1. Talent Management
Module 06

2. Module 6 Objectives
Understand the origin of talent management and how it fits within human resources planning (HRP), human capital management, Strategic HRM, and corporate strategy
Discuss the evidence for the importance of TM in general and, specifically, in terms of the talent management lifecycle
Discuss the common attributes of talented individuals
Discuss the steps in the development and use of an HRP program.
Explain the use of HRP in forecasting supply and demand of new employees
Explain the importance of job analysis and job descriptions to talent management programs
Identify and discuss the important HR metrics for the HRP program of a company.
Explain the difference between a long and short strategy for TM and why it is important
Explain the contribution of a TM program to corporate strategy as well as the importance of an adaptable workforce
Discuss the effects of corporate culture on the talent management program
Discuss how the use of computer applications in an HRIS support the components of talent management as well as their use in setting performance goals and evaluating job performance
Discuss how companies are using social networks to recruit talented individuals

3. Chapter 11
Talent Management

4. THE STRATEGIC IMPORTANCE OF HR PLANNING
To succeed under new competitive conditions, companies change vision, values, structure, strategy and corporate culture
Changes in HR policies and practices encourage and support behaviors needed for organizational change
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

5. TALENT MANAGEMENT (TM)
TM generally refers to the process of hiring, socializing, developing, and retaining employees, while at the same time attracting highly skilled individuals from the labor market.
TM requires an HRM plan that is a comprehensive program of using and developing the person’s knowledge, skills, and abilities. The outcome of a TM program nested within the HRM function is that individuals can become high performing employees who can contribute to the effectiveness and profitability of the company.
Strategic Importance of HR Planning: Right people for the right job at the right time based on goals & mission of the organization, particularly when it is necessary to modify future strategy, e. g., financial collapse of
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

6. IMPORTANCE OF TALENT MANAGEMENT
Results of two surveys
SHRM 2010: 449 HR professionals
Question: top HR challenges to face during the next decade
Results: Nearly half the respondents (47 percent) said that obtaining human capital and optimizing on human capital investments was the top challenge for the next 10 years.
CedarCrestone (2010)
Question: what HR computer-based application categories would have increased adoption and usage in the near future
Results: Three application categories will grow 90% or more
talent management
social media, and
workforce optimization to include workforce planning and analytics
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

7. TALENT MANAGEMENT ISSUES
Talent Management Lifecycle
Created by expanding into new markets, changing needs of employees, and the retirement of “baby boomers”
Acquiring and growing a talented human capital workforce that adapts to changes in the marketplace is key to the talent management lifecycle
Requires long-term talent management strategy and a short-term tactical strategy
Attributes for Talent : Five common ones
Ability to communicate with others using multiple media
Drive; motivation
Ability and willingness to listen to the ideas of others
Problem solving skills
Imagination
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

8. HRP LINK TO BUSINESS OBJECTIVES
Begins with the identification of the strategic goals/objectives of the company
Business strategic goals/objectives focus attention on:
Number of employees needed for growth or decline
Required competencies and behaviors of employees
Required levels of employee productivity
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

9. JOB ANALYSIS: ACCURACY CRITICAL FOR EFFECTIVE HRP
In order In order to make forecasts in HRP accurate, it is crucial that the (KSA) required in the forecasted jobs be known. Job Analysis does this!
Job Description: What the Job involves: duties, tasks, activities, responsibilities. Working contract
Job Specification: What it takes to do the job – Knowledge, Skills & Abilities (KSAs), Competencies (behaviours, attitudes)
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

10. TALENT MANAGEMENT PROCESS
HR Practices
- recruitment
- training
- performance
management
- labor relations
- HR planning
- job analysis
- job design
- selection
- development
- pay structure
- incentives
- benefits
Strategic
Choice
HR Needs
Firm
Performance
- skills
- behaviors
- culture
- productivity
- quality
- profitability HR
Capability
HR Actions
- behaviors
- results
- skills
- abilities
- knowledge
Feedback & Emergent Strategies
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

11. OVERVIEW:HRP AND STRATEGIC PLANNING Identify people-related
Analysis
Strategy
Formulation
Strategy
Implementation
Clarify performance expectations and future management methods:
values, guiding principles
business mission
objectives and priorities
resource allocations
Implement processes to
achieve desired results:
business goals
company strengths/weaknesses
external opportunities/threats
source of competitive advantage
Establish the context:
business goals
company strengths/weaknesses
external opportunities/threats
source of competitive advantage
Identify people-related
business issues
Define HR strategies,
objectives, and
action plans
Implement HR
processes, policies
and practices
Human Resource Planning Process
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

