Today, we will talk about the Talent Acquisition and Management exciting part: Six Principles of Talent Management. Now, you see whether management is a science or an art, so it is both. So, why it is both? Because everything is based on logic, principles that we say science. And, when you implement the science, implementation or application of science, that becomes a technology and technology management. It is how you are managing that particular knowledge. So, it is very important to know what this talent management is based on which principles and those principles we will take care of in the form of keeping in mind the HRM functions. So, we will talk about these six principles of talent management. (Refer Slide Time: 01:23) Alignment with the HR strategies basically, internal consistency these are the pillars. So, there is an integration; integration between these strategies and consistency. So, if there will be no strategy, what is the strategy? A strategy is long term planning. So, when you talk about the business strategy, they decide about the corporate-level strategies, whether the diversification of the business is the requirement or there should be the expansion of the business depend on the business life cycle that is from the embryonic condition to the growth or the maturity or the decline. So, therefore, it will depend on that corporate-level strategy for the business. So, HR strategy, the talent management strategy – that will also depend on the, whatever the internal consistency is there, what is the internal consistency that we will see further and the cultural embeddedness is there. Dear friends, it is very much important to learn about the culture, understand the culture, despite changing the culture. Many people claim that we have changed our culture. Culture changing is not right. Culture means long time practices. They are existing, but definitely, there will be certain practices with the period of time that is required to be amended, not a replacement, not removal. You want to amend them, and therefore, in that case, it becomes very important that is called the culture embeddedness. You absorb that culture, and in every culture, there might be certain practices that you want to improve, so improve that. But, without understanding the culture, following the culture, the thinking is that I will replace the culture that has not been appreciated by the literature. So, the six principles of talent management we will dis
(Refer Slide Time: 03:45) Here you will find the talent management wheel, and in the talent management wheel, it divides the important elements of talent management into two: talent management practices that are shown in the outer ring. So, these are the talent management practices and guiding principles. So, these are the guiding principles, and these six guiding principles are applied equally to each of the individual talent management practices. So, these are the practices, these are the guiding principles, and this is a wheel. Wheel means that it has been integrated, integrated like you see this one. So, therefore, this integration is very important. If you have the integration, then definitely, in that case, you will find that you can make this particular application of the principles of talent management. So, first, we will see what those practices are. So, HR functions, ASTD model. In the ASTD model, what we do? In HRM, we talk about recruitment. If you remember that HR; ASTD model I have discussed in the other platforms also that when you are talking about the recruitment, selection, training and development, job performance, promotions and transfers then compensation and reward, performance appraisal, there are the industrial relations which you are talking about, and then the personal research is there. So, this wheel is the here the major functions have been taken like the recruitment and selection is taken, development and training are taken, performance appraisal is taken, compensation and reward are taken. So, these are the parts of the ASTD model in HRM. So, these six principles of effective global talent management are based on certain functions. However, you will find there is retention also, and there is a talent review also. So, these are the practices intentions, intentions are there, intentions to retention, intention stuff the review. However, this talent review is also has taken into consideration by the potential appraisal because when you do the potential appraisal, then you are also going through a talent review, and when you are going through this talent review, you can connect that. So, here we will find all these functions which are going to be the consideration in this particular part. These are basically becoming the functions of the HRM. And, these functions of the HRM are becoming about how you are going for performance management. Now, performance management, retention, that is the employee retentions, how to retain the employees, compensation and rewards that we always talk about that is the employees those who are working. So, why they are working? They are working for getting a return on their intellectual investment. Physical investment is also there, but when you talk about work from home. So, there also physical investment is there, but basically more important is that it is the intellectual investment. So, for that, you are getting the compensation and reward. Then the talent review is done. Now, there can be a question, can talent be obsolete? Yes, with the period of time with the change of time, the talent can be obsolete and then what to do? So, I always talk about IQ plus EQ plus SQ [FL], Emotional Quotients and Spiritual Quotients that will always remain with you, but the intelligent quotient right, that may be not that much applicable with the period of time is there. So, that can be developed; nowadays, it is also possible. And, recruitment and selection, what is your manpower planning and how do you recruit to them and the development in training and development are there. So, first, we will I
would like to take that is a recruitment and selection. Now, you know what a talent is, and I have already explained in my previous sessions that talent is identifying the solutions to the problems. There is a potential to have the vision visualize that what is going to be there. So, when you are talking about the business portfolio or the toss metrics, that is about the market share and the growth of the product that is called the business portfolio matrix. So, in that case, it becomes very important that we consider these alignments with the strategy, what is the strategy, the strategy will be manpower planning, and in manpower planning identification of talent. So, there will be a job description. (Refer Slide Time: 09:47) And, with the job description, there will be the job specification. What is the job description? What is the job specification? Minimum qualification. So, therefore, in that case, it becomes very important that you are considering what has become important for this purpose is the alignment with the strategy. Now, what type of strategy can be there? Strategy can be technological strategies; what is the technology strategies? I would like to take the example of the banking industries.
