Master of Business Administration-MBA Semester IV Subject Code – MU0008 Talent Management and Employee Retention

Assignment Set- 1 & 2

Name: Reg No:

Kavana K 520965934

1

They know how to recruit stars. or from financial to IT. It is surprising how few companies develop and move their talent around the organization. or from sales to customer advocacy. Ever hire a star only to see them leave in frustration 9-18 months later because they felt stuck? Or experience shock when an outstanding performer leaves your company after 5 years because they were ‘too valuable’ in their current job to be allowed to move to a different position or department? So instead. I want the majority of us not to be in the same job – or even the same function – three to five years from now. But beneath the surface. Cisco had to learn a different set of skills for attracting and keeping talent. But when the company’s marketplace and stock price tanked. Charles O’Reilly and Victoria Chang describe how this Silicon Valley legend has refocused its approach to talent from external acquisition to internal development and deployment. attract and hire talent.haas. It also realized that it needed to better utilize the talent it already had. “We made progress in developing employees. The company recast its Pathfinder software application originally developed to support external recruiting and used it to create an internal job matching system. move and grow – within the company. it was buying talent through acquisition and keeping it through high-priced equity stakes distributed to employees. that will allow us to move from one business unit to another in engineering. Not much talent management acumen was required. This short sighted behavior is reinforced by management and incentive systems that reward business results but not development of people. California Management Review.edu/News/cmr/contents. Pathfinder’s 2 . For years Cisco was the poster child for how to identify. According to CEO John Chambers. http://www. HR and line managers often lack the tools and information to understand and manage the supply and demand of people and skills dynamically. 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. I want us to create an environment of continuous learning and challenge. Winter 2005. Performance obsessed managers are often reluctant to give up the people resources they feel are needed to achieve ever more challengingly goals and performance objectives. There are many organizational and cultural reasons why companies constrain talent. 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. They may also be prone to rely on traditional hiring and firing processes as a means of matching skills demand and supply rather than more complex retraining and redeployment of existing resources. Thus they are likely to be slow and reactive in responding to shifts in skill requirements and opportunities to grow new competencies. in “Cisco Systems: Developing a Human Capital Strategy”. For example.html.” Companies like Cisco that compete in dynamic industries. they moved to a different company. where technologies. Great businesses however are skilled at developing and deploying talent in ways that continuously grow their experience.berkeley. but in our industry. Jennifer Chatman. products and markets are in a continuous state of change must learn how to develop and redeploy their talent in an agile manner. Some leading edge companies however are beginning to tackle the talent agility challenge.1: Explain the talent Management imperative Ans: Competent businesses are adept at hiring and firing workers.

but as a set of distributed capabilities for everyone to tap across the organization. or age (40 or older). John Chambers asked in a company meeting prior to starting these initiatives. religion. on-the-job learning. those companies that can master talent agility will have a leg up on their competition in both the quality of their people and their performance. Companies can legally use these tests. The types of tests and selection procedures utilized include cognitive tests. to keep up with the market transitions. I-Profiler. as long as they don't use to them to discriminate based on race. But these moves represented only part of the solution. allows employees to voluntarily enter their resumes for consideration. and technical qualifications and detail their career aspirations for development discussions with their managers. How good is your organization at moving and retraining staff to anticipate and respond to changes in your business? Not very good you say? If so. This learning and development capability is built upon the ‘3E Model’: -Experience through assignments. and background checks. shadowing. The profiles capture employees’ work and educational experience. But we’ve got to get dramatically better at moving resources around the company.corresponding online database.I keep moving them around. It’s not even in our vocabulary. national origin. Because companies that find ways to grow and move their talent within their organizational boundaries will not only substantially reduce recruiting and termination costs but will better attract and keep top talent as well. Indeed. sex. Our top leadership…. mentoring. personality tests. periodic forums and talent reviews -Education through a series of customized and focused programs that include significant teaching and involvement of senior Cisco executives as well as outside faculty The impetus for shifting Cisco’s talent management strategy came from the top of the organization. Employment tests must be validated for the jobs they are being used to hire for and for the purposes for which they are being used. color. skills. The company also chartered Cisco University to lead a company-wide cross-functional effort to create a ‘development culture’ within the organization. Line managers have access to each of their employees’ profiles to assess existing skills on their teams. medical examinations. and traditional learning -Exposure developed through on-line learning. “How many people think we are good at moving resources (people) and retraining? (No hands were raised). The university does not operate as a centralized place to go for learning. it’s time for a change. 2: Describe Pre -Employment testing Ans: Employers often use tests and other selection procedures to screen applicants for hire.” This is good advice for any company. 3 . disability. credit checks. We’ve got to learn how to retrain people effectively as a part of our culture.