12. THREE PHASES IN HUMAN RESOURCE PLANNING
5-3
Setting HRP Objectives (1)
Determining Labor Demand
derived from product demand – based on historic records
Add employee turnover by job
Determining Labor Supply: Two sources
internal movements caused by transfers, promotions, turnover, retirements – data should be in HRIS
external labor market
Planning HR Programs (2)
Determining Gap between demand and supply
Changing/creating HR programs to fill gap
Developing HR programs & evaluating (3)
implementation of planned HRM programs from phase 2
determine if they have actually closed the gap between supply and demand
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

13. HRP: FORECASTING LABOR DEMAND STEPS
Projected Sales
Business
Plan
Forecast
Overall
Needs
1.0
Determine
Job Needs
2.0
Employee
Turnover
Numbers & KSAs
Turnover Rates
Numbers &
KSAs
Job Openings
HR Forecast
storage
Recruiting
Program
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

14. DETAILED HUMAN RESOURCES PLANNING
Resulting in
Employment Forecasting
Leads to
Supply Analysis
Balance Supply and Demand
CONSIDERATIONS
INTERNAL
RECRUITMENT
Product/Service
Economics
Technology
Financial Resources
Absenteeism/
Turnover
Growth
Management Philosophy
Staffing Tables
Markov Analysis
Skills Inventories
Management Inventories
Replacement Charts
Succession Planning
Full-Time
Part-Time
Recalls
Manager follow a systematic process, or model, when undertaking HRP. The three key elements of the process are outlined below and developed in more detail on subsequent slides. Key elements of HRP include:
Employment Forecasting. HRP assesses the current and future needs of the organization for employment and helps to prepare to meet those needs at the direction of management.
Supply Analysis. Supply analysis seeks to identify whether there are sufficient number and types of employees available to staff anticipated openings. Supply analysis activities encompass both internal and external sources of recruitment.
Balancing Supply and Demand Considerations. HRP also must provide management with plans for managing supply and demand over time. This includes provisions for expanding and contracting the size of the organization’s work force.
REDUCTIONS
Terminations
Layoffs
Demotions
Retirement
EXTERNAL
TECHNIQUES
Demographic Changes
Education of Workforce
Labor Mobility
Governmental Policies
Unemployment Rate
Trend Analysis
Managerial Estimate
Delphi Technique
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

15. TALENT MANAGEMENT AND CORPORATE STRATEGY
The fundamental requirement to connect corporate strategy to HRP and TM is based on the capability to be able to adapt to changes in the global economy
HR departments need to take on a value creation role to support corporate and business unit strategy
HR function has to become a high-performance system designed to maximize the quality of human capital in the organization
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

16. CHANGE AND CREATING AN ADAPTABLE WORKFORCE
Change is a constant in business companies need a workforce that can adapt to changes
IBM (2008) study: need three key capabilities
First, organizations must be capable of predicting their future skill requirements
Second, they need to effectively identify and locate experts
Third, they must be able to collaborate across their organizations
9/18/2018
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

17. TALENT MANAGEMENT AND CORPORATE CULTURE
Talented individuals choose company based on image and culture
Corporate culture
Are strong enduring beliefs and tenets that the company holds dear.
Differentiate the company from other companies.
Seen in symbols, company history & heroes, behavioral norms
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

18. TM AND INFORMATION SYSTEMS
Measuring the ROI for human capital in TM has to be reflected in the HR balanced scorecard
Numeric results of the components of the TM program are: (1) number of talented individuals hired, (2) job performance of these individuals, and (3) retention of these individuals
These numbers need to be entered into the HRIS
The talent management functional areas offered by application software products include skills assessment, succession planning, recruiting management, career development, and employee lifecycle
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

19. TM, RECRUITING, PERFORMANCE EVALUATION, ANALYTICS & HRIS
Social networking and company Web sites have become popular with recruiters and applicants
There is business alignment and performance management software that assists in managing the employees’ lifecycle in an organization
Using workforce analytics to manage talent involves asking questions of the employee data warehouse
Queries about new employees in terms of job success based on with current employees
Analytics for existing employees can be used to understand the personal characteristics of successful employees
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.

20. MEASURING THE SUCCESS OF TALENT MANAGEMENT
Measuring performance results is critical for all organizational programs
This results-oriented perspective is also expected in the HR department for TM
compare the costs of proposed programs to current TM program in terms of the financial benefits produced – Cost Benefit Analysis
overall result will a cost-benefit ratio, and can be reflected on the HR balanced scorecard
Michael J. Kavanagh, Mohan Thite, and Richard D. Johnson - Human Resource Information Systems: Basics, Applications, and Future Directions, 2e © 2012 SAGE Publications, Inc.