Q.1 Describe the five competency model.

stage

approach

for

building

Ans. The five stage approach for building a competency model is as follows:

(I) Assemble the focus team and create a list of processes : The first stage in building a Leadership Competency Model is to assemble a Focus Team composed of a cross-functional mix of first-line leaders, middle leaders and senior leaders. Big organizations might want to build different competency models for the upper and lower line of leadership. These individuals are Expert Practitioners who are the best people in their fields. With the help of interviews, surveys, observations and other activities, a list is created of the major processes and the requirements needed by leaders to carry them out in an correct fashion. It needs to be ensured that any observations or interviews are performed on Expert Practitioners. Competencies depend on what an expert does to get his or her job done but not on what others think. (II) Build behavioral indicators for each process : This is the second stage where in the major behavioral indicators for each competency are identified by the members of the HR team that needs to be performed to produce the desired outputs. The behavioral indicators needed for greater performance must be listed after going through each competency. These behavioral indicators must be : Future-oriented rather than problem-oriented as they are creating a powerful tool to guide the organization. A component of a strategic planning or organizational planning process model. The best results are often achieved when built in along with other processes. (III) Categorized the data : In this stage, categorization of data takes place. The competency of leadership is divided into three classes which are Core, Leadership and Professional. The core competencies are essential of all people within the organization. The leadership competencies are meant for managers and supervisors. And the professional competencies are position specific. Be careful when building professional competencies for leaders.

Leaders from different field often bring new perspective and originality to the organizations. It has to be ensured that the selected behavioral indicators are really the required skills, knowledge or attitudes. For example, the late Seattle School Superintendent, John Stanford, was one of the best things that happened to the district; yet he was a former Army General and City Manager without experience or education in educational institutions. It would have been a great loss for the district if the professional competency list for his job had been so stringent, that he would never have got the job. (IV) Order each category : This stage is used to order each category. The team gives numbers to each competency in its order of magnitude for each category. One process for doing this is to categorize each competency on a Post-it note and then observing each category at a time. After which the competencies are arranged from the most significant competency to the least significant. Finally, it is required to find out if any of the competencies at the bottom of each category can be discarded. The cause behind all this is that the team might have listed too many competencies to be easily measured. Later, this will help them determine a convenient number for a cut-off point. At this point, it is fine for having too many competencies listed. The correct number will be determined during the field testing of the performance appraisal. (V) Validate the competency model : This stage validates the competency model by order of importance. There are a number of ways of performing this : Duplication : reproduce the original research results. This is done by getting another sample of higher performers, conducting interviews, and deriving a competency model. This new model is then compared to the original one. Jury : independent jury members, having expert knowledge, deliver their best professional judgment on the model. They must include both internal and external experts. This group presents their opinion of the model as part of a professional report. Survey : a survey is conducted for a selected number of individuals throughout the company and they are asked to number each competency by its order to importance. They are also required to add their own competencies. The competencies should not be listed by the order ranked by the Competency Team as too many respondents might go with the team instead of thinking for themselves. Departmental focus group : a collective ranking is done as by each department or a representative of departments. The advantage is that more people are involved simultaneously and giving less information to collect. This means that each member of the department contributes and each department submits in one survey

of their collected results. The disadvantages are the assistance given to each department and the time involved in bringing each department together as a group. Structured interviews/observation : interviews and observations are performed randomly with a number of leaders throughout the organization. This is used to determine their competencies and to get their opinions of which ones to select for the execution of their job. Benchmarking : comparing the results of the organization with another best-of-class organization. Balanced scorecard : the competencies required to accomplish the desired organizational goals throughout the organization are identified by the Expert Practitioners. For example, the scorecard might measure organizational performance across a number of perspectives, such as financial, customers, internal business processes and learning and growth. This process works best for the higher ranks of leaders. Its objective is to rank performance on several indicators that measure the ability for long term growth rather than short term financial success. Customer service standards : the only competencies measured here are those that help meet required customer service standards. It is used in organizations where performance-oriented budgets are adjusted for service standards, not line items. Interviews : investigates the attributes of the superior and average performers through the use of critical behavior interactions. In these interviews, individuals describe their work experiences in which they were effective and ineffective.

Q.2 What is the importance of talent management? Ans. Importance of Talent Management
Like human capital, talent management is gaining increased attention. Talent Management (TM) brings together a number of important human resources (HR) and management initiatives. Organizations that officially decide to manage their own talent carry out a strategic analysis of their current HR processes. This is to make sure that a coordinated, performance oriented approach is adopted. Many organizations are adopting a TM approach which focuses on coordinating and integrating methods which are given as : Recruitment : To ensure the right people are attracted to the organization. Retention : To develop and implement practices that reward and support employees.