Nowadays, in the banking industry, there is mobile banking, and if mobile banking is the strategy, you have to align the manpower accordingly. It is not the question of only the number of manpower. It is the question of tech-savvy manpower. Technology savvy manpower is very important, so if your long term strategy is to be technology-based, that is a core competency of your organization. So, your recruitment and selection that has to be matched with the strategies. What type of talent will you see? You will see the talent, which is technically qualified. The second part of recruitment and selection is its cultural embeddedness. This is very important, in my view. Literature also supports, the point is already there, but in my opinion, it is just a question of fitness, dear friends. It is not the question of just talent.
Talented people are there, but they are not growing. They are not giving the results, they are helpless many times, and then it is a surprise that the employee was talented, but he is not delivering. So, what is mismatching? That is the culture. Every individual has a personality that is embodied by heredity, environment and situation. So, when we talk about heredity, that is fine, but when we talk about the environment and in a given environment, your knowledge, attitude, skills and habit, the KASH model is applicable.
And that is integration with the culture through your knowledge, attitude, skills and habits. They are the dimensions of the cultural embeddedness, and therefore, in that case, the talent in the talent management review becomes very important, and the cultural embeddedness has to be there. If you are matching that culture, then there is no problem. Sometimes you will find that the low talented people are growing high in the organization. Somebody will say how this is happening that the low talented people are growing high, and the highly talented people are growing less. So, then you can say that it is not the only talent which will be responsible. It will be the organizational culture and a match of the talent. Now, you see these are the practices with the principle of cultural embeddedness, and with this cultural embeddedness and recruitment, the selection is made perfectly. If your HR team is strong, the interview is one aspect, but it is very short term. So, you
cannot judge a person based on the short term qualities judging them through a short period of interaction; you cannot judge the person rightly.
And, therefore, now even our Prime Minister has said that the interview cannot become a shortcut, we have to see the other methods also. For example, interaction with the clients, interaction with the stakeholders has become very common. So, even in the academic institutes, they ask you to interact with others, and their opinion will also be taken into consideration.
So, when the other people interact with you, they come to know whether you will be able to perform or you will not be able to perform. So, cultural embeddedness is there. Along with cultural embeddedness and recruitment selection are there, but you already selected a person; if you have recruited that person, then the next practice is the cultural competency development practice that is the development and training practice. So, another practice is to be aligned with the recruitment. If the recruitment is done and you are having a strong training calendar, development of skills and how training and development? Not by coercion, [FL] increment [FL] development [FL]. You must be supposed to do all these learnings so that you can perform better,
you can grow in this organization, and you will be happy. A happy employee will contribute more. So, to facilitate him, with the period of time you are increasing, the responsibilities may be through promotions or may not be through promotion, but responsibilities are increasing, new skills are introducing, then what to do? So, you have to train the manpower, and if you train the manpower and then you will find it. Recently, I have conducted one training program for a PSU that is reverse mentoring. So, reverse mentoring means the senior top-level executives are learning from the middle-level executives or the junior frontline executives because they are smarter into the technology; they are smarter into the use of the software. So, even in academics, you will find that young people are much faster in data analysis.
