Talent Management

Talent Management Process (Also called Human Capital Management Process)

Note: In the exam in JAGSOM, the term talent management and Talent Acquisition will be used
interchangeably. Handle it appropriately.

Understanding Business

Business evolves because of:

Vision Mission Strategy Structure Systems Processes

Corporate Strategy
Business Strategy Operations system
Operations strategy Fin system
Fin strat Activities
HR systems
Mktg Strategy Mktg Systems
HR strategy IT sytesms 
IT strategy etc…. Activities are grouped and called jobs. Activities lead to implementatio

Strategy

It is the key to business success. People use the term strategic goals. It is nothing but converting the strategy
into goals.

Strategy has two parts: 1) strategic planning and 2) strategic implementation. Strategic implementation is
done by doing appropriate activities and jobs.

To implement business strategy, we need operations, money, people etc. Strategy related to HR is called
strategy. HR strategy is nothing but the plan of getting appropriate people capable of doing jobs that help to
implement business strategy.

Staffing

You must have studied ‘Principles of Management. It has the following steps: planning, organizing, staffing,
directing, controlling, coordinating, and budgeting.
 The human capital management process

It is how we handle the ‘staffing’ mentioned above.

What is manpower planning?

It is planning the number of people with appropriate competencies to implement the strategy.

Step 1: Manpower planning

It means how to plan the manpower required to implement the business strategy through HR strategy. So,
first decide the business strategy, then the HR strategy, and then plan the manpower to implement the HR
strategy. Implementing strategy is done by activities and jobs. Jobs means a collection of related activities.
For example, in a recruitment job, you have to undertake the activities of deciding the job description, job
specification, advertisement etc.

Job Analysis. It is the process of analyzing the job with a view write a job description and job specification. A
JA leads to generating Job Description (JD) and Job Specification (JS). Both these are required to advertise
for a job. Details to be included in an advt consisting of JD and JS is given in the diagram below.
 Job Analysis

Job Description (JD) Job Specifications (JS)

Job title Qualification (e.g., MBA)
Job summary Experience (e.g, 3-6 yrs)
Location Training (trained in accounting o
Reporting to Skill/skill (Now usually called competencies. Use th
Responsibilities (what youThe
should do ascondition
working part of the job.night
(e.g., It is similar to responsibilities
shift, work from home, travelbut aetc.
little different; e.g., respons
Emotional
Job duties (e.g., prepare daily report, network etc.)characteristics (e.g,, work under pressur
Machines to be used; e.g, proficiency in computers, Sensory demands (high
lift operations etc.) listening skill, high mu
Hazards or dangers if any (e.g., fire threat, fumes etc.)

Job evaluation – comparing the worth of one job in relation to other jobs in the organization or market and
so on.

A little more detail on HR Strategy

HR strategy means ensuring adequate competencies to meet the strategic needs of the organization. In
other words, the implementation of strategy is done through competencies. Competencies means
knowledge, skill, and attitude to do a job.

Jobs may be performed by people or through automation, but the job must be done. To do a job we
need some knowledge, skill, and attitude. When it comes to machines or automation, the attitude has
no importance, but knowledge and skill still have importance. So first identify the job and fix the
 competencies. This leads to determining how many people we need to do the job. In a company,
there is only 1 CEO. Hence the competencies for the job of CEO are required only by 1 person. But
there are many managers or drivers or program testers. So, we need many people with competencies
for these. You can count them and list them. We will get a list of jobs and competencies. So, fixing the
number of jobs is what we call manpower planning. This is the first step.

Step 2: The second step in HR process is Talent Acquisition (Often called recruitment and selection)

We need to take people with appropriate competencies in adequate numbers as we discussed in Step 1.
This is done by recruiting and selection. After you select, you must onboard them or get them to enter
the company, join and start doing the job. Nowadays we use the term talent acquisition to cover
recruitment, selection, and onboarding. It is just like attracting you to join JAGSOM, selecting and then
onboarding you through mentoring and induction modules.

 Recruitment means attracting enough qualified people to attend an interview. To do this we

have to advertise through various mediums, references etc. You must tell them the benefits of
working for a company, what is there in it etc. to attract people to apply. You also need to tell
what the person should be like, qualifications, competencies etc., so that adequate people
apply. Success of recruitment means adequate qualified people applying for a job.

 Selection. It is the process of finding out competencies and fit for the job and ends in giving an
offer and the candidate accepting the offer.

 Onboarding means all actions after selection till you join and commence the job.

Step 3. Third step is Compensation or Total Reward Management.

