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PERFORMANCE MANAGEMENT FOR MI SUCCESS

Super Six Approach

MI of today is constantly searching for the star performers who can

produce the best results for the MI, The concept of performance man-agement gained momentum after the AICTE rules and regulation withthe development in and expansion of management education troughthe mushroom growth of MIs. Performance management in MI is a logi-cal process by which MI involves its Teachers and non teachers inimproving organizational effectiveness. Since performancemanagement of any MI is a logical sequential process as guided byAICTE and the University, it should be planned, designed andimplemented in a systematic and objective manner. A snag at anystage may damage the basic principle of the MI system. Commonerrors occur during the planning of the performance management

system of MI by neglecting some vital ingredients which otherwiseought to have been included. Some Institutions, as it is observed in theexperience survey are not being able to manage the performancemanagement system in a professional manner as required by theAICTE. Even some other MI may not properly utilize the data collected,but merely conducting the appraisals and other evaluations as routineannual affair to meet the documentary requirements of LIC of theuniversity or AICTE. To avoid the major pitfalls and to enjoy the realtaste of this novel and versatile system, MIs need to concentrate onthe six major managerial dimension of the performance managementsystem which leads to six behavioral dimensions. According toArmstrong (1994), "Performance management is a process forestablishing shared understanding about what is to be achieved and anapproach to managing and developing people in a way which increasesthe probability that will be achieved in the short and long term."

From this definition we could understand for MI that its managementsystem is development -oriented that examines the past achievementswith future requirements for organizational success and for which theAICTE/university provides guidelines. The managerial variablesdirected by the AICTE for effective performance management in MIare covered under the following segment of MI administration:-

1. Organization and Governance

2. Financial Resources, Allocation and Utilization

3. Physical Resources (Central Facilities)

4. Human Resources: Faculty And Staff


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5. Students Development & Relations

6. Teaching-Learning Processes

7. Supplementary Processes

8. Research & Development and Interaction Effort

In order to facilitate the various functions in above segments of MIadministration the following tools are required to be maneuvered asper AICTE/University guidelines or statutes given below as anillustration :-

1. Reward /compensation Management,:- Payment of salaries asper sixth pay commission

2. HRD:- by introducing the faculty development programme

3. Team Management:-

4. Recruitment and Selection :- Observing the university/Govt.selection norms with due weightage to reservation policies

5. HR Inventory: - Planning, forecasting, and recordingperformance, achievements etc.

6. Appraisal :- Annual performance report top be endorsed by theemployees and endorsed by the Director

7. Feedback : teaching feed back from the students

The organizational aspects covered under effective performancemanagement are Organizational Culture, Learning and Collaboration,Communication, Motivation, Organizational Structure, OrganizationalChange and Development. Each of the managerial aspects will haveenormous effects on the organizational aspects.

We can see the correlation between the six major managerial aspectsthat lead to six organizational aspects as depicted in the Figure.

Though there are numerous other managerial aspects and decisionsleading to different organizational behavior, we will just look in to sixmajor dimensions in detail.


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Howard Management and Motivation

As we all know that there is a clear i iii, direct and transparent relation-ship between performance management and motivation as the rewardsystem is based on the performance of the employee and the organiza-

tion, which is the major motivating factor in organizational settings aspostulated in all motivational theories either as need satisfaction or asexpectancy and equity.

Hence it is for the management to reward the employees based on theperformance to motivate them to work further. But undermining thisbasic principle, many organizations either may not link the rewardswith the performance or could not match the rewards with theperformance in a proper manner, leading to organizational failure andconflict. By which they could not attract, maintain and retain talent tomeet the business requirements and competition. Since the reward

system of a company reflects the core philosophy of the organization,an organization should have a performance management systemwhich will provide a broad framework for its rewards management andto motivate its workforce. Hence the organization needs to have thepay structure and compensation management attractive enough atleast: to retain the talent. And the platform to carry out this task iscertainly performance management system.

