Unit-3

Talent Management – Performance Management

Introduction:

In this chapter, we shall discuss the relationship between Talent Management and Performance
Management. Both are two integral parts of human resources management, and are focused on the
same organizational goal – securing human capital contribution and performance.

Performance management is concerned with the present – here and now; whereas talent management
focuses on securing the future – tomorrow. The process and activities involved are completely
different between these two programs however the targeted outcome for the organization is the same.

Talent management aims at retaining the efficient and high-performing employees, while performance
management aims at setting the performance objective, activities, and target according to the
individual accountability plan and measure performance periodically – yearly or quarterly.

Performance management includes activities such as planning work, goal setting, monitoring or
continuous progress review, frequent communication, feedback and training for improved
performance, implementation of employee development programs and rewarding achievements.

Performance Management includes the following activities −

 Planning and Setting Goals − Performance management includes proper planning and setting
performance expectation and goals for individuals and teams to redirect their efforts and skill
towards realizing organizational goals. There should be measurable, understandable,
verifiable, and achievable performance elements and standards.

 Monitoring or Evaluating Performance − This involves periodical assessment or measuring

of employees’ performance, providing feedback to employees and work groups on their
progress towards realizing their set goals. Continuous progress review is helpful in identifying
unacceptable performance at any time.

 Developing and Enhancing Capacity − Performance management provides training, gives

assignments to acquaint the employees with new skills, and improves the work processes or
methods to enhance the capacity to perform. Performance management processes provide a
good opportunity to identify development needs.
  Rating or Evaluating Performance − Evaluate or assess employees or group performance
against set standards or elements in a performance plan. Based on the evaluation, assign a
summary evaluation or rating record.

 Rewarding Performance − The last stage of performance management is to have a culture of

rewarding employees, both individually and as members of group for their performance
towards the realization of organizational goals and objectives.

Objective of Performance Management in Managing Talent

The objective of performance management is to build a high performance culture for both individuals
and teams in an organization so that they jointly take the responsibility of improving the business
processes, and at the same time increase overall productivity.

Following are some important objectives of Performance Management with reference to talent
management.

 Drive the employees towards achievement of superior standards of work performance.

 Support the employees in identifying the knowledge and skills required to perform the job
efficiently.
 Motivate employees by encouraging employee empowerment and implementation of an
effective reward process.
 Promote a two-way system of communication between management and the employees for
clarifying expectations, roles and accountabilities, functional and organizational goals.
Provide regular and transparent feedback to improve employee performance.
 Identify the barriers or problems to effective performance and resolve those barriers through
constant monitoring, training, and development interventions.
 Promote personal growth in the career of the employees by helping or supporting them in
acquiring the desired knowledge and skills.
 Increase the self-esteem of the employees and enhance their self-insight and development.
Benefits of Performance Management
An effective performance management system can play a very crucial role in managing the
performance in an organization by −

 Ensuring proper understanding of objectives and facilitating effective communication

throughout the organization.

 Developing a healthy relationship between an employee and the line manager based on trust
and empowerment.

 Ensuring each employee understands what is expected and equally ascertaining whether the
employees possess the required skills and support to fulfill such expectations.

 Ensuring employees understand the importance of their contributions to the organizational

goals and objectives.

 Better and timely differentiation between good and poor performers.

 Enhancing the competence of the employees and enabling the managers to gain insight about
their subordinates.

 Facilitating organizational changes and paving ways for appropriate administrative actions.
 Overview Employee Development

This section contains two types of development plans. The Performance Development Plan is used for
near-term improvement in one to three performance areas. The Career Development Plan is used to
focus an individual's work experience and training on long-term organizational needs and personal
interests.

 Solve performance problems and turn difficult performance discussions into positive action.

 Retain high-potential individuals by identifying new challenges and ongoing opportunities.

 Prepare employees for promotions and other major new responsibilities. Also helps employees
adapt to organizational change.

Personal Development Plans

1. Performance Development Plan

 A Performance Development Plan is a flexible tool for improving employee performance. It

can be used with your strongest performers to identify new ways in which they can contribute
or with employees who are not meeting expectations.
 This type of plan is used to address performance issues that have been identified by the
manager and communicated in an appraisal, performance-related memo or in conversation. In
addition, a plan can be initiated by any self-motivated employee who wants to improve
performance in a specific area.
 The following guide takes the employee and manager through the two part process of
completing a Performance Development Plan. Part One leads the employee through a first
draft, while Part Two covers the manager's review, the manager-employee discussion, and an
agreement to action.

