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Over the last 20 years, along with the opening of new markets, the economy of the developed
world has undergone a revolution in the type and nature of work, and where and how value is
added. The prime factor is the growth of services. It has changed methods of work, the nature
of production and value creation.

Modern organizations own and employ fewer of the basic inputs of production such as land,
materials, capital and support services than they did 20 years ago. They generally produce a
much smaller proportion of their output directly, in their own facilities. Globalization and
new technology have produced a decisive shift away from centralized production with
repetitive methods to a more devolved system, in which production is shared between many
different units and partners, often scattered round the world, and often independent of the
producer of the final output.

As a result of this transformation there has been a massive shift in the sources of value in
modern businesses. Twenty-five years ago, 80 per cent of a typical company¶s market value
was based on its tangible assets, such as machinery and facilities, and how effectively it
generates returns from these. Only a small part of its value was attributed to intangible assets,
which were largely residual and unrecognized.

But today those proportions have been reversed. On average across all industries, only around
20% to 30% of value is attributable to tangible assets. By far the greatest part of a typical
company¶s value now comes from intangibles such as its unique knowledge of production,
service and delivery methods, its knowledge of markets, its relationships with customers and
suppliers, its brand value and reputation, and of course its workforce capabilities. Almost all
of these intangible assets are driven, in one way or another, by human talent. (Peter Cheese,
2008) 


 

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x  Æ   

·istinctly called human capital management, employee relationship management and


workforce management, among others, talent management is not a new concept, but one that
in the past corporations haven't been set to finalize. In most companies functions such as
recruitment and succession planning, learning and development, performance management,
workforce planning, compensation and other HR or training functions have often been
isolated in departmental silos. While important individually, these programs are usually a
loose array of HR initiatives with little relation to each other. They have a little arrangement
or alignment with the organization's vital few business goals and little real way of measuring
their bottom-line impact.

Organizations are now competing in two markets, one for their products and services and one
for the talent required to produce or perform them. An organization¶s success in its business
markets is determined by its success in the talent market. At the very time that business
markets are fluctuating, talent markets seem to be shrinking. As the knowledge required to
build products and to deliver services increases, the retention of experienced employees
becomes critical to improving productivity and time to market (Bill Curtis, 2009).

The dynamic nature of global business is putting an ever-increasing pressure on companies to


be constantly on the lookout for incomparable talent in a market where demand far exceeds
supply. Given the current focus on the linkage between talent and an organization¶s business
challenges and strategies, effective strategy execution requires sufficient numbers of the right
people with the right skills and knowledge, in the right roles. Pressing business necessities,
such as increasing turnover as the economy improves, globalization of markets and labor
forces, aggressive competition and heightened corporate oversight, have intensified the need
to acquire, develop, deploy, motivate and retain key talent. Getting the right people with the
right skills into the right jobs and is always a challenge. The focus of talent management
tends to be on management, executive positions and highly technical positions, the issues
apply to all jobs that are hard to fill. This has made talent management one of the most
pressing issues facing senior business executives. Linking of HRM with the strategic goals
and business objectives, develop organizational culture that foster innovation and flexibility,
finally getting the competitive advantage is what is organizations focused today by managing
the talent.


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x  
  Æ   

To understand why Talent Management has become so important, we must first look at the
evolution of corporate HR:

 


In the 1970s and 1980s the business function which was responsible for people was called
"The Personnel ·epartment." The role of this group was to hire people, pay them, and make
sure they had the necessary benefits. The systems which grew up to support this function
were batch payroll systems. In this role, the personnel department was a well understood
business function.

 x 
 
In the 1980s and 1990s organizations realized that the HR function was in fact more
important and the concepts of "Strategic HR" emerged. ·uring this period organizations
realized that the HRM had a much larger role: recruiting the right people, training them,
helping the business design job roles and organization structures, develop compensation
packages which include benefits, bonuses and other benefits, and serving as a central point of
communication for employee welfare, health and happiness.

