ILM by City & Guilds · 8725-503Mandatory unit

Unit 503: Managing people

This unit will provide the knowledge and skills required to manage teams and associated workloads, improve performance and retain talent. Learners will examine and apply a variety of performance management techniques, as well as explore opportunities to successively manage capability and work capacity across individuals to maximise the efficiency of the workforce.

In short

Unit 503 Managing people is a seven-outcome optional Level 5 unit covering performance and talent management, high performing teams, remote and hybrid working and workload management. LO1–LO4 can be met by professional discussion or written Q&A; LO5–LO7 need work products such as development plans and one-to-one records.

Level

RQF Level 5

Credit value

3 credits

Guided learning

28 hrs

Assessment criteria

27 criteria

Learning outcomes and assessment criteria

To achieve unit 503 your portfolio must evidence every assessment criterion below. There is no exam and no written assignment — you demonstrate each criterion using evidence from your own work.

Learning outcome 1

Understand the principles of performance management and talent management in organisations

  • 1.1

    Explain the difference between managing performance and talent management

  • 1.2

    Explain the importance of managing performance and talent management

    Evidence requirement: Evidence must contain at least one explanation on the importance for managing performance and one explanation on the importance of talent management.

  • 1.3

    Evaluate the use of different tools and techniques used to manage performance and talent management

    Evidence requirement: Evidence must include at least two examples of tools and two examples of techniques used. Evidence must include at least two evaluations for managing performance and two evaluations for managing talent.

    What this covers: Tools and techniques may include but are not limited to: appraisal systems, 360 feedback, key performance indictors (KPIs), SMART objectives, goal setting, Personal and Professional Development Plans (PPDP), performance dashboards, talent calibrations, Performance Improvement Plans (PIPs), coaching and mentoring.

  • 1.4

    Assess the impact of managing performance and talent

    Evidence requirement: Evidence must include at least two examples of assessing impact for managing performance and two examples of assessing impact for managing talent.

    What this covers: Impact: individual, organisational impacts short-term and long-term impacts.

Learning outcome 2

Understand how to develop high performing teams in organisations

  • 2.1

    Define the characteristics of high performing teams

    Evidence requirement: Evidence must include at least two characteristics.

  • 2.2

    Describe the actions that support the development of high performing teams

    What this covers: Actions: setting goals and objectives, conducting appraisal, identifying skills/skills gaps, collaboration, sharing knowledge and expertise.

  • 2.3

    Explain the impact of developing high performance teams

    What this covers: Impact: individual, team and organisational level.

Learning outcome 3

Understand the principles of remote and hybrid working

  • 3.1

    Examine the difference between remote and hybrid working

    Evidence requirement: Evidence must include reference to technology, location, health and safety, staff cover, lone working, wellbeing, recruitment, working hours.

  • 3.2

    Describe legislative requirements for remote and hybrid working

  • 3.3

    Evaluate the benefits and limitations of remote and hybrid working

    Evidence requirement: Learners must consider benefits and limitations to both employees and employers.

  • 3.4

    Analyse different factors influencing implementation of remote and hybrid working

    What this covers: Different factors: team dynamics, equality, contractual requirements, technology, location, confidentiality/security, resources.

Learning outcome 4

Understand how to effectively support workload management

  • 4.1

    Evaluate different types of tools and techniques that support workload management

    What this covers: Tools and techniques: planning tools, prioritisation techniques, time management tools, delegation frameworks, digital tools.

  • 4.2

    Assess the impact of workload distribution on performance

    What this covers: Impact: individual, team and organisational level positive and negative impacts.

  • 4.3

    Explain ways to monitor and adjust workload to respond to changing demands

    Evidence requirement: Evidence must include at least two ways: one of which must be a monitoring method and one must be an adjustment technique LO5 Evidence generated must include qualitative and quantitative data.

    What this covers: Ways: monitoring methods and adjustment techniques.

Learning outcome 5

Be able to manage team performance to meet operational objectives

  • 5.1

    Identify team tasks to meet operational objectives

    Evidence requirement: Evidence must include at least two tasks.

  • 5.2

    Communicate operational objectives to the team

  • 5.3

    Set team tasks to meet operational objectives

    Evidence requirement: Evidence must include at least two set tasks to meet operational objectives.

  • 5.4

    Monitor team performance against tasks set to meet operational objectives

    Evidence requirement: Monitoring could be over a minimum of 6 months with at least two reviews taking place during this period. Please refer to the RPL policy for this evidence.