Guide to Writing a Performance Development Plan

Part 1: Employee Instructions

Step 1:

Review Improvement areas. Before beginning the plan, review the sections in the performance
appraisal (or other document) where potential improvement areas have been identified. It is important
that you understand and agree with the basic issues and expectations before setting up developmental
activities, so be sure to get clarification from your manager if you have any questions.

Step 2:

Document development goals. Write down 1-3 developmental goals related to areas you want to
improve or performance issues identified by your manager. An example of a development goal is
"Improve my presentation skills."

Tip: Development Goal Checklist

  Is the goal specific?
 Can your success in reaching the development goal be measured?
 Is it realistic/attainable given the timing and resources?
 Will it have a direct impact on your job performance?
 Is it tied to the organization's goals and mission?
 Are the goals listed in order of priority?

Step 3:

Define development activities. List 2-3 activities that will help you reach each goal. Be sure to specify
how and when you will start and complete each activity.

Tip: Common Development Activities

 Identify and cultivate a relationship with a mentor/role model.

 Read relevant material.
 Engage in training and education.
 Keep a journal.
 Attend appropriate seminars.
 Take on special job assignments or job rotation.
 Receive coaching from a skilled co-worker.
 Increase customer contact.
 Incorporate activities into ongoing work assignments.

Step 4:

Gather resources. List any resources you will need to complete your development activities. Resources
may include other people's time or expertise, funds for training materials and activities, or time away
from your usual responsibilities.

Step 5:

Define metrics of performance. Indicate how you will measure the accomplishment of each
developmental goal, using 2-3 different indicators when possible.

Tip: Different ways to measure developmental goals

 Measuring completion of developmental activities; e.g. "developmental goal x (improving

presentation skills) will be met when I complete the ABC training course (Sales Presentation
Seminar)."

 Measuring change in performance on a task after developmental activities have taken place;
e.g. "developmental goal x (improving presentation skills) will be met when the number of
positive comments I receive after presentations outweigh the number of criticisms."

 Measuring final end results of developmental activities; e.g. "developmental goal x (improving
presentation skills) will be met when I achieve result XYZ (5 consecutive sales presentations
generate orders over $7500).
  Measuring the skills or abilities developed using a test or other evaluation; e.g. "developmental
goal x (improving presentation skills) will be met when the average audience rating for my
presentation is 8 or better on a scale from 1 to 10."

Step 6:

Consider what you will need from your manager. Identify ways in which your manager will support
your development activities. Manager support often includes personal guidance (advice, review of
progress) and some type of influence (e.g., introducing you to key people in the company, putting you
in charge of the next team meeting, or giving you additional resources).

Step 7:

Define process milestones. Describe when and how progress checkpoints will occur (e.g., memos,
phone calls, meetings, etc.) and what developmental activities will be completed or discussed at each
checkpoint.

Part 2: Manager Review - Tips and Questions

Review the employee's suggested improvement plan before the performance plan meeting. This plan is
a good indicator of how well the employee understood the performance issues you had identified.
Validate the employee's assessment and plan by providing comments and activity suggestions. Identify
any development areas the employee may not have recognized.
Questions to ask....

1. On a scale of 1-10, how well do you think the employee understands the performance issues and
expectations for improvement? Do the developmental goals and activities connect directly to the
performance issues you identified?

Tip: If the employee misunderstands or disagrees with your assessment of their developmental needs,
try the following steps: 1) Review the facts - the behavior you observed, the results they achieved,
and the impact on the organization- and make sure that the employee acknowledges them as facts,
2) Describe why that behavior or those results need to change and 3) Identify suggested changes
and describe how they will help the employee contribute to meeting team or organizational needs.

2. Are the developmental activities detailed and action-oriented? Are they realistic given the available
time and resources? What is your confidence level (x%) that the employee can complete the
activities?

3. Do you know of other activities that would help the employee reach developmental goals? What has
helped you in the past in this area?

