MBA 405: Talent management

Faculty name: Ms. Neetu Deptt. of mgmt studies



• UNIT-I Introduction – Concept of talent management, strategic importance of talent, talent imperatives, elements of talent management, workforce diversity and talent management, role of HR in talent management UNIT-II Talent Procurement and Deployment – Identifying talent needs, sourcing talent; developing talent, deployment of talent, establishing talent management system, talent multiplication UNIT-III Talent Retention – Cost and consequences of talent departure, diagnosing causes of talent departure, measuring and monitoring turnover and retention data, designing engagement strategies, drivers of engagements UNIT-IV Return of Talent – Measuring contribution of talent to business performance, talent metrics, measuring human capital investment, transformation and reorganization of HR, new imperatives, talent forces of tomorrow






What is Talent Management?
The purpose of TM is to ensure that the right supply of talented workforce is ready to realize the strategic goals of the organization both today and in the future Organization‘s efforts to attract, select, develop, and retain key talented employees in key strategic positions.
Talent management includes a series of integrated systems of  recruiting,  performance management,  maximizing employee potential, managing their strengths and developing  retaining people with desired skills and aptitude



Talent Management
• TM introduced by Mc Kinsey consultants, late 1990‘s • TM is identified as the critical success factor in corporate world • TM focuses on – differentiated performance: A, B, C players influencing company performance and success – identifying key positions in the organization !!! Surveys show that firms recognize the importance of talent management but they lack the competence required to manage it effectively

character. knowledge. talent is the sum of • a person‘s abilities.What is Talent? According to McKinsey. attitude. • skills. drive. • judgment. PDM MBA 6 . experience . • intelligence. • his or her intrinsic gifts. • his or her ability to learn and grow.

Who are Talented People? • They regularly demonstrate exceptional ability and achievement over a range of activities • They have transferable high competence • They are high impact people who can deal with complexity (Robertson. Abbey 2003) PDM MBA 7 .


Why Organizations Need Talent Development? • To compete effectively in a complex and dynamic environment to achieve sustainable growth • To develop leaders for tomorrow from within an organization • To maximize employee performance as a unique source of competitive advantage • To empower employees:  Cut down on high turnover rates  Reduce the cost of constantly hiring new people to train PDM MBA 9 .

Talent Management Model • • 1. (Lance and Dorothy Berger. 2. values. expectations and elements of the desired culture and the business excellence should be embedded in HR systems as selection criteria. expectations) with TM strategy and TM system. PDM MBA 10 . 2011) The values. competency definitions. performance and promotion criteria and development processes. – – There are different approaches to talent management in organizations A successful TM model has to link TM creed (culture. 3.

The Talent Creed • ―A TM creed is the set of core principles. values and mutual expectations that guide the behavior of an institution and its people‖ • It describes in general terms what types of people are expected to work in the organization and what type of a culture is desired to achieve success PDM MBA 11 .

train. 30 %) 2) Assess your employees and identify the high performers (classify according to their current and future potential) 3) Retain key position backups 4) Make appropriate investments (select. develop. reward) PDM MBA 12 .The Talent Strategy Describes what type of people the organization will invest in and how it will be done Besides the specific elements of their creed. the talent strategy of all high performing organizations should have these directives: 1) Identify key positions in the organization (not more than 20.

greatly exceed expectations (3-5%) Keepers – exceed expectations (20 %) Solid citizens.Assessing the Employees Superkeepers.below expectations (2-3 %) (Berger and expectations (75 %) Misfits. 2011) PDM MBA 13 .

compensate at below market average (Berger and Berger. promote rapidly Solid citizens. promote very rapidly Keepers –receive about 25 % of all the resources.receive about 68 % of all the resources. need very high recognition. compensate at the market level or just above Misfits.Allocating Investments in People Superkeepers.receive about 2 % of all the resources for some. 2011) PDM MBA 14 .receive about 5 % of all the resouces. need high recognition. need recognition. compensate more than the pay market. compensate much more than the pay market.

Talent Management System Implementation program of the talent strategy which has a set of processes and procedures (1) assessment tools (2) multi-rater assessment (3) diagnostic tools (4) monitoring processes If the management is not willing to use assessment in their organizations they can’t do talent management PDM MBA 15 .

Assessment Tools for TM The five assessment tools should be linked to ensure that each assessment is consistent with the four other evaluations • Competency Assessment • Performance Appraisal • Potential Forecast • Succession Planning • Career Planning PDM MBA 16 .

Multi-Rater Assessment • Employee. Source of potential new assignments in the same or other function PDM MBA 17 . The key link in the vertical succession and career plan • Boss’s peer group. The primary assessor • Boss’s boss. The owner of the career plan that is aligned with the succession plan • Boss.

Keeper Key position backups. SuperkeepersTM are employees whose performance greatly exceeds expectations. Positions with more than one replacement for an incumbent. Determine whether it will transfer someone from the surplus pool. Positions without a qualified backup. Every key position should have at least one backup at the ―Keeper‖ (exceed job expectations) level.Diagnostic Tools SuperkeeperTM reservoir. Surpluses. While ostensibly a positive result of the talent management process. develop alternative candidates. Voids. or recruit externally. who inspire others to greatly exceed expectations. and who embody institutional competencies. PDM MBA 18 . it can be a potential source of turnover and morale problems if the replacements are blocked by a non-promotable incumbent and/or there is no realistic way most of the promotable replacements can advance. The ―insurance policies‖ that ensure organization continuity.

or be terminated. Give opportunity to improve. receive remedial action. Those not meeting job expectations (measured achievement or competency proficiency). PDM MBA 19 . The time frame should be no longer than six months.Blockages. Problem employees. Non-promotable incumbents standing in the path of one or more high-potential or promotable employees.

Monitoring Processes Evaluate the results of talent management system on a regular basis for • quality. • timeliness and • credibility PDM MBA 20 .

customer orientation. personal characteristics that are associated with or predictive of excellent job performance. teamwork. Examples – Adaptability. innovation etc. skills. behaviors. leadership.What is competency? Competencies are the core elements of talent management practices They are the demonstrable and measurable knowledge. PDM MBA 21 . decision making.

be part of. Acts to build trust. and utilize teams to optimize results.. encourage others.overcomes obstacles.. reward. creates a results-oriented environment. and confidence with them Creativity/Innovation Generates novel ideas and develops or improves existing and new systems that challenge the status quo. Interpersonal Skill Effectively and productively engages with others and establishes trust. credibility.. accepts responsibility. takes risks.Competencies and Definitions Action Orientation Targets and achieve results. 2011) PDM MBA 22 . and encourage innovation Teamwork Knows when and how to attract. inspire enthusiasm.. and help resolve conflicts and develop consensus in supporting higperformance teams (Berger and Berger. develop.

competencies focus on outcomes)  Integrates HR strategy with business strategy –both focus on outcomes PDM MBA 23 .Why Competencies? The challenge is to identify which competencies the organization expects to see in their people The starting point of the model is the creed (values. expectations) and the business strategies  Through a competency model the organization sends a consistent message to the workforce about ―what it takes‖ to be successful in the job  Helps employees understand what helps drive successful performance  The Competency Model approach focuses on the ―How‖ of the job. principles.  Competency model is behavioral rather than functional. focuses on the people rather than jobs  Competency models are outcome driven rather than activities (Job descriptions focus on activities.

PDM MBA 24 .Why Competencies? The competency model serves as the foundation upon which all workforce processes are built. results of one TM system is used as the input data for the following TM system. Competencies promote alignment of talent management systems by creating a common language that enables these systems to talk with each other! That is.

career planning and development – Functional (technical)competencies (specific for each job family) PDM MBA 25 .The Competency Model • The Competency Model identifies usually three groups of competencies: – Core competencies for the entire organization to shape the organizational capabilities and culture required to achieve the strategic goals(5 or 6) – Leadership competencies for the management teams of various levels for selection.

Developing a Competency Model  Use commonly available ―ready to use‖ models with small adjustments for your organization  Develop own competency model with help of consultants  Behavioral Benchmarking compare superior performers with other best people in the organization and in other benchmark companies PDM MBA 26 .

mission and strategic plan of the organization  Verify the competencies with a larger sample of the organization PDM MBA 27 .Developing Organization‘s Own Competency Model  Overview of current tasks and responsibilities  Come to agreement about what successful ―outcome driven‖ performance looks like  Review of competency library and selection of ―must haves‖ for the position  Rank top competencies as demonstrated by exemplary (superior) performers  Identify of those competencies that align with the vision.

