Performance and Talent Management

Submitted to- Prof. Praveen Kamath

Name-Avanish Kumar Reg. No. FPB0911/018

Performance and Talent Management

Q1- Discuss performance management and potential management in the context of emerging markets? Distinguish between the two?

Ans. Performance management: - Performance management is a strategic tool used to promote an effective organization. It ensures that individual employees¶ efforts are focused on the priorities and strategies set out in the corporate and departmental business plans. It directs efforts towards effectiveness and away from merely being busy Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on performance of the organization, a department, processes to build a product or service, employees, etc. Information in this topic will give you some sense of the overall activities involved in performance management.

In emerging markets there is a big competition to hire best talent available in market so companies give their best to achieve the available talent in the market. They give their level best to achieve their organizational goals, as well as individual goals. Performance management gives an organization a vast source of achieving their personal goals. Potential Management: - Change is occurring at an accelerating rate and this is the centre around which we will discuss performance management system. Traditionally the two concepts performance management and performance appraisals were treated as one and the same thing, however not the scenario is completely different. Performance Management is not just HRD technique, it is not just evaluating the performance of an employee once a year, it is the tool in the total performance Performance and Talent Management Page 2

Performance and Talent Management
management system. Earlier there was no need to check performance against goals set but with the changing business environment there is the emergence of a great need to have a performance management system. Performance Management system is a n integrated system of linking business objectives /goals with Key Results Areas (KRA) of Managers, only then does it become a management tool. The system should be futuristic; the system should be communicated and explained to all heads and employees. The performance system should be facilitative, aiming to help Managers to enhance their performance and leave some room for discretion. The system should encourage continuously earning and development. Performance Management System implementation process includes the following steps a. Goal Setting b. Key Result Areas c. Actions d. Self Appraisals e. Joint Review f. Management Action Difference between both of them is very much evident in several places in most of the places they seems like very closely related to each other in performance management we take care of present situation where we have to take care of the performance of employees their interest towards work as well as their dedication in this way we can find out how they are performing a certain task and through analysis and expertise we enhance performance of employees by performance management. Whereas in potential management we think of a future centric approach. We think of our future goals and design the work force and develop it in such a way so that the organization will be benefited. It takes care of all futuristic standards as:Goal setting, Key Result Areas, Actions etc. These all standards helps us to analyze and forecast the future needs and demands to make an organization successful

Q2- recruitment and selection have gone through a significant change in the context of IT/ITES organization. Explain giving example of an organization? Ans. Yes, Recruitment and selection really have gone a long way and it¶s not as simple as it was in earlier days. In IT/ITES companies it has changed as well, these days companies look in people technical efficiency as well as Is the person in team Player or not? Willing to work in different shifts or not Etc. these qualities are very important and evident in these organizations and they are searching talents with such quality.

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The following steps have been taken in IT/ITEs Companies Planning and recruitment
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Developing personnel plans requires three forecasts: one for personnel requirements, one for the supply of outside candidates, and for the supply of inside candidates. To predict the need for personnel, first project the demand for the product or service. Net project the volume of production required to meet these estimates. Finally, relate personnel needs to these production estimates. Once personnel needs are projected, the next step is to build up a pool of qualified applicants. We discussed several sources of candidates, including internal sources (or promotion from within), advertising, employment agencies, executive recruiters, college recruiting, the internet, referrals and walk-ins. Remember that it is unlawful to discriminate against any individual with respect to employment because of race, color, religion, sex, national origin or age.

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Employee testing and selection Selection and testing of prospective employees is of great importance. There are three main reasons why the process of selection and testing is crucial: Performance. Employees with the right level of performance should be selected for the job. Employees who don't have the right level of skills or who are abrasive or obstructionist will not perform effectively. Cost. Effective screening is important because it is costly to recruit and hire employees. It is estimated that for an executive who earns $60,000 a year the cost of recruitment is $47,000. This takes into consideration the cost of search fees; interviewing time, reference checking, and travel and moving expenses. The cost of hiring non-executive employees where not as proportionally high is quite significant.

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Concepts of validity and reliability

Validity refers to the accuracy with which the test, interview etc measures what it is supposed to measure or fulfills the function that it was designed to achieve. Criterion validity - a type of validity based on showing that scores on the test (predictors) are related to job performance (criterion). Content validity - a test that is content valid is one in which the test contains a fair sample of the tasks and skills actually needed for the job in question.