The "Head of Personnel" became the "Head of HR" and played a much more important role
in business strategy and execution of long term strategies. This system built up procedures to
support new role include recruiting and induction, total compensation systems, employee
evaluation systems, and training and development systems, In this role, the HR department
now became more than a business function: it is a business partner, reaching out to support
lines of business.

  Æ   
We are now entering a new era: the emergence of "Talent Management." While strategic HR
continues to be a major focus, HR and T&· organizations are now focused on a new set of
strategic issues:
{ How can we make our recruiting process more efficient and effective by using
"competency based" recruiting instead of sorting through resumes, one at a time?

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{ How can we better develop managers and leaders to reinforce culture, instill values,
and create a sustainable "leadership pipeline?"
{ How do we quickly identify competency gaps so we can deliver training, e-learning,
or development programs to fill these gaps? How can we use these gaps to hire just
the right people?
{ How do we manage people in a consistent and measurable way so that everyone is
aligned, held accountable, and paid fairly?
{ How do we identify high performers and successors to key positions throughout the
organization to make sure we have a highly flexible, responsive organization?
{ How do we provide learning that is relevant, flexible, convenient, and timely?
These new, more challenging problems require new processes and systems. They require
greater integration between the different HR practices and direct integration into line of
business management processes. Today organizations are starting to buy, build, and stitch
together performance management systems, succession planning systems, and competency
management systems. The HR function is becoming integrated with the business in a real-
time fashion.

 

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    Æ   
  

Companies that engage in talent management (Human Capital Management) are strategic and
deliberate in how they source, attract, select, train, develop, retain, promote, and move
employees through the organization. Research done on the value of such systems
implemented within companies consistently uncovers benefits in these critical economic
areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market
capitalization.

From a talent management standpoint, employee evaluations concern two major areas of
measurement: performance and potential. Current employee performance within a specific
job has always been a standard evaluation measurement tool of the profitability of an
employee

The Talent Review meeting is an important part of the overall talent management process; it
is designed to review the performance and career potential of employees, to discuss possible
vacancy risks of current employees, to identify successors and top talent in the organization,
and to create development action plans to prepare employees for future roles in the
organization. "This is what talent management is all about gathering information about talent,
analyzing their career interests and organizational business needs, identifying top talent and
successes, and developing these individuals to reduce the risk of losing the best people and
experiencing extensive leadership gaps when turnover occurs.

Talent Management enables organizations to rapidly align, develop, motivate, and maintain a
high-performance labor force. They also alleviate the hassle of writing performance reviews
by automating the task and ensuring quality of reviews and reviewed on time. Organizations
can establish and communicate critical corporate goals, measure performance improvement,
and ensure that all levels of the organization are aligned to attain critical business objectives.
The six dimensions of talent management are as shown in table below

Æ   
 
 
   

·evelop strategy Establishing the optimum long term strategy for attracting,
developing, connecting and deploying the workforce

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Attract and retain Sourcing ,recruiting and holding onto the appropriate skills
and capitalize, according to business needs

Motivate and develop Verifying that people's capabilities are understood and
developed to match business requirements, while also
meeting people's needs for motivation, development and
job satisfaction

·eploy and manage Providing effective resources deployment, scheduling and


work management that match skills and experience with
organizational needs

Connect and enable Identifying individuals with relevant skills , collaborating


and sharing knowledge and working effectively in virtual
settings

Transform and sustain Achieving clear measurable and sustainable change within
the organization, while maintaining day to day continuity of
operations

Æ  :- Six ·imensions Of Talent Management

P  (Tim Ringo, 2009) IBM Institute for Business Value/Human Capital Institute.