Choosing Competencies Before choosing competencies in an organization following requirements must have been completed: • Establishment of vision. responsibilities and outcomes expected from each position • Identification of the superior (exemplary) performers • Satisfactory competency library PDM MBA 28 . values • Strategic business goals • Identification of the tasks. mission.

reward their talent pool to gain their commitment and contribution. Retention is also essential to gaurantee future alignment of the talent with the right key positions PDM MBA 29 . developing your talent is not enough.Talent Management TALENT=COMPETENCE+COMMITMENT+CONTRIBUTI ON • Being competent is not only enough to be a talent • The competent person should be committed to the causes and goals of the organization • And should be able and willing to contribute to the success of the organization So. the organizations need to take all the measures to motivate.

Talent Management Model PDM MBA 30 .

Businesses should identify – Job roles – Spesific objectives – Competencies • Capabilities to meet the expectations • Work environment – Managerial support – Rewards and recognition – Removing barriers • Feedback systems needed to – Focus – To keep on track – Develop PDM MBA 31 .Talent Management Model • Expectations for the future.

Talent Management Cycle PDM MBA 32 .

. Results Personal Development Activities Assessing the Emloyees A B C D Assessment Career Potancial Candidates Committees and Succession Lists Approval of the Lists Development Talent Development Programs PDM MBA January .March April May on.Talent Management Process Organization Analysis -Job descriptions -Job spesifications Analysis Potential Candidates Performance Evaluation Buss..... 33 .

training) • Linking compensation with the program (reward and motivate) • Targeting culture as an important driver of TM programs • Secure senior executives‘ commitment to make the talent management model work • Evaluate the results of talent management system on a regular basis PDM MBA 34 . mentoring.Structure of a Talent Management Program • Building Block 1: Identification and assessment of competencies • Building Block 2: Performance appraisals • Building Block 3: Succession and career planning • Development of talent (coaching.

assessments of potential. and replacement planning (the core elements of talent management) should be linked to each other. career planning. • Stand alone functions are destined to end with failure PDM MBA 35 .Integrated Functions of TM • Performance appraisals. competency evaluations.

HR and TM HUMAN RESOURCES MANAGEMENT o Broad Scope (entire employees) o Emphasize egalitarianism oFocus on administrative functions oTransactional oFocus on systems with silo approach TALENT MANAGEMENT oFocus on segmentation (key group of core employees and key positions) o Focus on potential people oFocus on the attraction. development and retention of talent oFocus on integratation of PDM MBA 36 HR systems .

PDM MBA 37 .The Emerging Talent Management Imperative.

committed working environment Succession planning PDM MBA 38 .Why is Talent Management important? • • • • • Recruitment and retention Getting the best of all employees Helps to deliver corporate objectives and plans Productive.

Recognize talent Change Organization Culture Attracting Talent WAYS TO MANAGE TALENT Managing Succession Selecting Talent Retaining Talent PDM MBA 39 .

Some beginnings… • Infosys has a rock band that plays at their amphitheatre and at outside concerts • Organisations have started initiatives like – Film clubs that hold screenings every month. – Knowledge sharing forums – Job referral programmes such Frito Lays‘ ‗Bring a Friend to Work‘ – Blogs PDM MBA 40 .

tele and video conferences. Greece: Lunch with CEO at a upmarket restaurant IKEA. Brown Bag Lunches etc. USA: “Express Yourself Postcards” to CEO Forbes Marshall: Monthly Meetings. Quarterly Video Magazine PDM MBA 41 • • . to ensure two way communication • Phillips Software: “Express Yourself” and “Watch this Space” boards for employees to write their views Elais. employee surveys.Cont… • Infosys: widespread use of intranet.

Cont… • Performance Management • FedEx: “Professional Development Guide”. right placement or outplacement for non-performers PDM MBA 42 . 90% of senior positions filled thru internal promotions • Aditya Birla Management Center: Common form and scale for all. Balanced Scorecard (People-Service-Profit) based approach to employee goals.

Cont… • • • • • • • • • • • • Performance Management RMSI: transparent system allows all employees to calculate their own bonus Sapient: Career Management Program: 70% turnaround rate thru PIP Honeywell: Self assessment of competencies. Higher education assistance to all employees. Total Talent Management process for assessing growth potential. use of 360 degree for senior managers PDM MBA 43 . Annual Appraisal survey Adobe: Job rotation and alternative career path Godrej Consumer Products: Normalization by Leadership level.

The Corporate Challenge Ahead • Looking beyond the Executive for talent • How do we assess our Talent Management effectiveness • What tools will we use to embed good practice • Balancing the development of individuals and the needs of the organisation • Developing the skills for Talent Management PDM MBA 44 .

PDM MBA 45 .

coaching. on-the-job training and project-based learning leads to effective individual and team performance (66%) • Promoting mentoring. social networking and collaboration brings about knowledge sharing and high morale (61%) • Implementing succession planning and career development improves brand loyalty and quality of services (56%) • Measuring workforce performance outcomes increases retention of high performers (52%) PDM MBA 46 .Talent Management Strategy Outcomes Impact of Talent Management: • Integrating talent management strategies and processes brings better financial performance (73% of respondents) • Focusing on competency development.

Onboarding and Employee Performance • Financial Impact of Talent Management on Recruitment and Retention: • • • • • Reduces staffing costs Reduces staffing cycle times by 50-70% Reduces vacancy rates by up to 50% Reduces first-year turnover and overall turnover Improves productivity PDM MBA 47 .Talent Management Transforms Healthcare Recruiting.

What does good Talent Management need? • Leadership • Fairness • Strategy • Comprehensiveness PDM MBA 48 .

• The changing workplace • The ethical dimension • Creating a retentive organisation • An understanding of employee behaviour – What do they seek? – What makes them stick? What makes them leave? • Developing an employee value proposition PDM MBA 49 .Few Challenges…….

9% 25 to 34 10% 0 16 to 24 Total 16-24 25-34 35-44 45-54 55+ PDM MBA Source: U.Wage inflation and attrition Can these be an alternative labor market ? Labor Force Make-Up Percentage Change By Age Group (projected 2002-2012) 30% 2002 2012 Labor Force Percentage Change By Age Group (projected 2002-2012) Labor Force Growth Rates Percentage Change (projected 2002-2012) 65 + 55 to 64 19% 44% 11% 35 to 44 8% 7% 12% Total White Black Hispanic Asian 12 % 8.5 % 19.6 % 50.Understanding Talent Management & The Global Scenario Global Talent Scenario .3 % 32.Demographic shifts in the workforce Developed Markets .8 % 20% 45 to 54 .S. Bureau of Labor Statistics 50 .Aging Workforce + Less skilled workforce = TALENT CRISIS Emerging Markets .

– Companies migrating to developing countries.what is likely to happen – Automation. innovation. – Higher growth rates in emerging markets adding to demand.Understanding Talent Management & The Global Scenario Global talent scenario. high-yield based jobs in developed Markets. reengineering. – Out sourcing of work from developed to emerging markets. – Unmanaged immigration to developed countries – Technology and information penetration adding to transparency & instability – Diminished ambitions and enhanced expectations. – Birth of entrepreneurial opportunities but scalability a challenge Talent Management a GLOBAL challenge: Talent Crisis How to WIN in this environment? 1) INNOVATION 2) MOMENTUM PDM MBA 3) TECHNOLOGY 51 . dissatisfaction and instability.

attract & retain the best talent. PDM MBA 52 . – Identify and develop LEADERS at all levels. – Create “great places to work” . – Direct the positive energy of people to the right areas.Understanding Talent Management & The Global Scenario Why Talent Management ? – Create Strategic Recruitment Plans to attract the best talent.

Elements of Talent Management Talent Planning Measure and Report Analyze Plan Recruiting Succession Planning Lead Talent Profiles and Evaluate Objectives Performance Management Advance Compensation Management Develop Learning & Development Career Planning PDM MBA 53 .

Innovation.Key Questions for Policy Makers • • Who are our top performers? How to hire and develop more people like them? • • • • • • • Are there Enough of them? Crisis Management? Replacement? Business Growth? Are we Retaining the best employees? Where did we recruit them from? Is there a clear Growth / Succession plan for them ? Is there a two way Communication with them? Do workers have the Skills needed to achieve the performance goals? Are the Learning Initiatives positively impacting performance? • • • • Where is the talent Demand outpacing Supply? How much of the Turnover impacts Customers. Productivity. What are the Financial consequences of talent decisions on our business? Is anyone in the Boardroom worried about the status of the “talent pool” ? PDM MBA 54 . Quality.

POWERHUNT What is POWERHUNT? An in-house Recruitment / Talent Management software driving over all Business Strategy with inbuilt business intelligence. INNOVATION PDM MBA MOMENTUM TECHNOLOGY 55 . Who can benefit from it? It can be used by any recruitment consulting firm as well as by the recruitment division of any organization. Its modules are custom designed based on the clients’ needs.

