Every business unit is making sure that they can respond and withstand thechallenges of talent crisis by developing an effective talent management strategylike identifying the key talented people in the organization, cultivating anddeveloping the skill of their present workforce and retaining highly talentedemployees by protecting them from competitors.
Talent Management and Human Capital Management:
Many authors say that TM and HCM are the same. However, according to Donald H Taylor (http://donaldhtaylor.wordpress.com/2007/03/26/talent-management-is-not-the-same-as-human-capital-management/) they are not the same. He says,“Whereas Talent Management is focused on the individual, human capitalmanagement, with its academic/accounting origins in aiming to understand thevalue of people, includes the aggregate view. For this reason, HCM has to include anidea of the overall value of the human asset in an organization. It also, from thisdata, includes analysis of the hot spots and problems in the current developmentand deployment of employees.” However, for the purpose of our discussion we shalltake them to be synonymous. Some other closely related terminologies are, HRIS(HR Information Systems) or HRMS (HR Management Systems), and HR Modules. Itis beyond the scope of this paper to bring forth the subtle differences.
A Brief History:
The origins of TM can be traced to the 1990s with the realization of the immensevalue of the Human Asset for organizational success surpassing every otherresource. Today it is a very widely used terminology with Google returning about26,300,000 results. Many companies commit the mistake of putting a herculeaneffort in attracting the best employees but fritter away this valuable resource by notmaking 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 timeit has become part and parcel of the corporate strategy itself with a keyresponsibility placed on the line managers. One cannot wish away the fact thatthese managers have to play a pivotal role in nurturing the talents and skills of those reporting to them. In other words, it is a case of joint trusteeship between theline and staff functions. However, in Indian Companies, talent management is of fairly recent origin.
Scope of Talent Management: