Talent Management and Performance Review

The provided text focuses on a critical analysis of talent management practices within organizations. It delves into various aspects, including performance management systems, the psychological contract perspective, organizational justice, HRD practices, and the influence of underlying philosophies on talent management. The document emphasizes the importance of understanding context in talent management and highlights a pluralistic approach. Additionally, it touches upon global talent management principles and the role of decision-making in this field.

TALENT
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Argument debating use of individual versus team performance targets so as to maximise
firm's performance......................................................................................................................1
2. Explain how performance management system can be used improve employee development
and communications...................................................................................................................3
3. Explain how Steel Co can integrate performance management systems with other human
resource processes and why it is important.................................................................................6
4. Analyse the effectiveness of linking performance to financial reward...................................8
CONCLUSION ...............................................................................................................................9
REFERENCES................................................................................................................................1

INTRODUCTION
Performance management is an important task for each and every business corporation
because it assist in maintaining the work quality of current employee to ensure high efficiency in
working patterns in order to gain more satisfaction among clients (Cerdin and Brewster, 2014).
By managing performance, manger will be easily able to allocate tasks and activities to the
employees as per their talent and virtue (Talent management, 2017). Steel Co. is a small scale
enterprise employing approx. 65 employees within company. This firm is facing lots of problems
related to leadership and company is making just little profit which is not sufficient for small
scale enterprise to survive in marketplace (Stahl and et. al., 2012). This company has to appoint a
person who is able to control and handle the recent troubles going within organisation.
TASK
1. Argument debating use of individual versus team performance targets so as to maximise firm's
performance
Owner-manager of Steel Co. is facing lots of problems in the organization which is
related to performance of his workforce such as poor working quality, low commitment level,
lower payment scheme, lack of occupational skills among manpower of company which are
decreasing functionality of staff members etc. To get rid of these problems, owner-manager
appointed a divisional director who was further responsible to manage and administrate the
issues of firm. After all these activities, owner-manager assigned task and duties to divisional
directors. The owner-manager of company used to opt autocratic approaches of leadership but
the new division director involved new democratic style of leadership along with system of
team-based working for developing the internal working environment. Though, the new
strategies and plans were not proven as effective which left divisional director the option to take
assistance of business advisor to analyse the major issues within the whole programs organised
by him. (Kucherov and Zavyalova, 2012).
According to Divisional Director, providing individual targets are better than group goals
because these aims raised so many problems like duplication of activities, no proper allotment of
actions as per talent, some are working more and others are less, etc. To get rid of these
problems, divisional director said that he needs to allocate single targets to employees.
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As per view of functional directors that manager should allot individual targets instead of
group goals because single person's objectives are easy to met. As, worker knows that what he
suppose to do in which time frame. On the basis of case, director suggested many ways in which
individual targets are better than team goals because allotment of targets on single person is
easily measurable and if there is any flaw in working of workers then rectification action can be
taken in order to improve performance of associates. Newly appointed director delegate
individual duties then it will remove duplication of work and this result will further reduces cost
to organization and all actions will be done within time and this will save time.
On the other hand, owner manager was also right in promoting team goals and he said
that if group targets are not set then it will directly affect vision of association on negative basis.
If individual is keep doing his activities without getting information about company or his group
goals then task done by worker is worth less and team objectives allow an employee to work in
competitive environment and these group objectives are able in enhancing performance as well
as skills of worker. So in conclusion it is clear that individual goals should be set along with
team targets because personal and group aims are not different things even both of them are
complementary to each other.
So, according to divisional director; individual targets are better because it is helpful in
performance management, in setting best compensatory plan along with extra bonuses and
benefits and this action will further bring efficiencies in functionality of line staff members. A
proposal suggested by new director is that single targets should be set and it was written on
notice board with each member's objectives and previous target would be assess with current
working style.
After this argument, Divisional Director executed their new plan employing numerous
methods and techniques such as measuring performance to identify talent of employees i.e.
necessary for setting targets for personnel of organisation according to their capabilities. To
notify all manpower that what they need to do, divisional director has to make a work based
procedure. This tool is helpful in making evaluation of performance (Dries, 2013).