 

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r  Æ    

Talent management suddenly evoked the charm and attention for the business world. Much of
the reason may be due to the fact that technology has finally begun to catch up. Human
resource management systems (HRMS) providers, already present in many businesses, have
begun to create add-on applications that provide a strategic layer on top of the more
administrative HR functionalities they already offer. It seems obvious then that the functions
that make up talent management can no longer be viewed independently, or hidden in HR or
training departments if they are to be truly successful. Talent management must have a true
partnership between management and the departments.

The main characteristics of HR and TM are as shown in table 2 below.

HR process TM Process

Goals Greater efficiency , obedience Better management of people to


achieve strategic business goals

metrics Shorter time to hire , lower cost Higher quality hires , stronger
to fill, higher percentage of leadership pipeline
employees reviewed

benefits More efficient HR performance Better business performance

users HR professionals / power users Business managers , HR


professionals

·ecision makers HR specialist HR specialist, senior executives,


business managers,

Technology Feature rich single function Comprehensive , configurable cross


solutions applications, designed for HR functional solutions designed for
professionals business managers

Æ x Characteristics of HR and TM Process

P  www.talentManagement101.com

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[  Æ     ! 
  

Business success relies on successful talent management. If a marketing manager cannot


retain his executives, hospital executive can't find nurses, a retail store manager can't develop
and engage store executives, or a lab manager can't keep great scientists/technicians/analysts,
they will have difficulty meeting their organization's strategic business objectives.

Talent management is very necessary for organizations as they cannot afford to loose their
talented people in the organization. These talented people cannot be replaced or imitated
easily. Organizations that are concerned about the talent management practices take
necessary action to develop future leadership within the organization itself.

[  Æ     

The challenges of finding, keeping, developing, and motivating people in key positions are
what HR professionals should be focusing on. These managers face ongoing talent
management challenges that are critical to their achieving business goals. The main
challenges are as shown below,

1. Attracting High Quality Candidates.


2. Identifying and developing high performers for key positions.
3. Retraining their top performing employees.
4. Filling high impact positions to support their company growth.
5. Keeping employees engaged, motivated and focused on high priority goals.
6. Building performance oriented culture.
7. Optimizing compensation to serve business objectives.

Many organizations believe that effective talent management practices can be a significant
advantage in a globally integrated economy. At the same time, industries face their own set of
unique challenges, a situation that has led ventures to focus on different areas of talent
management. A recently completed study by IBM highlights how knowledge- and service-
intensive industries tend to spend significant time and attention on talent management
activities, while non-profit organizations appear to struggle to make the most of their
workforce. Knowledge-intensive industries tend to focus on developing and connecting their
employees. Financial services companies tend to focus on employee attraction and retention,
Retailers apply a notable number of talent management practices overall and finally

c +

Government agencies, educational institutions and some healthcare firms fall short in
managing talent and sustaining change.

Effective talent management processes and systems can have a significant positive impact on
business. The most valuable systems are those that deliver direct value to the business
manager, which are easy to use, and that are integrated across functions. Processes and
systems that meet these criteria are well-suited to help companies meet their critical talent
management challenges.

[ x Æ    
  

Organizations adopt different strategies for talent management. Some of them are discussed
briefly below. One initiative will be to retain high performers in strategic and core roles. The
following discussion model referred to as ³Can ·o/Will ·o Matrix´ explains performance
quadrants and HR and local leadership talent management initiatives.

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Warn, Challenge, Acknowledge skills, Recognize, Provide Leading edge


Set performance goals, Reward tools and development, Plan career,
 

conservatively Reward, Retain

   
  
    
  
 

Place on performance plan, review Provide training, Reconsider


regularly, reserve rewards, separate assignment fit, Assure supervision,
Give earned rewards.
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 (Butterfield, 2008, Vol. 59, No.1)

By looking at the matrix and the quadrant a particular person falls in, HR should plan with
local leadership how to address and resolve issues of accountability, engagement,
competency development, growth and reward of the person.