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`Reliability' refers to the characteristics that refer to the consistency of scores, obtained by the same person; when retested with the identical or equivalent test. If a person scored 90 on an intelligence test on Monday but on Thursday scored 130 then this test is said to be unreliable

Test validation techniques
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Analyze the job. The first task would be to analyze the job and write a job description and job specification. Here list the human traits and skills that are required for job performance. For example, should the employee be aggressive? Is shorthand required? Will the candidate be required to assemble small, detailed components? Their requirements are the predictors of job performance. Choose the test. Choose the tests that measure the attributes (predictors) important for job success. This choice is usually based on experience, previous research and `rules of the thumb' and usually more than one test will be used, as a test battery aimed at measuring a variety of possible predictors such as extroversion, aggressiveness, and numerical ability.

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Testing guidelines - best practices

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Use tests as supplements. Do not use test as the only selection techniques use them as supplements to interviews and background checks. Tests are not infallible and in certain cases do not account for even 25% of the overall weight given in an applicants true ability to perform successfully on the job. Validate the tests. Both legal requirements (not in many countries) and good practices demand that tests be validated before they are used in evaluating a prospects ability to perform well on the job. The fact that similar test have proven successful in the same industry is not adequate. Analyze your current hiring and promotion standards. Issues such as the number of minority community applicants being rejected, gender bias, use of specific standards etc should all be reviewed to ensure that the selection and testing process is fair.

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Psychometric Model of Testing Selection and assessment research centers have heavily relied on psychometric testing where other types of test were inadequate. The model assumes that the job can be divided into discrete tasks and that each task can be graded on the competence, knowledge, attitude etc that is required for the job and that these factors will predict job performance. Further the model seem to value individualism (individual values taken to predict individual performance), managerialism, and utility -though other factors (such as bias, intolerance of minorities) too are also taken into account Performance and Talent Management Page 5

Performance and Talent Management

Interviewing candidates
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There are several basic types of interviews: situational, non-directive, structured, sequential, panel stress and appraisal interviews. All interviews can be classified according to content, structure, purpose and method of administration. Several factors and problems can undermine the usefulness of an interview. These are making premature decisions, letting unfavorable information predominate, not knowing the requirements of the job, being under pressure to hire, not allowing for the candidate order effect, and sending visual cues to telegraph enthusiasm. The five steps in the interview include: plan, establish rapport, question the candidate, close the interview and review the data. Guidelines for interviewers include: use a structured guide, know the requirements of the job, focus on traits that you can more accurately evaluate (like motivation), let the interviewee do most of the talking, delay your excision until after the interview

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Q3- Difference between balance scorecard and Hr score card? Ans. Balance Score Card:-The balanced scorecard (BSC) is a strategic performance management tool - a semi-standard structured report supported by proven design methods and automation tools that can be used by managers to keep track of the execution of activities by staff within their control and monitor the consequences arising from these actions. It is perhaps the best known of several such frameworks (for example, it is the most widely adopted performance management framework reported in the annual survey of management tools undertaken by Bain & Company, and has been widely adopted in English speaking western countries and Scandinavia in the early 1990s). Since 2000, use of Balanced Scorecard, its derivatives (e.g. performance), and other similar tools (e.g. Results Based Management) have become common in the Middle East, Asia and Spanish-speaking countries also. The HR Scorecard:-argues that HR measurement systems must be based on a clear understanding of organizational strategy and the capabilities and behaviors of the workforce required implementing that strategy. Thus, an HR Scorecard is a mechanism for describing and measuring how people and people management systems create value in organizations, as well as communicating key organizational objectives to the workforce. It is based on a strategy map ± which is a visual depiction of ³what causes what´ in an organization, beginning with people and ending with shareholder or other stakeholder outcomes. The HR Scorecardis built around a series of examples and a process that helps managers to do this work in their own firms ± designing an HR architecture that relentlessly emphasizes and reinforces the implementation of the firm¶s strategy.

