Talent Management: Role of Performance Management System and Team-Based Rewards

This document discusses the role of a performance management system in talent management and how it can be implemented with other HR processes to improve organizational performance. It also explores the use of teams and team-based rewards to enhance Steel Co's performance. The document includes a case study and highlights the importance of employee commitment and engagement in achieving organizational goals.

Talent management

Table of Contents
INTRODUCTION...........................................................................................................................4
Part 1................................................................................................................................................4
Development an argument defining the role of a performance management system, explaining
how it can be implemented with other HR processes to improve organisational performance
by the use of talent management............................................................................................4
Part 2...........................................................................................................................................5
Outline an argument debating the use of teams and team-based rewards to improve Steel Co’s
performance. Please ensure that you refer to the academic literature and the case study to
illustrate your answer.............................................................................................................5
Part 3...........................................................................................................................................7
Explain how a performance management system can be used to improve employee
commitment and engagement.................................................................................................7
CONCLUSION................................................................................................................................9
REFERNCES.................................................................................................................................10
Books & Journal...................................................................................................................10

INTRODUCTION
The performance management is considered as a process that help in organising different
activity and output of organisation in order to achieve goals as well as objective in stipulated
period of time. In other words it has been stated that it emphasized on performance of business
organisation, its staff as well as department in order to perform a specific task. This report is
carried upon the company named as Steel Company. It is a small producing company which is
operate from 30 years with the employees around 65. In this report there are various current
strategies for managing a talent within business organisation as well as different elements that
influence direct effect on functioning of business organisation during the period of time. In
addition to this the main purpose of company is to observe the performance of employees in
order to boost the level of performance in future period of time (Mone, London and Mone,
2018).
Part 1
Development an argument defining the role of a performance management system, explaining
how it can be implemented with other HR processes to improve organisational performance by
the use of talent management
There are various strategies which are made by the organisation for running their business
activity and operations in an appropriate manner. The strategies as well as tactics help them in
talent management of human resource at workplace. In reference of Steel Company, they make
specific strategy for managing human resource in an appropriate manner. There are various
strategies in relation to the Human Resource Management that is given beneath;
HR strategy: In this strategy the manager of Steel Company emphasis on recruiting
talented as well as capable staff by adopting recruitment as well as selection tactics.
Recruitments: Recruitment is a positive approach through which the Steel Company
recruits talented and capable employees to fill the available job vacancy within business
organisation (Van Helden,and Reichard, 2016). In reference of Steel Company there are various
internal as well as external methods which are used by HR manager for recruiting capable
candidate at workplace. There are various external recruitment processes which include campus
recruitment as well as employment changes and many more. Whereas in case of internal method
of recruitment which includes promotion as well as transfer that is adopted for transferring the

employees of organisation in same position but in different place. In addition to this they
promote employees on the basis of their performance of company. (Böhmer and Schinnenburg,
2016).
Selection: Selection is the procedure in which HR Professional of Steel Company focuses
on choosing the best candidate from available one. They hire capable and talented employee
according to the requirement of job position filled within organisation. In context of Steel
Company, the HR department focuses on taking interview of his staff by written test or via face
to face interview between the interviewer and interviewee. As a result, they take final decision
regarding appointment or rejection of applicant for field vacant job position at workplace. If the
employees are selected then they issue offer letter and if the applicant is not selected then they
will send him the mail of rejection.
Performance management: It is the duty of HR manager to tackle the level of
performance of their staff within business organisation. In context of Steel Company, they
motivated their staff for enhancing productivity and performance in upcoming time period. For
this purpose they adopt different financial or non financial resources for motivating employees
towards attaining goal as well as objectives in short span of time. It has them in increasing their
productivity and performance during the period of time (Ljungholm, 2016).
Reward: Furthermore, the business organisation focuses on providing reward or incentive
to its staff for enhancing their motivational regarding their work and it helps in reducing the
turnover rate of employees during the period of time. There is various reward incentive which is
given by Steel Company such as job security, appraisal, bonuses, promotions as well as many
more for increasing their motivational level in performing their work in well defined manner.
Training and development: It is necessary for manager of company to assess the skill as
well as knowledge of employees for executing particular task and activity of organisation in
better way. For this process it is vital for them to conduct effective training session for their staff
for increasing their skill and competence in performing their task in better way. Therefore, the
Steel Company conduct training session once in month for increasing knowledge of employees
that helps them in their development (Cappelli, and Keller, 2017).
Equality and Diversity: In present context diversity play an important role in every
organisation. There are various cause related to diverse staff is they are from various background
caste, culture as well as many more. In context of Steel Company there is various staff which is

