Talent Management: Benefits, Performance Appraisal, and Employee Engagement

This article discusses the benefits of developing an HR function, the role of performance management, and how it can improve employee commitment and engagement. It includes an evaluation of different performance appraisal systems and recommends the 360-degree feedback method for Steel Company. The article also highlights the importance of continuous performance management in improving communication, productivity, and employee development.

Talent Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Discussing and evaluating the benefits for Steel company for developing their own HR
function.......................................................................................................................................3
TASK 2............................................................................................................................................5
a. Evaluating the role of performance management system.......................................................5
b. Evaluation of three different types of performance appraisal system and identifying the
most suitable...............................................................................................................................5
TASK 3............................................................................................................................................6
Explaining the ways in which performance management system can be used in improving
employee commitment and engagement within the company....................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The talent management is being defined as the anticipation of the human capital which is
being required within the company and planning for meeting those requirements. For the
business to be successful it is very necessary that proper talent management is being
implemented the so that there is no shortfall of the human capital. The current study is based on
Steel Company which is small manufacturing company being run by the owner and the manager.
The current study is based on discussing an evaluating the benefits which company can have by
developing their own a job function. In the presence study analysis of the role of performance
management system will be undertaken. Further three different types of performance appraisal
techniques will be evaluated. In the end the performance management system and its uses for
improving the employee commitment and engagement within Steel Company will be included.
TASK 1
Discussing and evaluating the benefits for Steel company for developing their own HR function.
For developing the companies own HR functions it is very beneficial and suitable for the
company. This is particularly because of the reason that in case the company is having their own
HR function then they can take any decision in time. There are many different benefits which
Steel Company can enjoy by having their own HR function. These benefits are as follows-
 The first and foremost benefit involves development of better organisational culture. This
is particularly because of the reason that when HR is within the company then in case of
any conflict or issue the HR can manage it effectively. Hence this results in development
of good organisational culture which motivates the employees to work in better and
effective manner.
 Along with this another crucial benefit with Steel Company can enjoy by having their
own HR function is the effective planning for the management of workforce. In case
Steel companies having an affective HR system, then in case of any shortfall of
employees they will be recruited on urgent basis (Ansar and Baloch, 2018). Hence this
will ensure that there is never any place that is vacant within the company and company
is operating in full capacity.

 Along with this another benefit for having their own HR system within the company is
the effective training and development. This is particularly because of the reason that
when the company have their own HR system then the training can be provided to the
employees effectively and at any time (Benefits of Human Resource Management and
Why It Is Important for Small Businesses, 2022). In case the companies not having the
HR within the business then they have to hide the expert and professionals and then
provide them training. And like in the case when companies having the own HR or they
can plan the training and development session at any point of time.
 In addition to this having the own HR system will assistive Steel company in order to
manage the each other data and analytics. This is another benefit of having the own HR
system into practice. When the company is having their own HR system then the data
relating to the HR will be managed in proper and effective manner. Hence as a result of
this company will be able to manage every data in proper an effective manner. In case
there is requirement of any data then it will be easily available with the HR and strategies
can be made according to it.
 Moreover along with this, another benefit of having the own HR function within the
company for Steel company is employee development and engagement. This is
particularly because of the reason that when the companies having their own HR then
they will work in direction of benefit of the company. Thus as a result of this the HR of
Steel company will be continuously working on improving employee engagement and
there development will stop on the employee will get the development then they will
work in proper manner for attaining the objectives of the business.
 Along with this another benefit which still company can enjoy because of own age of
function is proper performance management. This is very essential and crucial function
of the HR which will assist Steel Company in managing its own performance and
motivating the employees to a great extent (Kravariti and Johnston, 2020). In case
performance management will be good then it will be motivating employees to work in
proper and effective manner. Thus this will assist them in motivating the employees and
eventually it will result in attainment of objectives of business.

TASK 2
a. Evaluating the role of performance management system
The performance management is being defined as the mechanism which assists the
company travelling the performance of the employee’s inconsistent and measurable manner. In
case the performance management system is not present effectively then it will be affecting the
performance of the company. The step performance management place a crucial role within the
Steel Company which is as follows-
 The first major purpose for which performance management is essential is to analyse the
growth and development of the company and the employees is well. This is very
necessary because in case employees will not be provided any appraisal or development
then they will not be working within the company effectively (De Boeck, Meyers and
Dries, 2018). Management is used in order to evaluate the growth and development of the
employee. This is very necessary because with help of the employees growth and
development only can analyse growth and development. In case the employer will be
growing faster than it implies that company is working in better position.
 For the more another role of performance management within the company is to
encourage productivity and improvement within the working pattern. In case there will be
continuous performance management then employees will be motivated to work in better
manner and eventually it will result in better working of the company. Hence this will
ultimately improve the objectives of the business and it will be attend in proper manner.
b. Evaluation of three different types of performance appraisal system and identifying the most
suitable
There are different types of performance appraisal system which sea company can use an
order to motivate the employees. The different types of performance management system which
are available to Steel Company are as follows-
 The first method involves straight ranking appraisal. This is a type of method where in
every employee is being ranked from the best performance to the worst performance.
Hence according to this the appraisals are being provided that is the person who is
working good is provided good benefits and on the other side the employee who is not
working efficiently will not be provided with any appraisal.

