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Unit -1 Introduction to Talent Management

Definition: Talent management is the systematic process of identifying the vacant position, hiring the suitable person, developing the skills and expertise of the person to match the position and retaining him to achieve long-term business objectives. Talent consists of those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential. Talent management is the systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organization, either in view of their “high potential” for the future or because they are fulfilling business/operation-critical roles.

Talent Management: Concept Wide variations exist in how the term “talent” is defined across differing sectors, and organizations may prefer to adopt their own interpretations rather than accepting universal or prescribed definitions. That said, it is helpful to start with a broad definition and, from our research, we have developed a working definition for both „talent‟ and „talent management‟: Talent consists of those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential. Talent management is the systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organization, either in view of their „high potential‟ for the future or because they are fulfilling business/operation-critical roles.

These interpretations underline the importance of recognizing that it is not sufficient simply to attract individuals with high potential. Developing, managing and retaining those individuals as part of a planned strategy for talent is equally important, as well as adopting systems to measure the return on this investment. More organizations are also now broadening their definitions, looking at the „talents‟ of all their staff and working on ways to develop their strengths At its broadest, then, the term „talent‟ may

be used to encompass the entire workforce of an organization. Talent is everywhere; the difficulty today lies in identifying the right kind. Talent management as part of skills management has become a key element for business performance. It is a source of individual recognition, which is a key factor for internal mobility and generates change for innovation. Identifying talent is finding the people that will transform business knowledge by sharing it around them and transforming it into tools, goods or services that can create future wealth for the company. Companies engaging in a talent management strategy shift the responsibility of employees from the human resources department to all managers throughout the organization. The process of attracting and retaining profitable employees, as it is increasingly more competitive between firms and of strategic importance, has come to be known as "the war for talent." Talent management is also known as HCM (Human Capital Management). The term "talent management" means different things to different organizations. To some it is about the management of high-worth individuals or "the talented" whilst to others it is about how talent is managed generally - i.e. on the assumption that all people have talent which should be identified and liberated. Talent Management in organizations is not just limited to attracting the best people from the industry but it is a continuous process that involves sourcing, hiring, developing, retaining and promoting them while meeting the organizations requirements simultaneously. For instance, if an organization wants the best talent of its competitor to work with it, it needs to attract that person and offer him something that is far beyond his imagination to come and join and then stick to the organization. Only hiring him does not solve the purpose but getting the things done from him is the main task. Therefore, it can be said that talent management is a fully fledged process that not only controls an entry of an employ but also his or her exit.

Objectives of talent management 1. Identify the key gaps between the talent in place and the talent required to drive business success. 2. Develop a sound integrated talent management plan designed to close the talent gaps. 3. Facilitate and support management to implement accurate hiring and promotion decisions. 4. Develop talent to enhance performance in current positions as well as readiness for transition to the next level. 5. Develop a succession and retention plan to sustain organizational excellence 6. Measure business impact and workforce effectiveness during and after implementation

Talent Management Process Model

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Planning: Planning is the initial step in the process of Talent Management. It involves the following: 

Identifying the human capital requirement.

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Developing the job description and key roles.

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Proposing a workforce plan for recruitment.

2. Attracting: Deciding whether the source of recruitment should be internal or external and seeking for the suitable individuals to fill in the vacant positions through: 

Job Portals such as Naukri.com, Timesjob.com, etc.

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Social Network such as LinkedIn and Twitter.

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Referrals. . 3. Selecting: Recruiting and selecting the personnel. It involves the following steps:

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Scheduling written test and interviews.

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Scrutinizing the most suitable candidate for the profile. . 4. Developing: In this stage, the employee is prepared according to and for the organization and the profile. Following are the steps involved in the process: Carrying out an on boarding programme or an orientation programme.

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Enhancing the skills, aptitude and proficiency of the personnel to match the

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Counseling, guiding, coaching, educating, mentoring employees and job rotation.

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5. Retaining: Employee retention is essential for any organizational existence and survival. Following are the ways of employee retention:

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Promotions and increments.

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Providing opportunities for growth by handing over special projects.

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Participative decision making.

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Teaching new job skills.

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Identifying the individual’s contribution and efforts. .

6. Transitioning: Talent management aims at the overall transformation of the employees to achieve the organizational vision. It can be done through:

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Retirement benefits to employees.

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Conducting Exit interviews.

