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IMPACT OF TALENT MANAGEMENT ON THE PERFORMANCE OF AN ORGANIZATION WITH
SPECIAL REFERENCE TO ABG, PIPAPAV, BHARATI SHIPBUILDING INDUSTRIES
Dissertation Submitted to the
Padmashree Dr. D.Y.Patil University Department of Business Management
In partial fulfilment of the requirement for the award of
the Degree of
MASTER IN PHILOSOPHY (BUSINESS MANAGEMENT)
Submitted by:
MISS. SHRUTI ASHOK NAIK
ENROLLMENT NO : DYP- M.PHIL- 106110018
Research Guide:
Dr. R. GOPAL
DIRECTOR & HEAD OF THE DEPARTMENT
Padmashree Dr. D.Y. Patil University
Department of Business Management
CBD Belapur, Navi Mumbai 400614
November 2012
DECLARATION
I herby declare that the dissertation ”IMPACT OF TALENT MANAGEMENT
ON THE PERFORMANCE OF AN ORGANIZATION WITH SPECIAL
REFERENCE TO ABG, PIPAPAV, BHARATI SHIPBUILDING INDUSTRIES”,
submitted for the Degree of Master in Philosophy (Business Management) at
Padmashree Dr. D.Y. Patil University’s Department Of Business Management
is my original work and the dissertation has not formed the basis for the award
of any degree, associate ship, fellowship or any other similar titles.
Place : Mumbai Signature of the Student
Date : SHRUTI ASHOK NAIK
CERTIFICATE
This is to certify that the dissertation entitled “IMPACT OF TALENT
MANAGEMENT ON THE PERFORMANCE OF AN ORGANIZATION WITH
SPECIAL REFERENCE TO ABG, PIPAPAV, BHARATI SHIPBUILDING
INDUSTRIES” is the bonafide research work carried out by Ms. Shruti Naik
student of Master in Philosophy (Business Management), at Padmashree Dr.
D.Y. Patil University’s Department Of Business Management during the year
2011-2012, in partial fulfilment of the requirements for the award of the
Degree of Master in Philosophy (BUSINESS MANAGEMENT) and that the
dissertation has not formed the basis for the award previously of any
degree, diploma, associate ship, fellowship or any other similar title.
Place: Mumbai
Date: Signature of the Guide
ACKNOWLEDGMENTS
I am greatly indebted to the Padmashree Dr.D.Y.Patil University Department
of Business Management which has accepted me for the M.Phil. program
and provided me with an excellent opportunity to carry out the present
research work.
I thank Dr. R.GOPAL, Director, Padmashree Dr. D.Y.Patil University
Department of Business Management, for giving me his valuable guidance
for the project. Without his help it would have been impossible for me to
complete the dissertation.
I would also like to thank the various people from the Shipbuilding industries
who have provided me lot of information and in fact even sharing some of
the confidential company documents and data, many of which I have used
in this report an without which this could not have been completed.
I would be failing in my duty if I do not acknowledge with a deep sense of
gratitude to my family and friends for their endless love, prayers and
encouragement. To those who indirectly contributed in this research, your
kindness means a lot to me.
Place: Mumbai Signature of the student
Date:
(Ms. Shruti Naik)
TABLE OF CONTENTS
List of Tables……………………………………………………………………...viii
List of Figures……………………………………………………………………...ix
List of Abbreviations……………………………………………………………….x
Executive Summary ………………………………………………………………1
CHAPTER – 1 INTRODUTION ………………………………………………….9
CHAPTER – 2 REVIEW OF LITERATURE …………………………………16
Research Gaps ………………………………………………………….27
CHAPTER–3 OBJECTIVE OF THE STUDY & RESEARCH
METHODOLOGY ………………………………………………………………..30
CHAPTER – 4 TALENT MANAGEMENT : DEFINITION
4.1 Talent Management …………………………………………………….......33
4.2 History……………………………………………………………………......36
4.3 Human Capital Management……………………………………………….37
4.4 From Personnel to Strategic HR to Talent Management………............39
4.5 Importance…………………………………………………………………...42
4.6 Talent Management v/s Traditional HR approach……………………….43
4.7 Key Components of Highly Effective Talent Management……………..46
4.8 Talent Management perspectives………………………………………....47
CHAPTER – 5 TALENT MANAGEMENT PROCESS
5.1 Talent Management Process………………………………………………51
5.2 Features of TM Strategy……………………………………………………53
5.3 Talent Pool…………………………………………………………………...58
5.4 Application of TM in Current Economic Condition …………………......62
5.5 Talent Dimensions………………………………………………………......64
5.6 Challenges of TM……………………………………………………………65
5.7 It starts with Talent Mindset………………………………………………..71
5.8 Manage Talent……………………………………………………………....73
CHAPTER – 6 TALENT MANAGEMENT STRATEGY
6.1 Building Successful Talent Management Strategy………………………77
6.2 Talent Management Strategy Steps………………………………………82
6.3 The Role of HR………………………………………………………………90
6.4 Talent management: trends that will shape the future…………………..92
6.5 Employee engagement means higher performance…………………….97
CHAPTER – 7 NEXT GENERATION TALENT MANAGEMENT
7.1 The Next Generation Talent Management (NGTM)…………………...104
7.2 Model of Next Generation Talent Management……………………... ..106
7.3 The role of leadership in Talent Management………………………….114
7.4 Building a Culture That Fosters Talent………………………………….122
7.5 The Talent Management Imperative………………………………….....126
7.6 Recent Studies on Talent Management…………………………………129
CHAPTER – 8 SHIPBUILDING IN INDIA
8.1 An Overview………………………………………………………………..133
8.2 Human Resource Development in Shipbuilding Industries……………134
8.3 Talent shortage in India’s Shipbuilding Industry………………………..137
CHAPTER – 9 BEST PRACTICES
9.1 ABG Shipyard Ltd…………………………………………………….. ..140
9.1.1 Talent Management at ABG……………………………………………142
9.2 Pipavav Shipyard Ltd…………………………………………………..144
9.2.1 Talent Management at PSL……………………………………...........145
9.3 Bharati Shipyard Ltd…………………………………………………….149
9.3.1 Talent Management at BSL………………………………………........150
CHAPTER – 10 DATA ANALYSIS & FINDINGS………………………….153
CHAPTER – 11 CONCLUSION & RECOMMENDATION…………...…..193
REFERENCE SECTION
Annexure -- 1 Bibliography………………………………………………… 212
Annexure -- 2 Questionnaire………………………………………………..215
LIST OF TABLES
Table: 4.6.1 The role of Talent Management…………………………44
Table: 5.5.1 Talent Management Dimensions……………………….64
Table: 5.7.1 Talent Mindset…………………………………………….73
Table: 10.1 - 10.20 Responses of Statement………………………………...154
viii
LIST OF FIGURES
Figure: 4.4.1 Evolution of HR function………………………………40
Figure: 5.1.2 Talent Management……………………………………51
Figure: 5.2.1 Stages of Development of Talent Strategy………….55
Figure: 5.2.2 The Talent Management loop………………………..56
Figure: 5.3.1 Classifications of Talents…………………………….60
Figure: 5.6.1 Challenges in Talent Management………………….67
Figure: 5.8.1 Managing Core Talents………………………………76
Figure: 6.2.1 Talent Management Strategy steps…………………82
Figure: 6.2.2 Assessment Learning………………………………...88
Figure: 6.5.1 Employee Engagement………………………………98
Figure: 7.4.1 Talent Optimization Frame…………………………..124
Figure: 10.1 – 10.20 Pie representation responses of Shipbuilding
Industries………………………………………………………………………..153
ix
LIST OF ABBREVIATIONS
TM – Talent Management.
HR – Human Resources.
HCM – Human Capital Management.
ABG – Agarwal Business Group.
PSL – Pipavav Shipyard Ltd.
BSL - Bharati Shipyard Ltd.
DWT – Dead Weight Tonnage.
SEZ – Special Economic Zones.
EOU – Export Oriented Units.
KPI – Key Performance Indicators.
IDP – Individual Development Plans.
LMS – Learning Management System.
VTS – Vessel Traffic Service.
JNPT – Jawarharlal Nehru Port Trust.
x
1
EXECUTIVE SUMMARY
In the last two decades, the issue of talent management has been increasingly
discussed. In today‘s society, it has become more and more critical to work with
talent management. Despite the growth in interest, there seems to be no clear
explanation of what talent management is and how organizations should deal
with it or implement it.
Traditionally, talent management referred exclusively to the development and
replacement of top executives. Nowadays, there is recognition that attracting
and retaining talented employees should take place on all levels within the
organization. This idea leads to a shift from the idea of one single ladder (i.e.
one talent pipeline focused only on (potential) leaders) towards the idea of
multiple talent-ladders or pipelines (i.e. talent pipelines for different kinds of
people in the organization, not exclusively leaders)
Talent management aims at improving the potential of employees who are
seen as being able to make a valuable difference for the organization, now or in
the future. Moreover, talent management should improve organizational
performance. However, talent management strongly focus on (potential)
leaders, which can cause organizations to ‗forget‘ the other groups of talents
that are critical today. This realisation had led to the use of the following
definition of talent management: ‗talent management means that an
organization tries to nurture and develop the people that are defined as having
both a high potential and ability‘.
2
Furthermore, talent management does not necessarily mean moving talents
upwards in organizations. The most important task for organizations is to make
sure talents are situated at the position that suits them best. Also, it is deemed
important that talent management is embedded in the organizational culture.
Current challenges and dilemmas in society that are related to talent
management are discussed: The first challenge is the emergence of both the
knowledge society and economy. In the knowledge economy, knowledge
represents the major resource for economic life and growth. It can be argued
that not only (potential) leaders have important knowledge, but other
employees at all levels and in all departments of the organization own it as well.
For this reason, a shift towards a multiple pipelines is growing in interest.
A second challenge for organizations is the change of the employment relation.
Whereas in the past, the employment relation used to be based on life-long
employment, nowadays, (young) employees are demanding challenging work,
as well as substantive rewards and opportunities to grow and learn. There
seems to be a more individualistic look on employment. With regard to talent
management, this means that organisations must take into consideration
several groups of talent that are becoming more and more demanding and that
value their own development.
The third challenge organizations are facing is globalisation. The world is
becoming more international and this severely influences the way business is
conducted. This has caused an increase in complexity and uncertainty. As
organizations have come to realise, international business depends on the
3
quality of top talent. This talent, however, is becoming more mobile and the
management of these talents has to be coordinated globally. Competition is
becoming more generic.
Another challenge is the increased diversity of the workforce. Because of the
ageing population, a shortage in labour supply will occur, which forces
organizations to make full use of all talent available. Therefore, organizations
are becoming more diverse in terms of workforce composition.
The challenges mentioned above show that the reasons for organizations to
become more and more concerned with talent management are manifold.
People are said to be the most critical asset for organizations and there is a
new urgent necessity to use them to the largest extent. Due to new cycles of
business growth and more complex economic conditions, organizations need
different types of talent, which leads to having different pipelines, since all
talents need to be attracted, developed, and retained. Besides leaders, other
types of talents have become critical for organizations and they need their own
forms of talent management.
After a thorough literature study, three best practice shipbuilding organizations
and several general best practices have been researched. However, it should
be underlined that the talent management practices of these organizations
cannot be implemented in every organization, since these best practice
organizations operate in specific circumstances and characteristics, yet other
organizations can learn from them. These best practices should therefore be
seen as examples, not as a clear direction that can be copied directly.
4
The Indian Shipbuilding Industry is relatively small compared to the Global
Industry with a mere 1% market-share but, the Indian players enjoy definite
advantages over their global counterparts, which are expected to help them
clock strong growth over next few decades. Currently, India has mid-sized
private shipyards viz., ABG Shipyard and Bharati Shipyard. However, there are
several new players who are in the waiting or in the process of setting up their
shipbuilding capacity in India.
As a first best practice organization, the Agarwal Business Group Shipyard
Limited (ABG) is presented. Their talent management is considered a best
practice, particularly in the following areas: ABG has a global talent
management strategy which is linked to the local business context. They
ensure line management involvement and engagement. The engagement of
the individual employee is also ensured.
The second best practice organization chosen for this dissertation is Pipavav
Shipyard Limited (PSL). According to PSL‘s talent management processes are
particularly outstanding with regard to the following: it is a top management
priority, it is linked to the business strategy and, it is an organizational aim and
permeates the culture.
Best practices regarding talent management, without focusing on one particular
organization, focus on recruitment, development, and retention. With regard to
recruitment, best practice organizations have an approach different from the
traditional approach. Best practice organizations recruit the best people and
then place them within the organization. Thus, instead of aligning people with
5
roles, they align roles with people. An emphasis is on the idea of a cultural fit,
i.e. employees‘ values should be congruent with the organizational values.
Looking at best practices in training and development, literature discusses
whether talent can and should be recruited or if talent should be developed
within an organization. The development argument is favoured, since an
employee, who is a talent in one organization, is not necessarily a talent in
another organization. However, even if an organization has a promote from
within policy and mainly recruits from within, best practice organizations still
recruit 20 to 30 percent externally, in order to avoid inward-thinking.
The third general best practice is retention. If organizations spend a lot of time,
effort, and money on the recruitment of talents and on the training and
development of these talents, they wish to retain these talents. In order to do
so, not only tangible, but also intangible rewards play an important role. These
rewards shall not only constitute money, but go further than that, i.e. the
employee should feel valued and get a sense of worth out of his or her job. It is
important to offer all talents – not only leaders – attractive career paths. If
organizations do not do this, talents might leave for the competition.
Concluding from the best practices, it is found that both organizations, although
very often referred to as best practices, focus mainly on leadership
development. Moreover, it revealed that it is particularly the alignment, and thus
the synergy of the practices of these organizations, rather than the practices
themselves that helps organizations create a competitive advantage.
6
During interviews it is revealed that when it comes to the definition of talent,
organizations use the word ‗potential‘, instead of the word ‗talent‘. The
interviewees stated that a talent is seen as a person with a great potential to
grow within a period of time. While the organizations interviewed did not have
an official definition for talent management, the interviewees have a clear idea
about how to manage their talents. Talent management is described as
important by all organizations, in order to attract, develop, and retain their
talents.
Regarding diversity, the interviewees state that for organizations, it is becoming
increasingly difficult to find people who fit the organization. The changes in the
employment relation represent a major challenge for the organizations
interviewed, in the sense that employees want personal achievements and a
sense of worth to be created by their job, instead of doing their job. Particularly,
Generation Y has strong demands regarding their work and they want
responsibility and growth opportunities.
At the end of the report, ten recommendations are given, which are based on
the literature review, best practices, and the conducted interviews. The
recommendations do not describe how to actually implement talent
management but should be seem as starting points to reflect upon and sources
of inspiration for organizations, when these organizations consider
implementing talent management or want to create multiple pipelines. The ten
recommendations are the following:
7
9
1) Talent management is not necessarily about upwards mobility.
2) Leaders are not the only crucial group anymore.
3) Organizations must this about own definitions.
4) Do not prioritize your pipelines.
5) Create supporting culture within the organization.
6) Ensure line management involvement.
7) Show the external environment what you have to offer.
8) Do not forget the non-talents.
9) Keep it as simple as possible.
10) Realise that a ROI is difficult to calculate
Concluding, it reveals that it has become very important for organizations to
think about the question whether a single pipeline approach to talent
management is still sufficient for organizations to ensure viability. For
organizations, to compete economically, a performing and motivated workforce
is crucial. The existence of multiple pipelines will lead to an increase in
individual performance and motivation. It is also said to lead to an increase in
organizational performance. Offering multiple talent pipelines is important for
organizations, because if talents are not placed in the right positions, the
organization will lose value and competitive advantage, particularly in
nowadays‘ (knowledge) society. In that sense, the most important message of
this dissertation is that it is crucial for organizations to think about multiple
pipelines when working with talent management. Also, it should be stressed
8
that multiple talent pipelines must be seen as an asset for an organization,
which is important if organizations want to achieve a competitive advantage.
9
Chapter- 1
INTRODUCTION
Before going into the discussion on Talent Management, it would be apt to
understand the word ―Talent‖. Talent in general terms refers to the
capabilities, skills or the art, a person possess in a particular field. It also
refers to those people who have high potential, scarce knowledge and skill
or who can successfully bring about transformation and change in the
organization. Such individuals are usually sought after in the market and
their contributions to the business add direct value to its strategic or
competitive positioning.
According to Leigh Branham, Vice-President, consulting service at Right
Management Consultants and author of the book says, ―Keeping People
Who Keep You in Business‖, a talent is not rare and precious. Everyone has
talent – too many to possibly name all. Talent is behavior; things we do more
easily than the next person. We speak of ―natural born talent‖ but those with
a gift, knack, ability or flair for something can refine and develop that talent
through experience. Talent, however, cannot be taught. As someone once
said, “you can teach a turkey to climb a tree, but it is easier to hire a
squirrel.”
Talent Management in an Organisation, refers to those special steps an
organization adopts to recruit, develop and retain its pool of top talent. The
steps adopted should normally be creative and should not project
bureaucracy. Talent Management also denotes a deliberate approach taken
10
up by an organization to attract, develop and retain people with the aptitude
and abilities to meet not only the current requirements but also future
organizational needs.
As business searches for new and/or better means of achieving competitive
advantage, the capacity of every functional area to improve organizational
performance is under scrutiny. As a result talent management strive to
develop and retain high potential employees, and thus provide organizations
with managerial talent source and competitive human resource advantage
which impact organization performance.
The logic behind talent management is based on the fact that businesses
are run by people. Processes, technology and capital are important but it is
people who make the decisions. It‘s people who create value by using these
corporate assets to create products an organization has, the better it will
perform. This is the rational behind talent management to attract, develop
and utilise the best brains to get superior business results.
The future of most businesses is reliant on the acquisition, development and
retention of talented people to create the leadership capacity and talent
required to implement new strategies so as to meet current and future
business needs.
The need fo talent and its expert management is always a difficult challenge
as it involves tomorrow‘s star and ensuring they live up to exceptations. This
need for talent is also driven by macro trends including:
11
o New cycles of business growth, often requiring different kinds of talent.
o Changing workforce demographics with reducing labour pools and,
therefore a talent squeeze.
o More complex economic conditions which require segregated talent and
talent management.
o Job mobility is increasing, as a result top performers change employers
more than twice in their full careers.
o A global focus on leadership which is now permitting many levels of
organization.
As a result of these macro trends workplaces everywhere are facing an
increasingly complex and ever- changing landscape in their efforts to
acquire, retain, motivate and develop the talent needed to keep
organizations operating efficiently and competitively so as to create long
term organizational success.
It has never been more critical to evaluate talent management through a
sharp eye and a critical lens. As the economy moves toward a tepid uplift,
the more prepared organizations have remained flexible, creative,
responsive, and have not lost sight of the importance of talent management.
In fact, they are evaluating existing talent management strategies and
activating new or enhanced talent management programs.
In today‘s volatile business market, effectively managing human capital can
play a crucial role in business success. Talent management has become a
top priority for organizations. It is also an area where there is much room for
12
improvement. There is debate in the profession as to how to define talent
management. For the purpose of this study, we defined talent management
as a holistic approach to optimizing human capital, which enables an
organization to drive short- and long-term results by building culture,
engagement, capability, and capacity through integrated talent acquisition,
development, and deployment processes that are aligned to business goals.
People are the last weapon of competitive advantage in the global market
today. No matter your industry, company, or nationality, there is a battle-
ready competitor somewhere who is busy thinking how to beat you. Products
can be quickly duplicated and services cheaply emulated – but innovation,
execution, and knowledge cannot. The collective talent of an organization is
its prime source of its ability to effectively compete and win. In the new
economy, competition is global, capital is abundant, products are developed
quickly and cheaply, and people are willing to change jobs often.
In this kind of environment smart, committed, experienced people who are
technologically literate, globally astute, and operationally agile are the new
competitive advantage. And even as the demand for this talent goes up, the
supply of it will be going down. As a result, an unprecedented shift is
occurring.
Organizations are increasingly recognizing the need to radically change the
role of their Human Resource function. Today, there is a progressive
movement to transform the HR function and establish a Human Capital
Management (HCM) environment that truly leverages the workforce as a
13
competitive weapon. Organizations leading the way in HR transformation are
focusing less on administrative aspects and more on strategic issues.
Talent management tops the list as a strategy for radically improving
workforce productivity to drive higher value for the organization. Today, most
organizations are struggling to understand the characteristics, enabling
technologies and definition of talent management. While they know how to
administratively recruit, retain and replace, they struggle with the strategic
elements of managing talent. The process of managing the supply and
demand of talent to achieve business goals, represents one of the greatest
opportunities for organizations to not only overcome these critical issues,
but most importantly, survive and thrive for years to come.
In today‘s talent-hungry market scenario, one of the greatest challenges that
organizations are facing is to successfully attract, assess, train and retain
talented employees. Talent Management encompasses in itself the entire
process of Planning, Recruiting, Developing, Managing, and Compensating
employees throughout the organization. Organizations have realized the
need for talent management and are now focusing to develop and retain the
existing talent in their organization rather than trying to acquire a new talent
because the cost of identifying, developing and retaining the talent internally
is more cost effective instead of replacing the talent which is lost from
external market.
Though it may appear initially that in the process of retaining talent, we are
spending more interms of increased wages, rewards and recognition, when
14
we practically analyze,the cost of acquiring a new talent is higher. Apart from
higher cost of acquiring the new talent it has to additionally face the initial
hiccups of this new employee getting along with the organizational goals and
strategies.
Every business unit is making sure that they can respond and withstand the
challenges of talent crisis by developing an effective talent management
strategy like identifying the key talented people in the organization,
cultivating and developing the skill of their present workforce and retaining
highly talented employees by protecting them from competitors.
Workforce planning translates business strategy into talent management
activities. Each company needs to understand the problem it faces, estimate
the gaps in its industry and determine the skills it needs to meet business
objectives. The direction in talent management is to a fact-based
understanding and prioritization of what is needed. It's important not to adopt
individual processes and tools in isolation from others. Talent Management
is a new, more holistic approach to HR.
Talent Management is beneficial to both the organization and the
employees. In these days of highly competitive world, where change is
the only constant factor, it is important for an organization to develop the
most important resource of all - the Human Resource. In this globalized
world, it is only the Human Resource that can provide an organization the
competitive edge because under the new trade agreements, technology can
be easily transferred from one country to another and there is no dearth for
15
sources of cheap finance. But it is the talented workforce that is very hard to
find. The biggest problem is how to retain the present workforce and stop
them from quitting?
16
Chapter- 2
LITERATURE REVIEW
A detailed survey of the concerned literature has been carried out based on
various journals, reviews concerned magazines and internet and presented
below: Any Organization needs to have a vision and a well defined strategy
on hiring for the future. The fundamental aspects about the definitions of
human recourses have been discussed and planning of new models has
been discussed. The need to disband the conventional school of thoughts
about organizational behavior has been advocated and a new approach has
been suggested for HR [ANANDARAM, 2007.]
Berger and Berger (2003) explains a simple and practical approach to the
identification, assessment and management of talent in the current, dynamic
operating business environment. The book plainly gives advice on how to
avoid high staff turnover and poor morale Ed Michaels (2001) argues that
Talent Management is becoming critical. ATalent Management Mindset
should be in stilled in managers throughout the organization. Ed Michaels is
a recently retired McKinney and Company Director, in Atlanta, Georgia.
Doris Sims, Matthew Gay(2007) are interested in the steps and decisions
involved in the creation and implementation of talent management
programs? A step-by-step instruction for starting a Talent Management
programs from scratch, or taking an existing program to the next level is
comprehensively explained by the authors Allan Schreyer( 2004) opine that
Internet has created more confusion than solutions for the world of recruiting
17
and talent management. It has certainly made things more complex. HR
professionals and even company presidents have become desperate for
clarity on the future of talent management.
Taylor (2007a) states that most definitions give a definition of what TM
should consist of, instead of saying what it is. Therefore, he came to the
following definition: ―[t]alent management is making capabilities fit
commitments‖ (Taylor, 2007a). He suggests that his definition is focusing on
the aim of TM and he further argues that TM should not be seen as an
individual aim but as an aim of the organization as a whole. TM should help
the organization to ensure that it is able to do what it is set out to do today,
but also in the future.
William J. Roth well, H.C. Kazanas(2003) ignites the imagination, expands
the possibilities, and offers practical strategies any organizations can use to
effectively develop, retain and utilize talent for the benefit of an organization
and enter the fluid, flexible future. Managers at all levels will
cheer the sanity Roth well suggests.‖
The Taleo Research report on Hidden return on investment (ROI) of Talent
Acquisition & Mobility gives a picture of the economic impact of talent
acquisition and mobility and shows the opportunities for cost reduction and
improved corporate performance.
KARTHIKEYAN J (2007), argues that Organization need to have a vision
and a well defined strategy on hiring for the future. They are of the view that
18
whether we have the right talent within to attract and retain the best available
talent.
Hartley (2004), Talent Management is an expression that extends over a
wide set of activities, such as succession planning, HR planning, employee
performance management etc. Creelman (2004) gone further by describing
the term as a perspective, or a mindset, where all corporate issues are seen
from the perspective of ―how will this affect our critical talent?‖ and ―what role
does talent play in this issue?‖ Creelman defines TM as; ―The process of
attracting, recruiting and retain talented employees‖ Creelman ( 2004: 3).
Michaels et al,. (2001) have a similar definition: ―Talent management is
about attracting, developing and retaining talented individuals in the
organization.‖
Laff, (2006) Talent Management is not only a new word for sourcing and
developing employees. It requires a dynamic integration between many
processes Cunningham, (2007). (Laff, 2006; Uren, 2007) argued that one of
the main factors to implement successfully Talent Management in the
organization is the permanent commitment from all organization's levels and
cannot be implemented and done only by HR, if so it would unable to react
when necessity demand to changes in the organization.
