MBA 405: Talent management

Faculty name: Ms. Neetu

Deptt. of mgmt studies

PDM MBA 1
 syllabus
• 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

PDM MBA 2
Unit-1

PDM MBA 3
 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

PDM MBA 4
 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

PDM MBA 5
 What is Talent?

According to McKinsey; talent is the sum of

• a person’s abilities,
• his or her intrinsic gifts,
• skills, knowledge, experience ,
• intelligence,
• judgment, attitude, character, drive,
• his or her ability to learn and grow.

PDM MBA 6
 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)

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TALENT MANAGEMENT

PDM MBA 8
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
• There are different approaches to talent management in
organizations
• A successful TM model has to link
1. TM creed (culture, values, expectations) with
2. TM strategy and
3. TM system. (Lance and Dorothy Berger, 2011)

The values, expectations and elements of

– the desired culture and
– the business excellence
should be embedded in HR systems as selection criteria,
competency definitions, performance and promotion
criteria and development processes.
PDM MBA 10
 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
 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,
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, train, develop, reward)

PDM MBA 12
 Assessing the Employees

Superkeepers- greatly exceed expectations (3-5%)

Keepers – exceed expectations (20 %)
Solid citizens- meet expectations (75 %)
Misfits- below expectations (2-3 %)

(Berger and Berger, 2011)

PDM MBA 13
 Allocating Investments in People
Superkeepers- receive about 5 % of all the resouces; need very high
recognition, compensate much more than the pay market, promote very
rapidly

Keepers –receive about 25 % of all the resources, need high recognition,

compensate more than the pay market, promote rapidly

Solid citizens- receive about 68 % of all the resources, need recognition,

compensate at the market level or just above

Misfits- receive about 2 % of all the resources for some, compensate at

below market average

(Berger and Berger, 2011)

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 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. The owner of the career plan that is

aligned with the succession plan
• Boss. The primary assessor
• Boss’s boss. The key link in the vertical
succession and career plan
• Boss’s peer group. Source of potential new
assignments in the same or other function
PDM MBA 17
 Diagnostic Tools

SuperkeeperTM reservoir.
SuperkeepersTM are employees whose performance greatly exceeds
expectations, who inspire others to greatly exceed expectations, and who
embody institutional competencies.
Keeper Key position backups.
The “insurance policies” that ensure organization continuity. Every key position
should have at least one backup at the “Keeper” (exceed job expectations)
level.
Surpluses.
Positions with more than one replacement for an incumbent. While ostensibly a
positive result of the talent management process, 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.
Voids. Positions without a qualified backup. Determine whether it will transfer
someone from the surplus pool, develop alternative candidates, or recruit
externally.

PDM MBA 18
Blockages.
Non-promotable incumbents standing in the path of one or more
high-potential or promotable employees.
Problem employees.
Those not meeting job expectations (measured achievement or
competency proficiency). Give opportunity to improve,
receive remedial action, or be terminated. The time frame
should be no longer than six months.

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 Monitoring Processes

Evaluate the results of talent management system on a

regular basis for
• quality,
• timeliness and
• credibility

PDM MBA 20
 What is competency?

Competencies are the core elements of talent

management practices
They are the demonstrable and measurable
knowledge, skills, behaviors, personal
characteristics that are associated with or
predictive of excellent job performance.
Examples
– Adaptability, teamwork, decision making, customer
orientation, leadership, innovation etc.

PDM MBA 21
 Competencies and
Definitions
Action Orientation
Targets and achieve results,overcomes obstacles, accepts responsibility, creates a
results-oriented environment.....
Interpersonal Skill
Effectively and productively engages with others and establishes trust, credibility,
and confidence with them
Creativity/Innovation
Generates novel ideas and develops or improves existing and new systems that
challenge the status quo, takes risks, and encourage innovation
Teamwork
Knows when and how to attract, develop, reward, be part of, and utilize teams to
optimize results. Acts to build trust, inspire enthusiasm, encourage others, and
help resolve conflicts and develop consensus in supporting higperformance
teams

(Berger and Berger, 2011)

PDM MBA 22
 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, principles,

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.
 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, competencies focus on outcomes)
 Integrates HR strategy with business strategy –both focus on outcomes

PDM MBA 23
 Why Competencies?

The competency model serves as the foundation

upon which all workforce processes are built.

Competencies promote alignment of talent

management systems by creating a common
language that enables these systems to talk with
each other! That is, results of one TM system is
used as the input data for the following TM system.

