Performance Management and Human Capital:

The concept of human capital has been risen in the recent years. Plant machinery and forms
of capital account for true worth of organizations. The remaining part are intangible assets
which mostly cover people and intellectual property. Unlike, other forms of capital human
input is difficult to replicate as it is dependent on complex variety of motivation, management
and environmental factors.

Intellectual Capital:
It is the example of intangible assets and comprises of 3 types:

 Organizational Capital:
It is the object of knowledge management systems as organizations look for the ways to
capture, store, and share and use knowledge in a better way. It also covers patents and
copyrights that begun as individual ideas and turned into products.

 Social Capital:
It involves networks and structures that determine stock and flow of knowledge both in and
out of the organization. It involve communication and other initiatives to manage knowledge
effectively and also refers to the structure in which human capital is deployed to apply
knowledge and skills to organizational objectives.

 Human Capital:
It refers to the knowledge, skills and abilities held by the people in the organization. It can be
made by developing existing employees and attracting new staff with the required skills.

Performance management and learning:

It plays key role in helping people to learn from their experience, creating a learning
environment and receiving the support and guidance from managers. The interactions
between the managers and staff which take place throughout the year as well as during formal
reviews create opportunities for learning. It provides specific learning opportunities:
 To be developed so, that it becomes more challenging from the viewpoint of new
tasks to be accomplished.
 If additional learning takes place, agreement between managers and individuals take
place on ‘stretch goals’.
 In areas where performance is to be improved must be identified.
 Agreement is reached on how any learning needs that have been established can be
met.

Role of line Managers:

Manager’s main role is developing the staff and performance management helps to do this.
Managers take on coaching role, which progressively serves to increase understanding and
develop skills.
Performance and development reviews as learning events:
 Prior to reviews:
Before the reviews the individuals are encouraged to think about their work experiences and
their future. They are asked to express their thoughts about what they feel they want to learn,
new skills they want to acquire and direction in which they want to develop. They are also
asked to think that which training they need that could be beneficial in the current job or
helps in promotion to next level.

 During to review:
Individuals can present their views to the reviewer about what they have learned and what
they need to learn. Review meetings may also provide opportunity for coaching. The
outcome of this is personal development plan. It is important that development plans are
agreed by managers and employees.

 After to review:
Performance management goes on after the formal review. Development plans should be
followed by both managers and the individuals. When a manager asks an individual or team
to do something, discussion takes place on how it should be done and what help is needed in
the form of training or coaching. After the event an informal analysis takes place to check
what went well and what was wrong to identify any further learning needs.

Performance management and talent management:

Talent management helps the organization in attracting, retaining, motivating and developing
the talented people it needs. Performance management helps to identify those with potential
and provide basis for career development and succession planning processes.
 Performance Management
Assignment-2

Submitted by : Saba Naveed

Submitted to : Sir Rashid Ahmed
Department: IBM
Roll no. : 2017-MBA(2.5)-319