 Employee development : To ensure continuous informal and formal learning and development. Leadership and high potential employee development : Specific development programs for existing and future leaders. Performance management : Specific processes that nurture and support performance, including feedback/measurement. Workforce planning : To plan for business and general changes which include the older workforce and current/future skills shortages. Culture : To develop of a positive, progressive and high performance way of operating.

Q.3 What are the top 10 talent management challenges faced by an HR? Ans. Talent management is the systematic attraction, identification,
development, engagement/retention and deployment of the employees. These employees are of particular value to an organization, either in view of their high potential for the future or because they are fulfilling business/operation-critical roles. The top 10 management challenges are : An organization needs to attract and retain talent at all levels, in accordance to the organic and inorganic growth. The organization needs to clearly identify the processes for attracting and retaining employees. This is associated with knowledge about the talent required for business now and in the future. Identify sources of such talent, recognizing this talent and in the future. Identifying sources of such talent, recognizing this talent and deploying them for the benefit of the organization. Develop a value proposition that appeals to all the generations : Organizations are struggling create an employee experience that is valued by all employees because of the presence of four generations within todays workplace. Companies need to create an employee experience that appeals to individuals with varied needs and preferences. For example, consider a company that consists of a number of retail store, having a workforce of about 1,53,000. The store has a high percentage of Gen Y employees and the corporate and leadership roles are handled by Gen Xers and Boomers. It is the responsibility of the organization to create employee value proposition.

 Developing a robust leadership pipeline : Corporations in general face the potential threat of not possessing a robust talent pool from which future which leaders can be selected. This problem arises due to the fact that the number of people in the Gen X are not interested to take up these roles. The critical challenge here is that individuals are not willing to move into senior client manager and leadership roles. Developing the abilities of employees to take up global leadership positions : assessing expertise in specific functional or technical arenas is relatively straightforward. Determining if individuals have people skills, leadership abilities and global diversity sensibilities is difficult. It is the responsibility of the organization to develop such skills in employees. For example corporations can set up their own academy to develop and groom its employees. Key knowledge and relationships transfer : The retirement of a significant portion of the work force challenges all companies. Organizations that depend on inferred knowledge like those in customer relationships need to have transfer of knowledge and relationships. The exodus of Gen Xers from corporate life : One of the greatest threats faced by organizations is the exodus of mid-career talent. These are the people on whom the company has pinned hope for future leadership and invested heavily in. Therefore, it is necessary for organizations to develop talent management practices that create greater work/life balance. Redesigning talent management practices to attract and retain Gen Ys : The talent management practices should be such that it attracts both young and old talent. Opening avenues for boomers in their second careers : Organizations are biased towards hiring boomers, but smart companies look for ways to incorporate them into the workforce. In general a rethinking of roles and relationships are required. Overcome the rule of short term and frequent movement: Retail industry in general is known to have a disposable view of talent. Organizations need to change this view.

Organizations need to consider external as well as internal influences. Retaining employees for long periods could contribute to the success of the organization. Recruit executives who dont appreciate the challenge : The belief of business leaders that people are lined outside the door because of the company brand power is often the cause of complain among executives. Organizations need to build a talent that places emphasis on build rather than buy strategy.

Q.4 List the key elements of talent management system. Ans. Talent management includes a range of interdependent processes and
procedures that need to be properly integrated. The organization will not achieve the desired level of human capital performance if talent management processes do not operate as a unified group. The key elements of Talent Management System are explained as followed : (a) Selection Selection is the process of choosing a candidate amongst a number of probable candidates. Recruitment and retention has become a big challenge for organizations due to the continuing global talent shortage, the changing worldview of work by new generation employees entering the workforce and the ever increasing evidence that poor recruitment decisions have a direct impact on the bottom line. Recruitment process that is not merit-based and has poor reliability and validity are a burden to an organization and can ever expose the company to discrimination claims. Poor hiring choices can affect the organization in additional recruitment costs, training and orientation costs, loss of time, lost opportunity, lost revenue, loss of competitive advantage, tarnish image and reputation. It is about recruiting the right people in the right place at the right time. Organizations need to filter their attraction, recruitment and selection approaches to ensure they have the right talent on board to enable them to remain competitive. A global view that includes a diverse workforce is critical. (b) Induction and training Induction is the formal entry of the selected candidates into the organization and training is to develop their knowledge, skills and competencies by teaching with respect to the organizational requirement. Employers should not assume that new hires can cover for

