CLC Learning and Development research points to the fact that 75% of managers believe that employee development is an integral component of their jobs, but less than half are effective at developing their direct reports. Employees reporting to managers who are effective at employee development have a 25% higher performance level, 40% higher retention level and 29% higher commitment level compared to those who work for managers who are relatively ineffective.

So what is the role of a manager in employee development, and how crucial is it to the overall talent management strategy of an organisation? A manager?s role revolves around three main areas: planning, execution and evaluation. And this, in fact, constitutes the framework for people management.

Planning requires the manager to guide the employee in setting goals, understanding performance standards and setting individual development plans. Working in the absence of goals is akin to flowing with the ebb or shooting in the dark, certainly not a setting conducive to success! Goals should not only address deliverables but also previously identified development areas. They should adhere to the SMART criteria of being specific, measurable, attainable, realistic and time-bound. For example, ?Learn new computer languages? is not a SMART goal, because it does not specify which computer language to target, by when and how to measure success. A SMART goal will be closer to ?Learn Java by Dec 2011 and implement this learning in the new project commencing in Jan 2012?. Further, as goals are inherently dynamic, they should be revisited periodically and fine-tuned to the changes in landscape, if any. Thus, it is important for the manager to lay down the performance roadmap, so the employee knows exactly where he is heading and what constitutes good performance. This would ensure that the manager and the employee are in sync with respect to expectations, and there are no surprises at the end of the year.

The role of a manager in the area of execution is to provide an environment that will set up the employee for successfully achieving his goals. This includes: (1) Providing resources, learning support and challenging assignments that are aligned to the employee?s goals. (2) Recommending learning resources like instructor-led and online training, relevant articles and Webcasts to address previously identified functional and developmental areas, not only encouraging the employee, but also setting an example himself by making time to leverage these resources. (3) Encouraging the employee to share his learning with the team through a brown bag or a lunch-and-learn session, and making an action plan for implementing it on the job. (4) Providing opportunities for applying the knowledge and skills acquired during training; for example, if the employee has attended a training programme for running meetings or making presentations, then identifying forums to enable the employee to practise the learning and giving feedback on the same. (5) Providing opportunities for cross-functional training to widen skill set, working on cross-functional projects to broaden experience, building networks and attending external events. And (6) Emphasising the importance of inculcating softer skills for career enhancement and giving insights into the organisational culture, to enable the employee to negotiate his way across the organisation.

One of the most important responsibilities of a manager is to evaluate the employee by providing ongoing feedback on performance and behaviour. Why is feedback important? Feedback is important to ensure that the employee?s performance is on track with respect to the goals, and, if any correction or alignment is required, the employee learns about it sooner rather than later. Further, feedback helps reinforce positive behaviour, and is a trigger to curb behaviour that might be detrimental to growth. Who needs feedback? Everyone. Don?t assume that good performers can be left to fend for themselves. They, too, need encouragement to keep up their good work. Unless actively managed, they may lose interest, leading to a dip in their performance. Conversely, people with developmental needs not only need awareness but also support and guidance in addressing them. How often should feedback be given? Feedback should be ongoing, not just a mid-term or an annual event. For greater impact, feedback should be given in a timely manner, at a time when the employee is in a receptive frame of mind. A manager is deemed to have failed in his responsibility if an employee hears about a performance issue for the first time at the annual appraisal!

What is the best way to give feedback? First, simply state what you have observed, objectively, with examples in a non-judgmental manner. Relevant examples are crucial as, in their absence, the conversation might degenerate into an unproductive argument. For example, a statement like ?This report is not good enough? is not only vague but also evaluative, and may not be well received. Instead, in saying that ?This report does not meet the required quality standards, as there are errors in the totals column and the formatting is not as per specifications?, one is making an objective statement, without being judgmental. Second, emphasise the impact of this behaviour on stakeholders. ?As a result, we will miss our deadline for sending it to the client, which will be detrimental to the reputation of our team?. Third, ask the employee for his diagnosis, and ideas on addressing the situation. You may add your perspective to this, but the employee will tend to take greater ownership of the action plan if it comes from him. The conversation is likely to be more successful if the feedback is given with an intention to help, not punish, and if the manager genuinely cares about the employee?s success.

The above processes constitute the crucial components of any performance management cycle run by most organisations with a varying degree of seriousness and success. While the HR department can facilitate these, the onus of developing, encouraging and retaining employees through a proficient implementation of these processes rests with the line managers. This is what positions leadership development centrally in the talent management strategy of an organisation.

The author is vice-president, learning & development, with a leading investment bank. These are her personal views