PDM MBA 24
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, career planning and development
– Functional (technical)competencies (specific for each job
family)

PDM MBA 25
 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
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, mission
and strategic plan of the organization
 Verify the competencies with a larger sample of the organization

PDM MBA 27
Choosing Competencies

Before choosing competencies in an organization following

requirements must have been completed:
• Establishment of vision, mission, values
• Strategic business goals
• Identification of the tasks, responsibilities and outcomes
expected from each position
• Identification of the superior (exemplary) performers
• Satisfactory competency library

PDM MBA 28
 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, developing your talent is not enough, the organizations need to take all
the measures to motivate, 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
Talent Management
Model

PDM MBA 30
 Talent Management
Model
• Expectations for the future. 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
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Talent Management
Cycle

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 Talent Management Process
Organization
Analysis
-Job descriptions
-Job spesifications
Analysis
Performance Potential
ool s
Evaluation Candidates
ntT
Buss. Results Assessing the Emloyees e
Personal es sm
Development A B C D A ss
Activities

Assessment
Potancial Candidates
Career
and
Committees
Succession Lists

Development
Approval
of the Talent
Lists Development
Programs

PDM MBA 33
January - March April May on......
 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, mentoring, 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
 Integrated Functions of
TM
• Performance appraisals, assessments of
potential, competency evaluations, career
planning, and replacement planning (the core
elements of talent management) should be
linked to each other.
• Stand alone functions are destined to end with
failure

PDM MBA 35
 HR and TM

HUMAN RESOURCES TALENT MANAGEMENT

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

PDM MBA www.studygalaxy.com

37
Why is Talent Management important?

• Recruitment and retention

• Getting the best of all employees
• Helps to deliver corporate objectives and plans
• Productive, committed working environment
• Succession planning

PDM MBA 38
 Recognize
talent

Change
Attracting
Organization
Talent
Culture
WAYS TO
MANAGE
TALENT
Managing Selecting
Succession 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
 Cont…
• Infosys: widespread use of intranet, tele and video
conferences, employee surveys, Brown Bag Lunches etc. to
ensure two way communication

• Phillips Software: “Express Yourself” and “Watch this

Space”
boards for employees to write their views

• Elais, Greece: Lunch with CEO at a upmarket restaurant

IKEA, USA: “Express Yourself Postcards” to CEO

• Forbes Marshall: Monthly Meetings; Quarterly Video

Magazine
PDM MBA 41
 Cont…
• Performance Management
• FedEx: “Professional Development Guide”; Balanced
Scorecard (People-Service-Profit) based approach to
employee
goals; 90% of senior positions filled thru internal
promotions

• Aditya Birla Management Center: Common form and

scale for
all; right placement or outplacement for non-performers

PDM MBA 42
 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; Annual Appraisal survey
•
• Adobe: Job rotation and alternative career path
• Godrej Consumer Products: Normalization by Leadership level;
• Total Talent Management process for assessing growth
• potential; use of 360 degree for senior managers

PDM MBA 43
 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
 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, on-the-job training
and project-based learning leads to effective individual and
team performance (66%)
• Promoting mentoring, coaching, 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 Transforms
Healthcare Recruiting, 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
 What does good Talent
Management need?
• Leadership

• Fairness

• Strategy

• Comprehensiveness

PDM MBA 48
 Few Challenges…….
• 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
 Understanding Talent Management
& The Global Scenario
Global Talent Scenario - Demographic shifts in the workforce

Developed Markets - Aging Workforce + Less skilled workforce = TALENT

CRISIS
Emerging Markets - Wage inflation and attrition
Can these be an alternative labor market ?

Labor Force Make-Up Percentage Labor Force Percentage Change Labor Force Growth Rates
Labor Force Make-Up Percentage Labor Force Percentage Change Labor Force Growth Rates
Change By Age Group By Age Group Percentage Change
Change By Age Group By Age Group Percentage Change
(projected 2002-2012)
(projected 2002-2012) (projected 2002-2012)
(projected 2002-2012) (projected 2002-2012) (projected 2002-2012)

30% 2002
30% 2002 19%
2012 65 +
19% Total 12 %
2012 65 + Total 12 %
55 to 64 44%
55 to 64 44% White 8.5 %
20% 45 to 54 11% White 8.5 %
20% 45 to 54 11%
- 9% 35 to 44 Black 19.3 %
- 9% 35 to 44 Black 19.3 %
25 to 34 8%
10% 25 to 34 8% Hispanic 32.6 %
10% 16 to 24 7% Hispanic 32.6 %
16 to 24 7%
Total 12% Asian 50.8 %
0 Total 12% Asian 50.8 %
016-24 25-34 35-44 45-54 55+
16-24 25-34 35-44 45-54 55+
PDM MBA 50
Source: U.S. Bureau of Labor Statistics
 Understanding Talent Management
& The Global Scenario

Global talent scenario- what is likely to happen

– Automation, reengineering, innovation, high-yield based jobs in developed Markets.
– Out sourcing of work from developed to emerging markets.
– Companies migrating to developing countries.
– Higher growth rates in emerging markets adding to demand.
– Unmanaged immigration to developed countries
– Technology and information penetration adding to transparency & instability
– Diminished ambitions and enhanced expectations, dissatisfaction and instability.
– 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 3) TECHNOLOGY

PDM MBA 51
 Understanding Talent
Management
& The Global Scenario
Why Talent Management ?