and realistic job previews. including performance tests. Emotional Intelligence Testing Emotional intelligence (EI) is the ability of an individual to understand his or her own emotions and the emotions of others. Credit checks provide information on credit and financial history. also called pre-employment tests or career tests.Online Pre-Employment Tests Depending on the type of test. work samples. Drug Tests There are several types of drugs tests that candidates for employment may be asked to take. saliva drug screen. simulations. and sweat drug screen. as well as knowledge of a particular function or job. assess a candidate's performance and aptitude on particular tasks. Talent Assessment Tests Talent assessments. Physical Ability Tests Physical ability tests measure the physical ability of an applicant to perform a particular task or the strength of specific muscle groups. Pre-Employment Physical Exams Employers may require a pre-employment physical examination to determine the suitability of an individual for a job. employment testing can be conducted online or in the employer's office. memory. Types of Employment Tests Personality Tests Personality tests assess the degree to which a person has certain traits or dispositions or predict the likelihood that a person will engage in certain conduct. 4 . Background and Credit Checks Criminal background checks provide information on arrest and conviction history. Utilizing online testing eliminates the need for the candidate to visit the company's office or for the company to have to administer the test. as well as strength and stamina in general. Talent assessments help predict a new hire’s performance and retainability. and skills in arithmetic and reading comprehension. The types of drug tests which show the presence of drugs or alcohol include urine drug screen. are used to help an employer identify candidates that will be a good fit for jobs. Sample Job Tasks Sample job tasks. hair drug or alcohol testing. Testing job applicants for their emotional intelligence (in the form of psychological-based tests) is a growing employment trend. Cognitive Tests Cognitive tests measure a candidate's reasoning. perceptual speed and accuracy. Online employment tests are often used for pre-employment testing and assessment.

And those that do often lack enough data to pinpoint where the problem is most severe. This often has little to do with the amount of classroom training they have received. the second component represents the organization's responsibility in the retention equation. For example." Good retention practices focus not only on what the employee is contributing to the company. Though managers play a very crucial role in retention. There are a number of manager retention practices which will increase the probability that an employee will remain committed to an organization over time. or to uncover the specific causes of attrition. Other systems are less obvious. many organizations do not track attrition by occupational group other than by "manager" or "no manager. For example. Measurement and Accountability Closely linked to the other components. they do not control all of the factors that can affect attrition.English Proficiency Tests English proficiency tests determine the candidate's English fluency. 2. Furthermore. 3. These retention practices represent the manager's actual behaviors on the job. those organizations that measure attrition sometimes do not track it by length of service. Organizational Retention Systems There are a number of organizational systems and processes that influence retention. Manager Retention Practices Our research consistently validated the reality that the manager plays a significant role in influencing the employee's commitment level and retention. Many organizations do not even know what their attrition rates are. Additionally. Most organizations ask their managers to place productivity as the highest priority. this component ensures that retention becomes an ongoing priority. and their impact on retention is often unrecognized. Lie Detector Tests The Employee Polygraph Protection Act (EPPA) prohibits most private employers from using lie detector tests. underscored by the pressures to fulfill "our obligations to our investors. but also focus on how the manager can create a climate so that the employee is retained and committed on a long term basis. The tenure patterns of the departing employees can reveal valuable information concerning the potential causes for attrition. These systems support the Manager Retention Practices." This simple segmentation is often a crude one that does not provide the organization the refined information it needs 5 . but they also increase the likelihood that employees are committed on a long term basis and are performing at their best. the truth is that these leaders are rare. there is evidence that an organization's recruiting systems and processes can significantly impact retention ratios. such as the equity of pay scales. the best retention practices are not the same as the standard menu for good organizational management. 1. While enlightened leaders balance the needs of the organization with the needs of the employee. Therefore. Some of them are evident. either for pre-employment screening or during the course of employment.