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[ x  &
Æ 

While acquiring people, organizations focus on appropriate qualities, knowledge, skills and
potential trainability for the future needs of the organization. Organizations must have long
term recruitment strategies to fulfill their future talent requirements.

(a) Relationships with Institutes

Organizations focus on higher educational and training institutes and universities for hunting
talented people for their organizations. This is practiced in different means. Some
multinational organizations enter to universities disguised as saviors of the students and
promise top places of the organization. Ultimately they grab only the spirit or the top talented
people of the university and recruit for their organization. Eg. Unilever.

Certain garment factories sign MOU¶s with the vocational Training Authority (VTA) for
obtaining trained sewing machine operators and certain technical grade people. By way of
supplying training material for these institutions, these organizations support the VTA and on
return VTA provide machine operators to the organization.

Career guidance workshops are another way of identifying the talent. Some multinational
organizations practice this methodology. They mainly target the universities by way of
sponsoring a workshops or career guiding programmes.

(b) Competitive salary scales

Some originations try their best to maintain their salary sales at an optimum level to attract
the best people from the job market. This practice is seen in most of the multi-national
organizations. E.g. Unilever.

(c) Employer Branding

Employee branding can be used both as acquiring and retention strategy. Some organizations
take steps to popularize the brand name among the general public and making the employees
are to be proud to be the employees of the organization. Employer branding carries a lot of
weight to the organization that can be used from hiring to firing. The brand must affect the
prospective future employers and the current employees to identify the organization as a
distinctive employer.

c 

Employer brand can be defined as a set of attributes and qualities-often intangible-that makes
an organization distinctive, promise a particular kind of employment, experiences, and
appeals to those people who will thrive and perform best in its culture (CIP·). ·ifferent
organizations practice different ways to practice employer branding.

[ x x Æ
 !' Æ 

Talent development plan must be directly linked to the HR initiatives/workforce plans. The
role of HR with respect to development of talent are Identify talent gaps, identify
investments, design and development required training programmes, ·eliver the training
fully and calculate the return on investment to the organization.

Overall training and development programmes give ROI, but when it come to the talent, the
ROI is more visible than in a general training. One important factor in the training is
provision of suitable enhancement either in the role or the benefits.

[ x    Æ 

One important role HR is to identifying the high achieving and core performers. HR can
coach them for operational leadership. HR Must have a constant dialogue with the key
performers which are sometimes called retention interviews which include one-on-one
meetings to make them understand that their performance is highly valued. Also HR must
best support them to reach their highest potential and future engagement and success. The
key idea behind is to retain and reduce the turnover rate.

This is practiced with most of the knowledge oriented businesses in Sri Lanka. E.g. Vertusa.

Intangible benefits play a major role in retention of employees. The mutual trust,
opportunities for development, avoidance of dissatisfaction and conflicts with the superiors,
constructive comments and criticisms, empowerment, job enhancement and providing
challenging duties are some of them. However, these cannot be practiced for ever and the
management must ensure that tangible benefits come along with intangible benefits. The
proportion depends on the culture.

Succession planning is one another strategy used to retain the talent within the organization.
HR can consult with the operational managers to identify key performers with potential for
advancement. They can be trained as the future leaders and also can be trained and promoted

c 

for higher positions periodically. This will enable HR to plan for the future which is vital to
drive the organizations long term competitive advantage.

However, Flatten structures of the organizations make the succession planning process a
difficult one. Recent studies show that with the economic downturn, the succession planning
hand become less important with respect to retaining the talent. (www.cipd.co.uk)

If talented people are leaving the organization, there must be a good reason for that. It is
worthwhile to find the reason behind that. To get information organizations conduct ³Exit
interviews´ with leavers. Even though this is not a very good method, these data can be used
to evaluate and suggest a remedial action to the problem. Attitude survey is one other method
to find reasons for leaving talent.

