Employee Development and

Talent Management
S. No Reference No Particulars Slide
From-To

1 Chapter 1 Introduction to Employee Development 5-19

2 Chapter 2 Employee Development Process 20-53

3 Chapter 3 Employee Development Programmes 54-77

4 Chapter 4 An Introduction to Talent Management 78-91

5 Chapter 5 Talent Acquisition Techniques 92-125

6 Chapter 6 Career and Succession Planning 126-149

S. No Reference No Particulars Slide
From-To

7 Chapter 7 Talent Assessment Tools 150-183

8 Chapter 8 Employee Development and Talent 184-207

Management Strategies

9 Chapter 9 Latest Trends in Employee Development and 208-231

Talent Management

10 Chapter 10 Employee Development Climate and Practices in I 232-245

ndia
 Course Introduction

• Employee development is defined as a process of developing knowledge, skills and abilities of

the employees of an organisation.
• It comes under the framework of Human Resource Development (HRD), which aims to help
and facilitate the employees to develop their personal and professional skills and excel in
achieving individual, group and organisational goals effectively.
• Employee development helps organisations in coping with changes in technology, customers’
demands and needs and market trends.
• Talent management refers to a sub-function of the Human Resource function, which aims at
attracting, acquiring, developing, motivating and retaining the right kind of employees in an
organisation.
Chapter 1: Introduction to
Employee Development
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 8

2 Topic 1 Concept of Employee Development 9-11

3 Topic 2 Approaches to Employee Developme 12

nt

4 Topic 3 Business Strategy and Employee Dev 13

elopment
 Chapter Index
S. No Reference No Particulars Slide
From-To

5 Topic 4 Employee Development to 14

Organisational Development (OD)

6 Topic 5 Theories of Employee Development 15

7 Topic 6 Issues in Employee Development 16

8 Let’s Sum Up 17
• Explain the concept of employee development
• Discuss the various approaches to employee development
• Discuss business strategy and employee development
• Explain how employee development leads to organisational development
• Discuss the theories on employee development
• Describe issues in employee development
 1. Concept of Employee Development

• Employee development is an effort that aims to upgrade the knowledge, skills and abilities of
employees in order to improve their performance and productivity in an organisation.
• An effective employee development programme balances the career goals of an individual and
the goals of an organisation efficiently.
• Employee development is based on the belief that if every employee of an organisation is
developed, it would lead to the development of the whole organisation, which in turn could
further help in improving the performance of the employees as a whole.
• Therefore, employee development is a cyclic process that benefits both the employees as well
as the organisation.
 2. Concept of Employee Development

Objectives of Employee Development

• ‰‰Improving the performance level of the employees
• ‰‰Increasing the overall productivity level of an organisation
• ‰‰Providing the employees expertise in performing various functions and helping them to
coordinate with other employees effectively
• ‰‰Identifying the potential of the employees and preparing them to take more responsibilities
• ‰Increasing the morale and self-confidence of the employees
• ‰‰Increasing the adaptability skills of the employees
• ‰‰Keeping the executives abreast of the developments taking place in their field
 3. Concept of Employee Development

HRD Mechanisms and Organisational Effectiveness

• HRD is a field of management aimed at developing the employees in an organisation by using
and practicing certain methods called HRD sub-systems or mechanisms.
• HRD sub-systems are mechanisms that contribute towards the achievement of HRD goals.
• The various HRD mechanisms include performance appraisal, potential appraisal, career
planning, training and development, job enrichment, career development, organisational
development, job enlargement, rewards etc.
• These mechanisms are used to develop employees so that organisations can improve employee
performance and become more competitive.
 Approaches to Employee
Development

Formal Education Programmes

Assessment Centre

360-degree Feedback

Job Experience

Job Enlargement

Job Rotation

Transfers

Promotions

Coaching

Mentorship
 Business Strategy and Employee
Development

• A strategy can be defined as a series of predicted moves that uses policies and tactics to reach
the desired end or fulfil an objective. HRD emphasises on taking various strategic actions to
deal with a particular situation or problem.

• There are three models to link business strategy and HRD, which are:

– Hard variant Model: This model is less humanistic in approach towards human
resources than modern human resource practices.

– ‰Soft variant Model: This model focuses on dealing with the employees as resources.

– 5-P model: According to this model, HR is an integral part of a business strategy with
focus on 5 Ps: Philosophy, Policies, Programmes, Practices and Processes.
 Employee Development to
Organisational Development (OD)

• Organisational Development (OD) is a process of increasing the effectiveness of an

organisation in terms of productivity and performance quality.

• The main objective of OD is to prepare an organisation to cope with new technologies,

markets and challenges.

• Employee development and OD are interrelated concepts. OD makes the employees aware of
the organisation’s vision and helps them to align their goals with the goals of the organisation.

• OD involves a holistic approach to transform the thinking process and behaviour of the
employees. The executors of OD are called process specialists, facilitators or change agents,
who help the employees in developing analytical skills, coping capabilities, linkage strategies
and the culture of mutuality.
 Theories of Employee
Development

Economic Theory

Psychological Theory

Systems Theory
 Issues in Employee Development

Poor Cross-cultural Preparation

Failure to Manage Workforce Diversity

Improper Succession Planning

Communication Gap
 Let’s Sum Up

• Employee development is defined as a process of developing the knowledge, skills and

abilities of the employees of an organisation.
• ‰‰The field of Human Resource Management (HRM) that takes care of the employee
development function is called Human Resource Development (HRD).
• ‰‰The basic objective of employee development is to ensure that the employees are well
equipped; technically and mentally, to perform their tasks.
• HRD uses numerous long-term and short-term strategies to achieve its objectives.
• The three models to link business strategy and HRD are: Hard variant model, Soft variant
model, and 5-P model.
• ‰‰Organisational Development (OD) can be called a planned process for enabling an
organisation to adapt to its environment and the inevitable changes.
Chapter 2: Employee
Development Process
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 22

2 Topic 1 Steps in the Employee Development 23-50

Process

3 Let’s Sum Up 51
• Describe the steps in the employee development process
• Discuss the relevance of analysing the nature of jobs for employee development
• Explain the organisational culture and business environment for identifying development
needs
• Explain skill gaps from employer’s and employee’s perspective
• Learn how to plan employee development programmes including short-term and long-term
plans
• Discuss the process of arranging resources for employee development
• Explain implementation of the employee development plan
• Describe the measures of evaluating the employee development plan
 1. Steps in the Employee Development Process

• Employee development process of an individual starts from the first day, i.e., the day on which
an individual joins the organisation.
• Induction and orientation of new employees are also effective means of employee
development. It prepares an employee for his/her existing as well as future assignments.
• Before the organisation decides to plan for employee development, it is important to analyse
the kinds of job present in the organisation.
• This will help the organisation to identify the areas in which development initiatives should be
focused.
 2. Steps in the Employee Development Process

• In order to identify the developmental needs of the employees, the first few steps of the
employee development programmes deal with analysing the various aspects of job
performance.
• The jobs need to be analysed and the type of skills required for those jobs is determined. The
organisational culture needs to be understood and analysed by Human Resource (HR) and
senior management personnel.
• This will determine the overall personality requirements of the employee that are needed to fit
into the culture of the organisation.
 3. Steps in the Employee Development Process

• The business environment needs to be understood by the senior management personnel of the
organisation so that the skills and capabilities of employees can be utilised in an efficient and
effective manner.
• Developmental needs of the individual employee also need to be analysed and identified so
that the gap between the desired Knowledge, Skills and Abilities (KSAs) and the current
KSAs can be fulfilled by designing the appropriate employee development programme.
• Once the gaps are identified, then the employee development plans are developed. The
planning is done for both short-term and long-term goals.
 4. Steps in the Employee Development Process

• The next step deals with arranging the necessary resources required for implementing the
development programmes such as identifying the trainers, the vendors or the development
content.
• In the next step, the employee development plan that deals with deciding on the training and
development delivery methods is implemented.
• The final step in the process of employee development plan is evaluating the entire process
from various perspectives so as to ascertain if the gaps have been appropriately filled or not.
 5. Steps in the Employee Development Process

Analysing the Nature of Jobs

• This is the first step in the process of employee development. While analysing the nature of
the job, the outcome is the description of the various work activities within the jobs.
• Tasks are defined as the sets of activities employees are supposed to perform within the job.
• Analysis of the nature of tasks helps to ascertain the knowledge, skills, abilities and other
competencies required to perform the task and the entire job.
 6. Steps in the Employee Development Process

Understanding the Organisational Culture and Business Environment

• The understanding of organisational culture and business environment is required to ensure
that the employee development programmes are in sync with the culture of the organisation.
• The employee development programmes should be built to support the positive culture of the
organisation.
• Analysis of organisational culture helps to make an assessment of the organisation
relationships and structure.
• It also helps to identify if the structure and design of the organisation is aligned with business
performance.
 7. Steps in the Employee Development Process

Understanding the Organisational Culture and Business Environment

• Understanding of business environment is also crucial before designing and implementing the
employee development programmes.
• This is because the business environment will help to predict the future growth of the
organisation.
• Moreover, the strategy of the organisation is strongly influenced by the dynamics of the
business environment.
• The employee development programmes should aim at creating skills and necessary
competencies to promote the organisation’s culture.
 8. Steps in the Employee Development Process

Analysing Gaps from Employer’s Perspective

• Understanding the employer’s perspective aims at identifying whether the employee
development process is in accordance with the business strategy.
• It involves identifying the resources available with the employer towards the development
activities.
• The entire development process is dependent on the philosophy and commitment of the
employer towards the employee development.
• The employer decides the strategic direction of the organisation. This step aims at identifying
how the business strategy will impact the employee development initiatives in the
organisation.
 9. Steps in the Employee Development Process

Analysing Gaps from Employer’s Perspective

• The business strategy will influence how often the development programmes will be
conducted in organisations.
• In organisations where the employee development is considered a strategic function, the
development programmes are more planned and frequent and have deeper ownership and
presence.
• From the employer’s perspective, it needs to be identified how employee development will
contribute to customer satisfaction.
• It needs to be determined what type of development programmes can build better relationship
between customers and employees.
 10. Steps in the Employee Development Process

Analysing Gaps from Employer’s Perspective

• The decision with respect to the resources to be made available for employee development
programmes is also at the employer’s discretion.
• The gap that exists in the skill level of employees with respect to other stakeholders, such as
suppliers, vendor organisations, shareholders, also need to be identified and later addressed
while designing and delivering employee development programmes.
• From the employer’s perspective, he/she needs to be aware of the support available for the
employee development from the managers and employees themselves.
 11. Steps in the Employee Development Process

Analysing Gaps from Employer’s Perspective

• The more committed the employees are towards development initiatives, the more confident
the employer becomes in investing time and resources towards developing the employees.
• The success of employee development programme depends on the fact that to what extent an
employee is interested towards his own development.
• Moreover, the probability of transfer of the skill learnt through training to the actual work
situation also increases.
• Another employer’s perspective is to identify whether the organisation has appropriate time,
budget and potential for employee development.
 12. Steps in the Employee Development Process

Analysing Gaps from Employee’s Perspective

• Analysing gaps from employee’s perspective helps to identify employees who need
development.
• This can be known from identifying the gap between the employee’s current performance and
expected performance.
• The gaps in employee performance can be identified from various aspects of his/her
performance.
• This gap analysis helps to identify those job holders who are not meeting the performance
requirements set for them.
 13. Steps in the Employee Development Process