4. Can you provide the resources identified? What is the chance (x%) that resource needs have been
underestimated?

5. Are you comfortable with the measurement criteria for each developmental goal? Can you make
them more quantifiable?

Tip: When dealing with more serious performance issues, make sure that goal measurement is based
on objective, quantifiable criteria. For issues that are difficult to quantify, the next best solution is to
have a third party (a co-worker, manager, customer, etc.) rate employee performance before and
after developmental activities.
6. Are you 100% committed to delivering the help that your employee is requesting? Or, are you
promising more than you can deliver in the given time frame?

7. Have you and the employee agreed on dates for checking progress, how progress will be measured,
and what changes will be made if progress is behind schedule?

Tip: If the employee is making the effort but is behind schedule at a checkpoint, you can provide
additional guidance and/or suggest changes in activities. If the employee has made little progress and
does not appear to be making an effort, you should reiterate the importance of the development goal,
possibly change the schedule to move development up the priority list, and if necessary, identify
consequences if progress continues to be slow.

Tip: Be sure to offer positive feedback at each checkpoint when progress is on track, if nothing more
than a quick acknowledgement (e.g. "I can see you're making great progress.")

Performance Development Plan Sample

Step 1:

Write down 1-3 developmental goals related to areas you want to improve or performance issues that
have been identified by your manager.

Development goals:

1. Improve my presentation skills

2.
3.

Step 2:

List 2-3 activities that will help you reach each goal. Be sure to specify how and when you will start
and complete each activity.

Activities:

Goal 1: Improve my presentation skills

Activity 1: Attend the Presenters in Business Seminar
How to accomplish: Register for the seminar through work
Starting date: Tomorrow, September 29th
Date of completion: Next month, October 15th (date of seminar)
Activity 2: Continue to practice my skills in meetings
How to accomplish: Volunteer to give a weekly presentation on business results
Starting date: This week
Date of completion: Continue throughout the year
Goal 2:
Goal 3:

Step 3:

List any resources you will need to complete your development activities. (May include other people's
time or expertise, funds for training materials and activities, or time away from your usual
responsibilities).
Resources:

1. The Presenters in Business Seminar will cost $250.00

2. Contacts with Michael Blanchard and Kirsten McKay, who I think are the best presenters in the
company.
3. I will need to leave by 3:00 p.m. on Thursdays to attend the course.

Step 4:

Indicate how you will measure the accomplishment of each developmental goal, using 2-3 different
indicators when possible.

Measurement criteria:

1. I'll get feedback on my weekly business results presentation by asking three people there to rate my
presentation (scale of 1-10) before and after my training seminar. I'll be successful when my average
score is an 8 or better.
2. I will attend all of the course sessions.
3. My sales presentations will result in at least $x sales in the next three months.

Step 5:

Identify ways in which your manager will support your development activities.

Management support:

1. By giving me the opportunity to give weekly presentations, and being one of the three people who
rate my performance.
2. Suggesting other excellent presenters who I can contact to evaluate my performance at weekly
meetings.
3. Providing the funds for the seminar.

Step 6:

Describe when and how progress checkpoints will occur (e.g., memos, phone calls, meetings, etc.) and
what developmental activities will be completed or discussed at that time.

Progress checkpoints:

Checkpoint 1
Date: November 5th
Time: 10:00 a.m.
Type of follow-up: meeting
Progress expected: Presenters in Business seminar attended, 9 weekly presentations completed,
achieve rating of 8 on my weekly presentations
Activity change/addition (if needed)

2. Career Development Plan

A Career Development Plan is a tool to keep individual's skills and interests aligned with
organizational needs, and to build employee commitment to the organization. When it is completed by
the employee and manager cooperatively, it can have a major impact on an employee's motivation,
personal growth, and overall contribution to the company. Employee career development can make the
difference between watching your best people move up in the organization and watching them move
on to a new career or to your competitors.

Career development plans may be written with the following objectives in mind:

 Growth in the current job. Expanding skills and job satisfaction for employees who are at the
top of their career path or who do not have a desire to move beyond their current position.

 Promotion and succession planning. Preparing an employee for a promotion, including the
replacement of the employee's manager.

Guide to Writing a Career Development Plan

Part 1: Employee Instructions

Step 1:

Write down your primary career interest.