Talent Management – Integration Management Business Strategy Module – Business Parameters Input Module Organization Structure / Divisional Structure Learning and Development Industrial and Functional details with sample and live JDs Business Intelligence (Auto/Manual) Job allocation / Search / Invoicing / Payroll / Attendance / Taxation / Incentive / Revenue Sharing / Legal / mailers (thank you. confirmation. interview information etc) Admin Branch Head / Product Head Team Leader Business Development / Coordination Talent Search Franchise Management Finance / Admin Client Module Transparent Performance and Compensation Management Short-term (daily) /long term / Across levels and functions Business Analytics – Output module Short-term (daily) /long term Central Data / CV management. Linked to main website Crisis Management Business Development – Coordination PDM / Talent MBASearch Franchise Partners Module 56 INNOVATION MOMENTUM TECHNOLOGY .

Building Sustainable Leadership & Futuristic Talent Management Strategy Talent Management .Simplified Talent Growth Talent Management = Growth Management PDM MBA 57 .

Talent Management is about SUSTAINABLE INCLUSIVE GROWTH (Begin with the End = Well defined Business Model) INCLUSIVE VISION Organizational SYNC Individual “Developing Leaders” What do you require to implement Talent Management? People (Mindset) Processes (Practices) Technology PDM MBA 58 .

PDM MBA 59 .Key Questions for Policy Makers • • • Do we have enough leaders (quantity & quality) to execute ongoing and future business? Are current Leaders accountable for the cultural strategies supporting business goals? Is there any inbuilt mechanism to identify potential leaders across the organization early in their careers? Do we assess our high potential talent from the leadership perspective? Do we systematically accelerate the development of high-potential talent and improve the quality of executive leadership? Do we focus on growing better leaders at all levels from the first line upwards? • • • Invest in the best……Focus on the rest.

Traditional Talent Management Building Sustainable Leadership & Futuristic Talent Management Strategy Acquire Develop Deploy Retain Focus: Managing Best People Futuristic Talent Management Acquire Develop CONNECT Capability Deploy Retain Commitment Enhanced Performance PDM MBA Alignment 60 Focus: Managing Best Positions .

Workforce diversity PDM MBA 61 .

Valuing Work Force Diversity • • • • • Primary and secondary dimensions of diversity Formation of prejudiced attitudes Discrimination in the workplace Organizational cultures that value diversity Individual and organizational enhancement of diversity • Affirmative action programs PDM MBA 15 .62 .

63 .Work Force Diversity – A Definition • Not all countries are multicultural • Some countries are homogeneous – Japan. China PDM MBA 15 .

64 .S.Work Force Diversity – A Definition • The U. is a kaleidoscope of the world‘s cultures – It is the most multiracial and multicultural country – Foreign-born population is about 32.5 million and projected to increase PDM MBA 15 .

15 .1 Foreign-Born Population Trend Source: Reprinted from April 24. copyright Inc.65 .Figure 15. 2000 issue of Business Week by special permission. PDM MBA © 2000 by The McGraw-Hill Companies.

U. organizations attempted to assimilate everyone into one way of doing things PDM MBA 15 .66 .Work Force Diversity – A Definition • Diversity represents the U.S.‘s biggest challenge as well as its greatest opportunity • Business practices must adjust accordingly • Traditionally.S.

Work Force Diversity – A Definition • Focus today is on valuing diversity – Appreciating everyone‘s uniqueness – Respecting differences – Encouraging every worker to make his or her full contribution to the organization PDM MBA 15 .67 .

Work Force Diversity – A Definition • Organizations that foster the full participation of all workers will enjoy the sharpest competitive edge in the expanding global marketplace PDM MBA 15 .68 .

69 . IBM Global Workforce Diversity PDM MBA 15 . and manage people who are different from you. ―Ted‖ Childs.T. J. You’re going to have to sell to people who are different from you. Vice President. and buy from people who are different from you. you’re going to have to work with people who are different from you. Jr.Total Person Insight No matter who you are.

Dimensions of Diversity • Two dimensions – Primary – Secondary • The greater the number of dimensions that are different. the more difficult it is to establish trust and respect PDM MBA 15 .70 .

Dimensions of Diversity • Primary dimensions are core characteristics of each individual that cannot be changed – – – – – Age Race Gender Physical and mental abilities Sexual orientation PDM MBA 15 .71 .

72 . no one dimension stands alone • Each exerts an important influence on life PDM MBA 15 .Primary Dimensions of Diversity • Form the individual‘s self-image • The filters through which each individual views the world • Interdependent.

Secondary Dimensions of Diversity • Elements that can be changed or modified – – – – – – – – Health habits Religious Education/training Appearance Relationship status Ethnic Communication style Income 15 .73 PDM MBA .

Figure 15.74 .2 Primary and Secondary Dimensions of Diversity PDM MBA 15 .

The Dimensions of Diversity • The interaction of primary and secondary dimensions shapes – Values – Priorities – Perceptions • They add depth to the individual PDM MBA 15 .75 .

The Dimensions of Diversity • Building effective human relationships is possible only when we value and accept these differences • Without acceptance.76 . both dimensions of diversity can become roadblocks to further cooperation and understanding PDM MBA 15 .

Prejudiced Attitudes • Prejudice is a premature judgment or an opinion that is formed without examination of the facts – Often based on primary or secondary dimensions PDM MBA 15 .77 .

78 .Prejudiced Attitudes • Prejudiced people tend to think in terms of stereotypes • Generalizations made about all members of a particular group – Perceptions – Beliefs – Expectations PDM MBA 15 .

even after we have been exposed to them PDM MBA 15 .Prejudiced Attitudes • When we bring stereotypes to the workplace. we are likely to misinterpret or devalue some primary and secondary differences.79 .

Prejudiced Attitudes • Most common and powerful stereotypes focus on observable attributes – Age – Gender – Ethnicity PDM MBA 15 .80 .

Prejudiced Attitudes • Stereotypes exist because they provide easy and convenient ways to deal with people • Stereotypes often are based on one or several real experiences in dealing with others PDM MBA 15 .81 .

82 .Prejudiced Attitudes • Xenophobia is a fear of foreigners or other strange-seeming people – Stereotype that has evolved into an anxiety disorder • Prejudiced attitudes are more likely to change when we take time to learn about others PDM MBA 15 .

83 . this nation will be frozen in suspicion and hate. Attorney and Civil Rights Leader PDM MBA 15 . Jordon. ambitions. Vernon E. and values.Total Person Insight So long as black and white Americans see each other as stereotypes and not as people with the same dreams. Jr.

84 .How Prejudiced Attitudes Are Formed and Maintained • Major factors that contribute to formation of prejudice: – Childhood experiences – Ethnocentrism – Economic factors PDM MBA 15 .

religious. and other groups PDM MBA 15 . friends.Childhood Experiences • The emotions of prejudice are formed in childhood • Children learn attitudes and beliefs from family.85 . and other authority figures • They learn how to view and treat different racial. ethnic.

86 .Childhood Experiences • Prejudices from childhood are alterable • Prejudice continues until new information replaces old perceptions PDM MBA 15 .

Ethnic Identity • Ethnic a group united by similar – – – – Customs Characteristics Race Other common factor • Ethnicity refers to condition of being culturally rather than physically distinctive PDM MBA 15 .87 .

88 .Ethnocentrism • Ethnocentrism is the tendency to regard our own culture or nation as better or more correct than others • The standards or values of one culture are being used as a standard to measure the worth of other cultures PDM MBA 15 .

Ethnocentrism: The Iceberg Analogy
• Surface aspects
– Observable and relatively small – i.e., color, gender, mannerisms, job talents, speech

• Below the surface
– Larger and deeper, and not observable – i.e., beliefs, attitudes, worldview

• Clash often happens below the surface
PDM MBA 15 - 89

Economic Factors
• Hard to eliminate • Rooted in basic survival needs • Reinforced by wide wealth and income gap between whites and nonwhites


15 - 90

Economic Factors
• People‘s prejudice against each other increases when the economy goes through a recession or depression and housing, jobs, and other necessities become scarce


15 - 91

The Many Forms of Discrimination
• Discrimination is behavior based on prejudiced attitudes • Individuals or groups that are discriminated against are denied equal treatment and opportunities offered to people in the dominant group


15 - 92

Denial of
• • • • Employment Promotion Training Other job-related privileges

On the basis of
• • • • Race Lifestyle Gender Other characteristics


15 - 93

94 .Types of Discrimination • • • • Gender Age Race Religion • Disability • Sexual orientation • Other subtle forms PDM MBA 15 .

Gender • Focus of much attention • Traditional role‘s for women have been changing • Women in the work force • New roles for men PDM MBA 15 .95 .

96 .Age • Applies to both older worker and younger workers based on perceptions – Youth for lack of practical experience – Old for difficulty adapting to change • On the rise in the US PDM MBA 15 .

97 .PDM MBA 15 .

Race • Race denotes a category of people perceived as distinctive on the basis of biologically inherited traits – skin color – hair texture • People cannot change these traits • A difficult discrimination to overcome PDM MBA 15 .98 .