Mr.3: Apex is a firm facing high attrition rate.  Communication. and responsibilities within the organization. simply stopping by a team member's desk and letting them know they are doing a good job on a current project can do wonders for morale and help to increase retention. Communicate any new company policies or initiatives to all employees to be sure that everyone is on the same page. Having team members share what they have learned at a recent conference or training workshop will not only increase the amount of information they will retain. Ravi the HR Manager has given the responsibility to design strategies for retention. It is now more important than ever to retain the team members an organization currently has and to choose the right team members when hiring decisions are made. The following is a short list of useful tips and hints to help increase levels of employee retention in your organization.any team member wants to feel that he or she is being paid appropriately and fairly for the work he or she does. Put them to work for you!  Get the right people on the bus .do not wait for an annual performance evaluation to come due to give feedback on how an employee is performing. communication . There are costs associated with hiring besides talent crunch. Suggest few components and strategies to achieve retention Ans: The implications for employers should be clear.it is incredibly important to include team members in the decision making process. Good to Great. we have found this to be the biggest predictor of future employee retention. especially when decisions will effect an individual's department or work team. Be sure to research what other companies and organizations are offering in terms of salary and benefits. It is also important to 6 . By far. Shortening the feedback loop will help to keep performance levels high and will reinforce positive behavior.the highest percentage of information retention occurs when one shares that information with others. They are investing on the candidates by training them and after some time employees are leaving the organization.  Include employees in decision making . However communication couldn't be more important in the effort to retain employees. communication.in his book.  Shorten the feedback loop . This can help to create a culture of employee involvement and will generate new ideas and perspectives that top management might never have thought of. Most team members enjoy frequent feedback about how they are performing. Feedback does not necessarily need to be scheduled or highly structured.  Allow team members to share their knowledge with others . Be sure that team members know their roles. job description. Facilitating knowledge sharing through an employee mentoring program can be equally beneficial for the team member being mentored as well as the mentor. Nobody wants to feel that they are being left out of the loop. but also lets a team member know that he is a valuable member of the organization. Hiring individuals who are truly fit to succeed in the position for hire will dramatically increase the chances of that employee being satisfied with his or her work and remaining with the company for an extended period of time. Jim Collins talks about the importance of having the right talent on the organizational bus.  Offer a competitive compensation package . The Management is highly concerned about the attrition.communication has become so heavily stressed in the workplace that it almost seems cliche.