– Create Strategic Recruitment Plans to attract the best talent.

– Identify and develop LEADERS at all levels.

– Create “great places to work” - attract & retain the best talent.

– Direct the positive energy of people to the right areas.

PDM MBA 52
Elements of Talent
Management

Talent
Profiles and
Objectives

PDM MBA 53
 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, Innovation, Quality.

• What are the Financial consequences of talent decisions on our business?

PDM MBA 54
• Is anyone in the Boardroom worried about the status of the “talent pool” ?
 POWERHUNT

What is POWERHUNT?
An in-house Recruitment / Talent Management software driving over all Business
Strategy with inbuilt business intelligence.

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.

INNOVATION MOMENTUM
PDM MBA TECHNOLOGY 55
Talent Management – Integration
Management

PDM MBA 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
 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.

PDM MBA 59
Traditional Talent Management

Building Sustainable Leadership &

Futuristic Talent Management Strategy

Focus: Managing Best People

Futuristic Talent Management

Commitment Capability Alignment

Enhanced Performance
PDM MBA 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
 Work Force Diversity –
A Definition
• Not all countries are multicultural
• Some countries are homogeneous
– Japan, China

PDM MBA 15 - 63
 Work Force Diversity –
A Definition
• The U.S. 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 - 64
Figure 15.1 Foreign-Born Population Trend

Source: Reprinted from April 24, 2000 issue of Business Week by special permission,
copyright
PDM MBA © 2000 by The McGraw-Hill Companies,
15 - 65 Inc.
 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, U.S. organizations attempted to
assimilate everyone into one way of doing
things

PDM MBA 15 - 66
 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
 Total Person Insight

No matter who you are, you’re going to have

to work with people who are different from
you. You’re going to have to sell to people
who are different from you, and buy from
people who are different from you, and
manage people who are different from you.
J.T. “Ted” Childs, Jr.
Vice President, IBM Global Workforce
Diversity
PDM MBA 15 - 69
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
 Primary Dimensions of
Diversity
• Form the individual’s self-image
• The filters through which each individual
views the world
• Interdependent, no one dimension stands alone
• Each exerts an important influence on life

PDM MBA 15 - 72
 Secondary Dimensions
of Diversity
• Elements that can be changed or modified
– Health habits
– Religious
– Education/training
– Appearance
– Relationship status
– Ethnic
– Communication style
– Income
PDM MBA 15 - 73
 Figure 15.2 Primary and Secondary Dimensions of Diversity

PDM MBA 15 - 74
 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, both dimensions of
diversity can become roadblocks to further
cooperation and understanding

PDM MBA 15 - 76
 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
 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 - 78
 Prejudiced Attitudes

• When we bring stereotypes to the workplace,

we are likely to misinterpret or devalue some
primary and secondary differences, even after
we have been exposed to them

PDM MBA 15 - 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
 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 - 82
 Total Person Insight

So long as black and white Americans see

each other as stereotypes and not as people
with the same dreams, ambitions, and values,
this nation will be frozen in suspicion and
hate.
Vernon E. Jordon, Jr.
Attorney and Civil Rights Leader

PDM MBA 15 - 83
 How Prejudiced Attitudes Are
Formed and Maintained

• Major factors that contribute to formation of

prejudice:
– Childhood experiences
– Ethnocentrism
– Economic factors

PDM MBA 15 - 84
 Childhood Experiences

• The emotions of prejudice are formed in

childhood
• Children learn attitudes and beliefs from
family, friends, and other authority figures
• They learn how to view and treat different
racial, ethnic, religious, and other groups

PDM MBA 15 - 85
 Childhood Experiences

• Prejudices from childhood are alterable

• Prejudice continues until new information
replaces old perceptions

PDM MBA 15 - 86
 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
 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 - 88
 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

PDM MBA 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

PDM MBA 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

PDM MBA 15 - 92
 Discrimination
Denial of On the basis of
• Employment • Race
• Promotion • Lifestyle
• Training • Gender
• Other job-related • Other characteristics
privileges

PDM MBA 15 - 93
Types of Discrimination

• Gender • Disability
• Age • Sexual orientation
• Race • Other subtle forms
• Religion