Census Bureau has been criticized • Critics say they are social inventions that reinforce racism • No scientific justification in human biology • Suggest elimination of traditional categories PDM MBA 15 .Myth of Race • The use of racial categories by the U.S.99 .

PDM MBA 15 .100 .

e. Asian—Filipino. Chinese. Korean – Linguistic. cultural and physical diversity • Increase in mixed-race identity PDM MBA 15 . Japanese.Myth of Race • Individual difference are greater than group differences • Wide variety with any group – i.101 .

Race as Social Identity • Although not scientifically defensible • Race is ―real‖ socially. and psychologically • Proponents of race categories believe it is the only way to ensure all groups will be treated equally • Racial pride – viewed as positive reinforcement PDM MBA 15 .102 . politically.

Mormons.Religion • Religious discrimination has been an issue throughout history • Intolerance for other religions • Intolerance for different denominations within a religion – i. Southern Baptist PDM MBA 15 . Christians—Catholics.103 .e.

Judaism • • History of Anti-Semitism Expected to surpass Judaism 3. 1.104 . Islam PDM MBA 15 .Religion in the U.S. Christianity 2.

Disability • Mentally or physically challenged people find it difficult to enter the job market • Their right to do so are protected by the Americans with Disabilities Act (ADA) of 1991 PDM MBA 15 .105 .

Disability • Some employers still unwilling or unable to make reasonable accommodations • Possibly loosing – Hard-working employees – New customer base – Economic opportunities PDM MBA 15 .106 .

Sexual Orientation
• Discrimination based on a person‘s sexual orientation is motivated by homophobia • Sexual orientation is not the big secret it once was • When we are comfortable about being ourselves, we are usually more productive and creative


15 - 107

States Whose Hate-Crime Laws Include Sexual Orientation

Source: From USA Today, May 18, 2000. Copyright 2000, USA Today. Reprinted with permission.





15 - 108

Sexual Orientation
• Progressive companies are taking steps to provide a more open atmosphere
– – – – Employee associations Nondiscrimination policies Benefits for same-sex partners Recruitment efforts


15 - 109

Subtle Forms of Discrimination
• Discrimination based on gender, age, race, or disability is prohibited by law • No legal protection for more subtle forms
– – – – – – Weight Accents Socioeconomic Education Politics Value differences
15 - 110


What Can You Do to Deal with Subtle Discrimination?
• Decide if you want to stay with the organization • Determination whether the ―difference‖ is something you can • Address it directly if you cannot or will not change • Review assertiveness skills • Compensate by excelling
PDM MBA 15 - 111

112 .The Issue of Valuing Diversity • During the 1990s there was a strong shift away from treating everyone the same and a strong movement toward valuing diversity PDM MBA 15 .

113 .Valuing Diversity • Valuing diversity means that an organization intends to make full use of all employees – – – – Talents Ideas Experiences Perspectives PDM MBA 15 .

114 .Valuing Diversity • To remain competitive. organizations must recognize and hire the best talent regardless of – Skin color – Gender – Cultural background PDM MBA 15 .

115 .The Economics of Valuing Diversity • Valuing diversity is an issue of many dimensions – – – – Legal Social Moral Economic PDM MBA 15 .

116 .The Economics of Valuing Diversity • An organization‘s most valuable resource is its people • The cost of not helping employees learn to respect and value each other is enormous PDM MBA 15 .

117 PDM MBA . stress.Costs of Not Valuing Diversity • Employee turnover – Loss of valuable employees – Recruitment and training of new employees • • • • • Discrimination complaints Tension. low morale Absenteeism and lost time Delayed production Increased conflict among employees 15 .

organizations can remain competitive only if they can recognize and obtain the best talent. and create an atmosphere that values its workforce. races.118 . and genders.Total Person Insight More and more. Lewis Brown Griggs and Lente-Louise Louw Authors. Valuing Diversity: New Tools For A New Reality PDM MBA 15 . nurture and train that talent. value the diverse perspectives that come with talent born of different cultures.

Valuing Diversity • Managing diversity as an asset can exert a positive influence on – Productivity – Cooperation • Companies that value diversity usually outperform companies that don‘t PDM MBA 15 .119 .

120 . this becomes more challenging PDM MBA 15 .Managing Diversity • Process of creating an organizational culture where the primary and secondary dimensions of diversity are respected • As workforce becomes more diverse.

What Individuals Can Do • We cannot totally eliminate prejudices that have been deeply held and developed over time • We can learn to change negative attitudes and behaviors PDM MBA 15 .121 .

What Individuals Can Do • Learn to look critically and honestly at the particular myths and preconceived ideas you have been conditioned to believe about others – Contact with other cultures is important PDM MBA 15 .122 .

study PDM MBA 15 .What Individuals Can Do • Develop a sensitivity to differences – Do not allow prejudiced activity in your presence • Develop your own diversity awareness program – Diversity your life—friends. activities.123 .

and other characteristics. religious beliefs.124 . PDM MBA 15 . gender. race.What Organizations Can Do • A well-planned and well-executed diversity program can promote understanding and diffuse tension between employees who differ in age.

125 .What Organizations Can Do • A comprehensive diversity program has three pillars: • Organizational commitment • Employment practices • Training and development PDM MBA 15 .

5 PDM MBA 15 .Figure 15.126 .4 The Three Pillars of Diversity Figure 15.

127 .Organizational Commitment • Diversity programs seen as an event. or quickfix can do more harm than good • Organizational redesign in which diversity programs are seen as a process are more likely to be successful • Objectives need to be clear in order to access outcomes PDM MBA 15 .

Employment Practices • Actively recruit diversity • Plug into alternative networks • Foster a climate for retention PDM MBA 15 .128 .

129 .Training and Development • Give managers and employees the tools they need to work more effectively with one another – Learn to value difference – Uncover unconscious behavioral patterns PDM MBA 15 .

130 .Affirmative Action: Yesterday and Today • Affirmative action can be defined as a program that encourages the hiring and promotion of members of groups that have been discriminated against in the past • It is an effort to make up for past wrongs PDM MBA 15 .

5.131 . page 379 • Organizations Subject to Affirmative Action Rules and Regulations PDM MBA 15 .• insert table 15.

including those who are pregnant) • Racial or ethnic origin (not limited to those of color) • Religion (special beliefs and practices) • Age (individuals over 40) PDM MBA 15 .Protected Individuals • Sex/gender (women.132 .

not federal) PDM MBA 15 . some states.Protected Individuals • Individuals with disabilities (physical or mental) • Sexual orientation (some state and city.133 . not federal) • Military experience (Vietnam-era veterans) • Marital status (same-gender couples.

134 .Affirmative Action Plans (AAP) • Formal documents that employees compile annually for submission to various enforcement agencies • Clarifies activities to seek out. and develop talents of individuals from protected classes PDM MBA 15 . employ.

Common Elements of AAPs 1.135 . Validation of employment testing procedures PDM MBA 15 . Establishment of specific goals and timetables for minority hiring 4. Active recruitment of women and minorities 2. Elimination of prejudicial questions on employment applications 3.

136 .The Affirmative Action Debate • Some people believe it is time to rethink affirmative action • Critics argue that no preferential treatment should be given to any groups PDM MBA 15 .

given changing demographics • The debate will continue PDM MBA 15 .The Affirmative Action Debate • Common arguments – Preferences are discriminatory – Preferences do not make sense.137 .

Summary • Work force diversity is a major issue for organizations that want to remain competitive in a global economy PDM MBA 15 .138 .

Summary • Primary dimensions of diversity include – – – – – Age Race Gender Physical and mental abilities Sexual orientation PDM MBA 15 .139 .

140 PDM MBA .Summary • Secondary dimensions include – – – – – – – – Health habits Religious beliefs Ethnic customs Communication style Relationship status Income General appearance Education and training 15 .

and cultural conditioning PDM MBA 15 .Summary • Prejudice and discrimination are major barriers to effective human relations • Prejudice is an attitude formed partly on ignorance. fear.141 .

• Prejudiced people often see others as stereotypes rather than unique individuals • Discrimination is a behavior based on prejudicial attitudes


15 - 142

• Groups protected by law from discrimination include
– – – – – – – Gender Age Race Abilities Religion Sexual orientation Subtle forms
15 - 143


• The issue of valuing diversity is an economic one for most organizations • Companies cannot afford to ignore the current changes in the pool of human resources


15 - 144

• Individuals can enhance diversity by letting go of their stereotypes and learning to critically and honestly evaluate their prejudiced attitudes • Organizations must develop a culture that respects and enhances diversity


15 - 145

• Diversity training programs should become an internal process rather than one event • Companies need to seek out and employ people from diverse backgrounds


15 - 146

147 .Summary • Affirmative action guidelines have helped bring fairness in hiring and promotion in many companies • Some people believe these practices are discriminatory because of preferential treatment they were designed to protect PDM MBA 15 .

