TM & ER

SET-I SEM-IV

ANS: 1

A. TALENT MANAGEMENT:

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 a company. Talent management in this
context does not refer to the management of entertainers. The term was coined by David Watkins of Softscape
published in an article in 1998. 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."

B. CONCEPT OF TALENT MANAGEMENT:

In order to develop strategic capability in talent management by HRD, talented or potential employers need to
ensure they clarify the requirements of their talent management program, including the success criteria to be
used to measure their program’s contribution.
When looks at the big and strong companies for example multinational company such as PepsiCo and GE that
still invested in development, looking grounds for talent simply by maintaining some of the practices that nearly
all corporations had followed in the past. In Malaysia, for example we can look at Petronas and Shell on how
they have done to develop internally their staff to become a good manager or leader in future and recently, Dato
Sri Idris Jala, former CEO of MAS and also from Shell was appointed as Minister at Prime Minister
Department.
However, to attract and retain not a simple job because employees have a different needs and wants. There is no
a simple way but they have to go through from raw and scratch to good product. It must be competitive,
distinctive and should leverage the company’s overall brand in the marketplace. It must be designed to attract
the specific types of individuals dictated by the company’s unique leadership model by shows the company’s
great leaders, great jobs, attractive compensation and company reputation and standing.
Oxford English Dictionary (eleventh edition) defines talent as a noun, means nature aptitude or skill. People
possessing aptitude or skill in their work and show their ability to the company. Longman Dictionary of English
New Edition, 1991 defines talent a special natural ability.

C. DIFFERENCE BETWEEN KNOWLEDGE, SKILL & TALENT:

The concept of KSA and talent can be explained in simple terms as:
Knowledge – Something you know
Skills – Something you do
Attitudes – Something you have
Talent – Something which is inborn in you

If we have a closer view Talent in relation with Skill and Knowledge then we can state Talent is inborn. It is a
natural propensity. It cannot be learnt. Talent alone is not enough. A person may have a natural propensity
towards music (or art, or sports) but without practice and education, the talent goes to waste. You may have a
talent towards singing but without practical use, experience, knowledge and skill, your talent does little for you.

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Yes, talent management is a business problem. Below is the explanation.
Talent management describes the process through which employers of all kinds – firms, government, and non-
profits – anticipate their human capital needs and set about meeting them. 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.

Decisions about talent management shape the competencies that organizations have and their ultimate success,
and from the perspective of individuals, these decisions determine the path and pace of careers. Talent
management practices can have a crucial impact on society as well. The lifetime employment model of the post-
WWII generation, for example, provided the economic stability that created middle class society.

Failures in talent management may be more recognizable than the concept itself. Those failures mean
mismatches between supply and demand: Too many employees, leading to layoffs and restructurings on the one
hand, and not enough talent, leading to talent crunches on the other. In India at present, it may be hard to
imagine the problem of having too much talent, but the first downturn in the economy – or even in a section of
the economy – will make that clear. These mismatches are among the fundamental problems that businesses and
other large employers face. Over the past generation, corporations in particular seem to have lurched from
surpluses of talent to shortfalls to surpluses and back to shortfalls again. The challenge employers face is to
track much more closely the demands for talent to avoid both shortfalls and oversupplies.

Many observers assume that the management of talent is really about the internal development of human
capital, yet the majority of vacancies in corporations now are filled from outside. They also assume that internal
development practices such as executive coaching, career pathing developmental assignments, assessment
centers, high potential programs, and succession planning, are something new.

These techniques and indeed, every employee development practice that seems novel now – forced ranking
performance evaluation systems, 360 degree feedback programs, executive coaching, etc. – were all common in
the 1950s. Except at a few very large firms, they have been scaled back and, in many cases, largely abandoned.
The reason was not that these practices failed to develop talent. It was because they were too costly. And the
biggest cost was the difficulty they faced in managing the unpredictability of the demand for talent.

Internal development of talent collapsed in the 1970s when business forecasting failed to predict the downturn
in the economy, and the talent pipelines continued to turn out talent under the forecast assumptions of booming
corporate growth. The excess supply of talent and the no-layoff policies for white collar workers caused a
bloating of corporate organizations and the steepness of the 1981 recession in the US and elsewhere led
virtually all companies to back away from developing talent. Lifetime employment came to an end, and the
reengineering processes cut away the development practices and staff that created talent. After all, if the priority
was to get rid of talent, why would companies maintain the programs designed to create it?

We need a new way of thinking about the talent management challenge. A new framework for talent
management has to begin by being clear about the goal. Talent management is not an end in itself. It is not
about developing employees or creating succession plans. Nor is it about achieving specific benchmarks like a
five percent turnover rate, having the most educated workforce, or any other tactical outcome. The goal of talent
management is the much more general but important task of helping the organization achieve its overall
objectives. In the business world, that objective is to make money.

