A PROJECT REPORT

ON
TALENT MANAGEMENT
IN
LARSEN & TOUBRO
A SUMMER TRAINING REPORT IS BEING SUBMITTED TO MDU,
ROHTAK
BACHLOR OF BUSINESSS ADMINISTRATION (BBA) GENERAL

(Tigaon Road, Near Sai Dham, Sector 87 Faridabad, Haryana-121002,

India)
B.B.A
BATCH 2014-2017
SUBMITTED TO:

SUBMITTED BY:

Controller of examination

Piyush Gupta

SUBMISSION DATE:

ACKNOWLEDGEMNT
I wish to express my gratitude to Mrs. Nidhi Mittal, HR department for providing me an
opportunity to do my internship and project work in LARSEN & TOUBRO.
I sincerely thank Mr. Babar Khan, Mr. Chetan Dashora & Mrs. Nidhi Mittal and all HR team
for their guidance and encouragement in carrying out this project work. I also wish to express
my gratitude to the officials and other staff members of Larsen & Toubro who rendered their
help during the period of my project work.
I also thank the Director of Institute of Management & Technology and R&D Dr. Parul
khanna and training & placement incharge Dr. R.N. Singh for providing me the opportunity
on this project.

PREFACE

As per the curriculum of 5th semester of B.B.A general, we had to undergone through a
project study. I approached Larsen & Toubro Private Limited for this purpose and got an
opportunity to prepare a report on it.

The topic of my project is Talent Management. In this report I have put my best efforts to
compile the data to the highest level of accuracy and give my views to the best of my
judgement.

INDEX

Sr. No.

Contents

Page No.

1.

Chapter 1: Introduction

1-4

Introduction of the study

Objectives of the study
Rationale of the study
Limitations of the study

Chapter 2: Research Methodology

Review of Literature
Primary & Secondary data
Statement of hypothesis

2.

5-10

Chapter 3: Profile of the Organisation

Introduction of the Organisation
Network/Product/Branches of Organisation
Vision of the Organisation

3.

11-16

Chapter 4: Introduction of Talent

Management

4.

Introduction of talent management

Talent management v/s Traditional HR
approach
Understanding talent
Human capital management

Chapter 5: Talent Management

Meaning & Definition of talent management

17-19

5.

Importance of talent management

Challenges of talent management
How to manage talent?
Steps involved in talent management process

20-31

Chapter 6: Performance appraisal

What is performance appraisal?
Methods of performance appraisal
How performance appraisal conduct in
L&T?

6.

32-34
Chapter 7: Career Planning

7.

Meaning, Definition & Process of career planning

How implement career planning in L&T?

Chapter 8: Training & Development

8.

Meaning & Definition

Methods of training
How training is implement in L&T?

Chapter 9: Collection, Analysis &

35-37

38-40

Interpretation of data

Chapter 10:
Conclusion
9.

41-47
Chapter 11: Suggestions & Recommendations

10.

Chapter 12:
Bibliography

48-49

11.

Chapter13: Appendices

50-51

12.

Chapter 14: Questionnaire

52-53

13.

54-55

14.

56-59

CHAPTER 1:
Introduction

Introduction of the study

TALENT MANAGEMENT
In todays challenging business environment of going global and competition becoming
intense, organizations have mounting pressure to perform better than before. Talent
management implies recognising a persons inherent skills, traits, personality and offering
him a matching job. Every person has a unique talent that suits a particular job profile and
other position will cause discomfort. It is the job of the management, particularly the HR
department to place candidates with prudence and caution. A wrong fit will result in further
hiring, re-training and other wasteful activities. Talent Management is beneficial to both the
organisation and the employees. The organisation benefits from: increased productivity and
capability; a better linkage between individuals efforts and business goals; commitment of
valued employees; reduced turnover; increased bench strength and a better fit between
peoples job and skills. Employee benefits from; higher motivation and commitment; career
development; increased knowledge about and contribution to company goals; sustained
motivation and job satisfaction. In these days of highly competitive world, where change is
the only constant factor, it is important for an organisation to develop the most important
resource. In this globalise world, it is only the Human Resource that can provide an
organisation the competitive edge because under the new trade agreements, technology can
be easily transferred from one country to another and there is no dearth for sources of cheap
finance. But it is the talented workforce that is very hard to find. Talent signals an ability to
learn and develop to the face of new challenges. Talent is about future potential rather than
past track record. So talent trends to be measure in terms of having certain attributes, such as
a willingness to take a risks and learn from mistakes, a reasonable (but not too high) level of
ambition and competitiveness., the ability to focus on big picture issues, and an awareness
of their own strengths, limitations and impact on others. Several talent management processes
need to be in place on a strategic level in order ensure its success. Such possesses/ strategies
include talent identification, recruitment and assessment, competency management,
performance management, career development, learning management, compensation,
succession planning etc. Talent management has a number of benefits to offer such as

employee engagement, retention, aligning to strategic goals in order to identify the future
leadership of the organisation, increased productivity, culture of excellence and much more.

Objective of the study

In the current scenario, every company has to survive to satisfy its customers by providing
them quality products and services. The summer training at company, was undertaken with a
view to study certain fundamental as well as the commercial and operational aspects of the
company. The training involved the study of the following:

To understand the entire procedure to Talent Management.

To understand the need of Talent Management.
To study the accuracy and quality work of employees by Talent Management

procedure.
To suggest possible improvement in Talent Management process.

Rationale of the study

The Talent in an organisation refers to the current employees and their valuable knowledge,
skills and competencies. Talent Management is the ongoing process of analysing, the
developing and effectively utilising talent to meet Business needs. It involves a specific
process that compares current talent in a department to the strategic business needs to that
department. Results lead to the development and implementation of corresponding strategies
to address any talent gaps or surpluses.
Talent management for the HR community is a priority of the HR strategy for the HR
community. Not only does the HR strategy support the HR community as its also own
professionals group, but it also recognise and will support the role human resource
professionals have to help their clients become skilled, committed and accountable public
servants. The implementation of a talent management process that is transparent and
equitable is expected to create an environment for people to develop their skills in preparation
for a range of future possibilities thereby preparing the workplace for changing roles. The
goal of this process is to map the business needs to the HR community with the potential and
career development needs of our people in order to develop a comprehensive Talent
Management Plan.