coming from various backgrounds, culture and from different countries all are part of business
organisation. Therefore the HR manager focuses on offering fairly treated to all staff in phrase of
salary, compensation as well as other advantages.
Performance management criteria: It is the duty of HR manager to tackle the level of
performance of their staff within business organisation. In context of Steel Company, they
motivated their staff for enhancing productivity and performance in upcoming time period. For
this purpose they adopt different financial or non financial resources for motivating employees
towards attaining goal as well as objectives in short span of time. It has them in increasing their
productivity and performance during the period of time. There are various methods which is
adopted for managing performance in context of Steel Company which is going to be discussed
below:
Strategic congruence: It is necessary for HR manager to make effective strategy, policy
as well as procedures in order to adapt to changes by staff in this dynamic business environment.
Therefore the HR Manager focuses on employees who are easily adopt the changes and bring
positivity within business organisation for increasing their performance level during the period of
time (Tafti, Mahmoudsalehi and Amiri, 2017).
Validity: In this process the HR manager of Steel company assess the performance of
employees depend upon the level of contribution of staff for accomplishing goal as well as
objective in stipulated period of time. For example for Marketing department the main purpose is
to boost sales as well as maintaining good relationship with customer. Therefore the validity of
staff can be identified depend upon their contribution which helps in increasing sales in future
time period.
Reliability: It is necessary for HR manager of Steel Company to make comparison
between actual as well as desired performance in order to take correct decision in future period
of time (Taylor, 2018).
Part 2
Outline an argument debating the use of teams and team-based rewards to improve Steel Co’s
performance. Please ensure that you refer to the academic literature and the case study to
illustrate your answer.
CASE STUDY

As per this case the Tata Steel focuses on building effective team in order to achieve goals
as well as objective in stipulated period of time. In addition to this they focuses on providing
reward, incentives as well as appraisal to its employees in order to motivate them towards it
work that help in increasing productivity as well as level of performance of employees in future
period of time. In context of Tata Steel they allot task to its team member in order to perform it
in a timely manner. The main purpose of manager of Tata steel is to motivate employees that
increase the performance level of subordinate during the period of time. They measure the
desired or actual performance of employees and find deviation in order to taking effective
decision which will be beneficial for success as well as growth of organisation (Pollitt, 2018).
Truckman Theory of team development:
This story was founded by Bruce Truckman in the year of 1965 it is the team management
model that focuses on building effective team in specific field. In context of Tata Steel they
focus on making effective team in order to perform different activity and task of organisation in
an effective manner. This theory contains five level related to developing a team which is going
to be mentioned below:
Forming: In the first level of development of team theory here in the manager of the
company allot task and work to its team in order to performing them in better manner. It is
necessary for manager to understand the various people who have come from various Heritage or
culture and they taking time in involving in each other in order to perform their work in better
manner (Kerpershoek, Groenleer and de Bruijn, 2016).
Storming: In this level the ideas as well is belief of member of team are shared between
them in order to finish their project in an effective manner. Here in there is a chance of conflict
as well as grievances arise among the team member. When the member of team shares their
ideas as well as belief with each other then it create a chances of issues as well as problems
among the member of team. Therefore it is the responsibility of manager of company to resolve
this issue in order to finish their project in timely manner.
Norming: In this stage the member of team focuses on performing their work based on rules
and values. It helps them in performing their work in a better manner.
Performing: This stage is assessed through higher level of knowledge, motivation as well as
competence. Here in the member of team focuses on completing their project in timely manner.