Tip: A primary career interest is usually described in terms of a general vocation. For example, "My
primary career interest is marketing within the automobile industry."

Step 2:

Identify long-term professional goals (including positions desired within the company).

Tip: Long term professional goals are often conveyed in terms of specific positions ("become a
regional sales manager") or major accomplishments ("write a book").

Tip: List any lateral moves or promotions that will help you meet your long-term professional goals.
For example, "I want to move from sales associate to sales manager, and finally to regional sales
manager."

Step 3:

Identify the short-term goals that contribute to long-term interests and the challenges that must be
overcome in order to reach these goals.

Tip: Identify barriers, both personal and external, that prevent you from accomplishing your short-term
goals, then create ways to overcome them. For example, "My short-term goal is to acquire advanced
computer skills. The barrier is the time constraints on my job in mechanical engineering which leave
me little or no time to receive the additional training I need. The way I could overcome this barrier is
to find more efficient ways to complete my tasks or to delegate them to others while I attend the
August training sessions."

Step 4:
List 2-3 activities that will help you reach each goal. Be sure to specify how you will accomplish the
activity, including any resources you might need, and when you will start and finish it. (Resources may
include other people's time/expertise, funds for training materials and activities,or time away from
your other responsibilities).

Tip: Common Development Activities

 Identify and cultivate a relationship with a mentor/role model.

 Read relevant material.
 Engage in training and education.
 Keep a journal.
 Attend appropriate seminars.
 Take on special job assignments or job rotation.
 Receive coaching from a skilled co-worker.
 Increase customer contact.
 Incorporate activities into ongoing work assignments.
Step 5:
Describe tasks in your current job that are contributing to long term goals and that you would like to
emphasize or perform more frequently.
Step 6:
Describe tasks in your current job that are not contributing to your long-term goals. Suggest ways to
minimize, remove, or delegate them to others.
Step 7:
Write down any additional skills, knowledge or experience you would like to acquire that may directly
or indirectly help you in your current job or future positions.
Step 8:
Describe when and how progress checkpoints will occur (e.g., memos, phone calls, meetings) and
what developmental activities will be completed or discussed at these times.
Part 2: Manager Review
Questions to ask....

1. Are you aware of your employee's career interests and values? Do you know which of your
employee's strengths contribute to these career goals and what areas need to be developed?

2. Do you feel that the short-term goals your employee has suggested are unrealistic, given the
employee's abilities or other external factors? Is there anything standing in the way of the desired
goals?

Tip: Convey what you know about organizational realities to help the employee set short-term goals. If
you think there are outside barriers which will inhibit the attainment of their goals, describe them
and help the employee work around them.
3. Do you know of other activities that would help the employee reach the developmental goals?
What has helped you in the past in this area?

Tip: Help the employee select at least one development activity for each short-term goal. Scan the
Employee Appraiser Coaching Advisor for action suggestions.

4. Are there people you know who could help your employee meet their career development goals?
Can you provide the resources identified?

Tip: Help the employee meet their goals by offering your ideas, contacts with people, and resources.
Think of at least one person who could help the employee in a mentor or advisor role.

5. Can you make changes to the employee's job to replace routine tasks with new work that is more
closely aligned with the employee's goals?

Tip: If you agree with the employee's suggestions for expanding their responsibilities, work with them
to define any additional knowledge or experience they will need to meet the new set of expectations.
Also take a close look at how their workload will be affected, and discuss any responsibilities they will
need to give up.

Tip: When employees mention tasks they no longer want to be involved with, ask them for specific
suggestions on how to get the same result without their involvement, e.g. delegate, eliminate, or find
more efficient ways of accomplishing the tasks.

6. Have you and the employee agreed on dates for progress checkpoints and what will be measured
at each one?

Career Development Plan Template

Step 1: Write down your primary career interest.