Limitations of the study

All the functions are only related with the personnel department.
Limitation about the time and absenteeism.
Company not allowing to disclose confidential information.
Time factor was the major limitation of the survey.

CHAPTER 2:
Research
Methodology

Research Methodology:
Review of literature
Traditional HR system approach people development from the perspective of developing
competencies in the organisation. This can actually be a risk-prone approach, especially for
companies operating in fast evolving industries, since competencies become redundant with
time and new competencies need to be developed. Thus, over time, the entire approach to be
development people might be rendered obsolete calling for rethinking the entire development
initiative. Talent management on the other hand focuses on enhancing the potential of people
by developing capacities. Capacities are the basic DNA of an organisation and also individual
potential.
D

Point of Departure

Navigation

Point of Arrival

In fact, the following appropriately describes the role of talent management.

Translating organisational vision into goals and mapping the required level of capacities and
competencies to achieve goals aligning individual values and vision with organisational
values and vision.
Clear understanding of the varied roles within the organisation and appreciation of the value
addition from self and others leading to building a culture to trust, sharing and team
orientation.
Assessment of talent to profile the level of capacities and set of competencies possessed
within the organisation.
Enhancing capacities to learn, think relate and act through development initiatives. Individual
growth to meet and accept varied incremental and transformational roles in overall scenario
of acknowledgement need for change.

Gap analysis and identification of development path helping individuals realise their full
potential through learning and development. Developed individuals enabling breakthrough
performance.

Understanding Talent
The idea of developing talent is not a new concept in any business. In fact every successful
company that has stood the test of time has done so, Because of their ability to attract, retain
and get the best out of their talent.
Today we read war of talent. This has emerged, not because companies have forgotten about
talent, or allowed it drop off of the radar but, because in some fundamental ways, the talent
has changed. We have a new kind of young person entering the business world, with a very
different world view, set of values, priorities and goals.

Focus 1: Attracting and Recruiting Talent

In order to effectively attract and recruit talented employees you need to understand what
talent is looking for in a career and how they will view your business in terms of fitting in
with their needs. Your approach to each one of your potential recruits needs to be altered to
suit that they are.
By examining this through the perspective of the different generations, we are able to look at
their attitudes to work what kind of career, organisation and benefits they are looking for and
know what kind of technique will ensure that your recruitment process is successful in each
generation context.

This focus unit looks at the following:

o
o
o
o
o

Attitude to work
Career goals
Views on organisation and how they are currently run
What benefits each generation is looking for
Techniques to attract the different generations: what will make your organisation

stand out?
o Techniques the recruit the different generations: how should the job offer be
presented?

Focus 2: retaining and developing talent:

In order to effectively retain and develop talent you need to understand what the generations
are looking in a future career and in organisation. Your approach to each one of your
employees needs to be altered to fit individual goals and personal needs.

The focus unit looks at the following:

o
o
o
o
o

Work ethics and values

Career planning
Work environment and culture
Benefits and reward system
Ways of motivating

Focus 3: managing talent:

An in depth look how the generations internalize authority will enable you to adjust your
management style to fit in with who they are. We are able to look at the attitudes of the
different generations to leadership and management; what kind of management approaches
will ensure that you gain maximum loyalty, productivity and job satisfaction from each of
your employees.

This focus unit looks at the following:

o Attitude to authority
o Management style for the different generations including conflict management
o Specific techniques to help you manage different generation including communication
and feedback preferences
o Coaching and mentoring preferences including
The role of coach
The coaching process

Research Methodology
Research methodology is a way to systematically solve the research problems. It may be
understand as a science of studying how research is done scientifically. In it we are studying a
research problems along with the logic behind them. It is necessary the researcher to know
not only the research method techniques but also the methodology.

Types of Research:
It is descriptive type of research. Descriptive research survey and fact finding inquiries of
different kind. The major purpose of descriptive research is descriptive the state of affairs, as
it exist at present. The main control over the variables; he can only report what has to
discover the even when there he cannot the variables. The methods has to researcher utilized
in descriptive research are survey methods of all kind.

Data Source:
The source of project depends on accurate data. Thats why data collecting the appropriate
data, which differ considerable in context money, cost, time and other resources at the
disposal researcher.

There are two types of data collection methods available:

1. Primary Data collection method
2. Secondary Data collection method

Primary & Secondary Data collection method

1. Primary Data collection method
Primary data are those that are obtain by the user for fulfilment their purpose. I have taken
primary data through emailing the questionnaire of this survey of L&T. At all level and
observation methods to get more reliable information. This data helped me to justify the
statements that have made in this project.

2. Secondary Data collection method

The secondary data is that which is already collected and stored or we can say already saved
or ready data by others. I got secondary data from their journals, records, specimen of
appraisal form etc. and from newspapers magazines, articles, internet etc. I got basic
information of talent management. I collected secondary data by referring some specimen of
company and by referring some books and websites of company from internet.

Statement of hypothesis
4

Hypothesis are the essential assumptions which the researcher formulates about the possible
causes, findings and ultimate output of the issues in under research. Under hypothesis mere
assumptions or suppositions are made which are to be proved or disproved. For researcher it
is a formal question that he intends to resolve. A hypothesis consist either of a suggested
explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation
between multiple phenomenon. The assumptions be true of false are to be proved through the
completion of project.

The hypothesis for this project are as follows:

Null hypothesis:

Employee taking benefits from talent management system

Employee can retain successfully for the benefit of organisation
Employees performance increased by talent management
Employee turnover of organisation affected by talent management procedure

Alternate hypothesis:

Employee are not able to take benefits from talent management system
Employee cannot retain successfully for the benefits of organisations
Employees performance cannot increased by talent management
Talent management is not affecting on employee turnover of organisation.