Analysing Gaps from Employee’s Perspective

• Some of the major reasons that can create development needs in employees are:
– ‰‰Lack of basic skills
– ‰‰Low level of performance

– ‰‰Job restructuring
– ‰‰Introduction of new products

– ‰‰Introduction of new technology

– ‰‰Customer requirements
 14. Steps in the Employee Development Process

Analysing Gaps from Employee’s Perspective

• The analysis of jobs helps in identifying the KSAs required to perform the various tasks.
• The gaps from employee’s perspective help to find out the employees who do not have the
requisite KSAs to perform the tasks.
• The development initiatives for employees can be reactive as well as proactive.
• Reactive development needs are identified on the basis of shortfall in performance and
necessary skills whereas proactive development needs are identified on the basis of
anticipation of the employee career development and future needs of the organisation.
 15. Steps in the Employee Development Process

Analysing Gaps from Employee’s Perspective

• Some of the commonly used approaches to identify gaps from employee’s perspective are:

Performance appraisal

Self appraisal

Proficiency tests
 16. Steps in the Employee Development Process

Analysing Gaps from Employee’s Perspective

• Performance appraisal: This approach is mostly used for identifying gaps in employee
performance and therefore, estimate his/ her development needs. The effectiveness of
performance appraisal dependents largely on the methods used for evaluating employee
performance. A poor quality appraisal tool may not be able to identify gaps efficiently.
• ‰Self appraisal: It is the process where the employee himself/herself identifies his
performance deficiencies and strengths. He/she identifies his/her development needs.
However, the employees may overestimate their capability and may not completely be able to
identify gaps.
 17. Steps in the Employee Development Process

Analysing Gaps from Employee’s Perspective

• Proficiency tests: In this approach, rather than depending on the employees self-rating or on
the supervisors ratings, the employee is given a test to measure both, their knowledge as well
as skill. Cognitive tests are generally administered to evaluate the employees knowledge
required to perform a particular job. The behavioural tests are used to measure the skills
possessed by the employee. Standardised methods of rating are devised to make an accurate
assessment of employee development needs.
 18. Steps in the Employee Development Process

Planning for the Development (Short-term Plans, Long-term Plans)

• Once the developmental needs are assessed from the employee’s perspective, the employer’s
point of view, on the basis of the organisational environment, and finally through analysis of
the job, the next step deals with planning for the employee development programmes.
• This phase is aimed at identifying the set of specifications that will be used to create the
employee development programme.
• This phase helps to decide the objectives of the development programme. It identifies the
employees who will be the part of the development programmes.
 19. Steps in the Employee Development Process

Planning for the Development (Short-term Plans, Long-term Plans)

• In this step, the objectives for the development programme are identified. The needs analysed
in the previous stages are useful in building the objectives of the development programme.
• The objectives of the development programme can be on the basis of performance, conditions
and criteria.
• Performance objectives relate to the outcomes that are finally expected from the employee
after being a part of the development programmes.
• Conditions are related to the situation in which the employee is expected to exhibit the desired
performance.
 20. Steps in the Employee Development Process

Planning for the Development (Short-term Plans, Long-term Plans)

• Criteria refer to establishing and communicating the minimum acceptable levels of
performance and the criteria on which the performance and learning will be evaluated.
• These are normally stated in terms of accuracy in task performance, quality of output and the
pace at which the performance is delivered after the employee has undertaken the
development programme.
 21. Steps in the Employee Development Process

Planning for the Development (Short-term Plans, Long-term Plans)

• The short-term plan aims at redressing the issues of immediate concern and those that act as
building blocks towards achieving the longterm objectives of the development programme.
• The long-term plans are developed to focus on acquisition of the skills required for longterm
and sustained performance of employees.
• They aim at developing and preparing the employee for the future positions he/she is likely to
hold and for his/her career advancement.
• The long-term and shortterm plans should clearly state the desired outcomes of behaviour it
expects from the employees after the development programmes.
 22. Steps in the Employee Development Process

Arranging Resources for Employee Development

• Some of the steps followed in arranging resources for employee development are:

Selecting the trainer or vendor

Preparing lesson plans

Selecting methods and techniques

Preparing materials

Scheduling the development programme

 23. Steps in the Employee Development Process

Arranging Resources for Employee Development

• Selecting the trainer or vendor: The organisations can either choose an internal trainer or
may buy a training programme from an outside vendor. In case the organisation cannot afford
to hire a full-time trainer or if it does not have the subject matter experts in the identified areas
of development, it can buy a training programme from an external vendor.
• Preparing lesson plans: Once the trainer is identified, the lesson plans for the employee
development programme need to be prepared. While the lesson plan is being prepared, the
following factors are considered:
– Content to be covered

– Activity sequencing
 24. Steps in the Employee Development Process

Arranging Resources for Employee Development

– Selection/design of media

– Selection of trainee activities

– Timing and phasing of activities

– Method(s) of instruction
– Evaluation methods to be used

• Selecting methods and techniques: The next step is to choose the methods and techniques
for employee development, for example, case studies, role plays, or conferences or classroom
lectures. The method’s effectiveness in achieving the objectives of the development
programme should be the basic criteria for choosing the method of instruction.
 25. Steps in the Employee Development Process

Arranging Resources for Employee Development

• Preparing materials: This step involves preparing the material for development activities,
which is, getting the slides, books and other printed material required for the development
programme. The programme related information, such as dates of programme, its objectives
and content, should be mentioned in the material.
• Scheduling the development programme: Finally, the schedule of the development
programme is chalked out. The timings of the development programme are decided. The
boarding, lodging, travel and other assistance needed by employees during the programme are
also worked upon.
 26. Steps in the Employee Development Process

Implementing the Plan

• Some of the points to be considered by organisations while implementing the employee
development programme are:

Interest of employees Trainer’s

in the development preparedness and Transfer of training
programme skill

Employee
Blending formal and
development
informal interactions
methods
 27. Steps in the Employee Development Process

Evaluating the Development Plan

• Evaluation of the development plan is done to measure the effectiveness of the entire
programme. The effectiveness of the development programme can be known through:
– ‰‰The degree to which a training (or other Human Resource Development (HRD)
programme) achieves its intended purpose
– ‰‰Measures which are relative to some starting point
– ‰‰The extent to which the desired goal is achieved
 28. Steps in the Employee Development Process

Evaluating the Development Plan

• The purpose of evaluating the employee development programme is to:
– ‰‰Determine whether the programme is meeting the intended objectives that were
identified during the process of identifying the gaps.
– ‰‰Identify strengths and weaknesses of the employee development programme.
– ‰‰Determine cost-benefit ratio of the development programme.
– Evaluation is useful in identifying whether the development programme generated much
higher benefits than the costs incurred on the programme.
– ‰‰Identify who benefited most or the least from the programme or whether the benefits
were equally experienced by the participants.
 Let’s Sum Up

• Employee development is an ongoing process which helps employees to enhance their skills
and knowledge to contribute more effectively towards the organisation. Employee
development process begins from the first day when an individual joins an organisation.
• Business environment, with respect to the social, political, legal, technological and economic
issues is crucial to building and anticipating the strategic direction of the organisation.
• Planning for the development is aimed at identifying the set of specifications that will be used
to create the employee development programme.
• ‰Arranging resources for employee development includes selecting the trainer or vendor;
selecting methods and techniques; preparing materials; and scheduling the development
programme.
 Chapter 3: Employee
Development Programmes
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 56

2 Topic 1 Employee Development Programmes 57-58

3 Topic 2 On-the-Job Development 59-67

Programmes

4 Topic 3 Off-the-Job Development Programs 68-74

5 Let’s Sum Up 75
• Explain employee development programs
• Describe on-the-job development programs
• Discuss off-the-job development programs
 1. Employee Development Programmes

• Employee development programmes are undertaken by an organisation to enhance

knowledge, skills and abilities of employees.
• The employee development programmes of an organisation should be in sync with individual
career plans, organisational strategic objectives and future job requirements.
• Employee development programmes motivate employees by boosting their morale.
• This results in increased job satisfaction by means of internal promotions, up gradations and
transfers.
 2. Employee Development Programmes

Benefits of Employee Development Programmes

• ‰‰Help organisations to identify talented and competent employees who can be promoted.
• ‰‰Keep employees focused on their tasks as they have the desired skills to perform their
roles and responsibilities.
• ‰‰Empower employees to take important decisions related to their work and work teams.
• ‰‰Increase the productivity of employees; thereby enhancing organisational performance.
• ‰‰Inform employees about new developments and other job-related information.
• ‰‰Help employees to align personal goals with business goals.
 1. On-the-Job Development
Programmes

• ‰‰On-the-job development programmes are conducted to train employees while they actually
perform their jobs. These programmes help an organisation to ensure a pool of efficient
employees who are able to perform their current jobs and at the same time ready to take on
higher responsibilities.
• On-the-job development programmes aim at developing and training employees about various
skills and competencies needed for performing the current job or future positions at the
workplace.
• On-the-job programmes are instructional and practice-based programmes wherein employees
observe their seniors performing their jobs and gradually carry out the jobs on their own.
 2. On-the-Job Development
Programmes

Coaching and Mentoring

• Coaching is an employee development method in which a highly skilled, experienced and
knowledgeable person is formally assigned the responsibility of developing the skills and
competencies of other employees.
• The main advantage of the coaching method is that it helps in developing one-to-one
relationship between employees and seniors.
• Mentoring involves one-to-one coaching for a period of several years until the individual
(mentee) is eventually capable enough of replacing the mentor itself. A mentor provides both
personal and professional support to the mentee.
 3. On-the-Job Development
Programmes

Understudy
• In this method of employee development, an employee is made to work as an assistant to the
current job holder. The employee learns by observing and emulating the behaviour of the job
holder.
• The trainee works directly under a senior person whose position he/she has to replace in the
future.
• The senior person is given the responsibility for the trainee’s development of necessary skills
and competencies.
• This method makes the trainee feel more confident in handling new responsibilities as he/she
has observed the predecessor performing same tasks.
 4. On-the-Job Development
Programmes

Job Rotation
• Job rotation is an approach to employee development where employees are shifted from one
assignment to the other on a continuous basis so as to train them in various tasks. Employees
are moved to different jobs, functions, departments and areas within an organisation.
• Job rotation helps to broaden the knowledge, skills and competencies of employees as they are
exposed to different challenges on a regular basis. It helps employees to develop their
leadership and team building skills and makes them more cooperative.
• Job rotation makes employees more flexible and adaptable at the same time developing their
interrelationships across departments in the organisation.
 5. On-the-Job Development
Programmes

Special Projects Assignments

• A special project assignment is considered to be a flexible method of employee development.
• In this method, special, need-based project assignments are given to employees.
• These projects are given keeping in mind the weaknesses of an employee in his/her current
performance and on the basis of specialised skills required for future positions identified.
• These projects may be given to an individual employee or a group of employees.
• This method not only helps employees to acquire the desired skills and competencies but also
learn to work in a team culture, thereby leading to the development of various skills.
 6. On-the-Job Development
Programmes

Selective Readings
• Selective readings is a self-development programme where employees especially executives
are encouraged to have a planned reading schedule.
• The readings include books, articles, news etc. that lead to the addition of knowledge and
skills among employees.
• However, employees often complain that due to the work responsibilities, they do not get
enough time to support their work with the insight of selective readings.
 7. On-the-Job Development
Programmes

Multiple Management
• Under the multiple management method, a junior board of directors is formed. This is a
method of training junior executives for handling senior-level responsibilities.
• The junior board of directors discusses issues that are generally dealt at the senior level.
• In this method, young executives learn decision-making skills and the board of directors
receive the benefit of wisdom of the executive team. Moreover, in the long-run, the vacancies
in the board of directors can be filled from junior board members.
 8. On-the-Job Development
Programmes