themselves and will only need brief introductions and a chunk of corporate information to get them started. Although lost profits due to the training of a new hire has been estimated as 1.0-2.5% of total revenue, it is clear that this induction period is vital given that 6.3% of people leave within the first 6 months of starting in a new role, which is typically due to their induction experience. A proper induction program helps to reduce employee discomfort, improve productivity and save money. After an effective, useful and timely training experience should be the progressing development chances that support the individual in the role but the also the organization in achieving its broader objectives. Such training where possible and practical, should be in-time rather than in-case to provide training environments and materials that change to meet individual or small group demands precisely at the time when new skills are needed. (c) Capability development Customized improvement opportunities for key talent are seen as an essential component for motivation and retention of these people. In the present scenario, developing the current employees is a more cost effective and efficient means of maintaining internal talent pools rather than recruiting new people and wasting vital resources on their training. Career growth also has a major impact on job satisfaction and commitment, to an organization that relates directly to retention of dynamic employees. Both high potentials and core contributors should be given enough opportunities to develop by the internal talent management in order to maintain operational effectiveness and output. Key performers and core contributors require different growth experiences that should be modified accordingly for maximum profit. Committed leaders are required to emphasize the idea on both groups given their competing business priorities. The talent development structure adopted by an organization needs to support the talent capabilities required for the future and needs to be able to support the talent capabilities required for the future and needs to be able to blend with ongoing changes. Good leadership quality in a global and increasingly diverse workplace is a highly sort after competence and this must be embedded into any comprehensive development program. Other elements will be established by the business strategy.

(d) Performance A performance management system increases the productivity and confidence in an organization, if planned and implemented effectively. An example of the problems in performance management is the 34% of surveyed Australian organizations using appraisals had no formal performance management policy in place. The increasing number of new generation employees in the workplace adds thrust to the importance of a transparent, objective performance management process as they perform best in culture that encourages feedback. Performance management system should be visibly related to training or development and recognition or compensation systems within the organization in order to increase productivity and retention. Organizations can also defend themselves against legal action resulting from discrimination or unfair claims through use of a legitimate and fair performance management system. (e) Retention and succession Retention is the measure taken to encourage the employees to remain in the organization for longer period of time. Succession helps an organization to ensure that employees are hired and trained to fill each key position within the organization. Employee retention is an important issue for top leaders in organizations all over the world. In todays world an abundance of jobs are available in the market for a job seeker and therefore employers must compete to attract and retain the talent they need to fulfill their organizational objectives. Talent retention is necessary to good quality, customer satisfaction and operational efficiency. Typically companies prefer induct 85% of their leaders through internal placement. For example, Hewitts Top 10 Companies in the Asia Pacific develop 76% of their leaders internally while a global survey found a 30% failure rate when placing highly sought after external talent. It is evident that organizations with quality strategic improvement programs and succession management programs have greater business results. In addition, increasingly rigid labour markets make succession management a business necessity and force organizations to identify and accelerate the development of future leaders from within. The stable organizations under such pressure need to have an effective succession management policy in place, with a particular focus on the continuity of key specialists and leaders. Other key elements of talent management Besides the above four elements of talent management , some other elements are also available that help to characterize the relationship between talent management and conventional recruiting. They include :

 A focus on high impact positions : A talent management policy requires managers and HR to determine an organizations success by filling top talent in the appropriate jobs. Accountability : Talent management assigns accountability to the chief talent executive for managing the talent pool, who is responsible for results, not effort. Reward and metrics : Talent management builds support and relationship between earlier independent efforts through its common objectives, metrics and rewards. Thus, no independent effort can be considered successful unless the overall talent management effort is also successful. Balanced metrics : Talent management attracts managers attention by instituting a system of methods and rewards that ensures every executive is acknowledged and rewarded for excellence in human resource management. It simultaneously evaluates employee commitment to ensure that managers reach their productivity goals while using the appropriate organization behaviors. Business approach : The talent management approach is not taken from overhead or administration model. It is created from and replicates other successful business process models, like supply chain management, finance and lean manufacturing. Recognition of the business cycle : The talent management strategy involves identifying the different types of talent required with respect to changing business situations. Consequently, talent management requires the constant internal movement of talent in and out of jobs and business units based on current business needs and where the company is in its business cycle. Truly global : Talent management encourages attracting, retaining and developing the best talent no matter where it is. Focus on service : Flawless service is the expectation of talent management. Customer satisfaction, process speed, quality and commitment are continually measured. Anticipation : While conventional recruiting and retention tend to be reactive, talent management is forward looking. It predicts and alerts managers about upcoming problems and opportunities. It indicates managers to act before the need arises in talent management issues.