CHAPTER 3: Profile
of the Organisation

Profile of the organisation:

Introduction of the Organisation
Larsen & Toubro Limited, also known as L&T is an Indian multi-national conglomerate
headquartered in Mumbai, Maharashtra, India. It was founded by Danish engineers taking
refuge in India, as well as an Indian financing partner. The company has business interests in
engineering, construction, manufacturing goods, information technology, and financial
services, and also has an office in the Middle-East and other parts of Asia.
L&T is India's largest engineering and construction company. Described by NDTV in 2013 as
a "bellwether of India's engineering & construction sector", L&T was recognized as the
Company of the Year in Economic Times 2010 awards.

History
Prior to Indian independence, a company was founded in 1938 Bombay (Mumbai) (British
India) by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. The
company began as a representative of Danish manufacturers of dairy equipment. However,
with the start of the Second World War in 1939 and the resulting restriction on imports, the
partners started a small workshop to undertake jobs and provide service facilities.
Germany's invasion of Denmark in 1940 stopped supplies of Danish products. The war-time
need to repair and refit ships offered L&T an opportunity, and led to the formation of a new
company, Hilda Ltd, to handle these operations. L&T also started to repair and fabricate ships
signaling the expansion of the company.
The sudden internment of German engineers in British India (due to suspicions caused by the
Second World War), who were to put up a soda ash plant for the Tata's, gave L&T a chance to
enter the field of installation.
In 1944, ECC was incorporated by the partners; the company at this time was focused on
construction projects (Presently, ECC is the construction division of L&T). L&T began
several foreign collaborations. By 1945, the company represented British manufacturers of
equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass.
In 1945, the company signed an agreement with Caterpillar Tractor Company, USA, for
marketing earth moving equipment. At the end of the war, large numbers of war-surplus
Caterpillar equipment were available at attractive prices, but the finances required were

beyond the capacity of the partners. This prompted them to raise additional equity capital,
and on 7 February 1946, Larsen & Toubro Private Limited was incorporated.
After independence, offices were set up in Kolkata (Calcutta), Chennai (Madras) and New
Delhi. In 1948, 55 acres of undeveloped marsh and jungle was acquired in Powai, Mumbai. A
previously uninhabitable swamp subsequently became the site of its main manufacturing hub.
In December 1950, L&T became a public company with a paid-up capital of 20 lakhs (2
million rupees) (2,000,000). The sales turnover in that year was 1.09 crore (10.9 million
rupees). In 1956, a major part of the company's Mumbai office moved to ICI House in
Ballard Estate, Mumbai; which would later be purchased by the company and renamed as
L&T House, its present corporate office.
During the 1960s ventures included UTMAL (set up in 1960), Audco India Limited (1961),
Eutectic Welding Alloys (1962) and TENGL (1963).

Awards and recognition

In 1997, the Bengaluru Works division was awarded the "Best of all" Rajiv Gandhi
National Quality Award

In 2014 Larsen & Toubro ranked 500 on Forbes list of 2000 worlds largest and most
powerful public companies based on revenues, profits, assets and market value. 54
Indian companies made it to the prestigious list, and L&T is the highest-ranked
company in the engineering and construction section and 10th among all Indian public
and private sectors.

According to the Brand Trust Report 2012 published by Trust Research Advisory, a
brand analytics company, L&T was positioned 47th among India's most trusted
brands. Subsequently, in Brand Trust Report 2013, L&T was ranked 127th among the
most trusted brands in India while according to the Brand Trust Report 2014, L&T
was elevated to the 38th position among India's most trusted brands.

In 2013, L&T Power received 'Golden Peacock National Quality Award 2012' at the
23rd World Congress on 'Leadership & Quality of Governance'.

In 2012, Forbes ranked L&T as 9th most innovative company in the world. L&T was
also featured in the Forbes Asia's annual 'Fabulous 50' list in 2010, for the fifth time in
a row.

In 2012, L&T was ranked 4th by Newsweek in the global list of green companies in
the industrial sector.

In 2013 the Harvard Business Review named L&T's Executive Chairman, A M Naik,
as the 32nd Best Performing CEO in the world.

Strengths
Diversified business
Strong financial
positions

Weakness
Decreasing order

Opportunities
To strength the

book value from

inter nation

oil and gas sector

presence

Cash conversion
Strong management

Threats

Technolog

Global slow

Favorable tax

Interest ra

exemption

risk

Growth in assets
over weight
growth in profits

Alliances with
power sector

SWOT analysis of L&T

Vision
9

Operating divisions
L&T has formed a joint venture with Sapura Crest Petroleum Berhad, Malaysia for providing
services to the offshore construction industry. The joint venture will own and operate the LTS
3000, a crane vessel for heavy lifting and pipe-laying.
L&T Power has set up an organization focused on coal-based, gas-based and nuclear power
projects. L&T has formed two joint ventures with Mitsubishi Heavy Industries, Japan to
manufacture super critical boilers and steam turbine generators.
L&T is among the largest five fabrication companies in the world. L&T has a shipyard
capable of constructing vessels of up to 150 meter long and displacement of 20,000 tons at its
heavy engineering complex at Hazira, Gujarat. The shipyard constructs specialized heavy-lift
ships, CNG carriers, chemical tankers, defense & para-military vessels, submarines and other
role-specific vessels.
The design wing of L&T ECC is EDRC (Engineering Design and Research Centre), which
provides consultancy, design and services. It carries out basic and detailed design for both
residential and commercial projects.

L&T Realty
L&T Realty is the real estate development arm of Larsen & Toubro. The company operates in
Western and Southern India, constructing residential, corporate office, retail, leisure and
entertainment properties with 35 million sq. ft. under various stages of development.

L&T Technology Services

10

L&T Technology Services, a subsidiary of Larsen & Toubro, is an engineering services

company that operates in the global Engineering, Research and Development (ER&D)
space. L&T Technology Services offers design, development and testing services for the
industrial products, medical devices, transportation, aerospace, telecom and process
industries. The company serves customers across the product engineering life cycle from
product conceptualization to implementation. Services include consulting, design,
development, testing, maintenance and to-market integration services.