Apprenticeship Training
• Apprenticeship training is one of the oldest forms of training in which trainees serve as
apprentices and are paid some stipend during the training period.
• Apprenticeship has been used as a method of training in a large number of professions such as
teaching, law, accountancy, medicine, engineering, etc. The advantages of apprenticeship
training are as follows:
– ‰‰Provides monetary benefits such as stipend to trainees
– ‰‰Helps in the acquisition of important valuable skills
– ‰‰Combines practical knowledge with theoretical knowledge
 9. On-the-Job Development
Programmes

Self-Instructional Mode
• Self-instructional mode is a tool of employee development in which employees take the
responsibility of their own development and learning without face-to-face communication
with a trainer.
• Learning through audio-visual instructions is an example of this type of programme.
• In the self-instructional mode, employees have a high degree of control on what he/she wants
to learn at his/her own pace.
• Trainees of this programme master the training content on their own without the
instructor/trainer who merely acts as facilitators. Instructors provide answers to the trainees’
questions or evaluate their learning.
 1. Off-the-Job Development
Programmes

• Off-the-job programmes of employee development focus on imparting training to employees

at the location that is away from their actual workplace.
• This is done to keep the entire focus on employee skill acquisition. Various limitations of on-
the-job methods of training led to the usage of off-the-job methods.
• Off-the-job training is generally taken care by external sources such as trainers or instructors
or consultants.
• Off-the-job programmes are conducted for a particular batch of employees with clearly set
objectives, well-prepared instructional material and established tools of evaluating
effectiveness of the programme.
 2. Off-the-Job Development
Programmes

Special Courses
• Under a special courses programme, a trainee attends a full-time training programme away
from a workplace to undertake specialised training in the identified area.
• An organisation may have in-house trainers to conduct special courses training programmes.
Also, the organisation sponsors courses in which employees enrol in different universities or
colleges. These courses can be for short or long duration degree or certification programmes.
• Many large organisations invest in their employees by providing them an option to attain
scholarship and study abroad such as Infosys and Philips. This is done to help them to get
ready for higher positions.
 3. Off-the-Job Development
Programmes

Case Study
• Case study is a method where employees address real-life situations by discussing, analysing
and solving problems.
• The major objective of the case study method is to openly discuss and then arrive at solutions
or suggestions for various problems.
• The case study method primarily aims to develop the analytical skills of employees through
discussions, joint problem solving and creative thinking.
• The success of the case study method for employee development depends on the expertise of
the trainer in handling cases and subject knowledge.
 4. Off-the-Job Development
Programmes

Role Playing
• Role playing denotes the method of human interaction that demands realistic behaviour in
imaginary situations.
• Under this method, the trainees are given a particular situation and assigned with different
roles to play.
• The description of the situation is provided to the trainees and on that basis they choose their
course of action to address the situation given to them.
• The focus of role playing is on doing and experiencing. Role plays foster interpersonal and
human relational skills of employees.
 5. Off-the-Job Development
Programmes

In-Basket Exercise
• The in-basket exercise method focuses on developing the decision-making skills of trainees.
Employees are given business papers, reports, memos, letters, emails, etc. related to a
particular job. They are required to study the material and make their recommendations.
• Various recommendations received from trainees are compared and the result is compiled in a
report format. This method has been used mostly to learn about executive management and
supervision. This is widely used method in promoting employees.
• In-basket exercises determine how employees work under pressure and manage their time.
 6. Off-the-Job Development
Programmes

Vestibule Training
• Vestibule training is a commonly used training method for technical staff.
• Employees are trained in a realistic job setting that is different from the one in which they
actually work.
• Training is provided by qualified instructors at a place, which is an imitation of the actual
work conditions of the workplace. It may be called learning before doing process.
• Vestibule training provides employees to get a complete feel of doing a job but without the
pressures of the actual job. The problem of transfer of training is also successfully dealt
through vestibule training.
 7. Off-the-Job Development
Programmes

Classroom Training
• Classroom training is commonly used to train executive and managerial level employees. This
method is used to teach concepts related to various functional areas of management in a
classroom.
• This method has been found very useful when conceptual training is to be provided to a large
group in a limited time duration.
• Classroom training is also called one of the most cost-effective methods of employee
development.
• However, the success of this method largely depends on the classroom management skills of
the instructor and his/her clarity on the concepts to be taught.
 Let’s Sum Up

• ‰Employee development programmes are initiated in organisations to prevent the

obsolescence of skills among employees and lower employee absenteeism within
organisations.
• ‰‰Employee development programmes offered by organisations are categorised as on-the-
job programmes and off-the-job programmes.
• On-the-job development programmes include coaching and mentoring, understudy, job
rotation, special projects assignments, selective readings, multiple management,
apprenticeship training and self-instructional mode.
• Off-the-job development programs include special courses, case study, role playing,
conferences/discussion approach, simulation exercises and management games, sensitivity
training, in-basket exercise, vestibule training, classroom training and programmed
instructions.
Chapter 4: An Introduction
to Talent Management
 Chapter Index
S. No Reference No Particulars Slide
From-To

1 Learning Objectives 80

2 Topic 1 Concept of Talent Management 81-83

3 Topic 2 Strategic Talent Management 84

4 Topic 3 Talent Management Process 85

5 Topic 4 Principles and Practices of Effective T 86-87

alent Management

6 Topic 5 Significance of Employee Developme 88

nt for Talent Management

7 Let’s Sum Up 89
• Discuss the concept and importance of talent management
• Describe strategic talent management
• Explain the talent management process
• Discuss the principles and practices in the field of talent management
• Explain the importance of employee development in talent management
 1. Concept of Talent Management

• Talent management is a human resource concept under which the HR managers of an

organisation anticipate the human capital (employee) requirements and also plan for
developing the human capital.
• Here, planning involves various activities such as sourcing, attracting, selecting, training,
developing, retaining, promoting or moving employees.
• According to Tansley and Tietze, Talent management contains strategies and protocols for
the systematic attraction, identification, development, retention and deployment of individuals
with high potential who are of particular value to an organisation.
 2. Concept of Talent Management

• Talent management is a set of comprehensive and carefully coordinated set of activities that
ensure that the organisation must have a pool of capable employees at any given point of time
so that its work does not suffer.
• Major activities in talent management are related to retaining, developing, training and
motivating employees.
• This is indeed necessary because the organisations spend a lot of time, money and effort in
recruitment and on-boarding of the employees but these organisations do not pay much
attention towards retaining, developing and motivating these employees.
 3. Concept of Talent Management

Need for Talent Management

• Talent management is needed because it has become increasingly important for the success
and survival of organisations in the long run.
• The world is currently witnessing a period of downturn and this phenomenon has forced the
organisations world over to work and carry out their operations with lesser budget which
implies that these organisations must perform the same operations with lesser number of
employees. This situation makes talent management a very important aspect of organisation
and also of management’s function.
• Talent management also makes sure that the organisations develop the employee workforce,
which in turn helps the organisation to grow.
 Strategic Talent Management

• Strategic talent management simply implies the use of strategy in every activity of talent
management.
• Strategic talent management ensures that the organisation anticipates the manpower needs as
per its strategic objectives. The needs can be addressed, changed and adjusted according to the
organisation’s requirements.
• Strategic talent management leads to uniform policy of skill development, which states that
the HR department should not waste effort on acquiring skills that are not relevant for the
organisation.
• It also ensures that the process of talent acquisition is in sync with the business strategy where
managers hire people with the skills and competencies suited to the strategy of the
organisation.
 Talent Management Process

Step 1 - Conduct a Job analysis

Step 2 - Workforce Planning

Step 3 - Recruiting the Talent

Step 4 - Employee Testing and Selection

Step 5 - Employee development, training and Orientation

Step 6 - Employee Retention

Step 7 - Performance Appraisal/ Potential Appraisal

Step 8 - Career Planning

Step 9 - Succession Planning

Step 10 - Employee Separation

 1. Principles and Practices of
Effective Talent Management

• The research found that the most successful companies in terms of talent management adopt
six principles, which are:
– Alignment with strategy
– Internal consistency
– Cultural embeddedness
– Management involvement
– A balance of global and local needs
– Employer branding through differentiation
 2. Principles and Practices of
Effective Talent Management

• Some of the best practices in talent management are:

– ‰‰It is important that the definition and philosophy of talent management is clearly
communicated and shared among all the members of the organisation for an effective
talent management.
– ‰‰The managers responsible for talent management must be aware of the external
environment and the issues related to skill availability that is likely to influence the talent
management processes of the organisation.
– ‰‰The managers need to be aware and anticipate the problems in talent management
and devise ways to overcome these barriers.
– ‰‰The benchmarking organisations need to be identified. The mangers need to identify
the best organisations in their industry that use the best talent management processes and
strategies.
 Significance of Employee
Development for Talent
Management

• Employee development is a part of talent management process. This is a very important step
for the talent management function because in its absence, the HR managers would not be able
to ensure a sustained supply of appropriate internal and external pool of candidates for filling
the vacancies in the organisation.
• The process of talent management can be understood as a pipeline consisting of four elements,
namely, talent planning, resourcing, talent development and talent pool.
• When an organisation provides training such as technical and process training to the
employees, they enhance the skills of the employees which lead to employee development.
 Let’s Sum Up

• Talent management is a set of comprehensive and carefully coordinated set of activities, which
ensures that the organisation must have a pool of capable employees at any given point of time
so that its work does not suffer.
• ‰‰‰‰Talent management should be synchronised with the organisation’s business strategy
and practiced throughout the organisation along with all the major HR functions.
• ‰‰Strategic talent management simply implies the use of strategy in every activity of talent
management.
• Talent management is a comprehensive and continuous HR function that starts even before the
individual joins the organisation and continues till he/she leaves the organisation.
Chapter 5: Talent Acquisition
Techniques
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 94

2 Topic 1 Talent Acquisition in Organisations 95-98

3 Topic 2 Techniques of Talent Acquisition 99-112

4 Topic 3 Talent Acquisition Process 113-119

5 Topic 4 Latest Trends in Talent Acquisition 120-122

6 Let’s Sum Up 123

• Explain the concept of talent acquisition
• Discuss various internal and external techniques of talent acquisition
• Describe the steps involved in the process of talent management
• List the challenges faced by managers in talent acquisition
• Discuss the latest trends in talent acquisition
 1. Talent Acquisition in Organisations

• The process of talent acquisition involves finding, attracting, assessing and selecting
employees for various positions within an organisation.
• Right talent acquisition strategies help in recruiting and selecting deserving candidates as per
the requirements of an organisation to made optional utilisation of resource.
• Earlier, talent acquisition was considered to be a back-office HR function. However, with
increased importance of employees in the successful accomplishment of goals and objectives,
talent acquisition has gained popularity as a complete strategic function of an organisation.
 2. Talent Acquisition in Organisations

• In the last few years, it has become difficult for organisations to find employees with the
desired knowledge, skills and abilities. This has made talent acquisition crucial for the success
of organisations.
• In today’s competitive scenario, mere filling vacant positions would not serve any purpose to
an organisation if it aspires to stay ahead of competitors.
• Leading organisations have aligned talent acquisition strategies with their business strategyies.
• The talent acquisition process requires thorough consideration and thoughtful supervision.
This is because acquiring talent takes huge cost, time and effort on the part of an organisation.
 3. Talent Acquisition in Organisations

