become a Regional Sales Manager
2.
3.

Step 3: Identify the short-term goals that will contribute to long-term interests.

Short-term professional goals:

1. Be in top 10% of regional sales for each quarter
2. Be a team leader for Project Zelphi
3. Join the Omicron Trade Group

Step 4: List 2-3 activities that will help you reach each goal. Be sure to specify how you will
accomplish the activity, including any resources you might need, and when you will start
and finish it.

Career development activities:

Short-term Goal 1: Be in top 10% of regional sales each quarter
Activity 1: Go on sales calls with senior sales managers, Susan Pipkin and Jose Gonzales.
How to accomplish: Have manager introduce me to them. Ask them to lunch and cultivate a
working relationship.
Starting date: Next Monday, July 15th.

Date of completion: Next Friday, July 19th.

Activity 2: Read the top two trade publications each month.

How to accomplish: Subscribe to them through work.

Starting date: Tomorrow, July 12th.

Date of completion: Tomorrow, July 12th through next year.

Short-term Goal 2:
Short-term Goal 3:

Step 5: Describe tasks in your current job that are contributing to long-term goals and that
you would like to emphasize or perform more frequently.

Suggested task emphasis\expansion:

1. Working on projects with marketing and product development units.
Step 6: Describe tasks in your current job that are not contributing to your long-term goals.
Suggest ways to minimize, eliminate, or delegate them to others.

Suggested task minimization/elimination:

1. Weekly meetings with Channel Sales (could send Sharon Lee in my place)
2.

Step 7: Write down any additional skills, knowledge or experience you would like to acquire
that may directly or indirectly help you in your current or future positions.

Additional skills, knowledge, experience desired:

1. Becoming proficient in technical aspects of our software programs.
2.
3.

Step 8: Describe when and how progress checkpoints will occur (e.g., memos, phone calls,
meetings, etc.) and what developmental activities will be completed or discussed at these
times.

Progress Checkpoint 1: Meeting with manager

Date and Time of Checkpoint: Monday August 5, 10:00 a.m.
Purpose: Discuss sales calls with Susan Pipkin
Progress Checkpoint 2: Phone call with manager
Date and Time of Checkpoint: Friday September 7, 10:00 a.m.
Purpose: Address relevant learning from sales seminar
 360 Degree Feedback as a Development Tool

Introduction:

360-Degree Feedback is a multi-rater feedback process in which an employee

receives confidential but anonymous feedback from subordinates, peers,
customers or clients, reporting managers or any other people who work
around them. This is a kind of appraisal tool, which measures the
performance of the employees.

The employee receives an analysis of how he or she perceives himself or

herself and how he or she is perceived by others. The feedback forms include
questions that are measured on a rating scale and also ask raters to provide
comments.

The growing irrelevance of top-down performance reviews has led to more

topdown/bottom-up assessments, and eventually to the 360-degree
assessment.
In a nutshell, in this system of feedback, not only the superior but also the
peers and every stakeholder of the organization evaluates and comments on
the performance of the employees.

Following are some of the benefits of 360-degree feedback system −

 Need for any change or development in the employees are revealed.

 Establishes increasing communication in the organization.
 Drives training to ensure more client or customer satisfaction.
 Better career development for the employees.
The 360-Feedback Flowchart in Talent Management consists of the following
stages

The Concept of 360-Degree Feedback in Talent Management

The 360-degree appraisal gives the HR Department an upper hand to gain
better understanding of the competitive advantage and disadvantages of the
current human resources and tune them towards performance excellence and
productivity. It fits well into a large organization as it touches every
stakeholder in assessing the efficiency and performance of an employee.

Principles of 360-Degree Feedback

As discussed earlier, 360-degree appraisal is a multi-rater and feedback
system, widely acknowledged appraisal model in the world today. The basic
principles of this popular appraisal system are as follows.

 The employee is assessed yearly or even half-yearly by a series of

assessors such as the manager, immediate subordinates, peers, and
internal and external customers.

 The aforesaid assessment is carried on with a questionnaire, which is

specially designed to assess behavior critical for performance.

 The assessment is consolidated and feedback profiles are prepared and

shared with every participant either by the HR manager or the
department in a performance review session.

 It is powerful, accurate, and reliable compared with the tradition

feedback system as it conducts an impartial and objective assessment.
It also involves all those who are related to the targeted employees.