Heinen and O‟Neill (2004), Talent Management is one of the most effective
ways to achieve a durable competitive advantage. The question here is how
long can the organization sustain its competitive advantage and keep the
knowledge base isolated from competitors. An example of an isolating
19
mechanism is when a knowledge based should be embedded within the firm
and not tied to specific individuals
Nonaka and Toyama (2005) argues that knowledge is transferred to the all
levels of the organization all the way through a process that includes
socialization, externalization, combination, and internalization.
Grigoryev (2006) not only employers but also employees are becoming more
aware of the fact that there are some skills and characteristics which are
essential to function properly in the workplace.
(Branham, 2000; Schweyer, 2004) found that most of the organizations
recruit externally rather than finding inside talents. This possibly happens
because managers avoid retaining their best functional individuals so they
will not risk losing them to competitors.
Von Seldeneck, (2004) the best time to recruit key people is in a slowing
economy. Since highly talented people would predisposition in order to
manage their environment, a firm might utilize such situation by providing
new compensations schemes and challenging packages that are tailored for
key Talents, simultaneously; other organizations would be dormant in
locating talented people. The internal human capital is essential to attract
talented people from competitors. Thus they should have the vision, passion,
integrity and ability to create an environment that will draw people in.
Branham, (2000) agrees that recruitments are too expensive and it is
essential that the new staff should stay for long time. According to Dalziel,
20
(2004) a major factor of recruitment failure is due to wrong recruitment
practices that are based on credentials which considered poor predictors for
performance. The successful recruitment recipe is ―Hiring for Competencies‖
which considered a main building block that Talent Management relies on.
Cunningham (2007) identified two broad strategic choices to take into
consideration the alignment of people with roles or, alignment of roles with
people in the process of recruiting. The first choice discusses of matching
possible candidates to asset of already approved job roles. This option will
allow many factors to control performance; such as, Selection, recruitment,
placement and promotion, all of which help recruiting and placing talents
where they are most effective. Promotion in this case depends on the
amount of development and learning achievements one contributes. On the
other hand, the second choice explains the opposite idea that allies roles
with people. This choice focuses on the people selected first and the roles
will adapt to those people‟s distinctiveness. Whenever organizations have
hard time finding the right person in terms of capability, they have the option
of hiring someone who enjoys much impressive learning strengths in
comparison to his capabilities. The fast learning advantage will allow the
person to quickly develop and be trained to perform well.
Cunningham (2007) further discussed the difference of Talent Management
regarding aligning roles with people; he explains that it relates to enhancing
performance through adapting the roles in the work environment. The role
has a broad prospective as it includes the relationships with others in
21
addition to a list of tasks, job description and responsibilities. It's related to
the working environment where people enjoy sufficient interaction among
each other by sharing experiences that help in the overall development
through daily work. All the previous depends on organization design that is
essential in providing special inspiring programs to talented individuals for
effective retention. Rewards can vary; monetary or non monetary, are
considered a supporting factor, in addition, the working method applied
influences potential development. People confined to routine work are
unlikely to contribute with more than work and this inhibits development. If
someone in a limited role that consists of minor duties, they would be a bit
restricted in the routine process due to the lack of opportunities that will
allow such people to broaden their perspective and cause positive progress.
Busi & Bitici, (2006) Performance Management and Performance
Measurement are used to assess Talent Management. Performance
Measurement is a technical and practical task to assess staff performance
and Performance Management is a concept where the results of
Performance Measurements are being used and identified
Frank & Taylor (2004) pointed out that it is an essential part in the Talent
Management to provide learning and performance improvement of high
performers. Ordonez de Pablos (2004) argues that it is important to have
internal system of HRM in order to make knowledge, capabilities and skills of
the firm's human capital protected and valuable. Among the benefits that
Human Resource Management System covers are: promotion-from within,
comprehensive training and skill based pay. Based on performance
22
management systems, Frank and Taylor (2004) foresee that staff will receive
custom made responses to skill weaknesses continuously.
Michaels, Handfield-Jones and Axelrod (2001) states that while not
everyone can become a superstar in the organization, they can standout by
challenging themselves and by being more dedicated to their work, and that
is what the development programs are for. Adapting those programs,
organizations will attract Talents, retain talented staff for longer time and
would have better performance in the long run.
As Lawler, (2005) mentioned the main purpose of integrating HRM and
strategy is to make human capital to be a strategic differentiator. According
to Laff‟s (2006) study for different CEOs, Talent Management is the best
way to secure a competitive advantage.
According to Heinen and O‟Neill (2004), Talent Management is one of the
most effective ways to achieve a durable competitive advantage. The
question here is how long can the organization sustain its competitive
advantage and keep the knowledge base isolated from competitors. An
example of an isolating mechanism is when a knowledge based should be
embedded within the firm and not tied to specific individuals.
Branham (2000) agrees that recruitments are too expensive and it is
essential that the new staff should stay for long time. According to Dalziel
(2004) a major factor of recruitment failure is due to wrong recruitment
practices that are based on credentials which considered poor predictors for
23
performance. The successful recruitment recipe is ―Hiring for Competencies‖
which considered a main building block that Talent Management relies on.
According to (Schweyer, 2004) A Talent Management System puts useful
means in the hands of HR professionals that enable them to gather, process
and evaluate volumes of data related to high potentials and other staff. Laff
(2006) argues that with the presence of the new technology the talent
management will no longer be only for the top management but it will down
to the end of the organization hierarchy. Therefore the organization in this
case can assess its entire staff to find potential staff
Michaels et al. (2001) attribute great importance to coaching as a part of the
new paradigms o development, backed by Thach (2002), they all agree on
the great influence the coaching has on effectiveness. Staff should be aware
of their strengths and the areas where they can excel in order to develop in
the best manner. Further, if there is no feedback given to highly talented
people there will be a chance of derailment and lack of practices might
become harmful to a business. Staff should have the feedback in order to let
them be aware of the areas that need to be improved. Coaching help
patching up these misinformed areas by providing the needed knowledge
along with support and guidance presented by a positive feedback.
Coaches‟ experience is the core of this process where storytelling is used
as a communicative approach. If followed, the process will add to the
popularity of the manager who will become much respected and likable
person when he or she can coach and relieve (Michaels et al., 2001).
24
Further, Michaels et al. (2001) believe that leaders, who brilliantly offer
fundamental development tools like coaching and feedback, should offer
them in both verbal and written forms. Adapting an assertive yet authentic
style, managers can direct ways of growth and improvement.
According to Frank, and Taylor (2004) the concept of Employee retention
says that the employer should try to preserve his/her desirable employees
and so they can achieve company‟s objectives. Herman (2005) discusses; a
retention plan that preserves redundant loss of human and intellectual
wealth this concept aims to guarantee the stability and productivity among
the workforce as well as cut the costs of employee turnover.
According to Herman‘s research, there are five reasons why people quit; all
of which depend on communicative factors except for the fifth one, which is
compensation. Most of people quit their jobs due to lack of positive
reinforcement and inspiring feedback from managers, which makes them
feel discouraged and unappreciated for their services. These theories are
backed up by Frank and Taylor (2004) and Benjamin (2003) they rank poor
management as the number one reason behind the employees leaving.
Frank (2004), most of the workforce does not engage itself which shows a
vivid relation to Talent Management where only the top talents are mostly
the engaged workforce in a firm. (Frank et al., 2004) engagement has been
developed from classic motivation theories. Intrinsic motivation was about
making someone doing something for its own sake and not in order to
receive a reward, which is in line with engagement (Frank et al., 2004).
25
Motivation is also a part of several definitions of Talent Management (e.g.
Heinen & O‟Neill, 2004; Schweyer, 2004)
Branham (2000) provided a survey that shows that pay ranks are lower on
the scale of employee commitment and incentive. However, Heinen and
O‟Neil (2004) point out the importance of rewards for Talent Management
practice. A fact is backed up by Branham‟s (2000) states that when pay
given according the performance of the employees, it acts like a powerful
stimulant for people who are apt to perform at high levels in the organization.
Arthur & Rousseau (1996), which is increasingly important. Life-long
employment in a single organisation is not anymore the prevailing career
pattern, as career mobility is no longer considered only within one‘s
organizational hierarchy. Each employee has a critical role in determining his
or her career path and success
Richard Palmer (2002) A structured route to the making most of the ―human
capital‖ in an organization by taking a holistic approach to staff
development and organizational success. With case studies and
techniques for developing the staff skill base at low cost the book is also
suited for these cost conscious times.
PANDIT Y V L (May 2007) Focusing on the challenge of attracting and
retaining talent faced by Indian HR mangers, the article outlines initiative that
can be put in place to help organization retain nurture and retain the talent.
26
Tony Davis (2007) Talented and ambitious people will only stay with
their current employer if they are offered positive development, motivation
and nurturing to ensure they are given every chance of realizing their
potential. This book shows how to manage the needs of the individual
employees and those of the organization in parallel.
Andrew Munro (2005) This text is a response to the increasing relevance
of proactive succession management but the widespread difficulty of making
it happen. The author focuses on the business realities of succession
management rather than provide a conceptualisation of how it might work
in principle.
Ashton & Morton (2005). Practicing TM as a strategic and value-adding
instrument means ―responding to strategic or environmental demands with
high quality HR practices.‖
Taylor (2007). TM should be embedded in the organizational culture and not
be something just the management of an organization attempts to do (Stahl
et al., 2007). In our opinion, when TM is embedded in the culture, it is more
likely to become something everyone in the organization stands for, which
also gives it a bigger chance to be successful. Also, we believe that
embedment of TM is important for the improvement of the organization:
when TM is embedded in the culture, it is not only about profit, but it will be
used as something to better the overall wellbeing and performance of the
organization, i.e. with TM, organizations attempt to gain more than just an
increase in profit. Profit is still important, but it is not the only goal. Therefore,
27
it should be seen as a mindset (i.e. talent-mindset), not just as a practice
(Duttagupta, 2005). This mindset should be embedded in the whole
organization. TM is the belief that talent can differentiate an organization
from others by its culture and can cause a competitive advantage, both for
the organization as well as the individual (Paquet & Rogers, 2008).
Coleman (2005) argues that TM is more than an HR process, since it
requires an integrated and holistic approach. Organizations should realise
that talent might remain hidden and dormant if it is not developed, even
though it can be seen as a natural ability. Organizations need to pay
attention to the subject as a separate issue and not just see it as leadership
development, which fits our elitist definition of talent. TM has also been used
interchangeably with ‗human capital management‘ (Taylor, 2007b). While the
concept of TM incorporates that an organization has to see its employees as
a valuable asset, TM is focused on the individual. In contrast, human capital
management has an aggregate view and is focused on the overall value of
human asset (Taylor, 2007b). We agree with the above, since our definition
of talent focuses on specific individuals, whereas human capital
management includes all employees. It is our stance that everyone can be
an asset, but not everyone is a talent.
RESEARCH GAPS
In this technological era, there was a bubble, which made the most talented
to shift from traditional to Information Technology. But, today they are
coming back to their old economy companies. This recession created a big
gap between the supply and demand of talent resulting in over-supply of
28
technical people in comparison with demand, and under-supply of multi-
talented work force over demand. This situation made organizations to move
towards poaching. To overcome this problem, companies have to follow the
best retention strategies. Another development that took place in recent
years was that of contract job opportunities, that is outsourcing. Here the
recruits may have the talent, but commitment will be less because of lack of
sense of belongingness.
The potential of talent management should not be ignored. A talent
management strategy will improve organizational performance through
better identifying, sourcing, developing, rewarding, motivating and retaining
the talent that keeps the firms ahead of competitors.
The following have been observed as the research gaps
Financial and non-financial parameters to be considered in measuring
talent of the employee
Neglect of the Organization Culture; Work-life balance of the employee is
not given due importance,
Greater emphasis is laid on the top level managers and their retention
strategies. But, not much importance is given to the study of problems of
non-Executive Level Employees,
There has been a larger degree of research about talent management in
the western context. Not much work has been done in Indian context.
29
Hence, this research particularly studies that how important is to manage the
talent. The only obession is to adapt proper talent management techniques
in an organization for effective utilization of resources & their best possible
efforts.
30
Chapter- 3
OBJECTIVE OF THE STUDY & RESEARCH METHODOLOGY
STATEMENT OF PURPOSE
The purpose of this study is to find out the effect of Talent Management for the
middle – level employees in shipbuilding organization i.e ABG, Pipavav,
Bharati Shipyard. Secondly, the research focuses on the study the major effect
of recruitment on the middle - level employees of ABG, Pipavav, Bharati
Shipyard in creation of Human Capital which will ultimately result in company‘s
growth.
OBJECTIVES OF THE STUDY
1. To understand the need of Talent management.
2. To understand the role of leadership in attracting, managing and
retaining talent.
3. To study the use of Talent Management in various functions of Human
Resource.
4. To identify various challenges of Talent Management.
5. To study the impact of talent management on the performance of an
organization with special reference to ABG, Pipapav, Bharati
shipbuilding industries
RESEARCH METHODOLOGY
A systematic study of methods having application within a discipline for
human activity with a aim of discover, interpret and revise knowledge.
Research is common parlance refers to a search for knowledge. “All
31
progress is born of inquiry. Doubt is often better than over-confidence,
for it leads to inquiry, and inquiry leads to invention.” Increased amount
of research make progress possible.
PRIMARY DATA
For the purpose of collection of primary data questionnaire was prepared.
Questionnaire was made for HR professionals & the employees involve with
the talent management in the organization.
QUESTIONNAIRE:
The researcher focused on a comprehensive set of workplace practices that
influence employee motivation, commitment and willingness and desire to
achieve at work. The researcher identified these practices and a deep
understanding of typical organizational programs to ensure that the
questionnaire covered the broadest spectrum of tangible and intangible
aspects of the work environment. As a result, the questionnaire included
items about the full range of rewards practices, leadership and management
effectiveness, communication, culture and attributes related to these tangible
and intangible aspects.
The talent management initiative is taken by the HR professionals but the
implication of this initiative is on the employees. By this questionnaire, the
researcher tried to find out the effectiveness of such talent management
initiative as well as the satisfaction level of the employees. Personal
approach, surveys, mails, telephonic discussions and meetings with different
employees of all the three Shipbuilding companies.
32
SECONDARY DATA
Secondary data such as internal to the firm HRD documents Papers and
external to the firm such as published dats or commercially available data.
Sources of Secondary Data are:
Journals
Research Papers
News Papers
Websites
Magazines
Books
SAMPLE SIZE: 250
A comparative study of talent management has been done in ABG Shipyard,
Pipavav Shipyard and Bharati Shipyard. The respondents were both senior
level managers as well middle level. Senior level managers include HR
managers and middle level includes executives. The sampling technique
was judgmental and the research tool are questionnaire.
STATISTICAL TOOLS:
Statistical Analysis has been done using Microsoft Excel.
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Chapter – 4
TALENT MANAGEMENT : DEFINITION
4.1 TALENT MANAGEMENT
Talent management is a professional term that gained popularity in the
late 1990s. Talent management implies recognizing a person's inherent
skills, traits, personality and offering him a matching job. Every person has a
unique talent that suits a particular job profile and any other position will
cause discomfort. It is the job of the Management, particularly the HR
Department, to place candidates with prudence and caution. A wrong fit will
result in further hiring, re-training and other wasteful activities.
Talent management refers to the process of developing and integrating new
workers, developing and retaining current workers, and attracting highly
skilled workers to work for your company. 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”.
The present scenario with abundant opportunities has triggered a wave of
employees, perpetually ―on the move‖, forever seeking better opportunities
whenever, wherever and however they can. What is behind the
restlessness of these hard to keep employees? By focusing on productivity,
organizations are realising that it is imperative to hire employees who
can do the job and be successful at it. The organization no longer wants to
just hire to hire, in fact they are striving to find the right people, bring
34
them into the organization and retain their services. One of the critical
functions of HR is a sound Human Resource Planning through which they
are able to project the demand for human resource and thereafter
formulate strategies for acquiring them.
As the leading HR heads of the country point out, the solution is not just
about finding the correct retention mechanisms, but it starts from the very
beginning by devising ways to acquire the right people for the right jobs.
DEFINING TALENT MANAGEMENT
A conscious, deliberate approach undertaken to attract, develop and retain
people with the aptitude and abilities to meet current and future
organizational needs.
Talent management involves individual and organizational development in
response to a changing and complex operating environment. It includes the
creation and maintenance of a supportive, people oriented organization
culture.
Traditionally, organizational growth has been enabled by hiring more people.
However, today‘s economic environment requires that the productivity of
existing workers increase before new headcount is considered.
Organizational growth has transformed from “quantity of talent” to
“quality of talent.” A term that has suffered from significant abuse and
misuse over the past few years, talent management is more adequately
defined as:
35
A continuous, integrated process that helps employers to:
Effectively plan talent needs.
Attract the very best talent.
Speed time to productivity.
Motivate the right behavior.
Develop targeted capabilities and knowledge.
Retain the highest performers.
Enable talent mobility across the organization.
In short, Talent management is the integrated process of ensuring that an
organization has a continuous supply of highly productive individuals in the
right job, at the right time. Rather than a one-time event, talent management
is a continuous process that plans talent needs, builds an image to attract
the very process that plans talent needs, builds an image to attract the very
best, ensures that new hires are immediately productive, helps to retain the
very best, and facilitates the continuous movement of talent to where it can
have the most impact within the organization. The goal of the talent
management process is to increase overall workforce productivity through
the improved attraction, retention and utilization of talent.
The talent management strategy is superior not just because it focuses on
productivity, but also because it is forward looking and proactive, which
means that the organization is continuously seeking out talent and
opportunities to better utilize that talent. It produces excellent results
because it overcomes the major problem of traditional recruiting, which is
isolation. It instead integrates the previously independent functions of
36
recruiting retention, workforce planning, employment branding, metrics,
orientation and redeployment into a seamless process.
Talent Management is a strategic and holistic approach to both HR and
business planning or a new route to organizational effectiveness. This
improves the performance and the potential of people – the talent –
who can make a measurable difference to the organization now and in
future. And it aspires to yield enhanced performance among all levels in the
workforce, thus allowing everyone to reach his/her potential.
4.2 HISTORY
Talent management is a term that emerged in the 1990s 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.
Many companies commit the mistake of putting an effort in attracting the
best employees but fritter away this valuable resource by not making any
effort to develop or retain them. Companies have initially thought of talent
management as a means to solve high employee turnover. In course of time
it has become part and parcel of the corporate strategy itself with a key
responsibility placed on the line managers. One cannot wish away the fact
that these managers have to play a pivotal role in nurturing the talents and
skills of those reporting to them.
A talent management system must be worked into the business strategy
and implemented in daily processes throughout the company as a whole. It
37
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 and recruiting qualified candidates with competitive
backgrounds.
Managing and defining competitive salaries.
Training and development opportunities.
Performance management processes.
Retention programs.
Promotion and transitioning.
Talent management is also known as HCM (Human Capital Management),
HRIS (HR Information Systems) or HRMS (HR Management Systems), and
HR Modules.
4.3 HUMAN CAPITAL MANAGEMENT
Companies that engage in talent management (Human Capital
Management) are strategic and deliberate in how they source, attract,
38
select, train, develop, retain, promote, and move employees through the
organization. Employees touch every aspect of your business. It's time your
human capital management system supported all your employee
interactions. From recruitment to retirement, from stable economies to
rapidly changing environments, you need to track, manage, and analyze
employee programs, policies, and cost.
Human capital is vitally important for an organization's success (Crook et al.,
2011); human capital increases through education and experience.
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. Since the initial
hiring process is so expensive to a company, it is important to place the
individual in a position where his skills are being extensively utilized.
The major aspects of talent management practiced within an organization
must consistently include:
Performance management
Leadership development
Workforce planning/identifying talent gaps
Recruiting
39
This term "talent management" is usually associated with competency based
human resource management practices. Talent management decisions are
often driven by a set of organizational core competencies as well as
position- specific competencies. The competency set may include
knowledge, skills, experience, and personal traits (demonstrated through
defined behaviors). Older competency models might also contain attributes
that rarely predict success (e.g. education, tenure, and diversity factors
that are illegal to consider in relation to job performance in many
countries, and unethical within organizations).
4.4 FROM PERSONNEL TO STRATEGIC HR TO TM
To understand why Talent Management has become so important must look
at the evolution of corporate HR:
Stage 1: Personnel Department
In the 1970s and 1980s the business function which was responsible for
people was called "The Personnel Department." The role of this group was
to hire people, pay them, and make sure they had the necessary
benefits. The systems which grew up to support this function were batch
payroll systems. In this role, the personnel department was a well
understood business function.
Stage 2: Strategic HR
In the 1980s and 1990s organizations realized that the HR function was
infact more important - and the concepts of "Strategic HR" emerged. During
this period organizations realized that the VP of HR had a much
40
larger role: recruiting the right people, training them, helping the business
design job roles and organization structures (organization design), develop
"total compensation" packages which include benefits, stock options and
bonuses, and serving as a central point of communication for employee
health and happiness.
The "Head of Personnel" became the "VP of HR" and had a much more
important role in business strategy and execution. The systems which
were built up to support this new role include recruiting & applicant tracking
(ATS), portals, total compensation systems, and learning management
systems.
In this role, the HR department now became more than a business function:
it is a business partner, reaching out to support lines of business.
Source: (http://joshbersin.com/2007/06/01/talent-management)
Figure 4.4.1: Evolution Of HR Function
41
Stage 3: Talent Management
We are now entering a new era: the emergence of "Talent Management."
While strategic HR continues to be a major focus, HR and L&D
organizations are now focused on a new set of strategic issues:
o How can we make our recruiting process more efficient and effective by
using "competency-based" recruiting instead of sorting through
resumes, one at a time?
o How can we better develop managers and leaders to reinforce culture,
instill values, and create a sustainable "leadership pipeline?"
o How do we quickly identify competency gaps so we can deliver
training, e-learning, or development programs to fill these gaps?
o How can we use these gaps to hire just the right people?
o How do we manage people in a consistent and measurable way so that
everyone is aligned, held accountable, and paid fairly?
o How do we identify high performers and successors to key positions
throughout the organization to make sure we have a highly flexible,
responsive organization?
o How do we provide learning that is relevant, flexible, convenient, and
timely?
These new, more challenging problems require new processes and
systems. They require tighter integration between the different HR silos –
and direct integration into line of business management processes.
Today organizations are starting to buy, build, and stitch together
42
performance management systems, succession planning systems, and
competency management systems. The HR function is becoming integrated
with the business in a real-time fashion.
4.5 IMPORTANCE
GLOBALIZATION :- Now for any jobseeker the whole world is the potential
place to find employment. One can know the opportunities available in any
part of the world easily and the number of talent seekers has also increased.
INCREASED COMPETITION :- Increased competition in the market
place has necessitated the need for consistently good performance on
the side of organizations. These have made the companies to put in all
efforts to hire and retain the best talent in the respective field of operation.
INCREASING KNOWLEDGE :- The knowledge era has necessitated the
retaining of those talents which have the ability to assimilate new
technologies and knowledge, which are growing at a pace never seen
before. Talent management (TM) brings together a number of important
human resources (HR) and management initiatives. Quite often,
organizations adopting a TM approach will focus on coordinating and
integrating:
RECRUITMENT:- Ensuring the right people are attracted to the
organization.
RETENTION: - Developing and implementing practices that reward and
support employees.
43
EMPLOYEE DEVELOPMENT: - Ensuring continuous informal and formal
learning and development.
LEADERSHIP & "HIGH POTENTIAL EMPLOYEE" DEVELOPMENT :-
Specific development programs for existing and future leaders.
PERFORMANCE MANAGEMENT: - Specific processes that nurture and
support performance, including feedback/measurement.
WORKFORCE PLANNING: - Planning for business and general changes,
including the older workforce and current/future skills shortages.
CULTURE: - Development of a positive, progressive and high performance
"way of operating".
An important step is to identify the staff or employees (people and positions)
that are critical to the organization. They do not necessarily have to be
senior staff members. Many organizations lost a lot of "organizational
knowledge" in the downsizing exercises of a few years ago. The impact of
the loss was not immediately apparent. However, it did not take long for
many companies to realize their mistake when they did not have people
with the knowledge and skills to either anticipate or solve problems that
arose.
4.6 TALENT MANAGEMENT V/S TRADITIONAL HR APPROACH
Traditional HR systems approach people development from the perspective
of developing competencies in the organization. This can actually be a risk-
prone approach, especially for companies operating in fast evolving
44
industries, since competencies become redundant with time and new
competencies need to be developed. Thus, over time, the entire approach
to development of people might be rendered obsolete calling for rethinking
the entire development initiative.
Talent management on the other hand focuses on enhancing the potential
of people by developing capacities. Capacities are the basic DNA of an
organization and also of individual potential. In fact, the following
appropriately describes the role of talent management.
D N A
Point of Departure Navigation Point of Arrival
Translating
organizational vision
into goals and mapping
the required level of
capacities and
competencies to
achieve goals.
Aligning individual
values and vision with
organizational values
and vision.
Clear understanding of
the varied roles within
the organization and
appreciation of the
value addition from self
& others leading to
building a culture of
trust, sharing & team
orientation.
45
Assessment of talent
to profile the level of
capacities and set of
competencies
possessed within the
organization.
Enhancing capacities
to learn, think relate
and act through
development
initiatives.
Individual growth to
meet and accept
varied, incremental &
transformational roles
in an overall scenario
of acknowledged need
for change.
Gap analysis and
identification of
development path.
Helping individuals
realize their full
potential through
learning &
development.
Developed individuals
enabling break through
performance.
Source: (Deloitte, 2005:1.)
Table 4.6.1: The role of talent management
Talent DNA serves as the foundation for talent management acting as the
common currency exchanged between each sub-process (performance,
learning, succession, compensation, etc.) The Talent DNA is composed of
three primary pieces:
1. Organizations must have meaningful descriptions of the capabilities
(skills, behaviors, abilities and knowledge) required throughout the
organization.