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The HR Scorecard has five key elements:
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The first element is what we called Workforce Success. It asks: Has the workforce accomplished the key strategic objectives for the business? The second element is we called Right HR Costs. It asks: Is our total investment in the workforce (not just the HR function) appropriate (not just minimized)? The third element we describe as Right Types of HR Alignment. It asks: Are our HR practices aligned with the business strategy and differentiated across positions, where appropriate? The fourth element is Right HR Practices. It asks: Have we designed and implemented world class HR management policies and practices throughout the business? The fifth element is Right HR Professionals. It asks: Do our HR professionals have the skills they need to design and implement a world-class HR management system?

Benefits of the HR Scorecard: The HR Scorecard offers the following benefits:  It reinforces the distinction between HR do-ables and deliverables: The HR measurement system must clearly distinguish between the deliverables that influence strategy implementation and doables that do not. Policy implementation is not a deliverable until it has a positive effect on the HR architecture and creates the right employee behaviors that drive strategy implementation. An appropriate HR measurement system will encourage HR professionals to think both strategically as well as operationally.  It enables cost control and value creation: HR is always expected to control costs for the firm. At the same time, HR has to fulfill its strategic goal, which is to create value. The HR scorecard helps HR professionals balance the two and find the optimal solution. It allows HR professionals to drive out costs where appropriate, but at the same time defend investments in intangibles and HR by outlining the benefits in concrete terms. 

It measures leading indicators: Just as there are leading and lagging indicators in the overall balanced performance measurement system, there are drivers and outcomes in the HR value chain as well. It is thus important to monitor the alignment of the HR decisions and systems that drive the HR deliverables. Assessing this alignment provides feedback on HR¶s progress towards these deliverables and lays the foundation for HR¶s strategic influence.

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Q4- Best practices for talent retention in large global organizations? Explain giving examples? Ans. Talent retention for organizations is very important from very beginning companies try to take the best talent available in market and retaining them is very difficult because every competitor must have full knowledge of that and they try there level best to acquire that talent.

The role of HR in managing the problem of retaining talent Implementing a solution for the problem of local talent retention lies in the hands of the global HR professionals. They need to focus on the common goal of creating and managing a local team of people who can effectively contribute to the global business. HR needs to be strategic in servicing both the overall needs of the global organization and the specific needs of the local culture ± they must determine the extent to which policies should be implemented worldwide or adapted to match local circumstances. To create an efficient and loyal team of local staff, HR must consider adapting policies in terms of recruitment, professional development and performance management, bearing in mind the ever-changing nature of international operations.

The following are few best practices to retain employees
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Higher salaries: pay is the number one area in which employees seek change. You can foster a work environment in which employees feel comfortable asking for a raise. Internal pay equity: employees are concerned particularly with pay compression, the differential in pay between new and longer term employees. In organizations, with the average annual pay increase for employees around 4%, employees perceive that newcomers are better paid ± and, often, they are.

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Benefits programs, particularly health and dental insurance, retirement, and Paid Time Off / vacation days: specifically, many employees feel that their health insurance costs too much, especially prescription drug programs, when employers pass part of their rising costs to employees. Over-management: Employees often defined by interviewees as: ³Too many chiefs, not enough Indians.´ Workplaces that foster employee empowerment, employee enablement, and broader spans of control by managers, will see fewer complaints. A popular word, micromanaging, expresses this sentiment, too.

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Pay increase guidelines for merit: Employees believe the compensation system should place greater emphasis on merit and contribution. Employees find pay systems in which all employees receive the same pay increase annually, demoralizing. Such pay systems hit the motivation and commitment of your best employees hardest as they may begin asking what¶s in this for me? As you adopt a merit pay system, one component is education so that employees know what behaviors and contributions merit additional compensation. Employees who did not must be informed by their manager about how their performance needs to change to merit a larger pay increase. Human Resources department response to employees: The Human Resource department needs to be more responsive to employee questions and concerns. In many companies, the HR department is perceived as the policy making, policing arm of management. In fact, in forward thinking HR departments, responsiveness to employee needs is one of the cornerstones.

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Favoritism: Employees want the perception that each employee is treated equivalently with other employees. If there are policies, behavioral guidelines, methods for requesting time off, valued assignments, opportunities for development, frequent communication, and just about any other work related decisions you can think of, employees want fair treatment.