L&T Solar
L&T Construction, a subsidiary of Larsen & Toubro, undertakes solar energy projects. In
April 2012, L&T commissioned India's largest solar photovoltaic power plant (40 MWp)
owned by Reliance Power at Jaisalmer, Rajasthan from concept to commissioning in 129
days. In 2011, L&T entered into a partnership with Sharp for EPC (engineering, procurement
and construction) in megawatt solar project and plan to construct about 100 MW in the next
12 months in most of the metros. L&T Infra Finance, promoted by the parent L&T Ltd, is
also active in the funding of solar projects in India.

Electrical and Automation

L&T is an international manufacturer of electrical and electronic products and systems. The
company also manufactures custom-engineered switchboards for industrial sectors like
power, refineries, petrochemicals and cement. In the electronic segment, L&T offers a range
of meters and provides control and automation systems for industries.

Information Technology (IT)

Larsen & Toubro Infotech
Larsen & Toubro Infotech Limited, a wholly owned subsidiary of L&T, offers information
technology, software and services with a focus on manufacturing, BFSI and communications
and embedded systems. It also provides services for embedded intelligence and engineering.

Machinery and industrial products

L&T manufactures, markets and provides service support for construction and mining
machinery, including surface miners, hydraulic excavators, aggregate crushers, loader
backhoes and vibratory compactors; supplies rubber processing machinery and manufactures
and markets industrial valves and allied products along with application-engineered welding
alloys.

EWAC Alloys Limited

11

EWAC Alloys Limited is a wholly owned subsidiary of Larsen & Toubro, India. The
company is engaged in design & development, manufacture and supply of special welding
electrodes, gas brazing rods and fluxes, welding torches and accessories, atomized metal
powder alloys, flux cored continuous wires & wire feeders, polymer compounds & wearresistant plates.
Prof Wasserman, founder of Eutectic Castolin, and Henning Hock Larsen, founder of Larsen
& Toubro, founded the Eutectic Division in India in the year 1962. Eutectic Castolin was later
merged into the Messer Group of companies, Germany and referred as Messer Eutectic
Castolin (MEC).

CHAPTER 4:
Introduction of Talent
Management
12

Introduction of Talent Management

Meaning & Definition
With businesses going global and competition becoming intense, there is mounting pressure
on organisations to deliver more and better than before. Organizations therefore need to be
able to develop and deploy people who can articulate the passion and vision of the
organisation and make teams with the energy to perform at much higher levels.
These people build and drive the knowledge assets of a corporation, the value of which has
been established to be many times more than the tangibles. The capacity of an organisation to
hire, develop and retain talent is therefore the most crucial business process and priority on
the CEOs agenda.
The 1990s ended with a call to arms to fight the war for talent. While the war for talent
clearly has cooled in the early stages of the 21st century, dampened by economic doldrums &
concerns with global security; the rear battle to attract, motivate , development & retain talent
is going to heat up considerably. A looming demographic tame bomb will make talent
management a priority for organizations.
A host of issues like: loss of human capital, talent shortages, ageism, and cultural clash has
made acquiring & managing talent difficult.
Talent Management describes the process through which employers of all kinds- firms, govt.,
and non-profit organisations- anticipate their human capital needs & set about meeting them.
Thus talent management refers to: getting the RIGHT PEOPLE with the RIGHT SKILLS into
the RIGHT JOBS.
It is a professional term, also known as human capital management that refers to the
process of developing & fostering new workers through on boarding, developing & keeping
current workers & attracting highly skilled workers to work for your company. Companies
that are engaged in talent management are strategic & deliberate in how they recruit, manage
asses, develop and maintain an organisations most important resource- its PEOPLE. This
term also incorporates how companies drive performance at the individual level.
Decisions about talent management shape the competencies that organisations have and their
ultimate success; and from the perspective of individuals, these decisions determine the path
13

& pace of careers. We may thus understand that this term is usually associated with
competency based HRM practices. Talent management decisions are often driven by a set of
organisational core competencies as well as position- specific competencies. The competency
set may include knowledge, skills, experience & personal traits.

Human capital management

Companies that engaged in talent management (human capital management) are strategic &
deliberate in how they source, attract, select, train, develop, retain, promote & move
employees through the organisation. Research done on the value of such system implemented
within companies consistently uncovers benefits in these critical economic areas: revenue,
customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. The
mind set of this more personal human resource approach seeks not only to hire the most
qualified and valuable employees but also to put strong emphasis on retention. Since the
initial hiring process is so expensive to a company, it is important to place the individual in a
position where his skills are being extensively utilized.
The terms Talent Management means different things to different organisations. To some it is
about the management of high worth individuals or the Talented whilst to others it is about
how talent is managed generally i.e. on the assumption that all people have talent which
should be identified & liberated. From a talent management standpoint, employee evaluations
concern two major areas of measurement: Performance & Potential. Current employee
performance within a specific job has always been a standard evaluation measurement tool of
the profitability of an employee. However, talent management also seeks to focus on
employees potential, meaning an employees future performance, if given the proper
development of skills.
The major aspects of talent management practiced within an organisation must consistently
include:

Performance management
Leadership development
Work force planning/identifying talent gaps
Recruiting

This term of talent management is usually associated with competency based human resource
management practices. Talent management decisions are often driven by a set of
organisational core competencies as well as positions specific competencies. The competency
14

set may include knowledge, skills, experience and personal traits (demonstrated through
defined behaviours). Older competency models might also contain attributes that rarely
predict success (e.g. education, tenure, and diversity factors that are illegal to consider in
relation to job performance in many countries, and unethical within organisations).