It is defined by divisional director that when a person works in a group which contains
friendly environment and in this a healthy competition is found which is helpful in enhancing
performance of workers as employees compare their functionality with other persons and to get
rewards more than other staff members, workers work hard which ultimately improves their
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working quality and profit of association. When manpower works with high efficiency then they
can produce extraordinary quality goods and services which aids Steel Co. in getting greater
profits and larger space at marketplace in comparison of business rivals because lacking of
profits is a basic problem of Steel Co. On the other hand when individual works independently
then he/she works hard on regular level and then workers do not have thinking of developing
their skills.
2. Explain how performance management system can be used improve employee development
and communications
According to Otley, (1999) Performance Management is a framework of assessing
functionality of individual as well as team by applying various tools and techniques in order to
find actual and accurate results of worker's working style.
There are various tools and techniques which is to be used in overall management of
functionality. Like:
 Performance appraisal is a prominent technique.
 Mission and vision statements are good options and these are also stated by owner as well
as director.
 Lean management approach is a better idea which reflects current performance of
employees.
 Key performance indicators and proposal of functional directors of placing targets on
notice board and these goals should be checked according to previous week's objectives
is a type of key performance indicators approach.
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(Source: Performance Management System, 2017)
Performance management system is very important tool used for measuring and
maintaining functionality of manpower as this provides information regarding employee's
working quality of steel Co. It help in discovering the root of problems due to which workers are
not performing their task in proper manner which is indicating to poor results of association.
After analysing the performance of worker and issues linked with their low working quality;
corrective actions should be taken by company on the basis of same. Examination of
functionality is important for Steel Co. because firm is having several issues like lack of
commitment level among employees because workers were forced to work in their shift and earn
per day not only necessary. But also, it is a requirement of firm to employ better activities which
ensures quality working that means all targets are to be covered within set duration of time.
Performance administration can be defined as system which is responsible for assignment of task
to workforce according to their talent and specialization. Divisional director must set
performance indicator or certain working standards which should be met by all personnel and
further, functionality will be evaluated on the basis of these standards (Gelens and et. al., 2013).
Performance Management System with HRM: there are some functions which is having
direct link with human resource functions:
Training & Development: Performance management system is a tool which helps
managers to assess functionality of workers so that an effective training and development
program could be taken for improvement. This skill enhancement session is compulsory for build
some specialisation in employees so that staff member could be able in catering need of clients.
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Illustration 1: Performance Management System,
2017

Compensating and rewarding: Performance management tells managers that who are
working well and then human resource head takes some actions like rewarding those who are
efficient and are working well. Rewards and compensations completely rely upon performance
of an junior executive.
An employee is an important part of association and Steel Co. should comprehend the value of
Integrated performance management system. Below are some:
 This tool is helpful for Steel Co. in deciding mission, vision, core objectives etc. for all
employees so that all staff member could get knowledge about what are the expectations,
company have from them.
 This technique further aids some benefits like better communication between
management and workers through skill enhancement program.
 Recognition is helpful in managing balance among feedbacks whether they are positive
or negative. So, this activity aids establishment of social environment, culture and
behaviour increasing engagement and retention of worker.
If a worker does not meet the set criteria of working then this mean that his functionality
is not up to mark and require dot be improved through undertaking needed activities. In this case,
to measure or to improvise working quality of their employee along with increasing their
contribution in the working activities, divisional director is accompanying different strategies
like team working, performance appraisal etc. In regard of solving those problems, he employed
some approaches and new leadership style and observed that there is a lot of problems in Steel
Co. As per the case study, working quality of workers is very low and there is high requirement
of improvement. Performance management tool need to be implemented in Steel Co. by
divisional director in order to overcome from the respected issues. The process of performance
management contains few steps which is required to be comply in order to meet the set outcome
by Divisional Director.
Firstly, divisional director determine some criteria that has to be achieved by all
individuals as well as teams. If they do not match this level, it means they are not on well
position of satisfying a customer. Lack of work efficiency can lead to fall in the company
position (Vaiman, Scullion and Collings, 2012). In order to enhance the working situation, this is
essential to recognise the major issues initially. The directors can perform the feedback or
employee performance evaluation techniques for understanding the major issues. With assistance
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of this, hired personnel can meet requirements of their company as well as this is downsizing
status of firm in industry. Divisional head also identified that there is no quality assurance
criteria due to less input of worker within their company (Thunnissen, Boselie and Fruytier,
2013). The major reason identified behind less involvement of employee is that owner-manager
was an autocratic leader who is not concerned about the need and wants of his staff members and
does not think that a training and development program is necessary for manpower.