2. Organizations must be able to relate those skills and capabilities to a role
or a center of demand, such as a job position, project or leadership role.
46
3. Talent management processes must create a comprehensive profile of
their talent. They must be able to track meaningful talent related information
about all of their people - employees, contractors, or candidates.
With all three components working in concert, organizations can effectively
apply the Talent DNA to virtually any HR process that directly impacts ‖talent
supply and demand,‖ including recruiting, on boarding, staffing and
development.
The Talent DNA provides a mechanism to make accurate decisions on talent
needs—―have it, build it or buy it.‖ If needed skills and capabilities are
present internally, they can be redeployed. If not, a decision can be made to
either build these capabilities through learning and development, or buy
them in the form of hiring or outsourcing externally.
4.7 KEY COMPONENTS OF HIGHLY EFFECTIVE TM
A clear understanding of the organization‘s current and future business
strategies. Identification of the key gaps between the talent in place and
the talent required to drive business success.
A sound talent management plan that is designed to close talent gaps
should also be integrated with strategic and business plans.
Accurate hiring and promotion decisions.
Connect individual and team goals to corporate goals, to provide clear
expectations and feedback for managing performance.
Talent Development to enhance performance in current positions as well
as readiness for transition to the next level.
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A focus not just on the talent strategy itself, but the elements required for
successful execution.
Business impact and workforce effectiveness measurement during and
after implementation.
Talent management is not about finding the best and the brightest, it is about
creating the right fit both for today and tomorrow. A rightly managed talent
turns out to be inexhaustible and priceless; it will keep on adding value to the
organization. Innominds is soon turning out to be a hub of talented people.
4.8 TALENT MANAGEMENT PERSPECTIVES
As the economy turns around, talent managers are increasingly
concerned about retaining and engaging employees. Having a simple
conversation about career aspirations could be all it takes to keep them on
board.
"A lot of the research suggests that the relationship between managers and
employees is one of the centerpieces for engagement and retention, ―said
Caela Farren, president of Mastery Works. "Having those conversations
certainly builds those bridges and lets employees feel known,
appreciated and valued. The deeper the relationship between managers
and their direct reports, the higher the performance.
"Farren said there are five fundamental reasons why employees become
disengaged or leave a company:
1. Lack of partnership or trust with managers.
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2. Lack of career opportunities and challenging work.
3. Lack of work-life balance.
4. Lack of career fit.
5. Lack of passion for the mission or strategies of the organization.
Farren recommended engaging employees in conversations that focus
on career aspirations to identify these problems before they become
serious. Typical questions a manager should ask an employee include: What
do you love to do? What are you really good at? What do you enjoy in
your work? What are your career goals and your short- and long-term
aspirations?
"When you begin to hear [answers], you really are listening for
opportunities," Farren said. "[You start] knowing their aspirations,
knowing what they want to learn [and] what they think is important that they
need to learn - whether it's a new computer program, a language or a new
competency. Once you know that as a manager, you can begin to look for
opportunities, mentors or projects where that learning is much more
possible.
"One of the [questions] I really like to ask my employees is: 'What's
missing in the organization and where do [you] want to contribute more
fully?' Because that usually ties what their real strengths and talents are with
what their goals are, as well as with the needs of the organization, so that's a
win-win.
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"Managers could find that it doesn't take much more to engage and retain
employees than learning about their employees‘ aspirations and finding
opportunities to fit those objectives.
"As managers get wiser about opening those doors and windows and
making it easier for people, what they find is that people stay there, that they
don't leave, that they actually stay because of opportunities," she said.
In addition to having career conversations, Farren also made the following
recommendations to retain employees:
1. FOCUS ON OPPORTUNITIES. "Really show them other options within
the organization - lateral moves they could make, ways to learn what
it is that they want to learn - and really be their advocate to make
those things happen."
2. PROVIDE MENTORING. "Hook them to mentors who are aligned
with [their] goals, whether it's to learn a competency or a language, be on a
project or move to a different part of the country."
3. RAISE THEIR PROFILE. "Help them become more visible in the
organization. Provide opportunities to meet leaders [and] customers, to
attend project meetings or be part of projects so they're actually
increasing [their] visibility and building their networks."
4. ACT AS AN ADVOCATE. "Support their goals, even if it does mean [they
will be] moving on in the organization or moving out of the organization."
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5. OPEN THE DOOR TO INNOVATION. "Create a more innovative work
environment, where red tape is less important and good ideas, new
ideas, breakthrough ideas are critical, and reward that. People are
looking for the opportunity to contribute and innovate."
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Chapter – 5
TALENT MANAGEMENT PROCESS
5.1 TALENT MANAGEMENT PROCESS
The old cliché - no resource is more important than your people - still
holds true today…well, that and cash flow!. You cannot afford to ignore
talent management in your organization today, if you wish to stay in
business tomorrow.
Organizations are made up of people: people creating value through
proven business processes, innovation, customer service, sales, and many
other important activities. As an organization strives to meet its business
goals, it must make sure that it has a continuous and integrated process
for recruiting, training, managing, supporting, and compensating these
people.
The followingchart shows the complete process:
Source: (http://joshbersin.com/2007/07/16/what-is-talent-management)
Figure 5.1.2 : Talent Management Process
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1. WORKFORCE PLANNING : Integrated with the business plan, this
process establishes workforce plans, hiring plans, compensation
budgets, and hiring targets for the year.
2. RECRUITING : Through an integrated process of recruiting,
assessment, evaluation, and hiring the business brings people into the
organization.
3. ON BOARDING: The organization must train and enable employees to
become productive and integrated into the company more quickly.
4. PERFORMANCE MANAGEMENT: By using the business plan,
organization establishes processes to measure and manage employees.
This is a complex process in itself.
5. TRAINING AND PERFORMANCE SUPPORT: Of course this is a
critically important function. Here we provide learning and development
programs to all levels of the organization. This function itself is evolving
into a continuous support function.
6. SUCCESSION PLANNING: As the organization evolves and changes,
there is a continuous need to move people into new positions. Succession
planning, a very important function, enables managers and individuals to
identify the right candidates for a position. This function also must be
aligned with the business plan to understand and meet requirements for
key positions 3-5 years out. While this is often a process reserved for
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managers and executives, it is more commonly applied across the
organization.
7. COMPENSATION AND BENEFITS: Clearly this is an integral part
of people management. Here organizations try to tie the compensation plan
directly to performance management so that compensation, incentives, and
benefits align with business goals and business execution.
8. CRITICAL SKILLS GAP ANALYSIS: This is a process we identify as an
important, often overlooked function in many industries and organizations.
While often done on a project basis, it can be ―business-critical." For
example, today industries like the Federal Government, Utilities,
Telecommunications, and Energy are facing large populations which are
retiring. How do you identify the roles, individuals, and competencies which
are leaving? What should you do to fill these gaps? We call this "critical
talent management" and many organizations are going through this now.
5.2 FEATURES OF TALENT MANAGEMENT STRATEGY
Key features of talent management strategy include the following elements:
1) ALIGNMENT TO CORPORATE STRATEGY
Ensuring that the talent strategy is closely aligned with the corporate
strategy must be a priority. In developing a talent strategy, both internal
and external factors should be taken into account, including factors
influencing talent management. Strategic analysis from the business
perspective should fed into an HR forecast which can help shape an
organization‘s tailored approach to talent management. Often organizations
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are at different stages of talent management strategy development.
Research suggests that for a number of organization‘s there was a desire to
progress through the stages highlighted in following figure making the
transition to a more formal, strategically- integrated approach.
Inclusive versus Exclusive Approaches:
Some organizations adopt an inclusive approach to talent management
creating a ―whole workforce‖ approach to engagement and talent
development, while others develop a more exclusive focus segmenting
talent according to need. Regardless of which approach organizations
adopt, fairness and consistency must be applied in all talent management
processes. Diversity considerations must also be built-into talent
management processes to ensure that organizations are able to draw from
the widest pools of talent possible.
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Source: (HRM Review, Talent Management (October 2008) The ICFAI
University Press)
Figure 5.2.1: Stages of Development of Talent Strategy
2) INVOLVING THE RIGHT PEOPLE
Careful considerations need to be paid to involving the right stakeholders in
the talent management strategy. Clearly, HR specialists have an important
role to play in providing support and guidelines in the design and
development of approaches to talent management that will fit the needs of
the organization.
Visible senior- level support is a must and a talent panel is a useful means of
ensuring the involvement of Directors and senior management, especially
when it has representation across the organization. Additionally, line
manager‘s support is important at every stage of the process. Line
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managers must take responsibility for managing performance, identifying
and developing talent in their own areas but also need to be encouraged to
see talent rather than a local resource.
Participants on talent management schemes are also important stakeholders
in the process and should be consulted and asked for feedback in
shaping development processes.
3) FOCUSING ON THE TALENT MANAGEMENT LOOP
It is also important to focus attention on the four areas of the talent
management loop,detailed in following figure.
Source: (HRM Review, Talent Management (October 2008) The ICFAI
University Press)
Figure 5.2.2 : The talent management loop
ATTRACTING TALENT:
The ability to attract external talent depends upon how potential
applicants view the organization, the industry or sector it operates in
57
and whether they share the values of that organization. The creation of an
attractive employer brand is an important factor in attracting external
talent. Where needed, lower financial rewards can be countered with
alternative benefits and employer values such as social responsibility.
DEVELOPING TALENT:
Talent development should be linked to other learning and development
initiatives. Appropriate learning and development interventions are required
at relevant stages in a career path for talented individuals to achieve
their maximum potential. Developing talent needs informal as well as
formal learning interventions. These interventions will include
conventional development activities but there is also the opportunity to
use creative alternatives such as talent coaching and mobility.
MANAGING TALENT:
Active steps, plans and activities are needed to retain and engage talent
required for the future health of the organization. Investment in
management, leadership and other development activities will positively
impact on talent retention. Organizations should develop a performance
culture where individuals take responsibility for the continuous
improvement of business processes and their own skill development.
TRACKING AND EVALUATING TALENT MANAGEMENT:
Evaluation of talent management is difficult but necessary to ensure that the
investment is meeting organizational needs. Evaluation requires both
quantitative and qualitative data which is valid, reliable and robust.
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5.3 TALENT POOL
Strategy of talent management is aimed at ensuring a fund of highly
talented, competent, committed and loyal individuals able to contribute to
achieving the current as well as future organization's requirements, a so-
called talent-pool. Three basic groups of processes leading to ensuring an
adequate talent pool is a practical outcome of talent management strategy. It
is acquisition, development and retention of talents. Each of these processes
includes in itself a whole number of related activities, a number of particular
elements. Organizations differ in ways of how they manage their talents.
The ideal approach is to interlink all activities or at least most of them, which
is what some organizations are really striving.
TALENTS ACQUISITION
The first step the organization has to take is to identify key roles. In
connection with that the organization has to assess whether there are
available employees with key competencies who will be needed in the future
in dependency with business strategy. As long as it has not sufficient
existing resources then it has to find these talents. It may identify them
among its present employees, from the internal resources or obtain them
from the external resources, from labor market, by transferring of talents
from competitive firms, from other branches, scouting of talents among
employees who have got research fellowship in the organization, by scouting
for talented individuals among students or graduates, by direct addressing
the chosen individuals, by means of the Internet, specialized agencies and
the like. The identification of talents is made on the basis of assessment of
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their current performance and a forecast of their potential. Performance
appraisal is the measurement of actually achieved results within those
areas for which the specified individual is responsible, and/or competencies
understood as critical for the success of performed work as well as of the
entire organization.
A forecast of potential is a prognosis for how many levels within the
organization an employee can advance on the basis of their past/current
performance appraisal, training and development, preferences in their
careers and the current and planned levels of competencies. There are a
number of methods the organization can use for performance appraisal and
a forecast of employees' potential both from the internal and external
sources i.e. methods serving to the identification of talents. For a certain
type of employee it is always necessary to choose such kinds and
combinations that would lead both to performance appraisal and a forecast
of potential. It is not possible to rely on one method only. It should also be
born in mind that first it is necessary to know the criteria of identification and
only then we can choose methods.
Talents from own sources are usually sought for through a working system
of regular appraisal within which a number of methods are utilized. To the
most used methods belong the method of assessment according to set
objectives (MBO --- Management by Objectives), assessment centre, the
analysis of critical events, and a 360º feedback. In order to identify talents
from the external sources the tests of fitness, a method of assessment
centre and behavioral (competent) talks can be used.
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After performance appraisal and a potential forecast, the very group of
talented employees is specified - a talent-pool is formed. Individuals meeting
in advance determined criteria can be jointly indicated as talents or this
group of talented individuals can be furthermore divided into three groups -
top talents, talents and potential talents. It always depends on the
organization and its approach to the classification of talents.
High
Appraisal
Low
Low Potential High
Source: (http://www.management-issues.com/2006/8/24/research/talent-a-
breed-apart-.asp)
Figure 5.3.1: Classifications of Talents
TALENTS DEVELOPMENT
In the area of organization's development, the talents should be offered a
chance of improving their strong points, individual overall performance as
well as particular competencies, and deepening of their motivation. The
organization should also enable them to advance in their career. A special
development program should be worked out for the talents, and in
POTENTIAL
TALENT
TALENT TOP
TALENT
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close cooperation with their managers it should be implemented. That
program may encompass a combination of various methods, activities or
instruments of development always according to the specific needs of a
concrete organization. The methods in question are both methods on-the-job
and methods off-the-job. A greater emphasis is laid on methods used for
education at a workplace but, of course, both groups of methods are used.
According to the experience from many companies that have already applied
talent management, the most efficient way of talent development are
methods of on-the-job or learning directly at a workplace, mainly cross-
training and the involvement in projects with the support of a manager,
couch or mentor. Programs of talent development are very closely
connected with career planning and succession planning. They provide
talents with opportunities to grow in their current job roles and to move
forward to the roles of a higher level
TALENTS RETENTION
Also activities ensuring retention and stabilization of talents in the
organization are inseparable part of talent management. Talented individuals
should not leave the organization because their departures have usually
extraordinary impact on organization's operation, which is irrelevant to their
number. Among factors influencing talents retention in the organization there
are the offer of interesting and valued work, ensuring opportunities for
education and development, and professional advancement, respecting a
balance between professional and private life, the offer of a flexible work
role, the offer of a quality work conditions and equipment, provision of sense
62
of recognition and respect, the offer of adequate remuneration and recently
also gaining grounds for organization's social responsibility approach. The
above-mentioned facts create for a talented individual a valuable offer
marking that sound values will be observed in the organization employees
can expect good leadership, freedom and autonomy, highly incentive work,
opportunities for professional advancement in their career and adequate
remuneration.
5.4 APPLICATION OF TM IN CURRENT ECONOMIC CONDITION
The current economic conditions demand a cut in the expenses.
Unfortunately enough for talent management though organizations and
leadership is all praise for it on papers, the same is neglected as seen as a
cost center when it comes to implementation. In wake of the economic
recession human resource professionals are under huge pressure to cut
costs. Logically this is best time to validate the importance of talent
management. Hiring and compensating the best talent in the industry
optimally and ensuring performance at the same time. The question that
remains is ‗what exactly is the relevance in the current economic
conditions‘? Before trying to answer lets ponder on certain key issues.
Aging workforce is another area of concern that has created vacuums in
organizations leadership positions.
Organizations also report shortage of talent business line managers.
All this has opened up avenues for HR professionals for vindicating their
stand on talent management and once organizations understand that they
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need an integrated approach to talent management, the involvement of a top
executive is important for driving success. The top executive who now heads
the talent management function is responsible for activities like succession
planning, leadership development, career development, performance
management, learning and development, recruitment etc. Having said this
we again arrive upon the question of relevance.
DEVELOPING LEADERSHIP POOL: Succession planning and leadership
development are two issues that have felt a sense of urgency after the
recent economic downturn. Organizations have been seeking leadership
positions to rescue them out of crisis.
PERFORMANCE MANAGEMENT: After succession planning and
leadership development, performance management comes next on the list.
Without a thorough and standard way to measure performance it is not
possible to promote right people to right positions and motivate them to
perform for organizational growth and development.
RECRUITMENT ASSUMES SIGNIFICANCE: Recruitment becomes
strategic so to say. Recruitment practices determine organizational
effectiveness. In a tight labor market it a daunting task to attract the brightest
talent towards your organization and then getting them onboard. Internet has
become an important source of external recruiting. Systems and standards
have been laid down for the same. Here building an employer brand is
important. Those who do, get right people onboard.
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SKILL BASED MANPOWER PLANNING: Manpower planning is a strategic
HR process these days. Instead of a mere headcount based hiring;
manpower planning now extends to the locating critical skills, roles and
responsibilities and then ascertaining current and future talent needs for
those roles. These are vital processes that optimize the performance of the
human capital management. What is required is to ensure that they are
consistent in order to ascertain they meet the business objectives.Talent
management is in its nascent stage, there are still more processes that will
be added in due course of time as organizations opt for more initiatives in
the direction.
5.5 TALENT DIMENSIONS
Talent Dimensions is an analysis of the strategic context for talent and the
overall goals for the organization. It defines the approach, solutions and
developmental support needed. Finding, attracting, developing, retaining and
transitioning talent are the primary drivers of success in business and since
1996, Dimensions has assisted hundreds of companies in meeting these
challenges. Whether to outsource entire human resources function or need
proven expertise in leadership development, training, coaching, recruiting,
compensation or any of the other areas of talent management.
Each of the six dimensions contains many distinct practices
Talent management
Dimensions
Description
Develop Strategy Establishing the optimal long-term strategy for
attracting, developing, connecting and
deploying the workforce.
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Attract and Retain Sourcing, recruiting and holding onto the
appropriate skills and capabilities, according
to business needs.
Motivate & Develop Verifying that people's capabilities are
understood & developed to match business
requirements, while also meeting people's
needs for motivation, development and job
satisfaction.
Deploy and Manage Providing effective resource deployment,
scheduling & work management that match
skills and experience with organizational
needs.
Connect and Enable Identifying individuals with relevant skills,
collaborating, sharing knowledge,and working
effectively in virtual settings
Source: (http://www.fasset.org.za/downloads/talentmngarticle.pdf)
Figure 5.5.1 Talent Dimensions
5.6 CHALLENGES OF TALENT MANAGEMENT
The vivacious nature of business is putting an ever-increasing pressure on
companies to be constantly on the lookout for incomparable talent in a
market where demand far exceeds supply. Given the current focus on the
linkage between talent and an organization‘s business challenges and
strategies, effective strategy execution requires sufficient numbers of the
right people with the right skills and knowledge, in the right roles. Pressing
business necessities, such as increasing turnover as the economy improves,
globalization of markets and labour forces, aggressive competition and
66
heightened corporate oversight, have intensified the need to acquire,
develop, deploy, motivate and retain key talent.
Getting the right people with the right skills into the right jobs, a common
definition of talent management is the basic people management challenge
in organizations. While the focus of talent management tends to be on
management and executive positions, the issues apply to all jobs that are
hard to fill. This has made talent management one of the most pressing
issues.
Business success relies on successful talent management. If a hospital
executive can't find nurses, a retail store executive can't develop and
engage store managers, or a lab director can't keep great scientists, they will
have difficulty meeting their organization's strategic business objectives.
The challenges of finding, keeping, developing, and motivating people in key
positions are precisely what progressive HR professionals should be
focusing on. These managers face ongoing talent management challenges
that are critical to their achieving business goals.
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The main challenges are as shown in figure
Source: (http://joshbersin.com/2007/06/01/talent-management-changes-hr)
Figure 5.6.1 Challenges in Talent Management
The challenge of talent management has two facets to it. First is how to find
new people and second is how to retain the present workforce. Each of the
challenges has to be tackled in the most efficient way possible so
that the organization can achieve its objectives.
THE FIRST CHALLENGE - Where to find new talent?
All the organizations are finding loads of business opportunities and
consequently, their revenues are growing at a rapid pace. The
increasing business opportunities has necessitated that these organizations
go in for massive recruitment. But, the question is where to find the best
talent which is able to fit the job description and also adjust to the
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organization‘s values and norms. If we scan the environment, we find
there is a shortage of skilled workforce that can be employed.
Some of the possible reasons that have led to the shortage are: -
DEMOGRAPHIC CONSTRAINTS: This is a common problem faced by
many of the developed countries, where a large chunk of its population is
nearing the age of retirement or is over 50 years. USA, Germany and Japan
are facing the same problem. All these countries will see a decline in their
workforce and talent. In the coming years, they will see a great shortage in
their skilled professionals.
EXISTING EDUCATIONAL SYSTEM: The graduates and the post-
graduates that are being churned out of the universities are found to be ill-
equipped to handle the challenges of the workplace. They are mostly
equipped with only the theoretical aspects of the issues and lack the
application part. The educational system is faulty and does not take
industry needs into consideration, resulting in a mismatch between industry
requirements and educational preparation.
COST FACTOR: Recruiting new employees is becoming tougher and
tougher in the developing countries, where the HR department has to
sort out thousands of applications for a handful of jobs. Finding right
person for the right job becomes a very difficult process. It also involves
very high cost to conduct the recruitment and selection process for such
a large population of applicants.
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ATTRACTING THE BEST TALENT: This is another challenge. As was the
case in the past, the best available talent is not just motivated by the name
and fame of the organization. Not anymore. They have a new set of
motivators like - challenging work, conductive work environment and
freedom from bureaucratic structure.
THE SECOND CHALLENGE - How to retain the existing employees?
Gone are the days when a person would join an organization in his mid-20s
and would work till his retirement in the late-50s. Today the young
professionals hop jobs, especially during the first 4-5 years of their work life.
Though the Indian service industry is basking in the light of outsourced
jobs from the developed countries, they also cannot ignore the fact that
the BPO industry is also facing one of the highest attrition rates, in
fact never heard before in India, of around 35%. It is a fact that its the
people that add value to organizations. It is also a fact that humans are a
restless species who, unlike the immovable Banyan Tree, cannot stay
rooted in one place. People need to move on for one reason or another,
and the organization stands to lose. Let us look at some of the reasons
behind the massive attrition rates: -
Gap between organizational values and goals and the personal values and
goals is one of the major reasons of the attrition rates. If they go parallel,
there is no way both would be satisfied and inevitably, the organization
would lose out on a talented employee. Working environment is another
major factor. Employees in the knowledge era demand creative and a
democratic work environment. Failure on the part of the management to
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provide such an environment will result in a talented employee leaving the
organization. The competitive world has made sure that there is high work
pressure on the employees of any organization. This has led to
psychological problems like stress, and in extreme situations, total
burnouts. It also leads to other health related problems.
Movement for higher salary is also common among the younger
professionals. There is no shortage for organizations who are looking for
talented employees and who are ready to shell out a hefty salary for a
talented person. Other lures like better job opportunities, higher posts and
overseas assignments are also major factors in the attrition rates. Not taking
proper care during the recruitment and selection process and not taking
proper care to fit the right person to the right job also breeds dissatisfaction
among the employees.
Bad or opaque policies from management on issues of succession
planning and promotion, appointments for senior positions also is a major
factor which makes the organization lose out on the talented employees.
The professionals have different aspirations at different times of their
career. During the initial years, they have good salary and foreign
assignments. Next on the list is working on cutting edge technology.
More seasoned professionals look for learning opportunities. So employees
tend to move to those organizations which provide them with means to fulfill
their aspirations.
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Retaining the present employees is of the foremost importance to the
organizations because; the company would have already incurred heavy
costs in the form of training and development. Now if the organization has to
look for a replacement for the employee who has left, it involves a lot of
costs like – hiring costs, training costs and the induction costs. Also it takes
some time for the new employee to adjust to the new work environment.
During this time the productivity of the employee will be low.
The HR department will have to fit the new employee into a proper role in
the organization. Apart from causing the company a monetary loss and
breaks in their day-to-day operations, attrition contributes to knowledge
transfer, which is a great loss and adversely affects business. As one
leader commented, "Habits of mind are the real barriers to talent
management."
5.7 IT STARTS WITH A TALENT MINDSET
The first thing leaders need to understand is that better talent management
does not come from having better HR processes or a better HR department.
It comes mostly from having leaders and managers at all levels who
embrace a talent mindset.
A talent mindset is a deep-seated belief that having better talent at all levels
allows your company to outperform its competitors. It‘s the recognition that
better talent pulls all the other performance levers. These beliefs give
leaders the determination to strengthen their talent pool and the courage to
take bold actions to do so.
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Leaders with a talent mindset make talent management a top priority for
themselves and their leadership teams They understand that it can‘t be
delegated, so they commit a major part of their time and energy to
strengthening their talent pool and helping others in the company strengthen
theirs. They see talent management as a central and critical part of their own
job as a leader.
Greg Summe is one leader who has a strong talent mindset. Summe took
over as the CEO of Perkin Elmer, the Boston-based engineering firm, in
1998, and has achieved a remarkable transformation of that company in the
three years since, including a dramatic strengthening of the talent among his
top 100 managers.
When reflecting on the tripling of the company‘s stock price that resulted
from the turnaround effort, Summe says, ―If it hadn‘t been for our focus on
talent management, it wouldn‘t have worked. I would have gotten less than
half of the results we saw in the first year and even less going forward.‖ He
adds, ―People were my number-one issue three years ago. They are my
number-one issue now. And people will be my number-one issue three years
from now.‖
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Source: (Adapted from Elizabeth Axelrod, Helen Handfield-Jones, & Timothy
Welsh.2001. The War on Talent, Part two McKinsey Quarterly)
Table no. 5.7.1 Talent Mindset
5.8 MANAGE TALENT
As the economy begins to show signs of improvement, many businesses are
worried about losing their most talented employees. While an employer‘s
impulse might be to demand higher productivity as the economic
environment improves, they should be considering how training and
incentives can keep some of their best performing team members happy.
Rewarding employees for sticking through the bad times, and giving them
time to gain momentum is the best way of ensuring their loyalty. Talent
management is about more than finding and keeping the right people. It‘s
also about making smart decisions that benefit both your workforce and your
organization.
