Inclusion of talent development plans in a career-development exercise is best considered an essential component of which system?

The inclusion of talent development plans in a career-development exercise is best aligned with performance management. This is because performance management systems are designed to assess, evaluate, and enhance employee performance while identifying areas for improvement and potential growth paths for employees. By incorporating talent development plans, organizations can create a structured approach to nurture and elevate individual capabilities, thus ensuring that employees are not only meeting their current job requirements but also preparing for future roles and responsibilities.

In the context of performance management, talent development plans serve as a roadmap for employees, outlining skills and competencies needed for advancement and providing the necessary training or mentorship to support their development. This alignment ensures that performance reviews are not merely retrospective but also proactive in fostering continuous growth and improvement.

The other options focus on different aspects of talent management. Compensation management relates to how employees are compensated for their work and does not directly deal with employee development. Employee engagement pertains to how invested employees feel in their roles and the organization; while related, it is more about motivation and satisfaction than development planning. Succession planning is about identifying and preparing future leaders within the organization, which may involve development plans but does not primarily center on individual performance assessment and feedback mechanisms that are core to performance management.