15

CHAPTER 5: Talent
Management

16

Talent Management:
Meaning & Definition
Talent management implies recognising a persons inherent skills, traits, personality and
offering him a matching job. Every person has a unique talent that suits a particular job
profile and any other position will cause discomfort. It is the job of management, particularly
the HR department, to place candidates with prudence and caution. A wrong fit will result in
further hiring, retraining and wasteful activities.
Talent management is beneficial to both the organisation and the employees. The organisation
benefits from: increased productivity and capability, a better linkage between individuals
efforts and business goals; commitment of valued employees; reduced turnover; increased
bench strength and a better fit between peoples job and skills. Employees benefits from:
higher motivation and commitment, career development, increased knowledge about and
contribution to company goals; sustained motivation and job satisfaction.
In these days of highly competitive world, where change is the only factor, it is important for
organisation to develop the most important resource of all- the Human Resource. In this
globalise world, it is only the Human Resource that can provide an organisation the
competitive edge because under the new trade agreements, technology can be easily
transferred from one country to another and there is no dearth of sources of cheap finance.
But it is the talented workforce that is very hard to find. The biggest problem is how to retain
the present workforce and stop them from quitting.

Importance of talent management

First, let us look at some of the reasons for the importance of talent management.

Globalization:
Now for any job seekers the whole world is the potential place to find employment.
One can know the opportunities available in any part of the world easily and the
number of talent seekers has also increased.

17

 Increased Competition:
Increased competition is the market place has necessitated the need for consistently
good performance on the side of the organisations. These have made the companies to
put in all efforts to hire and retain the best talent in the respective field of the
operation.

Increasing knowledge:
The knowledge era has necessitated the retaining of those talents which have the
ability to assimilate new technologies and knowledge, which are going at a pace never
seen before.

How talent management is important for an organisation:

1. Cost cutting:
One experienced and skilled employee can replaced instead of two or more
employees. Organisations can save hundreds of thousands of rupees.

2. Maximum output:
Organisation can make maximum output in minimum resources.

3. Time saving technique:

It is a time saving technique, because for every job a skilled person can place. It is
helpful to complete job in minimum time.

4. Perfection increase:
Due to skilled employee perfection in work is increase. There is low probability of
mistakes.

How talent management is important for an employee:

Recruitment
It is ensuring that the right person are attracted to the organisation, due to providing
exposure for their skills.

Retention
18

Developing and implementing practices that reward and support employees.

Employee development
Ensuring continuous formal and informal learning and development.

Leadership and high potential employee development

Specific development programs for existing and future leaders.

Performance management
Specific processes that nature and support performance, including feedback/
measurement.

Workforce planning
Planning for general and business changes, including the older workforce and
current/future skills shortage.

Culture
Development of a positive, progressive and high performance way of operating.

The challenges
The challenge of talent management has two faces. First is how to find new people
and second is how to retain the present workforce. Each of the challenges has to be
tackled in the most efficient way possible so that the organisation can achieve its
objectives.

The first challenge: How to find new talent?

All the organisations are finding loads of business opportunities and consequently,
there revenues are growing at a rapid pace. The increasing business opportunities has
necessitated that these organisations go in for massive recruitment. But, the question

19

is where to find the best talent which is able to fit the job description and also adjust
to the organisations values and norms. If we scan the environment, we find there is a
shortage of skilled workforce that can be employed.

Some of the possible reasons that have led to the shortage are:Demographic constraints:
This is a common problem faced by many of the developed countries, where a large
chunk of its population is nearing the age of retirement or it is over 50 years. USA,
Germany or Japan are facing the same problem. All these countries will see a decline
in their workforce and talent. In the coming years, they will see a great shortage in
their skilled professionals.

Existing information system:

The graduates and the postgraduates that are being churned out of the universities are
found to be ill-equipped to handle the challenges of the workplace.
They are mostly equipped with only the theoretical aspects of the issues and lack the
application part. The educational system is faulty and does not take industry
requirement and educational preparation.

Cost factor:
Recruiting new employees is becoming tougher in the developing countries, where the HR
department has to sort out thousands of applications for a handful of jobs. Finding right
person for the right job becomes a very difficult process. It also involves very high cost to
conduct the recruitment and selection process for such a large population of applicants.

Attracting the best Talent:

This is another challenge. As was the case in the past, the best available talent is not just
motivated by the name and fame of the organisations. Not any more, they have a new set of
motivators like challenging work, conducive work environment and freedom from
bureaucratic structure.

The second challenge: How to retain the existing employees?

Gone are the days when a person would join an organisation in his mid-20s and would work
till his retirement in the late-50s. Today the young professionals hop jobs, especially during
20

the first 4-5 years of their work life. Though the Indian service industry is basking in the light
of outsourced jobs from the developed countries, they also cannot ignore the fact that the
BPO industry is also facing is one of the highest attrition rates, in fact never heard before in
India, of around 35%.
It is a fact that its the people that add value to organisations. It is also a fact that humans are
the restless species who, unlike the immovable banyan tree, cannot stay rooted in one place.
People need to move on for one reason to another, and the organisation stand to lose.

Let us look at some of the reasons behind the massive attrition rates:1. Gap between organisational values and goals and the personal values and goals is one
of the major reasons of the attrition rates. If they go parallel, there is no way both
would be satisfied and inevitably, the organisation would lose out on a talented
employee.
2. Working environment is another major factor. Employees is the knowledge era
demand creative and a democratic work environment. Failure on the part of the
management to provide such an environment will result in a talented employee
leaving the organisation.
3. The competitive world has made sure that there is high work pressure on the
employee of any organisation. This has led to psychological problems like stress, and
in extreme situations, total burnouts. It also leads to other health related problems.
4. Movement for higher salary is also common among the younger professionals. There
is no shortage for organisations who are looking for talented employees and who are
ready to shell out a hefty salary for a talented person. Other lures like better job
opportunities, higher posts and overseas assignments are also major factor in the
attrition rates.
5. Not taking proper care during the recruitment and selection process and not taking
proper care to fit the right person to the right job also breeds dissatisfaction among the
employees.
6. Bad or opaque policies from management on issues of succession planning and
promotion, appointments for senior positions also is a major factor which makes the
organisation lose out on the talented employees.
21

7. The professional have different aspirations at different times of their career. During
the initial years, they have good salary and foreign assignments. Next on the list is
working on cutting edge technology. More seasoned professionals look for learning
opportunities. So employees tend to move to those organisations which provide them
with means to fulfil their aspirations.
Retaining the present employees is of the foremost importance to the organisations because;
the company would have already incurred heavy costs in the form of training & development.
Now if the organisations has to look for a replacement of the employees who has left, it
involves the lot of costs like- hiring costs, training costs and the induction costs.
Also it takes some time for the new employee to adjust the new environment. During this
time for productivity of employee will be low. The HR department will have to fit the new
employees into a proper role in the organisation. Apart from causing the company a monetary
loss and breaks in their day-to-day operations, attrition, contributes to knowledge transfers,
which is a great loss and adversely affects business.