[ x r  Æ 

This begins with policies, practices and designing jobs. Talent deployment mainly concerns
with how that talent can be use to the maximum it can provide or how well the role is to be
played within the organization. Taking the motivation factor in to consideration their roles are
designed in such a way to give them more responsible roles, more challenging jobs,
autonomy required to make certain decisions etc. For the trained talent, opportunities and
necessary encouragement must be provided to play their role. As a result, they will be able
show their abilities and develop knowledge as well.

[ x [  
Æ 

Even if there is a great fit between the employee talent and the job, it doesn¶t ensure the
maximum performance. Wages are usually ranked as higher motivators and sometimes
intangible benefits, ³a feeling of being valued´ also matter a lot for employee performance. It
is not easy to cascade down the organizational objective to the employees. Some of the
employees even don¶t know the type of job they have to perform to achieve organizational
goals. Performance management interview is a good opportunity to align this mismatch of
goals. It also gives managers a framework for measuring an employee¶s performance in a
meaningful way. One important factor here is linking the performance results with the
benefits.

c #

·uring the performance management meeting the manager can discuss the areas that are to be
improved, training and development plans, ways and means that the employee can contribute
to the organization etc. This is also a planning, learning & development activities discussion.

However, the current practice is not limited to the performance management interview.
Managers can start to examine their talent pipeline, evaluate their bench strength, advising
them how to set goals to improve performance etc. These are done more frequently and
informal manner. The same procedures can be applied not only to the individuals but also for
teams.

Prior to the performance management interviews, policies, objectives and other related
documents are to be prepared for performance management. Then the interviewers are to be
trained properly. If not the whole purpose will be lost.

It is worthwhile to do a risk analysis to get an idea of the loss that will occur if the key talent
leaves the organization.

Career management is also considered as part of performance management system. Career


planning, Succession planning, are important tools that can be used to retain employees.

[ x  Æ      
  

The prime important factor to retain talent and to use the talent to the maximum the
relationship organization maintain with them. While creating a great place for them to work,
the benefits are to managed well. Treating them fairly, recognizing their value, giving them a
voice and providing opportunities for growth (Armstrong, 2009). This relationship must be a
good one and must prevent talented people leaving the organization. Some of the practices
employed by ³Vertusa´ are given in the table 6.1.

[ x  (%
 


In addition to the formal training and development methods, informal discussions can be used
to share new knowledge acquired by experience. This is similar to sharing the tacit
knowledge of the talented people. This can be done through position overlap, cross functional
teams, Succession planning, particularly in staff positions to transfer knowledge effectively

c %

[     Æ 

Economist Adam Smith¶s theory shows that larger scale production might lead to more
sophisticated processes and even better management. Thereby reduce the cost of production
and as a result sell the product at a lower price to get the competitive advantage. In the
similar manner Economies of talent also can be addressed. Principle of modern talent
management practices can demonstrate a clear advantage in larger organizations in the
sophistication of their talent management processes, infrastructure and use of technologies.

However, no organization in today¶s economic climate can afford to invest in talent


management practices without a demonstrable and significant return on investment. Lacking
this, senior leaders will not support the process and, most importantly, the top management
believes that process will not support organizational goals. This perception of top
management is supported by lack of evidence in this respect.

 

c '

  Æ   
  

The dynamic nature of global business is putting an ever-increasing pressure on companies to


be constantly on the lookout for incomparable talent in a market where demand far exceeds
supply. Given the current focus on the linkage between talent and an organization¶s business
challenges and strategies, effective strategy execution requires sufficient numbers of the right
people with the right skills and knowledge, in the right roles. Pressing business necessities,
such as increasing turnover as the economy improves, globalization of markets and labour
forces, aggressive competition and heightened corporate oversight, have intensified the need
to acquire, develop, deploy, motivate and retain key talent.