Appraisal Feedback and Communication

Feedback from employees is a major channel of upwardcommunication in organizations nowadays. Not only feedback is acommunication mechanism, but a review program to plan for thefuture by forecast. For this, the organizations must open up as muchcommunication channels as possible to encourage the employees tofreely air their views, thus avoiding conflict and misunderstanding infuture and can help build the organizational learning and collaboration.IT majors such as Infosys and Wipro could flourish even at the time of severe setbacks to this sector as they follow open channels of communication. Among the three major qualities required for asuccessful manager such as motivation, leadership andcommunication, communication is the basis for the other two qualities.If a manger is a good communicator, he may able to motivate and leadthe organization to the desired position. Not only for the managers, butalso to all employees working in an organization it is thecommunication that links them in their structure. Performance man-agement with feedback mechanism will help tap this potential for orga-nizational success. Hence it is quite evident that an effective perfor-mance management system helps the organizations in terms of thecommunication to achieve its mission.


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HRD and Learning and Collaboration

Though HRD seems to be a development process no development cantake place without learning. During the course of learning theemployees may have the opportunity to collaborate with the system

and other employees of the organization. Hence the HRD programsshould be designed in such a manner to instill I be habit of both learn-ing and collaborations among the participants of the program.

The basic data to design the right HRD program can be available fromthe performance management records. We can identify the standardsand actual performance of the employees and the gap between thetraining and development needs of the employees. Since not all theneeds of the employees are job-oriented for the desired results, someof them may be of behavioral in nature. Hence proper care should betaken by the management to identify the proper training needs of dif-

ferent nature to develop skill, knowledge and behavior of the em-ployees to have a concerted effort for organizational success. HRDcenter, must be viewed not only as the learning and development cen-tet but also as the collaboration center for having better understandingof the business philosophy of the organization. Once again it is theperformance management that decides the competence and compe-tency requirements of the organization.

Team Management and Organizational Culture

Team management starts with the forming of the teams. Individual andorganizational culture will play a major role in the formation andfunctioning of the team in any organization. Hence before entering intothe team style of management, one has better understand that theculture prevails in organization. For this, the organizations need to con-duct attitude surveys among the employees about their job in orga-nization. Once you start forming the teams after conducting this ex-ercise, it will definitely produce desired results. The Japanese compa-nies are successful in team environment because they conduct attitudesurveys before they form any team. Hence organizations whileconducting performance evaluation they should include the aspect of attitude in their mechanism under competency analysis to get the vitalinformation for the team formation and its management. As most of the business now carried out under the team environment, theorganizations should give priority for this aspect to avoid any mishap inthe future.

Self-managed work teams are quite possible only by having thisinformation on hand. Hence the organization should conduct compe-tency mapping and performance appraisal simultaneously. Obviouslythe performance management is the cornerstone for the team man-


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agement in organizations. It is advisable for the organization not tomiss this opportunity for them in their team management.

Recruitment and Selection and Organizational Change andDevelopment

Like individuals, it is imperative for organizations also to keep apacewith the changes in the business environment whether external or in-ternal. To make necessary changes in the organizational structure andother developments such as job redesign, job enrichment and job ro-tation need validated data such as HR Inventory, Human Capital andCompetency Mapping, etc. All of which might be included in theperformance management system to make effect the necessarychanges in the organization for its development. Hence therecruitment and selection in the organization must be done only on thebasis of the requirements through the data collected by the

performance management system. As the right selection of theworkforce will give half success, it is for the organization to selectworkforce by matching the person fit better with the job and orga-nization and its culture, which can only be possible if the perfect per-formance system is practiced in the organization.

Latest change management concepts like job redesign, job enlargemerit, Job enrichment, job rotation, etc., can he done only on the basisoi the information provided by the performance management system. Idecisions regarding promotions and transfers can also be undertakenon the basis of the performance of the employees which also had itsown impact on the recruitment and selection process and on theorganizational change management. It is now understood that theorganization's human capital and change management depends on thecompetency requirements which is a part of the performancemanagement.