How to manage the Talent?

It is now proved beyond doubt that, in the era of technology and knowledge, talent is the
driving seat. One who possess it dictates. Not he who pays of it. It is the demand of time that
business leaders evaluate management of talent to a burning corporate priority. It is not a
walk in the park for the talent market. Quality people are no longer available in plenty, easily
replaceable and relatively inexpensive.
These are some of measures that should be taken into account to hire and retain talent in the
organisation, to be efficient and competitive in this highly competitive world:-

Hire the right people

Proper care must be taken while hiring the people itself. It would be beneficial for an
organisation to recruit young people and nurture them, then to substitute by hiring from other
organisation. Questions to be asked at this stage: whether the person has the requisite skills
needed for the job? Whether the persons values and goals match with those of organisation?
In short, care must be taken to fir the right person to the right job.

Keep the promises

22

Good talent cannot be motivated by fake platitudes, half-truths and broken promises.
Unfulfilled expectation can breed dissatisfaction among the employees and make them either
leave the organisation or work below their productive level. Promises made during the hiring
stage must be kept to build loyalty among the employees, so that they are satisfied and work
to their fullest capability.

Good working environment

It has to be accepted by the organisations that highly talented persons make their own rules.
They have to be provided with a democratic and a stimulating work environment. The
organisational rules must be flexible enough to provide them with freedom to carry out their
part of task to their liking, as long as the task is achieved. Opportunities also should be
provided to the employees to achieve their personal goals.

Recognition of merit
It is highly motivating for any person if his talent is recognised and is suitably rewarded. One
way is providing them with salary commensurate with their performance. Promotions and
incentives based on performance are another way of doing it. Another ways is by providing
them with challenging projects. This will achieve two objects- it makes employee feel that he
is considered important (a highly motivating factor) and gets the work done in an efficient
manner and brings out the best in the employee.

Providing learning opportunities

Employee must be provided with continuous learning opportunities on and off work field
work through management development programs and distance learning programs. This will
also benefit the organisation in the form of highly talented workforce.

Shieling from high work pressure

If an organisation has to make the most of the available talent, they should be provided with
adequate time to relax, so that they can did stress themselves. It is very important to provide
them with holidays and all express paid trips, so that they can come back refreshed to work

23

and with increased energy. They must also be encouraged to pursue their interests which are
also a good way of reducing work environment stress.
Thus the domain of talent management focuses not only on development of individuals
intrinsic capacities, but also on culture building and change management to provide the other
elements listed above for manifestation of talent into performance.

24

Talent
+
Vision/mission/strategy
+
Skills & competencies
+
Role & structure
+
Opportunity
+
Encouragement & recognition
+
Training & development
+
Coaching
+
Action planning & goals
+
Resources
+
Performance management system

The new HR mission and talent management process

Many challenging workforce issues confront HR, including:

Heightened competition for skilled workers.

Impending retirement of the body boomers.
Low level of employee engagement.
Acknowledgement of the high cost of turnover.
Arduous demand of managing global workforces.
Importance of succession planning.
Off shoring and outsourcing trends.
25

This requires new thinking and a new mission to achieve business success. These factorscouple with the need to align people directly with corporate goals- are focusing HR to evolve
from policy creation, cost reduction, process efficiency and risk management to driving a new
talent mind set in the organisation.
One important distinction is the evolution of the difference between tactical HR and strategic
talent management. Transactional HR activities are administrative overhead. Talent
management is the continuous process that delivers the optimal workforce for your business.
In this new model- instead of being the owners of processes, forms and compliance- HR
become the strategic enabler of talent management processes that empower managers and
employees while creating business values.
With this view, talent management may be defined as the implementation of integrated
strategies or systems designed to improve processes for recruiting, developing, and retaining
people with the required skills and aptitude to meet current and future organisational needs.
Anecdotally, talent management is often defined as performance management, incentive
compensation, or talent acquisition. Talent management is also often confused with
leadership development. Although leadership development is a crucial function of your
organisation, focusing on it exclusively is a legacy of last century. Our modern service and
knowledge economies in the talent age require a board and holistic view. A high performance
business depends on a wide range of talent.
Taleos graphical representation emphasizes the mandate of talent management to respond to
business goals and consequently be the driver of business performance. Talent management is
depicted as a circular- not a linear- set of activities.

Why talent management?

Workforce cost is the largest category of spend for more organisations. Automation and
analysis of your recruiting and hiring processes provides the immediate workforce visibility
and insights you need to significantly improve your bottom line. Performance management
provides the ongoing processes and practices to maintain a stellar workforce.

26

Today, many organisations are struggling with silos of HR processes and technologies. The
future of talent management is embodied in solutions designed from the ground up to provide
business centric functionally on a unified talent management platform.
Since nearly all competitive business factors have become commoditized, talent is what
ultimately drives business success and creates value. Leading organisations rely on taleo
solutions and services to assess, acquire, develop, and align talent with business objectives
while significantly reducing process costs, improving quality of hire, reducing risk, and
achieving higher level of performance.
Though it may seem intuitive, it is worthwhile to articulate the fundamental significance of
successful talent management practices:

The key enabler of any organisation is talent.