PDM MBA 15 - 94
 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
 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 - 96
PDM MBA 15 - 97
 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
 Myth of Race

• The use of racial categories by the U.S. 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 - 99
PDM MBA 15 - 100
 Myth of Race

• Individual difference are greater than group

differences
• Wide variety with any group
– i.e. Asian—Filipino, Chinese, Japanese, Korean
– Linguistic, cultural and physical diversity
• Increase in mixed-race identity

PDM MBA 15 - 101

 Race as Social Identity

• Although not scientifically defensible

• Race is “real” socially, politically, 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
 Religion

• Religious discrimination has been an issue

throughout history
• Intolerance for other religions
• Intolerance for different denominations within
a religion
– i.e. Christians—Catholics, Mormons, Southern
Baptist

PDM MBA 15 - 103

 Religion in the U.S.

1. Christianity
2. Judaism
• History of Anti-Semitism
3. Islam
• Expected to surpass Judaism

PDM MBA 15 - 104

 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

PDM MBA 15 - 107

States Whose Hate-Crime
Laws Include
Sexual
Orientation
WA
Source: MT
From USA Today, OR
ID
May 18, 2000. WY
Copyright 2000,
USA Today. NV
UT CO
Reprinted with CA
permission.
AZ NM

PDM MBA 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

PDM MBA 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
PDM MBA 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
 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 - 112

 Valuing Diversity

• Valuing diversity means that an organization

intends to make full use of all employees
– Talents
– Ideas
– Experiences
– Perspectives

PDM MBA 15 - 113

 Valuing Diversity

• To remain competitive, organizations must

recognize and hire the best talent regardless of
– Skin color
– Gender
– Cultural background

PDM MBA 15 - 114

 The Economics of
Valuing Diversity
• Valuing diversity is an issue of many
dimensions
– Legal
– Social
– Moral
– Economic

PDM MBA 15 - 115

 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 - 116

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

More and more, organizations can remain

competitive only if they can recognize and obtain the
best talent; value the diverse perspectives that come
with talent born of different cultures, races, and
genders; nurture and train that talent; and create an
atmosphere that values its workforce.

Lewis Brown Griggs and Lente-Louise Louw

Authors, Valuing Diversity: New Tools For A New Reality

PDM MBA 15 - 118

 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

 Managing Diversity

• Process of creating an organizational culture

where the primary and secondary dimensions
of diversity are respected
• As workforce becomes more diverse, this
becomes more challenging

PDM MBA 15 - 120

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

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, study

PDM MBA 15 - 123

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

PDM MBA 15 - 124

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

PDM MBA 15 - 125

Figure 15.4
The Three Pillars
of Diversity

Figure 15.5

PDM MBA 15 - 126

 Organizational
Commitment
• Diversity programs seen as an event, or quick-
fix 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 - 127

 Employment Practices

• Actively recruit diversity

• Plug into alternative networks
• Foster a climate for retention

PDM MBA 15 - 128

 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 - 129

 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 - 130

• insert table 15.5, page 379
• Organizations Subject to Affirmative Action
Rules and Regulations

PDM MBA 15 - 131

 Protected Individuals

• Sex/gender
(women, 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 - 132
 Protected Individuals

• Individuals with disabilities

(physical or mental)
• Sexual orientation
(some state and city, not federal)
• Military experience
(Vietnam-era veterans)
• Marital status
(same-gender couples; some states, not federal)

PDM MBA 15 - 133

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

PDM MBA 15 - 134

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

PDM MBA 15 - 135

 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 - 136

 The Affirmative Action
Debate
• Common arguments
– Preferences are discriminatory
– Preferences do not make sense, given changing
demographics
• The debate will continue

PDM MBA 15 - 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

 Summary

• Secondary dimensions include

– Health habits
– Religious beliefs
– Ethnic customs
– Communication style
– Relationship status
– Income
– General appearance
– Education and training
PDM MBA 15 - 140
 Summary

• Prejudice and discrimination are major barriers

to effective human relations
• Prejudice is an attitude formed partly on
ignorance, fear, and cultural conditioning

PDM MBA 15 - 141

 Summary

• Prejudiced people often see others as

stereotypes rather than unique individuals
• Discrimination is a behavior based on
prejudicial attitudes

PDM MBA 15 - 142

 Summary

• Groups protected by law from discrimination

include
– Gender
– Age
– Race
– Abilities
– Religion
– Sexual orientation
– Subtle forms
PDM MBA 15 - 143
 Summary

• 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

PDM MBA 15 - 144

 Summary

• 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

PDM MBA 15 - 145

 Summary

• Diversity training programs should become an

internal process rather than one event
• Companies need to seek out and employ
people from diverse backgrounds

PDM MBA 15 - 146

 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 - 147

 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

 Cont..