When he hired a divisional director, a democratic leadership style was accompanied by
the new employer. Newly appointed personnel found necessity of performance management
system and he introduced this tool by setting some quality measures that a worker should meet
and after this. This is required to evaluate all results and must find out weak areas of
functionality that need improvement to improvise performance as well as profitability.
Performance management is essential in recognition of need of skill enhancement. This
technique also compare actual working quality with the set criteria and if these measures are not
match, it means people are not having accurate and adequate occupational talent to perform their
tasks and duties effectually. After measuring virtue of work head gives rewards to those who met
all criteria or reached nearest level of desired performance.
Use of Performance Management System in Communication:
Performance management mean to maintain a required level of working quality
by enhancing some skills and talents like communication talent, knowledge of new tools and
techniques etc. To improvise communication virtue, all information related to this context are
required which is provided by performance management system. After analysing need of skill
enhancement, newly appointed divisional director will conduct a training sessionj which is a part
of performance management and then he will analyse after training performance.
3. Explain how Steel Co can integrate performance management systems with other human
resource processes and why it is important
Integration with Human Resource Processes:
Administration of functionality is very important because this assist all other practices of
human resource as no decision can be made if performance is not measured. After evaluating this
divisional head made four teams with a team leader and these 4 TL has to report works manager
who will further report to head (Thunnissen, Boselie and Fruytier, 2013).But senior manager
does not assign any task to team leaders and they have a nominal responsibility of ensuring
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coordination among teammate. Basic human resource practices are allotment of as per
specialization, making a payment scheme, conflicts management, evaluating performance,
recruitment & selections, training & development program, team building etc.
After measuring functionality, director founded that there a lot of areas that has to be
improved for enhancing productivity of enterprise. To improvise the working quality, he must
provide some training and development program to their employees (Festing and Schäfer, 2014).
By enhancing all performance of workers, the director can allot task as per manpower's skills and
talents so that they could achieve all allotted targets in limited period of time. All targets can be
achieved by allotting works as per their skills so in regard of achieve the experted activities and
operations. This nature ultimately increases the self-motivation among workforce.
If some staff members are not working properly, then it is a right of divisional director to
demote or terminate those workers who are not performing well as well as can be replaced by
those who have high efficiency and morale to do work with sincerity. Here, performance
management system is integrated with recruitment and selection practice of HR. Team building
is an essential task that comprises of a required pool of talent that is necessary for completion of
task. But as this case addressed that Steel Co. is facing poor team building that is does showcase
any speciality. Hence, this is the responsibility of worker to accompany and manage the worker
accordingly or perform the activities as team working activities (Collings, 2014).
Importance:
Performance management is necessary in evaluating the working efficiency to check
whether they are up to the mark or not. These functionalities are observed by setting some
benchmark that are essential to achieve because these are some basics that are compulsory for a
remarkable profitability for firm. With assistance of these criteria, divisional head of Steel Co.
could get measured working quality of his staff members and he reached on result that workers
are not loyal to company and they are not having any kind of commitment towards their
activities and they are just performing them with taking care that they are being accomplished in
better way or not.
4. Analyse the effectiveness of linking performance to financial reward
Divisional head also launched a payment system as per the performance of employees
and also associated extra rewards with it. This program is necessarily to be implemented because
owner-manager had a freeze payment scheme that was downsizing the morale and motivation of
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human resources along with level of performance. Steel Co. is facing low commitment level of
by employee’s side because owner-manager is an autocratic leader and he had a freeze payment
system that is not able in fulfilling workforce demands so that it reduced performance benchmark
as well as productivity of firm. After identifying this problem, divisional head launched a new
and improved payment program that is also comprising rewards and benefits to them who are
working well with other workers (Meyers, van Woerkom and Dries, 2013).