OLD MINDSET ABOUT
PEOPLE
NEW TALENT MINDSET
A vague notion that ―people are our most impotrtant assest‖.
A deep conviction that better talent leads to better corporate performance.
HR is responsible for people management.
All managers are accountable for strengthing their talent pool.
We have a two-day succession planning exercise once a year.
Talent management is a central part of how we run the company.
I work with the people i inherit.
I take bold actions to build the talent pool i need.
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While there is no magic formula to manage talent, the trick is to locate it &
encourage it. Talent Management is beneficial to both the organization and
the employees. The organization benefits from: Increased productivity and
capability; a better linkage between individuals' efforts and business goals;
commitment of valued employees; reduced turnover; increased bench
strength and a better fit between people's jobs and skills. Employees benefit
from: Higher motivation and commitment; career development; increased
knowledge about and contribution to company goals; sustained motivation
and job satisfaction.
So, how does an organization effectively manage talent?
RECOGNISE TALENT: Notice what do employees do in their free time and
find out their interests. Try to discover their strengths and interests. Also,
encourage them to discover their own latent talents. For instance, if an
employee in the operations department convincingly explains why he thinks
he's right even when he's wrong, consider moving him to sales!
ATTRACTING TALENT: Good companies create a strong brand identity
with their customers and then deliver on that promise. Great employment
brands do the same, with quantifiable and qualitative results. As a result, the
right people choose to join the organization.
SELECTING TALENT: Management should implement proven talent
selection systems and tools to create profiles of the right people based on
the competencies of high performers. It's not simply a matter of finding the
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"best and the brightest," it's about creating the right fit - both for today and
tomorrow.
RETAINING TALENT: In the current climate of change, it's critical to hold
onto the key people. These are the people who will lead the organization to
future success, and you can't afford to lose them. The cost of replacing a
valued employee is enormous. Organizations need to promote diversity and
design strategies to retain people, reward high performance and provide
opportunities for development.
MANAGING SUCCESSION: Effective organizations anticipate the
leadership and talent requirement to succeed in the future. Leaders
understand that it's critical to strengthen their talent pool through succession
planning, professional development, job rotation and workforce planning.
They need to identify potential talent and groom it.
CHANGE ORGANISATION CULTURE: Ask yourself, "Why would a talented
person choose to work here?" If the organization wishes to substantially
strengthen its talent pool, it should be prepared to change things as
fundamental as the business strategy, the organization structure, the culture
and even the calibre of leaders in the organization.
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Source: (Ashton, C., & Morton, L. (2005). Managing talent for competitive
advantage. CRF Publishing, 4(5), 28-31)
Figure 5.8.1 Managing Core Talents
A rightly managed talent turns out to be a Gold Mine. It's inexhaustible and
priceless. It will keep supplying wealth and value to the organization.
In turn, Management needs to realize its worth, extract it, polish it and utilize
it. Don't hoard Talent- spend it lavishly, like a millionaire flashing his luxuries,
because Talent is Wealth!
We all have natural talents--those inherent capabilities that put us in "the
zone" when it comes to performance. Everyone isn't a manager. But
everyone is a performer when they're in the right role at the right time for the
right reasons.
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Chapter – 6
TALENT MANAGEMENT STRATEGY
6.1 BUILDING SUCCESSFUL TM STRATEGY
Talent management strategies are ways to attract and retain the very best,
highest skilled workers that your company can. Much more than simply a
human resource responsibility, all of the department managers in a company
must focus on developing great talent management strategies in order to
ensure that a business stays competitive in the market place.
Understanding what constitutes an effective, actionable talent strategy and
how to execute that strategy is the first step towards implementing a
successful talent management program. A good talent strategy should
support the "basic engine" that keeps an organization running day-to-day, as
well as address the strategic challenges to position the company for future
growth.
If u can‘t measure it, u can‘t understand it.
If u can‘t understand it, u can‘t control it.
If u can‘t control it, u can‘t improve it. ------ James Harrington
Measure
Understand
Control
IMPROVE
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Every company has some form of talent strategy – it is simply a matter of
whether the strategy is effective, implicit or explicit, and how formalized it is.
A good talent strategy is about alignment, focus, efficiency and
effectiveness, and should affirmatively answer the following questions:
Is the talent strategy properly aligned with a well-defined business
strategy?
Are all talent efforts clearly focused on the business strategy?
Are the efforts efficient at spending resources and effective at meeting
specific talent needs and goals?
Many organizations are talking about talent management but relatively few
are implementing it systematically. Finding and holding on to talented people
has become a preoccupation of both HR and the board, but who is really
responsible for talent management? What does HR and the board need to
do to embed talent management in the business?
Here are top tips on managing talent:
1. IDENTIFY TALENT REQUIREMENTS
New research has shown that there is too much focus on ‗talented‘
individuals rather than identifying talent requirements across the whole
organisation. HR needs to go back to the beginning and define job roles,
ensuring both the workforce and business structure are assisted. Make sure
your talent management strategies support your business objectives rather
than a specific demand, a product launch for example. Remember to look at
the bigger picture.
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2. RETAIN TALENT
It is easy to focus on finding talent but don‘t forget to ensure you also look
after the talent once it‘s in the business. Providing a consistent procedure to
recognise staff performance and making sure employees have clear and
regular access to their performance objectives is essential.
3. GAIN BOARD LEVEL BUY-IN
Effective talent management is a critical business goal for all leading
organizations in today‘s economy. It is essential that business managers
recognise that workforce and talent management can directly impact a
company‘s profit and give them a competitive edge. Talent management
won‘t be a success if it‘s seen purely as an HR initiative. To be truly
effective, it will need senior management buy-in, but also buy-in from a
range of other stakeholders.
4. WORK WITH LINE MANAGERS
HR needs to work closely with line managers to ensure employees are
motivated, productive and want to stay in the business. But managers often
feel personal development tasks take their attention away from what they
are actually rewarded for. It is vital that these two functions understand each
other and work in partnership together. Take the time to explain why and
how talent strategies can constructively impact a business, and give the line
more accountability for the schemes.
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5. GET MEASURING
In order to show that talent management can impact the business positively
you will need to effectively measure it. HR must therefore look at what data
is collected and, more importantly, why? Is there a clear rationale behind
data collection or has it simply evolved? Is it possible to build a talent map of
the business from the data, highlighting areas of expertise and talent
deficits?
6. BE CREATIVE
When attracting top people to your organisation look outside of HR for
inspiration and enlist the use of different marketing methods. Investing in
employer branding can improve communication channels and help create,
maintain or refresh your company culture. Consider that an influential brand
can connect with employees and gain their buy-in for your future business
direction. Try new channels in which to engage with them. For example
social media is an important and interesting tool to help you recruit and you
will also be able to reach those who are not necessarily seeking new job
opportunities but wouldn‘t necessarily turn them down.
7. INNOVATIVE REWARD PACKAGES
Success in attracting and retaining the ‗noughties‘ generations will come
from innovative development and reward packages that are tailored to the
general trends in attitudes and values. There is now a need for more
personal and individualised packages. The world is made up of different
people and different priorities and for HR it‘s essential to remain receptive to
that.
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8. TALENT BANKS
You should be looking to build collections of talent before or after
recruitment. Talent banks operate where an organization identifies and
attracts potential recruits before they‘re required, as candidates often
emerge who are clearly desirable and interested in the organization but
there may not be a suitable current opening.
9. JOB ROTATION AND ENRICHMENT
Deployment is an important aspect of talent management, and job rotation
and job enrichment are vital aspects of experiential learning in becoming a
leader. Many organizations use secondments within the UK and/or
internationally to grow talent internally. Lack of employee mobility can affect
deployment of talent and can lead to employee engagement and
commitment problems later on.
10. ALIGNMENT WITH SUCCESSION PLANNING
Both succession planning and talent management are dynamic processes
occurring in changing times. Succession planning needs to be aligned with
HR initiatives including talent management. Lack of alignment can cause
problems, such as having a transparent talent management process and a
secretive succession planning process.
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6.2 TALENT MANAGEMENT STRATEGY STEPS
Source: (Bergeron. C. (2004) Build a talent strategy yo achieve your desired
business results. Handbook of Business Strategy, 133-139)
Figure 6.2.1 Talent Management Strategy Steps
STEP 1: AN ENTERPRISE-WIDE VIEW OF READINESS
Start from current position… with the end in mind
Develop a clear perspective; involve the HR team, C-level executives,
business unit leads and managers. Answer key questions about the
organization‘s current state, culture, and desired state.
These might cover: Organisation statements
Mission statement: why the company exists
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Corporate values: beliefs and how the company behaves
Vision: what the company wants to be
Strategy: business goals/objectives and competitive advantage
Balanced scorecard: how the company executes and monitors the plan.
How these statements and goals cascade through business units, divisions,
market segments and departments?
Which jobs/roles and skills are needed to support company statements,
performance and encourage innovation?
Which criteria the organization can use to measure performance and to
identify both high performers and underachievers?
Then, decide what the organization should look like - in terms of leadership,
capabilities and structure – to achieve these aims and goals. This defines
the desired state for performance, competitive position and profitability. Next,
examine any talent management components already in place. Analyse how
well each component is working. Document your organization‘s talent
management priorities based on organization goals, related talent
requirements and the analysis of existing talent management processes and
systems.
STEP 2: EMPLOYEE COMPETENCIES: ROADMAP TO THE FUTURE
With the inputs from Step 1, define the competencies desired by the
organization. Consider identifying specific competencies desired in these
three categories:
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CORE COMPETENCIES: Qualities & behaviours desired for all employees,
examples include accountability, conflict management, flexibility, problem
solving, reliability, communication, etc.
LEADERSHIP COMPETENCIES: Qualities & behaviours desired for
supervisors, managers & executives. These attributes and responsibilities
might include entrepreneurship, managing people, partnering, vision,
situational leadership, strategic thinking.
JOB-SPECIFIC COMPETENCIES: Skills, knowledge, abilities and
behaviours. Associate these competencies with specific roles and job
positions. Establish the proficiency levels required for each competency. Use
this to create a competency profile for each job.
STEP 3: GAP ANALYSIS - HOW DO WE GET THERE FROM HERE?
Getting “there” means first getting clear about “there.”
That‘s why the next step is to conduct a comprehensive skills inventory and
gap analysis. The focus should be around what are the competency/skill
areas that are most critical to the organization as defined in Step 2. This
exercise not only gathers vital information about the current state, it provides
a baseline to use for assessing and measuring progress as the talent
management initiative moves forward.
The goal in conducting this analysis is to provide HR, executives and
managers with visibility into employee skills. It gives organizations the ability
to identify qualified candidates for special projects or new assignments. It
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also provides employees with a means for managing their career as they
can readily see where they are and where they need to be for career
planning. This level of visibility is critical for employee retention. In addition
to an inventory of skills, it is useful to give each skill a knowledge or
proficiency rating (e.g., beginner, intermediate) and experience level rating
(e.g., 1-3 years, 4-6 years).
What is the best way to gather this information?
The organization‘s performance appraisal process provides a means for
collecting details on the current state of employee skills. The better the
appraisal process, the better that data. Basically, take the same process
used to evaluate an individual and apply it at the macro level to the
organization.
Tools can include:
Self-assessments (can be conducted anytime, including part of the
onboarding process)
Annual performance appraisals.
360-degree multi-rater assessments.
Readiness rankings.
Other information valuable for skills inventory and gap analysis can be
found in an employee‘s ―talent profile‖ including:
Awards
Colleges/Universities
Communities and Associations
Current Goals
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Interests
Language Skills
Past Goals
Professional Licenses/Certifications
Projects
Work History – Internal & External
The sample employee information contained in the talent profile above can
be obtained from multiple sources, including from the employees
themselves and/or from a data fed from an applicant tracking/recruiting
system. The information from the above processes is then aggregated
(ideally by business units, departments, and locations as well as
enterprise-wide) to develop the organization‘s current inventory of job
roles, skills and leadership. It is important to record strengths as well as
weaknesses, since a good talent management strategy will address and
improve both.
The combined company and employee information becomes the
organization‘s job profile and talent profile ―system-of-record‖ (also
commonly referred to as the Talent Management System-of-Record‖). Once
the current state is clarified, the organization can identify how far it has to go
to reach its desired-state destination. ―Rather than simply building out a suite
of bolt-on applications, system-of-record companies will be able to
leverage the content and data collected within the system, including
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information such as skills, competencies, behaviours, interests, values,
career plans, and compensation history.
Identifying gaps to reveal important points
The organization may discover, for example, that there is a gap between the
performance process and development, or that the current development
process does not provide the visibility management needs to evaluate
and enhance readiness. This information will be of great value when the
organization moves from strategy into choosing and implementing systems.
STEP 4: DEFINE THE ANNUAL TALENT MANAGEMENT TIMELINE
The starting point and destination are now clear. The competencies linking
the two are clearly defined and the talent management ―system-of-
record‖ has been defined. The next step is to clarify the journey itself:
what specific vehicles to use, what milestones to look for when, and where
and how to ―refuel.‖ Start by mapping out an annual timeline. The timeline
differs from organization to organization, depending on factors such as
whether there are once-a-year or multiple performance reviews and when
bonuses are awarded.
In a typical organization, the basic timeline might look like the following
diagram.
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Source: (Cunningham, I. (2007). Talent management: making it real.
Development and Learning in Organizations, 21(2), 4-6.)
Figure 6.2.2 Assessment Learning
For optimal talent management, learning and assessment take place
continually throughout the year.
Note that assessment activities should occur outside the appraisal process.
This enables managers to create an environment in which employees are
more receptive to observations about where they stand and to coaching on
specific actions they can take to become better candidates for recognition,
rewards and promotions. Employees can also be encouraged, and
automatically reminded, to keep their talent profile updated. By increasing
employees‘ level of engagement, these talent management processes also
improve retention rates. Additional positive results include employee and
company goal alignment and improved business results.
A continuing cycle of learning and assessment also gives the manager
more power to help employees shore up any performance weaknesses
and amplify successes in time for these efforts to make a difference
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on annual performance reviews and as part of the company‘s succession
planning.
STEP 5: CULTURE SHOCK - MANAGING CHANGE TO SECURE BUY-IN
Implementing a formal talent management process can represent a major
culture change for an organization. Employees can be very resistant to the
new visibility of their performance and the direct link between their
performance and their career path and compensation. That‘s why change
management is an essential consideration. A good talent management
process will do a lot of the work of ―selling‖ the idea to employees and
managers. For example, by taking assessment out of the once-a-year
performance appraisal, employees will experience managers more as
mentors, regularly checking in, modifying their goals, and assigning them
relevant learning activities. This will play a major role in transforming the
perception from ―criticism‖ to ―constructive criticism.‖ This in turn will go a
long way toward winning buy in from managers and employees alike.
Before the actual talent management system is deployed, however, negative
stakeholders may try to undermine the speed, success and value of the
initiative. To prevent this, use this strategy-development phase to think
ahead to communication and learning experiences that can ease the ―culture
shock‖ and create positive readiness for employees to embrace the new
system.
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Once completing Steps #1-5 above, the organization will have well-
documented inputs and a solid talent management strategy. In
summary this strategy will:
Articulate how the ―desired state‖ (performance, skills, competencies,
competitive edge) will be attained, measured, and aligned with business
goals.
Inventory skills, job roles, competencies, and employee talent profile.
Establish the talent management ―system-of-record‖ and what is required
to build it.
List gaps, pain points and procedural weaknesses/frustrations with the
current process.
Map out the timeline of annual talent management milestones.
Anticipate the change management issues to address in
implementing a talent management system.
6.3 THE ROLE OF HR
As a primary owner of talent management, HR has many roles—one of the
most important is that of facilitator of the talent mindset. HR leads the way
for the organization to own, as an entity, the role of talent management for
organizational success. In the role of business partner, HR works closely
with the board, the CEO and senior management to ensure that they are
committed to talent management work. As talent management facilitator, HR
also pays close attention to how the organization‘s culture supports talent.
Broadly speaking, HR‘s role encompasses communicating the talent
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management philosophy companywide and knowing the industry
competition.
In addition, HR needs to develop an integrated and proactive strategic
approach to talent management—the big picture—as well as managing
critical information, such as tracking turnover and knowing what factors
contribute to retention To integrate talent management into all areas of the
company, HR also plays a role of change management agent. To drive this
change, HR addresses four diverse talent management activities:
recruitment, performance management, leadership development and
organizational strategy.
In this role, HR manages four major risks to the business:
1) Vacancy risk (to safeguard key business capabilities, focus on scarce
skills and fit to position);
2) Readiness risk (to accelerate leadership development, provide full
business exposure to rising stars);
3) Transition risk (to avoid loss of key talent, select successors with
leadership ability and hire for organization capability); and
4) Portfolio risk maximizing strategic talent leverage, focusing on senior
management‘s commitment to development and performance standards).
Finally, proactive HR leaders take a holistic approach to talent management.
It is important to establish clear expectations and communicate openly about
the talent management process. By HR explaining to management and
employees why talent management is important, how it works and what the
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benefits are to the organization and participants, talent management
strategies are more likely to be seen as a fair process
6.4 TM : TRENDS THAT WILL SHAPE THE FUTURE
Talent management practices have developed and adapted throughout the
years in response to many changes in the workplace, from the
industrial revolution and the rise of labor unions, to affirmative action,
globalization, and outsourcing, to name just a few. The 1990s ended with a
call-to-arms to fight "the war for talent." While the war for talent clearly
has cooled in the early stages of the 21st century, dampened by economic
doldrums and concerns with global security, the real battle to attract,
develop, motivate, and retain talent is going to heat up considerably. A
looming demographic time bomb will make talent management a top priority
for organizations.
This article covers a number of the trends that have shaped our current
practices as well as those that will contribute to future strategies. Formal
talent management practices have a relatively short history but rapid rise
as a profession. The Human Resource Planning Society (HRPS), now in its
third decade of service to the human resource and broader business
executive community, has been committed to improving organizational
performance through the application of strategic human resource
management practices, including talent management. HRPS was preceded
by the American Society for Personnel Administration, founded in 1948,
by 28 individuals to provide professional development for an emerging
profession in transition. Today, renamed the Society for Human Resource
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Management (SHRM), that organization has over 175,000 members (SHRM,
2003).
Talent as a driving force behind HR's contributions to organizational
success is underscored by a recent Human Resource Planning article
entitled "The 21st Century Human Resources Function." Its bold subtitle,
"It's the Talent, Stupid!," further reinforces the central role of talent in the
evolution of HR's impact with organizations they support (Buckingham &
Vosburgh, 2001).
Regardless of an employer's size or industry, during the last 50 years
waves of change have swept over organizations. Some of these changes,
such as affirmative action and related legislation in the United States or
privatization practices in China, have had a broad and sweeping impact,
forever affecting values, beliefs, and practices. Others, such as the
movement from traditional training models to web-based e-learning, are still
in a formative phase and the full impact on talent management has yet to be
seen.
In a slow or down economy, an intense talent shortage may be difficult to
visualize, yet what we know about economic cycles and demographic
trends forces us to confront a not-too-distant future that includes a
labor/talent deficit in supply/demand.
One thing is for sure: Evolutionary, and in some cases revolutionary,
changes are already underway that will affect permanently how we approach
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talent management. Workplace everywhere are facing an increasingly
complex and ever-changing landscape in their efforts to acquire, retain,
motivate, and develop the talent needed to keep their organizations
operating efficiently and competitively. Talent management strategists must
prepare for what is likely to be a roller coaster ride.
Talent management is now looked upon as a critical HR activity; the
discipline is evolving every day.
Some trends:
TALENT WAR: Finding and retaining the best talent is the most difficult
aspect of HR management. Perhaps no talent management issue will have
greater importance in the years to come than employee retention. Today, a
confluence of forces makes the retention problem critically important.
The two major forces are the down economy of the last few years and
labor and talent shortages. A troublesome outcome of the downswing in the
economy and the associated layoffs is that employee commitment and
loyalty have been weakened. HR survey consultancies are one in their view
that organizations globally are facing a dearth of talented employees and it‘s
often more difficult to retain them. Further research has also shown that
there is clear link between talent issues and overall productivity.
TECHNOLOGY AND TALENT MANAGEMENT: Technology is increasingly
getting introduced into people development. Online employee portals have
become common place in organizations to offer easy access to employees
to various benefits and schemes. In addition employees can also manage
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their careers through these portals and it also helps organizations
understand their employees better.
PROMOTING TALENT INTERNALLY: An individual is hired, when there is
a fit between his abilities or skills and the requirements of the organization.
The next step is enabling learning and development of the same so that
he/she stays with the organization. This is employee retention. An enabled
or empowered means an empowered organization. It is also of interest to
organizations to know their skills inventories and then develop the right
individual for succession planning internally.
TRAINING AND DEVELOPING TALENT: Learning and performance
improvement have always been an integral part of talent management.
Employee training has a long history of ensuring an organization has a
skilled, motivated, and competent workforce. From orientation programs
and technical training classes experienced early in one's career, to
leadership development and executive coaching, training and
development is deeply woven into the fabric of talent management practices.
As we move into the 21st century, traditional models of workplace
learning will change as dramatically as any part of the talent
management equation. The dialogue in e-learning circles today is less about
which dimension of the movement, such as the development of technical
standards or the quality of content, will most fuel rapid adoption, but more
about the synergy of these forces and how they will build greater momentum
(Taylor, 2002).
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In a world where job performance is systematically monitored by a
sophisticated learning management system, short, targeted performance-
based lessons can be delivered in real time and exactly when needed in
order to address specific tasks and skill weaknesses. Unlike in the past
when learning largely took place in settings away from the actual job,
workplace learning will become more and more integrated into the
daily work flow. Learning technology will facilitate the combination of
improved workplace performance metrics with compelling, interactive
content ultimately to make working and learning a seamless experience
POPULATION WORRIES GLOBALLY: Country like India can boast of a
young population in the coming and present times. Population demographics
are thus a disturbing factor for people managers.
TREATING TALENT FAIRLY: Treating talent fairly in all respects is critical
for motivating and retaining employees. Issues revolving around fair
treatment of employees are not restricted to racial considerations. Sex
discrimination and sexual harassment in the workplace have become more
widely discussed concerns around the world during the 1990s, partly
because the globalization of business and the push of regional economic
alliances, such as the European Union, have driven the need for
common standards (HRI, 2003). Organizations like the International Labour
Organization are pushing international standards to prevent sex
discrimination and harassment.
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Disability discrimination has triggered protection in other parts of the
world which in turn has led to positive steps by employers. For example,
Japan's mandated requirement for quotas on the employment of the
disabled has led most companies represented in Japan to create
programs specifically for the recruitment and training of the disabled
For practical reasons alone, we can be optimistic that organizations will
continue to strive to treat talent fairly in the years to come.
Regardless of whether this results from simple enlightened self-interest or
some level of social conscience, as an end result organizations will want
to be known as a place where talent is valued and grown.
TALENT MANAGEMENT TO RESCUE HR: HR has been compelled to
focus on qualitative aspects equally and even more than quantitative
aspects like the head count etc. Through talent management more effort is
now being laid on designing and maintaining employee scorecards and
employee surveys for ensuring that talent is nurtured and grown perpetually.
INCREASE IN EMPLOYER OF CHOICE INITIATIVES: An organization‘s
perceived value as an employer as helps improve its brand value in the eyes
of its consumer. Most importantly it helps it attract the right talent.
6.5 EMPLOYEE ENGAGEMENT MEANS HIGHER PERFORMANCE.
We all know that teams with the best people perform at a higher level. We
also know that to deliver topline even the best people need to be engaged,
developed, and rewarded.Leading organizations know that exceptional
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business performance is driven by superior talent that‘s managed with
consistent processes.Analyst research has proven that organizations using
talent management strategies and solutions exhibit higher performance than
their direct competitors and the market in general. From Fortune 100
enterprises to small and medium businesses, companies that invest in talent
management achieve significant returns. They know success is powered by
the total talent quality of their workforce.
Source: (http://en.wikipedia.org/wiki/Employee_engagement)
Figure 6.5.1 Employee Engagement
HR professionals and line managers need talent management insights to
know more about their people and make better decisions faster. They have
information that they need to know:
How can we align individual goals to team and organizational goals?
Who are my highest performers and what are their career paths?
What is my best source of hire and how can I better focus my recruiting
efforts?
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Who are my future leaders and how can I effectively foster their
development?
Who requires a higher merit increase to avoid turnover risk and business
disruption?
Who are my top internal and external candidates if my VP of operations
leaves?
Who needs additional development before they can assume greater
responsibility?
Employees in high performance organizations have clear performance
standards, receive the training needed to keep up with new demands and
are encouraged to participate in decisions affecting their work and to be
innovative. They also indicate that co-worker cooperation in goal
accomplishment is high. An engaged workforce is one in which employees
possess a strong sense of organizational pride, proactively recommend
their organization as a good place to work and are committed to staying with
their employer given their high level of overall satisfaction.
Talent management is a recurring topic among executives & board
members. But what does it really mean, and why is it important? Attracting
and retaining talent has become a boardroom issue that is steadily climbing
higher on the corporate agenda. Talent management risk centers on the
danger of losing key competencies (including members of leadership) that
allow an organization to achieve its business goals.
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In response, companies are focusing on developing recruitment, training and
retention programs to help ensure that needed skills are available in the
future. Talent management is about more than managing physical bodies
that come to work each day. It is about managing human (or people) capital,
a phrase that describes an intangible resource comprising your employees‘
knowledge, abilities, capabilities and skills. Technologies, products and
strategies can be replicated, but it is people who enable a company to
innovate, differentiate and succeed. Harnessing that human capital requires
elevating your view of talent management to a more strategic level.
Talent management and enhanced business results. Superior talent
management correlates strongly with enhanced business performance. An
analysis of the survey data found that companies whose talent management
programs are aligned with their business strategy deliver a return on
investment that is, on average, 20% higher over a five-year period than
companies without such alignment. Among companies that integrate key
elements of their talent management programs, the results are even more
dramatic.