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Succession Planning or Internal Promotions.

Talent Management Initiatives The managers and the higher authorities need to take the initiative to pave the way for the personal development and long-term association with the organization. Some of the ways in which a manager can motivate and retain employees are as follows:

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Recognition: Recognising employees’ contribution and their work on individual grounds, boost up self-confidence in them.

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Remuneration and Reward: Increasing pay and remuneration of the employees as a reward for their better performance.

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Providing Opportunities: Giving the charge of challenging projects to the employees along with the authority and responsibility of the same, makes them more confident.

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Role Design: The role of employees in the organisation must be designed to keep them occupied and committed, it must be flexible enough to inculcate and adapt to the employee’s talent and knowledge.

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Job Rotation: Employees lack enthusiasm if they perform the same kind of work daily. Thus, job rotation or temporary shifting of employees from one job to another within the organisation is essential to keep them engaged and motivated.

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Training and Development: On the job training, e-learning programmes, work-related tutorials, educational courses, internship, etc. are essential to enhance the competencies, skills and knowledge of the employees.

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Succession Planning: Internal promotions helps identify and develop an individual who can be the successor to senior positions in the organisation.

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Flexibility: Providing a flexible work environment to the employees makes them more adaptable to the organisation and brings out their creativity.

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Relationship Management: Maintaining a positive workplace where employees are free to express their ideas, take part in the decision-making process, encourage employees to achieve goals and are rewarded for better performance leads to employee retention.

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Self-motivation: Nothing can be effective if the employee is not self-determined and motivated to work.

Benefits of Talent Management Benefits of talent management for the organization 

Strategic talent management results in the accomplishment of organizational vision.

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Filtration of talented employees and retaining of the finest ones is possible.

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Talent management strengthens the organizational structure by building strong human capital.

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It helps the organization to succeed over its competitors and establish a strong presence in the market.

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It builds up a good reputation of the company among the job seekers.

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It leads to improved participative decision making by the management.

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It directs continuous improvement in organizational performance making it more efficient and effective.

Benefits of talent management for employees 

Talent management initiates a positive environment in the organization where employees experience job satisfaction.

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Employees get a chance of learning and improving themselves which motivates them to perform better.

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The training and development programmes help the employees to learn something new, enhancing their personal skills and knowledge.

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The organization focuses on an individual’s growth and betterment hence employees develop a feeling of being cared for and belongingness for the organization.

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The employees remain associated with the organization for a long-term period.

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Recognition and rewards lift up the employee’s confidence level.

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The rigorous learning, adds on to the experience of the employees.

In today’s global scenario, the human resource has been a very effective tool for the company’s growth and success. Thus to make the best possible utilization of the employee’s talent and skills, talent management is essential.

Causes for failure in Talent Management: Talent management is one of the cursing factors threatening organization. The causes of poor talent management are discussed as follows: 

·Long working hours: Long working hours and the intensity of work have consistently emerged as two top most concerns of workers (Duxbury and Higgins, 2003). Employees feel tired and bored because of long working hours. The duration of work, number of working hours and timings play a significant role in retaining of an employee.

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Unsupportive management: Work place support i.e., the support received from supervisors and co-workers are the key elements in talent management. Organizations have to understand the nature and problems of the employees and create congenial work atmosphere, because support and co-ordination from top level management and coworkers helps an employee to motivate and engage himself in work.

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Lack of co-ordination and communication: Co-ordination between different levels of management is needed to set organizational objectives. Communication helps to share the

creative ideas and information among employees. But due to lack of proper co-ordination and communication between employees quit the organization. 

Higher personal aspirations: In the modern world, the life style of an individual is one of the main reasons for poor talent management. Ever-increasing ambitions, changing fashions, etc., can cause envy and a feeling of discontentment (Sarma V.S. 2009). Most of the employees have higher aspirations towards their career and personal development. An environment with poor facilities for growth and development may not create an opportunity for employees to achieve personal aspirations.

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Unsatisfactory monetary and non-monetary rewards: Monetary and non-monetary benefits play an important in retaining of an employee. An employee whose monetary benefits are less than the cost of living may undergo may leave the organization and try for some other source of work. Hence organizations have to offer attractive benefits to retain employees.

Consequences of failure in Talent Management: The consequences of talent attrition affect the organization effectiveness. The following are some of the consequences of talent attrition.  Declined productivity: These days firms focus on getting more output from less input. Productivity is very important for organizations from which they attain profits. But due to poor working hours employees fail to produce maximum output leading to decreased productivity.