 It addresses various skills such as resource management and goal

setting. It is multi-dimensional.

 It also emphasizes subjective aspects such as teamwork, leadership

qualities, and overall character.

360-degree feedback answers the following questions −

 Why should I improve my performance?

 What do I need to improve?
 How can I improve?
The following diagram shows how 360-degree feedback is different from the
traditional feedback system.
360-degree feedback system is a wholesome appraisal method. It assesses
and provides feedback about the employee’s work-related behavior and/or
performances by soliciting information and data from a variety of workplace
sources. It first became popular as 360degree appraisal system in the US and
today a large number of Fortune 500 organizations are using this non-
conventional appraisal measure in some form or the other.
 Performance Management & Reward System

Employee rewards and recognition system is not just a positive action

towards employees. If it is implemented effectively, it proves to be an
efficient tool in encouraging the employees to create and bring business for
the company.

Recognizing the efforts of employees and encouraging their morale results in

increased productivity and decreased attrition rate. It is a documented fact
that an encouraged and dedicated workforce can change the fate of a
company.

Establishing and executing a reward system needs careful analysis of the

company policies and procedures. Deciding how to recognize employees’
efforts and what to provide them needs thorough analysis of duties and risks
involved in a particular job.

Types of Rewards
Reward system of a company should also be in alignment with its goals,
objectives, mission and vision. On the basis of the job profile, both monetary
and non-monetary rewards can motivate employees to contribute more to
the organization.
Monetary Rewards
A hike in salary, incentives, movie tickets, vacation trips, monetary
allowances on special occasions, redeemable coupons, cash bonuses, gift
certificates, stock awards, free or discounted health check-ups for the
complete family and school/tuition fees for employees’ children come under
this category.

Non-monetary Rewards

Non-monetary rewards include awards, certificates, letters of appreciation,

dinner with boss, redecoration of employee cabin, membership of recreation
clubs, perks, use of company facilities, suggestion awards, tie-pins, brooches,
diaries, promotion, a say in management, etc.

A mixture of monetary and non-monetary rewards works wonders and drive

employees to act competently continuously. A proper and efficient employee
reward and recognition program creates harmonious relationships between
employees and the employer.

Flexible Pay
The practice of relating pay to performance has been around for a while.
However, what’s new is that the percentage of pay that is related to
performance and the way in which the same is structured around different
elements of performance.

One of the key elements of this flexible pay plan is the strategy of relating
pay to performance. This strategy has been followed by many multinational
companies worldwide and consists of the overall pay structure being broken
down into elements.
The variable pay would be paid out as a percentage of the complete package,
subject to the performance of the employee. For instance, if the employee
gets a grade of 3 on a scale of 1 to 5 (with 1 as the highest and 5 and the
lowest grade), the variable pay would be 60-70% of the eligible amount and
if the employee gets a grade of 2, the variable pay would be 110-120% of
the eligible amount. The variable component of the salary is determined
according to the performance of the employee.

The international practice is to increase the element of the variable pay more
than the hierarchy. This would state that at senior levels of the employee
hierarchy, the variable component can be as high as 50-60% of the overall
pay.
 Performance Linked Remuneration System
Remuneration.

Remuneration is payment or compensation received for services or

employment.

Remuneration can include or Types of Remuneration:

 Commission.
 Executive compensation. Deferred compensation.
 Compensation methods in online advertising and internet marketing.
 Employee stock option.
 Employee benefits.
 Salary. Performance-linked incentives.
 Wage.

A performance-linked remuneration is a form of payment from an

employer to an employee, which is directly related to
the performance output of an employee.

Examples of remuneration:-

Financial Compensation
Bob recently signed a full-time employment contract at a marketing agency
stipulating that he was to receive a salary of $75,000 per year as
compensation for his work. So, salary is a form of remuneration. Unlike with
Bob's full-time job, Jill recently started working part-time at a local grocery
store. She is being paid $10.00 per hour. Hourly pay is another form of
remuneration. That $10.00/hour job jumps to $15.00/hour if Jill works
overtime. So, overtime pay is also a kind of remuneration.