Getting the right people with the right skills into the right jobs, a common definition of talent
management is the basic people management challenge in organizations. While the focus of
talent management tends to be on management and executive positions, the issues apply to all
jobs that are hard to fill. This has made talent management one of the most pressing issues
facing senior business executives. It seems that giving emphasis on retaining talented people
within the organization is much important than acquiring the new talent of the same category.
Given below are some of the practices adopted by organizations to handle top talented people
in the organization.

Practice Intension Reward type

All the documents related By doing this what these organizations intend to Intrinsic
to their promotions, show is that how important and how much they
transfers, salary are taken care of.
increments etc. are signed
by the CEO and not by the
HR Manager.

Leadership Training Potential leader are identified and they have Intrinsic &
programmes been provided necessary training to upgrade to Extrinsic
the higher positions of the organization. Their
potential is reviewed in particular period of time
and sustainability and consistency is checked.

c &

Training leaders for the Training identified talented people in Intrinsic
positions that cannot be organizations key positions for the key positions
filled immediately. as successors. (3x3x3 approach) Eg. Singer.

One on one discussions ·uring the one-on-one discussions employees Mostly


are tend to express their ideas with respect to intrinsic and
their development end future plans. For their sometimes
development they are given desired training and extrinsic also.
projects. From these they get the knowledge they
wanted to achieve. After the training they are
evaluated and certificates are given to appreciate
the effort made towards achievement.

Informal performance ·uring the informal meetings they are spoken Intrinsic
discussions much easily. These meetings can be used to
evaluate their performance, show the gaps to
them, make necessary adjustments to fill the
gaps and to align their orientation towards the
organizational objectives.

Occasional ·inners from CEO/Chairman organizes dinners for the top Mostly
the Chairman/CEO talented or key players of the organization. intrinsic and
·uring these get-togethers they used to talk to sometimes
the employees more casual way. Thereby they extrinsic also.
attract the employees and making a pleasant
mind set of the organization. So the feeling of
having the diner with the CEO is considered as a
privilege for the top talented people. Generally
organizational plans, goals and aims are
expressed by the CEO/Chairman.

Succession planning Experienced top talented people become career Intrinsic and
champions. These champions and then converted extrinsic.
to mentors and senior-mentors and finally

c .

managers taking their leadership qualities in to
consideration.

Online information Top talented people are allowed to access some Intrinsic
provision of the company vital information for their
developmental work through online. These are
flexi time learning.

Tests Tests are conducted to evaluate the knowledge Intrinsic &


acquired on line and then rewarded. extrinsic

Salary reviews Salary reviews are done time to time to retain the Intrinsic &
talented people extrinsic

Performance link Performance Management system is linked to Intrinsic &


the reward system extrinsic

Spies. There are people planted in different sections to Helps for


give information of employees related to proactive
resignations, reasons for resignation, and decision
employee satisfaction and unrests etc. making

Matching offers When people plan to leave, the organization Retain the
always plan to retain them by matching the top talent.
outside offer or may be some other benefits.

Be alert of Talent Organizations are always on alert on the people Retain the
who are planning to leave the organization, and top talent
take remedial actions to stop them leaving.

Table 6.1

Some of these practices are formal and some are informal. The ultimate objective is to retain
the top talented people in the organization, who bring the competitive advantage to the
organization.
 

c (

  '   Æ     

It is very important to measure return on investment on talent after all. In order to set and
evaluate talent, begin with how the organization hopes to describe its human performance
capabilities and capacity in the future. Following is a model that can be used to evaluate
talent management success.