PRIMARY CAREER INTEREST: sales management
Step 2: Identify long-term professional goals (including positions desired within the company).
Long-term professional goals:
1. Become a Regional Sales Manager
2.
3.
Step 3: Identify the short-term goals that will contribute to long-term interests.
Short-term professional goals:
1. Be in top 10% of regional sales for each quarter
2. Be a team leader for Project Zelphi
3. Join the Omicron Trade Group

Step 4: List 2-3 activities that will help you reach each goal. Be sure to specify how you will
accomplish the activity, including any resources you might need, and when you will start and finish it.
Career development activities:
Short-term Goal 1: Be in top 10% of regional sales each quarter
Activity 1: Go on sales calls with senior sales managers, Susan Pipkin and Jose Gonzales.
How to accomplish: Have manager introduce me to them. Ask them to lunch and cultivate a working
relationship.
Starting date: Next Monday, July 15th.
Date of completion: Next Friday, July 19th.
Activity 2: Read the top two trade publications each month.
How to accomplish: Subscribe to them through work.
Starting date: Tomorrow, July 12th.
Date of completion: Tomorrow, July 12th through next year.
Short-term Goal 2:
Short-term Goal 3:

Step 5: Describe tasks in your current job that are contributing to long-term goals and that you would
like to emphasize or perform more frequently.

Suggested task emphasis\expansion:

1. Working on projects with marketing and product development units.

Step 6: Describe tasks in your current job that are not contributing to your long-term goals. Suggest
ways to minimize, eliminate, or delegate them to others.

Suggested task minimization/elimination:

1. Weekly meetings with Channel Sales (could send Sharon Lee in my place)
2.

Step 7: Write down any additional skills, knowledge or experience you would like to acquire that may
directly or indirectly help you in your current or future positions.

Additional skills, knowledge, experience desired:

1. Becoming proficient in technical aspects of our software programs.
2.
3.

Step 8: Describe when and how progress checkpoints will occur (e.g., memos, phone calls, meetings,
etc.) and what developmental activities will be completed or discussed at these times.

Progress Checkpoint 1: Meeting with manager

Date and Time of Checkpoint: Monday August 5, 10:00 a.m.
Purpose: Discuss sales calls with Susan Pipkin
Progress Checkpoint 2: Phone call with manager
Date and Time of Checkpoint: Friday September 7, 10:00 a.m.
Purpose: Address relevant learning from sales seminar
 360 Degree Feedback as a Development Tool
Introduction:

360-Degree Feedback is a multi-rater feedback process in which an employee receives confidential

but anonymous feedback from subordinates, peers, customers or clients, reporting managers or any
other people who work around them. This is a kind of appraisal tool, which measures the performance
of the employees.

The employee receives an analysis of how he or she perceives himself or herself and how he or she is
perceived by others. The feedback forms include questions that are measured on a rating scale and
also ask raters to provide comments.

The growing irrelevance of top-down performance reviews has led to more topdown/bottom-up
assessments, and eventually to the 360-degree assessment.

In a nutshell, in this system of feedback, not only the superior but also the peers and every stakeholder
of the organization evaluates and comments on the performance of the employees.

Following are some of the benefits of 360-degree feedback system −

 Need for any change or development in the employees are revealed.

 Establishes increasing communication in the organization.

 Drives training to ensure more client or customer satisfaction.

 Better career development for the employees.

The 360-Feedback Flowchart in Talent Management consists of the following stages

The Concept of 360-Degree Feedback in Talent Management

The 360-degree appraisal gives the HR Department an upper hand to gain better understanding of the
competitive advantage and disadvantages of the current human resources and tune them towards
performance excellence and productivity. It fits well into a large organization as it touches every
stakeholder in assessing the efficiency and performance of an employee.

Principles of 360-Degree Feedback

As discussed earlier, 360-degree appraisal is a multi-rater and feedback system, widely acknowledged
appraisal model in the world today. The basic principles of this popular appraisal system are as
follows.

 The employee is assessed yearly or even half-yearly by a series of assessors such as the
manager, immediate subordinates, peers, and internal and external customers.

 The aforesaid assessment is carried on with a questionnaire, which is specially designed to

assess behavior critical for performance.

 The assessment is consolidated and feedback profiles are prepared and shared with every
participant either by the HR manager or the department in a performance review session.
  It is powerful, accurate, and reliable compared with the tradition feedback system as it
conducts an impartial and objective assessment. It also involves all those who are related to
the targeted employees.

 It addresses various skills such as resource management and goal setting. It is multi-
dimensional.