However, the interpretation of the data, for that the support will be required from the supervisor, but the candidate may be the faster and smarter in case of this use of the technology, right? But in the analysis of data, you have to just put the data, and you have to get the results. So, what is required? Develop them, train them, and training is not only for the crisis. Many organizations have tried in 2008, 2009. In 2008 – 2009, there was an economic recession. Many organizations have tried these type of training and development programs, but it is internal consistency. The principle is that whatever it is a culture-building, whatever the training and developments are there, will change, but practices of conducting the training or training the employees will not change. So, the internal principle will remain internally consistent. What is consistency? Consistency is to promote talent. So, therefore, training and development will be there with the help of internal consistency, but the type of training programs may change. So, in the beginning, it is a job skills type of training. Later on, you see the leadership type of training, then, later on, you see that is corporate level training. So, as the period passes, the level of the training and type of training keeps on changing and therefore, there is internal consistency. Now, here I would like to take an example of reverse mentoring. I will also take the example of mentoring. Now, in mentoring, what happens? That a CEO level person is appointed as a mentor and CEO does not have time to meet this new batch or he will meet for a short period of time and the interaction will be more strategic, but not action-oriented because then he will say just that is what you are supposed to do, is what is expected from you. But, the action-oriented training will be done by the middle management to whom they are reporting. So, therefore, management involvement is very important, and when more and more involvement is there, then the performance will increase. So, therefore, there is a performance management practice for involvement. To develop that culture of involvement, performance management practices are to be introduced. I will take a separate session also on this that is employee branding. After this, I will talk about employee branding, which is how employee branding is done. So, employee branding to then the differentiation so, how do you differentiate? So, I would like to take the example of washing machines. Earlier washing machines were top-loaded, then automatic washing machines, but they were not fully automatic washing machines. So, then the time period changed and they have become fully automatic washing machine. Then they say not only the top-loading washing machines, but the front side loading washing machines are better because the centrifugal force is there. And, as a result of which the front line washing machines have been introduced, and nowadays you are talking about the washing machines with the heaters. So, that is the hot water. So, therefore, in that case, it is the branding that you are creating for your physical product. Similarly, you have to create the branding as the best employer. So, you can say that we have a very friendly culture, we have the mentoring process, we are having the guidance and support and leaves and rewards and all these things. Then nowadays you talk about we have the gym also and breakfast also and then all the facilities and the employees can work from home, need not come, and there are the creches also. Creches are also compulsory. It was compulsory in the factories in 1948,
but that is nowadays, that becomes a major trend it is then yes, you can keep your babies, and you can work here. In some organization in, USA, you will find that pet animal can be kept there. So, therefore, employee branding is not for good work, a good place to work; it is a great place to work. So, they are highly concerned; employees are highly concerned with freedom, flexibility, understanding, cooperativeness, team building, stress management, conflict management. So, every practice is supporting to the employee, so that he can give his best because you selected talent and if you have selected the talent then it is your responsibility the talent should be able to perform. So, therefore, employee branding to differentiation is becoming very important, and thus, retention is there. Then there are the compensation and rewards right. So, everything nowadays, we talk about variable pay. So, variable pay is performance-based pay. So, even an inexperienced employee can earn more than an experienced employee. Then you will say, sir; will not be there be conflict? No, the fixed pay for the fixed permanent employees or the senior employee is much higher as compared to younger employees. Then how a younger employee is dominating the pay of the senior employee? By performance. So, there is variable pay, and there is a concept ESOP employees share on profit and if employee share on profit is increasing, so, one day will come when the senior salary earnings will be less as compared to the junior because juniors earning is much more based on the variable pay. Variable pay is based on performance, and therefore, he is earning more. Sometimes he is earning more; sometimes, a senior employee is earning more. So, therefore, this is the employee branding differentiation. How do you differentiate? The more you show concern to the employees, the more you will be able to retain them. So, therefore, this retention is possible only through the practices, practices of the organizations, and then this will be the detention practices that will come through employee branding. Now, here we will find what type of compensation and rewards are there that is balancing the global and local needs and here what becomes very important is employee involvement which we have been saying management involvement, employee engagement, psychological ownerships and organizational citizenship behaviour all these concepts that you will find is through the compensation and rewards that will be done wonderfully. It is not always monetary rewards. There are non-monetary rewards also. When there are non-monetary rewards and the appreciation, recognition, leadership which the one gets then, definitely it motivates the self, intrinsic motivation. An employee is not motivated because of the salaries and all perks, because they are temporary. While the employee is more motivated because