Companies seeking a competitive advantage in today‘s marketplace will
view talent management as a process that connects a company‘s strategy
with its mission, vision and values, and the way it manages and develops its
people.
Effective talent management policies and practices that demonstrate
commitment to human capital result in more engaged employees and lower
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turnover. Consequently, employee engagement has a substantial impact on
employee productivity and talent retention. Employee engagement, in fact,
can make or break the bottom line. Employees who are most committed
perform 20% better and are 80% less likely to resign. In addition, the
foundation for an engaged workforce is established by the quality, depth and
authenticity of communication by HR and senior management to employees,
as well as the quality of supervision.
The role of the manager as the most important enabler of employee
commitment to the job, organization and teams cannot be overemphasized.
Furthermore, when done well, practices that support talent management
also support employee engagement (e.g., work-life balance programs—flex
time, telecommuting, compressed workweeks, reward programs,
performance management systems). Rewards and recognition also help
both to retain talent and to improve performance.
Study on employee engagement and business success showed that
employees who were extremely satisfied at work were four times more likely
than dissatisfied employees to have a formal measurement process in place
as well as receive regular recognition. Further, 82% said recognition
motivated them to improve job performance. Increasingly, organizations are
putting formal and informal reward programs in place.
To be most effective, however, organizations must regularly communicate to
employees about reward programs. Discussing reward programs as early as
during the interview process demonstrates that the organization values its
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employees.The process of building employee engagement is ongoing.
Beyond compensation and benefits, employee engagement is best fostered
through a meaningful and emotionally enriching work experience.
Effective employee engagement—a mixture of tangible and intangible
factors—fosters an environment of stimulation, development, learning,
support, contribution and recognition. However, a recent study found that
less than one-fifth of employees were highly engaged, one-fifth of the
workforce was disengaged and about two-thirds were moderately engaged.
The impact of employee dissatisfaction varies, depending on work
experience (e.g., overwhelming workloads, distant and non-communicative
senior leadership, few developmental opportunities). The risk is that
moderately engaged employees may move toward being disengaged. The
opportunity and challenge for HR, working with senior management, is to
increase the strength of employee engagement.
Focus on engagement demands strong leadership, a sense of shared
destiny, autonomy, accountability and opportunities for development and
advancement. To better engage workers, companies must work harder to
inspire people and provide a sense of passion, pride and mission. Ultimately,
it is organizational culture that determines employee engagement and
retention of talent.
Every company and country faces unique challenges, and no single talent
management program or approach applies to all of them. Talent
management (how an organization manages and develops its people
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consistent with its business strategies) must be an integral part of the
business strategy to be effective. Managing talent means trying to harness
the full potential of your human or people capital—that intangible resource
that brings with it the complexities of and connections to human behavior.
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Chapter – 7
THE NEXT GENERATION TALENT MANAGEMENT
7.1 NEXT GENERATION TALENT MANAGEMENT (NGTM)
Great businesses however are skilled at developing and deploying talent in
ways that continuously grow their experience, stretch their abilities and
enable their achievements. Creating work environments that promote people
agility across jobs and organizational boundaries is the next imperative for
companies seeking competitive advantage through their talent. It is
surprising how few companies develop and move their talent around the
organization. They know how to recruit stars, fire failures and replace
leavers – but few seem to know how to provide one of the most important
factors in retaining talent – opportunities to achieve, move and grow – within
the company.
To be most effective, however, organizations must embrace next-generation
talent management thinking and approaches. This means building a robust
talent infrastructure which includes four key factors: sustainability, a focus on
distinct populations, alignment and shared ownership.
Companies are cautiously planning their next moves with one key goal in
mind: re-igniting growth. In previous eras, business leaders have focused on
driving growth through innovation, R&D, and customer centricity. Talent
management was rarely high on the agenda. However, this time around,
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businesses are recognising that a deep insight and knowledge of their
workforce is the key to unlocking the company‘s talent to drive growth.
In developed economies, Talent Management commands attention due
to aging workforce that is expected to retire at any moment. In developing
economies, Talent Management generates interest due to explosive
business growth, aging workforce, and widespread hijacking of talent
across national borders. While Talent Management is sometimes a term in
search of a meaning, traditional Talent Management is usually understood
to mean systematic efforts to recruit, develop and retain highly productive
and promotable people. But the needs of business really go well beyond
that. There is thus a need to think beyond traditional Talent Management to
Next Generation Talent Management (NGTM)
What model can help practitioners conceptualize NGTM? How practitioners
get started in implementing NGTM? These are the key questions, which will
be answered as follows.
What model can help practitioners conceptualize NGTM?
All the best approaches to talent management share a common element:
they are guided by a strategic model that helps practitioners integrate,
and communicate to stakeholders, how all the individuals efforts fit
together systematically. The NGTM goes beyond the mere consideration of
identifying, developing and retaining productive and promotable people. It
includes how the work is performed (which will change performance and
promotability requirements), inventorying in-house experts (know as
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high professionals), considering ethics and values as well as performance,
preparing for the transfer of specialized knowledge, and preparing for the
transfer of social networks.
The NGTM is often integrated with a career planning program in which
individuals are challenged to clarify their future life/ career goals and
identify their own developmental needs to meet their career goals.
7.2 MODEL OF NEXT GENERATION TALENT MANAGEMENT
The steps of the model are described below
STEP 1: Get Commitment; clarify Roles and Goals, and Build.
STEP 2 : Clarify what work people do, what people successfully do the
work, & who possesses special knowledge & special social relationships.
STEP 3: Evaluate Present Performance.
STEP 4: Recruit and Select Appropriate People from Inside and Outside the
Organization.
STEP 5: formulate future talent requirements and align with strategic
objective.
STEP 6: Assess Individual potential for promotion and individual values and
ethics.
STEP 7: Inventory Existing Talent.
STEP 8: Plan for Individual Development.
STEP 9: Systematically Retain People and Transfer Knowledge and Social
Relationship.
STEP 10: Evaluate Results.
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STEP 1: GET COMMITMENT; CLARIFY ROLES, GOALS, AND BUILD
ACCOUNTABILITIES:
No Talent Management effort can thrive unless it enjoys the full
commitment of top, middle and lower- level managers. For that reason,
securing and sustaining management commitment is the essential first step.
Managers must do more than pay lip service to Talent Management. They
must demonstrate efforts to support it every day through their actions.
They must devote personal time to it. Each key group of stakeholders in the
organization- top managers, middle managers, first- line managers and
workers- has roles to play in the Talent Management effort. These roles
must be clarified and communicated. Further, individuals must be held
accountable for carrying out their roles and getting results. One way to do
that is to build talent acquisition, development and retention directly into
the Key Performance Indicators (KPI‘s) of each manager. A second way is to
reward people for achieving measurable talent management goals.
Talent Management efforts may, of course, has many goals. These must be
clarified and prioritized. Managers must agree on them so that the Talent
Management does not try to be all things to all people.
Typical Talent Management goals may include the following:
Preparing sufficiently well- qualified replacements before key leaders
retire.
Preparing sufficient numbers of well- qualified people to support
business expansion.
Recruiting high potentials from outside the organization.
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Developing high potentials inside the organization.
Role- modeling Talent Management efforts by developing self and
others.
Of course, many such goals may exist. The goals should be formulated
based on business needs and should be made measurable.
STEP 2: CLARIFY WHAT WORK PEOPLE DO, WHAT PEOPLE
SUCCESSFULLY DO THE WORK, & WHO POSSESSES SPECIAL
KNOWLEDGE AND SPECIAL SOCIAL RELATIONSHIPS:
It is not possible to implement an effective Talent Management program if it
is not clear what work people do and what kinds of people are needed to do
the work. Hence, it is necessary to update job descriptions, which describe
the work that people do, and formulate competency models, which
describe the successful people who do the work. Job descriptions must, of
course, be tailored to meet the unique needs of the organization. The same
principle also applies to competency models, which are influenced by the
corporate culture.
One way that organizational leaders can influence the organization‘s
talent requirements is by changing how the work is done. If work is
outsourced, in sourced, simplified, process- improved or otherwise
changed, then the competencies required to do the work is changed.
Hence, it is possible to change what competencies are needed to
accomplish organizational goals by changing who does the work and how
they do it.
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The NGTM goes beyond traditional Talent Management by adding other
elements as well. It pinpoints who possesses special knowledge, such as
institutional memory or special proprietary knowledge of the business. That
issue is usually understood to refer to the so- called knowledge
transfer problem. Efforts to solve the problem center around technical
succession planning and usually require practical solutions.
When experienced people retire or otherwise leave an organization, they
also take with them the social relationships that they have cultivated over the
years. These relationships have practical value, since customers, suppliers,
distributors and other key organizational stakeholders have usually
developed trusting relationships in working with individuals in organizations.
When those individuals leave, the stakeholders are not necessarily sure they
can trust the successors. There is thus need to plan for social relationship
succession.
STEP 3: EVALUATE PRESENT PERFORMANCE:
Performance management is essential to any talent management program.
While individuals should not be promoted solely because they are
performing well in their present jobs, it is also true that they should not be
promoted if they should not be promoted if they are failing in their
current jobs. Effective performance management programs should measure
both results (such as Key Performance Indicators (KPI‘s) and the behaviors
linked to the essential to job success.
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STEP 4: RECRUIT AND SELECT APPROPRIATE PEOPLE FROM INSIDE
AND OUTSIDE THE ORGANIZATION:
There are two ways to secure talent- develop it from inside the
organization or recruit it from outside. It is thus essential to think creativity to
outcompete other organizations in recruiting talent. At the same time,
most organizational leaders should review their job posting and other
internal recruitment programs to ensure that the best qualified people are
being recruited for each vacancy.
Selection methods should also be examined. On what basis are people
being chosen? Are the approaches based on the competencies essential to
job success? Or are other and perhaps less performance- oriented,
criteria being used in selection? A trend in selection is to use multiple
methods to judge the suitability of job applicants and demonstrate the
competencies linked to success.
A growing issue is an organization‘s ability to attract, develop and retain
people who are beyond traditional retirement ages. There are many reasons
why retires may be attractive. One is that they need less training to do their
jobs and be productive. Another is that they can help to provide
coaching- and even executive coaching- to break in successors or less
experienced workers.
STEP 5: FORMULATE FUTURE TALENT REQUIREMENTS AND ALIGN
WITH STRATEGIC OBJECTIVES:
Talent requirements do not remain static. As organizational leaders pursue
their strategic plans, talent requirements must be revised to ensure that
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people are being considered for promotion based on future, rather than
merely present, talent requirements. After all, people must be prepared for
promotion based on future needs, nit always current ones. It takes time to
develop people and for that reason it is essential to consider future talent
requirements and align them to the organization‘s strategic objectives.
STEP 6: ASSESS INDIVIDUAL POTENTIAL FOR PROMOTION AND
INDIVIDUAL VALUES AND ETHICS:
Assessing individual potential is all about determining if people can
perform at higher responsibility levels. It is commonly called potential
assessment. Good performers at one level- as measured by systematic
performance management- will not necessarily perform well at higher levels
of responsibility because different competencies are required. Common
approaches to assessing potential include manager nominations, multi- rater
assessment, psychological tests, assessment centers, realistic job
tryouts, and work samples. While potential assessment usually focuses
on comparing individuals to the competencies required at higher levels
of responsibility, recent thinking has suggested that organizational leaders
should also measure individuals against corporate values and corporate
codes of ethical conduct.
STEP 7: INVENTORY EXISTING TALENT:
How quickly and effectively can an organization marshal its talent in a crisis?
Finding talent is often done informally by asking managers. But that is not
necessarily an effective, or speedy, approach. And large organizations face
a particular challenge because there are so many people and each
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individual may possess unique talents and may even be a high professional
in his or her own right. How easy is it to find talent when it is needed?
Organizational leaders should thus establish competency inventories, based
on the problems faced by the organization, to catalog and find talent quicker
time is a strategic issue and finding talent quickly can make the difference
between competitive success- or failure.
STEP 8: PLAN FOR INDIVIDUAL DEVELOPMENT:
How are individuals groomed for higher levels of responsibility? The most
common way is to establish Individual Development Plans (IDP‘s) to narrow
developmental gaps between what competencies people must possess to
be qualified for promotion and what competencies they presently possess.
Many organizations have established Learning Management Systems
(LMS‘s) that make it easy for individuals to pinpoint appropriate
methods to build their competencies. Typically, IDP‘s indicate what
competencies people need to develop, how they will do it, what resources
they will use to do it, and how their learning will be measured or otherwise
assessed. Some approaches to developing individuals may be group-
oriented, such as in- house leadership development programs. Others may
be hands- on in which individuals are given specific action learning
projects that build their competencies while individuals are learning
from others. Still others can be individualized and may include on- the- job
learning or on- the- job coaching.
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STEP 9: SYSTEMATICALLY RETAIN PEOPLE & TRANSFER
KNOWLEDGE AND SOCIAL RELATIONSHIPS:
Few organizations have systematic retention programs that are geared to
keeping the best people. Exit interviews are just not enough. More often,
retention is handled on a case- by- case basis. Unfortunately, such
approaches usually result in treating some people differently from
others- thereby creating ill- will and eventually prompting more turnover.
What is needed is a consistent organizational approach to retention that
makes use of best practices I retention systematically.
Organizational leaders should also take effective steps to transfer the
special knowledge of high professionals- sometimes called in- house experts
or high professionals(HiPros)- who are not necessarily promotable but who
posse specialized competencies in solving unique problems confronting
the organization. Such experts can be highly effective mentors when they
are willing to transfer some of what they know to others. Finally,
organizational leaders should also take steps to transfer social relationships.
That is highly challenging. Many people have established a broad social
network to help them do their jobs.
For instance, some sales people are highly effective in finding the best
people to make decisions on sales. When these sales people leave the
organization for retirement, these social contacts are lost. But it is not as
simple as making introductions; rather, customers and others must learn
to trust successors. It is thus necessary to groom successors through a
series of projects so that customers learn to trust them. Of course,
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social relationships can also exist in occupations outside sales, and they are
just as important to transfer to successors.
STEP 10: EVALUATE RESULTS:
Evaluating Talent Management programs is a topical issue. Many
executives and HR practitioners wonder how to evaluate talent programs.
The NGTM programs, however, are evaluated by metrics established from
the initial goals identified for the program. Suppose, for instance, that a goal
of a talent program is to groom successors in preparation for a wave
of expected top management retirements. In that example, it would be
appropriate to measure the program based on how many and how well
individuals are prepared to meet that goal. That can be tracked annually.
7.3 THE ROLE OF LEADERSHIP IN TALENT MANAGEMENT
The time for ―talent‖ is now, with leadership routinely discussing human
capital as top source of competitive advantage. But moving business leaders
from talking the talk to walking the walk remains a challenge. It‘s a critical
challenge too, as talent management programs need to be driven from the
top to ensure lasting success.
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“Leadership is not making friends and influencing people, i.e.,
salesmanship. It is the lifting of man’s visions to higher sights, the
raising of man’s performance to higher standards, the building of
man’s personality beyond its normal limitations.”
--- Peter Drucker.
Business leaders have the opportunity to define core elements of any
strategic human capital initiative. From defining high-level business
objectives to identifying critical roles and competencies that will end up
defining the very nature of the talent culture, senior leadership plays a
fundamental role. But the business leader needs operational processes and
technologies to transform vision to reality –a integrated talent management
platform is one vital piece of this puzzle, delivering a unified view into talent
data, workflows, and process.
Leaders, directors, and managers, who constitute the leadership in an
organization, and members of the organization or workers, are required to
maintain an organization‘s existence. Their competencies acquired through
formal education and experience that improve the organization‘s productivity
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and revenues, are in essence the basis of human capital values. In order to
maximize the human capital values, leadership in the organization should
recognize the importance of the following aspects in human capital
management:
TALENT – Recruiting for the right talent through effective recruitment
and identifying talents already embedded in the organization, and further
develop these talents or potential capacity into needed competencies.
COMPETENCY – Applying competency based human resources
management whereby all job positions have the required competency
profile well documented and individual competency level of incumbents
periodically appraised.
TRAINING, EDUCATION, ON THE JOB EXPERIENCE – Investing on
improvement of individual competency in line with their respective talent
into the required level of competency of the job position.
PLACEMENT, ROTATION, PERFORMANCE MANAGEMENT – These
are essential processes in managing talents and competencies: to
develop the right talent for the right competency to carry out current or
future job assignments. Good talent based manpower planning reduces
development cost, cycle time, improve productivity, and creates
employee satisfaction. Effective performance management leads to
improvement of human capital values.
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HEALTH AND SAFETY – Attention to personnel health and safety are
paramount to ensure that the organization‘s human capital performs well
and grows to higher value.
MOTIVATION, INNOVATION – These represent the people aspect of
human capital which do not exist in other physical capital. Highly
motivated, innovative and creative people with the right talent based
competency well developed will ensure high value of corporate human
capital and growing corporate wealth.
Research showed that the involvement of top executives in driving or
actively participating in the talent management strategy is critical to its
success. In the context of Asian culture, proactive role or role modeling and
demonstrated commitment of top executive and leadership in the
organization are utmost importance to ensure snowballing effect for a
successful implementation of the talent and competency based human
capital management throughout the organization.
Economic benefits of the integrated talent and competency based human
capital management include, among other things: increase revenues,
customer satisfaction, improve quality, increase productivity, reduce cost,
reduce cycle time, and increase return to shareholders and market
Capitalization. The intangible benefits include employees‘ satisfaction,
motivated work force, climate conducive to innovativeness and creativity,
and high individual and team performance.
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THE ROLE OF LEADERS:
Leadership is one of the rare and precious human capitals. Effective
leadership is a personal role that requires the blending of motivational,
strategic and management skills to align focus, energy and drive whilst
creating a culture that encourages individual thinking and attainment.
Ultimately leadership is about pushing ideas and thoughts forwards,
shouldering responsibility and unlocking hidden drivers and aspirations to
bring out the confidence of others. Harnessing energy in a strategic way that
inspires and unites a team towards achieving some common task.
The fundamental nature for the relationship between leader and followers is
that leaders need followers, and followers needs leaders. This type of
scenario appears to reinforce the need for leaders to require followers, and
followers to follow.
Some researches advocate that leaders ought to have an obsession
for talent management, so much so that the very idea consumes and
directs the strategy for the organization. Now, before you begin to think this
may sounds a bit far fetched, consider this the attraction of talent, as well as
the development of the same, are the major facet of organizations today. In
fact, organizations that have worked to manage (encourage, develop and
retain) talent are the very organizations that have that ―it‖ factor and have the
competitive advantage in the market place. These organizations are the
ones who have fostered an environment where the employees are free to
think. To learn, to grow, to take risks, to think outside of the box, to safe
environment, to share information etc.
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Management is a high beneficiary if having high talent around. Bottom line-
tasks are accomplished at a much more efficient level. In fact, a recent
study showed top executives, in organizations of over $1 bn in yearly
revenues; spend about 20-40% of their time devoted to talent
management. Why? They know that nurturing and managing talent in
their organizations provide them with a competitive advantage they
cannot obtain otherwise. In addition, another clear benefit is the ripe crop of
leaders in the organization being developed from within. Organizations
are more consistently promoting from within. Studies suggest that over
60% of organizations are looking internally for talent to promote.
Leaders are increasingly seeing their very own in house high potential
employees as their largest sources of leadership.
LEADERS AND FOLLOWERS :
Leader presumes follower. Follower presumes choice. One who is coerced
to the purposes, objectives, or preferences of another is not a follower in any
true sense of the word, but an object of manipulation. Nor is the relationship
materially altered if both parties accept dominance and coercion. True
leading and following presume perpetual liberty of both leader and follower
to sever the relationship and pursue another path. A true leader cannot be
bound to lead. A true follower cannot be bound to follow. The moment they
are bound, they are no longer leader or follower. The terms leader and
follower imply the freedom and independent judgment of both.
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Many of the research endeavors conducted the area of leadership
illustrate environments that appear to nurture a leader and follower
hierarchy within organizations. It is the quality of the relationship of leaders
and followers, all the way up and down the organization chart, that makes or
breaks organizations Is also appears as though many of the leadership
theories and models operate within a similar organizations hierarchy where
leaders lead followers and followers follow the leaders.
This scenario leads one to think about the implications of the leader-follower
relationship. Is it in the best interest if the effective executive (and the overall
organization) to create the environments where leader lead and followers
follow, or is it more fitting for the leaders of organizations encourage
environments where generating new talent pools of individual is the
norm? Other considerations need to be at the forefront of any
investigation into the management of talent such as gender issues and
the criteria associated with gender and leader/follower relations.
True leaders are those who epitomize the general sense of the community
— who symbolize, legitimize, and strengthen behavior in accordance with
the sense of the community — who enable its conscious, shared values and
beliefs to emerge, expand, and be transmitted from generation to
generation-who enable that which is trying to happen to come into being.
The true leader‘s behavior is induced by the behavior of every individual who
chooses where they will be led.
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It is suggested that all individuals have specific cognized goals, wants, and
needs that can be directly associated with one‘s employment. Although
happiness may be an under-investigated construct within organizations, it
certainly contributes to the environments and overall climate within the
organizations and affects how people work within the organizations.
On the other hand, employee satisfaction has been studies for several
decades. Although the job satisfaction-performance connection is undecided
by all, it is clear that job dissatisfaction leads to increased turnover
intentions, role withdrawal, absenteeism and other dysfunctional reactions
such as avoidance of work and defiance.
Therefore, satisfied employees are more likely to stay engaged in their
work, cooperate with co-workers, not look for new job and perform more
effectively than those employees who are dissatisfied before we investigate
what factors contribute to talent management within organizations, we must
first discuss the posture of organization regarding leaders and
followers.
It is true leadership; leadership by everyone; leadership in, up, around,
and down this world so badly needs, and dominator management it so
sadly gets.
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7.4 BUILDING A CULTURE THAT FOSTERS TALENT
Culture: If you build it (right), the talent will come (and stay)
Creating and maintaining a talent-rich culture is especially important today
because talent is difficult to find. ―The War for Talent,‖ the demand for highly
skilled people outstrips supply. This is a challenge so many organizations
are confronted with today, and finding the delicate balance between
producing results and retaining and engaging employees can be difficult.
Given today‘s uncertain economic landscape—companies are still
downsizing and doing ―more with less‖—the risk that employees could
become disengaged is greater than ever. At the core of the solution is
creating a sustainable talent culture. Studies show that creating a talent-
focused, supportive company culture is part of what drives individuals to join
and stay within an organization.
Leaders and talent management professionals create a positive work culture
that encourages people to stay, emphasizes learning and talent
development, continually refreshes current talent and attracts new talent.
Business leaders who prioritize healthy, talent-rich cultures share the
following characteristics:
VALUE DIVERSITY: Recognizing the importance of diversity—which spans
perspectives, backgrounds, ethnicities, religions, etc.—successful business
leaders actively seek out and pursue alternative points of view.
Understanding that their world view is not all encompassing, they are able
to leverage others‘ perspectives to gain a competitive advantage.
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MAINTAIN A HIGH LEVEL OF CANDOR: Talent processes are visible and
people know where they stand. Conversations are transparent and open
with both the individual and their employers.
ENCOURAGE MOVEMENT CROSS-COMPANY: While leaders want to
have the best talent on their team, they also look for opportunities to cross-
pollinate talent across the organization. They realize moving and stretching
are essential in adding depth to the talent pool around them.
FLEXIBLE AND OPEN TO TRY SOMETHING NEW: New is not seen as
―frightening‖ by leaders seeking to develop talent or change the culture. It is
seen as a way to implement positive change, challenge the status quo, and
learn from the company failures and achievements that result.
DEVELOP AND COACH TALENT: To foster talent development, leaders
look to evaluate their employees‘ talents and actively encourage the
development of their people through clear, specific, and constructive
feedback and training mechanisms.
ASSUME ACCOUNTABILITY FOR HAVING AND DELIVERING ON
TALENT PLANS: Not only are talent plans emphasized as a critical part of
the development journey, they should be a part of the fabric of a
development-oriented culture. Plans are created, have a follow up
mechanism, and encourage active engagement to aid in development and
succession planning efforts.
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ACT AS COMMUNICATION CHAMPS FOR TALENT INITIATIVES:
Business leaders at talent-rich cultures vocally champion opportunities for
their employees to move on and gain experiences that further their skill sets.
These leaders proactively seek out opportunities rather than wait on HR to
make promotional decisions.
ENGAGED IN DEVELOPMENT INITIATIVES: Leaders that value rich,
diverse talent stay engaged in the process and make it easier for employees
to enhance their skills and access resources that can take their careers to
the next level. They are committed to developing those around them as well
as themselves and make learning a top priority.
Source: (Phillips, J. J. (2005). Investing in Your Company‟s Human Capital.
United States of America: AMACOM)
Figure 7.4.1 The Talent Optimization Framework
Talent Optimization Framework, shown in Figure 8.4.1 above, focused on
comparing results between top and bottom quartiles for business outcomes
on each of their eight levers. They found that organizations with a stronger
score in the Supportive Culture lever of their talent framework had a 30%
KEY ENABLER TALENT SUCCESS FACTOR BUSINESS IMPACT CONSULTATION
+ =
LEADERSHIP
CULTURE
STRATEGIC
ALIGNMENT
PERFORMANCE
MANAGEMENT
TALENT
ASSESSMENT
HUMAN
RESOURSE
CAPABILITY
LEADERSHIP &
DEVELOPMENT
TALENT DATA
ANALYTICS
THE BEST
TALENT
LOWER
COST
IMPROVED
DIVERSITY
OF TALENT
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increase in achieving greater business outcomes than those in the bottom
quartile. Further, they demonstrated that organizations focused on creating a
supportive culture had a 10% positive impact on improving business
outcomes, even if the other levers of the model were considered average.
Having a framework in mind for what this could look like can be imperative
for structuring talent initiatives and then communicating the overall vision for
talent with others in the organization.
