Talent Management
Performance management is a cycle, not an event
The cycle runs from aligned goals through coaching, appraisal, feedback, and development. Goals should be specific, measurable, achievable, relevant, and time-bound and should cascade from organizational objectives. Appraisal methods include graphic rating scales, behaviorally anchored rating scales, critical-incident, management by objectives, and 360-degree feedback; each trades off cost, subjectivity, and developmental value.
Rater errors to recognize
Halo and horn effect, central tendency, leniency and severity, recency, primacy, similarity bias, and contrast error. These are usually tested by scenario: match the described distortion to its label. Feedback should be timely, behavioral, and specific; development plans should be owned by the employee with manager support.
Development and retention
Distinguish training (current job skills) from development (future roles). Learning design often follows needs assessment, design, delivery, and evaluation; Kirkpatrick's levels are reaction, learning, behavior, and results. Succession planning identifies key positions and builds benches; high-potential programs and nine-box grids (performance versus potential) guide investment, but labels must not become self-fulfilling. Engagement drivers include meaningful work, growth, recognition, fair pay, and manager quality. Turnover analysis should separate voluntary from involuntary and regrettable from non-regrettable.
Traps
Do not choose the annual review when the question asks for best practice; ongoing coaching wins. Do not treat high potential as the same as high performance; they are separate axes. Do not assume a 360 is a rating tool without trained raters and a development purpose.
Worked example
An employee with strong results but low potential for larger scope is a solid contributor: retain and reward, but do not place them on a succession slate. Rule of thumb: appraisal evaluates the past, development changes the future, and a good system does both.