Role of hr in talent management •TRANSLATING CORPORATE GOALS INTO WORKFORCE NEEDS •MAKING THE PEOPLE-PROFIT LINK •LINKING TALENT TO REVENUE POTENTIAL Evaluate the tangible ROI associated with your people. Be clear and objective when defining the value of talent. Communicate messages that are relevant to leadership in terms they understand. Be flexible—business direction and objectives are always changing. PDM MBA 148 .

Development planning/support (including learning management). and Recruiting. Succession planning/decision analytics. Workforce planning. Career development.Cont. •MANAGING TALENT PROCESSES Performance management.. •TECHNOLOGY SUPPORT PDM MBA 149 . Targeted selection and talent reviews.

Uint-2 PDM MBA 150 .

•developing talent. •establishing talent management system. •sourcing talent.Talent Procurement and Deployment •Identifying talent needs. •talent multiplication PDM MBA 151 . •deployment of talent.

Identifying talent needs PDM MBA 152 .

multi-rater assessment tools 153 PDM MBA . behavioral based interviews.What Types of Assessment? How can organizations assess existing staff to track high potentials and ensure new hires meet the future needs of the business? Assessment: • Online Psychometric Assessments • Leadership/Management Assessment Batteries • Assessment and Development Centers • 360 degree feedback surveys and business assessments • Competency model profiling.

Assessment Benchmarking Define performance standards Identify appropriate assessments Identify incumbent sample Gather performance data for each employee Each employee completes assessment(s) Match employees performance data with their assessment data Statistically analyze data to determine which assessment(s) scale(s) predict on-the-job performance Develop recommendations and plans regarding future assessment and selection 154 PDM MBA .

weaknesses.Assessment/Development Centers? What is an assessment/development center? An assessment/development center is a process designed to identify an individual‘s strengths. The assessment process is characterized by: – Multiple participants rated by multiple assessors on several varied exercises – Many of these exercises are designed to assess competencies – Data integration: a structured evaluation of the participant in which assessors present objective evidence and reach a consensus decision The outcome of an assessment/development center are: – Written reports detailing a participant‘s competencies as they relate to job requirements – One-to-one sessions examining the reports 155 PDM MBA . and potential in a current or future role.

Why Assessment Centers? • • • • • • • • Combine multiple assessment and business simulation methodologies to achieve the best possible predictor of future performance Offers comprehensive secondary evaluation of preferred candidate strengths and weaknesses Are the most powerful tool to predict the profile you want to hire – save money over time Measure performance and potential therefore strengthening the leadership pipeline – allowing organizations to develop training strategies to further develop and grow talent Hiring managers can be involved and refresh their own assessment/coaching skills Offer broad range of competencies. individually or in group Provide wealth of information available to feedback to all involved Offers great opportunity to seal psychological contract 156 PDM MBA .

Assessment Centers Drive Performance Competencies Questions Do they have the required technical skills? Technical Skills Trainable Discipline Understanding Knowledge & Experience Capability Demonstrated competencies Attributes Behaviours that infer potential Do they have the experience and understanding necessary? Can they demonstrate the behaviours necessary for high performance? Do they have development potential? Untrainable Drivers Motivational Fit Will aspects of the role motivate them? Career Fit 157 PDM MBA Does the role meet their current career objectives? .

…and Tools To Assess Each Area Technical Skills Discipline Understanding Knowledge & Experience Capability Demonstrated competencies Attributes Behaviours that infer potential Resume Screening Technical Tests Preferential Interviewing Behavioural Interviewing Trainable Psych Assessment Untrainable Motivational Fit Behavioural Interview Career Fit Preferential Interview 158 PDM MBA .

Assessment Centers Advantage • Most powerful tool to predict profile you hire – saves money over time • Hiring managers can be involved and refresh their own assessment/coaching skills • Performance and potential • Broad range of competences. individually or in group • Wealth of information available to feedback to all involved • Offers great opportunity to seal psychological contract Disadvantage • Time investment required from candidate – though they get more in-depth feedback in return and can also make an informed decision • Relatively expensive in short term – though saves money in the long run 159 PDM MBA .

) AC Objective: Reduce the turnover of personnel • What is the percentage of ‗young graduates‘ who left the company within the first 3 years? • What is the difference between the young graduates who were selected versus an interview and the young graduates who were selected versus an AC? 160 PDM MBA .Case Study A Assessment Center’s ROI In The Selection Process Client Issue: Very high personnel turnover • Young graduates selection procedure • Only one interview • Or a full assessment center (interview. BAQ. etc. RAT. simulation exercises.

Case Study AAssessment Center’s ROI In The Selection Process 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 25% 43% AC Interview The turnover of personnel was reduced by 41%. 161 PDM MBA .

the company revamped the process used to select employees for the program. the company needed a service provider with talent assessment expertise to evaluate candidates in the United Kingdom. global reach. had a program grooming high-potential employees for career advancement opportunities and broader leadership responsibilities. • • 162 PDM MBA .Case Study B – Talent Management Assesses Future Leaders Challenge • • The client. In 2008. Hudson was selected as the company‘s partner because of our robust methodology. the United States and Asia. the quality of our assessors and the cost-effectiveness of our offerings. one of the world‘s largest energy companies. As a result. making it more systematic and rigorous.

business case studies. values and leadership framework.Case Study B – Talent Management Assesses Future Leaders Solution • Hudson‘s Talent Management team conducted a series of meetings to learn about the company‘s culture. The type of assessments administered varied accordingly. Based on that background. we developed assessment materials that were uniquely suited to the client‘s leadership development program and trained our assessors to apply their high standards during interactions with candidates. while others had already attained senior-level positions. interviews and group discussions. Overall. In late 2008. we conducted assessments at three sites: London. Houston and Singapore. Some candidates were at a relatively early stage in their career with the client. simulation exercises. about 85 candidates went through a series of ability and personality tests. • • 163 PDM MBA .

• • 164 PDM MBA . Our guidance for the client throughout the process provided the company with useful information about tailoring their development efforts to ensure their high-potential employees can continue to progress throughout their careers. Candidates – many of whom had never been through an assessment program before – came away with a better understanding of their strengths.Case Study B Talent Management Assesses Future Leaders Results • Hudson provided comprehensive reports about the candidates‘ aptitude for performing effectively in future leadership roles. weaknesses and opportunities for personal development. Even those who did not make it into the leadership program found the experience valuable. The client was highly satisfied.

adding science to selection can save thousands in the future It is important to identify the right solution for your organization and the types of roles you hire Whatever you do. high potential is developed through a solid understanding of competency and behavior • • • • 165 PDM MBA . always start with the right competencies for each role and build from there Always remember.Summary • Identifying talent is going to become more vital with the predicted skills shortage and therefore more science must be added to the selection process Although it may look like an additional cost.

and having a complete organizational commitment to recruiting the best.Sourcing • Instilling a new talent mindset and developing a powerful employee value proposition are important but they aren't enough. PDM MBA 166 . using various innovative channels to bring them in. • A robust sourcing strategy is crucial. • That means being clear about the kinds of people that are good for the organization.

2 PDM MBA 4-167 .Human Capital: Three Interdependent Activities Exhibit 4.

train for skill • Emphasis on – General knowledge and experience – Social skills – Values – Beliefs – Attitudes PDM MBA 4-168 .Attracting Human Capital • Hire for attitude.

Attracting Human Capital • Sound recruiting approaches – Firms must take recruiting seriously – Challenge becomes having the right job candidates. not the greatest number of them PDM MBA 4-169 .

Developing Human Capital • • • • • Train and develop at all levels Encouraging widespread involvement Transferring knowledge Monitor progress and track development Evaluate human capital PDM MBA 4-170 .

please Give them responsibility Feedback and more feedback Giving back matters PDM MBA 4-171 .Best Practices to Recruit and Retain Young Talent • • • • • • Don’t fudge the sales pitch Let them have a life No time clocks.

How to Get Hired • • • • • It helps to know someone Play up volunteer work on your resume Unleash your inner storyteller No lone rangers need apply Be open to learning new things PDM MBA 4-172 .

Developing Human Capital • • • • • Train and develop at all levels Encouraging widespread involvement Transferring knowledge Monitor progress and track development Evaluate human capital PDM MBA 4-173 .

particularly in mission-criticaloccupations. PDM MBA 174 . promote. andretain quality talent.acquire. by implementing andmaintaining programs to attract. develop.Talent Management System • A system that create organizationalexcellence by addresses competencygaps.

opticalcharacter recognition software and equal employmentopportunity reporting made applicant tracking possible andnecessary for most large corporations. e-recruiting companiesand corporate employment web site. It took off in themid-1990s with the advent of internet.Talent Management As a System • Talent management as a system concept had its beginning inthe late 1980s when client/server technology. It went mainstream in late 90‘s withthe explosion of online job boards. web browsers anddatabase technology. PDM MBA 175 .

