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IBT Journal of Business Studies

This article discusses the differences between performance and potential in talent management. [1] Performance can be measured and quantified based on meeting set standards, while potential is less tangible and refers to an individual's ability to develop and perform well in the future. [2] High performers may excel currently but may not be able to handle future changes, whereas those with high potential can adapt and improve over the long run. [3] It is important for talent management programs to assess both performance and potential separately, and not confuse high performance with high potential.
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0% found this document useful (0 votes)
26 views1 page

IBT Journal of Business Studies

This article discusses the differences between performance and potential in talent management. [1] Performance can be measured and quantified based on meeting set standards, while potential is less tangible and refers to an individual's ability to develop and perform well in the future. [2] High performers may excel currently but may not be able to handle future changes, whereas those with high potential can adapt and improve over the long run. [3] It is important for talent management programs to assess both performance and potential separately, and not confuse high performance with high potential.
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IBT Journal of Business Studies

performance which can be highly tangible and measureable. This is why it is difficult to
quantify and measure capacity.

Capacities whether individual, institutional or social must and do change over a


period of time (Singh, 2012)
olesome by enhancing
employee potential through development.

Potential

useful in the future and lead to success. This definition is true for individuals, organizations,
and even society as a whole. Within the context of TM, potential specifically refers to the
capacity of an individual having the ability to develop in line with the organizational goals and
prove useful when the need arises. Individual employees perceived as possessing a high level
of potential not only outperform others in different environments and scenarios but also show

objectives (Ready, Conger, and Hill, 2010).

The fact that some individuals are more talented or able than their peers is disputed by very

a selected group for key positions,


the application of strong ethical models is essential to not only groom talent but also maintain
loyalty and appropriate career development options for other employees. As a rule, a good TM
model should not only identify potential and measure performance but must also have
protocols in place to ascertain how these individuals have achieved that performance and made
their mark.

Performance

or group of a task against known preset standards of quality, quantity, cost effectiveness, and
efficiency. In other words, performance is the total effectiveness of an employee or company
against well-defined standards which include output, availability and reliability, response time,
and cost efficiency.

Many setups working under different conditions fail to clearly differentiate between the idea
of performance versus potential (Silzer & Church, 2009; Wellins, Smith, & Erker, 2009).
Performance is more tangible, relatively easily identifiable, quantifiable, measureable, and
comparatively short term. Potential on the other hand is latent, and presents the long term
ability to consistently perform and improve. High performers may be good today, but may not
necessarily be equipped to handle future changes. Because performance and potential are not
mutually exclusive, it is all too common to confuse a high-performer for a high-potential
person, and more often than not this proves costly.

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