Factors to consider when changing an organization‘s culture to emphasize
the growth of its talent. The themes that talent managers should keep top of
mind when thinking about how to implement these changes include:
Culture matters – By having a supportive culture, HR executives and
business leaders can better retain talent and maximize team growth and
output.
Focusing on people is positively correlated to improved performance.
Effective talent management strategies start at the top and start from
day one.
Learning should be a continuous process for each individual and should
demonstrate value and ROI over time.
Keep in mind the positive traits and characteristics of talent-rich cultures
and make strides to incorporate these in your own organization.
It is possible to change work culture so that it positively affects
employees and the bottom line. It will not occur overnight, but with a few
simple steps conducted regularly, the talent will flourish.
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7.5 THE TALENT MANAGEMENT IMPERATIVE
It is estimated that organizations spend anywhere from 40 to 70 percent of
their total operating spend on payroll and other direct employment expenses.
And yet, very few organizations make decisions about their people with the
same discipline and confidence as they do about money, clients and
technology. Organizations that focus on maximizing their investment in
people, rather than administering it, understand they will gain a significant
competitive advantage. Organizations embark on the path toward
maximizing their investment in people by first identifying the workforce as an
asset. This asset requires the same level of business discipline for
optimization and management that would be expected of other business
capital (i.e. financial, property, technology, etc.). Organizations that
effectively optimize human capital focus their talent management strategy
around three key principals: business focus, agility and alignment. Talent
management has emerged as a corporate mandate for organizations
seeking to create competitive advantage through human capital assets.
IT‟S ABOUT THE BUSINESS
After years of paying service to the notion, successful organizations are
beginning to take action on the all too common platitude ―our workforce is
our greatest asset.‖ They are linking key business initiatives with talent
management principles to rapidly address new business opportunities and
challenges, ultimately developing and allocating the right people with the
right skills and experience at the right time.
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By increasing productivity and motivating workforce behavior, talent
management leads to higher levels of organizational performance, including:
Rapid product introductions
Improved service delivery
Increased innovation
Lower production costs
Increased on-time, on-budget projects
Higher customer satisfaction
Sustained organizational improvements
THE AGILE WORKFORCE
For most organizations, the last decade has been defined by the search for
incremental and sustainable increases in productivity, profitability and
competitive edge. Organizations expanding into new markets and
developing new products and services depend on their people to conceive,
communicate, lead and execute those initiatives. Being able to rapidly
address new organizational opportunities and challenges by developing and
allocating the right people with the right skills is the essence of workforce
agility. Organizations are increasingly recognizing they lack insight into their
current workforce and lack an understanding of how the HR function can
fundamentally assist in enabling the execution of business plans.
Progressive HR leaders understand that they can begin to contribute to
organizational initiatives by establishing business processes that manage
the supply and demand of talent. Integrated and dynamic internal mobility,
succession, career development and recruiting processes enable
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organizations to optimize the knowledge, skills and deployment of their
workforce to meet the goals of mission critical initiatives.
THE ALIGNED WORKFORCE
To successfully execute business objectives of growth, profitability, customer
satisfaction, etc., companies must align the performance of their people to
corporate goals. That is, people must understand what they need to do, be
able to do it and be rewarded for doing it well. Successful organizations
recognize that their competitive differentiation hinges on ability to
purposefully connect the workforce with the business goals and to motivate
behavior that contributes to organizational performance. In aligning an
organization‘s workforce, new processes and enabling technologies
essentially transpose strategy statements into day-to-day work activities that
can be measured.
Effective alignment allows work to be measured through performance
metrics and scorecards to create a shared vision. Cascading goals establish
a direct line of sight from what an individual does, to the measured business
result, instilling a greater sense of personal accountability towards a
common goal. As the final component to a fully aligned environment,
executives must establish incentives that link individual behavior and
success to the achievement of corporate objectives. Pay-for-performance
reward structures serve to motivate behavior that supports the goals and
strategy of the organization. Those that have deployed consistent, unbiased
pay-for-performance initiatives have realized strong benefits, both qualitative
and quantitative.
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Effective alignment allows work to be measured through performance
metrics and scorecards to create a shared vision.
7.6 RECENT STUDIES ON TALENT MANAGEMENT
Studies on talent management reveal a number of common themes. First,
the focus on talent management forces companies to become aware of—
and assess—their workforce talent and current and future talent needs.
Second, organizations that understand the business case for talent
management successfully link talent management and organizational
strategy, reaping benefits in increased workplace performance. Third,
organizations are seeking effective ways to measure talent and determine
bottom line impact.
• 2005 TALENT MANAGEMENT STRATEGIES SURVEY
According to this study, 43% of companies see retention of key talent as the
issue that will have the most impact on their business. Further, 72% of
organizations are concerned about the negative effect on the bottom line
due to inadequate skills of incoming workers. The study emphasizes that as
baby boomers turn 62 in 2008 and skills gaps widen, the impending talent
crisis will quickly become a global, cross-industry threat. For example, 33%
of companies state that 11% of their workforce may retire in the next two or
three years. For 31% of companies, the issue of retirement and impending
skills shortages is being discussed at the board level. However, only 50% of
organizations have a defined list of critical skills for the future.
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• THE HIGH - PERFORMANCE WORKFORCE STUDY 2004
Executives in six countries spanning more than 15 industries were surveyed.
The findings reveal six practices that dramatically improve workforce
performance, yielding strong contributions to business performance. The
number one practice is a formal process for talent management, supported
by technologies, that enables an organization to objectively assess
employee skills and capabilities and quickly identify the best candidates for
open positions.
• SURVEY OF GLOBAL TALENT MANAGEMENT PRACTICES
This survey explores global talent management practices among
multinational companies (MNCs), focusing on global-scale processes to
identify and develop leaders. According to the study findings, the most
effective processes for identifying talent and increasing visibility of high
potential candidates are assessment processes with open and frank
discussions. Yet not all MNCs consider these discussions at the same level;
80% of American companies see talent review meetings as open and frank,
compared with 55% of European companies. Many MNCs explicitly seek
and encourage diversity in their talent pools. Within development planning,
the most critical experiences are those that provide high potentials with a
broad organizational view, visibility and experience outside of their comfort
zones (e.g., participation on global task forces, two- to three-year
international assignments, inclusion in critical meetings).
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• HOW LEADING ORGANIZATIONS MANAGE TALENT
From in-depth interviews with HR leaders of large employers in a variety of
industries, this study reveals that leading companies make attracting,
engaging and retaining employees a strategic business priority. leadership
focuses on clearly communicating the business strategy to the workforce as
well as defining the role people play to execute that strategy. Effective
leaders have a clear understanding of what drives value in their
organizations, what motivates their customers and how to achieve growth in
the future. Many companies have developed talent management metrics to
support business and financial measures, with metrics built into the balanced
scorecard. Through the performance management system, managers are
held accountable for employee retention and creating opportunities for high-
potential employees.
Looking to the Future Anticipated workforce changes and cost-effective
ways to access talent are key to the next generation of talent management.
Predictive workforce monitoring will lead to effective strategic talent decision-
making. Factors such as flexible talent sourcing, customized and
personalized rewards, distributed and influential leadership, and unified and
compassionate workplace cultures will be important for successful talent
management. Companies will increasingly utilize different types of
employment relationships, and nonstandard employment models will
continue to evolve. Free agency employment relationships—contracting for
the best talent on an as-needed basis—will become more common. To
benefit from the knowledge, skills and corporate memory of mature workers,
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phased retirement will become prevalent. Keeping workers engaged—
particularly the next generations—may call for HR to redesign the workweek,
benefits packages and reward programs.
Scenario planning and talent-match databases will become essential
planning tools. In closing, to sustain outstanding business results in a global
economy, organizations will rethink and reinvent their approaches to talent
management. Effective talent management calls for strong participatory
leadership, organizational buy-in, employee engagement and workplace
scorecards with talent management metrics. Companies that master talent
management will be well-positioned for long-term growth in workforce
performance for years to come.
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Chapter – 8
SHIPBUILDING IN INDIA
8.1 SHIPBUILDING INDUSTRY – AN OVERVIEW
The ship building industry enjoys strategic importance in view of its role in
developing a country‘s shipping fleet. Being a labour intensive industry,
countries with low wage levels are ideally suited for ship building activities.
The ship buildingsector is a global industry with China, South Korea and
Japan controlling 78% of the total market share. India is a very small player
with an insignificant market share.
Indian shipbuilding industry has also witnessed healthy growth in the recent
past. Spurred by this recent growth several companies are setting up
Shipbuilding capacity. The existing shipyards are aggressively expanding
capacity. The overall announced investment of the upcoming private
shipyards exceeds INR 200 billion, all proposed to come online within the
next 5-7 years.
Given the inherent labor intensive nature of the shipbuilding industry, India
has a Natural advantage by virtue of its lower cost of labor and availability of
skills. However, in order to establish India as a preferred shipbuilding
destination. Certain areas have to be addressed. Elimination of regulatory
hurdles and Continuance of support in line with that enjoyed by competing
nations like China and Vietnam are required for the industry to develop
scale.
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Shipbuilding is a cyclical industry, where variables like fresh developments in
the shipping industry, current market perception, government tax and
reforms. The development of the shipbuilding sector has the potential to
positively impact the economy including service sectors.
Indian shipyards have certain advantages over shipyards in developed
nations. India possesses a large pool of technical workers, and its cost of
workforce is relatively low, compared to most other shipbuilding countries.
Apart from this, the Indian navy usually gives orders to Indian shipyards
based on national interests. This will also act in favour of the Indian
shipbuilding industry.
Shipbuilding acts as a catalyst for overall industrial growth due to spin offs to
other industries, including steel, engineering equipments, port infrastructure,
trade and shipping services. The indirect potential of shipbuilding industry in
employment generation and contribution to GDP
Shipbuilding which includes, shipyards, marine equipment manufacturers,
and a large number of service and knowledge providers, is an important and
strategic industry in a number of countries around the world. Shipbuilding is
a globalized, technology-based, and capital intensive industry.
8.2 HUMAN RESOURCE DEVELOPMENT IN SHIPBUILDING INDUSTRIES
Due to the high quality of training imparted to maritime personnel, India has
always been regarded as a major source of skilled manpower for world
shipping. India has around 150 training institutes with four in the public sector
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and around 146 in the private sector, capable of producing 11,164
seafarers (4,575 officers and 6,589 ratings) annually.
RECENT INITIATIVES
RECRUITMENT AND PROMOTION
To facilitate the mobility of manpower from one port to the other, appointments
at senior levels will be effected through a composite method where eligible
officers from all major ports fulfilling the criteria would be considered.
Recruitment and promotion rules of such appointments shall also be
standardized.
INCENTIVES
To improve the efficiency of ports, the Government has allowed incentive
programs to be implemented by ports. Under these programs, the performance
of port officers/personnel would be monitored by respective ports regularly and
incentives like awards /mementos / remuneration for each year would be
awarded. Incentives programs have been undertaken at various ports. The
incentive programs initiated for crane operators at Jawaharlal Nehru Port Trust
(JNPT) has led to an improvement in productivity parameters.
DOCK LABOR BOARDS
To enable interchangeability of labor, the Government has introduced the Dock
Workers {Regulation of Employment (inapplicability to Major Port Trusts)}Act,
1997, that provides for merger of Dock Labor Boards; it has been implemented
by most ports.
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TRAINING
Training programs for port officers and employees have also been identified as
important under a recent initiative. It is proposed that there would be
induction/foundation courses for new entrants and departmental promotes. The
curriculum of the training program would be designed to cover the
multiple activities carried out at a port. Refresher courses would also be
conducted at regular intervals to keep pace with the latest developments.
Successful completion of training courses would be made mandatory for
promotions. Training institutions will be encouraged to collaborate with reputed
counterparts abroad for upgrading skills of both trainers and trainees.
AREAS TO BE ADDRESSED
CALCULATION OF PRODUCTIVITY LINKED REWARD
The present scheme of payment of productivity linked reward is based on
certain productivity parameters calculated on an all-India basis. The payment is
made out of the resources of the port trusts and each major port trust is an
independent entity. So the scheme may need to be relooked at, based on
productivity parameters of individual port trusts.
RETENTION AND TRAINING FOR PERSONNEL
While training has been identified as a focus area by the Government, it is also
necessary to address the need for training for special skills in areas where
ports face manpower shortage. This includes training for crane operators,
pilots, Vessel Traffic Services (VTS) operators, etc. Incentives should be
provided to ports to invest in training infrastructure such as simulators, etc.
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Plans should also be developed to retain key staff such as pilots, IT personnel,
VTS operators, etc.
DEVELOPMENT OF TRAINING CURRICULUM
The Indian maritime training system lacks consistency in content and methods
owing to the absence of a regulatory body. The large number of private
institutions with no control has led to allegations about the quality of training in
the country. There is a need to re-design the courses, reducing focus on theory
and increasing focus on practical aspects. Another issue is the lack of slots at
ports and ships which results in delay for cadets to start their training.
Arrangements should be made to ensure that institutions make arrangements
for the required number of training slots before intake of cadets.
India's maritime sector is witnessing promising growth, which is reflected in the
increase in the demand for infrastructure and services across the entire value
chain comprising shipping, ports, ship-building/repair, and logistics. While this
growth has exposed bottlenecks in infrastructure and service provisioning
across the sector, it has also opened up opportunities in each segment.
Therefore, it is critical to pursue comprehensive measures in the policy,
administration, and project level in each segment, so that bottlenecks are
addressed and opportunities are capitalized upon, thereby ensuring that the
growth momentum is sustained.
8.3 TALENT SHORTAGE IN INDIA‟S SHIPBUILDING INDUSTRY
India is a large peninsula with a coastline of about 7500 km. The nation
therefore requires a vibrant and strong shipbuilding industry for economic as
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well as strategic reasons. At present South Korea, Japan and China
dominate the shipbuilding industry. Despite a long coastline, good potential
and availability of favorable sites for shipbuilding, the country‘s share in the
overall shipbuilding tonnage in the world is around 1.12%.
Indian shipbuilding is mainly centered around ―27‖ Shipyards comprising of
―8‖ Public Sector and ―19‖ Private Sector units. A major share of the
shipbuilding capacity is held by public sector yards. Private Shipyards,
though more in number are severely limited by capacity and size of ships
they can build.
Ship design and Shipbuilding will require skilled manpower in various
disciplines viz. naval architecture, marine engineering, mechanical and
electrical engineering, production management, information technology etc.
in three tiers viz. Degree holders, Diploma holders and Technicians.
Presently, there is a shortage of such skilled manpower categorically in view
of the rise in Shipbuilding activities and future scenario.
To cope up with demand of the above mentioned qualified and skilled work
force for shipbuilding, will encourage setting up of educational institutes in
the private sector or with the private sector participation.
Will consider allotting land for setting-up of training and educational institute
purposes etc. The rate of such land shall be as per the prevailing norms.
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Pro-active actions by the industries to tie-up with the nearby ITI/ Polytechnic/
Engineering Colleges for imparting education/ training will be encouraged.
Will also encourage setting up a Shipbuilding Skill Development Centre in
the private sector.
The centre will primarily take up following assignments:
(a) Design of industry oriented curriculum.
(b) Workforce demand & supply monitoring system.
Will endeavour to provide necessary support/assistance and coordinate with
the concerned departments/agencies for Human Resource Development
related activities. Existing engineering college, polytechnics and ITIs will be
encouraged to increase the number of seats in various disciplines as per the
projected requirements. Beneficiary industries viz. Shipyard and ancillary
sector will be encouraged to extend financial support to all such Human
Resource Development institutions.
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Chapter – 9
BEST PRACTICES
9.1 ABG SHIPYARD LTD.
About ABG
ABG (Agarwal Business Group) Shipyard Ltd., the flagship company of ABG
group was incorporated in the year 1980 with 10 lakhs by takingover
Magdalla Shipyard Pvt. Ltd. with the main objects of carrying Shipbuilding
and Ship Repair business. ABG Shipyard Limited is an India-based
company. It is the largest private ship building and repairing company
operating in India. ABG Shipyard, state-of-the-art ship building or
manufacturing unit is located in Surat at Gujarat; India.The company's
shipyard is located at Magdala, near Surat spread across 35 acres on the
banks of the river Tapi. The yard can simultaneously build on modular basis
and repair up to 23 ships. Also the Surat plant is the first ever plant
constructed by the ABG Shipyard Ltd. Further, the manufacturing facility of
ABG Shipyard at Surat is at par with prevalent world standards and conform
to ISO 9001:2000 quality standards for production. The company is an
established manufacturer of a variety of marine ships, including bulk carriers,
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deck barges, interceptor boats, anchor handling supply ships, diving support
ships, tugs and offshore vessels.
The corporate office of ABG Shipyard Ltd is located at Mumbai, India. In a
span of 15 years from the year 1991, the company has achieved the status
of the largest private sector shipbuilding yard in India with satisfied customer
base all around the world.
MISSION:
To be a Global Marine Shipbuilding Company, offering customized full-
service solutions to our customers, enabling them to focus on their core
competencies.
VISION:
ABG Shipyard Limited shall be a world class Shipyard capable of building
and repairing vessels with the highest standards of quality, safety and strict
adherence to delivery schedules at very competitive prices.
ABG PEOPLE - SKILLS & TRAINING
The strong 275 ABG team represents a unique blend of skill, expertise and
camaraderie along with contractual labour consisting over 1200 people. Our
experienced and highly knowledgeable experts keep abreast of the latest
developments. Well trained and well equipped with sophisticated
technological tools, they rise to global challenges with finesse. ABG‘s
exclusive Vocational Training Programmes enable ongoing skill
enhancement. We integrate diverse skills such as creative and analytical
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thinking, technical know-how, managerial expertise, financial knowledge and
more to create highly motivated customer driven teams.
Employee Training Schemes:
Excellent relations with employees
Attrition rate - only 1% for management level.
A minimum training day at all levels is considered as 4 days per year.
Most training schemes based on skills improvement, self development
and safety culture.
9.1.1 TALENT MANAGEMENT AT ABG SHIPYARD
In a buoyant talent market, the Company continues to attract and retain
talent of the highest quality.ABG shipyard is a manpower driven industry and
believe that employees are key contributors to their business success. To
achieve this, they focus on attracting and retaining the best people possible.
They believe that a combination of their strong brand name, working
environment and competitive compensation programs allow them to attract
and retain talented people.
The manpower requirement for the new ship building facility is anticipated to
be around 5000 including contract employees. The existing ship building
facility is located at Surat and do not foresee any difficulty in the availability
of and recruitment of the requisite quality manpower. While certain senior
persons from the existing unit will oversee the operations of the new ship
building facility during the initial days, they would recruit both skilled and
unskilled manpower across various functional areas. While the ship building
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facility would require additional manpower, the human resource requirement
for the marketing and corporate department will not increase on linear basis
and shall start enjoying the benefits of economies of scale.
ABG shall recruit personnel for the new ship building facility closer to the
starting of commercial production of this unit. They place special emphasis
on the training of employees to enable them to develop their skills and to
meet changing requirements. They focus on an initial learning programme
for trainees as well as continuous learning programmes for all their
employees. For the purpose of training their employees, they organize in-
house and external training programmes.
ABG believe that well-trained employees are key enablers for the efficient
growth of their operations and ability to manage large, complex designs.
They are specifically focused on developing manufacturing and quality
control competencies among their employees. Some of their initiatives that
have helped to develop good managers include management development.
Programmes whereby experienced employees provides training on
importance of quality control measures, tools employed to achieve quality
products and discussions on new molecules being discovered. The training
programmes are aimed at ensuring optimum utilization of employees skills.
ABG seek to adopt a very open culture and a participative management
style, to enable employees to benefit most from the knowledge and skills of
the management and technical professionals. They have also linked
remuneration to performance, with certain portion of salary of management
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and research/technical professionals being earned as variable pay. They
strive to foster a feeling of well-being in their employees through care and
respect. They have several structured processes including employee
mentoring, grievance management and corporate ethics programmes which
are intended to facilitate a friendly and cohesive organizational culture. They
have established a mentoring program that enables them to facilitate and
associate themselves closely with their employees' interests and aspirations.
ABG Shipyard maintain high standards on safety at their shipyards. The
management is concerned with the safety and health of their employees and
maintains a safety assurance program to reduce the possibility of costly
accidents. The safety department establishes guidelines for compliance with
all applicable state safety regulations. They also provide training and safety
education through orientations for new employees and regular employee
safety meetings.
9.2 PIPAVAV SHIPYARD LTD.
Pipavav Shipyard Limited is now been formally renamed as "Pipavav
Defence and Offshore Engineering Company Limited"
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Overview
Pipavav Shipyard project was originally conceived and implemented by SKIL
Infrastructure Limited (SKIL).
A shipbuilding, ship repair and offshore fabrication complex is constructed by
the Company at Pipavav in the State of Gujarat, India. The complex is
spread over an aggregate area of 198.92 hectares (approximately 491.53
acres), comprising an SEZ unit spread over 95 hectares (approximately
234.75 acres) and an EOU spread over 103.92 hectares (approximately
256.79 acres). The EOU site adjoins approx 720 meters of dedicated
waterfront. The two sites are connected by a dedicated corridor road of
approximately 4.5 km length built by the Company.
MISSION:
To create visibility and value for all stakeholders on a sustainable basis by
leveraging on most advanced capabilities to exploit global opportunities.
VISION:
To make the Company one of the best in the world in every aspect with
focus on Defence, Offshore and Heavy Engineering in the coming decade
and to contribute humbly towards India becoming net exporter of warships,
oil and gas assets.
9.2.1 TALENT MANAGEMENT AT PIPAVAV SHIPYARD
TM has a high priority at PSL Talent development is part of the PSL‘s
culture, which is, for example, reflected in the promote-from-within policy and
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the belief that leadership development contributes decisively to PSL‘s
competitive advantage. TM is linked to the organization‘s overall growth
strategy, which aims at winning market. Looking at employee development,
there are some formal training and development programmes at PSL;
however, most development is achieved on the job, i.e. by direct manager‘s
support, mentoring, and the help of teammates. During the first year of
employment at PSL, every employee gets a 360-degree review. There are
multiple leadership development programmes and part of the evaluation and
compensation of line managers is based on the development of their
organisation. TM at PSL are the effective recruiting processes. Uniform
criteria are used during interviews, details about the assessments are
recorded for each candidate, and quantitative scores are assigned. Later,
performance is assessed against the baseline set during the interview.
PSL benefits from: training and skill development are encouraged and talent
is more easily retained, as there are promotion opportunities within the
organization; as it provides trust through organizational hierarchies, it
favours strong performance and facilitates decentralization, participation,
and information sharing; a sense of fairness and justice in the organization is
created, contributing to the establishment and maintenance of a meritocratic
culture i.e. a culture based on employees‘ achievement. However, this kind
of policy might create a risk of the tendency toward inward-thinking. That is
why PSL fills 20 to 30 percent of their middle management to senior
management positions with external recruits. Moreover, executives are
147
encouraged to become board members of other organizations and to
become members of professional networks.
People are hired and developed along principles fostering commitment. all
stakeholders, i.e. also the talents themselves, are accountable for
contributing in making the TM processes and systems robust. PSL sponsors
the leadership development courses for the senior leaders. This mirrors the
organization‘s idea that TM is both a leadership responsibility, as well as a
business process.
The management and the talent pool of Pipavav Shipyard is being
continuously strengthened by attracting the best talent available in domestic
and international markets that can cater to the exacting demands of
customers.
An exciting position is given with plenty of opportunity for growth, learning,
and advancement. This is always desirable, as a meaningful job that has the
potential to make a difference in the lives of their employees. Pipavav
Shipyard gives Financial support for employees who wish to continue their
education. They also provide increased benefits, stock options, more
vacation time, company cars, child care, and other perks.
Pipavav Shipyard believes in recognising their employees for the
outstanding performance. Everyone likes to be recognized for a job well
done, and nothing makes someone feel more appreciated than cold hard
cash. Employee feel that the company has some degree of loyalty towards
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them, which could in turn influence them to repay their employers with some
loyalty of their own.
Employees in Pipavav Shipyard are allowed to enjoy on casual days This
allows employees the chance to express themselves better and this creates
a more comfortable work environment. There is a proper interaction level the
managers spend some time to know their employees better. A thorough
understanding of an employee's goals, concerns, skill level, values, health,
and job satisfaction. At the same time the company will educate itself as to
which employees are the most valuable in both business and personal
sense.
Upper-level employees are trained as retention managers to help in the
seemingly never-ending battle to keep talent. A successful retention
manager must be aware of their strengths and weaknesses and have a
talent for listening, respecting, and understanding their employees concern.
Pipavav Shipyard believes that the company's strengths will enable them to
promote an image to help recruit and ultimately retain the best employees
out there.
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9.3 BHARATI SHIPYARD LTD
The voyage at Bharati Shipyard began in 1973. Bharati Shipyard Ltd is the
foremost privately operated shipyard in terms of building facilities in India.
BSL has earned its reputation by constructing a large array of specialized
sophisticated vessels for diverse offshore, coastal and the marine market
sectors. BSL also has earned International Code for the security of ships
and of Port facilities (ISPS Code) issued by the Directorate General of
Shipping. Ministry of Shipping.
BSL has been able to achieve a high level of quality and timely production
on account of the high professionalism in the management, design,
production and quality assurance that works together as team towards their
goal. – "Where quality and technical excellence are tradition and where
the emphasis is on prompt delivery."
Vision/Mission statement:- Putting customer first. Best service of quality &
technical excellence with emphasis on prompt delivery are central to
everything we do.