live up to their word and promises. If an employee appears to be bored or burned out in a current position offer to train this individual in another facet of the organization where he or she would be a good fit. not their jobs.research what the regional and national compensation averages are for that particular position. and friendly . All employees want to have supervisors who are respectful.  Recognize team members for their hard work and let them know they are appreciated this can be one of the single greatest factors affecting employee retention. team members will find this out and look for employers who are willing to offer more competitive compensation packages.nothing can be more frustrating or discouraging for an employee than the lack of a clear understanding of what is expected of him on the job. Failure by supervisors and management to provide this can cause an employee to start looking for greener pastures. and provide an environment where the employee can grow and succeed. The so-called "good ole' boys club" can create a noxious organization culture and foster resentment among team members. in all levels of an organization. Even worse outright anger can occur when a team member receives a negative performance evaluation based on expectations and job duties that he or she was unaware of or unclear about.  Fair and equitable treatment of all employees . This culture will only get worse and can create a devastating exodus of valued team members.one of the surest ways to create animosity and resentment in an organization is to allow favoritism and preferential treatment of individual team members. courteous. Other options might include a mention in the company newsletter for outstanding performance or gift certificates to a restaurant or movie theatre . Often time a short e-mail or quickly stopping by a team member's desk and saying "thanks" can do wonder for morale. You can be sure that if your compensation package is not competitive.that is a given.  Balance work and personal life . Stress the importance of balancing work and one's personal life. wants to know that their efforts are appreciated and recognized. Everybody. but people leave people.  Clearly define what is expected of team members .offer opportunities for team members to acquire new skills and knowledge useful to the organization.it has been said so often that it is almost cliche. Be sure to treat all employees equally and avoid favoritism at all costs. Small gestures such as allowing a team member to take an extended lunch once a week to watch his son's baseball game will likely be repaid with loyalty and extended employment with an organization.the possibilities are endless. Nobody wants to feel stuck in their position will no possibility for advancement or new opportunities. deliver timely feedback on performance. When work begins to put a significant strain on one's family no amount of money will keep an employee around. This can be as simple or as extravagant as a supervisor may desire. 7 . In a performance driven workplace a lack of clarity regarding job duties and expectations can cause fear and anxiety among employees who are unclear of what is expected of them. But more importantly team members want supervisors who set clear performance expectations.  The quality of supervision and mentorship .family is incredibly important to team members.  Provide opportunities for growth and development . Supervisors play the largest role in a team member's development and ultimate success within an organization.

Ans : Organizations have integrated most of the key human capital functions . is all about jobs: what they are worth in the marketplace. Think about it for a moment. how they stack up against one another internally. here: HRIS and emerging talent management software applications allow us to collect and store this information – if we take the time to collect it. planning employee growth and development. Yet. experience beyond the current job or even the current employer. of course. A talent management strategy based on compensation data means: • Job offers tailored to the specific value an individual brings to the organization • Career paths within and across job families that are anchored to actual market valuation of the knowledge. training employees. and not simply merit increases from a matrix • A talent management system that monitors the pay competitiveness of high potential employees. The Benefits of Using Compensation Data in a Talent Management Strategy Many of the components that make up a talent management strategy – acquisition and mastery of knowledge.Assignment Set. skills and abilities. requires good compensation data.1 Write down the steps for compensation based talent management. I believe that the most common disadvantage of talent management programs is that they exclude compensation as a prominent factor in employee development and retention.like recruiting. employee development and succession planning – into their talent management strategy. they can place a market value on knowledge. Talent Management vs. There is no reason why employee market valuation must be done exclusively on a job-centric basis. it is imperative that employee market valuations also be done for individual employees. Given the mandate of attracting and maintaining top talent. and new certifications they’ve earned. helping to identify flight-risk potential before a competitor attempts to lure your future talent away Bringing Talent Management and Compensation Management Together If compensation data has the potential to play such a vital role in talent management. aligning employee performance plans with corporate goals. specialties. it doesn’t mean that’s the only role compensation can or should play. That said. what grades or bands they fall into. Your talent management strategy is all about recruiting employees. abilities and competencies – are important influencers of compensation. 8 . and identifying employees with potential then charting a course to help them realize it. and what target incentives and equity compensation are associated with varying levels of jobs within the company. Talent management strategies are our friends. This. education. Once organizations know how to build a talent management strategy that takes compensation data into account. most are missing one other function: compensation. why have so few companies taken the steps necessary to bring it about? One of the primary reasons is that market valuation of individual employees requires more compensation data about each employee: their skills.2 (30 Marks) Q. Compensation management. by contrast. skills and abilities that differentiate one level in the career hierarchy from the next • Merit systems that are based on the target market value of the employee so managers can determine the right competitive compensation package. Compensation Management I’d argue that there is – compensation management is job-centric whereas all other talent management functions are employee-centric. skills.