Non-Financial Compensation
Remuneration also includes nonfinancial benefits.
For example, Natalie get a yearly salary as a financial benefit for her work
but she also gets nonfinancial benefits, like:

 10 days of vacation
  5 personal days
 5 sick days
 Health insurance coverage

Difference between Remuneration and Compensation

The term "remuneration" means compensation or pay, but it has a

broader meaning than just basic pay. It can also include not just base salary
or bonuses but commissions and other payments, as well as deferred
compensation or benefits paid under the terms of an employment contract.

In general usage language compensation and remuneration are used

interchangeably but from the legal perspective there is difference between
payment of compensation and payment of remuneration to the employee.
 Performance Linked Career Planning

Career Management: Career Planning. Development planning is a

process designed to help you to: Think through your job/career goals. Focus
on developing knowledge and skills for your current position and for future
job opportunities.
Sample career plan
 Training in vocational schools, related on-the-job experience or an
associate's degree. Some require a bachelor's degree.
 Excellent communication skills.
 Critical Thinking.
 Being able to monitor and assess situations.
 Time management.
 Service oriented.
 Learn strategies and procedures quickly and precisely.
 Writing skills.

Example

Every employee has a desire to grow and scale new heights in his workplace
continuously. If there are enough opportunities, he can pursue his career
goals and exploit his potential fully. He feels highly motivated when the
organization shows him a clear path as to how he can meet his personal
ambitions while trying to realize corporate goals.

Unfortunately, as pointed out by John Leach, organizations do not pay

adequate attention to this aspect in actual practice for a variety of reasons.
The demands of employees are not matched with organizational needs; no
effort is made to show how the employees can grow within certain limits, what
happens to an employee five years down the line if he does well, whether the
organization is trying to offer mere jobs or long-lasting careers, etc. When
recognition does not come in time for meritorious performance and a certain
amount of confusion prevails in the minds of employees whether they are ‘in’
with a chance to grow or not, they look for greener pastures outside. Key
executives leave in frustration and the organization suffers badly when
turnover figures rise. Any recruitment effort made in panic to fill the vacancies
is not going to be effective. So, the absence of a career plan is going to make
a big difference to both the employees and the organization. Employees do
not get right breaks at a right time; their morale will be low and they are
always on their toes trying to find escape routes.

Career planning and the performance management process

You are responsible for your own career. It is important to master a few
toolsthat will help you in setting your future goals and planning to achieve
them. Equally important is the manner in which the company assesses your
contribution andperformance.
 Performance Linked Promotion Policy

Introduction:

After the employees have put in around 1 year of service, performance

appraisal is organized in order to check their performance. On the basis of
these appraisals, future promotions, incentives, and increments in salary are
decided.

Promotion:
Promotion is vertical movement of an employee within the organisation. In
other words, promotion refers to the upward movement of an employee
from one job to another higher one, with increase in salary, status and
responsibilities. Promotion may be temporary or permanent, depending
upon the needs of the organisation.

What is promotion policy?

A set of rules and guidelines set forth by a company or organization that

outlines how employees are to interact with potential customers in
the promotion of a good or service.

Types of Promotion:

Promotion given to employees in an organisation can be classified into three

types:

1. Horizontal promotion:

When an employee is shifted in the same category, it is called ‘horizontal

promotion’. A junior clerk promoted to senior clerk is such an example. It is

important to note that such promotion may take place when an employee
shifts within the same department, from one department to other or from
one plant to another plant.

2. Vertical Promotion:

This is the kind of promotion when an employee is promoted from a lower

category to lower category involving increase in salary, status, authority and

responsibility. Generally, promotion means ‘vertical promotion’.

3. Dry Promotion:
When promotion is made without increase in salary, it is called ‘dry
promotion’. For example, a lower level manager is promoted to senior level
manager without increase in salary or pay. Such promotion is made either
there is resource/fund crunch in the organisation or some employees hanker
more for status or authority than money.

The following characteristics make a promotion policy as sound and

good policy:

1. It must provide equal opportunities for promotion across the jobs,

departments, and regions.

2. It must be applied uniformly to all employees irrespective of their

background.

3. It must be fair and impartial.

4. The basis of promotion must be clearly specified and made known to the
employees.
5. It must be correlated with career planning. Both quick (bunching) and

delayed promotions must be avoided as these ultimately adversely affect the

organisational effectiveness.

6. Appropriate authority must be entrusted with the task of making final

decision.