of the self-satisfaction, exposure to self, learning opportunities to self because nowadays generation is very smart, they know whether they can get the development or not. If they are getting the development, they will continue with the organization, and therefore, that balancing the global and local needs are there. What are the needs? And, normally there are technical skills needs, and if the technical skill needs are there, then the employee can perform. So, here we see, that easy guiding principles are internal consistency, management involvement, employee branding through the differentiation; what practices you are giving, what Google is giving, what Tata is giving, accordingly you will find what work environment, what work culture is there, what practices are there. Next is Balancing global and local needs are there. So, we have to see that is if somebody is transferred to another country for the job, then his needs are to be also satisfied that will be different needs thereof the financial conditions and all. Then cultural embeddedness principle and the alignment with the strategy; so, are the principles in the inner circle and the outer circle that is recruitment selection, development training, performance and retention, compensation and talent review these practices are there. (Refer Slide Time: 27:15) Now, under this principle, the core responsibility of the human resource leader is to judge, going by the strategy, what kind of talent does the organization require? So, now, how to make the alignment? What type of people do you require that you have to see. You want for the long term, you want for the short term, or you want for a project? At any point in time, it is given that you need to place the right person at the right job is the basic principle of management. (Refer Slide Time: 27:45) Now, here is a very important note that you need to be flexible with your strategy. Many internal and external factors can compel you to change the way you plan. Always keep on telling you; as you see, there is one question. Is planning an obsolete function? Why has such a question come? Why the basic function of the management planning and somebody is saying it is obsolete, it is not required. So, therefore, what is to be done? In that case, you will find why it is so? There are many internal and external factors. So, in the night you think that is ok, I will design manpower like this, and next day morning you see that there is a technology development and you have to retain the manpower, forget about the development. So, these are the internal and external factors. So, when we talk about the TOWS matrix, the strength and weaknesses with the opportunity and threats, and therefore, external and internal; internal is the strength and weaknesses and this is the opportunity and threat. And, therefore, it is the SO – strength and opportunity, this is the ST – strength and the threat, this is the WO – weakness and opportunity, and this is weakness and threat. So, this is a TOWS matrix. So, in that case, you will find that is these internal factors, internal factors are the employees; external factors are the government, rules, regulations, customer demand,
customer needs, social changes, economic changes, technological changes. So, therefore, they just keep on changing. So, you are to see the combination.
So, there are many internal and external factors. These are the factors that can compel you to change the way you plan. So, whatever you plan may require change. So, therefore, in that case, it becomes very important that how you are going to change. You are supposed to be flexible and have to do so. The GE and Oracle, you will find these are the companies that are going with these different types of changes. (Refer Slide Time: 30:37) For internal consistency to be successful, you have to be consistent with your talent management strategy, which I have already explained, and talent management strategy is based on practices like Performance management, rewards, recruitment selection, talent review. All these are examples of how you are going to make a talent management strategy. Going wrong once and then taking things slow would not be a great way of talent retention. So, you will not be able to retain if you are going wrong and then to change the thing is very slow. (Refer Slide Time: 31:13) Pay continuous attention to your talent pool. That is, on day to day basis, you have to understand the developments. Talent management strategies do not work in isolation. So, as we have seen, it will not work in isolation. It will work with business strategies. Consistency is crucial. The emphasis is placed on the consistency at companies such as
BAE System and IBM can help to illustrate why that is paramount, and you will understand how these companies have worked. (Refer Slide Time: 31:53)
3rd point, which I have talked about the cultural embeddedness is there, and you have to see that you make your strategies already. I have discussed how your talent management team design the strategy so that your employees can carry the core value of the organization. And, the core value of the organization is like, for example, team building – working together, cohesiveness work for the society. So, they can continue. And, new talent coming to the organizational culture should be very clear what type of culture and practices the organization is having, and it is a responsibility of the management to see that they are always helping that employee to imbibe those practices. (Refer Slide Time: 32:41) The last slide, which I would like to discuss is many successful companies make deliberate efforts to integrate their stated core values and business principles into talent management processes; such as hiring methods, leadership development programs,
performance management systems and the compensation and benefits programs that are the outer circle which I have talked about. So, finally, we can take an example of IKEA, the Sweden-based furniture retailer, for example, where applicants are selected using tools that focus on the values and culture fit. Another approach to promoting the organization’s core values and behavioural standards have come through secondary socialization and training. So, if you want to develop your talent with the help of these six principles, make more socialization and training programs for your employees and create employer branding. What is employer branding? That we will see in the next session. Thank you.