•MANAGING TALENT PROCESSES

Performance management,
Succession planning/decision analytics,
Targeted selection and talent reviews,
Development planning/support (including learning management),
Career development,
Workforce planning, and
Recruiting.
•TECHNOLOGY SUPPORT

PDM MBA 149

Uint-2

PDM MBA 150

Talent Procurement
and Deployment

•Identifying talent needs,

•sourcing talent;
•developing talent,
•deployment of talent,
•establishing talent management system,
•talent multiplication

PDM MBA 151

Identifying talent needs

PDM MBA 152

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, behavioral based interviews, multi-rater
assessment tools

153 PDM MBA

 Assessment Benchmarking
Identify
Define
incumbent
performance
sample
standards

Identify Gather performance data Each employee completes

appropriate for each employee assessment(s)
assessments

Match employees
performance data with
their assessment data
Statistically analyze data to
determine which
assessment(s) scale(s)
predict on-the-job
Develop recommendations and
performance
plans regarding future
assessment and selection

154 PDM MBA

 Assessment/Development Centers?
What is an assessment/development center?
An assessment/development center is a process designed to identify an individual’s strengths,
weaknesses, and potential in a current or future role.

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

 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?

Discipline Understanding
Trainable

Do they have the experience

and understanding necessary?
Knowledge & Experience

Capability Can they demonstrate the

behaviours necessary for high
Demonstrated competencies performance?

Attributes Do they have development

potential?
Behaviours that infer potential
Untrainable

Drivers

Will aspects of the role

Motivational Fit motivate them?

Does the role meet

Career Fit their current career
objectives?

157 PDM MBA

 …and Tools To Assess Each Area

Resume Screening
Technical Skills Technical Tests

Discipline Understanding Preferential

Trainable

Knowledge & Experience Interviewing

Capability Behavioural
Demonstrated competencies Interviewing

Attributes
Psych Assessment
Behaviours that infer potential
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
159 PDM MBA
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
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, RAT, simulation exercises, etc.)

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

43%
45%
40%
35%
30% 25%
25% AC
20% Interview

15%
10%
5%
0%

The turnover of personnel was reduced by 41%.

161 PDM MBA

 Case Study B –
Talent Management Assesses Future Leaders

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

162 PDM MBA

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, values and leadership framework. 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.
• 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, while others had already attained senior-level positions. The type of
assessments administered varied accordingly.
• Overall, about 85 candidates went through a series of ability and personality tests,
simulation exercises, business case studies, interviews and group discussions.

163 PDM MBA

Case Study B -
Talent Management Assesses Future
Leaders

Results
• Hudson provided comprehensive reports about the candidates’ aptitude for performing
effectively in future leadership roles. 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, 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.

164 PDM MBA

 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, 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, always start with the right competencies
for each role and build from there
• Always remember, high potential is developed through a
solid understanding of competency and behavior

165 PDM MBA

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

PDM MBA 166

 Human Capital: Three
Interdependent Activities

Exhibit 4.2
PDM MBA 4-167
 Attracting Human
Capital
• Hire for attitude, train for skill
• Emphasis on
– General knowledge and experience
– Social skills
– Values
– Beliefs
– Attitudes

PDM MBA 4-168

 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

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

PDM MBA 4-171

 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

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

PDM MBA 174

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

PDM MBA 175

 Cont…

• A study was conducted by LBA consulting

group in1990’s. The study examined
organization that hadsurvived and prospered,
and those had failed, over atime period of 25
years. The result of the studysuggested that six
human resource condition had to bemet in
employees selection and
performanceevaluation processes.

PDM MBA 176

 Cont..
• 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

 Outcomes

• The identification, selection, development, and

retentionof super keepers.
• The identification and development of high-
qualityreplacement for a small number of
position designated askey to current and future
organization success.
• The classification of and investment in each
employee based on his/her actual and/or
potential for adding valueto the organization.
PDM MBA 178
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, in the right places, at theright
times. Addressing the critical success factors
helpseliminate gaps and deficiencies in the
skills, knowledge,and competencies of
employees The two success factorsusually
work together.
PDM MBA 179
• 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.

PDM MBA 180

 Cont…

• 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
PDM MBA 181
 Cont..

• 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

PDM MBA 182

 Cont..