 Another performance appraisal tool involves use of behaviourally anchored rating scale.
This is an approach where in the individual person is being evaluated between the
behaviour and the trait based appraisal (Claus, 2019). This method aims to combine the
benefits of both the methods and is helpful in evaluating the performance of the
employees and better and effective manner.
 In addition to this another method for performance appraisal within the company can be
360 degree appraisals. This is a type of method where in feedback is being taken from
each and every employee and then in accordance to the feedback the appraisal and
benefits are being provided to the employees. In case the feedback is positive then
benefits are being provided. On the other side in case the feedback is negative then
punishments are being provided.
That's with the above evaluation it can be recommended to steal company that they must comply
with the 360 degree feedback a phrasal method. This is particularly necessary because it includes
taking views of every employee and then provides the benefit of the punishment accordingly.
TASK 3
Explaining the ways in which performance management system can be used in improving
employee commitment and engagement within the company
The performance management is very crucial for the success of any company. This is
particularly necessary because performance management includes evaluation of performance of
the employees and accordingly provide them the benefits and drawback so that the performance
can be managed and sustained effectively. The performance management is important in
improving in engaging the employee commitment and engagement. This is very necessary for
the reason that in case performance management will not be implemented by Steel Company
then the employees will not be happy and satisfied (Gallardo-Gallardo, Thunnissen and Scullion,
2020). Hence it will be affecting the working efficiency of the company and the employees as
well. The performance management includes continuous performance appraisal and providing of
benefits to the employees. Hence when the benefits will be provided to the employees then they
will be committed towards the company to a great extent. Thus the use of continuous
performance management definitely improves the commitment of the employee and engagement
towards the company.

In addition to this it can stated that performance management system also involves
providing the actual feedback to the employees that how they are working and how the
improvement can be taken place within the performance. This evaluation of the performance of
employee motivates them to work in proper and effective manner. Also the feedback provides a
base to the employees for improving the performance (Hasanpour and et.al., 2019). Thus when
the company will be providing the benefits of improving the performance and personal
development of the employees then ultimately they will be engaged towards the company. Hence
as a result of this the objectives of the business will be attained in proper and effective manner
and will be improving the performance of the company on overall basis.
Along with this the effective performance management system will be improving the
communication within the employees and the company. Hence as a result of prism the
communication within the employees and the employer will be good and effective. This
ultimately will improve the working efficiency of the employees and they will be more engaged
towards the company and its objective (Nasiri and Bageriy, 2020). Thus with help of this
performance of the employees will be improved and ultimately this will increase the interest of
employees towards the company and objectives will be attained effectively.
Moreover and addition to this the performance management provides the major benefit to
the Employees relating to the performance appraisal. In case the appraisals of the performance
are good for the employees then they will be more committed towards the working of the
company. Ends as a result of this engagement and commitment of the employee will be high
towards the company and its objectives. Hence this will be improving the performance of the
employees along with the performance of the company. When the employee will be highly
committed towards the company and its objectives will be attained effectively.
In the end it can be stated that performance management plays a crucial role within the
growth and development of employees and the company as well (Shahi and et.al., 2020). The
reason is that the employee performance management works in direction of providing benefits to
the employees and resultantly it increases the working efficiency of the employees and their
engagement and commitment towards the company.
CONCLUSION
In the end it is considered that managing the Talent within the companies very important
in order to improve the performance of the business. In case talent that is employees will not be

managed effectively then working will not be undertaken properly. The above report concluded
that the benefits of having the own HR system involving providing proper training performance
management maintaining of good organisational culture and many other. Further it was also
evaluated that role of performance management is very crucial and the most beneficial strategy
for Steel Company is 360 degree feedback. Further in the end it was analysed that performance
management system please a crucial role in improving the commitment and engagement of the
employees effectively.

REFERENCES
Books and Journals
Ansar, N. and Baloch, A., 2018. Talent and talent management: definition and issues. IBT
Journal of Business Studies. 14(2). pp.213-230.
Claus, L., 2019. HR disruption—Time already to reinvent talent management. BRQ Business
Research Quarterly. 22(3). pp.207-215.
De Boeck, G., Meyers, M.C. and Dries, N., 2018. Employee reactions to talent management:
Assumptions versus evidence. Journal of Organizational Behavior. 39(2). pp.199-213.
Gallardo-Gallardo, E., Thunnissen, M. and Scullion, H., 2020. Talent management: context
matters. The International Journal of Human Resource Management. 31(4). pp.457-473.
Hasanpour, A., and et.al., 2019. Designing Talent Management Model in the Banking Industry
Using Grounded Theory. Management Studies in Development and Evolution. 28(93).
pp.93-129.
Kravariti, F. and Johnston, K., 2020. Talent management: a critical literature review and research
agenda for public sector human resource management. Public Management
Review. 22(1). pp.75-95.
Nasiri, F. and Bageriy, M., 2020. The Relationship among Talent Management, Organizational
Intelligence and Entrepreneurship Tendency. The Journal of Productivity
Management. 13(4 (51) Winter). pp.173-193.
Shahi, T., and et.al., 2020. Behavioral Factors Affecting Talent Management: Meta-Synthesis
Technique. Iranian Journal of Management Studies. 13(1). pp.117-137.
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