Objectives of Talent Acquisition

• Having a systematic talent acquisition process in place can ensure optimum utilisation of
scarce resources. The main objectives of talent acquisition are to:
– ‰‰Ensure that employees are committed towards meeting organisational goals and
objectives
– ‰‰Identify areas where additional and new skills are required as the business grows

– ‰‰Identify the sources and location of the potential talent pool

 4. Talent Acquisition in Organisations

Objectives of Talent Acquisition

– ‰‰Ensure that the current talent is being put to optimal use; thereby enhancing
productivity
– ‰‰Anticipate employee turnover and get prepared for replacement in order to prevent
work stoppage
– ‰‰Recognise skill gaps that need to be filled from external sources after the candidates
from within have been identified for succession planning
 1. Techniques of Talent Acquisition

• For successful talent acquisition, it is essential for HR professionals to have a clear

understanding of business requirements so that people can be hired accordingly.
• Talent is acquired using various techniques depending on business requirements, skills
required to perform particular tasks, etc. There are two types of talent acquisition techniques,
namely:
– Internal techniques of talent acquisition
– External techniques of talent acquisition
 2. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• Internal sources of talent acquisition involve filling up positions by selecting people from the
current workforce of an organisation.
• Employees are selected based on their past performance in the organisation, skills, experience,
employee referrals, etc.
• This is important because there needs to be considerable incentives for the existing employees,
who perform well, to move ahead in the organisation.
 3. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• Various internal techniques of talent acquisition are:

Internal Techniques
of Talent Acquisition

Internal Former Employee Succession

Advertisements Employees Referrals Planning
 4. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• ‰Internal advertisements: Also called job posting, they involve publicising a job opening
among existing employees, often by posting the job on the company’s intranet, in-house
magazines or notice board. An internal advertisement mentions about the job position, related
department, skills and qualifications required, etc. The existing employees evaluate their
knowledge skills and abilities with respect to the job opening and then formally communicate
to the concerned department about their interest to apply for the job.
 5. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• ‰‰Former employees: Employees who have worked in the past with the organisation are
also considered an effective internal source of talent acquisition. These can be employees who
moved to some other organisation and are willing to come back once again.
• Employee referrals: In this technique, the current employees of the organisation are asked to
suggest the names of candidates who are known to them and have the desired skills and
abilities for the job, and are willing to work for the organisation. Employees may suggest the
names of their friends or relatives who they think are suited for the job and the organisation.
 6. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• Succession planning: It is an internal technique of talent acquisition that aims to ensure a
suitable and sufficient supply of successors for the current and future key jobs within an
organisation. In succession planning, key jobs are identified and then analysed. After that, the
knowledge, skills and abilities of the existing employees are assessed for suitability to the key
positions. The most suitable employees are then gradually trained and developed for these key
positions.
 7. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• The following are some important benefits of internal techniques of talent acquisition:
– ‰‰An internal technique saves time, cost and effort of an organisation as the
organisation need not undergo a proper recruitment and selection process.
– ‰‰It is useful in motivating employees as it offers career and growth opportunities to
them within the organisation.
– ‰‰It leads to the retention of employees as it boosts employee morale.
– ‰‰It makes employees more committed towards organisational goals and objectives.
 8. Techniques of Talent Acquisition

Internal Techniques of Talent Acquisition

• The following are some limitations of internal techniques of talent acquisition:
– ‰‰An internal technique limits the probability of acquiring diverse talent for an
organisation, thus leaving a vast pool of outside talent unexplored by the organisation.
– ‰‰It restricts the entry of fresh talent into the organisation. Talent from outside may
bring new thoughts, innovation and creativity to the organisation.
– ‰‰It is not always possible to use internal techniques for talent acquisition as the supply
of talent within the organisation is limited.
– ‰‰It may lead to the lack of morale and motivation amongst employees who are not
selected for senior positions.
 9. Techniques of Talent Acquisition

External Techniques of Talent Acquisition

External Techniques
of Talent Acquisition

Management Campus Walk-ins and

Advertisements Job Portals Poaching
Consultants Recruitment Write-ins
 10. Techniques of Talent Acquisition

External Techniques of Talent Acquisition

• Management consultants: This method of talent acquisition is generally used to acquire
executives for higher level positions in the organisation. The consultants act on behalf of the
employer organisation and conduct the entire process of acquisition in return for a particular
amount of fee from the organisation.
• ‰‰Advertisements: This is one of the oldest techniques of talent acquisition. Organisations
generally advertise job vacancies in newspapers, professional journals and business
magazines. This is a quick method as information reaches a large number of potential
candidates in very less time.
 11. Techniques of Talent Acquisition

External Techniques of Talent Acquisition

• Campus recruitment: This is an important technique to acquire talent for entry-level
positions in an organisation. The representatives from the organisation empanel premium
colleges and institutions on the basis of their requirement. Then, they interview final-year
students from these institutions at the campus.
• Walk-ins and write-ins: This technique of talent acquisition involves applicants to directly
write to the organisation about their qualifications and interest to work in the organisation.
They can walk up to the organisation’s HR department with their resumes to communicate
their interest in employment offered by the organisation.
 12. Techniques of Talent Acquisition

External Techniques of Talent Acquisition

• Job portals: It is an external technique of talent acquisition where the advertisement for a
vacant job position is posted on the Internet, either on a job portal such as naukri.com or on
organisation’s own website in the Career section.
• Poaching: It is a technique used to acquire talent for skills high in demand but low in
availability. In this method, the employees of another competing organisation are approached
and attracted to work for the organisation through lucrative job offers. They are offered huge
monetary and non-monetary benefits.
 13. Techniques of Talent Acquisition

External Techniques of Talent Acquisition

• The benefits of using external techniques of talent acquisition are as follows:
– ‰‰Enable organisations to have a large database of applicants from which desirable
candidates for different openings can be selected
– ‰‰Permit the entry of new talent in organisations leading to higher creativity and better
idea generation
– ‰‰The chances of bias are minimised in case the organisation uses the external sources
for talent acquisition.
 14. Techniques of Talent Acquisition

External Techniques of Talent Acquisition

• The limitations of using external techniques of talent acquisition are as follows:
– ‰‰The current employees may feel frustrated in the organisation if they are not given
enough opportunities for growth and advancement.
– ‰‰Acquiring talent from external sources may be much more costly and time consuming
for the organisation since it involves advertising the positions followed by the lengthy
process of selection.
– ‰‰These techniques may not be very useful if positions have to be filled in a short span
of time.
– ‰‰Existing managers may feel frustrated and leave the organisation if outsiders are
given a higher post.
 1. Talent Acquisition Process

• Identify a Vacancy
Step 1

• Source and Attract

Step 2

• Screen and Assess

Step 3

• Interview and Offer

Step 4

• Check and on Board

Step 5
 2. Talent Acquisition Process

• Identify a vacancy: The first step of talent acquisition involves finding out talent requirement
keeping in mind the organisation’s growth and development plans, departmental needs and
skill requirements. Careful identification of talent requirement would ensure that the right
person is hired for the right position at the right time.
• Source and attract: In this step, the organisation develops a complete acquisition plan that
should be well-documented and carefully drafted so as to attract the most suitable candidates
to apply for positions within the organisation. This would help in building a vast pool of
qualified applicants to choose from. After that, the organisation decides whether to opt for
internal or external sources to source the talent from.
 3. Talent Acquisition Process

• Screen and assess: Once the applications are received, the next step is to screen them. It
should be ensured that all applications are carefully considered and analysed. The shortlisted
candidates are subjected to assessment through various types of selection tests, personality
tests, aptitude tests, achievement tests and interest tests. These tests measure the ability of
individuals to perform a particular task or job for which the candidate is being hired.
• Interview and offer: Those candidates who are found suitable after the assessment are further
subjected to interviews. A well-designed interview process helps to provide the necessary data
about the candidates’ knowledge, skills and abilities, and final suitability for the job. Once the
candidate is found suitable after the interview, the job offer is made to him/her.
 4. Talent Acquisition Process

• Check and on board: This is the final step of the talent acquisition process. This involves
conducting a medical check up and background/reference checks so as to determine the
further suitability of candidates for the job. The background check can be done from
references given in the application form or from previous employers and supervisors of the
candidate. Once the candidate clears the reference check and medical examination, formal
induction and socialisation activities are undertaken to familiarise new employees with the
organisation, job profiles, peers, seniors and subordinates.
 5. Talent Acquisition Process

Challenges in Talent Acquisition Process

• ‰The first major challenge is to identify, prepare and list out attributes and skills required in
the person seen as suited for the job. In the absence of accurate analysis, a job can be offered
to an inappropriate candidate that could lead to the wastage of time and money of the
organisation.
• ‰‰The next challenge is to design a job advertisement that will be able to generate the
interest of candidates to apply for the job. Any unclear statement in the advertisement may
attract an undesired pool of candidates.
• ‰‰Shortlisting and pre-screening a large number of applications is a challenge in the process
of talent acquisition. It has to be ensured that an unsuitable candidate is not shortlisted and the
suitable candidates are added to the list.
 6. Talent Acquisition Process

Challenges in Talent Acquisition Process

• ‰Another challenge is to minimise the cycle time involved in the entire process so that there
is minimum time between a vacancy having arisen and the position been filled. The delay in
this strategic move could lead to financial and operational loss for the organisation, if
deadlines are not met on the time.
• ‰‰Encouraging the selected candidates to join the organisation is another challenge as the
organisation loses a lot of resources and time if the selected candidates refuse to join.
 7. Talent Acquisition Process

Challenges in Talent Acquisition Process

• ‰‰Once the candidate joins the organisation, another major challenge is to retain the his/her.
• ‰‰After acquiring the talent, it is important for the organisation to bring the concept of
employee engagement by creating correlation between the occupied skills of an employee
towards goals and objectives of an organisation. If this does not take place, the prime motive
of the talent acquisition process can be defeated.
 1. Latest Trends in Talent
Acquisition

• ‰‰Considering the importance of talent for an organisation, the war for talent is further
heating up. Now, organisations have started developing new trends to win this war.
• All efforts are being made to ensure that organisations are able to acquire the best talent as it is
the biggest source to attain a competitive advantage for an organisation.
• The following are some latest trends being practised in organisations, aimed at acquiring the
best talent:
– ‰‰Developing and offering competitive pay packages, which are not “one size fits all”
but are rather tailor-made to suit the requirements of employees being selected.
 2. Latest Trends in Talent
Acquisition

– ‰‰‰‰Managers are focussing on retaining talent by building novel strategies of

employee engagement. The strategies include the training and development of the human
resource leading to the advancement of their skills, confidence and motivation level.
– ‰‰Organisations are using sophisticated marketing techniques to create awareness and
build their image as an employer brand the for existing and prospective employees. This
makes it easy for organisations to attract the right talent.
– ‰‰Organisations are creating and increasing their presence on social media as employer
brands, keeping in mind the popularity and impact of social media on people.
 3. Latest Trends in Talent
Acquisition

– ‰Organisations nowadays fulfil talent shortage by offering flexible work options to

people. As per the requirements of a job, an individual can work as full-time employee,
part-time employee or even freelancer.
– ‰‰With the advancement of technology, organisations are trying to reach out to the
talent through their mobile phones by launching mobile apps.
– ‰‰Organisations leverage the popularity of professional social networking sites, such as
LinkedIn, to reach out to the talent pool and further make efforts that the information is
shared among the potential candidates.
 Let’s Sum Up