Mil Inventory and Leadership

So far, organizations make use of the IIR Inventory mostly for HumanResource Planning and rarely for Human Capital Assessment. Vitalinformation concealed with HR Inventory so far is succession planningto identify the future leaders. By properly conducting CompetencyMapping of the workforce, we can get accurate talent and its potentialfor the future challenges. By conducting succession planning we canidentify and nurture talent for tomorrows leadership.

Jack Welch, CEO of GE, has set a role model in his period that hasexcelled his organization not only in his tenure but also after him. Hehas conducted periodic and systematic evaluation of his employeesand imparted leadership skills that lead the business on several fronts


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and in different location for years to come. He himself took classes forthe future leaders at Crotonville by founding the world's first corporateuniversity. Jack Welch later has emphasized that succession planning isthe main reason for the enduring success of GE against the stiff com-petition from Japanese companies. He has blended business strategy

with the organizational process and practice which producesresounding success to his business empire even after his tenure asCEO. It was only the GE which was not affected by the Japanesecompetitors not only in the US but in other parts of the world so far.

This is one of the core strategies Jack Welch has followed in his successstory as CEO of GE. Infosys has even institutionalized leadershiptraining program in its own institute at Mysore named as ILI (InfosysLeadership Institute) to nurture the future leaders. We could sec thesuccess story of the Infosys even after Narayana Murthy's departure.Hence it is quite true that the organizations can make use of the datacollected in the performance management system for succession

planning for enduring business success.Conclusion

High performing organizations are built around elements such as in-novation, values, purpose, leadership and trust. However, the coreelement which acts as the driving force is "People" working in the or-ganization. Human resource is the only resource which can give valueto other resources of the organization. Barring human beings everyorganization of the same arena will be one and the same. It is the"people" who are leading and producing results. And simply put, super

six approach of performance management is a key to organizationalsuccess # .

BRANDINGThe HR Way

Branding has been around for ages as a means of differentiating thegoods of one producer from another. According to American MarketingAssociation, brand has been defined as a "name, term, sign, symbol, ordesign, or a combination of them, intended to identify the goods andservices of one seller or group of sellers and to differentiate them fromthose of the competitors.

Today's world is very brand con-sc. ions and the need to create brand

# Reference # 12M-2009-04-11-01


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awareness is vital for an organization's survival. We start our day witha morning jog in Reebok athletic shoes; we eat Maggie noodles; we goto work dressed in a Reid & Taylor suit in a new Innova car, and stopon the way for having a cup of coffee at Cafe Coffee Day. What dothese statements signify? It does not imply just a pair of shoes, a

breakfast, clothes or a car. Rut it shows the importance of the conceptof branding in the minds of t he-people. These brands are chosen by anindividual as they not only take care of the basic needs, but alsodeliver the promises to the individual customers. These brands simplifydecision-making and communicate the values they create to the cus-tomers.

The same strategy which is applicable to products is also applicable toHR Department which can be called "MR Branding". Conventionally thecorporate leaders have basically concentrated on areas such asmarketing and sales, product development, etc. But of [ate more and

more eyes are shifting towards the IIR department. Traditionallybranding in IIR was limited to employment function. But now IIRbranding is a new concept which has evinced a lot of interest. Thevarious .sub-systems of the MR department in the organization muststrive to create a Unique Selling Proposition (MSP) o( the company sothat the organization can glow in a big way in the long run.

In today's knowledge-driven economy, MR plays a strategic role inbringing in the right people into the right organization. In other words,MR is the first face of an organization for a new prospective employee.Market research has revealed that strong brands contribute to strong

competitive presence. In this way, it has been understood that HRbranding has become important for the organization to attract, retainand motivate people to enhance the organization's growth.

Today's organizations are more complex and follow an open systempolicy. The organizations which have been successful have the bestpeople strategies and the best business strategies. It is important toalign these two strategies to create a favorable work climate. The HRbrand has to be aligned congruently with what the company delivers tothe employee, customer, public and shareholder.

What is HR Brand?

"The package of functional, economical and psychological benefitsprovided by the employment and identified with the employing com-pany. The following aspects can be highlighted under each:

Functional benefits would include useful job-related activitieswhich impart technical skills.


