Talent Management :

Recruitment Selection &

Succession Planning
 HRM CORE SYSTEM
Compensation
Manpower -Salary & Benefits
Planning
-Increases & Incentives

Recruitment Orientation Performance Management Exit

& Selection

Training & Development

Human Resource Flow

Information Flow
 HRM Analytical Framework

Internal Context Employee Outcomes

Employment Contract
Psychological Contract
HRM System (Employment/Employability)
Fit and Flexibility
Stakeholder Interests (contextual fit & flexibility
to change)
Organizational Outcomes
Human Capital Readiness & Performance
External Context (Ability, Motivation, Productivity etc)

Adapted from Beer et al., (1984). [Harvard ‘map of HRM territory].

 Tale Of Two Markets
• Internal Labor Markets (Make)
– Advancement: Tournaments
– Organizational Commitment
– Cradle to Grave Contract
– Career Development: Organizational Responsibility

• External or Open Labor Market (Buy)

– Advancement: Job Hopping
– Career or Professional Commitment
– Boundary less Careers
– Career Development: Individual Responsibility
 Career Systems and Business Strategy
HRM System Defender Prospector

Work Flow Efficient production, control emphasis, Innovation, Flexibility, broad job classes, Loose
job descriptions, detailed work planning work planning

Career Path Internal Labor Market External Labor Market

Internal Succession Planning External Supply Chain management
Basic HRM Strategy Build (Make) Acquire (Buy)

Psychological Contract Relational Transactional

Organizational Commitment Professional Commitment
Organizational Culture Strong Weak

Recruitment/Selection Entry level, Attitudes All Levels, Skills

Internal External
Training & Development Skill Building Skill Acquisition
Firm Specific General Management

PMS Developmental Control Oriented

Behavior/Process oriented Outcome Based

Compensation Job / Seniority based Performance Based

Internal Equity External Equity

Attrition Very Low, Slightly Higher at entry Comparatively Higher

 HRM Customization
Alliance Make
HI
Collaborative HR Commitment Based HR

Uniqueness Contract Buy

Compliance Based HR Market Based HR

Lo Lo Hi
Strategic Value

Source: Lepak & Snell (1999)

Definition :Succession Planning

• Ascertaining the demand supply gap for

replacements of key positions, and
developing human resources to fill up the
gap.

• For organization it may be succession

planning (SP) but for individual it is
career planning and management (CP).
 Recruitment & Selection
• Realistic Job Previews
– Screening & Signaling
• Hiring for Attitudes or Behaviors
– Competency Maps
– Reliable and Valid Selection Procedures
– Clarification of Psychological Contract
• Socialization
• Mentors
Career Development Decisions
Problem Children Star
Performance-
Potential Matrix
HI
Potential Laggards Solid citizens

Lo Lo Hi
Performance
 Sources of performance information

• Performance appraisals.
• Assessment centers.
• 360 degree feedback sources.
• Performance on projects. assignments, teams.
• Mentor’s and coaches.
 Promotion policies
• Up and Out Policies.
• Fast Track Careers.
– Some more methods to develop: Coaching,
Mentors, Understudies, shadow board of
directors.
– Special assignments, job rotation.
• Tournaments
– Initial career growth history has impact on later
career growth.
– High profile mentors have been found to
influence protégés career growth positively.
– Pygmalion effect.
 Career Development Issues

• Fast Track
– Burnout
– Jealousy
– Undeveloped People Skills
• Plateau
• Poor Performers
• Dual Career Couples
• Retention
– Golden Handcuffs vs Golden handshakes
– Job Redesign
– Social ties
Sometimes fast is too fast?
• Young managers tend to be excellent in
technical skills but often lack in people
management skills.
– Deepen 360 deg feedback.
– Interrupt the ascent.
– Act on your commitment (Emotional
competencies are not optional).
– Institutionalize personal development.
– Cultivate informal networks.
 Where should organizations put there
training money?
• Human Capital Theory
• Basic Equation : Net benefit = (B-S)-C
– B: Gross Benefit accrued to Firm due to trg.
– S: Additional Salary needs to be paid after trg.
– C: Cost of trg.
• Two cases
– Firm Specific Training S=0 (e.g. OJT).
– General Purpose Training S=B (e.g. Leadership skill).

• Individual
– Enhances Employability
• S=0 and S=B Cases
– Enhances Individual Performance and Rewards
– Enhances Employee Org Commitment
• Employee Tenure Post Training
 Retention strategies

• Paying for skills

• Deferred compensation
• Job design and customization
• Social ties
• Location
• Hiring.
Talent Management in 21st century

• Additional principles:
– Make and Buy to Manage risk.
– Adapt to uncertainty in demand.
– Improve ROI in employee development.
– Preserve investment by balancing employee and employer
interest.

• (Refer reading)