Edward Lawler (2010) has found that in successful organizations, “talent management” is important, but “performance management” is even more so. Talent management is the critical factor in determining the potential performance of individuals, groups, and organizations, but the ability to manage performance is often the major differentiator between organizations that produce adequate results and those that excel. Without a focus on performance management at all levels of an organization, it is hard to see how it can find competitive advantage through its talent.
An effective performance management system needs to accomplish four things. First, it needs to define and produce agreement on what type of performance is needed. Second, it needs to guide the development of individuals so that they have the skills and knowledge needed to perform effectively. Third, it needs to motivate individuals to perform effectively. Finally, it needs to provide data to the organization’s human resource information system.
As the GM of the GE Avionics facility…now that you have created a Talent Management system (Case Study #2), how will you develop a successful Performance Management system based on the four steps outline above?
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