c  ‡ Numerically define strategic strengths and competencies needed to


 achieve organizational expectations.
‡ Set goals that result in closing gaps in current competencies.
‡ Set specific targets based on adaptive competencies that must be
acquired.
‡ ·etermine metrics that will demonstrate ³bench´ strength needed.
‡ Provide measureable (cost benefit analysis) business plan proposals
that demonstrate the value HR proposes as initiatives to supply and
support the performance chain.
‡ Clarify executive endorsement among the possible HR initiatives.
P   ‡ Identify specific, measurable goals that will predict success.
 ‡ ·emonstrate the line of sight established between needed
organizational outcomes and HR initiatives.
 ‡ Clarify how HR will realign generalists¶ and specialists¶ efforts to
 serve these initiatives.
‡ Realign HR¶s budget to serve talent management initiatives.
‡ Take responsibility for growth by substitution and seek initiative-
based funding.
c  ‡ Integrate HR¶s initiatives and budget to achieve intended
 organizational performance.
‡ ·eliver on initiatives as planned, on time and within budget.
‡ Report progress in annual HR reports and in the human capital plan.
 ‡ Compare outcomes to predictions, for instance:
 ‡ Core skill areas are experiencing higher retention than the rest of the
organization.
‡ Core skill areas are compensated at or above the target relationship to

c +

market.
‡ Performance in core skill areas excels.
‡ High performers in core skill areas report higher than average
employee commitment.
‡ Internal promotion rates in key performance areas are higher than
average.
‡ Strong career communities have been established in core competency
areas.
 

c ,

a    )'
 

Other factors like below are contributing to the scarcity of talented people.

a     

China stands out among emerging economies, as its birth rate has declined from 5.8 in 1970 to
1.8 today owing to its stringent birth-control policies. In the longer term this will cause problems
with an ageing population. The rate of population growth in developed countries is now five
times lower than in less developed countries including US, UK and most of other European
countries.

a x *  
 

Relative weakness in building home-grown talent can be compensated for by the immigration of
talent. Today people are mobile, and in particular, young people from Asia are moving to take
advantage of learning opportunities or jobs. Australia has been one of the world¶s greediest
nations for skilled workers from abroad. For over three decades, successive governments policies
have systematically encouraged large-scale, explicitly skill selective immigration. Without such
policies, it has been estimated that Australia¶s current

a  
*   

The situation is perhaps most critical of all in Russia, where the population has been shrinking at
about 700,000 a year, prompting the United Nations to warn that without drastic action it could
fall from 149 million today to less than 100 million by 2050. Worse still, the ageing of the
population means that on current trends there will be four dependants for every Russian worker
by 2025.

a r       '




Considering changes in the size, number, male/female ratio, distribution and genetic composition
of populations has implications on productive human resource availability. War situations, ethnic
clashes and cultural reasons also show an impact on the population diversity.

a [ $%+
  

Japan, having had a low fertility rate for many years and today averaging 1.3, has become the
first industrialized nation to move into population decline. (Source: Internet.)

c #

J   

Talent management is a fairly new to the organizations. Most of the organization¶s talent
management practices are in very primary stages hence rewards are not directly linked to the
performance management system and talent management system. In most of the cases there is
no HR information management system and decisions are taken by intuition. Facts and
figures are rarely used for decision making.

With the economic downturn, there are a lot of challenges to be faced. The retention strategy
is most challenged compared to the other strategies. Succession planning as a strategy has
become almost a null concept as the company structures become flattening and the levels of
hierarchy become less. Linking performance to the reward system is also very limited.
Therefore organizations are compelled to reward in terms of intangible benefits rather than
tangible benefits.

Failures in talent management are mainly due to the mismatch between the supplies and
demand not due to the failure in the concept. We need a new way of thinking about the talent
management challenge. A new framework for talent management has to begin by being clear
about the objectives. Talent management is not an end in itself. It is not about developing
employees or creating succession plans. Nor is it about achieving specific benchmarks like a
two percent turnover rate or five percent absenteeism, having the most educated workforce,
or any other tactical outcome. The goal of talent management is the much more general, but
the most important task of Talent Management is to help the organization to achieve its
overall organizational goals and objectives at a minimum cost using the highest talented
people.
 

c #

   


Armstrong, M. (2009). Strategic Human Resource Management, 4th Edition. India: Kogan
Page.

Bill Curtis, W. E. (2009). A Framework for Human Capital Management, Second Edition.
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