• 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:

PDM MBA 183

 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:

PDM MBA 184

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

PDM MBA 185

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

• Lack of leadership
• Lack of support
• Lack of shared goals, vision, 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
6 steps in deployment
of talent
1. designing the process
2. ensuring strategic integration
3. assessing the current situation
4. identifying and assessing talented individuals
5. implementation: planning and undertaking
development
6. evaluation

PDM MBA 190

 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

 3. 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, 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

 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

 6. Evaluation

• establish clear timeframes

• for the organisation, evaluation could be in
terms of whether organisational risk has been
reduced or minimised.
• for the individual, evaluation includes self-
assessment about the degree of capability
development and demonstrated changes in
performance and behaviour in the workplace.

PDM MBA 197

 Talent Acquisition

“Organizations need to get the right people on the bus and in the right seats to succeed.”

“Good coaching, training, mentoring, etc., is not likely to make up for bad selection.”

“Hire hard….Manage easy!”

- Collins, J. (2001). Good to great.

PDM MBA 198

Talent Acquisition

Individual Organization
ues
l
u es ality Va
l o n
Va Exp Pers
Rew
ecta ar ds Str
tion u ctu
s re
Intere Abilitie
s
Knowle
s ts
u lture Man
agem
d ge C
ie s

tives
ent
Goals eg
at
Str
s

Objec
ill
Sk

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 Talent / Employee Engagement

Employee Engagement is inversely proportional to stress.

• 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

What drives it?

Organisational Commitment Service 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?

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Critical Elements of Attracting and
Retaining TOP Talent

PDM MBA 203

Talent retention

Inclusive Growth

PDM MBA 204

 Retention Strategies

Maintain Company Image.

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

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 Cont…

• Leadership – the maxim - Employees join

companies and Leave Managers.
• Learning opportunities – Engagement
• Performance recognition and rewards.
• Individual and independent projects.
• Individual contribution.

PDM MBA 206

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

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 THE LINE MANAGER AS AN
EPLOYEE ENGAGEMENT DRIVER

• Managers have direct one-on-one relationship with

employees through use of open communication.
• Managers are a conduct for the organisation’s
strategic priorities, visions and values.
• Setting smart goals with their teams. Taking owners
of continuous development of their teams through
performance management.
• Challenge themselves and their staff to stretch
performance.

PDM MBA 208

 EMPLOYEE ENGAGEMENT
• Become a high performance organisation

Capable
 Well Led
Clear  Equipped
•Shared vision mission
 Well Managed
values, strategies
•Priorities set clear/smart
goals

High Performance
Committed
• Engaged
•Accountable
•Empowered
• Equipped - resources
PDM MBA 209
Need to engage the hearts, minds and capabilities talented people
 Money can’t buy loyalty
• Care and concerns
Employees want training to develop their long term, careers. They also want family-friendly benefits
and concern in personal emergencies. Care and concern are global drivers and appear in the top two
slots in loyalty surveys around the globe.
• Fairness at work
Fair work policies and treatment of employees are the two main ways employees evaluate their jobs.
While fair pair is not a key driver, 53% of respondents regard their pay as fair.
• Communication
Employees want the right amount of information , in timely manner and, to a lesser extent, to be
communicated within a way that considers their feelings.
• Accomplishment/recognition
• The biggest way to give employees a sense of accomplishment is to provide useful feedback about
the performance at work. Other drivers include rewarding excellent achievements and noticing lesser
achievements.
• Trust
Employees want to be encouraged to try new ways of doing things, 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

Organisational Culture Key to Talent
Management

Organisations increasingly recognise the need to create a

culture which makes employees feel valued, a culture that
fully leverages the skills of their human capital.
Organisations whose culture values the employees are in a
better position to achieve the desired business results through
their employees.
Define the desired culture for keeping talent.
Culture is dynamic and e… over time.
Creation of a conducive environment for success.
Managers have a critical role to play in instilling the desired
culture.
PDM MBA 211
 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 information is disseminated,
• how people are led to feel about their work,
• how it values them, and
• how the organisation relates to the world’’.

PDM MBA 212

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

PDM MBA 213

 Conditions for talent retention

• The individual
• The environment obtaining
• Industry status
• Employees understand the vision, mission, 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.

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 Cont..

• The organisation : employer branding

• Have resources to perform.
• There is recognition of performance
• Conducive organisational structure.
• Attractive employee value proposition
• Keeping up with technological advances

PDM MBA 215

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

PDM MBA 216

Unit-4

PDM MBA 217

 The
Figure 11.1,
Management Cycle
Operating plans
and budgets

Project
management

Needs
Assessment

Performance
Measurement

PDM MBA 218

 The perfect world

In a perfect world, a measurement system

will actively promote performance
improvement by;
• measuring what matters,
• providing corrective feedback and positive
reinforcement to enthusiastic people who
enjoy being measured and take improvement
on as a challenge.
PDM MBA 219
 ATTRIBUTES OF A GOOD
MEASUREMENT SYSTEM

• An effective performance measurement system

should have the following attributes.