Q.5 India as nation stands out for it entrepreneurial and well educated talent base. Justify. Ans. India has a large pool of scientists, engineers and technicians. Currently
a lot of importance is given to the development of intellectual and

managerial talent in order to surge ahead internationally. India boasts of centuries old history of entrepreneurship across every industry sector. The foundation of Indian entrepreneurs is based on their social business ethics and their passionate commitment to success. The growth and development entrepreneurship in India over the ages can be traced under : Mental handicrafts have existed in society even since pre-Christian Era obviously being traded for profit. In the post-Christian era, caste based business men created kharkhanas while craftsmen formed associations called guilds to produce and sell handicrafts and other goods. Since ages, Indian handicrafts have enjoyed worldwide reputation such as Corah from Bengal, dupattas and dhotis from Ahmedabad, Chintez from Lucknow, shawls from Kashmir, metalware from Varanasi and so on. In the modern era, the first place of entrepreneurship was seen during the domination of British East India Company. A few Parsi entrepreneurs like Lowjee Nushirwan and Manjee Dhanjee built ships and produce gun powder for the company. Ranchod Lal Chotlal, a Nagar Brahmin, was the first Indian to think of setting up a textile manufacturing unit, in 1847, but failed in his attempt. He however succeeded in his second attempt in 1981. But before this credit for successfully starting a textile mill goes to another Parsi Cowasjee Nanabhoy Davar in Bombay in 1854. This was followed by Nawrosjee Wadia, who opened his textile mill in Bombay in 1880. Jamshedjee Tata established the first steel industry in Jamshedpur in 1911. This was followed by the entry of Birla family which set up a jute mill in 1919. The Swadeshi Campaign, called Mahatma Gandhi, calling for use of only Indian goods, gave the first wave for entrepreneurial activity in India. During this period, the traditional business communities like the Jains and the Vashiyas, gave up their conservative attitude and joined Paris to become industrial entrepreneurs. Post-independence, the socialist practices of the Nehru government actually helped Indian entrepreneurs by giving them protection from multinational companies. But this also prevented the Indian goods from being sold abroad. Licenses, quotas, red tapes, high taxes, low productivity, black market, monopolies and so on, marked the first 40 years of Indian Independence. Despite all these, India saw the emergence of two well-known entrepreneurs of those times, Dirubhai Ambani and Kaesanbhai Patel who overcame many obstacles to sow the needs of their empires.

 When the companys economy finally opened up in 1991, entrepreneurs of the likes of Azim Premji, N.R. Narayan Murthy and Subhash Chandra came up on the scene. And as we move on to the 21st century, there is no stopping of the Indian entrepreneurs from taking the world.

Q.6 What is the role of an HR in talent management? Ans.

Roles of a HR in talent management

Getting the best employees

Paying employees and providing benefits

Training employees

Ensuring compliance to regulations

Ensuring safe work environments

Sustaining highperforming employees

Talent management involves identifying the right talents and developing those talents into personnel competencies, which is required by the organization to have highly efficient and high performance human capital. In recent years, as the demographics of workforces have changed, organizations of all size consider talent management as a crucial

activity. The importance laid on talent management has increased the pressure on HR department in an organization. The HR acts as a backbone for Talent Management. The HR is responsible for the training and development activities of an employee in an organization. When it comes to talent management the HRs role is concerned with enhancing the development, attraction and retention of their employees. The HR is responsible to establish talent management initiatives. In an organization, apart from transactions and administrations, the HR is burdened to take more responsibility to become a talent expert. The important areas of talent management that forms a part of HR planning are : Providing value for individuals by creating and maintaining an organizational culture. Identify the needs of an organization. Training and developing employees to meet the organizational needs. Recruiting talented people, who are capable of providing further job needs. Conducting and managing HR activities to support to support talent the development of talent in an organization. It is the responsibility of the HR to view talent assets of an employee at an individual level. This helps the HR to know what skills, experience and training each employee brings to the table or needs to acquire. For HR to evaluate the existing skill sets in the industry, they first need to understand how to go about filling current and future skill gaps. This is possible if talent is viewed enterprise-wide at an aggregate level. The crucial role of an HR is to attract talented personnel. These days the improvement in the economy and retirement of Baby Boomer creates competition for newer talented personnel. As majority of the employees in an organization look out for new and better employment opportunities, the HR is responsible for retaining the employees. This can be done by following successful employee retention strategies. The HR are responsible for providing opportunities for employees who prefer to develop their skills and talent and accept challenging work along with compensation.

The employees prefer to grow in their career. This can be done by the HR by organizing programs for professional and entry-to-mid-level managers.