• Talent acquisition is a process of identifying and selecting the most skilled workforce for an
organisation with an aim to make the optimum utilisation of resources.
• ‰‰The talent acquisition process requires thorough consideration and thoughtful supervision.
• ‰‰Internal sources of talent acquisition involve filling up positions by selecting people from
the current workforce of an organisation.
• External techniques of talent acquisition focus on exploring and acquiring talent from a vast
talent pool outside an organisation.
• Talent acquisition is a process of planning, attracting, selecting, motivating and retaining
talent in an organisation. It is a systematic approach to hiring and involves a number of steps.
Chapter 6: Career and
Succession Planning
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 128

2 Topic 1 Concept of Career 129-133

Career Planning
3 Topic 2 134-140

4 Topic 3 Succession Planning 141-145

5 Topic 4 Development of Talent as a Strategy 146

for Leadership Development

6 Let’s Sum Up 147

• Explain the concept of career
• Discuss the concept of career planning
• Describe the role of succession planning in an organisation
• Explain how the development of talent as a strategy leads to leadership development
 1. Concept of Career

• Career is explained in terms of the number of positions held by an individual throughout his
work life. This indicates the degree to which the employee has achieved the career goals.
• In simple words, career can be defined as a sequence of work-related activities performed by
an individual that gives meaning, stability and continuity to his life.
• The career of an individual also implies the changes that take place in his work attitude while
passing through various stages of life. Therefore, career includes the different life positions
held by the individual over a period of time.
 2. Concept of Career

• Schein has defined career as, A sequence of positions held by a person during the course of
his/her lifetime. It comprises a series of work-related activities that provide continuity, order
and meaning to a person’s life.
• In the words of Hall, Career consists of the changes in values, attitudes and motivation that
occur as persons grow older.
• Earlier, the term ‘career’ was referred to the job held by a person. However, now it is
considered as a lifelong process of learning, acquiring new skills and the sum total of all
experiences.
• Today, most of the contemporary organisations help their employees by identifying career
goals, providing career counselling, giving developmental opportunities and resources. This
helps the employees to plan their careers effectively.
 3. Concept of Career

Career Stages

Exploration Stage

Establishment Stage

Maintenance Stage

Withdrawal Stage
 4. Concept of Career

Career Stages
• Exploration stage: It represents the pre-employment stage of an individual. For most of the
individuals, it ends in mid of their twenties as they step into their professional lives. This stage
is least relevant for organisations as it comes prior to the employment of individuals.
• Establishment stage: This stage provides first job experiences, peer group evaluations and
concerns to individuals. In this stage, individuals tend to make job-related mistakes and learn
from these mistakes. In addition, they assume their responsibilities by starting search for work
and joining their first job. During this stage, individuals try to establish their position in the
society, get recognition for their work and advance in their careers.
 5. Concept of Career

Career Stages
• Maintenance stage: This stage is highly stressful for individuals as they are no longer viewed
as learners. The mistakes committed by them are evaluated seriously by their seniors and may
invite penalties or punishments. In this stage, individuals’ performances improve, become
stable or start declining.
• Withdrawal stage: At this stage, individuals step out of their positions to make way for other
deserving younger individuals. Regardless of whether an individual had a glorified career or a
dismissal job, towards the end of this stage, they are asked to retire from the organisation.
They are expected to make adjustments and get along with the people, things and their
surroundings to lead a happy retired life.
 1. Career Planning

• Career planning is a technique that develops the complete career plan of an individual or a
young employee. It is defined as a process of making employees aware of their knowledge,
skills, abilities and other competencies to plan their career efficiently.
• Career planning mainly emphasises on assisting the employees in aligning their personal goals
with the organisational goals.
• Career planning is not an event or end in itself, but a continuous process to develop a
workforce for achieving optimum results.
• An individual who is unable to translate his career plan into action within the organisation
may probably quit the job. Thus, organisations should help employees in career planning so
that both may satisfy each other’s needs.
 2. Career Planning

• Wrether and Davis have defined career planning as, The process by which one selects career
goals and the path to these goals.
• According to Armstrong, Career planning shapes the progression of individuals with an
organisation in accordance with the assessment of organisational needs and the performance,
potential and preferences of individual members of the enterprise.
• Therefore, career planning can be referred to as a continuous process of identifying an
individual’s interest, aptitude, values and abilities, to build appropriate career goals by
exploring various developmental opportunities.
• Employees, aware of their career growth in an organisation, tend to work for a longer time
with such organisations.
 3. Career Planning

Objectives of Career Planning

• ‰‰Attract and retain the competent and talented workforce by offering them a prospective
career and not only the job.
• ‰‰Use human resources effectively and efficiently to achieve greater productivity.
• ‰‰Reduce employee turnover.
• ‰‰Improve employee morale and motivation.
• ‰‰Meet the current and future requirements of an organisation for human resource on a
timely basis.
• ‰‰Correct the previous mistakes of employee placement.
• ‰‰Identify the training needs at individual and organisational levels.
• Develop a course of action for employees to attain career goals.
 4. Career Planning

Role of Stakeholders in Career Planning

• ‰‰The employee: As discussed, principally it is the responsibility of the individual to think
and take decisions about his career. This is because it is the employee who knows the best
about the future career path he wants to select. For this, the employee needs to make an
accurate assessment of his capabilities and interests. This may further help the employee to
plan career in the right direction.
• The organisation: It also supports the career planning of its employees through a set of
policies and procedures. These policies and procedures are implemented through the Human
Resource (HR) department of the organisation. An organisation ensures providing various
developmental opportunities for the career growth of its employees.
 5. Career Planning

Role of Stakeholders in Career Planning

• ‰‰The immediate supervisor: In an organisation, it is the supervisor who views the
employees’ performance most closely. Hence, the supervisor knows the strengths and
weaknesses of the subordinates and therefore, can provide them with genuine feedback and
appropriate guidance for career planning. In addition, the supervisor can use special tasks and
assignments to shape the skills of the subordinates.
 6. Career Planning

Process of Career Planning

Assessment of Career Needs and Goals

Exploration of Career Path

Alignment of Needs and Opportunities

Formulation of Action Plans and Periodic Review

 7. Career Planning

Merits and Demerits of Career Planning

• An effective career planning provides the following merits to employees:
– ‰‰Encourages employees to realise their career opportunities.
– ‰‰Helps employees to select careers that are appropriate for their lifestyle, preference,
family culture and scope for self-development.
– ‰‰Motivates employees by boosting their morale. This results in higher job satisfaction
through internal promotions, up-gradations and transfers.
• Career planning also contains certain demerits, which are:
– ‰It may not be possible for organisations to plan the career of each employee.
– ‰Career planning is a process that has long-term implications.
 1. Succession Planning

• Succession planning is the process of ensuring a suitable supply of successors for current and
future key jobs.
• In other words, it is a method of recognising and developing the potential of employees within
the organisation to fill the key positions. Therefore, succession planning helps an organisation
to get ready for a transition in leadership.
• It is an essential activity that focuses on planning and managing the career of individuals to
optimise their needs and aspirations. It helps in identifying in advance the people who can
succeed to specific leadership positions on the basis of their skills.
• In this way, succession planning ensures the availability of the right number and the right kind
of people for key positions in the organisation.
 2. Succession Planning

Features of Succession Planning

• ‰‰Ensures the growth prospects of an organisation.
• ‰‰Represents a future-oriented activity.
• ‰‰Identifies potential employees as a replacement for key positions in an organisation.
• ‰‰Creates a healthy and harmonious environment within an organisation.
• ‰‰Grooms existing employees for future vacancies, especially at the key positions.
• ‰‰Acts as a basic part of career planning.
• ‰‰Motivates internal employees by ensuring promotion from within the organisation.
 3. Succession Planning

Objectives of Succession Planning

• ‰Ensure filling up of key leadership positions in the organisation with minimum time loss and
work stoppage.
• ‰‰Develop people who have the potential to succeed in key leadership positions.
• ‰‰Ensure smooth transition of leadership from one person to the other.
• ‰‰Provide opportunities to capable employees within the organisation to achieve leadership
roles.
• ‰‰Serve an organisation as a tool for internal talent acquisition.
• ‰‰Identify successors for important leadership roles from within the organisation.
 4. Succession Planning

Process of Succession Planning

Identify Key Positions in the Organisation

Analyse Future Requirement

Identify Probable Successors

Identify Gaps

Formulate Succession Plan and Strategies

Implement Succession Plan and Developmental Strategies

Monitor and Track Progress

Review and Evaluate the Effectiveness of Succession Plan

 5. Succession Planning

Merits and Demerits of Succession Planning

• The various benefits of succession planning are:
– ‰It keeps the organisation ready for any unplanned vacancy that may arise due to sudden
exit by some key employee.
– ‰‰It facilitates the organisation to have a clear assessment of the critical competencies
available within the organisation and helps employees to have a clear understanding of
their career path.
• Certain demerits of succession planning:
– ‰‰‰‰Identifying a wrong person to fill up future leadership positions can have a
negative impact on the performance of the organisation.
– Compromising on the importance of lateral mobility.
 Development of Talent as
a Strategy for Leadership
Development

• An organisation uses various talent development strategies to ensure leadership development.

• A comprehensive talent development strategy identifies and promotes the development of
individual talent, skills and capabilities. This ultimately leads to the development of leadership
skills within the individual.
• The talent development starts from the point when an individual is hired in an organisation.
Therefore, right from the time the employee joins the organisation, the path of leadership
development is also built and tread upon.
• Talent development strategies help employees to develop skills that may enable them to
perform leadership roles in the future.
 Let’s Sum Up

• Career is explained in terms of the number of positions held by an individual throughout his
work life.
• ‰‰Career of an individual implies the changes that take place in the work attitude of
individuals as they pass through various life stages.
• ‰Career planning is a technique that develops the complete career plan of any individual or
young employee.
• Succession planning is the process of ensuring a suitable supply of successors for the current
and future key jobs.
• Talent development strategies help employees to develop skills that may enable them to
perform leadership roles in future.
Chapter 7: Talent Assessment
Tools
 Chapter Index
S. No Reference No Particulars Slide
From-To

1 Learning Objectives 152

2 Topic 1 Talent Assessment Tools 153-157

3 Topic 2 Concept of Performance Managemen 158-168

t

4 Topic 3 Concept of Performance Appraisal 169-177

5 Topic 4 Concept of Potential Appraisal 178-180

6 Let’s Sum Up 181

• Describe the concept of talent assessment and explain the meaning and types of assessment
tools
• Explain the concept and significance of performance management
• Discuss the concept, process, objectives, method, benefits and problems of performance
appraisal
• Explain the concept and techniques of potential appraisal
 1. Talent Assessment Tools

• Talent refers to the set of skills that an individual possesses. Such skills aid in learning and
overall success of the individual professionally as well as personally.
• Talent relates to skills that comprise of cognitive abilities such as attention, logic and
reasoning, as well as audio and visual processing skills. These skills help an individual in
situations that require the ability to solve problems and make good decisions.
• Assessment refers to a process of assessing or evaluating or judging a person or an outcome.
Therefore, talent assessment refers to the assessment of the skills possessed by an individual
or an employee in an organisation.
• For talent assessment, an organisation may devise its own assessment tools or use common
assessment tools known and used by all organisations.
 2. Talent Assessment Tools

• Talent assessment tools assess employees on the basis of the following parameters:

Employee attitude

‰Aptitude

‰Cognitive ability
 3. Talent Assessment Tools

• The various tools used by an organisation to assess talent are:

Resumes and applications

Reference checks

Educational and employment verification

‰Skills and technical assessments

Realistic job preview/tryout

 4. Talent Assessment Tools

• ‰Resumes and applications: The resume or Curriculum Vitae (CV) is the first link between
an employer and a prospective employee. Based on the details in the resume, the HR
department of the organisation can decide whether an individual has the required skills or
qualifications for the job. On the basis of the resume, HR can shortlist the candidates for the
next round of the selection process.
• ‰‰Reference checks: A reference check is a means employed by HR to obtain information
about a particular candidate by talking to the professional and personal contacts of the
individual.
 5. Talent Assessment Tools

• ‰Educational and employment verification: It means that the HR cross-checks and makes
sure whether the information provided by candidates about their educational qualifications and
work experience is correct or not.
• ‰‰Skills and technical assessments: It refers to any mode of assessment such as oral
interview or written tests or on-site review that is used to assess the level of a skill or technical
competence of an individual.
• ‰‰Realistic job preview/tryout: Here, the candidates are usually made to work in the actual
work environment in order to assess their behaviour and performance.
 1. Concept of Performance
Management

• ‰Performance is defined as the actual contribution of an individual or a team towards the

accomplishment of the strategic goals of an organisation.
• The performance of an employee can be divided into the following three phases:
– ‰‰Being: Relates to the competencies of the employee
– ‰‰Doing: Focuses on the activities of the employee at various levels
– ‰‰Relating: Emphasises the nature of relationships with members of the role hierarchy
—vertical, horizontal or lateral
 2. Concept of Performance
Management

• Performance management is a process, which aims to ensure that the employees are
constructively contributing towards the organisational goals.
• The process involves defining the employee goals, developing the capabilities to achieve those
goals, evaluating the performance of the employee, and rewarding the employee for the efforts
made to achieve those goals.
• It is an on-going and continuous process in organisations and involves goal setting followed
by constant performance monitoring.
• Performance management ensures that employee performance is aligned with the strategy of
the organisation so as to create win-win outcomes for both the organisation and the employee.
 3. Concept of Performance
Management

• The process of performance management is carried out in different stages. These stages
include:

Performance planning

Performance execution

Performance assessment

Performance review

Performance renewal
 4. Concept of Performance
Management

• Performance management is an on-going system of performance planning and monitoring,

feedback and coaching to ensure better performance. However, performance appraisal is a
system of evaluating employee performance once or twice a year and does not involve on-
going performance monitoring, mentoring and feedback.
• Performance appraisal is an important component among various other components of
performance management. Thus, performance management is much more than annual or
biannual performance measurement of the employee.
• It is a more comprehensive and holistic function aimed at continuous performance and
performance improvement.
 5. Concept of Performance
Management

• The drawbacks of performance appraisals, which led to the emergence of performance

management are:
– Performance appraisal systems were based on pre-established performance criteria on the
basis of which employees were evaluated on their performance. Traditional performance
appraisals were not able to differentiate between different levels and types of skills
required at various levels within the organisation.
– Traditional appraisals heavily relied on employee rating systems. Therefore, inaccurate
ratings were a common problem in rating employee performance.
– Many times, managers were not even aware of the exact parameters on the basis of which
they should ideally appraise the performance of their subordinates.
 6. Concept of Performance
Management

• The several features that make performance management more effective than performance
appraisal are:

Aligned to strategy

‰Win-win outcomes

Trustworthy and reliable

Fair and acceptable

‰Transparency and openness

 7. Concept of Performance
Management

• Performance management is effective within an organisation if the following conditions are

fulfilled:
– ‰‰Performance management is used holistically as a system.

– ‰‰The relevant subsystems, such as training and performance appraisal, are in place and
accepted by all.
– ‰‰The philosophy of the organisation as well as the working environment is positive
and encourages the employees to do their best.
– ‰‰The managers performs efficiently and is equipped with leadership skills to inspire
others
– ‰‰The managers are aware of the strengths and weaknesses of their subordinates and
know how to get the best out of them.
 8. Concept of Performance
Management

Significance of Performance Management

• ‰Leads to high levels of motivation. Regular performance feedback keeps the employees
motivated to always give their best.
• ‰‰Clarifies the goals of the organisation, teams and individual employees. The employees
are able to understand how best they can contribute to the strategic goals of the organisation.
• ‰‰Contributes to improving the performance of the employee through continuous monitoring
and mentoring rather than an assessment at the end of a particular time period.
• ‰‰Provides inputs to managers about the training and developmental needs of their
subordinates.
 9. Concept of Performance
Management

Significance of Performance Management

• ‰Creates higher visibility and acceptance of performance expectations from the employees.
Higher visibility leads to enhanced performance from the employees.
• ‰‰Provides a tangible basis on which employee compensation and reward decisions can be
made. This helps to create transparent reward management systems leading to higher
employee satisfaction.
• Helps employees know their own development needs on an on-going basis, which in turn
helps them choose specific programmes for skill development.
• ‰‰Differentiates among the varying levels of performance in the organisation and hence
determine poor, average, good and exceptional levels of performance among the employees.
 10. Concept of Performance
Management

‰Setting up a Transparent Performance Management System

• Organisations need to focus on transparency while designing their performance management
systems. The organisation as a whole, including teams and individual employees, are
influenced by the performance improvement decisions arising from the performance
management process.
• It should be ensured that the work of performance management is entrusted to a capable
individual. The employees must also be given guidance in this regard.
• The performance of the employees needs to be monitored and reviewed objectively and fairly
against the pre-defined standards at known intervals.
 11. Concept of Performance
Management

‰Setting up a Transparent Performance Management System

• Some important guidelines that can be followed to ensure a transparent performance
management system are:
– Ensure employee participation during performance planning

– Monitor employee performance at a regular basis

– Ensure employee development through appropriate activities

– Evaluate individual performance

– Offer appropriate reward for deserving employees
 1. Concept of Performance
Appraisal

• The term ‘performance appraisal’ refers to the process of evaluating the current or past
performance of an employee with respect to the performance standards that have been set for
him/her.
• Performance appraisal is a systematic evaluation of employee’s performance that helps the
manager in understanding the abilities of individuals and opportunities for developing the
employee.
• In performance appraisal, the managers make subjective judgments against predetermined
performance standards for an employee’s performance and behaviour.
• A performance appraisal is followed by a feedback that includes the steps or action that the
employee needs to take in order to improve his/her performance.
 2. Concept of Performance
Appraisal

Objectives of Performance Appraisal

• Performance appraisals are commonly conducted annually, half yearly or sometimes even
quarterly. These often depend on the type and size of the organisation. However, most
organisations have now come to realise that performance appraisal should be an on-going
process.
• Performance appraisals may be conducted at regular intervals or as a continuous process;
however, in both cases, it intends to achieve the following objectives:
– ‰Improve performance of employee
– Pay decisions

– Placement decisions
– Employee development needs
 3. Concept of Performance
Appraisal

Objectives of Performance Appraisal

– Career planning and development

– Deficiencies in selection process

– Errors in job analysis

– Job design error

– Avoidance of discrimination in internal mobility decisions

– External factors
 4. Concept of Performance
Appraisal

Process of Performance Appraisal

Establish Performance Standards

Communicate Performance
Expectations

Measure Actual
Performance

Compare Actual Performance

with the Standards

Discuss Appraisal with

Employee
 5. Concept of Performance
Appraisal

Methods of Performance Appraisal

• The methods of performance appraisal are classified into traditional methods and modern
methods.
• The traditional methods of performance appraisal have a narrow scope and focus primarily on
the past performance of employees on predetermined criteria.
• On the other hand, the modern methods of performance appraisal are more comprehensive and
focus on the employees’ past performance as well as their future capabilities.
 6. Concept of Performance
Appraisal

Methods of Performance Appraisal

• The various traditional and modern methods of performance appraisal are:

Traditional Methods of Performance Modern Methods of Performance

Appraisal Appraisal

• Straight Ranking • Assessment Centre

• Man-to-Man Comparison • Human Asset Accounting
• Graphic Rating Scale • Management by Objectives
• Forced Distribution • Behaviourally Anchored Rating Scale
• Checklists • 360-Degree Performance Appraisal
• Free-Form Essays
• Critical Incidents
• Field Review
 7. Concept of Performance
Appraisal

Benefits of Performance Appraisal

• Benefits to employee are:
– ‰‰Employees get to know about their own performance.
– ‰‰They are recognised for their contributions.

– ‰‰They take responsibility of their own performance.

– They can benefit from the opportunities to grow in their job.

• Benefits to supervisor are:

– ‰‰It improves their managerial skills.

– ‰It helps them to strengthen their relation with the employee.

– ‰‰It helps in improving the productivity of individual employees.
 8. Concept of Performance
Appraisal

Benefits of Performance Appraisal

– ‰‰Supervisors get an opportunity to demonstrate their fair attitude towards all
employees.
• Benefits to organisation are:
– ‰‰Through performance appraisal and standards setting, the organisation is able to
communicate the organisational goals to all the employees.
– ‰‰Performance appraisal helps in deciding pay hikes, promotions, transfers and training
and development requirements
– ‰‰Performance appraisal helps in increasing the productivity of the organisation.
 9. Concept of Performance
Appraisal

Problems of Performance Appraisal

Halo Effect

Horn Error

Leniency and Strictness Biases

Recency Effect

Central Tendency
 1. Concept of Potential Appraisal

Purpose of Potential Appraisal

• Potential appraisal is a process of identification of the latent capabilities and talent of a person.
It is a method for appraising the suitability of an employee for future positions and
assignments.
• Potential appraisals are generally conducted for following reasons:
– ‰‰To evaluate the employees in terms of the highest level of performance they would be
able to deliver without stretching and exceeding their limitations.
– ‰‰To help the HR department in employee selection and training.

– Employee development is a very important HR function that ensures the uninterrupted

growth of both the employee as well as the organisation.
– ‰‰To identify critical areas of employee performance that require improvement.
 2. Concept of Potential Appraisal

Techniques of Potential Appraisal

Techniques of Potential
Appraisal

Assessment
360-degree Appraisals
Centres
 3. Concept of Potential Appraisal

Techniques of Potential Appraisal

• Assessment centres: It include simulations, situational exercises and other management
games that provide employees opportunities to demonstrate work-related behaviour in a
group. The performance of the employee is observed and on the basis of that, his/her potential
is evaluated. This further influences the decision of identifying the employee for future roles
and assignments.
• 360-degree feedback: It is a method of systematic collection and feedback about employee
performance data obtained from a number of appraisers. In 360°-degree feedback, appraisal
data is collected from the employee’s manager, his/her peers and other group members,
relevant colleagues elsewhere in the organisation who use the employee’s services, or
otherwise interact with him/her on various issues.
 Let’s Sum Up

• ‰Talent refers to the set of skills that an individual possesses. Such skills aid in learning and
overall success of the individual professionally as well as personally.
• ‰‰Talent assessment tools are used to measure the performance, skills and competence of
employees.
• Performance is defined as the actual contribution of an individual or a team towards the
accomplishment of the strategic goals of an organisation.
• Process of performance management is carried out in different stages namely: performance
planning, performance execution, performance assessment, performance review and
performance renewal.
• ‰‰Performance management is a process that aims to ensure that the employees are
constructively contributing towards organisational goals.
 Chapter 8: Employee
Development and Talent
Management Strategies
 Chapter Index
S. No Reference No Particulars Slide
From-To