• FOCUS ON EFFECTIVENESS
– 1) We have a need to measure better.
– 2) We have a need to measure less.

• FOCUS ON THE FUTURE

PDM MBA 220

 ATTRIBUTES OF A GOOD
MEASUREMENT SYSTEM

• FOCUS ON OBJECTIVES, “KEY

RESULT AREAS”
– KRAs are those functions or divisions
of performance in which your
organization must continually improve
to be successful.

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

• response time records

• turn around time records
• cycle time records
• project completion dates
• meeting scheduled time records

PDM MBA 224

 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.
• Customer returns or warranty claims.

PDM MBA 225

VOLUME INDICTORS

• Measures the amount (Number of) of outputs

or results from a specific activity or program.
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

 INVESTMENT
INDICATORS
• Measures the amount of resources expended
on a specific program or activity or the unit
cost (cost/number of units produced ($)).
– 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.

• Notice that the financial measures are “per”

something

PDM MBA 227

 ‘Six Steps’ of a
Measurement System
1. Separate Strategic Goals Into Input and Output
Dimensions
2. Develop Output and Results Measures for each
goal
3. 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. Build the Culture
PDM MBA 228
Step 1, Separate Strategic Goals Into
Input and Output Dimensions

• Following from Vision, Mission and Values,

organizations create strategic goals that identify
“Key Result” areas of the organization where
change and improvement is possible and desirable.

• Our first step in developing measures to reflect the

goal is to dissect the goal into its input and output
dimensions.

PDM MBA 229

Figure 11.2, Broad measurement
concept of inputs

unit cost efficiency

Input How well are materials used, (excessive waste)
dimension How well is labour used, (excessive idle time)
How well is overhead used (idle capacity)

PDM MBA 230

Figure 11.3, Broad measurement concepts of
Outputs

Internal maintaining and improving quality

Results lower consumer prices

Output
Dimension

financial returns
External
Results
improve market share
meet current and future demand

PDM MBA 231

Step 2, Develop Output
Measures or Each Goal
• Outputs are accomplishments. In most
organizations, accomplishments can be
categorized into three groups.

– Investment returns
– Customer Satisfaction
– Social Impacts

PDM MBA 232

 Measures of
Figure 11.4,
outputs or Results.
OUTPUT MEASURES

PERFORMANCE GOAL
MEASUREMENT PERFORMANCE
CATEGORY (changes of specific amounts over
CONCEPT MEASURE
specific time frames)

% return on
investment
All should increase by a specific
Financial % return on assets
% change, to be accomplished
returns employed
by a specific date.
Profit margin on
sales
Investment The proportion of the market
Returns % market share share against the competition
relative to the should increase.
Market competition The proportion of the market
share % market share share relative to the total market
relative to total should increase at a rate that is
market size faster than the rate of change in
total market size.
PDM MBA 233
Measures of outputs or
Results
Rejection rates in
Product or
the production Both should decline by a specific
service
process amount in a specific timeframe.
quality
Sales returns

Deliver on
Customer Backorders should decline and
time and in Backorder and
Satisfaction delivery cycle times should
sufficient delivery statistics
improve.
quantity

Consumer Retail price by The retail price matched to value

prices product should decline.

Children using these toys should

Child Improvement in
show a measured improvement
development reading skills
in reading skills
Social
Benefits
Impact on landfills
Environment The proportion of toys presented
when the toy is
al impact for re-cycling should go up.
finished
PDM MBA 234
Step 3, 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

 Measures of
Figure 11.5,
Inputs or Efficiencies INPUT MEASURES for “UNIT COST EFFICIENCY”

MEASUREMENT
CATEGORY PERFORMANCE MEASURE PERFORMANCE GOAL
CONCEPT

Material and labour cost and or

Direct materials and direct
Materials and consumption per unit should
labour per unit, expressed in
labour decline over a specified time
both dollar and quantity terms
period

Financial
Operating Overhead consumed per unit
Overhead charged per unit
Resources produced should decline

Overhead
%capacity utilized should
% utilization of capacity increase to or remain at
optimal levels

Financial Capital Dollars per unit of capital

Capital investment in Dollars of capital investment invested should decline over
Resources operating assets per unit produced time as capital resources are
used more efficiently

Management estimates of the

Other Non-financial resources of talent and The amount consumed will
resources consumed energy and other non- increase as the project is
Organizational by the performance financial resources that have developed and decrease after it
Resources area been dedicated to this is implemented
performance area
PDM MBA 236
Step 4, 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, we need to apply
the SAVI framework to categorize the
measures as to Speed, Accuracy, Volume
and Investment.