  • 5.5

    Respond effectively to outcomes from monitoring activities

    Evidence requirement: Evidence must include at least two responses to outcomes from monitoring activities.

Learning outcome 6

Be able to manage individual performance

  • 6.1

    Carry out one-to-ones and reviews to discuss performance

  • 6.2

    Agree objectives to improve or maintain performance

    What this covers: Objectives should be SMART targets set and agreed that correlate with the operational plan.

  • 6.3

    Develop personal and professional development plans to meet the needs of individuals

    What this covers: For the Personal and Professional Development Plan (PPDP) it is suggested it should include but is not limited to: examples of performance management tools and techniques, assessment of strengths and weaknesses, goals – short (0–6 months), medium (6–12 months) personal and operational, action plan – specific, deadline, resources, monitoring of progress, support offered and contingency planning. Please refer to the RPL policy for this evidence.

  • 6.4

    Review the outcomes of the activities from personal and professional development plans

    What this covers: For the Personal and Professional Development Plan (PPDP) it is suggested it should include but is not limited to: examples of performance management tools and techniques, assessment of strengths and weaknesses, goals – short (0–6 months), medium (6–12 months) personal and operational, action plan – specific, deadline, resources, monitoring of progress, support offered and contingency planning. Please refer to the RPL policy for this evidence.

  • 6.5

    Respond effectively to the needs of individuals

Learning outcome 7

Be able to support talent management within own area of responsibility

  • 7.1

    Describe the types of existing talent management opportunities available

    What this covers: Opportunities may include but are not limited to: learning and development opportunities, career progression and succession planning, performance and potential identification, employee engagement and retention initiatives and technology enabled opportunities.

  • 7.2

    Review the effectiveness of existing talent management opportunities

    Evidence requirement: Evidence must include at least two reviews.

  • 7.3

    Make recommendations to improve opportunities for managing talent

    Evidence requirement: Evidence must include at least two recommendations.

How to approach unit 503

Written by our assessment team: what the criteria mean in practice, the evidence that works, and where learners get caught out.

What this unit is really about

Unit 503 is the broadest unit in the Level 5 suite — seven learning outcomes — but it is only 3 credits, which tells you the depth expected per criterion is moderate. The spec splits it cleanly: LO1 to LO4 can be achieved by professional discussion and/or written question and answer, and LO5 to LO7 through products of work such as personal development plans and one-to-one records.

That split is the plan. Book a long professional discussion for the knowledge half and collect artefacts for the practical half as you go.

The evidence that works

Learning outcomeEvidence that works well
LO1 — performance and talent managementProfessional discussion distinguishing the two, their importance, an evaluation of tools and techniques, and an assessment of impact
LO2 — high performing teamsThe characteristics, the actions that build them, and the impact when they exist
LO3 — remote and hybrid workingThe distinction, the legislative requirements, benefits and limitations, and the factors influencing implementation
LO4 — workload managementAn evaluation of tools and techniques, an assessment of how distribution affects performance, and how you monitor and adjust
LO5 — team performanceTask identification, communication of operational objectives, tasks set, monitoring records, and your response to what monitoring showed
LO6 — individual performanceOne-to-one and review records, agreed objectives, development plans, review outcomes, and responses to individual needs
LO7 — talent managementExisting opportunities described, a review of their effectiveness, and recommendations

The distinction the whole unit rests on

Criterion 1.1 asks for the difference between managing performance and talent management, and the rest of the unit assumes you have it right:

  • Performance management is about the job as it is now: objectives, monitoring, feedback, correction, and improvement against a current standard. It applies to everyone.
  • Talent management is about capability the organisation will need next: identifying potential, developing it, and retaining it. It is future-facing and often selective — which is precisely where it becomes contentious.

For LO7, the strongest Level 5 answer is critical. Most organisations have talent management that is informal, unevidenced and quietly biased towards the visible and the available. If your review finds that only office-based or full-time staff reach the development schemes, say so with evidence and recommend the fix. That is what criterion 7.3 is asking for.

One-to-one records without a confidentiality breach

LO6 needs real one-to-one and review records, which are personal data about identifiable colleagues. Anonymise to initials or "Team Member A", remove anything about health or personal circumstances, get the individual's consent, and keep performance concerns factual and behavioural. If a case is too sensitive, use a different individual or evidence via a witness testimony from your manager instead.