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9.3.1 TALENT MANAGEMENT AT BHARATI SHIPYARD
TM is considered very important at Bharati Shipyard. They have built a
―talent factory‖ A talent factory is an organization that has combined
functionality, i.e. talent processes that support both cultural and strategic
objectives, and vitality, i.e. emotional commitment to TM processes by
management, who exhibit this in daily action. This combination allows the
organisation to develop and retain key employees. This has led BSL to
develop the human resource practices and policies on a central level, but at
the same time built in flexibility to provide local variations BSL relies on
multiple sources of data, e.g. 360 degree feedback, panel reviews, and self
assessments and has established processes that are used throughout the
organisation. This means that every subsidiary has the same list containing
methods, e.g. for assessment and recruitment. They provide a base for the
measurement and decisions about the recruitment, but also the development
of talents.
BSL has created a system of talent pools to track and identify talents within
the organization. These talents are assigned to local talent pools, and within
these pools, they are selected for different assignments Over time, they are
given the opportunity to cross boundaries. In this way, BSL hopes to develop
the future leaders of the organization. People who are seen as fit for the
most senior level of management are singled out and administrated
centrally. However, BSL is experiencing some difficulties with the younger
employees, the Generation Y, who are demanding a different job than older
generations. This is why BSL is thinking about ways how to offer as much
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variation as possible to this generation. BSL is seen as a global
organization, which causes graduates and young employees to have certain
expectations. Within BSL, there is a realization that the organization needs
to offer international assignments, to avoid the risk of losing younger talents.
In order to overcome this challenge, BSL has introduced alumni schemes:
there is a realization that younger employees leave the organization earlier,
but by keeping in contact with these talents, BSL might be able to bring them
back as mid-career hires.
The second focus of a talent factory is on vitality. Vitality concerns the mind-
sets and attitudes of the people involved in TM. Talent Management should
not just be found in HR, but throughout the line and all the way up to the top
of the organization.
BSL tries to foster commitment to TM by involving the line managers directly
in the TM process. These line managers have to work together with central
and regional HR functions to fill important positions with talents found
throughout the whole organization. It is stated that BSL is well known for its
development of people. BSL has training programmes that should prepare
talents for management and executive positions. The training that is offered
is of high quality and will help people develop their skills and increase the
knowledge, to maintain a competitive advantage Engagement is the ―degree
to which company leaders show their commitment to the details of talent
management‖
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At BSL, specific policies and practices are formulated, in order to ensure line
management engaged. The growth objectives of different units are linked to
the people development.
BSL recognise the value of people as their most valuable asset and believe
that their Company‘s employees are central to their sustainable success.
Findings show that knowledge-intensive industries build talent by supporting
collaboration and knowledge-sharing among individuals and across the
organization.
Developing, motivating, rewarding and retaining talent at all levels is a
business priority and a key responsibility of Company‘s senior management.
Delegation, empowerment, learning from failures that emanate from
calculated risks is being institutionalized as well. The management has met
with considerable success in creating a work place environment that
encourages people to constantly learn and grow. As a result of this human
resources focus, the Company boasts of a highly motivated and committed
workforce
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Chapter – 10
DATA ANALYSIS & FINDINGS
Survey has been conducted in ABG Shipyard, Pipavav Shipyard and Bharati
Shipyard. sample size of respondents are 250 including both male and
female. The respondents were both senior level managers as well middle
level. Senior level managers include HR managers and middle level includes
executives. Survey has been done to know the effectiveness of the talent
development in the organization. Comparative study has been done
between ABG, Pipavav & Bharati Shipyard.
1. How long have you been working for the company?
(a) Less than a year
(b) 1-2 yrs
(c) 3-4 yrs
(d) 5-10 yrs
(e) 10yrs & above
3%
39%
20%
18%
20%
ABG Shipyard
Less than a year
1-2 yrs
3-4 yrs
5-10 yrs
10 yrs & above
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Figure no. 10.1
Table no. 10.1
Analysis:- From table above it can be observed that the majority of
respondent in all the 3 shipbuilding companies fall within the 1 to 4 yrs
working experience in the company, followed by least percent of
respondents who fall in less than a year. Respondents with 5 to 10 years
6%
33%
40%
11%10%
Pipavav Shipyard
Less than a year
1-2 yrs
3-4 yrs
5-10 yrs
10 yrs & above
10%
28%
32%
22%
8%
Bharati Shipyard
Less than a year
1-2 yrs
3-4 yrs
5-10 yrs
10 yrs & above
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Less than a year 3% 6% 10%
1-2 yrs 39% 33% 28%
3-4 yrs 20% 40% 32%
5-10 yrs 18% 11% 22%
10 yrs & above 20% 10% 8%
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working experience are tied at 18%, 11%, 22% response rate from each
companies respectively. Lastly, respondents with 10years and above
working experience are more in ABG Shipyard then Pipavav & Bharati
shipyard.
The very nature of the relationship between employers and employees has
undergone a fundamental shift: Today, workers not only expect to work for
decades on end for the same company, but they don't want to. They are
largely disillusioned with the very idea of loyalty to organizations. But, at the
same time, they don't really want to shift employers every two to three years
for their entire career.
2. Overall how much are you satisfied with your company‘s personnel
policies?
(a) Satisfied
(b) Dissatisfied
(c) Neither Satisfied or Dissatified
42%
52%
6%
ABG Shipyard
Satisfied
Dissatisfied
Neither Satisfied nor Dissatisfied
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Figure no. 10.2
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Satisfied 42% 40% 58%
Dissatisfied 52% 46% 31%
Neither Satisfied nor Dissaisfied
6% 14% 11%
Table no. 10.2
Analysis:- The respondents from ABG Shipyard (52%) & Pipavav Shipyard
(46%) are extremely dissatisfied with company‘s personnel policies whereas
58% of respondents from Bharati Shipyard are satisfied.
Personnel Policies must be specific and well-defined. Every employee must
be fully aware of the various policies affecting his/her interests. Also, the
40%
46%
14%
Pipavav Shipyard
Satisfied
Dissatisfied
Neither Satisfied nor Dissatisfied
58%31%
11%
Bharati Shipyard
Satisfied
Dissatisfied
Neither Satisfied nor Dissatisfied
157
policies must be stable, although not rigid. Stability creates a sense of
security and removes uncertainty from the minds of the employees. The
application of policies must be consistent throughout the organization. Policy
statement enables the management to take a definite course of action in
respect of employees matters. For instance, a policy on performance
appraisal.
3. Does your company use talent management practices for identifying key
performers?
YES NO
64%
36%
ABG Shipyard
Yes
No
158
Figure no. 10.3
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 64% 72% 60%
No 36% 28% 40%
Table no. 10.3
Analysis:- Talent Management practise for identifying top performers is
practised in all the 3 Shipbuilding companies. It is highly practised in Pipavav
Shipyard as compare to ABG & Bharati Shipyard.
It is rightly said, “Your Top Performers are Your Blueprint for Beating the
Competition.” Top performers will become model for identifying
72%
28%
Pipavav Shipyard
Yes
No
60%
40%
Bharati Shipyard
Yes
No
159
individuals—inside and outside of the company—who have the potential to
contribute in real and meaningful ways
4. Within your organization, what kinds of talent development activities
are carried out?
(a) Skill building classroom workshop
(b) Developmental experience term assignments
(c) Coaching
(d) Mentoring
(e) Education
(f) Others
14%
18%
20%23%
21%
4%
ABG Shipyard
Workshop
Assignment
Coaching
Mentoring
Education
Others
18%
15%
19%22%
16%10%
Pipavav Shipyard
Workshop
Assignment
Coaching
Mentoring
Education
Others
160
Figure no. 10.4
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Workshop 14% 18% 22%
Assignment 18% 15% 12%
Coaching 20% 19% 25%
Mentoring 23% 22% 18%
Education 21% 16% 15%
Others 4% 10% 8%
Table no. 10.4
Analysis:- Mixed activities carried out in all the three Shipbuilding
companies for developing talent. To nurture talent, most organizations use
companywide talent management programmes for high potentials coaching
and mentoring to help staff move into key roles and and develop talent.
Organizations are using certification for improving the training programs.
Almost six in ten organizations undertake talent management activities.
Talent management activities tend to be directed at high-potential
employees and senior managers. The main objectives of talent management
activities are to develop high-potential employees and to grow future senior
managers/leaders & also to meet the future skills requirements of the
organization.
22%
12%
25%
18%
15%8%
Bharati Shipyard
Workshop
Assignment
Coaching
Mentoring
Education
Others
161
5. At the time of Talent Management exercise, is the individual assessed
on
(a) Past Performance
(b) Fresh battery of tests
33%
67%
ABG Shipyard
Past experience
Tests
40%
60%
Pipavav Shipyard
Past experience
Tests
162
Figure no. 10.5
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Past Experience 33% 40% 32%
Tests 67% 60% 68%
Table no. 10.5
Analysis:- In this survey employees of all the 3 shipbuilding companies
said that the individual assessed on fresh battery of tests rather on past
performance.
Identifying those individuals with leadership capability and potential to
undertake complex roles. An evaluative judgement of an individual‘s
potential, focusing on five elements:
Performance history
Capability ratings
Personal aspirations
The ability to progress
Readiness to move to a new role
68%
32%
Bharati Shipyard
Past Experience
Tests
163
6. How do you indentify the talent?
(a) BY COMPETENCIES
creating profile of leadership job
creating profile of management
(b) BY RESULTS
objective measures like sales/production/etc
subjective measures like total contribution /team effort etc
accountable for complex jobs
(c) BY POTENTIAL
accumulated skills / experience
ability to learn new skills
willing to tackle bigger/complex challenges.
(d) OTHERS
42%
18%
30%
10%
ABG Shipyard
Competencies
Results
Potential
Others
164
Figure no. 10.6
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Competencies 42% 36% 30%
Results 18% 14% 17%
Potential 30% 43% 41%
Others 10% 7% 12%
Table no. 10.6
Analysis:- ABG Shipyard identify talent on the basis of competencies
whereas Pipavav & Bharati Shipyard identify talent on the basis of
employees potential.
36%
14%
43%
7%
Pipavav Shipyard
Competencies
Results
Potential
Others
30%
17%41%
12%
Bharati Shipyard
Competencies
Results
Potential
Others
165
7. In your current organization, what methods are most commonly used to
communicate with employees?
(a) In – Person
(b) Employee meetings
(c) Letters from Senior Executives
(d) E – Mail.
12%
33%
3%
52%
ABG Shipyard
In – Person
Employee meetings
Letters from Senior Executives
E – Mail
8%
23%
2%
67%
Pipavav Shipyard
In – Person
Employee meetings
Letters from Senior Executives
E – Mail
166
Figure no. 10.7
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
In – Person 12% 8% 11%
Employee meetings 33% 23% 38%
Letters from Senior Executives 3% 2% 6%
E – Mail 52% 67% 45%
Table no. 10.7
Analysis:- According to the survey all the 3 shipbuilding companies
generally communicate with their employees through e-mails and in
general meeting. One can't avoid written communication in the workplace;
it's everywhere. Emails, memos, reports, and other written documents are all
part of everyday business life. Email is a lifesaver for many people,
especially in the business world. If you rely on emails and memos to conduct
your business, it's very important to portray a professional image.
11%
38%
6%
45%
Bharati Shipyard
In – Person
Employee meetings
Letters from Senior Executives
E – Mail
167
8. Talent management is the process of ensuring that the organization
attracts, retains, motivates and develops the talented people it needs. Do
you have such a process in your company? If yes, Please mention what
is it?
YES NO
70%
30%
ABG Shipyard
Yes No
64%
36%
Pipavav Shipyard
Yes No
168
Figure no. 10.8
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 70% 64% 76%
No 30% 36% 24%
Table no. 10.8
Analysis:- In all the 3 shipbuilding companies talent management process
is conducted. It is becoming harder and more competitive to find talented
people with the right attitude and skills. The solution is talent management:
attracting, developing and retaining the right people. Nurturing, developing
and retaining the most talented people requires constant attention and action
in several ways
Whatever your business, having the right people in the right roles is
essential for success. Talent management ensure that there is a steady
supply of the right people with the right skills and approach.
76%
24%
Bharati Shipyard
Yes No
169
9. Designing jobs and developing roles which give people opportunities to
apply and grow their skills and provide them with autonomy, interest and
challenge. Does your HR undertake such assignments?
YES NO
33%
67%
ABG Shipyard
Yes No
22%
78%
Pipavav Shipyard
Yes No
170
Figure no. 10.9
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 33% 22% 14%
No 67% 78% 86%
Table no. 10.9
Analysis:- The response from all the 3 shipyard companies said that no
such assignment is conducted by HR professionals.
Roles & Responsibilities of HR professionals
Facilitates the creation of a Personal Development Plan for each talent
pool member.
Provides career counselling and helps to create a bespoke career path
for each talent pool member. This career path includes clearly identified
milestones explaining what is expected of the talent pool member at 12,
24 and 36 months.
Understands each individual‘s career aspirations & support line
managers in managing their talent pool employees.
Ensures senior executives‘ participation at succession planning
meetings and in the talent management process.
14%
86%
Bharati Shipyard
Yes No
171
Advises about suitable leadership development programmes and
development activities.
10. Providing talented staff with opportunities for career development and
growth. Is there such a program in your organization?
YES NO
60%
40%
ABG Shipyard
Yes No
54%
46%
Pipavav Shipyard
Yes No
172
Figure no. 10.10
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 60% 54% 68%
No 40% 46% 32%
Table no. 10.10
Analysis:- Career development program is carried in all the 3 Shipyard
companies. More importance is given in Bharati Shipyard as compare to
ABG & Pipavav Shipyard.
Implement key career development measures to drive performance
Ensure that investment in learning and development is meaningful. Provide
employees with incentives to develop by showing them how they can
progress Working together, organizations and their employees can meet
common goals through career development. Career development ensures
work remains challenging and meaningful. It aligns the skills and capabilities
of the employee with the business strategy of the organization, satisfying the
need of employees to make a difference and contribute to the organization‘s
success. It drives engagement, productivity and performance.
68%
32%
Bharati Shipyard
Yes No
173
11. Excluding financial compensation which of the following do you believe
are your organization‘s most effective means of rewarding motivating &
retaining talent?
(a) External Training Sessions
(b) Innovations
(c) Recreational Activities
38%
26%
36%
ABG Shipyard
External Training Sessions
Innovations
Recreational Activities
45%
15%
40%
Pipavav Shipyard
External Training Sessions
Innovations
Recreational Activities
174
Figure no. 10.11
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
External Training Sessions 38% 45% 33%
Innovations 26% 15% 20%
Recreational Activities 36% 40% 47%
Table no.10.11
Analysis:- ABG & Pipavav Shipyard focus on external training sessions to
retain employees whereas Bharati Shipyard focus on recreational activities
such as games, fully equipped gyms, cultural programs. External training
can bring fresh ideas. To foster better relations and esprit de corps among
the employees, Recreation Committee organizes a wide range of subsidized
activities for the staff. They include sports, to cultivate healthy lifestyle; art
and cultural events; and family-oriented activities for bonding and closeness.
12. Developing the leadership qualities of line managers; recognizing
those with talent by rewarding excellence, enterprise and achievement. Do
you have these as part of your leadership development programs?
YES NO
33%
20%
47%
Bharati Shipyard
External Training Sessions
Innovations
Recreational Activities
175
Figure no. 10.12
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 62% 73% 58%
No 38% 27% 42%
Table no.10.12
62%
38%
ABG Shipyard
Yes No
73%
27%
Pipavav Shipyard
Yes No
58%
42%
Bharati Shipyard
Yes No
176
Analysis:- Organization understand that leadership can also be developed
by strengthening the connection between, and alignment of, the efforts of
individual leaders and the systems through which they influence
organizational operations. Pipavav Shipyard give more importance to such
leadership programs. Leadership development is an activity that enhances
the quality of leadership within an individual or organization
13. Are Talent Management initiatives a top priority in your organization
YES NO
66%
34%
ABG Shipyard
Yes No
70%
30%
Pipavav Shipyard
Yes No
177
Figure no. 10.13
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 66% 70% 58%
No 34% 30% 42%
Table no. 10.13
Analysis:- Top priority is given in Pipavav Shipyard ltd.
HR management revealed an explosive growth in talent management
initiatives in their organizations. This survey validates the fact that
organizations worldwide are focusing more and applying more effort on
talent-management initiatives today and will continue to do so during the
next few years as external factors, such as the looming talent shortage and
global expansion, become more and more prevalent.
58%
42%
Bharati Shipyard
Yes No
178
14. What % of your workforce has been identified as ―Talented‖ ______%
Figure no. 10.14
Analysis:- ABG Shipyard have 70% of talented workforce. Highest levels of
job satisfaction and organizational commitments benefit to attract and retain
the best and brightest workforce.
70%
ABG Shipyard
Talented
62%
Pipavav Shipyard
Talented
55%
Bharati Shipyard
Talented
179
15. Does your organization have a staff member whose position is
exclusively responsible for overseeing talent management initiatives?
Yes at managerial/ Executive level
No
38%
62%
ABG Shipyard
Yes No
43%
57%
Pipavav Shipyard
Yes No
180
Figure no. 10.15
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 38% 43% 28%
No 62% 57% 72%
Table no. 10.15
Analysis:- All the 3 Shipbuilding companies are not sure that a staff
member is appointed who wil is exclusively responsible for overseeing talent
management initiatives.
The role of Talent pool member
Provides ongoing coaching.
Sets stretching objectives for performance and development.
Provides time and capacity for an individual to engage in development
activities.
Receives regular feedback.
Provides support to others within the organization, ‗cascading‘
experience and expertise.
28%
72%
Bharati Shipyard
Yes No
181
16. Overall how satisfied are you with this company as a place to work as
compared to other places you have worked?
(a) Satisfied
(b) Dissatisfied
(c) Neither Satisfied nor Dissatified
53%
25%
22%
ABG Shipyard
Satisfied
Dissatisfied
Neither Satisfied nor Dissatisfied
45%
40%
15%
Pipavav Shipyard
Satisfied
Dissatisfied
Neither Satisfied nor Dissatisfied
182
Figure no. 10.16
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Satisfied 53% 45% 32%
Dissatisfied 25% 40% 48%
Neither Satisfied nor Dissatified
22% 15% 20%
Table no. 10.16
Analysis:- ABG employees are the most satisfied then Pipavav & Bharati
Shipyard. Ensuring that employees are happy in the workplace. Happy
workplace is a great place for productivity.
The three ―E‖s
Engaged: The employee is attached to the company and willing to put
out extra effort.
Enabled: The company environment supports the employee‘s
productivity and performance.
Energized: The employee feels a sense of well-being and drive.
32%
48%
20%
Bharati Shipyard
Satisfied
Dissatisfied
Neither Satisfied nor Dissatisfied
183
17. What are your talent retention initiatives?
(a) Acquiring new talent
(b) Leveraging existing talent
(c) Retaining the current potential
Figure no. 10.17
33%
40%
27%
ABG Shipyard
Acquiring new talent
Leveraging existing talent
Retaining the current potential
32%
49%
19%
Pipavav Shipyard
Acquiring new talent
Leveraging existing talent
Retaining the current potential
25%
51%
24%
Bharati Shipyard
Acquiring new talent
Leveraging existing talent
Retaining the current potential
184
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Acquiring new talent 33% 32% 25%
Leveraging existing talent 40% 49% 51%
Retaining the current potential
27% 19% 24%
Table no. 10.17
Analysis:- The talent retention initiatives of all the 3 companies is leavering
existing talent. The benefits of talent retention initiatives are clear, improving
productivity and allowing the talented people to realise their potential,
removing the barriers to performance and encouraging excellence.
18. What category of employees should organizations try to retain?
(a) Only Experienced Employees
(b) Only Employees who exhibit managerial skills
(c) All employees
20%
35%
45%
ABG Shipyard
Experienced
Skilled
All Employees
185
Figure no. 10.18
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Experienced 20% 18% 13%
Skilled 35% 40% 27%
All Employees 45% 42% 60%
Table no. 10.18
Analysis:- Employees are the base of any company whether they are on
senior or junior level. So here in this, as in Bharati Shipyard many
employees view were yes the company retain all the employees. While in
ABG & Pipavav Shipyard the views were mixed in case of experienced or
all.
18%
40%
42%
Pipavav Shipyard
Experienced
Skilled
All Employees
13%
27%60%
Bharati Shipyard
Experienced
Skilled
All Employees
186
As companies shed flab in terms of their human resources.
You can have Albert Einstein in your organization, but he will not give
results if he does not have his heart on the job. Employees do not like
to be shackled. They want to learn and be empowered.
- Ronesh Puri
Managing Director, Executive Access
19. If a person wants to leave the job how do company retain that candidate
(a) Salary appraisal
(b) Provide a better job role
(c) Understand personal issues and resolve it
(d) Provide proper motivation
35%
30%
15%
20%
ABG Shipyard
Salary Appraisal
Better job role
Resolving personal issues
Proper motivation
187
Figure no. 10.19
Parameters ABG Shipyard
Pipavav Shipyard
Bharati Shipyard
Salary Appraisal 35% 28% 24%
Better job role 30% 25% 30%
Resolving personal issues 15% 10% 12%
Proper movtivation 30% 37% 34%
Table no. 10.19
Analysis:- Retaining the candidate in the company for a longer time is the
biggest challenge and all 3 shipbuilding companies are doing well. ABG
shipyard focus on giving their employees better job role & resolving the
personal issues. On the other hand Pipapav & Bharati Shipyard focus on
proper motivation.
28%
25%10%
37%
Pipavav Shipyard
Salary Appraisal
Better job role
Resolving personal issues
Proper motivation
24%
30%12%
34%
Bharati Shipyard
Salary Appraisal
Better job role
Resolving personal issues
Proper motivation
188
20. HR must act as facilitators
*HR‘s role is to facilitate the management of talent and to act as coaches
and consultants to the line managers. For it to be truly successful talent
management cannot be seen as simply an HR initiative.
DO YOU AGREE WITH THIS STATEMENT?
YES NO
74%
26%
ABG Shipyard
Yes No
60%
40%
Pipavav Shipyard
Yes No
189
Figure no. 10.20
Parameters ABG Shipyard Pipavav Shipyard Bharati Shipyard
Yes 74% 60% 68%
No 26% 40% 32%
Table no. 10.20
Analysis:- 74% in ABG Shipyard said HR acts as a facilitator.
HR involve line managers and senior executives in identifying and managing
the most talented people. Is clear about the skills and behaviours needed for
the organization‘s long-term development Integrate talent management with
succession planning, and ensure that both directly support the business
strategy. Maintain top level support for the talent pool and succession plans.
Today HR professionals believe Invest in talent management – it is vital
for the future
68%
32%
Bharati Shipyard
Yes No
190
FINDINGS
According to the data obtained from the survey, the process of talent
management to ensure that the organization attract, retain, motivate and
develop the talented people existing in the organization.
Talent management was thought to be the more cost effective to identify,
develop and retain management talent than to replace lost talent with
recruitment from the external labor market. Various studies estimate the cost
of replacing an executive can run into several times the salary of that
executive. It was thought that over the last several years, there has been a
growing body of research and evidence that clearly shows the incremental
economic value that talented, high performing people deliver.
It was thought that there exists a major difference in average share
performance between organizations with a culture of talent management,
and those without. Line managers are expected to coach and support their
talented direct reports towards development and career goals, a process
that should cascade from the CEO and senior executives. HR‘s role is to
facilitate the management of talent and to act as coaches and consultants to
the line managers. For it to be truly successful, talent management cannot
be seen as simply an HR initiative.
191
The talent management process in the organization was found to be
WORKFORCE PLANNING
A systematic approach was followed within the organization : Identifying the
requirements, Identifying the high potential candidates, Put them through
intentional learning experiences, Select the best, Evaluate the success.
RECRUITMENT
Talent was identified by competencies and potential and sometimes by
results. The talent development was carried out by leveraging of the existing
talent and sometimes by acquiring new talents.
ONBOARDING
Onboarding activities were carried out smoothly. Visible support from top
management, flexible and linked to company business plan and emphasize
on accountability and follow up were found to be the important factors that
help to develop and retain talents.
TRAINING AND PERFROMANCE MANAGEMENT
Various talent development activities that were carried out were skill
building, mentoring and short term assignments as focused training
programs, career transition, technical skills and leadership development and
sometimes job experience was found to be most important for talent
development. The activities such as developing the leadership qualities of
line managers; recognizing those with talent by rewarding excellence,
enterprise and achievement existed.
192
SUCCESSION PLANNING
Succession planning existed to ensuring that the organization has suitable
people to fill vacancies arising from promotion, retirement or death.
COMPENSATION AND BENEFITS
Reward system that recognizes and values contribution, and provides
competitive pay and benefits. A reasonable degree of security for employees
was available.
193
Chapter – 13
CONCLUSION & RECOMMENDATION
CONCLUSION
As organizations continue to pursue high performance and improved results
through TM practices, they are taking a holistic approach to talent
management—from attracting and selecting wisely, to retaining and
developing leaders, to placing employees in positions of greatest impact.
The mandate is clear: for organizations to succeed in today‘s rapidly
changing and increasingly competitive marketplace, intense focus must be
applied to aligning human capital with corporate strategy and objectives. It
starts with recruiting and retaining talented people and continues by
sustaining the knowledge and competencies across the entire workforce.
With rapidly changing skill sets and job requirements, this becomes an
increasingly difficult challenge for organizations. Meeting this organizational
supply and demand requires the right ―Talent DNA‖ and supporting
technology solutions. By implementing an effective talent management
strategy, including integrated data, processes, and analytics, organizations
can help ensure that the right people are in the right place at the right time,
as well as organizational readiness for the future
Business strategy is something that should not be kept in big files in the
manager‘s office, but something that the employees leave, breathe and eat
daily. Therefore business strategy should be clearly communicated, should
be understood by all and should be visible. When the lowest ranked
employee in the business is able to understand and tell others about the
194
company strategy and what his/her role is on that strategy, then this could
be used as the measure that the company has done well in selling its
business strategy to its employees.