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Communication and availability: Let¶s face it. Employees want face-to-face communication time with both their supervisors and executive management. This communication helps them feel recognized and important. And, yes, your time is full because you have a job, too. But, a manager¶s main job is to support the success of all his or her reporting employees. That¶s how the manager magnifies their own success. Workloads are too heavy: Departments are understaffed and employees feel as if their workloads are too heavy and their time is spread too thinly. I see this complaint becoming worse as layoffs; the economy; your ability to find educated, skilled, experienced staff; and your business demands grow. To combat this, each company should help employees participate in continuous improvement activities.

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10. Facility cleanliness: Employees want a clean, organized work environment in which they have

the necessary equipment to perform well.

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Q5- Explain different selection tools for volume hiring? Ans. Five different Selection tools for volume hiring: 1. Newspaper Ads: Here it is easy to place job ads without much of a lead time. It has flexibility in terms of information and can conveniently target a specific geographic location. On the negative side, newspaper ads tend to attract only those who are actively seeking employment at that point of time, while some of the best candidates who are well paid and challenged by their current jobs may not be aware of such openings. As a result, the company may be bombarded with applications from a large number of candidates who are marginally qualified for the job ±adding to its administrative burden. To maintain secrecy for various reasons (avoiding the rush, sending signals to competitors, cutting down expenses involved in responding to any individual who applies, etc.), large companies with a national reputation may also go in for blind-box ads in newspapers, especially for filling lower level positions. 2. Campus Recruitment: It is a method of recruiting by visiting and participating in college campuses and their placement centers. In view of the growing demand for young managers, most reputed organizations (such as Hindustan Lever Ltd., Proctor & Cable, Citibank, State Bank of India, Tata and Birla group companies) visit IIMs and IITs regularly and even sponsor certain popular campus activities with a view to earn goodwill in the job market. Advantages of this method include: the placement centre helps locate applicants and provides resumes to organizations; applicants can be prescreened; applicants will not have to be lured away from a current job and lower salary expectations. 3. Advertisements: These include advertisements in trade, professional and technical journals; radio and television; etc. in recent times, this medium has become just as colorful, lively and imaginative as consumer advertising. The ads generally give a brief outline of the job responsibilities, compensation package, prospects in organizations, etc. this method is appropriate when (a) The organization intends to reach a large target group and (b) The organizations want a fairly good number of talented people ± who are geographically spread out. To apply for advertised vacancies let¶s briefly examine the wide variety of alternatives available to a company ± as far as ads are concerned. 4. Private Employment Search Firms: As search firm is a private employment agency that maintains computerized lists of qualified applicants and supplies these to employers willing to hire people from the list for a fee. Firms like Arthur Anderson, Boble and Hewitt, ABC consultants, SB Billimoria, KPMG; Ferguson Associates offers specialized employment-related services to corporate houses for a fee, especially for top and middle level executive vacancies. At the lower end, a number of search firms operate ± providing multifarious services to both recruiters and the recruitees.

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5. Job Fairs: This has become one of the successful methods of selection tools for volume hiring where people of different qualification, colleges and even the work-ex and fresher could come to such job fairs to give their interview and get hired in many participating company. This reduce cost and effort as the cost is shared by lots of company for the rent of the location and it also benefited by attracting lots of job seekers under one roof. 6. Employment Exchanges:As a statutory requirement, companies are also expected to notify (wherever the Employment Exchanges Act, 1959, applies) their vacancies through the respective Employment Exchanges, created all over India for helping unemployed youth, displaced persons, ex-military personnel, physically handicapped, etc. AS per the Act all employers are supposed to notify the vacancies arising in their establishments form time to time ± with certain exemptions ± to the prescribed employment exchanges before they are filled. The Act covers all establishments in public sector and Non agricultural establishments employing 25 or more workers in the private sector. However, in view of the practical difficulties involved in implementing the provisions of the Act (such as filing a quarterly return in respect of their staff strength, vacancies and shortages, returns showing occupational distribution of their employees, etc.) many organizations have successfully fought court battles when they were asked to pick up candidates from among those sponsored by the employment exchanges.

Source:-

www.peoplematters.in
www.hrguide.com

http://humanresources.about.com/od/glossaryp/g/perform_mgmt.htm http://www.love2reward.co.uk/rewards/info-centre/performance-management-cycle.jsp http://www.hrfolks.com http://www.teconline.com/www/bestpra..._retention.asp

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