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ANS: 2

Mr. Ravi, the HR Manager of “APEX” has designed following strategies for retention.

Some guidelines that can be apply in the Organization to improve the retention:-

• Show employees that you have an interest in their success

60 to 70 per cent of workers do not feel that their companies help them to develop their career. Managers of
successful companies are acutely aware that even the most brilliant business model will not work without
skilled individuals motivated by a culture of management concern.

• Allow employees the room to develop their skills

Many employees find themselves trapped in a narrow job function so mission-critical that the organization
cannot afford to move them. Frustrated employees, unable to satisfy their need for growth, resign, leaving holes
that disrupt the company’s workflow in the short term. The company also loses strong performers who could
have filled other, more important, roles over the long term.

• Give employees a clear idea of the long-term goals of the company

Three quarters of unhappy employees do not believe that their company knows where it is going. Companies
should endeavor to change their perceptions by communicating effectively to employees the direction it wants
to take. This should be followed up with behaviour that is consistent with what they have told employees!

• Measure soft skills

Many companies say they value people and train their management team to cope with people issues. Yet these
same managers are rewarded based on their technical skills and financial results. Too often, people skills are not
rewarded and no measure exists to evaluate them. Employees get the message that, “people skills do not matter”
and so neither do people.

• Fight turnover with smart training

Two principles can help companies score big retention wins through training. Firstly, keep it relevant. Some
firms act as though any training is better than none. From the employees’ perspective, that is not true. If training
is not relevant to their jobs they feel it is a waste of time. Secondly, use training to broaden experience.
Companies too often provide training that merely reinforces old skills instead of building new ones.

• Develop your management team

People see good bosses as the wind beneath their wings, and employees who lack confidence in their bosses
will leave the organization sooner rather than later. A key retention strategy is to weed out marginal managers.
Replace them with managers who can craft a compelling game plan, communicate it effectively to their teams
and deploy initiatives that are consistent with company strategy.

• Weed out poor performers in non-management ranks

Managers often under-estimate how strongly employees resent the presence of underperformers within their
work group. The productive employee often has to take on more work to compensate for the poor performance
of others, and they can feel that management is either turning a blind eye to unjust practices, or does not have
sufficient interest in what goes on “below decks” to notice any disparity in working practices amongst
employees. When the slackers are weeded out, both morale and retention improve.

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ANS: 3

LORE’S TALENT MATURITY MODEL:

The Lore Talent Management Maturity Model (Lore TMM) is a diagnostic and prescriptive framework that
allows organizations to assess the current state of their Talent Management (TM) efforts, identify what needs to
be done to move to the next higher stage of practice, and develop the plans to get there. The Lore TMM used in
conjunction with Lore's diagnostic assessments and services provides a complete Talent Management roadmap
for success.
The Maturity Model itself is based on an extensive array of research covering organizational theory, technology
and innovation adoption, and talent management practice and systems. From this research, Lore has developed
and validated a four-stage model of TM system growth. The following graphic illustrates the four
developmental stages of a corporate Talent Management system. Associated with the progression from one
stage of development to the next higher stage of development is a specific crisis that must be successfully
resolved in order for the enterprise to advance (adapted from McClure, New Entrepreneur Guidebook, 1998 and
Adizes, Corporate Lifecycles: How and why corporations grow and die and what to do about it, 1988). The
initial crisis is related to gaining organizational commitment. When enough commitment is achieved, the new
initiative starts, but a crisis of leadership must be overcome before progressing to Expansion. When a strong
leader has emerged, the Talent Management system can progress to a stage of Professionalism. Organizations in
this stage face the crisis of autonomy, standardizing and ensuring consistent quality while allowing leaders at all
levels to lead. Many efforts falter at this point, remaining disconnected from the business. Lastly, before
reaching the Best Practice stage, organizations must address the crisis of control. Addressing this crisis means
that the entire organization is pulling in the same direction, so that the Talent Management system is finally
contributing its true value to the business.

Talent Management Maturity Model (TMMM) Crisis Definitions

Crisis of Commitment: The initiative idea dies if no one makes a real commitment to it. A real commitment
means giving of one's self and/or vital resources to pursue the new idea (initiative). Equally important as the
commitment of time and resources is the reason for making the commitment. At this stage, the founding leaders
are committed to the dream, the burning vision, of making the initiative a success and seeing it widely
appreciated. The founding leaders have to have desire in order to sell the dream and get others committed and
involved. Once this happens, the initiative can become a reality and enters the New Initiative stage.