PDM MBA 237

 Linking Output
Figure 11.6,
Measures to SAVI OUTPUT MEASURES

MEASUREMENT
CATEGORY
CONCEPT
PERFORMANCE MEASURE SAVI

% return on investment
financial returns % return on assets employed Accuracy
Profit margin on sales
Investment
Returns
% market share relative to the competition
market share
% market share relative to total market size
Volume

Product or service Rejection rates in the production process Accuracy &

quality Sales returns Volume

Customer Speed &

Deliver on time and
Satisfaction Backorder and delivery statistics
in sufficient quantity Volume

Consumer prices Retail price per product Investment

Child development Improvement in reading skills Accuracy

Social Benefits
Environmental
impact
Impact on landfills when the toy is finished Volume
PDM MBA 238
 Linking Input
Figure 11.7,
Measures to SAVI
INPUT MEASURES for “UNIT COST EFFICIENCY”

MEASUREMENT
CATEGORY
CONCEPT
PERFORMANCE MEASURE SAVI

Materials and Direct materials and direct labour per unit, in

labour both dollar and quantity terms.
Investment

Financial
Operating Overhead charged per unit. Investment
resources
Overhead

% utilization of capacity Volume

Financial Capital Capital investment

Resources in operating assets
Dollars of capital investment per unit produced Investment

Other Non-financial Management estimates of the resources of talent

organizational resources and energy that have been dedicated to this Investment
resources consumed performance area.

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

 Step 5, Use an Effective
Recognition System
• Use Measurement to Initiate Change

– An effective measurement system will use the measured

results as a management tool.
– Every result should have an automatic intervention
strategy.
– When results are as expected we should offer
congratulations and reinforcement to keep it going,
– when results are less than expected we should quickly
isolate the cause and correct the process
PDM MBA 241
 Step 6, Build the culture

• Good systems need good people. There is no sense in

examining a process unless at the same time you
examine the people who govern the process.
• Improvement does not take place on paper.
• Improvement happens when people employ enthusiasm, dedication,
commitment, leadership and morale in their daily routine.
• 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.

PDM MBA 242

 Closing remarks
• In the beginning of this chapter you were challenged
to find measures and see the resulting behavior.
– 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, which does he deliver first?
And what happens if Pizza delivery people are offered a
cash bonus for every delivery made within 30 minutes, and
what does this do to pizza quality?

PDM MBA 243

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

PDM MBA 244

 Talent Metrics:

• Talent Metrics: Tangible Data (Easy to

measure, Low Value).
• Talent metrics (also known as workforce
analytics) measures tangible data such as
headcount, attrition, and compensation. This is
appropriate to recommend when you are
selling to HR

PDM MBA 245

Measurement of Human Capital and
Official Statistics

PDM MBA 246

Measurement of human
capital

1. Measuring Australias Human Capital Development: The

Role of Post-school Education and the Impact of
Population Ageing (ABS)
2. Measuring the Education Output of Government Using a
Human Capital Approach: What might Estimates Show?
(Fraumeni and NBER)
3. The Measurement of Human Capital Development, 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

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, 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

 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
 The National Wealth Approach:
Calculating human capital residually

Three steps:
1. Calculate resource rents from all natural resources
(renewable and non-renewable)
2. Decompose Net National Income (NNI) into the returns
from the inputs i.e. physical capital, natural resources
etc. Human capital is calculated as the residual
3. 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
PDM MBA
• 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
253
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, i.e. 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

The JF Approach: Strengths and
some critical questions
• May uncover underlying
structural changes, like
– Demographic: if cohorts entering
the labor market are smaller than
cohorts leaving, human capital
measured by the JF approach will
ceteris paribus decline.
– Educational attainment: if
cohorts entering the labor market
have chosen types of education
with on average lower market
value than cohorts leaving,
human capital measured by the
JF approach will ceteris paribus
decline.
PDM MBA
• 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. as official statistics?
255
Human capital measuring: What
should be the role and ambitions
of NSOs?

Three possible strategies:

1. Developing databases on human capital for
research and analyses
2. Developing methods for output measures in
the Government sector (NA)
3. Full integration of capital measures in the
National Accounts

PDM MBA 256

 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

 how

• Passion to our recruitment industry

• Personal goals
• Embrace innovation- no fear of technology
• Hard work- the common foundation of all
successful recruiters

PDM MBA 260

 Truth

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

PDM MBA 261

 why

• Changes in behavior, technology,

demographics, natural resources and other
areas

PDM MBA 262

 More changes

• Arogance of supply
• Unnecessary monetized frction points
• Talent requires privacy, control and
transparency
• Brand matters

PDM MBA 263

PDM MBA 264