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Economical benefits would includematerialistic or monetaryrewards.

Psychological benefits would includerecognition, sense of belongingness, purpose of stay in the organization, etc." (Ambler

and Barrow, 1997). The combination of these factors differentiates one employer fromanother and helps in shaping the perceptions of the past, present andfuture employees. Customers differentiate firms by their products andsimilarly employees differentiate their jobs by HR branding. HRbranding has also been called employer branding.

Evolution of HR as a "Brand"

The Figure shows four stages:

Stage 1

Branding as a concept was well-defined, but played a major role in pro-tecting the logo, or name of a particular product service or business.

The HR department played a very little or no role in supporting thebrand.

Stage 2

Later the companies had a master brand or logo which gave moreemhasis to vision and values of the enterprise. HR's role was to be sup-

portive to individual brands.

Stage 3

Companies could now capitalize on the vision and values of a strongcorporate brand to bring about organizational change, such as inbringing together units through mergers. HR's role had enhanced asthey became the key players in aligning these change programs.

Stage 4

The corporate brand is currently the centerpiece of the overall strategywith HR holding a pivotal role in facilitating employees to act as 'brandambassadors'.

The brand ambassadors are the ones who will carry the name of theorganization to the external customers. They talk for the qualitypractices of the HR department.

Brand as a System


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Brand can be considered a system. 1 he brand system has four compo-nents which are inextricably tied and interdependent. The four com-ponents can be highlighted as follows:

Offer.

Identity.

Experience.

Image.

Otter

This is what an organization can give to its customers both internal andexternal customers. It is the service or a group of services that thebrand renders to its customers. It should he in simple terms so that itwould be easy to communicate the offer to the target segment. Hencethe offer should be clearly described tor a brand to be successful. Inthe context of HR, offer could be visualized as the followingCompen-sation package, training programs, employee assistance programs, agood working environment, etc.

Identity

Brand identity implies how a customer actually perceives a brand or acompany. Identity assists in attracting attention, setting expectationsand making an impression. Names, logos, slogans, advertising,

packaging, vision and mission statement of the HR department makeup the brand identity. This provides information to employees to deter-mine an impression on the HR department. For example, when wemeet an employee from Infosys he says he is an "Infosion" and an em-ployee of Wipro says, he is a "Wiproite". This suggests the way theinternal employees associate themselves with the organization andidentify themselves with the organization. This is mainly due to the HRpolicies and procedures which have kept the employees satisfaction.Satisfied employees are an asset to the organization.

As the functions of HR are spreading across the organization, theservices rendered by the HR department to the employees can betreated as the same thing as selling services to the external customer.

There are different elements which help an employee identify and dif-ferentiate an organization from the other which is called brandelement. Hence the HR department must take care of its brandidentity.


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Image

Brand image is what people think of the brand. The internal customersare the people who carry the brand image forward. This is primarilybased on the interactions with the HR department. The first interaction

with the organization helps in creating a brand image for theorganization. For example, the way the secretary interacts with theprospective employee, the hospitality of the organization, etc., canhelp them bridge the gap between brand image and brand identity.

Experience

Brand experience is the aggregate of all the perceptions that resultfrom the interactions with a brand. But all the experiences are notequal. Employees assign different levels of importance to differentfacets of their experience. Favorable experiences create positive brandexperience and vice versa.

Brand Building Blocks

Every company, big or small, has an image. The labor market and theemployees judge the organization based on their image. And the mostsuccessful companies have cohesive and compelling brand identities.

The building blocks to successful business are not just a quality prod-uct, a nice logo, a good market share, etc. The market has plenty of that. What the people are looking for is a reason to join X Companyinstead of Y Company. This is where branding comes in. A good brandis one that lasts through the ever-changing trends, is molded from thecompany's core values.

In building strong brands, "creating a brand identity is more thanfinding out what employees say they want. It must also reflect the souland vision of the brand, what it hopes to achieve."