The result of the studysuggested that six human resource condition had to bemet in employees selection and performanceevaluation processes. and those had failed. The study examined organization that hadsurvived and prospered. over atime period of 25 years.Cont… • A study was conducted by LBA consulting group in1990‘s. PDM MBA 176 .

• • • • • A performance oriented culture Low turnover (particularly in premium employees groups) High level of employee satisfaction A cadre of qualified replacement Effective investment in employee compensation &development • Use of institutional competencies in employee selectionand performance evaluation processes PDM MBA 177 ..Cont.

development. and retentionof super keepers. PDM MBA 178 . • The classification of and investment in each employee based on his/her actual and/or potential for adding valueto the organization. selection.Outcomes • The identification. • The identification and development of highqualityreplacement for a small number of position designated askey to current and future organization success.

knowledge. Addressing the critical success factors helpseliminate gaps and deficiencies in the skills.and competencies of employees The two success factorsusually work together. PDM MBA 179 . at theright times. in the right places.Key elements of TMS The Talent Management system is comprised of two criticalsuccess factors that work together to ensure agencieshave people with the right skills.

• Recruitment:The workforce plan drives the aggressiveand strategic recruitment of diverse and qualifiedcandidates for the agency's workforce.- Attracting • Retention:Leaders, managers, and supervisors create andsustain effective working relationships withemployees.



• Attracting talent
– Identifies the challenges involved in attracting a high-qualityworkforce – Establish competency gap reduction goals and developaction plans to address current and future competencygaps – Use appropriate hiring flexibilities and tools – Attract and hires applicants who possess needed mission-critical competencies

• Managing Talent
– Utilize flexible compensation strategies to retain employees – Develop short- and long-term strategies and targeted investments in current employees to eliminate competency gaps – Train the current workforce in required competencies needed by the agency



• Conclusion based on this study were simple: to optimize an organization's ability to achieve sustained excellence, it must recognize the need for proactive talent management and have a systematic way of accomplishing the activity. On the basis of research organization focus on three outcomes:



Definition of talent multiplication
• "Talent is typically thought of as an attribute of individuals. It is admired in artists, musicians and athletes. In business, we praise the talents of the exceptional leader, the brilliant strategist, the outstanding salesperson, the savvy marketer, the financial wizard," the authors state. • "Most organizations‘ talent management strategies and practices focus on individuals. An exclusive focus on leaders, stars and high-potential employees misses the opportunity to identify and nurture collective talents that may yield a whole that is greater than the sum of the parts." An example:



as well as teams. he was not even part of the best five-player combination (based on point differential when players are both in and out of the game).. they can multiply their talent and elevate the performance of all employees. In 2006. Statistical analyses of individual player performances and the team‘s performance with different combinations of players on the court revealed that Shaquille O‘Neal." PDM MBA 185 . the Miami Heat won the National Basketball Association championship. knowledge sharing and collective learning. was not the driving force behind the team‘s success. "Consider an organization whose talent primarily consists of twelve individuals: a US professional basketball team.Cont. one of the best basketball players ever.3 It was the Heat‘s ability to engineer the best combinations of players‘ talents that led them to victory. In fact.― "When organizations combine employees‘ skills and knowledge in ways that foster collaboration. workgroups and entire workforces. and they won it by multiplying their collective talents.

Unit.3 PDM MBA 186 .

Cost & consequences of talent departure • Increase replacement cost • Decrease productivity • Loss: – – – – Valuable knowledge Experience & skills etc. Key relationships Funding sourcies PDM MBA 187 .

vision.• • • • • • • Lack of leadership Lack of support Lack of shared goals. mission. Training or professional development Inadequate compensation Potential for career advancement/growth No employee retention investment PDM MBA 188 .

diagnosing causes of talent departure • • • • • • • • Effective communication Staff opportunity Inspire and motivate staff Listen and campionideas Develop. nurture and grow staff Flexible work schedules Incentives & recognition Compensation & benefits PDM MBA 189 .

designing the process ensuring strategic integration assessing the current situation identifying and assessing talented individuals implementation: planning and undertaking development 6. 2. evaluation PDM MBA 190 . 3. 5. 4.6 steps in deployment of talent 1.

1. Design the process • • • • define a business case for succession management ensure transparency and confidentiality build in staff feedback systems develop a communication strategy PDM MBA 191 .

2. Ensure strategic integration • identify roles/jobs critical to organisation's success • identify distinctive leadership capabilities • align with training and development and performance management systems PDM MBA 192 .

internal mobility and attrition over the next 3-5 years • Use relevant succession and talent management strategies to fill the gaps identified between current capability for key roles and future requirements PDM MBA 193 . Assess the current situation • conduct a risk assessment of potential departures from existing critical roles • determine the extent of any pending position shortage by projecting requirements.3.

4. Identify and assess potential • Outline the capabilities required for effectiveness in critical roles • map essential skills and competencies identified using consistent & objective criteria • also use criteria to identify high-performance and high-potential candidates with advancement potential PDM MBA 194 .

Accurate identification & assessment Use existing performance management data such as: • biographical data • current performance • observed behaviour • 360° feedback and formal appraisal outcomes • interviews to determine career preferences • behavioural interviews • feedback from a range of senior managers performance • external assessments such as assessment centres PDM MBA 195 .

5. Implementation • outline the types of roles or experiences which may be offered as accelerated development opportunities • develop each individual‘s required capabilities through a program of learning experiences • development opportunities include: targeted job assignments. managing a project. a formal training program. access to a mentor etc PDM MBA 196 .

• for the individual. evaluation includes selfassessment about the degree of capability development and demonstrated changes in performance and behaviour in the workplace. evaluation could be in terms of whether organisational risk has been reduced or minimised.6. Evaluation • establish clear timeframes • for the organisation. PDM MBA 197 .

Collins.Manage easy!” . training. PDM MBA 198 .” “Hire hard…. Good to great.” “Good coaching. (2001). J. is not likely to make up for bad selection. etc.. mentoring.Talent Acquisition “Organizations need to get the right people on the bus and in the right seats to succeed.

Talent Acquisition Individual Organization PDM MBA 199 .

• Effort without distress (Engagement) – Working harder and deriving satisfaction • Distress without effort (Disengagement) – Giving up and feeling bad about it • Effort with distress (Strain) – Working harder but with fatigue and anxiety PDM MBA 200 .Talent / Employee Engagement Employee Engagement is inversely proportional to stress.

Talent / Employee Engagement What drives it? Service Commitment Organisational Commitment Engagement Work & Career Commitment Job Satisfaction PDM MBA 201 .

Talent Retention Who are your competitors? Colleagues / partners within the organization looking for another job Every partner / employee asks few key questions – – – – Am I working for a winning organization? Can I get my day-to-day job done effectively? Am I treated well? Is my work enjoyable and fulfilling? PDM MBA 202 .

Critical Elements of Attracting and Retaining TOP Talent Constructive Relationships at Work Workplace Flexibility Culture of Respect and Inclusion Wellness. Health and Safety ATTRACTION RETENTION Opportunities for meaningful work Benefits. Compensation are Fair and Attractive Learning and Development Provision of Employment is Secure and Predictable PDM MBA 203 .

Talent retention Engaged and Motivated Workforce Productivity Increase Inclusive Growth Business Growth PDM MBA 204 .

Retention Strategies Maintain Company Image. Individual contribution.Employees join companies and Leave Managers. Learning opportunities – Engagement Performance recognition and rewards. Initiate Recruitment. Selection and Development. PDM MBA 205 . Individual and independent projects. Initiate Recruitment. Selection and Development. Leadership – the maxim . Maintain Company Image.

Cont… • Leadership – the maxim . • Learning opportunities – Engagement • Performance recognition and rewards. PDM MBA 206 . • Individual and independent projects. • Individual contribution.Employees join companies and Leave Managers.

EMPLOYEE ENGAGEMENT • Companies with highly engaged employees financially outperform those with low engagement levels. 2007. PDM MBA 207 . and experience less absenteeism (Durgin. tend to experience lower retention risk.

visions and values. • Challenge themselves and their staff to stretch performance. Taking owners of continuous development of their teams through performance management. PDM MBA 208 . • Managers are a conduct for the organisation‘s strategic priorities. • Setting smart goals with their teams.THE LINE MANAGER AS AN EPLOYEE ENGAGEMENT DRIVER • Managers have direct one-on-one relationship with employees through use of open communication.

minds and capabilities talented people . strategies •Priorities set clear/smart goals High Performance Committed • Engaged •Accountable •Empowered Equipped .EMPLOYEE ENGAGEMENT • Become a high performance organisation Capable  Well Led  Equipped  Well Managed Clear •Shared vision mission values.resources PDM MBA 209 • Need to engage the hearts.