The quality of your people is your last true competitive differentiator.
Talent drives performance.

Talent management requires strong executive support, along with system and processes all
directed towards having the right talent doing the right work at the right time. Thats when
talent truly drives higher business performance.

Indirect

implementation

of

talent

management

in

L&T,

Faridabad works by following steps:

Performance Appraisal

Career Planning

Succession Planning

Training & Development

27

CHAPTER 6:
Performance
Appraisal

28

What is performance appraisal?

Meaning: Performance appraisal is a method of evaluating the behaviour of employees of the
work spot, normally including both the quantitative or qualitative aspects of job performance.
Performance here refers to the degree of accomplishment of the tasks that make up an
individuals job. It indicates how well an individual is fulfilling the job demands. Often the
term is confused with effort, but performance is always measure in terms of results and not
efforts.

Need of performance appraisal:

Performance appraisal is needed in order to:
1. Provide information about the performance ranks, basing on which decision regarding
salary fixation, confirmation, promotion, transfer and demotion are taken.
2. Provide feedback information about the level of achievement and behaviour of
subordinate. This information helps to review the performance of the subordinates,
rectifying performance deficiencies and to set new standards of work, if necessary.
3. Provide information, which help to counsel the subordinates.
4. Provide information to diagnose deficiency in employee regarding skill, knowledge,
determine training and development needs and to prescribe the means for employee
growth provide information for collecting placements.
5. To prevent grievances and in disciplinary activities.

29

How implement performance appraisal?

Now a days performance appraise is very important from company point of view. It is used
to take various managerial decision. E.g. decision regarding employees increment or
decision regarding employees future career planning etc. in company they use grading and
ranking method to appraise performance of their employee.
Performance appraise by head of department or from the superior. They did not conduct
performance appraisal on officers level it conduct only on officers basis.
In company performance is appraising by head of the department, supervisor, managers etc.
Head of the department submit one copy of performance appraisal to HR department and
discuss with the employee whose performance is down. One copy of performance appraisal is
report is attached to that employees personal files as a record.
If that employees performance is going down then head of the department can talk with that
employee regarding increase performance. Even HR manager also should talk with that
employee to know his problem and HR manager should motivate that employee to increase
performance.

30

CHAPTER 7: Career
Planning

31

Meaning & Definition:

Meaning:
The career is all the jobs that are held during ones working life. According to E. B. Flippo,
career is a sequence of separate but related work activitys that provides continuity, order
and meaning in a persons life.

Definition:
1. Edwin Flippo define a career as a sequence of separate but related work activitys that
provides continuity order and meaning in a persons life.
2. Wreather and Davis define various terms of career planning as given below:
A career path is the sequential pattern of jobs that forms a career. Career planning is the
process by which one selects career goals and the path to these goals. Career development is
these personal improvements one undertakes to achieve a personal career plan.
3. Career management is the process of designing and implementing goals, plan &
strategies to enable the organisation to satisfy employee needs while allowing
individuals to achieve their career goals.

32

Implementation of career planning:

Career planning is generally done by every organisation. But method of career planning can
differ.

Training & Development:

Most of the time company can try to retain the skilled employee, therefore company provide
various type of knowledge of training, for company benefits as well as employee.

Transfer department to unit or unit to unit:

If an employee would like to work in specific department or unit for his skilled work and if it
will beneficial for company then it is also part of career planning.

Promotion:
In career planning, promotion is also a one part. To retain the skilled employee. Company
makes promotion of this kind of employee.

33

CHAPTER 8:
Training &
Development

34

Meaning & Definition:

After an employee selected, placed and introduced her or she must be provided with training
facilities. Training is the act of increasing the knowledge and skills of the employee for doing
a particular job. Training is the short-term educational process and utilising a systematic and
organised procedure by which employee learn technical knowledge and skills for a definite
purpose. Dale S. beach define training, the organised procedure by which people learn
knowledge and skills for a definite purpose.
In other words training improves, changes moulds the employees knowledge, skills,
behaviour, attitude and aptitude towards the requirement of the job and organisation. Training
refers to the teaching and learning activity carried on for the primary purpose of helping
members on an organisation, to acquire and apply the knowledge, skills, abilities and
attitudes needed by a particular job and organisation.

Definition:
The official and ongoing educational activities within an organization designed to enhance
the fulfilment and performance of employees. Training and development programs offered by
a business might include a variety of educational techniques and programs that can be
attended on a compulsory or voluntary basis by staff.

35

Implementation of training & development:

Method of training:
Method of training is totally depending upon the profile of training. E.g. for technical training
if possible then they give on job training otherwise company use method of off job training.

Assessment of need of training:

Head of the department and HR department assess the need whether employees need training
or not. They find employee who require training.

Prepare budget for training:

HR manager decide budget for training by considering its cost from the market. And benefits
for the company.

External trainer:
If they didnt find internal trainer then they go for external trainer. They try to find external
professional trainer from their personnel contact, by giving advertisement in newspaper etc.
36

Design program for training:

HR manager and head of the department present there need to trainer. They assess type of
training and design training program by the help of trainer within the budget.

37

CHAPTER 9:
Collection, Analysis
and Interpretation of
Data

38

Introduction of Data Analysis:

The word analysis means the process of breaking down a complex set of facts into simple
element while interpretation stands for the explanations which analysed the statements and
also make out or bring out the meaning of creative work.
Analysis and interpretation are done according to questionnaire. This analysis and
interpretation will definitely help to the company for the future strategies. Following are the
analysis and interpretation of the results.
These all analysis is imagine for general company. It is very necessary to understand the
psychological tendency of employee.
The last three months of joining the employee of the company where I conduct survey. Total
employees is 100.

Q: Aware of the policies and procedures of the L&T.

Policy and procedures

No. Of respondent

Percentage

not at all aware of the policy 15

15%

and procedures
aware but need

more 35

35%

50

50%

information
Know and understand

39

The above pie diagram shows that 50% of the respondents know and understand the policy
and procedures of L&T, 35% of the respondents aware but need more information and 15%
of the respondents not at all aware of the policy and procedures of the L&T.