 It also emphasizes subjective aspects such as teamwork, leadership qualities, and overall
character.

360-degree feedback answers the following questions −

 Why should I improve my performance?

 What do I need to improve?

 How can I improve?

The following diagram shows how 360-degree feedback is different from the traditional feedback
system.

360-degree feedback system is a wholesome appraisal method. It assesses and provides feedback
about the employee’s work-related behavior and/or performances by soliciting information and data
from a variety of workplace sources. It first became popular as 360degree appraisal system in the US
and today a large number of Fortune 500 organizations are using this non-conventional appraisal
measure in some form or the other.
 Performance Management & Reward System

Employee rewards and recognition system is not just a positive action towards employees. If it is
implemented effectively, it proves to be an efficient tool in encouraging the employees to create and
bring business for the company.

Recognizing the efforts of employees and encouraging their morale results in increased productivity
and decreased attrition rate. It is a documented fact that an encouraged and dedicated workforce can
change the fate of a company.

Establishing and executing a reward system needs careful analysis of the company policies and
procedures. Deciding how to recognize employees’ efforts and what to provide them needs thorough
analysis of duties and risks involved in a particular job.

Types of Rewards
Reward system of a company should also be in alignment with its goals, objectives, mission and
vision. On the basis of the job profile, both monetary and non-monetary rewards can motivate
employees to contribute more to the organization.

Monetary Rewards
A hike in salary, incentives, movie tickets, vacation trips, monetary allowances on special occasions,
redeemable coupons, cash bonuses, gift certificates, stock awards, free or discounted health check-ups
for the complete family and school/tuition fees for employees’ children come under this category.
Non-monetary Rewards

Non-monetary rewards include awards, certificates, letters of appreciation, dinner with boss,
redecoration of employee cabin, membership of recreation clubs, perks, use of company facilities,
suggestion awards, tie-pins, brooches, diaries, promotion, a say in management, etc.

A mixture of monetary and non-monetary rewards works wonders and drive employees to act
competently continuously. A proper and efficient employee reward and recognition program creates
harmonious relationships between employees and the employer.

Flexible Pay
The practice of relating pay to performance has been around for a while. However, what’s new is that
the percentage of pay that is related to performance and the way in which the same is structured
around different elements of performance.

One of the key elements of this flexible pay plan is the strategy of relating pay to performance. This
strategy has been followed by many multinational companies worldwide and consists of the overall
pay structure being broken down into elements.

The variable pay would be paid out as a percentage of the complete package, subject to the
performance of the employee. For instance, if the employee gets a grade of 3 on a scale of 1 to 5 (with
1 as the highest and 5 and the lowest grade), the variable pay would be 60-70% of the eligible amount
and if the employee gets a grade of 2, the variable pay would be 110-120% of the eligible amount.
The variable component of the salary is determined according to the performance of the employee.

The international practice is to increase the element of the variable pay more than the hierarchy. This
would state that at senior levels of the employee hierarchy, the variable component can be as high as
50-60% of the overall pay.
 Performance Linked Remuneration System
Remuneration.

Remuneration is payment or compensation received for services or employment.

Remuneration can include or Types of Remuneration:
 Commission.
 Executive compensation. Deferred compensation.
 Compensation methods in online advertising and internet marketing.
 Employee stock option.
 Employee benefits.
 Salary. Performance-linked incentives.
 Wage.

A performance-linked remuneration is a form of payment from an employer to an employee, which is

directly related to the performance output of an employee.
Examples of remuneration:-

Financial Compensation
Bob recently signed a full-time employment contract at a marketing agency stipulating that he was to
receive a salary of $75,000 per year as compensation for his work. So, salary is a form of
remuneration. Unlike with Bob's full-time job, Jill recently started working part-time at a local grocery
store. She is being paid $10.00 per hour. Hourly pay is another form of remuneration. That
$10.00/hour job jumps to $15.00/hour if Jill works overtime. So, overtime pay is also a kind of
remuneration.

Non-Financial Compensation
Remuneration also includes nonfinancial benefits.
For example, Natalie get a yearly salary as a financial benefit for her work but she also gets
nonfinancial benefits, like:
 10 days of vacation
 5 personal days
 5 sick days
 Health insurance coverage

Difference between Remuneration and Compensation

The term "remuneration" means compensation or pay, but it has a broader meaning than just basic
pay. It can also include not just base salary or bonuses but commissions and other payments, as well as
deferred compensation or benefits paid under the terms of an employment contract.