4 Ps of HR

Marketing has developed the four PsProduct, Price, Place, and Pro-motion. This has been enhanced to seven Ps in the current scenario. Inthe same way, if we can develop 4 Ps for the FIRPeople,

Package/Pay, Performance and Prospects. A brand is a part of aproduct which helps in differentiating the products in one way or theother. These differences may be rational and tangiblerelated to theperformance of the prod

net or more symbolic, emotional and intangible-related to what thebrand represents. Hence if this can be applied to an organization,tangible issues of the organization could be the package and


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performance of the company and the intangible issues could be thepeople and prospects.

People

These are the most valuable assets of any enterprise. They are theonly assets who do not depreciate over a period of time, butappreciate with better training and exposure. The concept of peoplewould include both the internal and the external customers. Thechallenge faced while structuring the brand is to establish asustainable strong partnership with both internal and externalcustomers. The ability to see the organization with a broader and afuller view is more important, based on the interactions of HR depart-ment with both internal and external customers.

The internal customers in this context would mean the employees whoare already working in the organization and external customers wouldmean the people who are residing outside the organization. Theexternal customers are the group; with whom the organization has in-direct interaction whereas they have direct interaction with the internalcustomers. HR department should take decisions that would notdiscourage employees from being aligned to the brand behavior.Initially we have to build a brand internally that is possible by makinghigh participation of internal customers in benefit plans, trainingprograms and company functions. Performance plans, compensationprograms, and policies and procedures, employee assistance pro-grams, meditation services lead to higher satisfaction ratings on em-ployee attitude surveys.

If an organization wants its brand to be perceived as more strategic,more valuable, more reliable, it needs to think about what internal andexternal customers expect from it, how well it can deliver, and howwell it can progress. This cannot be achieved by fancy packages,catchy slogans and name changes, either. This is achieved by thinkinglike a business with a product to be developed, marketed and reliablydelivered to customers who want your services.

The brand 'HR' can be well built by concentrating on the factors, whichdirectly or indirectly influence the expectations of an employee, whichis both the employment and psychological contract of the employeewith the organization. Employment contract includes all those tangibleitems which are extrinsic, like the actual salary or the CTC, the workinghours, the number of leaves, etc. On the other hand, every employeewill establish an unwritten contract called psychological contract. Thisincludes the working conditions, the superior-subordinate relationship,the general working environment, etc. The brand name of anorganization can be identified with both the employment and the


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psychological contract. Most of the times the organization satisfies theemployee's employment contract as it is in black

and white. But if they are not able to satisfy their psychological con-tract, then there would be a problem of retaining the employees. The

brand name of the company would also be harmed to some extent.Package/Pay

A competitive package plays a very important role in maintaining thebrand HR. It is of prime importance to take care of the compensationwithin the organizations to establish equity among the employees.Equity embraces the concept of fairness. Pay equity refers to anemployee's perception that the compensation received is equal to thevalue of the work performed. A branded organization would generallyestablish both internal and external equity. Compensation policieswould be internally equitable when the employees believe that thewage rates for their jobs approximate the job's worth to the or-ganization. Perceptions of external pay equity exist when the organiza-tion is paying wages that are relatively equal to what the other em-ployers are paying for similar types of work. The term "pay for perfor-mance" has been extensively used in today's organizations. It refers toa wide range of compensation options, including merit-based pay,bonuses, salary, perks and team and group incentives.

Performance

This factor can be viewed in two dimensions. First dimension is

Actual performance of the company and the second is performancemanagement. The actual performance of the company can be judgedform the balance sheet. If the profit of the organization is in theincreasing trend, then it can he inferred that the performance of theorganization is good. Performance management is the process of creating a work environment in which people can perform to the bestof their abilities. The actual performance of the organization is anextrinsic variable whereas performance management is an intrinsicvariable. Both these variables play an important role in creating abrand name for the organization.

Performance management leads to continuous improvement andenhanced learning. It creates team environment and helps in improv-ing the organization as a whole. Hence performance management canfocus on the performance of the organization, a department, processesto build a product or service, employees, etc. The four key benefits of aperformance management are:


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Focuses on results, rather than behaviors and activities.

