Effective Talent Management Processes - Term Paper Example

? EFFECTIVE TALENT MANAGEMENT PROCESSES AND MANAGEMENT DEVELOPMENT PROGRAMME Introduction Definition and Differentiation of Terms The understandings of what talent management processes and programme are begins first with the identifying of what these terms pertain within the context of an organization. Talent refers to those individuals who demonstrate highest levels of potential positive impact on the performance of the organization (Ford et al., 2010). This can occur either immediately or in the long-run. It is viewed in terms of the individual possessing it. Talent intelligence refers to the insight that a company needs to capitalize on its most key asset – its employees – by capturing meaningful information on people within the organization and outside (within competitors) for appropriate action towards driving the business of the organization forward (Lawler III & Ulrich, 2008). Talent management (and development), on the other hand, refers to a body of theories (including models and empirical studies) that offer managerial insights on how to identify such talent systematically and provides mechanisms on how to nurture and utilize the talent so acquired towards fulfilling the organizational objectives (Berger & Berger, 2010). In practice, talent management requires every individual organization to design, develop, and implement its own unique and adaptive talent management strategy in line with the organization’s objectives, operations, culture and environmental influencers (Berger & Berger, 2010). Talent management has become a core human resource function. Trends and Emergent Issues in Global Management Globalization has led to a radical paradigm shift in how organizations conduct their business. Similarly, managerial focus has now broadened from a restricted focus on how the organization can achieve profitability and survive within the domestic and regional market. It now includes the emergent issues in global business today and the way they affect the organization’s profitability, as well as the way an organization impacts both its internal members and the communities where it is situated. The emergence of Brazil, India, China, and Russia as economic giants has led to increased focus of industries and top quality human resource skills on these markets due to the shortage of managerial talent elsewhere. The number of excellent leaders and managers has not increase (at least not at par) while the level of companies and industries seeking these crucial human resources has (Goldsmith & Carter, 2009). Talent management has increasingly grown from the need to find individuals whose competencies ‘fit’ within the organizational agenda in times of growth and expansion. It is clear from the recent, historical effects that the globalization of former national markets has not only brought opportunities forth for economies of scale and, therefore, more profits, but also created an integrated system that channels a ripple effect, in case of a collapse of one segment of its market, onto the rest of the global system (Carnall, 2007). Global recessions like the one experienced in 2008 had the effect of cutting down jobs globally. A focus of managers now shifts to identification and development of individuals with the ability to lead during such lean times, talents which can consolidate, engage, and sustain a proactive yet consistent approach to operational business cycles. Finally, global business means that multinationals need to obtain employees with different skills and competencies, which blend together to provide synergistic benefits for the organization (Schiemann & Meisinger, 2009). The differentiation amongst individuals in terms of behaviors, culture, attitudes, and interests means that a delicate and deliberate effort is required in obtaining a harmonious fusion of all these elements (the list is by no means conclusive) that is self-sustaining and provides an environment suitable for creativity, innovation, and employee growth. Present managers have exposed a high affinity for mobility in addition to having increased demands and higher expectations of their career paths than prior generations (Reed, 2011). The methodologies for attracting and maintaining such skills have proved more challenging now than ever before. Importance of Talent Management and Development Systems (Berger & Berger, 2010) 1. Provides a ground for a holistic view on talent that can drive business results; 2. Provides support for the goals of C-level management, therein strengthening the strategic role of human resource as a partner and advisor; 3. Provides a more accurate pool of information, which contributes to better decision-making; 4. Improves business relations and opportunities with other stakeholders such as customers, business partners, and suppliers; 5. Supports organizational globalization and differentiation efforts. Problem Statement In the company’s latest internal memo circulated to the employees, a major call to action was in regard to the continued fall in total productivity. A subsequent memo circulated amidst the company’s C-level management revealed that one of the major causes for the sustained shortfall in productivity was poor management of talent processes and development programme. The human resource department is, therefore, tasked with the responsibility of assessing the validity of this statement and providing deeper insights and information as to how this state of affairs came about. The subsequent sections inform how the research analysis was undertaken and conclude with an assertion of whether or not the claims made in the internal memo were true. Research Plan and Analysis Focus of Analysis and Plan The study can be conducted under three primary themes or talent management processes and development programme: 1. Talent management is the strategy; individuals make the difference; 2. People qualities is the competitive differentiator; 3. The higher the complexities of a job, the more the competencies required. To understand better the capabilities brought by an individual to a job, an assessment of the relationship existing between the various competencies and levels is important. There are three crucial levels of competencies: skills