In general usage language compensation and remuneration are used interchangeably but from the legal
perspective there is difference between payment of compensation and payment of remuneration to the
employee.
 Performance Linked Career Planning

Career Management: Career Planning. Development planning is a process designed to help you to:
Think through your job/career goals. Focus on developing knowledge and skills for your current
position and for future job opportunities.
Sample career plan
 Training in vocational schools, related on-the-job experience or an associate's degree. Some
require a bachelor's degree.
 Excellent communication skills.
 Critical Thinking.
 Being able to monitor and assess situations.
 Time management.
 Service oriented.
 Learn strategies and procedures quickly and precisely.
 Writing skills.

Example

Every employee has a desire to grow and scale new heights in his workplace continuously. If there are
enough opportunities, he can pursue his career goals and exploit his potential fully. He feels highly
motivated when the organization shows him a clear path as to how he can meet his personal ambitions
while trying to realize corporate goals.

Unfortunately, as pointed out by John Leach, organizations do not pay adequate attention to this aspect
in actual practice for a variety of reasons. The demands of employees are not matched with
organizational needs; no effort is made to show how the employees can grow within certain limits,
what happens to an employee five years down the line if he does well, whether the organization is
trying to offer mere jobs or long-lasting careers, etc. When recognition does not come in time for
meritorious performance and a certain amount of confusion prevails in the minds of employees
whether they are ‘in’ with a chance to grow or not, they look for greener pastures outside. Key
executives leave in frustration and the organization suffers badly when turnover figures rise. Any
recruitment effort made in panic to fill the vacancies is not going to be effective. So, the absence of a
career plan is going to make a big difference to both the employees and the organization. Employees
do not get right breaks at a right time; their morale will be low and they are always on their toes trying
to find escape routes.

Career planning and the performance management process

You are responsible for your own career. It is important to master a few toolsthat will help you in
setting your future goals and planning to achieve them. Equally important is the manner in which the
company assesses your contribution and performance.
 Performance Linked Promotion Policy
Introduction:

After the employees have put in around 1 year of service, performance appraisal is organized in order
to check their performance. On the basis of these appraisals, future promotions, incentives, and
increments in salary are decided.

Promotion:

Promotion is vertical movement of an employee within the organisation. In other

words, promotion refers to the upward movement of an employee from one job to another higher one,
with increase in salary, status and responsibilities. Promotion may be temporary or permanent,
depending upon the needs of the organisation.

What is promotion policy?

A set of rules and guidelines set forth by a company or organization that outlines how employees are
to interact with potential customers in the promotion of a good or service.

Types of Promotion:

Promotion given to employees in an organisation can be classified into three types:

1. Horizontal promotion:

When an employee is shifted in the same category, it is called ‘horizontal promotion’. A junior clerk

promoted to senior clerk is such an example. It is important to note that such promotion may take place
when an employee shifts within the same department, from one department to other or from one plant

to another plant.

2. Vertical Promotion:

This is the kind of promotion when an employee is promoted from a lower category to lower category

involving increase in salary, status, authority and responsibility. Generally, promotion means ‘vertical

promotion’.

3. Dry Promotion:
When promotion is made without increase in salary, it is called ‘dry promotion’. For example, a lower
level manager is promoted to senior level manager without increase in salary or pay. Such promotion
is made either there is resource/fund crunch in the organisation or some employees hanker more for
status or authority than money.

The following characteristics make a promotion policy as sound and good policy:

1. It must provide equal opportunities for promotion across the jobs, departments, and regions.

2. It must be applied uniformly to all employees irrespective of their background.

3. It must be fair and impartial.

4. The basis of promotion must be clearly specified and made known to the employees.

5. It must be correlated with career planning. Both quick (bunching) and delayed promotions must be

avoided as these ultimately adversely affect the organisational effectiveness.

6. Appropriate authority must be entrusted with the task of making final decision.

7. Promotion must be made on trial basis. The progress of the employee must be monitored. In case,

the promoted employee does not make the required progress, provision must be there in the promotion

policy to revert him/her to the former post.