1 Learning Objectives 186

2 Topic 1 Employee Motivation Strategies 187-194

3 Topic 2 Employee Retention Strategies 195-196

4 Topic 3 Employee Engagement Strategies 197-198

5 Topic 4 Work-Life Balance and Talent Manag 199-200

ement

6 Topic 5 Talent Management Audit 201-202

7 Topic 6 Talent Scorecard 203-204

8 Let’s Sum Up 205

• Discuss various strategies used by organisations to motivate employees
• Explain the concept of employee retention
• Describe the concept of employee engagement
• Discuss work life balance and talent management
• Explain the concept of talent management audit
• Discuss the use and application of talent scorecards
 1. Employee Motivation Strategies

• Motivation is an incentive that impels someone to do something. It is a newly risen sense or

spirit at whose direction one chooses a path for oneself.
• It is an emotion that explains a person what is to be done or helps in what the person is trying
to do.
• The level of motivation decides how hard a person is trying or needs to try to achieve his/her
object.
 2. Employee Motivation Strategies

• Motivation is also about the persistence of an individual towards a goal that determines for
how long the individual should keep trying until the goal is achieved.
• Motivating others is about getting them to work in the way you want for expected results.
• People are motivated when they believe that the work they are doing is likely to lead them to
goal achievement and which will result in valued rewards.
 3. Employee Motivation Strategies

• There are two types of motivation, namely extrinsic and intrinsic motivation. These are:
– Extrinsic motivation: It refers to an individual’s inspiration for taking some action.
When an employee is made to act accordingly in return for some reward, it is called
extrinsic motivation.
– Intrinsic motivation: It is self-generated, i.e., it is not brought about by external
incentives but internal factors such as challenges, growth, advancement, autonomy,
responsibilities, etc. These factors increase the self-worth of the employee in the
organisation and motivate him/her intrinsically.
 4. Employee Motivation Strategies

• There are many theories of motivation that try to explain this phenomenon. The major ones
are:

Theories of
Motivation

Maslow’s
Reinforce Goal-
VIE Hierarchy ERG McClelland’s Equity
ment Setting
Theory of Needs Theory Theory Theory
Theory Theory
Theory
 5. Employee Motivation Strategies

• ‰VIE theory: This theory was given by Victor Vroom, professor at the Yale School of
Management. According to him, motivation is the product of Valence (V), Instrumentality (I)
and Expectancy (E).
• Expectancy is defined as the degree to which an employee believes that his/her effort would
lead to the desired level of performance.
• Instrumentality is defined as the degree to which the employee believes that the performance
would lead to rewards for him/her.
• Valence is defined as the degree to which these rewards are valued by him/her.
• For motivation to be high, all these three dimensions have to be high as well. If the strength of
any of these factors is zero, the individual will be incompletely motivated.
 6. Employee Motivation Strategies

• ‰Reinforcement theory: This theory was developed by B. F. Skinner, a psychologist,

behaviourist, author, inventor and social philosopher. It explains that motivation is dependent
on rewards. Any behaviour or performance displayed by an individual that results in positive
outcomes for him/her is likely to be repeated.
• Maslow’s hierarchy of needs theory: This theory was given by Abraham Maslow, an
American psychologist. According to him, the needs of an individual are classified into five
categories: physiological needs, safety needs, social needs, esteem needs and self-
actualisation. When one need is fulfilled, the individual works towards the fulfilment of the
next need.
 7. Employee Motivation Strategies

• ‰Existence, Relatedness and Growth (ERG) theory: C. P. Alderfer suggests that there are
three major needs always operative in a person. First is existence needs, relating to working
conditions, and pay and fringe benefits. Second is relatedness needs, relating to the social
needs of the individual where he/she seeks acceptance and appreciation from others. Third is
growth needs, relating to finding opportunities for personal development and advancement in
life.
• ‰‰McClelland’s theory: McClelland identified that there are three most important needs of
ambitious individuals, which are—need for achievement, which is related to competitive
success of the individual; need for affiliation, which is the need for warm and friendly
relationships; and need for power, which is about controlling others’ behaviour and
influencing them.
 8. Employee Motivation Strategies

• Goal-setting theory: This theory is proposed by Dr. Edwin A. Locke, an American

psychologist. According to him, motivation is related to the setting of goals. The theory
suggests that individuals should set specific and meaningful goals for themselves. Further, the
goals that are set should be challenging but achievable.
• Equity theory: This theory is given by J. Stacy Adams, a workplace and behavioural
psychologist. He states that people constantly keep comparing how they are being treated with
others. Equity relates to a feeling of being fairly treated compared to others. People are more
motivated when they perceive that they are being equitably treated and may be demotivated in
the absence of an equitable treatment.
 1. Employee Retention Strategies

• ‰‰When an organisation pays more than the industry average to its employees, they are less
likely to quit the organisation and move to a new one.
• ‰‰Offering career planning and succession planning options to employees leads to high
employee retention. If employees are given suitable opportunities for growth and advancement
in the current organisation, they are less likely to look for growth in other organisations.
• ‰‰The types of employee benefits offered to employees ensure employee retention. Benefits
such as pension funds; financial assistance; various allowances; different forms of leave such
as maternity, sabbatical, medical; etc., are useful for employee retention.
 2. Employee Retention Strategies

• Job security is an important strategy for employee retention. If employees are offered tenure-
based jobs, it can help in retaining them.
• ‰‰The organisation should spend time and effort in helping the employees to improve their
work–life balance by building policies that offer flexibility to the employees to cater to their
personal and professional needs simultaneously. Flexible work options are an important tool
for realising work–life balance and, hence, aid in employee retention.
• ‰‰Creating a more stress-free environment for employees is a useful strategy for employee
retention.
 1. Employee Engagement Strategies

• Effective work design: It is most likely to influence an employee’s engagement level in the
organisation. Organisations need to ensure that jobs are designed in a way where employees
get to use a mix of various skills. Variety builds a sense of meaningfulness in the employee’s
mind about his/her work. Autonomy while designing jobs needs to be considered as well. The
higher the autonomy an employee has in performing his/her job, the more engaged he/ she will
be.
• Employee-friendly work culture: Creating a work culture that is positive and encouraging
keeps employees engaged. This results in reduced stress levels among employees, and they
end up providing their best performance to the organisation.
 2. Employee Engagement Strategies

• ‰Shared leadership: It helps to create an engaged workforce. This is because the employees
in such a setup are trained to be self-driven, rather than be driven by instructions. This leads to
higher levels of accountability and responsibility, thus leading to high employee engagement.
• ‰‰Learning culture: Growth and advancement opportunities are useful in creating a
learning culture. This results in employees being more dynamic and less fixated on the ideas
and patterns of working. It creates a proactive environment within the organisation.
Employees seek out opportunities on their own and are much more dynamic in their approach,
which leads to them being highly engaged at work.
 1. Work-Life Balance and Talent
Management

• Work-life balance refers to the equilibrium between the workplace priorities and personal
priorities (which include family and relationships, personal development, hobbies, etc.) of
employees.
• Work-life balance policies are very useful for managing talent. A healthy work-life balance
heightens the morale of the employees leading to a positive environment at the workplace.
• Work-life balance initiatives are proving to be very effective in reducing employee turnover
and creating high organisational commitment among employees.
 2. Work-Life Balance and Talent
Management

• Some of the work-life practices are:

– Child care leave/crèches: Many employees have young children who need to be taken
care of. In this case, organisations may offer paid childcare leave ranging between six
months and two years. Alternatively, an organisation may choose to run on-site crèches
with trained staff and facilities to take care of the children of its employees. This is very
useful for working parents to maintain their work-life balance.
– Time off: Many employees may have dependent elders who may be ailing or old. So,
companies offer time off to their employees to take care of their dependents.
– Flexible work options: This offers the freedom to the employees to choose their hours of
work, place of work and even timings of work.
 1. Talent Management Audit

• A talent audit is a useful technique to get better information about the existing workforce,
leading to better business decision making. Organisations conduct many audits on a regular
basis. A talent audit provides useful information about the skill gaps and training needs in an
organisation.
• The role of a talent audit in an organisation is explained as follows:
– ‰‰Talent audit is a tool that helps organisations in identifying misalignments that may
arise between the strategy and the abilities of the employees.
– ‰‰Talent audits review the stock of the talent available. They also ensure that the
desired flow of talent is maintained in the organisation with the help of supply and
demand forecasts.
– It helps in identifying the training and development needs of the employees.
 2. Talent Management Audit

• The following steps can be followed in conducting a talent management audit:

– Assessment: This step includes making a comprehensive assessment of the existing
talent management initiatives and procedures vis-à-vis the business strategy.
– Identification of gaps: This step identifies those areas of talent management that are
impairing the process of effective talent management. Each function of talent
management needs to be carefully scrutinised for gap analysis.
– Prioritisation of corrective action: Once the gaps and their causes in talent management
are identified, the last step is to plan and implement corrective action.
 1. Talent Scorecard

• A talent scorecard aligns the talent activities and talent strategies of an organisation with the
overall business objectives of the organisation.
• The talent scorecard should measure the following issues:
– ‰‰The impact of all talent management activities of an organisation on its performance.
– ‰‰Consistency and smoothness of flow of talent within the organisation.

– This is to ascertain whether the organisation has the right talent working in appropriate
roles at the right time.
– ‰‰The skills and abilities of the talent, and the measures the organisation is taking to fill
the gaps as and where they exist.
 2. Talent Scorecard

• The basic contents of employee scorecard are:

Mission

Basic responsibilities and accountabilities

The competencies required

Building the organisational fit

 Let’s Sum Up

• Motivation can be defined as the persistence of an individual towards a goal that determines
how long he/she should keep trying to achieve it. There are two types of motivation, namely
extrinsic and intrinsic motivation.
• Employee turnover or attrition is the most critical problem faced by organisations today. It is
the rate at which people leave an organisation.
• Work-life balance policies are very useful for managing talent. A healthy work-life balance
heightens the morale of the employees leading to a positive environment at the workplace.
• ‰‰Talent audit is a tool that helps organisations in identifying misalignments that may arise
between the strategies and abilities of the employees.
• ‰‰Talent scorecard is a framework that measures and manages the performance of the
employees on the basis of the overall strategy of the organisation.
Chapter 9: Latest Trends in
Employee Development and
Talent Management
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 210

2 Topic 1 Employee Leasing 211-212

3 Topic 2 Moonlighting 213-214

4 Topic 3 Dual Career Programmes 215-216

5 Topic 4 Flexi-Time and Flexi-Work 217-219

6 Topic 5 Participation of Employees in Manag 220-221

ement

7 Topic 6 Collective Bargaining 222-225

8 Topic 7 Collaborative Management 226-228

9 Let’s Sum Up 229

• Describe employee leasing and moonlighting
• Discuss dual career programmes
• Explain various flexible work options
• Describe the participation of employees in management
• Discuss collective bargaining and collaborative management
 1. Employee Leasing

• A contractual arrangement between an employee and a leasing company that acts as the
official employer is known as employee leasing.
• A leasing company is known as a Professional Employer Organisation (PEO) and handles the
payroll, taxes and benefits accrued by employees.
• Employees who are leased through an employee leasing organisation report to the client
organisation about their daily work. However, the leasing organisation acts as their parent
employer.
• The leasing organisation shares the responsibility with the client organisation and charges fees
for its services.
 2. Employee Leasing

• Employee leasing organisations offer perks and benefits like life and general insurance at
subsidised rates.

• ‰‰It manages reward systems of the client organisation, leading to cost savings for the
employee leasing firm.

• ‰‰The development of the client organisation’s payroll and necessary tax and other legal
compliances also rest with the leasing company. This is beneficial in taking off a huge burden
off the organisation.