It is necessary for the manager of the company to observe the work which is performed by the
member of team in order to provide better quality project to its client during the period of time.
Adjourning: This is the last stage in which the team member completed their project and
they get separated. The main focuses of the company is to performing their task and timely
manner and accomplish goals as well as objective in short span of time.
In context of Tata Steel they focuses on managing the team in an effective manner for
achieving goal as well as objective in stipulated period of time. The manager also focuses on
making effective team in order to perform different task and activities in an effective manner
therefore it is necessary to handle as well as co-ordinate the different task in proper manner. In
addition to this it is necessary for company to managing the conflict and grievances for creating
positive atmosphere at workplace. In addition to this the company emphasized on providing
reward, incentive to its employees in order to motivate them towards achieving goal as well as
object in stipulated period of time. By giving reward, it motivates employees to perform their
work in a better manner during the period of time (Ashdown, 2018).
It is necessary for business organisation to follow various rules as well as legislation which
is followed by company in an effective manner. All these laws as well as legislation impose
direct effect on practices as well as strategy related to HR that is going to be mentioned below:
Equality Act 2010: The equality act was given by the UK parliament. The main goal of
this act is to keep up to date of various acts which are executed before the equality act. In this act
it is necessary for company to give fair treatment to all staff regardless of their caste, culture as
well as Creed and many more (Wang and Liu, 2016).
Employment right act 1996: In this act it is necessary for organisation to provide some
specific right to its staff such as taking leaves when they need, flexible working hour as well as
some extra advantages. Therefore the manager of Steel Company provides all such rights to its
staff in order to fulfil their requirement during the period of time.

Part 3
Explain how a performance management system can be used to improve employee commitment
and engagement
Performance management system is important and integral part of the organisation as It
helped in various functions of the organisation as well as managing and facilitating productivity
within the different functions of firm. Steel co. can also use this performance management within
the organisation where is an employee improving employee commitment and engagement. This
is shown below that how performance management helps in increasing the engagement and
consistency of employees (Aguinis, 2019).
Consistency: performance management directly help the employees in getting the
promotion transfer or other actions in inconsistent way by their performance and evaluation of
their functioning within the organisation. Always ensure that the right person on the right thing
should be matched with the right job where they can perform effectively with Industrial
Corporation and provide maximum output to the organisation.
Motivation: always drive motivation within the employees as all organisation employee
should be more highly motivated because of their increased performance and achievement of the
objectives related to their performance.it include the performance appraisal which will help
employees in managing and relating their performance according to the determined standards
and applying for promotion transfer and other policies which will reward them according to their
capacity.
Moral and retention: performance management system always helps the employees within the
organisation to boost their motivation regarding the organisation work with the help of
improved performance. This also enables dual royalty to the organisation where manager
can easily motivate its employees according to their performance (Glas, Henne and Essig,
2018).
Challenges in front of steel co.
Organisation has to face various challenges while implementing the performance
management system in the organisation these challenges are stated below.
Lack of alignment: the basic challenge which was faced by this organisation while working
in and implementing the performance management system is that lack of alignment due to

