Talent Management

Human Capital management

What is HCM
 It is an important element of the intangible
assets of an organization. The significance of
human assets explains why it is important to
measure their value as a means of assessing
how well they are used and of indicating what
needs to be done to manage them even more
effectively.
HCM
 It is the combined intelligence, skills and
expertise that gives the organization its
distinctive character. The human elements of
the organization are those that are capable of
learning, innovating and providing the creative
thrust which, if properly motivated can ensure
the long-term survival of the organization.
 This capital is not owned by the organization
but is secured through employment
reationship.
Fundamental objectives of HCM
 Determine the impact of people on the
business and their contribution to
shareholder value
 Demonstrate that HR practice produce value

for money in terms of ROI.

 Provide guidance on future HR and business

strategies.
 Provide diagnostic and predictive data that

will inform strategies and practices designed

to improve the effectiveness of people
management in the organization.
HRM and TM
Relationship between HRM and TM
 Recruitment is the process of attracting the
people to the organization, selecting and on-
boarding the most suitable talent.
How does it relate to talent management?
 We essentially recruit talent and then the

people possessing the talent. Talent is the

innate quality for which the people are
recruited.
Contd..
 Therefore recruitment process of an
organization begins with identification of the
talent gap and then goes on to find and
select the most suitable talent.
Training
 Training, as we know is the process of
facilitating learning and enabling the
development of an individual.
Training for talent management –
 Training in talent management is primarily

focused on bridging the skill and competency

gap that the organization is facing.
Contd…
 This also enables the employees to equip
themselves with upgraded skills and feel
more important in the organization.
 Training is an investment to increase the

asset value of the employees of an

organization.
 Training is an HRM function totally planned

towards building and holding talent.

Compensation
 Compensation, is essentially remuneration for
the work done.
In today’s context of high competition and
knowledge and innovation driven business,
compensation is directed towards talent and
attitude rather than just the skill and ability
to accomplish work.
Contd..
Thus compensation is fixed variably to attract
and suit the more talented and the more
willing.
examples -- wipro, infosys, tcs, mindtree and
so on follow compensation principles to
attract talent that is most suitable to the
organization needs rather than just follow
industry standards.
Retaining
 Retention Policies like Flexi work,
telecommuting, paternity benefit, career
pathing and developmwnt, dual career
management, out - placement , temporary
lay-offs, sabbatical etc. are intitatives that
directed towards motivating and retaining
high-performance talent in the organization.
A sample model to integrate the HRM
and TM activities

Source: michigan model

conclusion
 Thus it can be seen that both HRM and TM
work hand in hand, they intercept in most
areas. Although HRM is mandatory, TM is the
organization’s intention towards the
employees and broadening the boundaries of
HRM
Developing TM System
Introduction
 HR philosophy has undergone a radical change
in the past decade:
• From managing people we have come a long way to
manage talent
• Having talented people available in the organization
is not enough
• Motivate, nurture, help grow the talent
Integrated TM System Model
 Developing Assessment Tools and Measures
 Develop Training and Development
application
 Evaluate each employee
 Prepare Action plan
Developing Assessment Tools and Measures

 Integrating core competencies of employees with its

business strategies
 Need to develop assessment tools and scales for
measuring competencies in the employees as well as
comparing with the standard matrics
 Competency mapping can provide critical information
about the talent available in the organization in
following ways:
◦ Employees who possess competencies up to the received level
or evn more then that of job demands
◦ Employees whose competencies level are below the standard
metrics
◦ Potential forcast
Develop Training and Development application

 Appropriate training program for each

employee for each competency
 Content of the training can fill the gaps

received in the competency mapping process

Evaluate each employee
 Performance appraisal can be used to
measure actual result achieved
 Provides feed back to training program
 Comparing competencies of an individual

before and fter the training

Prepare Action plan

 The performance appraisal can help in

classifying the employees in the following
three groups based on their talent:
◦ Super performers who have exceeded expectations
even can inspire or motivate others to perform
better
◦ Good performers who exceeds or at least meet
expectations
◦ Those who fall below expectations and they need to
develop the necessary competencies
High Return on Talent
 Organization should have systematic
approach to achieve a high return on talent,
the cornerstone of which are:
◦ Idea talent chain
◦ Process for value creation
◦ Idea value cycle
Five links in the Idea Talent chain
 Anticipate
 Articulate
 Acceptance
 Action
 Leverage
Five ways to create value
 Make sure that your idea is Unique, Authentic
and Genuine
 Expose the idea to the right people and involve

them immensely
 Ensure that all information is adequate, accurate

and free flowing to all levels

 Provide the right resources to the people involved
 Expect something unexpected; many failures,

surprises and Setback will come so learn from

these
The Idea Value Chain
 I-invest in yourself
 D-Different thinking
 E-emotional commitment
 A-action
Developing Talent using
competencies
competency
 A competency is a reliable measurable,
relatively enduring characteristic or
combination of characteristics of a person,
team or organization that causes and
statistically predicts a criterion level of
performance.

 Source: Berger & Berger

Core competency
 This is a unique competency or set of
competencies that enable the organization to
have a competitive edge.

 Eg– product concept, people management

etc.
Competency of individuals
 As is the case with organizations, individuals too
possess competencies and core competencies,
these are the unique talents that companies like
apple, 3M, mind tree, google are keen to recruit.

 They, at times recruit talents like artists and

writers though these seem to be the least
required talents in business. These companies
look for these talents for ideas and innovations
so that the competitive edge is maintained.
Competency Gap
 Based on the core competence and business
strategies, organizations identify
competencies required in their employees.

 Recruiting new talent or developing internal

talent to fulfill the requirements identified is
the first step to competency based talent
management
Contd..
 When recruiting is conducted in this manner,
mismatch between identified role and
delivered results are minimised.
 The delivered results are constantly assessed

against the set benchmarks.

 Adjustments and developments are made as

required through training mentoring,

coaching and other initiatives.