Talent management is a complex collection of connected HR processes that delivers a simple fundamental benefit for any organization. Basically it refers to the process of attracting highly skilled workers, of integrating new workers, and developing and retaining current workers to meet current and future business objectives.
Talent management in this context does not refer to the management of entertainers. Companies engaging in a talent management strategy shift the responsibility of employees from the human resources department to all managers throughout the organization .
The process of attracting and retaining profitable employees, as it is increasingly more competitive between firms and of strategic importance, has come to be known as “the war for talent.” Talent management is also known as HCM (Human Capital Management).
The term “talent management” means different things to different organizations. To some it is about the management of high-worth individuals or “the talented” whilst to others it is about how talent is managed generally - i.e. on the assumption that all people have talent which should be identified and liberated.
Talent management is a term that emerged in the 1990’s to incorporate developments in Human Resources Management which placed more of an emphasis on the management of human resources or talent. The term was coined by David Watkins of Softscape published in an article in 1998; however the connection between human resource development and organizational effectiveness has been established since the 1970’s.
The issue with many companies today is that their organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent. A talent management system must be worked into the business strategy and implemented in daily processes throughout the company as a whole. It cannot be left solely to the human resources department to attract and retain employees, but rather must be practiced at all levels of the organization.
The business strategy must include responsibilities for line managers to develop the skills of their immediate subordinates. Divisions within the company should be openly sharing information with other departments in order for employees to gain knowledge of the overall organizational objectives. Companies that focus on developing their talent integrate plans and processes to track and manage their employee talent, including the following:
Sourcing, attracting, recruiting and on boarding qualified candidates with competitive backgrounds ,Managing and defining competitive salaries ,Training and development opportunities ,Performance management processes ,Retention programs Promotion and transitioning. The talent management strategy may be supported by technology such as HRIS (HR Information Systems) or HRMS (HR Management Systems). Modern techniques also use Competency-based management methodologies to capture and utilize competencies appropriate to strategically drive an organization’s long term plans.
Companies that engage in talent management (Human Capital Management) are strategic and deliberate in how they source, attract, select, train, develop, retain, promote, and move employees through the organization. Research done on the value of such systems implemented within companies consistently uncovers benefits in these critical economic areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. The mindset of this more personal human resources approach seeks not only to hire the most qualified and valuable employees but also to put a strong emphasis on retention.
The major aspects of talent management practiced within an organization must consistently include: performance management, leadership development workforce planning/identifying talent gaps recruiting.
From a talent management standpoint, employee evaluations concern two major areas of measurement: performance and potential. Current employee performance within a specific job has always been a standard evaluation measurement tool of the profitability of an employee. However, talent management also seeks to focus on an employee’s potential, meaning an employee’s future performance, if given the proper development of skills and increased responsibility.

Further Readings
•Harvard Business Review
•Wikipedia