It is the process of fixing various pay, allowances and perks of the person selected at the time of joining
and thereafter. It includes monthly salary payments, arranging the provident fund, insurance, travel to
the workplace, claims for any expenses related to business and so on. When the compensation is paid
on a daily or weekly basis, it is called wages and if done on monthly basis, it is called salary. Of course
this is done during the selection process before offer is sent the first time. But it goes on throughout the
life cycle of an employee.
Step 4. Performance Management (PM)

After you join and start working you will be assessed for performance, you are told about your
performance, and provided methods to improve your performance. Two terms are used in PM. The first
one is performance appraisal. It is the method of appraising or assessing your performance. It can be
done by various methods such as ranking, rating, and more complex methods which we will see later.
The term performance management is used nowadays instead of performance appraisal or performance
assessment which were the terms used earlier. It means appraising you and then managing the
performance through performance dialogue, goal setting, training, providing support, and so on. So, an
appraisal is a part of PM. PM ends with increments, promotion, goal setting for the next year and so on.

Step 5. Learning and Development

Earlier, this used to be called Training and Development. Often training has a negative connotation as if
it was perceived as a forced activity. So, the term has been replaced as learning and development. In
learning, the individual is responsible to do the learning.

The term training or learning refers to making up the competencies to do the job for which you are
hired. The term development is used for preparing you for the next higher job.

Step 6. Retention and branding

You want your best people to keep working for you. So, you create a retention plan. You can do this by
making a plan to motivate, promote, do job rotation, give employees stock options etc. A good retention
plan also leads to branding and perception. Just like branding of b-school is necessary for getting good
students, branding of a company is also important to get good employees.

Step 7. Succession Plan

People are not immortal nor are people married to an organization. So, people will leave. When the job
is very important, it is necessary to plan who will succeed when a job incumbent leaves, retires, dies etc.

Step 8. Exit Management

People will leave, retire etc. as discussed above. It is important to manage this. An employee who leaves
and talks highly of the organization is an asset and an employee who leaves and bad mouths you are a
liability. This is more so today with the power of social media, Glassdoor etc.
Step 9. Perception Management

Most textbooks will not include it as a component of employee life cycle or HR process. It is a step that is
relevant to all steps and applicable to all steps. The success of Talent acquisition, compensation etc. are
based on perception. We feel the grass is greener on the other side always. So, employee perception
management is the key to successful employment of people.

Step 10. Employee Engagement

This implies creating an engagement with the employees. Engaged employees are more productive and
hence, this has been a focus area of late. It is also applicable to all stages or steps of Human Capital
Management. Simply put engaged employees show vigor, energy and dedication to the company and
the job. It can be done by many activities, team work etc. You must have observed this in RSH, the case
we did.

Step 11. Job Enlargement. When you have many competencies, you feel that the job you do is too little.
So, you will get bored. If a company gives you a greater job role and include more activities and
responsibilities you feel good. This is called Job Enlargement.

Step 12. Job Rotation. It may be boring to do the same job all your life. So, you can be rotated in your
job. For example, many Marketing and Finance Managers take up HR jobs. Mohandas Pai of Infosys is an
example of how a top Finance head became HR head.

Human Capital Management Process

 HUMAN CAPITAL MANAGEMENT PROCESS

Business Strategy HR strategy HR planning

Retention and branding Talent Acquisition and onboarding

Succession Planning

Perception Management
Employee Engagement Total Reward
Job Enlargement
Job Rotation

Exit Learning and Development

Performance Mgmt

Talent Acquisition Process

Talent Acquisition Process

Job Analysis if new job, if old refine JD and JS
Job Description (JD)
Advertise Receive Application
Job Specification (JS) Recruitment

Selection
Intermediary
Negotiations Interview – Technical, HR tests GD, case study etc.
Short list for selecti
Preliminary Tests

Reference check Offer Acceptance Onboarding

Various terms in HCM

 From an examination point of view, you should know the following terms:
 Stages in HCM, steps in HCM, HCM process etc. mean the same.
 Also, a term is used ‘employee life cycle’. Much like the student life cycle, it means managing
various steps in the life of an employee in the organization.
 The term employee life cycle involves the experience of the employee at each stage. That is why
this term has gained importance.

The Employee life cycle consists of the following stages:

1. Recruitment and selection

2. Onboarding
3. Mentoring and training for the job.
4. Doing the job.
5. Employee engagement.
6. Total reward planning and delivery.
7. Performance management.
8. Job rotation.
9. Job engagement.
10. Talent management and promotion.
11. Exit

Talent Management Process

Talent management process is the process of having the right people for the right job at the right time. It
involves (see diagram above also):

 Job analysis
 Job description and job specification to include deciding o the competencies for the job.
 Advt of vacancies.
 Selection
 Onboarding
 TALENT MANAGEMENT vs. HUMAN CAPITAL MANAGEMENT

The terms talent management and Human capital management are often used interchangeably
by some. In strict HR parlance, it is NOT correct. Human capital management relates to
managing all people in the organization while talent management refers to managing the
exceptional talent intend to create a talent pipe line for succession to leadership roles. Keep this
in mind. However, if the term talent management is used in the exam, treat it as Human capital
management.