Crisis of Leadership: The founding leaders are usually risk takers with little or no patience for administration.
These founding leaders directly supervise or do everything themselves. The founding leaders are the initiative.
As the initiative grows, it becomes a mix of dreamers and doers, without many checkers and organizers. Only
when strong managers emerge or are brought in will the initiative be ready for the Expansion stage.

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Crisis of Autonomy: The new leaders flex their muscles and head off in new directions. They decide things
differently than the founders would have. Mistakes happen, and the founding leaders feel blindsided and
threatened. Control is pulled back to the founding leaders, but eventually, delegation returns. If there are no
guidelines in place, managers cannot use their delegated power without getting crosswise with other parts of the
organization. The implementation of policies, procedures, and guidelines will be necessary to ensure that all
parts of the organization are headed in the same, correct direction and allows the initiative to enter the
Professionalism stage.

Crisis of Control: No amount of professional glue (i.e., policies, procedures, and guidelines) can hold human
nature in check forever. Strong leaders will want to run their own shows. The initiative will require better
coordination in order to rise to the Best Practice stage. This means that coordination must be addressed
structurally, through resource allocation, and reward/incentive alignment.

The resulting stages of Talent Management system development, from New Initiative to Best Practice, are used
in the Lore Talent Management Maturity Model to organize the activities that represent normal TM activities at
that stage of development. Lore's research has identified three success factors that a comprehensive TM system
must address: Organizational Support Conditions, Talent Management Utilization and Talent Management
Activities. In each of these strands are critical components that must exist in the TM system in order for it to be
effective. So for example, within the strand of Organizational Support, the attributes of Leadership, Alignment
and Infrastructure determine the success of the TM system in the organization. The Lore Model shows how
each of these three attributes must change from one stage to the next in order for the TM system to move to
higher levels of performance.

The tables below shows the full Lore Talent Management Maturity Model. The model presents each of the four
maturity levels in terms of the three organizational success factors, and identifies the critical and measurable
attributes in each factor:

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MATURITY STAGE STAGE 4: BEST PRACTICE
CRISIS CONTROL
ORGANISATIONAL Leadership Full ownership & accountability at all organizational levels, CEO &
SUPPORT Board proactively involved
CONDITIONS
Alignment Aligned with business strategy, goals & objectives reinforced by
compensation
Infrastructure Integrated with enterprise IT systems & extensive support resources
including funding
TALENT Metrics Value based metrics & ROI
MANAGEMENT
UTILISATION
Uses Talent Management efforts are part of the business fabric & evolve
continuously with business
Adoption Enterprise wide
TALENT Focus Business Impact
MANAGEMENT
ACTIVITIES
Components Complete suite of Talent Management Components
Integration Seamless with business execution

MATURITY STAGE STAGE 3: PROFESSIONALISM

CRISIS AUTONOMY
ORGANISATIONAL Leadership HR, Executive Sponsor, ownership & accountability at most
SUPPORT organization levels
CONDITIONS
Alignment Aligned with business strategy, customized to fit business needs
Infrastructure Set of IT systems or Separate TM system, appropriate level of
support resources
Leadership HR, Some Executive Sponsorship, multiple pieces of organization
TALENT Metrics Activity, Commitment, Results
MANAGEMENT
UTILISATION
Uses Data from TM efforts drive strategic decision making ensuring that
Talent Management efforts meet business needs
Adoption Most business units, attributes
TALENT Focus TM Results
MANAGEMENT
ACTIVITIES
Components Most standards TM components
Integration Activities are connected & integration with business execution has
started
Focus TM Development (developing new TM components)

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MATURITY STAGE STAGE 2: EXPANSION
CRISIS LEADERSHIP
ORGANISATIONAL Leadership HR, Some Executive Sponsorship, multiple pieces of organization
SUPPORT
CONDITIONS
Alignment Aligned with pieces of business strategy or with units of business
Infrastructure Some IT stand alone applications, some support resources
TALENT Metrics Activity, Commitment
MANAGEMENT
UTILISATION
Uses Data collection from TM efforts to identify & address local and/or
tactical issues
Adoption Some business units, attributes (Early Majority)
TALENT Focus TM Development (developing new TM components)
MANAGEMENT
ACTIVITIES
Components Multiple components
Integration Mostly stand alone activities, may be some activities connected

MATURITY STAGE STAGE 1: INITIATIVE

CRISIS COMMITMENT
ORGANISATIONAL Leadership HR, Program Owner
SUPPORT
CONDITIONS
Alignment Little alignment, may be “off the shelf” program activity
Infrastructure No or little IT, program support resources only
TALENT Metrics Primarily activity based
MANAGEMENT
UTILISATION
Uses Data collection to identify and/or address local issues
Adoption Early adopters only
TALENT Focus TM Activity Delivery
MANAGEMENT
ACTIVITIES
Components Single or a few components
Integration Little or no integration, likely a stand alone activity