 Increased turnover: Turnover means employees leaving the organizations. Turnover of employees is a big qualitative and quantitative damage for employers. Turnover affects organizational culture and productivity. Turnover leads to windup of many entities. Work intensification has led to health problems and attrition of professional and managerial employees (Fang Lee Cooke and Xingyao Jing, 2009). Unsupportive management and coworkers lead to employee turnover.

 Poor industrial relations: Employees who fail to co-ordinate with one another may conflict with each other. Organizational conflicts affect the reputation, productivity and industrial relations. Hence healthy industrial relations enable talent management.

 Inability to accept change: People resist change and ignore to learn the updated things. Employees with poor monetary and non-monetary benefits may not accept the changes in the organization structure, policies, goals and objectives. Even employees may resist the projects and plans. Hence change management helps employees to concentrate on their personal career and profession.

Remedial Measures for Talent Management:  Creating opportunities for growth: Organizations have to create an assurance for employee’s growth. Organizations gain profits from the efforts of employees, hence the organizations have to provide training and development programs for employees. These programs not only contribute to organizational success but also make individual’s successful. Hence organizations have to create opportunities for growth and development for employees.  Relate the recruitment policy with organizational needs: Many time organizations invest more on recruitment without proper forecast on future needs. While recruiting people organizations promise many monetary and non-monetary benefits. But later on they fail to look after the basic needs of employees. Hence there should be matching between recruitment policy and organizational needs.  Employee counseling: the organizations have to conduct periodical counseling programs by experts where people can minimize their stress. Misra says, “Transformation is all about breaking habits”. “Organizations develop holy cows which are created and perpetuated. Somebody needs to challenge that; change is incremental. We need to create ‘discomfort’ in people about the status quo”. Change management's goal is to maximize an organization's benefits and minimize the impact of change on workers. The employee friendly policies like change management, stress management, adequate training and development programs, refreshing courses, etc have to be organized by organizations to retain employees.

Talent Management as Competitive Advantage In a company’s relentless pursuit of seizing competitive advantage, it became clear that all the improvement initiatives and programs had a common denominator and that was the employee. Fix- it programs depended on the commitment, motivation and special talents of employees who ultimately determined if the program would succeed or fail. The major task is to acquire, develop and retain talented employees faster and more efficiently than the competition.

For most companies their payroll is their largest recurring expenditure. It makes practical business sense to optimize that monthly investment. Improving an organization’s talent management practices however, isn’t a silver bullet approach but rather a multi-pronged strategy that tackles challenges on at least four principal fronts, and they are: recruitment, performance and learning management, leadership development, and bottom-up communications. Organizations work towards the achievement of their mission and strategic objectives. This requires a thorough understanding of the resources required for achieving the objectives. Resources here imply financial and non financial, and they are equally important and interdependent Technically these resources have been divided into two, 1. non contingent and 2. differentiating capabilities Non contingent capabilities (existence) are basics that enable an organization to compete and exist in the marketplace. Differentiating capabilities are those that differentiate an organization from that of the other and offer competitive advantage. Effective marketing management, for example can be one of non contingent capabilities. Similarly many HR processes aspire to develop non contingent capabilities but they often fail to align with the strategy and offer competitive advantage. Most of these processes end up developing people in similar areas and similar capacities as their rival firms but fail to provide any competitive advantage. 

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For organizations to develop competitive advantage through HR processes it is very important to define strategic differentiating capabilities and then develop a process for identifying and developing the same. This empowers the HR people to create an impact on the organizational strategy and also provide a link between talent management and strategy. For HR to prove that talent management can be of strategic importance to organizations, the critical relationship between the two must be proven. Talent management specially needs to be projected as a differentiating strategic capability that can offer real and substantial competitive advantage.

Talent management Vs Knowledge Management Talent management is the ways in which an organization identifies, selects, develops and deploys the people resources it requires to execute its strategy.

Knowledge management is the ways in which you record, store, deliver and distribute the critical internal “intellectual capital” e.g. processes, procedures, resources, training, etc., that is important for an organization in training its people, and delivering its output. Some have large knowledge-bases that aid in everything from on-boarding and new hire integration and training, to repositories of research, old sales presentations and client deliverables. They’re related in a way, as having a robust knowledge base...