and knowledge prevail at the outermost or behavioral level reflecting the ability of the individual to merge usable information in his possession in doing a given task well; self-image versus social role confrontation exists at the intermediate level demonstrating how identity perceptions and values reinforce work ethic; personal characteristics are at the core level, reinforcing motives and sustaining interests. Core motive traits are hardest to develop, yet they have the greatest impact on individual performance (Sims et al., 2007). People qualities are a strong source of leadership, creativity, and innovation, which are the primary components for attaining competitive advantage. This is perhaps the reason for the emergence of a crude yet every effective practice of seeking and hiring top-talented executives in the corporate world referred to as “head-hunting”. A set of questions were compiled by the human resource department which would identify the evaluation model to be used in reviewing the talent management processes and development programme in use: 1. How is recruitment into the organization done? 2. What criteria are used to identify highest performers within the organization? 3. What is their career path? 4. What roles does the organization play in fostering their talents’ development? 5. Are there mechanisms for aligning personal goals to both team and organizational goals? 6. How useful are they? 7. Which systems are in place for promoting and assigning higher responsibilities? Two models/ criteria were identified for assessing the results of the above set of questions: job competency assessment (JCA) and the ‘high impact talent management’ models. The former was chosen because competencies are the primary differentiator between superior and average performance within an organization (Sims et al., 2007). Competencies that are easily developed are, however, less important in personnel selection (Israelite, 2009). Moreover, in identifying the competencies required by the organization, a job evaluation must be conducted to identify the gap in the skill set available in the organization and the work needs of the organization. To identify these work needs, the organization must possess and spell out clear directions about both its short and long term objectives (Carnall, 2007). The “high impact talent management” model (Ford et al., 2010) is chosen because it provides an integrated organization process including the major human resource functions but with a focus towards learning and developmental processes. It has five major components: 1. Acquisition of talent The model adopts the JCA model for identifying, sourcing, and attracting highly qualified talent from both internal and external sources. 2. Succession planning and management This policy advocates for a deliberate design strategy that encourages transfer of knowledge and skills across all levels of the organization so as to ensure that the career paths of the individuals inside the organization are geared towards providing continuity and growth of the firm alongside the members’ own growth. It provides a pool from which senior level management can use to offer ready replacements for filling internal managerial positions left by exiting management staff. This policy is especially significant for organizations that are experiencing stagnation due to a ‘clouding of vision’. When this situation is experienced, it is easier for internal focused change that is intimated by members who had been present when the firm transitioned. 3. Performance management The model advocates that this be the core part of talent management establishing the foundations for goal-setting and evaluation both for the organization and the individual. It is specifically built around the culture of the organization of building on its competitiveness and making it highly collaborative. 4. Leadership development This has to be approached as an organization’s strategic role. It must incorporate a transfer of managerial skill and expertise that helps create self-sufficient teams within the firm’s structure thus decreasing the time required for supervision and performance evaluation of individual members as the efficacy of the team can be generalized to mean the collective contribution of its constituent members. 5. Learning development This focuses on the career development of the individuals within the organization. It also constitutes new knowledge acquisition and skill transfer which influence employee satisfaction by meeting some of the expectations which individuals have on the organization. Where an efficient learning development model is developed, it can act as a staff retention policy as well. Process Analysis Under the job competencies assessment model, the quality of the employees within the organization can be assessed by comparing the job description against the employee qualifications as provided in their curriculum vitae. Secondly, task-employee relationship can be used to assess other non-academic qualifications gauging the adaptability of the particular employee for the unique job requirement(s). Job evaluation within the whole organization is necessary to determine whether the jobs within the organizational structure are best suited to fulfill its short and long term needs. The job evaluation process can be headed by departmental heads that will also be useful for providing managerial input on the employee aggregate performance assessments (Carnall, 2007). Information on talent acquisition can be assessed within the firm’s HR recruitment and selection policy. An evaluation of the frequency and duration of review of these policies concomitant to trends and requirements within the labor market versus the organization skill gap is essential in determining the suitability of present talent within the organization (Caplan). It will provide direct insights to the ability of organizational staff to perform allocated tasks and responsibilities effectively. An evaluation of the process of short-term fix strategy for skill and talent is also important in comparing whether the need for short-term replacements was done at the expense of HR functions. Most companies have been found to race in its search for solutions to recruitment and succession of top managers