Researcher would like to stress once more the importance of thinking about
multiple talent pipelines. If talents are not placed in the right positions, the
organisation will lose value and competitive advantage, especially in
nowadays‘ (knowledge) society. The idea about work has changed and
workforce composition is also changing. In order to keep up-to-date with
these changes, but more importantly to attract and retain valuable
employees, organizations need to think about their TM processes and
whether or not these processes offer what all valuable talents in an
organization want and expect from an employer. Researcher believe it is
crucial for organization to think about multiple pipelines when working with
TM. This is the most important message researcher want to convey.
Therefore, researcher wants to stress that multiple talent pipelines must be
seen as an asset for an organization, which is important if organizations
want to achieve a competitive advantage.
Finally, to conclude the future of organizations depends on how the whole
organization and not just HR anticipates and reacts to changes in this era of
talent shortages. They have a long way to go to lead organizations
implement for reaching changes and bringing about transformation among
the members of the organization. TM is an continuous process.
195
RECOMMENDATIONS
Below, ten recommendations concerning the issue of TM and the multiple
pipeline approach will be given. These recommendations are based on the
literature review, the review of best practice organisations, and the conducted
interviews. However, we would like to underline that these recommendations
should not be seen as recommendations to actually implement TM, so they are
not to be understood as a recipe to construct multiple pipelines. These
recommendations are to be understood as starting points to reflect upon, in
order to provide organizations with some ideas when they think about
implementing TM. In that sense, the recommendations below represent rather
a source of inspiration than solutions, for organizations to think about. Of
course, every organization has to decide which of the points are relevant for its
particular situation.
1. TALENT MANAGEMENT IS NOT NECESSARILY ABOUT UPWARDS
MOBILITY.
This point has been mentioned above several times, but researcher believe
it is important to refer to it as the first recommendation. In our opinion,
organizations need to realise that the concept of a career has changed. A
career is no longer seen only as moving upwards through the levels of the
organization, towards a (senior) leadership position. Nowadays, making a
career entails much more: next to moving upwards, it can mean moving
through the organization in lateral paths, but also moving between different
organizations. As said before, this is called the boundary less career
(Arthur & Rousseau, 1996). Researcher believe it is critical for
organizations to take this changing idea of a career into account and we
196
think the TM of an organization needs to be in line with this idea. In today‘s
society, it is important that organizations offer a career to all their talents,
not only the talents in the leadership pipeline. Employees are more
demanding when it comes to their career and for (almost) all employees,
not only leaders, in the knowledge society, having a career has become
very important. It seems that, if an organization does not offer career paths
to everyone, employees might consider leaving and going to an
organization that will offer them a career that is more in line with their
expectations. Therefore, researcher stress that it is important for
organizations to realise that the roles and the demands are changing and
that TM should not only be focused on upwards mobility, but also embrace
lateral mobility, in order to offer attractive perspectives to multiple groups of
talents. This also sends a message for potential employees of an
organization: they see that in order to be developed they do not necessarily
have to grow in ranks, but can have a career without having to lead other
employees.
2. LEADERS ARE NOT THE ONLY CRUCIAL GROUP ANYMORE.
As has been mentioned above, in the last few decades, the roles of leaders
have changed significantly. It can be argued that leaders are not as crucial
as before, since employees are becoming knowledge workers and
professionals more and more, and therefore, they are less interchangeable
and more valuable for organizations. This means that it is not only leaders
making a difference for the organization. Of course, leaders are still
important, but they are not the only crucial factor in the organization
197
anymore. Researcher believe it is necessary for organizations to take this
into account, since it shows that TM should be focused on more than one
group, in order to attract and retain all crucial talents, instead of just
leadership-talents. As leaders are not the only crucial group anymore,
organizations must find ways to offer attractive career paths to talents other
than leaders.
Offering an attractive career path for different groups of talents will also
help to prevent putting people into the leadership path that actually do not
want to be leaders or do not have the right competencies. As researcher
have argued several times above, being a talent does not necessarily
mean that this talent also has the talent to lead other employees. Different
groups of talents can be chosen by an organization, depending on what is
crucial for its particular circumstances. However, it has become clear to us
that these talents require a different form of management than the
traditional sense of management. To conclude, as leaders are not the only
crucial group anymore, organizations should establish talent pipelines also
for talents other than leaders.
3. ORGANISATIONS MUST THINK ABOUT OWN DEFINITIONS.
We believe that, when organizations want to work with TM, they need to
have a clear idea about what constitutes a talent and what kind of
competencies are important for the talents in their organization. This
relates to the core business of the organization. Researcher thinks that
every organization is unique and that different organizations have different
core businesses. The definition of talent needs to be aligned with the
198
specific core business of an organization. From the interviews conducted,
researcher understood that in practice, organizations see both the
definition and the TM processes as dependant on the character of the
organization.
There are some very specific approaches within organization and
organizations differ from each other. So, it is likely to assume that different
TM processes will fit different organizations. This idea fits the contingency
perspective of HRM. Delery and Doty (1996) state that there are several
contingency factors that will influence the relationship between different
variables. In this case, the variables are the organization and the TM of
that organization. Examples of contingency factors are organizational size,
age, technology, and location. These contingency factors can cause
certain TM processes to work well in one organization, while they do not
fully work in another. This perspective is the so-called „best fit‟ approach
(Beer et al., 1984), which emphasizes that managers are wise to adjust
HRM to the specific context; organizations may under-perform if they do
not adjust (Boxall & Purcell, 2008). Therefore, it can be assumed that TM
also has to be adjusted to fit a specific organizational context, in order to
reach its full potential. Researcher believe that when organizations do not
take this into account, this can be a strong barrier for TM. So, we argue
there is no ‗one-size-fits-all‘ approach to TM and that it is very important for
organizations to think about their own definition and approach to TM, to
make it fit the organization and its employees. Furthermore, every
organization seems to have different success factors. Nowadays,
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employees can be seen as a success factor (Boxall & Purcell, 2008). Yet,
every organization has to deal with different kinds of employees and
therefore, researcher believe every organization should have their own
definition of talent.
Furthermore, looking at the core business of the organization can help to
figure out what kind of talent it needs. Therefore, it can help the
organization to define the groups of talent that could be formulated, i.e.
what groups of employees are necessary for the organization to perform
their core business, now and in the future. This will lead the organization to
think about whether one pipeline, and thus focusing the TM processes on
one group, is enough. Nowadays, it might be that organizations need
multiple groups of talent in order to stay viable. Looking at the core
business and at the future direction of the organization can help the
organization anticipate what kind of talent will be needed.
Moreover, researcher believe it is important that the TM processes of an
organization are aligned with the other HR practices of that particular
organization. As every organization has a different set of HR practices, the
individual organization must identify and decide which kind of TM
processes would fit with the HR practices that are already established. To
illustrate this idea, we would like to present the example of team rewards. If
an organization rewards its employees based on team effort and then a TM
process implemented, which includes singling out talents, as a
consequence, team performance may decrease, since not only will
employees be rewarded for individual effort, but also because labelling
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certain employees as talents means that these talents will be moved
through the organization. This means that the talent will leave the team,
which can decrease team performance, since one valuable member is
missing and therefore team dynamics probably have changed.
A TM process in that organization must take into consideration that taking
out the talent must not be at the expense of the other team members. This
example highlights that not every TM approach fits into every organization,
but that an organization has to look at, what they already have in place.
4. DO NOT PRIORITISE YOUR PIPELINES
Reseacher believe that it is very important that when an organisation
implements multiple pipelines, these pipelines are seen and treated as
equally important. Prioritising one over the other will give the idea that
there are still certain careers that are valued more than others and that
there is a possible distinction in how important the different talents are for
the organization. This might cause dissatisfaction with certain groups of
talents. Furthermore, this might cause that talents will try to get into the
pipeline that they believe is perceived as most important. Because of this,
talents end up in a pipeline that is not suitable for them or where they
cannot reach their full potential. It might also lead talents in the lower
valued pipeline to leave the organization and to go for the competition, as
they feel they might be more valued in that other organization.
The above relates to possible jealousy and envy that could come to exist
when certain groups of talents are prioritised at the expense of others. This
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can cause dissatisfaction, which could lead to talents leaving for other
organizations where they feel they are valued more than in their current
organization. Also, this jealousy might make talents try to get in the pipeline
that is the most valued, which, as has been mentioned before, can cause
talents to be in a pipeline that is not suitable for them. So, researcher
believe that prioritization in the beginning of the implementation process is
important, since certain pipelines have to be identified based on the core
business of the organization. The organization has to choose which groups
of talents will be crucial to the organization in order to stay viable, now and
in the future. However, when these groups have been chosen and the
different pipelines are established, no prioritization should be made.
5. CREATE A SUPPORTING CULTURE WITHIN THE ORGANISATION
Researcher believe that the culture of the organization should support TM,
in order to make TM work to its full potential. This means that the culture of
an organization should allow for TM to be fully integrated in the
organizational culture. For TM to work, naturally it is necessary that certain
people are singled out as talents. The culture of the organization needs to
support this. For example, if the culture is solely focused on teamwork,
singling out individuals might become a problem, as has been illustrated
above. Labelling talents in a team-oriented culture can create „lonely
stars‟ who are moved through the organization and not part of a team
anymore. This could cause a decrease in satisfaction, commitment, and
engagement. Therefore, researcher believe it is essential that the culture of
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the organization is supportive of the pipelines the organization chooses
and the accompanying practices it wants to implement.
Moreover, TM should be seen as an organizational aim, not as an
individual aim. While growth and development can be regarded by the
talents as a personal goal, it is important that the whole organisation sees
and encourages the importance of TM. We researcher believe it is
essential that everyone knows that TM can benefit the organization, since it
can enhance performance and give employees the chance to develop
themselves and grow within the organization. When people are labelled as
talents, their career paths most likely change. This will usually take them
away from their current position and colleagues. This will also influence the
dynamics of the team the talent used to be a member of. When the culture
of an organization is not supporting, the fact that talents are moving around
the organization can cause dissatisfaction or a decrease in performance.
Furthermore, from the information researcher gathered in the interviews, it
showed that many organizations that had TM in place, also offered
additional training and education for the employees that had not been
identified as talents. TM can send out a message that development is
important and that the different employees, also the non-talents, are
valued. This can create a positive atmosphere which might enhance overall
organisational performance. Researcher believe that having multiple
pipelines contributes to this enhancement even more, as it shows that it is
not only potential leaders that are valued, but different groups of talents. An
organisational culture that embraces the idea of multiple talent pipelines
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might enhance motivation and commitment throughout the organisation,
since talents can be found amongst different groups of employees.
Moreover, researcher think it is important that an organization appoints
people, who have the responsibility over TM, i.e. it should be a separate
function. These people should work closely together with the rest of the
organization, to create a form of alignment, yet TM should not be regarded
as something an HR-manager can do next to all of his or her other tasks.
Different stakeholders throughout the organization must put effort in the TM
processes and in order to make this happen, a supporting culture is a
prerequisite. This culture will not only support the people responsible for
TM in doing their job, it will also ensure that this separate function will be
able to exist. Furthermore, we believe that integrating TM into the culture of
the organization will help to make TM fit the organization. For example,
different national cultures may have different ideas about TM. As has been
mentioned before, singling out employees as talents may not be
appropriate in collectivistic cultures. It can be assumed that the
organizational culture will be influenced by the national culture. When TM
is integrated in the culture of the organization, researcher believe that the
differences in national culture will be taken into account, as these
differences are visible in the organizational culture.
To conclude, we argue that it is important to integrate TM in the
organizational culture. It might be a ―constant battle for priority‖, to make
everyone within the organization see the importance of TM, but in order for
it to work effectively, TM should be integrated.
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6. ENSURE LINE MANAGEMENT INVOLVEMENT
It is important to strike that TM is not only HR managers‘ task and
responsibility, as it has been mentioned before that TM should be a
separate function. However, also line managers should have a special role
in TM, as they are particularly important to have a high consistency of HR,
and in this case TM, throughout the organization (Boxall & Purcell, 2008).
This means that if TM shall have an influence within an organization, line
managers have to integrate it in the whole organization and integrate it in
their daily work. They deal with their employees every day on a close basis
and thus also with talents in the group of employees they are responsible
for.
Moreover, researcher believe line managers can be very important in
identifying the different groups of talents; they deal with the workforce
everyday and could identify, together with the top management of the
organization, the different pipelines that will be crucial in the future. So, line
managers can be seen as crucial filters, both positive and negative,
between TM processes on paper and the actual implementation and
realization. This means that they can largely support or hinder the
implementation and execution of TM. Training for line managers to better
understand and communicate with their employees, and to grasp their
interests and passions is significant (Boxall & Purcell, 2008). If line
management, for whatever reason, is not participating in TM, there is a
high chance that the complete process might fail. Also, during the
interviews, line management involvement revealed to be crucial. This might
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include the provision of training for line managers in order to prepare them
to deal with (new) TM processes in their organizations. Moreover, due to
their closeness to the employees, line managers know the (potential)
problems and barriers that the implementation of new policies and
practices might embrace. Furthermore, line management involvement is
critical in TM as it is the line managers who have to identify and recognize
the talents on the work-floor.
After having been identified, talents can be moved through the
organization, and do not necessarily remain in the area of responsibility of
the line manager who initially identified that talent. In order for this to
succeed, it is crucial to implement a culture that shows line managers that
they are acting for the success of the organization and have a
responsibility to let the talents work somewhere else in the organization.
Taking a talent out of a team might decrease the performance of the entire
team, which in the end might mean that the employees not labelled as
talents, as well as the line manager, might experience a negative time after
the talent has been moved. It is important that line managers know how to
deal with this, in order to make sure that TM is seen as something positive.
This shows that line management involvement also relates to the
recommendation made above, namely, that TM must be part of an
organizational culture, which in turn will influence line management
behaviour.
Furthermore, organizations should reflect upon the degree to which they
integrate involvement in TM in the incentive schemes, performance
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appraisals, and goals of line management. This means that line managers
not only need to realize the importance of TM, it should be part of their
function. It should become a goal of line managers to identify and talent
and to move these talents through the organization. It is important that line
management sees TM as an organizational aim and is in some way
rewarded for the tasks related to TM. If they feel that they will only lose
their best people when they identify them, TM will not work to its full extent.
All this shows that line managers are critical stakeholders when it comes to
successful TM processes.
7. SHOW THE EXTERNAL ENVIRONMENT WHAT YOU HAVE TO OFFER.
The external environment has become an important stakeholder for
organizations. Image, reputation, and employer branding have become
crucial for the success of an organization. So, these elements should be
taken into account when it comes to the implementation of TM and multiple
pipelines. The literature review and the interviews have made realize that
many organizations do not use employer branding to the fullest potential
with regard to TM. Organizations could be more active and visible in
showing what they have to offer to their (potential) employees. We believe
that many organizations have attractive career opportunities and TM
processes, but do not make full use of them in order to recruit talent, by
advertising these opportunities and processes. Moreover, organizations
should more actively show what makes them different from the
competition, in order to recruit talented employees. Multiple talent pipelines
can contribute to employer branding in that organizations show (potential)
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candidates that they do not necessarily have to become leaders if they
want to make a career. Thus, organizations should send out a clearer
message to both their current and their (potential) future employees about
who they are and what they have to offer.
8. DO NOT FORGET THE NON-TALENTS
All the current discussions about talents and talent management in both
literature and practice might convey the picture that talents are the only
important employees of an organization. This apparent hype led us to the
recommendation that organizations have to make sure that they do not
forget the non-talents. Of course, as researcher have argued several times
above, talents are the employees that make a difference for an
organization. However, organizations must keep in mind that there need to
be ‗normal‘ employees surrounding and supporting the talents.
Furthermore, without a complete workforce that is functioning well, an
organization cannot exist. It is not only the talents that keep an
organization viable, it is the entire workforce. Organizations must be aware
that not 100 percent of their employees can be talents. As stated earlier,
not every employee can be a talent, but every employee can be an asset
for an organization. Most organizations researched in literature and
interviews, have a certain percentage of employees that can be considered
talent. Yet, this percentage is often a small number, and if an organization
only focuses on the talents, the majority of the workforce will be ‗forgotten‘
or ‗ignored‘.
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Nonetheless, we want to strike that organizations still have to manage the
‗non-talents‘ in order to make full use also of these human resources, i.e.
these assets. Although now a days, a lot of attention is focused on TM,
organizations need to find appropriate ways to recruit, develop, and retain
normal employees. If an organization identifies one percent of their
employees as talents, it is crucial to think about the 99 percent of
employees, who are not identified as talent. If an organization forget about
its ‗normal‘ employees, it cannot stay viable, no matter how good its TM
processes are. Therefore, researcher believe organizations should not only
have elaborate TM processes, but should also offer some sort of training
and education to regular employees. These employees also need to be
kept motivated and they also want to feel valued by the organization. Even
though these employees may not be classified as talents or high potentials,
they can be high performers. It is important for organizations to make a
distinction between the two groups, but the organization should not forget
to also reward the high performers, in order to keep the whole organization
motivated and performing well. Furthermore, researcher believe this might
help to avoid envy or jealousy among employees.
Whereas the organizational culture also plays a role in this, i.e. the culture
should enforce the idea that TM is an organizational aim, rewarding
employees who perform well will make that these employees also feel
recognised, despite the fact that they have not been labelled as talents.
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So, while researcher argue that TM is very important, researcher would like
to stress that focusing solely on TM will not benefit the organisation. The
biggest group of employees, i.e. the non-talents,
should not be forgotten.
9. KEEP IT AS SIMPLE AS POSSIBLE.
For TM processes to function and to be applied in the organization, it is
necessary that they are easy to apply and as transparent as possible. At
first glance, this might appear to be quite obvious; however, researcher
believe that simplicity might help the TM process to have an impact
throughout the organization and also believe this is especially important in
the first stages of the process, when the processes or the different
pipelines have to be implemented. The more complex the process is, the
weaker is the chance of actual realisation. Of course, with a growing
complexity of an organizational structure it is increasingly difficult to have
simple TM processes. However, organizations should keep in mind that the
more transparent and easy to apply, the easier is its implementation.
Furthermore, by keeping the TM process simple and transparent, a better
alignment between the new processes and the processes already in place
in the organization may occur. Researcher believe, and this belief has
been strengthened by the interviews held, that many organizations have a
lot of TM processes in place, yet do not label it TM. Researcher see it a
important that these processes are recognised as TM, in order for these
processes to function to their full potential and to build a synergy.
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Therefore, researcher argue that TM can be seen as a puzzle. Many
organizations have already implemented processes that are part of TM, yet
there seems to be no alignment and no full recognition, i.e. the different
pieces do not yet fit together. Researcher believe that for organizations, it
can be helpful to use this puzzle metaphor, to find out which pieces are
already part of the organization, which pieces are still missing, and how
these pieces can fit together.
10. REALISE THAT A ROI IS DIFFICULT TO CALCULATE
Of course, researcher realise that business is about making money. Thus,
when it comes to decision making with regard to TM, management is often
immediately interested in the return of invest (ROI). Organizations want to
determine those investments in talent that will have the strongest impact on
the execution of their strategy (Anonymous, 2004). Moreover, management
is often focused, and has to be focused, on short-term success which can
be shown in numbers. Nonetheless, when it comes to the measurement of
ROI in HR in general, much has been discussed in literature, however, in
practice, most approaches fail (Creelman, 2004).
If an organization has a culture of which TM is a constituent, this will
influence the overall performance of that organization and not only the
performance of the employees identified as talents will grow. This means
that in such a culture, not only talents, but also non-talents are performing
better, which, in the end, might lead to an increased organizational
performance. As a consequence it is not possible for organizations to
exactly identify the ROI made in their TM, or even in the individual talent.
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When an organization implements TM, the organization as a whole is
shifting, thus, it is not possible to track back the ROI of one particular
talent. However, HR should be involved in the measuring of TM. Yet, these
measurements are not about money. HR can measure the number of
talents that flow through the organization, or the performance of talents
when it comes to certain competencies these talents are developing.
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ANNEXURE – 1
BIBLIOGRAPHY
Arthur, M.B., & Rousseau, D.M. (1996). The boundary less career: a new
employment principle for a new organizational era. New York Oxford
University Press.
Ashton, C., & Morton, L. (2005). Managing talent for competitive advantage.
CRF Publishing, 4(5), 28-31.
Berger, L. A. & Berger, D. R. (Eds.). (2004). The Talent Management
Handbook: Creating Organizational Excellence by Identifying, Developing
and Promoting Your Best People. New York: McGraw-Hill.
Branham, F.L. (2000). Keeping the people who keep you in business: 24
ways to hang on to your most valuable talent. New York: AMACOM.
Busi, M. & Bititci, U.S., (2006). Collaborative performance management:
present gaps and future research, International Journal of Productivity and
Performance Management, 55(1/2), 7-26.
Cunningham, I. (2007). Talent Management: making it real. Development
and Learning in Organizations. 21(2), 4-6.
Creelman, D. (2004). Return on investment in talent management: measures
you can put to work right now. Human Capital Institute.
213
Duttagupta, R. (2005). Identifying and managing your assets: talent
management. IP Value 2005, Building and enforcing intellectual property
value, p.1-6.
Frank, F.D., & Taylor, C.R. (2004). Talent Management: Trends that Will
Shape the Future. HR. Human Resource Planning. 27(1) p. 33-42.
Grigoryev, P. (2006) ―Hiring by Competency Models‖, the Journal for Quality
& Participation, Winter.
Heinen, J.S., & O'Neill, C. (2004). Managing talent to maximize
performance. Employment Relations Today. 31(2). 67-82.
HRM Review, Talent management (February 2007) The ICFAI University
Press.
HRM Review, Talent management (October 2008) The ICFAI University
Press.
Lawler, E.E. (2005). From human resource management to organizational
effectiveness. Human Resource Management. 44(2). 165-170.
Laff, M. (2006). Talent Management: From Hire to Retire. T+D Alexandria.
60(11). 42-50
Michaels, E., Handfield-Jones, H., & Axelrod, B. (2001). The War for Talent.
Boston: Harvard Business School Publishing.
214
Nonaka, I., & Toyama, R. (2005). The theory of the knowledge-creating firm:
subjectivity, objectivity and synthesis. Industrial and Corporate Change.
14(3). 419-436.
Schweyer, A. (2004). Talent Management Systems: best practices in
technology solutions for recruitment, retention and workforce planning.
Canada: Tri-Graphic Printing.
WEBLIOGRAPHY
www.talentmgt.com
www.google.com
www.yahoosearch.com
www.wikipedia.com
www.cornerstoneondemand.com/integrated-talent-management
www.talentmgt.com/learning_development/.../index.php
www.shipping.nic.in
www.dgshipping.com
www.abgindia.com
www.bharatishipyard.com
www.pipavavshipyard.com.
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ANNEXURE – 2
QUESTIONNAIRE
NAME _________________________________
AGE _________________________________
COMPANY _________________________________
DESIGNATION _________________________________
1. How long have you been working for the company?
(a) Less than a year
(b) 1-2 yrs
(c) 3-4 yrs
(d) 5-10 yrs
(e) 10yrs & above
2. Overall how much are you satisfied with your company‘s personnel
policies?
(a) Satisfied
(b) Dissatisfied
(c) Neither Satisfied or Dissatified
3. Does your company use talent management practices for identifying key
performers?
YES NO
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4. WITHIN your organization, what kinds of talent development activities
are carried out?
(a) Skill building classroom workshop
(b) Developmental experience term assignments
(c) Coaching
(d) Action learning
(e) Mentoring
(f) Education
(g) Others
_______________________________________________
5. At the time of Talent Management exercise, is the individual assessed on
(a) Past Performance
(b) Fresh battery of tests
6. How do you indentify the talent?
(a) BY COMPETENCIES
creating profile of leadership job
creating profile of management
(b) BY RESULTS
objective measures like sales/production/etc
subjective measures like total contribution /team effort etc
accountable for complex jobs
(c) BY POTENTIAL
accumulated skills / experience
ability to learn new skills
willing to tackle bigger/complex challenges.
(d) OTHERS
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7. In your current organization, what methods are most commonly used to
communicate with employees?
(a) In – Person
(b) Employee meetings
(c) Letters from Senior Executives
(d) E – Mail.
8. Talent management is the process of ensuring that the organization
attracts, retains, motivates and develops the talented people it needs. Do
you have such a process in your company?
YES NO
_____________________________________________________________
_____________________________________________________________
9. Designing jobs and developing roles which give people opportunities to
apply and grow their skills and provide them with autonomy, interest and
challenge. Does your HR undertake such assignments?
YES NO
_________________________________________________________
_________________________________________________________
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10. Providing talented staff with opportunities for career development &
growth. Is there such a program in your organization?
YES NO
11. Excluding financial compensation which of the following do you believe
are your organization‘s most effective means of rewarding motivating &
retaining talent?
(a) External Training Sessions
(b) Innovations
(c) Recreational Activities
12. Developing the leadership qualities of line managers; recognizing those
with talent by rewarding excellence, enterprise and achievement. Do you
have these as part of your leadership development programs
YES NO
13. Are Talent Management initiatives a top priority in your organization
YES NO
14. What % of your workforce has been identified as ―Talented‖?
______%
15. Does your organization have a staff member whose position is
exclusively responsible for overseeing talent management initiatives?
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Yes at managerial/ Excecutive level
No
16. Overall how satisfied are you with this company as a place to work as
compared to other places you have worked?
(a) Satisfied
(b) Dissatisfied
(c) Neither Satisfied nor Dissatisfied
17. What are your talent retention initiatives?
(a) Acquiring new talent
(b) Leveraging existing talent
(c) Retaining the current potential
18. What category of employees should organizations try to retain?
(a) Only Experienced Employees
(b) Only Employees who exhibit managerial skills
(c) All employees
19. If a person wants to leave the job how do company retain that
candidate
(a) Salary appraisal
(b) Provide a better job role
(c) Understand personal issues and resolve it
(d) Provide proper motivation
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20. HR must act as facilitators *HR‘s role is to facilitate the management of
talent and to act as coaches and consultants to the line managers. For it
to be truly successful talent management cannot be seen as simply an
HR initiative. DO YOU AGREE WITH THIS STATEMENT?
YES NO