8. The policy must be good blending of promotions made from both inside and outside the

organisation.

Promotion can be made on various bases. Following are the major ones:

1. Seniority i.e., length of service

2. Merit, i .e., performance

3. Educational and technical qualification

4. Potential for better performance

5. Career and succession plan

6. Vacancies based on organisational chart

7. Motivational strategies like job enlargement.

8. Training

As a matter of fact, no single basis of promotion is acceptable and applicable to all organisations.

Every basis has its strengths and weaknesses. For example, while promotion on the basis of seniority

gives satisfaction to the senior employees, it causes frustration to the talented ones.

Similarly, promotion based on merit motivates competent employees to work hard while trade unions

oppose it on the justification of its subjectivity. In India, promotion in the government departments is
made on the basis of seniority of the employees. In case of private organisations, merit is generally

used as a basis for promoting employees. Here, the promotion policy is to promote the best one

available.

Employee Promotion

If the employee is working hard, addressing all tasks expected and performing beyond expectations,
the employer may give the employee a promotion as a sign of excellence. The promotion may
indicate that the employee is ready for more responsibility in the company and is mature enough to
play a larger role in the business. A promotion may not be the result of any positive employee
performance review, as the employer may not have that option each time.

Job promotion. The advancement of an employee within a company position or job tasks. A
job promotion may be the result of an employee's proactive pursuit of a higher ranking or as a reward
by employers for good performance. Typically is also associated with a higher rate of pay or financial
bonus.

When can managers consider employees for promotion?

Promotions may occur when:

 A job opening is advertised internally as well as externally.

 A position opens unexpectedly and our company wants to fill it from within.
 An employee has consistently good performance evaluations and their manager deems them
ready for the next step in their career.
 An employee acquires a credential (licensure, degree etc.) that allows them to advance (e.g.
a Licensed Practical Nurse becoming a Registered Nurse.)

Also, our company has an updated career plan that indicates each employee’s possible career path.
Managers should take this plan into account when deeming to promote or advance their team
members.

Process for standard promotions

Our company will establish a promotion review process every [end of year.] During this process,
managers may consider selecting employees to move to a higher-level position, or a position that better
matches their skills and aspirations. Spontaneous promotions may also occur if a business need arises.

Managers should follow this process:

1. Meet with employees to talk about their career goals and/or aspirations for a promotion.
Managers should create career plans for their team members.
2. Identify opportunities to promote one or more team members, if applicable (by either filling
vacancies creating new jobs or enhancing job titles.)
3. Discuss the promotion with [HR/ direct supervisor/ department head] to receive approval.
Managers should also ask HR about the new position’s salary range and any new benefits they
should present to their team member.
4. Arrange a meeting with the employee to determine whether they’d be happy with this career
move.

Managers must keep detailed records of the process to support their decisions to promote employees.
These records may also come in handy if other employees find the decision unfair or sue the company.

Internal job posting

We encourage hiring managers to post job openings internally. Hiring teams may post the job
internally for a period of time before they post externally or post at both places at the same time.
Internal candidates may be given priority in the hiring process since they’re already familiar with our
culture and expectations.

Job postings should mention if the promotion involves relocation. Discrimination against protected
characteristics is prohibited both for internal and external hiring decisions.

Managers who post job openings internally should:

1. Consider all applications equally, based on their predetermined requirements.

2. Determine whether an internal candidate has the skills to perform the job.
3. Examine recent performance evaluations of internal candidates.
4. Interview qualified internal candidates if necessary.
5. Inform candidates whether they were selected for promotion. After the employee has accepted
the job, hiring managers should inform HR and the employee’s current supervisor, if
appropriate.
6. Keep records of the application review process and note the criteria with which they
rejected/hired an internal candidate.

Managers may often choose to expand employees’ duties, authority and autonomy without promoting
them directly. For example, a salesperson may become a team leader and a junior coder may begin
participating in engineering operations.

These changes may not always come with a formal title change. Employees may be awarded a higher
salary, bonuses or stock options. The new benefits depend on the position and are at the immediate
supervisor’s discretion.

Managers should keep an updated promotion plan in their team members’ file and discuss future career
moves during performance reviews.