Linking with Financial Rewards:
Financial rewards is one of the best approach for performance appraisal and achieve high
level of working. These are associated with all working patterns. If a worker is doing well,
company provide their employee better salary which must be able in fulfilling all demands and
requirements of employees so that their morale and motivation could get enhanced. With high
motivation, they will work with greater efficiency which is necessary for goal accomplishment.
If a worker is working with more efficiency and effectiveness then it is a responsibility of
divisional head to appreciate their performance for motivating their other employee as well
containing some extra benefits. But these incentives must remarkable if they are not then it will
not to be said as successful payment plan because it cannot be able in generating trust and loyalty
towards firm among staff members (Nilsson and Ellström, 2012). An adequate salary and
incentive strategy must be made because this is a core interest of any employee that inspires him
to do work effectually.
How much a person get in corporations is to be determined with help of performance
management system as this tool control the management understanding the importance of
functionality as their priority of company. Same wage must be provided to entire employees who
are working at the same level as well as also have equal abilities. Human resource management
should carry out appropriate plans and terms for managing the wage system and should manage
proper coordination of rewarding system. In case of delay in these activities and unsuitable
payment plan, they should immediately improvement the whole system before the emergence of
bigger issue (Meyers and van Woerkom, 2014).
CONCLUSION
Above case study can conclude that Steel Co. is facing lots of human resource related
problems because of command and control management style which is a result of autocratic
leadership that is done by owner-manager of firm. Low commitment level, morality, loyalty, etc.
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are the result of owner's leading activities that can lead to less contribution of employees in
company's activities and operations. The report states that there is proper need of leadership style
according to the requirements of organisation in order to enhance and manage talent
management in company. This report addresses some issues that are arises in corporation can be
exampled as poor commitment level, low motivation, freeze wage scale etc. and suggests that in
order to resolve entire problems, performance management and employee appraisal are the best
and most suitable activities which Steel Co. divisional director can adopt for achieving the
determined outcome.
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REFERENCES
Books and Journals
Cerdin, J. L. and Brewster, C., 2014. Talent management and expatriation: Bridging two streams
of research and practice. Journal of World Business. 49(2). pp.245-252.
Collings, D. G., 2014. Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities. Journal of World Business. 49(2). pp.253-261.
Dries, N., 2013. The psychology of talent management: A review and research agenda. Human
Resource Management Review. 23(4). pp.272-285.
Festing, M. and Schäfer, L., 2014. Generational challenges to talent management: A framework
for talent retention based on the psychological-contract perspective. Journal of World
Business. 49(2). pp.262-271.
Gelens, J. and et. al., 2013. The role of perceived organizational justice in shaping the outcomes
of talent management: A research agenda. Human Resource Management Review. 23(4).
pp.341-353.
Kucherov, D. and Zavyalova, E., 2012. HRD practices and talent management in the companies
with the employer brand. European Journal of Training and Development. 36(1). pp.86-
104.
Meyers, M. C. and van Woerkom, M., 2014. The influence of underlying philosophies on talent
management: Theory, implications for practice, and research agenda. Journal of World
Business. 49(2). pp.192-203.
Meyers, M. C., van Woerkom, M. and Dries, N., 2013. Talent—Innate or acquired? Theoretical
considerations and their implications for talent management. Human Resource
Management Review. 23(4). pp.305-321.
Nilsson, S. and Ellström, P. E., 2012. Employability and talent management: challenges for HRD
practices. European Journal of Training and Development. 36(1). pp.26-45.
Stahl, G. and et. al., 2012. Six principles of effective global talent management. Sloan
Management Review. 53(2). pp.25-42.
Thunnissen, M., Boselie, P. and Fruytier, B., 2013. A review of talent management:‘infancy or
adolescence?’. The international journal of human resource management. 24(9).
pp.1744-1761.
Thunnissen, M., Boselie, P. and Fruytier, B., 2013. Talent management and the relevance of
context: Towards a pluralistic approach. Human Resource Management Review. 23(4),
pp.326-336.

Vaiman, V., Scullion, H. and Collings, D., 2012. Talent management decision
making. Management Decision. 50(5). pp.925-941.
Otley, D., 1999. Performance management: a framework for management control systems
research. Management accounting research. 10(4). pp.363-382.
Online:
Talent management. 2017. [Online]. Available through: <https://www.betterteam.com/talent-
management>.
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