While fair pair is not a key driver. to be communicated within a way that considers their feelings. Care and concern are global drivers and appear in the top two slots in loyalty surveys around the globe. Accomplishment/recognition The biggest way to give employees a sense of accomplishment is to provide useful feedback about the performance at work. Communication Employees want the right amount of information . 53% of respondents regard their pay as fair. to be allowed to make work decisions and not to be punished if a decision is the wrong one • • • • • From the Soft Stuff Works by Heidi Brauer and Marc Drizin PDM MBA 210 .Money can’t buy loyalty • Care and concerns Employees want training to develop their long term. Fairness at work Fair work policies and treatment of employees are the two main ways employees evaluate their jobs. careers. to a lesser extent. They also want family-friendly benefits and concern in personal emergencies. Trust Employees want to be encouraged to try new ways of doing things. Other drivers include rewarding excellent achievements and noticing lesser achievements. in timely manner and.

Organisations whose culture values the employees are in a better position to achieve the desired business results through their employees. Creation of a conducive environment for success. Managers have a critical role to play in instilling the desired culture. Define the desired culture for keeping talent. PDM MBA 211 . a culture that fully leverages the skills of their human capital. Culture is dynamic and e… over time.Organisational Culture Key to Talent Management Organisations increasingly recognise the need to create a culture which makes employees feel valued.

PDM MBA 212 .WHAT IS ORGANISATIONAL CULTURE? ―Culture is most commonly seen as the expression of the organisation‘s values manifested by • how people relate to one another. • how it values them. and • how the organisation relates to the world‘‘. • how people are led to feel about their work. • how information is disseminated.

making Processes Operating styles Organisatinal philosophy Organisational Structure Organisational values Management style Leadership style • ―sharedness‖ of beliefs or values • Acceptance & appreciation practices • Concern for employees & fair treatment.ELEMENTS OF ORGANISATIONAL CULTURE An organisation‘s corporate culture is often comprised of the following elements: • • • • • • • • • Employee motivation and loyalty Internal communication practices Decision. • Creativity & innovative Practices • Open communication • Respect for employees • Employee engagement practices PDM MBA 213 .

Conditions for talent retention • • • • • • • • The individual The environment obtaining Industry status Employees understand the vision. mission. PDM MBA 214 . values and strategies of the organisation assigned Zeal to stretch performance Taking ownership for continuous development Collaboration and teamwork Globerasation trends setting – keeping up with global market trends empowered to make decisions.

• • • • • • The organisation : employer branding Have resources to perform. There is recognition of performance Conducive organisational structure.Cont. Attractive employee value proposition Keeping up with technological advances PDM MBA 215 ..

Individual life cycle PDM MBA 216 . Challenging.Conditions of Talent Retention • • • • • • • • • • • • Employer of choice brand Opportunity for development. goals. ―feeling part of things or involved Leadership that is trusted and provides necessary support Work that is meaningful and worth striving for. yet achievable. Appropriate compensation (market-related and fair) Good work-life Cooperative relationships and teamwork Good ―fit‖ with role and organisation including values. to make a difference and succeed Feedback and recognition on performance and contribution Regular communication.

Unit-4 PDM MBA 217 .

1.The Management Cycle Figure 11. Operating plans and budgets Project management Needs Assessment Performance Measurement PDM MBA 218 .

• measuring what matters.The perfect world In a perfect world. • providing corrective feedback and positive reinforcement to enthusiastic people who enjoy being measured and take improvement on as a challenge. a measurement system will actively promote performance improvement by. PDM MBA 219 .

ATTRIBUTES OF A GOOD MEASUREMENT SYSTEM • An effective performance measurement system should have the following attributes. • FOCUS ON THE FUTURE PDM MBA 220 . • FOCUS ON EFFECTIVENESS – 1) We have a need to measure better. – 2) We have a need to measure less.

―KEY RESULT AREAS‖ – KRAs are those functions or divisions of performance in which your organization must continually improve to be successful.ATTRIBUTES OF A GOOD MEASUREMENT SYSTEM • FOCUS ON OBJECTIVES. PDM MBA 221 .

EXAMPLES OF ―KEY RESULT‖ AREAS • • • • • • • • • Customer Product/service Public/society/natural environment Marketing Human Resources Production Maintenance Operations Finance • Good measurement systems don‘t just measure things done according to the organizational chart. Good systems measure things done to satisfy stakeholders. PDM MBA 222 .

PDM MBA 223 . • Some examples of measures follow. Let‘s make sure the concept of Key Performance Indicator is understood. – An ―indicator‖ is a gauge or a measure that reports information.Key Performance Indicators ―KPI‘s‖ • This is the essence of measurement. – ―Performance‖ is the result or activity we are looking for that fits in to strategic goals. – Measures are developed to capture both the input and output elements of a business system. – ―Key‖ means that this measure has been pinpointed so carefully that management knows precisely what to do.

SPEED INDICATORS • • • • • response time records turn around time records cycle time records project completion dates meeting scheduled time records PDM MBA 224 .

• Customer returns or warranty claims. PDM MBA 225 .ACCURACY INDICATORS • judgment based climate or opinion surveys – – – – focus groups comment cards telephone surveys advisory panels • opinions of community leaders • meeting design specifications or passing an inspection point that ensures the product works.

number of units produced – – – – number of completed transactions % market share Back order statistics Number of failed sales due to being out of stock PDM MBA 226 .VOLUME INDICTORS • Measures the amount (Number of) of outputs or results from a specific activity or program.

INVESTMENT INDICATORS • Measures the amount of resources expended on a specific program or activity or the unit cost (cost/number of units produced ($)). • Notice that the financial measures are ―per‖ something PDM MBA 227 . – – – – operating costs per unit produced capital costs per unit produced cost per customer as to sales and marketing expenses cost per unit of after sales service and customer support.

Develop Output and Results Measures for each goal 3. Build the Culture PDM MBA 228 . Develop Input Measures for each goal 4. Check with SAVI to see if the set of measures is complete 5. Use an Effective Recognition System 6. Separate Strategic Goals Into Input and Output Dimensions 2.‗Six Steps‘ of a Measurement System 1.

organizations create strategic goals that identify ―Key Result‖ areas of the organization where change and improvement is possible and desirable. PDM MBA 229 . Mission and Values.Step 1. • Our first step in developing measures to reflect the goal is to dissect the goal into its input and output dimensions. Separate Strategic Goals Into Input and Output Dimensions • Following from Vision.

Figure 11.2. (excessive waste) How well is labour used. Broad measurement concept of inputs unit cost efficiency Input dimension How well are materials used. (excessive idle time) How well is overhead used (idle capacity) PDM MBA 230 .

Figure 11. Broad measurement concepts of Outputs Internal Results Output Dimension maintaining and improving quality lower consumer prices External Results financial returns improve market share meet current and future demand PDM MBA 231 .3.

Step 2. In most organizations. Develop Output Measures or Each Goal • Outputs are accomplishments. accomplishments can be categorized into three groups. – Investment returns – Customer Satisfaction – Social Impacts PDM MBA 232 .

4. Measures of outputs or Results. The proportion of the market share relative to the total market should increase at a rate that is faster than the rate of change in total market size. to be accomplished by a specific date.Figure 11. OUTPUT MEASURES PERFORMANCE GOAL (changes of specific amounts over specific time frames) CATEGORY MEASUREMENT CONCEPT PERFORMANCE MEASURE Financial returns % return on investment % return on assets employed Profit margin on sales % market share relative to the competition % market share relative to total market size PDM MBA All should increase by a specific % change. 233 . Investment Returns Market share The proportion of the market share against the competition should increase.

234 Child development Improvement in reading skills Impact on landfills when the toy is finished PDM MBA Social Benefits Environment al impact . Customer Satisfaction Deliver on time and in sufficient quantity Backorder and delivery statistics Backorders should decline and delivery cycle times should improve. Consumer prices Retail price by product The retail price matched to value should decline.Measures of outputs or Results Product or service quality Rejection rates in the production process Sales returns Both should decline by a specific amount in a specific timeframe. Children using these toys should show a measured improvement in reading skills The proportion of toys presented for re-cycling should go up.

Develop Input Measures For Each Goal • We normally develop input measures after we have developed output measures because it is a good idea to know where you are going before you decide how to get there. – Financial operating resources – Financial capital resources – Other organizational resources PDM MBA 235 .Step 3.