7. Promotion must be made on trial basis. The progress of the employee

must be monitored. In case, the promoted employee does not make the

required progress, provision must be there in the promotion policy to revert

him/her to the former post.

8. The policy must be good blending of promotions made from both inside
and outside the organisation.

Promotion can be made on various bases. Following are the major

ones:
1. Seniority i.e., length of service

2. Merit, i .e., performance

3. Educational and technical qualification

4. Potential for better performance

5. Career and succession plan

6. Vacancies based on organisational chart

7. Motivational strategies like job enlargement.

8. Training

As a matter of fact, no single basis of promotion is acceptable and applicable

to all organisations. Every basis has its strengths and weaknesses. For

example, while promotion on the basis of seniority gives satisfaction to the

senior employees, it causes frustration to the talented ones.

Similarly, promotion based on merit motivates competent employees to

work hard while trade unions oppose it on the justification of its subjectivity.

In India, promotion in the government departments is made on the basis of

seniority of the employees. In case of private organisations, merit is

generally used as a basis for promoting employees. Here, the promotion

policy is to promote the best one available.

Employee Promotion
If the employee is working hard, addressing all tasks expected and
performing beyond expectations, the employer may give the employee a
promotion as a sign of excellence. The promotion may indicate that the
employee is ready for more responsibility in the company and is mature
enough to play a larger role in the business. A promotion may not be the
result of any positive employee performance review, as the employer may
not have that option each time.

Job promotion. The advancement of an employee within a company position

or job tasks. A job promotion may be the result of an employee's proactive
pursuit of a higher ranking or as a reward by employers for good performance.
Typically is also associated with a higher rate of pay or financial bonus.

When can managers consider employees for promotion?

Promotions may occur when:
  A job opening is advertised internally as well as externally.
 A position opens unexpectedly and our company wants to fill it from
within.
 An employee has consistently good performance evaluations and their
manager deems them ready for the next step in their career.
 An employee acquires a credential (licensure, degree etc.) that allows
them to advance (e.g. a Licensed Practical Nurse becoming a Registered
Nurse.)

Also, our company has an updated career plan that indicates each
employee’s possible career path. Managers should take this plan into
account when deeming to promote or advance their team members.

Process for standard promotions

Our company will establish a promotion review process every [end of year.]
During this process, managers may consider selecting employees to move to
a higher-level position, or a position that better matches their skills and
aspirations. Spontaneous promotions may also occur if a business need
arises.

Managers should follow this process:

1. Meet with employees to talk about their career goals and/or aspirations for a
promotion. Managers should create career plans for their team members.
2. Identify opportunities to promote one or more team members, if applicable
(by either filling vacancies creating new jobs or enhancing job titles.)
3. Discuss the promotion with [HR/ direct supervisor/ department head] to
receive approval. Managers should also ask HR about the new position’s
salary range and any new benefits they should present to their team
member.
4. Arrange a meeting with the employee to determine whether they’d be happy
with this career move.

Managers must keep detailed records of the process to support their

decisions to promote employees. These records may also come in handy if
other employees find the decision unfair or sue the company.

Internal job posting

We encourage hiring managers to post job openings internally. Hiring teams
may post the job internally for a period of time before they post externally
or post at both places at the same time. Internal candidates may be given
 priority in the hiring process since they’re already familiar with our culture
and expectations.

Job postings should mention if the promotion involves relocation.

Discrimination against protected characteristics is prohibited both for internal
and external hiring decisions.

Managers who post job openings internally should:

1. Consider all applications equally, based on their predetermined

requirements.
2. Determine whether an internal candidate has the skills to perform the job.
3. Examine recent performance evaluations of internal candidates.
4. Interview qualified internal candidates if necessary.
5. Inform candidates whether they were selected for promotion. After the
employee has accepted the job, hiring managers should inform HR and the
employee’s current supervisor, if appropriate.
6. Keep records of the application review process and note the criteria with
which they rejected/hired an internal candidate.

Managers may often choose to expand employees’ duties, authority and

autonomy without promoting them directly. For example, a salesperson may
become a team leader and a junior coder may begin participating in
engineering operations.

These changes may not always come with a formal title change. Employees
may be awarded a higher salary, bonuses or stock options. The new benefits
depend on the position and are at the immediate supervisor’s discretion.

Managers should keep an updated promotion plan in their team members’

file and discuss future career moves during performance reviews.