Useful reading

Supporting information for unit 503

Unit aim: This unit will provide the knowledge and skills required to manage teams and associated workloads, improve performance and retain talent. Learners will examine and apply a variety of performance management techniques, as well as explore opportunities to successively manage capability and work capacity across individuals to maximise the efficiency of the workforce.

Evidence requirements: LO1, LO2, LO3 and LO4 can be achieved by professional discussion and/or written question and answer, although these are not exhaustive and other valid and reliable assessment methods that demonstrate competence can be used. LO5, LO6 and LO7 can be evidenced through products of work (eg personal development plan, performance review, one-to-one review, team development plan, skills matrix and analysis, coaching plan and diary/log, recognition awards, letter of commendation, feedback (various sources), time management tools, emails, meeting minutes etc), witness testimonies, observation of performance, digital recordings of activity, although these are not exhaustive and other valid and reliable assessment methods that demonstrate competence can be used. Note: LO5, LO6 and LO7, cannot be evidenced by professional discussion or written question and answer and must be validated by authentic products of work. LO6 Evidence for this learning outcome will be generated from one individual’s performance with evidence of review (formal and/or informal) OR from two individuals if evidence from one individual’s performance does not allow all the assessment criteria to be met.

Unit guidance: It is expected that the learner will start this unit towards the beginning of their level 5 qualification in setting, monitoring, reviewing and developing an individual and team to meet objectives from a wider operational plan. This unit has been designed so the learner is able to show how they manage others effectively, including supporting, developing and growing talent, therefore, it is suggested that at least six months should be set aside to enable sufficient evidence to be generated. Please refer to the RPL policy for this evidence. The learner must be able to demonstrate their ability to manage others within a team, or across teams in an operational and/or project management role using a range of mechanisms, that shows how they have planned, supported, managed and developed an individual and team to achieve objectives from a wider operational plan. This includes how the learner will recognise and address talent within the workforce, with the potential to retain talented individuals. LO1 Managing performance and managing talent should focus on the individual, team and overall organisation. AC1.5 Assessing impact may include but is not limited to: organisational performance, employee outcomes, team dynamics and collaboration, legal and ethical considerations, alignment with strategic goals, sector-specific challenges.

Suggested learning resources: These suggestions are current at the time of publication. The following resources are provided as guidance only. Centres should select current and relevant resources and encourage learners in self-guided reading. Books Leadership and Leading Teams, Susan Wallace and Jonathan Gravells, Learning Matters (2007) The Art of Managing People: Build Trust, Improve Communication, Strengthen Performance and Lead with Confidence, Pradip Das (2025) Managing People from What Matters: The Art and Science of Guaranteeing Performance, Zanzibar Vermiglio, Adam Goldfine. Bar Code Graphics, Inc. (2024) Podcasts and blogs People Managing People, David Rice The Institute of Leadership: How to lead better by doing less and trusting more, (January 2025) Avani Prabhakar: How distributed work can unlock your potential | TED Talk Research and insights Future Trends in Leadership & Management: Shifting Priorities, The Institute of Leadership: (December 2020)

Evidencing this unit

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you.

  • Workplace documentation and records — team development plans, project implementation reports, meeting agendas and minutes, training materials
  • Video clips, up to a maximum of 15 minutes
  • Projects
  • Reflective accounts, journals and logs
  • Assessment observation
  • Witness testimonies

Where unit 503 counts

This unit sits in the ILM Level 5 Leadership and Management suite (8725) and counts towards the pathways below, from £695.

Frequently asked questions

What is the difference between performance management and talent management?

Performance management addresses the job as it is now — objectives, monitoring, feedback and improvement — and applies to everyone. Talent management is future-facing and often selective: identifying, developing and retaining the capability the organisation will need next.

How do I evidence one-to-ones without breaching confidentiality?

Anonymise to initials or 'Team Member A', remove health and personal circumstances, obtain consent, and keep performance content factual and behavioural. For sensitive cases, use a different individual or a witness testimony from your manager.

Is unit 503 mandatory?

Yes. Unit 503 is a mandatory unit — every learner on the relevant pathway must complete it.

How is unit 503 assessed?

Assessment is a portfolio of evidence, centre-devised and internally set and marked. There are no exams and no written assignments.

What evidence can I use for unit 503?

All evidence for the skills learning outcomes must be generated in the workplace or a realistic working environment, and must be valid and attributable to you. Workplace documents, projects, reflective accounts, observation records and witness testimonies are all valid sources.

Which qualifications include unit 503?

It counts towards the Level 5 Award, Level 5 Certificate, Level 5 Diploma, Level 5 Extended Diploma.