Step 4: Screening and Assessing Candidates Are you going to invest heavily in educating managers in behavioral interviewing? Are the recruiters going to be the main screeners. It takes time and an accumulation of messages to be effective. To ensure that your organization has a chance at hiring the best people ? and to successfully operate in a global.2 What are the 5 steps to strategic talent planning? Elaborate. as opposed to an annual event. "What makes your company different or unique?" or "Why would I want to come work for you?" Not only should you have answers to these questions. Getting people aware of your organization is a tough job. This has to be an organization-wide effort. but maintain the capacity and skills to tap passive candidates. without the valuation component offered by employeecentric approaches. a talent management strategy will lack a critical financial metric for making pragmatic decisions. It is mostly reactive. and few recruiters have the time or charter to look forward more than a few weeks. recruiting is a tactical operation ? a series of things that take place that result in qualified people getting hired. Ans: Recruiting rarely is based on any sort of strategic plan. It is an evolving process. compensation data is relegated to the sidelines of the talent management systems. Q. web presence (which is essential). while at the same time being educated and aware of the talent supply situation from all the sources that are available. your own web site and also develop methods to keep in touch with potential candidates that you have no current position for but might have at some later time. It means deeply understanding the organization's business goals and the competitive environment the organization functions in. Make sure you are using referrals from current employees. web-based search. however. It is a combination of understanding and predicating demand. more traditional job-centric compensation management processes. Without the employee-centric market valuations. but you should also make sure your advertising. It requires having a consistent communication process as well as a plan to raise general awareness through advertisements. your network of professionals. and overall corporate advertising support this image. Embrace active candidates who are responding to your brand and image-building messages. not a replacement for. Step 2: Image and Brand It is not true that if you build a great strategy or a great organization." You have to be able to answer questions like. This step needs to be far more than simply listing the jobs projected in the annual budgeting process and factoring in turnover. or by getting listed as a "best place to work. For most organizations. people will necessarily flock to your doors. Step 3: Sourcing Methods Develop a multi-faceted sourcing strategy. Decide based on past experience what works best for you in locating candidates. and then build those sourcing channels to the max. promotions. or will you use testing and other tools? What role will 9 .Market valuation of individual employees is a companion process. and is the most dynamic and critical stage of any strategic process. Here's a quick overview of the five essential first steps needed to put this plan together and to begin making it operational:   Step 1: Talent Plan Workforce or talent planning is the first and hardest step. organizations ? you will need a strategic plan coupled to appropriate resources and tactics. One or two advertisements or a handful of posters won't do it. At the same time. competitive environment.

Make sure that whatever systems you choose fit your strategy and make economic sense A few other things to keep in mind: • Make sure all managers and recruiters have a simple system for deciding on a candidate. A focus on automating screening to some degree reduces the volume of candidates and actually raises candidate satisfaction. and make sure your selection criteria are clear to avoid slowing down the process. but also aid in complex negotiations that fall under the human resource umbrella. Human Resource Information System (HRIS) merges human resource management with information technology to not only simplify the decision making process. Whether it concerns the hiring and firing of employees or whether it concerns employee motivation. Local offices should participate in that process and have great autonomy on the day-to-day stuff. They can supplement broad image and branding activities with local advertising within the bounds of an agreement you all make with one another. work out a system for who owns what. • If you are a decentralized firm. they are not yet generally available or optimized for recruiting. ? Ans : In today's corporate world human resources has come to play a very critical role in a business. Wouldn't it be wonderful if you could actually stay in touch with those people and let them know when there is an open position? That's what CRM (candidate relationship management) systems can do. Eliminate unnecessary approvals. Step 5: Market and Communicate! Candidates want to be in the know about their status and prospects. But ask your ATS vendor what they doing about this and urge them to provide you the tools you need to effectively keep qualified candidates interested in you.3 Think of a situation in which you as team leader have to explain why HRIS or IT is important in talent management and how it helps an organization. and performance analysis. and on-boarding. interviewing. As you know. To make a human resource department more effective and efficient new technologies are now being introduced on a regular basis so make things much simpler and more modernized. and what are the differences between what you do and they do? This is an area where there can be great improvement with reasonable effort. but where things are still done mostly the way they have always been done. the Human Resources department of any organization now enjoys a very central role in not only formulating company policies. They seek out feedback and information. Probably all the people you need at one time or another sent a resume or expressed interest. Supplement your answer with suitable examples. If you all agree together then the areas of dispute will be limited. recruiting. These initial steps and processes are what enable the back-end activities of scheduling. Unfortunately. speed is the real differentiator today.the Internet play. The basic advantage of a Human Resource Information System (HRIS) is to not only computerize employee records and databases 10 . making offers. but also in streamlining the business process. if any? Are you going to look into using web-based tests? How much will you rely on candidates screening themselves out or in? What role does the hiring managers play in screening and assessing. The rule I use is that the central or corporate function should set standards and establish corporate-wide systems. They were most likely told that there were no current openings. payroll. Q. One of the latest human resource technologies is the introduction of a Human Resources Information System (HRIS). and the recruiter/manager who moves the most quickly will usually get the candidate. this integrated system is designed to help provide information used in HR decision making such as administration. training. but you will also need to develop systems to communicate with candidates personally and to send out newsletters and emails. Your organization's website is an invaluable tool.