• ‰Organisations face the risk of losing their valued assets to an outside agency by leasing them
out.

• ‰‰Organisations are at the risk of disclosing their confidential information about their
employees, benefits, compensation and training offered to them.
 1. Moonlighting

• The term ‘moonlighting’ is referred to as a second job taken up by an employee to supplement

his/her main source of income.
• In the past, moonlighting was considered an option for the people who did not have proper
jobs. However in the present scenario, people with professional skills and qualifications also
opt for moonlighting to earn extra money.
• It also leads to a sense of freedom and additional source of income for people.
• It is beneficial as instead of changing the job at once, the individual can acquire and develop
his/ her skills needed to perform a different job.
 2. Moonlighting

• The advantages of moonlighting are as follows:

– ‰‰Money is the major reason for which people often opt for moonlighting. As the cost
of living is increasing with time, the extra income may come in handy to meet the extra
expenditures of the daily life.
– ‰‰A second job may also be opted for a sense of security.
• The disadvantages of moonlighting are as follows:
– The employee may experience a conflict of interest between the two organisations he/she
is working with, leading to ethical dilemmas.
– ‰‰It may lead to a drop in the performance of the employee due to divided attention
between two different jobs.
 1. Dual Career Programmes

• According to Hester and Dickerson, dual-career couples are two people in a committed
relationship each with a career.
• Dual-career couples should be focussed, hardworking and flexible so that they would be able
to adjust to the needs of each other’s profession.
• In order to perform effectively, partners in dual career need to balance the demands of work
and family.
• The employers also need to be more sensitive towards the requirements of such couples. For
this, employers can make dual career programmes.
 2. Dual Career Programmes

Child Care
Facilities
Employee
Elder Care
Assistance
Facilities
Programmes

Dual Career
Programmes
Flexible Work
Personal Time
Options

Parental Part-Time
Leave Jobs
 1. Flexi-Time and Flexi-Work

• Flexi-time, also known as flex-time or flex-scheduling, is a working arrangement where an

organisation offers its employees the flexibility in the workplace by giving them the choice to
start and finish work at the times that suit them the most, rather than the standard eight hours
of work from 9 to 5.
• Employees can choose to work as per their convenience depending on their personal interests
and family responsibilities.
• The term ‘flexi-work’ or ‘flexible working’ refers to the number of hours employees work and
the location from where the work is performed.
2. Flexi-Time and Flexi-Work

Flexi-time
Compresse
Term-Time
d Working
Working
Week

Staggered Flexible
Telecommu
Work
Hours ting
Options

Sabbatical Job Sharing

Part-Time
Work
 3. Flexi-Time and Flexi-Work

Advantages of Flexible Working

• Increase in the working hours of organisations as a result of flexihours. This leads
organisations to be available for more number of hours to address business issues.
• ‰‰Higher efficiency among employees as they are not preoccupied with the concerns of their
personal life while at work.
• ‰‰Cost-effective for organisations as flexible work options save expenditure related to
infrastructure especially when a large number of employees opt for telecommuting.
• Higher job satisfaction among employees.
 1. Participation of Employees in
Management

• Employees’ participation in management is very beneficial to the organisation and the

employees alike.
• However, the degree to which employees need to be involved in management decisions has
been a debatable subject.
• Some have supported equal participation of employees in management, while others have
suggested that the participation needs to be limited to the areas of employee concerns only.
• There are various ways through which employees can be made to participate in management,
which are:
– Participation at the board level
 2. Participation of Employees in
Management

– Employee stock options

– Collective bargaining
– Suggestion schemes
– Participation through complete control
– ‰Job enrichment
– Quality circles
 1. Collective Bargaining

• Collective bargaining is a process through which employees and the employer negotiate with
each other to arrive at a mutually acceptable decision related to the working and management
of the organisation.
• The interests of the employees are presented by their representatives. The negotiations
generally relate to issues like working hours, working conditions, pay and allowances, benefits
offered, etc.
• The representatives of employees and management negotiate to reach an agreement acceptable
to both the parties by making proposals and counter proposals.
• Collective bargaining is useful for the participation of employees in management. However,
its benefits are not just limited to employees. It brings advantages to the organisation as well.
 2. Collective Bargaining

• Process of collective bargaining is as follows:

Identification of
the Problem

Collection of Data

Selection of
Negotiators

Building a Climate
of Negotiations

Bargaining Strategy
and Tactics

Formalising the
Agreement

Enforcing the
Agreement
 3. Collective Bargaining

Advantages of Collective Bargaining for Employees

• ‰It is a form of industrial democracy at its best. It gives voice to employees in various issues
that are important to them and where they can influence the decisions as well.
• ‰‰It helps develop a sense of respect among employees as they act as joint decision makers
and are not mere spectators of organisational decision making.
• ‰‰It gives a sense of control to employees on important issues such as working conditions,
working hours, pay, benefits, etc.
• ‰‰It gives collective strength to employees. They can bargain for much better agreements for
them. This would not be possible if employees individually bargained on issues.
 4. Collective Bargaining

Advantages of Collective Bargaining for Employers

• ‰‰‰It is an effective way of resolving issues collectively than redressing individual issues
and problems of employees.
• ‰‰It helps the management to build up better communication with employees. As a result,
employees share their problems with the management leading to their involvement in
management decision making.
• ‰‰It reduces the organisation’s problem of employee turnover. This is possible because when
employees’ opinions and suggestions are implemented while making changes in an
organisation, they are less likely to quit it.
 1. Collaborative Management

• Collaborative management refers to the management practices followed to develop unity and
promote teamwork among the managers and supervisors within an organisation.
• The basic objective of collaborative management is to build collective strength among all
members of on organisation.
• It leads to a more cooperative work environment resulting in better business performance and
increased employee morale.
• Moreover, it leads to a better organisational image in the eyes of customers and also helps
build customer loyalty.
 2. Collaborative Management

Characteristics of Collaborative Management

• ‰It involves active participation of all the team members in the entire process of management
right from planning through organising and implementing up to controlling. This is done
through enhanced communication and sharing of information among team members.
• ‰‰It believes management to be a collective function of all employees and not just restricted
to managers.
• ‰‰Organisations practising collaborative management have open and transparent culture
where all the members are aware of their strengths and weaknesses.
 3. Collaborative Management

Advantages of Collaborative Management

• ‰It helps employees relate better with each other as well as with the organisation, leading to a
better work environment.
• ‰It leads to a collaborative and collective approach to goal achievement.
• ‰‰It is characterised by open and transparent culture which leads to high levels of trust
among the members of an organisation.
• ‰‰It builds tolerance and acceptability towards the ideas and viewpoints of others, thus
working to the satisfaction of all and not just catering to personal interests.
• ‰‰It results in achieving sustainable solutions to organisational issues as they are arrived at
by joint decision making.
 Let’s Sum Up

• A contractual arrangement between an employee and a leasing company that acts as the
official employer is known as employee leasing.
• ‰‰The term ‘moonlighting’ is referred to as a second job taken up by an employee to
supplement his/her main source of income.
• ‰‰Dual-career couples are two people in a committed relationship each with a career.
• ‰‰Flexi-time, also known as flex-time or flex-scheduling, is a working arrangement where an
organisation offers its employees flexibility in the workplace by giving them the choice to
start and finish work at times that suit them the most, rather than the standard eight hours of
work from 9 to 5.
 Chapter 10: Employee
Development Climate and
Practices in India
 Chapter Index

S. No Reference No Particulars Slide

From-To

1 Learning Objectives 234

2 Topic 1 Concept of Employee Development 235-239

Climate

3 Topic 2 HRD Climate in Indian 240-241

Organisations

4 Topic 3 HRD Practices in India 242

5 Let’s Sum Up 243

• Explain the concept of employee development climate
• Discuss the elements of employee development climate
• Explain various factors contributing to employee development climate
• Discuss HRD climate in Indian organisations
• Describe HRD practices in India
 1. Concept of Employee
Development Climate

• The Employee Development Climate commonly referred to as the HRD climate of the
organisation.
• The word climate is defined as the conditions present in the organisation that influence the
policies and practices of the organisation and also impacts the life of the employees.
• It refers to the quality of the internal environment that controls the level of dedication of the
employee for the organisation and to the efficiency which helps translate the objectives into
results.
• The employee development climate also refers to the perceptions that exist in the
organisations with respect to employee development policies, procedures and practices that
are implemented for the employees.
 2. Concept of Employee
Development Climate

• ‰‰The HRD climate serves as an input for the HR managers of the organisation to anticipate
the opportunities that exist for employee development and accordingly plan for ways to
provide resources for the purpose.
• ‰‰The prevalent HRD climate in the external business environment helps the organisation to
identify any weaknesses and threats that exist in the human resource systems of the
organisation and develop strategies to overcome weaknesses and combat the threats.
• ‰‰HRD climate is the basic element that helps to align the organisations strengths and
opportunities according to the changes in the environment to create reputed organisations.
 3. Concept of Employee
Development Climate

• HRD climate also takes into account the HR policies and practices prevalent in other
organisations. It is necessary to take HRD climate into consideration when developing policies
for the organisation as they directly or indirectly affect it and the employees as well. The
major aims of HRD are:

Equity

Employability

Adaptability
 4. Concept of Employee
Development Climate

Elements of Employee Development Climate

Organisational structure

Organisational culture

The HR processes
 5. Concept of Employee
Development Climate

Factors Contributing to Employee Development Climate

System-wide Support

Supportive Environment

Top Management Philosophy

Factors Contributing to Employee

HR Policies
Development Climate

HRD Systems

Learning Environment

Commitment of the Line Managers and Support

from the Staff

Support form the Staff

Regular Feedback to Employees

Fairness and Equity

 1. HRD Climate in Indian
Organisations

• Organisations with proper HRD climate treat their employees with utmost respect. They
consider their employees as the extremely valuable resources.
• Rao and Abraham (1986) conducted the first survey of the HRD climate in India by using the
XLRI questionnaire. They discovered that the general HRD climate in Indian organisations
was at an average level of 54 per cent.
• The major factor contributing to the average level of HRD climate was the employees own
indifference towards their growth and development.
• In a study on HRD, it was found that the HRD climate prevailing in the organisation was a
determinant that influenced the impact of HRD practices on organisational profitability.
 2. HRD Climate in Indian
Organisations

• Reliance Industries: It has an HRD climate which is development-based. The organisation

promotes innovation and learning. The HRD climate in Reliance Industries is characterised by
openness and employee involvement in decision making.
• Raymond Group: It provides a positive and engaging HRD climate for its employees. The
HRD climate at Raymond is development-oriented. Learning and development is encouraged
in the organisation by linking it with reward systems.
• Tata Motors: HRD climate at Tata Motors is based on the belief that the organisation should
take care of its employees and they will take care of the rest. Tata Motors maintains a HRD
climate where the employees feel comfortable and engaged.
 HRD Practices in India

Employee counselling

Performance feedback

‰Performance linked reward system

‰Potential appraisal

Training and development

 Let’s Sum Up

• The HRD climate of an organisation is critical for ensuring the development, competency and
keeping the motivation levels of employees at a high level.
• ‰‰HRD climate is the basic element that helps align the organisations strengths and
opportunities according to the changes in the environment to create reputed organisations.
• ‰‰Organisational structure is the system of authority and responsibility within the
organisation. It defines the path that exists in the organisation for task accomplishment and
goal achievement.
• ‰‰The HR processes in an organisation should be designed to manage the employees from
the date of their joining to the date of resignation.