Module: Talent Management

Summary: Session 5 and 6

Performance Management is a continuous process of identifying, measuring, developing
performance of individuals and teams and aligning it with the strategic goals of the organization.
Performance Management Process essentially involves the following steps:
• Establishing performance standards
• Set mutually acceptable measurable goals
• Measurement of actual performance
• Comparing the actual performance against the set standards
• Providing feedback
• Future course of action
The two key ingredients of job analysis process – job description, job specification provides the
basis for PMS.
The tasks and duties described in JD help in measuring results in terms of KPA (Key
performance areas or broad level duties) and KPI (Key performance indicators or
specific goals).
KSAs / competencies indicated in Job specifications help in measuring behaviour trait
using rating scales.
Two broad categories of systems used in performance measurement are:
Absolute systems – essay appraisal/narratives, critical incident technique, checklists,
Relative/comparative systems – individual ranking, paired comparison, forced ranking
The two major types of rating scales are adjective rating scales (ARS), Behaviourally Anchored
Rating Scales (BARS)
Construction of BARS involves:
• Identification of KSAs from Job specification
• Listing the competencies
• Identifying behavioural indicators for each competency
• Attaching a rating scale to the behavioural indicators
The following biases/errors may hamper PMS
• Leniency error
• Halo effect
• Similarity error
• Central tendency
 • Fundamental attribution error
Forced ranking system (Bell Curve)
Forced distribution or stack ranking systems are used with the objective of reducing the errors of
leniency, severity and central tendency. It is assumed that when supervisors are mandated to rank
their team members based on a pre-decided percentage they will be more objective in their
assessment and hence will not commit the afore-mentioned errors. However, perceived
challenges / weaknesses of forced distribution systems include (a) Rigidity in rankings (2) the
apples-to-oranges problem, (3) does not take into account external factors that affect
performance etc.
Case: Vitality Health
The case highlights the significance of performance management systems to the organizational
strategy as the firm slowly shifts focus towards costs and operational efficiency. The case also
reports high attrition among top performers owing to dissatisfaction with the absolute rating
type of performance measurement systems. Forced ranking systems are positioned as the
solution to supervisory biases. However, challenges with forced ranking have already been
enumerated earlier.
Summary of PMS Interventions and Limitations

Issues Solution Risk / Caution Options

Goal Clarity MBO + KPI Low benchmarks Skip level approvals (but may no
(SMART) longer be “mutual”) (time intense)

Subjectivity BARS Time intense ARS (but could lead to errors and
subjectivity)

Comprehensive definitions?

Demanding on managers

Supervisor Forced rating “Forces” the rating / Apples to Use for generic KSAs / Potential
reluctance & oranges

Rating biases Rotation / Gaming

360 degree “Mutual” understanding / Developmental purposes only

retribution fear

Familiarity of raters and Raters rate on different KSAs

parameters (provided condition above)
Summary: Session 7- Training and Development
Training is the process of enhancing the Knowledge, Skills and Attitude of employees required
to perform the job. It is the outcome of a formal Training Needs Analysis (TNA). Development
refers to the process of enhancing skills required for future roles.
Training Needs Analysis includes

- Organizational assessment – an assessment of the KSAs required at different roles in the

organization
- Task Analysis – assessment of KSAs required for specific tasks
- Person analysis – assessment of KSA gaps in individual employees
Evaluation of training programs are done

- Training validity - Linkage between training (content and pedagogy) and learning /
instructional objectives
- Transfer validity – Linkage between learning and application / performance
- Intra-organizational validity – Whether the training is specific to the organization but
generic to jobs within the organization
- Inter-organizational validity – Training is for generic KSAs
Backwoods Mail Order Company
The caselet examines the training program for customer order representatives. The objective of
the exercise is to design a training program in terms of content, schedules and pedagogy. Groups
also had to propose methods to evaluate the training program.