This system reduces the long HR paper trail that is often found in most HR divisions of companies and leads to more productive and conducive department on the whole. Employee benefits are very crucial because they help to motivate an employee to work harder. and if there are any improvements that can be made to make an employee feel more secure. A Human Resources Information System (HRIS) thus permits a user to see online a chronological history of an employee from his /her position data. sick leave and so on. Furthermore. It also gathers information such as employee attendance. time and labor management. A Human Resource Information System (HRIS) also has advantages in HR management because it curtails time and cost consuming activities leading to a more efficient HR department. utilising HRIS for your benefits administration can be useful from an employer’s point of view as it will enable you to keep track of which benefits are most frequently used. Many HRIS companies provide solutions whereby an employee can view information regarding their attendance. This is particularly the case for larger organisations. your provider will be able to guide you through the process. some HRIS systems allow employees to view their performance and review their progress. In time and labor management a Human Resource Information System (HRIS) is advantageous because it lets human resource personnel apply new technologies to effectively gather and appraise employee time and work information. These four basic HR functionalities are not only made less problematic. 11 . Similarly. showing them details of the benefits to which they are entitled. payroll. With updated information this system makes the job of the human resource department very easy and simple as everything is available on a 24x7 basis. as well as offering information on the relative returns on each of these investments. this is very useful if you are operating an incentives scheme. generating automatic periodic paychecks and handling employee tax reports. The advantage of a Human Resource Information System (HRIS) in payroll is that it automates the entire payroll process by gathering and updating employee payroll data on a regular basis. and all the information is just a click away. rather. the human resource department is able to keep better track of which benefits are being availed by which employee and how each employee is profiting from the benefits provided. to personal details. but they are ensured a smooth running. calculating various deductions and taxes on salaries. By using a Human Resource Information System (HRIS) in employee benefits.but to maintain an up to date account of the decisions that have been made or that need to be made as part of a human resource management plan. However. employee benefits and HR management. but each of these will require some customisation in order to ensure that they are fulfilling the needs of your organisation. Furthermore. payroll records. This is particularly useful for voluntary benefits schemes as it removes the necessity for any action on the part of the employer. without any hitch. and benefits information. they can log in to a ‘portal’. HRIS systems can be hugely useful. When administering a benefits system. most reputable commercial HRIS providers will offer personalised support in the deployment phases. It lets an employee's information be easily tracked so that it can be assessed on a more scientific level whether an employee is performing to their full potential or not. Installing and administering an HRIS system can be a complex task. There are a huge number of HRIS solutions available. meaning that there should not be any necessity to employ a contractor to do the job for you. The four principal areas of HR that are affected by the Human Resource Information System (HRIS) include. or those that choose to operate a voluntary employee benefits scheme.

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