various organisation processes which is being created in isolation (Kalgin, 2016). In context of
performance management system there are various linkage between the strategic development
budgeting and operational planning within the organisation which is to form different groups and
use different frameworks so it is difficult for organisation to set a proper alignment between
these functions which act as a negativity within this function of performance management.
Lack of measurements: the second challenge which has two faced by the implementation of
performance management is that there are various levels within the organisation of Steel
Corporation which have no proper measures. Organisation has to develop these measures and
target the particular set where it can place a proper argument in front of performance
management system within the organisation.
Leadership and management commitment: in Steel Corporation the commitment of
leadership and management is poor where there is no proper use of resources within the
organisation and impact and coordination between leadership and management of the
organisation which also restrict the performance of the organisation related to performance
management system (Ma, 2017).
There are some measures which can be used by the organisation which are mentioned
below:
Alignment of system to the strategy: the first point which can be adopted by the steel
corporation is that it can use a proper strategy which is aligned with the system of the
organisation. After critical analysis it is identified that organisations use performance
management system as an umbrella term for both set of analytical and management task. But it
has to use it and learn it to view the performance management system not just as a tool of the
measurement performance but the way to align the employee behaviour within the organisation
to achieve the objectives of firm.
Prioritise objective: implementing the policy related to performance management system by the
seal corporation. Have to clear exam in all its goals and objectives as well as manufacture of
proper plant where it can easily prioritise each objective related to performance of the
employees and aims to increase the profitability of the organisation by the impact
performance of every employee (Adams, Nishikawa and Rao, 2018).
Evaluate the full contribution of employees: generally organisation prefer only measure the
extra performance done by the employees in a performance management system rather than its

regular work. It Make performance management system weak within the steel corporation. For
this, organisation has to clearly identify different functions within it and contribute all over the
information related to the contribution of employees within whole work.
There are various recommendations which are going to be discussed below:
 It is essential for HR professional of Steel Company to clearly define the whole need of
business organisation as well as depend on this day recruit capable and talented staffs
according to fulfil their requirements
 The HR management must use external method of recruitment in order to hire best
candidate from available one. It aids assistance in boosting efficiency as well as level of
effectiveness in upcoming time period.
 The HR manager of Steel Company making effective, strategy policy and procedure for
gather effective information that help in selection of best employee from available one.
 It is the responsibility of duty of HR manager to provide motivation as well as
satisfaction to its staff for increasing productivity level in future time period. The HR
supervisor of Steel Company adopt various motivational tactics such as providing
benefits, bonuses, additional holiday, appraisal and many more for boosting their
satisfaction during the period of time. It also assistance them in eliminating the turnover
rate of employees
CONCLUSION
It can be concluded from the above mentioned report that there are various measures
which can be used by the organisation for performance management system and it is helpful to
the organisation in managing its employee’s performance and increasing their contribution
towards the different activities. It will also facilitate organisation to achieve its objectives in an
appropriate time which will increase the profitability because of proper use of resources and
motivation within the employees.

REFERNCES
Books & Journal
Mone, E.M., London, M. and Mone, E.M., 2018. Employee engagement through effective
performance management: A practical guide for managers. Routledge.
Ljungholm, D.P., 2016. Organizational social capital and performance management. Linguistic
and Philosophical Investigations, (15), pp.108-114.
Kerpershoek, E., Groenleer, M. and de Bruijn, H., 2016. Unintended responses to performance
management in Dutch hospital care: Bringing together the managerial and professional
perspectives. Public Management Review, 18(3), pp.417-436.
Ashdown, L., 2018. Performance Management: A practical introduction. Kogan Page
Publishers.
Aguinis, H., 2019. Performance Management For Dummies. John Wiley & Sons.
Kalgin, A., 2016. Implementation of performance management in regional government in
Russia: evidence of data manipulation. Public Management Review, 18(1), pp.110-138.
Ma, L., 2017. Performance management and citizen satisfaction with the government: Evidence
from Chinese municipalities. Public Administration, 95(1), pp.39-59.
Adams, J.C., Nishikawa, T. and Rao, R.P., 2018. Mutual fund performance, management teams,
and boards. Journal of Banking & Finance, 92, pp.358-368.
Glas, A.H., Henne, F.U. and Essig, M., 2018. Missing performance management and
measurement aspects in performance-based contracting. International Journal of Operations
& Production Management.
Pollitt, C., 2018. Performance management 40 years on: a review. Some key decisions and
consequences. Public Money & Management, 38(3), pp.167-174.
Van Helden, J. and Reichard, C., 2016. Commonalities and differences in public and private
sector performance management practices: a literature review. Performance Measurement
and Management Control: Contemporary Issues.