therein making crucial errors in treating such situations as separate human resource issues (Delong & Trautman, 2010). This “apple-for-oranges” match technique is not wholly effective. Performance management within the organization at individual, departmental and organizational level is essential. To perform this, there would be a need for use of benchmarking and cross listing technique (Effron and Ort). Goal setting at organizational and departmental is most useful at this stage. Cross checking of goal achievement against set targets and benchmarks both within the organization and at the industry level can set a case for determining management performance (Schiemann & Meisinger, 2009). Goal alignment can also be measured within the three aforementioned groups. Through this, there is congruence between the efforts of all members of the organization ensuring that interests are geared towards collective purposes. The impact of management’s talent training and development can be assessed through the firm’s coaching and mentoring programmes. Does the firm have these programmes? What is the participation level of the members of the organization in such programmes? Have there been any structural changes to the organization’s corporate structure due to emergent of highly potential employees from these programmes? Succession planning policies will be reviewed from findings from talent reviews conducted by head of the human resource department and supervisor heads. These supervisors are key in providing performance appraisal on employees since they are primarily and directly involved within the employee job-operating environment. Such reviews can form the basis of selecting high potential employees for executive trainings and mentorship programmes. Does the company’s talent management system provide these appropriate reviews? Are there substantial follow-upon these review outcomes? Are there any top management placements that have been made following findings and proposals from these reviews? Career planning is a sensitive concern for the employees within the organization. This is because it touches on the other needs of individuals from the organization apart from employment (Ford et al., 2010). It relates directly to the job satisfaction of the individuals. Job satisfaction also influences the motivation of the employees and determines their acceptance of set objectives and task requirements. What is the level of employee turnover? Are the employees motivated enough? Does the current leadership provide adequate delegation to enable new skill acquisition and knowledge acquisition? Job rotation is also a very accessible and non-cost technique of leadership development within the firm. The duration of employment within a given position especially within operational level is effective means of developing new skills and competences. This in turn, is critical for deeper creativity and innovations for the firm. Is there a connection between the performance appraisal results for employees and mentoring and coaching programmes? What new product developments have been arrived at following the leadership development initiatives? What priority is placed by C-level management to leadership development programmes? Do the management prodigies from such development programmes stay within the organization or do they move their skills to competitors? The social component of the employees within the organization is also very essential for creating and assessing the organizational culture. Does the talent management system include the integration of cultural variations (such as language, legislation and currencies) and allowing the system to configure differently for different countries and cultures? (Effron & Ort, 2010). Are the employees comfortable with the prevailing work environment? Are the people relations productive? What is the role of the informal groups within the organization? Are the interests of these informal groups above or in direct conflict with those of the organization? Conclusion The results of these model analyses will directly ascertain whether the organization’s talent management processes and management development are poorly managed as claimed in the company memo. The models have been able to break down the study into the individual components forming the much broader field of talent management systems. It is extremely critical to be cognizant of the input by talent intelligence systems in achieving the purposes of talent managers and development programmes. Ultimately, the success of the organization depends on how it cultivates the potential of its members and thereafter applies such gained knowledge and competencies towards achieving organizational ends in line with the individuals’ ends. Reference Berger, L. & Berger, D., 2010. The Talent Management Handbook: Creating a Sustainable Competitive Advantage by Selecting, Developing, and Promoting the Best People. McGraw-Hill. Caplan, J., 2011. 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Talent Management: Strategies from Six Leading Companies. ASTD Press. Lawler III, E.E. & Ulrich, D., 2008. Talent : Making People Your Competitive Advantage. Jossey-Bass. Oakes, K. & Galagan, P., 2011. The Executive Guide to Integrated Talent Management. American Society for Training & Development. Oracle Corporation, 2008. Integrated Talent Management: Extending the Value of a Strategic Framework. Carlifornia: Oracle Corporation. Reed, A., 2011. Innovation in Human Resource Management: Tooling Up for the Talent Wars. McGraw-Hill. Schiemann, W.A. & Meisinger, S.R., 2009. Reinventing Talent Management: How to Maximize Performance in the New Marketplace. McGraw-Hill. Sims, D., 2011. The 30-Minute Guide To Talent And Succession Management: A Quick Reference Guide For Business Leaders. AuthorHouse. Sims, D., Gay, M. & Morris, C., 2007. Building Tomorrow's Talent: A Practitioner's Guide to Talent Management and Succession Planning. Authorhouse. Taleo Research, 2012. What is Talent Management? [Online] Available at: HYPERLINK "http://www.taleo.com/researcharticle/what-talent-management" http://www.taleo.com/researcharticle/what-talent-management [Accessed 28 April 2012]. Workitect, Inc., 2011. Integrating HR & Talent Management Process. Workitect, Inc. Read More