Figure 11. Measures of Inputs or Efficiencies CATEGORY MEASUREMENT CONCEPT INPUT MEASURES for “UNIT COST EFFICIENCY” PERFORMANCE MEASURE PERFORMANCE GOAL Materials and labour Direct materials and direct labour per unit. expressed in both dollar and quantity terms Material and labour cost and or consumption per unit should decline over a specified time period Overhead consumed per unit produced should decline Financial Operating Resources Overhead Overhead charged per unit % utilization of capacity %capacity utilized should increase to or remain at optimal levels Dollars per unit of capital invested should decline over time as capital resources are used more efficiently Financial Capital Resources Capital investment in operating assets Dollars of capital investment per unit produced Other Organizational Resources Non-financial resources consumed by the performance area Management estimates of the resources of talent and energy and other nonfinancial resources that have been dedicated to this performance area The amount consumed will increase as the project is developed and decrease after it is implemented PDM MBA 236 .5.

PDM MBA 237 . we need to apply the SAVI framework to categorize the measures as to Speed.Step 4. Accuracy. Check with SAVI to see if the set of measures is complete • Before we can be sure that we have a complete set of measures. Volume and Investment.

6. Linking Output Measures to SAVI OUTPUT MEASURES MEASUREMENT CONCEPT CATEGORY PERFORMANCE MEASURE SAVI financial returns Investment Returns market share % return on investment % return on assets employed Profit margin on sales Accuracy % market share relative to the competition % market share relative to total market size Volume Product or service quality Customer Satisfaction Rejection rates in the production process Sales returns Accuracy & Volume Speed & Volume Investment Accuracy Deliver on time and in sufficient quantity Backorder and delivery statistics Consumer prices Retail price per product Child development Social Benefits Environmental impact Improvement in reading skills Impact on landfills when the toy is finished Volume PDM MBA 238 .Figure 11.

Figure 11. Investment % utilization of capacity Volume Financial Capital Resources Capital investment in operating assets Dollars of capital investment per unit produced Investment Other organizational resources Non-financial resources consumed Management estimates of the resources of talent and energy that have been dedicated to this performance area. Investment Overhead charged per unit.7. in both dollar and quantity terms. Linking Input Measures to SAVI INPUT MEASURES for “UNIT COST EFFICIENCY” CATEGORY MEASUREMENT CONCEPT PERFORMANCE MEASURE SAVI Materials and labour Financial Operating resources Overhead Direct materials and direct labour per unit. Investment PDM MBA 239 .

Testing the measures • Once we are satisfied that the set is complete we need to subject each and every measure to a test. PDM MBA 240 .

Use an Effective Recognition System • Use Measurement to Initiate Change – An effective measurement system will use the measured results as a management tool. – when results are less than expected we should quickly isolate the cause and correct the process PDM MBA 241 .Step 5. – When results are as expected we should offer congratulations and reinforcement to keep it going. – Every result should have an automatic intervention strategy.

Step 6. • Improvement happens when people employ enthusiasm. • A good system on paper is a healthy beginning but if you want results you need to follow up a paper system with a people system. leadership and morale in their daily routine. Build the culture • Good systems need good people. • Improvement does not take place on paper. There is no sense in examining a process unless at the same time you examine the people who govern the process. commitment. PDM MBA 242 . dedication.

– So how about the 30 minute pizza delivery guarantee. That promotes speeding and if a delivery person has an order at 28 minutes and another at 10. and what does this do to pizza quality? PDM MBA 243 . which does he deliver first? And what happens if Pizza delivery people are offered a cash bonus for every delivery made within 30 minutes.Closing remarks • In the beginning of this chapter you were challenged to find measures and see the resulting behavior.

. • People are curious beings. We bring our own personal values to the job. PDM MBA 244 . A performance measurement system is a uniform set of measures that is trying to motivate a most un-uniform set of people.To be cont. we are motivated by different things. we react differently to control systems.

• Talent metrics (also known as workforce analytics) measures tangible data such as headcount. This is appropriate to recommend when you are selling to HR PDM MBA 245 .Talent Metrics: • Talent Metrics: Tangible Data (Easy to measure. Low Value). and compensation. attrition.

Measurement of Human Capital and Official Statistics PDM MBA 246 .

Measurement of human capital 1. The Measurement of Human Capital Development. Measuring the Education Output of Government Using a Human Capital Approach: What might Estimates Show? (Fraumeni and NBER) 3. Measuring Australias Human Capital Development: The Role of Post-school Education and the Impact of Population Ageing (ABS) 2. also with Reference to Elderly Population (ISTAT) PDM MBA 247 .

Why measure human capital? • Key concept in analysing central issues. such as – Productivity and growth – Impacts of an ageing population – Sustainable development – The returns to education OK – but do we need the capital approach? – Estimates of human capital may be compared to other assets – Enables analyses of policy measures in important areas Even so – what should be the role for NSOs? PDM MBA 248 • • .

Human capital is an intangible asset! • Human capital definitions – Wide: Productive capacity of individuals – More narrow: Productive capacity related to knowledge and skills • Improvements in labour quality may take many forms – Healthcare – Learning in families and neigbourhoods – Formal schooling – On-the-job training • Empirical studies typically focus on formal education – But stock figures include social capital as well? PDM MBA 249 .

individuals must be compensated with higher wages ex post • For employers to be willing to pay higher wages. individuals with higher education must have higher productivity  Individuals make optimal choices based on net present value of investment – in income or utility terms PDM MBA 250 .Human capital theory in a nutshell • Education is regarded as an investment • Investment entails costs – direct costs and opportunity costs of forgone earnings • To be willing to undertake the investments.

Approaches to human capital estimation • Direct volume measures in NA – Volume indicators for types of education weighted together by unit costs • The National Wealth Approach – Implies a ‖wide‖ definition of human capital • The Jorgenson-Fraumeni approach to measuring output of the education sector (the Australian and the US papers) – More ‖narrow‖: Analysing the contribution to national wealth from education • The ‖indicator approach‖ (the Italian paper) – Human capital as a multidimensional phenomenon – A broad set of human capital-related indicators (OECD: ‖Education at a Glance‖) PDM MBA 251 .

Human capital is calculated as the residual 3.e. Decompose Net National Income (NNI) into the returns from the inputs i. Calculate resource rents from all natural resources (renewable and non-renewable) 2. natural resources etc. physical capital.The National Wealth Approach: Calculating human capital residually Three steps: 1. Capitalize the income stream from the human capital component PDM MBA 252 .

The NW Approach: Strengths and weaknesses • Making the ―intangible‖ comparable to other (measurable) assets • Based on (mostly) existing national account figures • Based on rather simple methods and calculations • The methods are not (necessarily) forward looking – In particular: demographic trends are not taken into account • The human capital estimate is a residual! • There is (usually) no attempt to isolate the contribution to human capital from education PDM MBA 253 .

i.The Jorgenson-Fraumeni Approach • Based on human capital theory • Output of the education sector in a year is the increment in human capital stock of the population. the increase in productive capacity over the lifetime • The distribution of individual productivity is measured by the corresponding wage differentials • Relies upon the assumption that market wages reflect the productivity gains attributable to education • The measure does not capture possible externalities from investments in education PDM MBA 254 .e.

human capital measured by the JF approach will ceteris paribus decline.The JF Approach: Strengths and some critical questions • May uncover underlying structural changes. – Educational attainment: if cohorts entering the labor market have chosen types of education with on average lower market value than cohorts leaving. as official statistics? PDM MBA 255 . like – Demographic: if cohorts entering the labor market are smaller than cohorts leaving. • Do relative wages reflect the output of the education sector? • Can we neglect the value of leisure time? (the Australian paper vs. Fraumeni) • How to deal with the value of basic education? • Can the complicated calculations be implemented on a regular basis – ie. human capital measured by the JF approach will ceteris paribus decline.

Human capital measuring: What should be the role and ambitions of NSOs? Three possible strategies: 1. Full integration of capital measures in the National Accounts PDM MBA 256 . Developing methods for output measures in the Government sector (NA) 3. Developing databases on human capital for research and analyses 2.

transformation and reorganization of HR • Redefining the Business and Focusing on the Customer • Teaming and Supporting Nonhierarchical Structures • Leadership and Shared Values • A Change in Language PDM MBA 257 .

NEW ROLES FOR HUMAN RESOURCES • Functional Responsibilities Shift to the Line • Human Resources As a Business Partner • A Focus on Career and Competency Development • Pay for Skills • A More Egalitarian Organization PDM MBA 258 .

Talent forces for tomorrow PDM MBA 259 .

the common foundation of all successful recruiters PDM MBA 260 .how • • • • Passion to our recruitment industry Personal goals Embrace fear of technology Hard work.

naturalresources and other areas force businesses to continually look ahead and adapt . The most competitive organisations recruiters will be leaders in this space. recruiting innovation responds. technology.Truth • Force in play changes in behavior. PDM MBA 261 . demographics. Wherever talent scarcity takes hold.

why • Changes in behavior. technology. demographics. natural resources and other areas PDM MBA 262 .

control and transparency • Brand matters PDM MBA 263 .More changes • Arogance of supply • Unnecessary monetized frction points • Talent requires privacy.

PDM MBA 264 .