Q: How you can help the organisation to achieve its aims?

Organisations aims
Yes
No

No. of respondents
65
35

Percentage
65%
35%

The above pie diagram shows that 65% of the respondents can help the organisation to
achieve its aims and 35% of the respondents cannot help the organisation to achieve its aims.

40

Q: What do you know about your job, and what would you like to
know more about?
Know about job
I know enough
I know a little, but
need to know more
I need to a lot more

No. of respondent
20
45

Percentage
20%
45%

35

35%

The above pie diagram shows that 20% of the respondents know enough about your own job,
45% of the respondents know a little but need to know more and 35% of the respondents
need to a lot more about your own job.

Q: Rate your satisfaction with the employees benefits and policies.

Benefits and policies
Satisfied
Dissatisfied

No. of respondents
70
30

Percentage
70%
30%

41

The above pie diagram shows that 70% of the respondents are satisfy with the employees
benefits and policies and 30% of the respondents are dissatisfy with the employees benefits
and policies.

Q: Rate your satisfaction with the salary and benefits packages

you receive.
Salary

and

package
Satisfied
Dissatisfied

benefits No. of respondents

57
43

Percentage
57%
43%

42

The above pie diagram shows that 57% of the respondents are satisfy with the salary and
benefits package of the company and 43% of the respondents are dissatisfy with the salary
and benefits package of the company.

Q: How motivated are you to company succeed?

Company succeed
Motivated
Not sure

No. of respondents
72
28

Percentage
72%
28%

The above pie diagram shows that 72% of the respondents are motivated to the company
succeed and 28% of the respondents are not sure for the succeeding of the company.

Q: How satisfied are you with L&T as a place to work as

compared to other places you have worked?
Work places
Satisfied
Dissatisfied

No. of respondents
80
20

Percentage
80%
20%

43

The above pie diagram shows that 80% of the respondents are satisfied with work at L&T as
compared to other places and 20% of the respondents are dissatisfied work at L&T as
compared to other places.

Q: How would you rate your manager?

Rate a manager
Poor
Average
Excellent

No. of respondents
10
30
60

Percentage
10%
30%
60%

The above pie diagram shows that 10% of the respondents poor rates in our manager, 30% of
the respondents average rates in our managers and 60% of the respondents excellent rates in
our manager.

44

CHAPTER 10:
Conclusion
45

Conclusion:
Talent Management for the HR community is an opportunity for HR professionals to develop
in their areas of expertise and in their careers. A strong HR community helps create a strong
public service. The goal of talent management is to better understand our people in the HR
community so we can support professional and career development and align individuals
needs and goals with the business focus of HR. We also want to ensure that we as a
community have the ability to develop people so that we are meeting the future needs of the
community and government and our clients.
The first broad sweep of the community provides a foundation on which to ensure leadership
continuity, knowledge transfer and service continuity. The initial implementation resulted in a
number of important human resource priorities and strategies, and as performance
management, leadership and management development, attraction and retention, employee
learning and development and culture, all of which are supported by the HR strategy for the
HR community. The critical next step in the process is the implementation of the Talent
Management Plan for the HR community. Individually, members of the community and their
managers should work together to move forward individual career development plans.

46

CHAPTER 11:
Suggestions &
Recommendations

47

Suggestions & recommendations:

1. Organisation should make research to avoid talent drain.
2. HR department should interact and expose inbound employee.
3. Perform various task to motivate employee for work, because various
employee cannot work with motivation they just do it, because organisation
pay for them.

48

CHAPTER 12:
Bibliography

49

Bibliography:
I am overwhelmed in presenting my summer project report in Larsen & Toubro Private
Limited works for this I wish to express my deep sense of gratitude for following web
sources to take their references for these project.

Web Sources:

Google.com
Slideshare.net
Wikipedia.com

50

CHAPTER 13:
Appendices

51

Appendices:
List of graphs:
Employee survey(P 64)

List of tables:

SWOT analysis of L&T(P 20)

Manage Talent(P 45)
Methods of performance appraisal(P 52)
Process of career planning(P 56)
Methods of training(P 60)
Employee survey(P 64)

52

Chapter 14:
Questionnaire

53

54

Questionnaire:
Employee Name:Employee Age:Employee Designation:Q:- Have you been made aware of the policies and procedures of L&T? Do
you know and understand them? (Tick one per statement)
Aspects

Not at all aware

Aware of this but Know and

of this

need more

understand this

information
The structure of
the company
The aim of the
company
Our health and
safety
procedures
Our equal
opportunity
policy
Policy on holiday
entitlement
Policy on
absence
Policy on
paternity/
maternity leave

55

Q:- Do you know how you can help the organisation to achieve its aims?
A) Yes
B) No
Q:- What do know about your job, and what would you like to know more
about? (Tick one per statement)

Aspects

I know enough
about this

I know a little,
I need to know a
but need to know lot more about
more
this

Your position in
the organisation
Your hours of
work
Your pay
The staff canteen
The team you
work within

Q:- Please rate your satisfaction with the employee benefits and policies?
(Tick one per statement)

Aspects
Job description
Salary review
Leave of absence
Health care benefits
Retirement benefits
Adequate information
provided about the
company

Satisfied

Dissatisfied

Q:- Please rate your satisfaction with the salary and benefits package you
receive. (Tick one per statement)
56

Aspects
Medical package
Holiday entitlement
Company saving plan

Satisfied

Dissatisfied

Q:- How motivated are you to company succeed?

A) Motivated
B) Not sure
Q:- How satisfied are you with L&T as a place to work as compared to
other places you have worked?
A) Satisfied
B) Dissatisfied
Q:- How would you rate your manager in each of the following areas? (Tick
one per statement)

Aspects
Communication
Planning &
organising
Directing &
coordinating
Job/ technical
knowledge
Interpersonal
relationships

Poor

Average

Excellent

57