Aligns organizational activities and processes to the goals of theorganization.

Cultivates a system-wide, long-term view of the organization. Produces meaningful measure ments.

Prospects

Ibis component of HR discusses the need for career development andadvancement within the organization. Every employer who enters theorganization must have a clarity of the career progression available forhis/her growth. The job progressions serve as a basis for developingcareer pathsthe lines of advancement within the organization forindividuals. Most of the organizations prepare interesting andattractive brochures to describe the career paths that are available tothe employees. General Motors has prepared a career developmentguide that groups jobs by fields of work such as engineering,manufacturing, communications, data processing, financial, HR, andscientific. These categories help the employees in ascertaining thecareer possibilities in the organization.

A career plateau is a situation in which for either organizational orpersonal reasons the probability of moving up the career ladder is low.

This is a situation when the employees may tend to leave the organiza-tion. Branded organizations help individuals cope with plateaus byproviding opportunities for lateral growth when opportunities for ad-vancement exist. Career management is a joint responsibility of boththe employer and the employee. Providing promising career devel-opment initiatives will help organization build a good HR brand.

"High Performance" HRM Practices

The following are the high Performance HRM Practices which can helpin building a consistent HR brand.

Highly selective hiring and focus on attitudes and cultural fit.

Extensive training and skill development.

Self-managed teams and decentralization of decision-making.

Equal importance to both technical as well as conceptual skills.

Reduction of status distinctions and wage inequality.


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Employment security.

Comparatively a better compensation package.

Organizational performance and employee ownership.

Transparency in both financial and general performance of theorganization.

Benefits of Building a Brand for HR Department

It improves credibility and strengthens the bonds of trustbetween HR department and the employees.

It acts as a catalyst for pushing change.

It is shorthand communication for getting the message out.

It helps in recruitment and retention of the best possible em-ployee.

It enhances the performance and commitment of the employees.

It helps in maintaining brand integrity.

It aligns the individuals' goals with the business strategy.

Conclusion

Why do we go for brands? The answer is simplereliability. It's thepopular brands which provide this reliability. Attracting knowledgeworkers has become a Herculean task for the HR department. Only thebest practices and the best environment can assure their interest inworking for an organization. The practices and policies of the HR de-partment and its outlook create a certain brand for the HR. The betterthe brand, the better are the chances that an organization can attractthe best talent. *

harder to learn. There are educational opportunities for executives. There are no "crash courses" in learning for a new group of people- it just takes time.

You may find the person you have promoted, progressing much fasterthan an external recruit.* Reference* 12M-2009-04-12-01


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Designing a leadership development program The belief that leaderswere born with their qualities is slowly getting eroded and a positiverealization has set in, according to which, development of leadershipskills is possible through correct training. This has led several businessand educational organizations to create leadership development

programs. Although it is gratifying to know that even if you do notpossess good leadership skills, you may be able to develop them; theprocess itself is not easy. It requires focus, practice and patience, itcannot be devejopcd in a day. It is almost like learning a new form of dance or learning a new musical instrument which cannot be mastereduntil and unless it is practiced thoroughly often starting with injuries orbreaking of strings.

Some of the thoughts that need to put across while developingprograms on leadership development are:

1) Leadership development needs to be viewed as a process not an

event. Within this lifelong process, intensive periods of time(typically 6-12 months) need to be devoted to improving specificleadership behaviors. Throughout this period leaders should beengaged in an integrated set of learning experiences such as 360degree assessment, experiential skill development programs,individual goal setting and development planning, on-the-joblearning projects, reflective journaling, mentoring, professionalreading and reflective conversations.

2) Leadership development should he needs not wants driven.Given the difficulty in successfully developing new leadershiphabits, it is important to focus on those aspects of leadershipwhere behavioral change would have the highest amount of impact. At an individual level this involves some form of assessment to identify leadership strengths and developmentalneeds, and then comparing these developmental needs to theleadership behaviors that are most important to achievingresults within that leader's context. This process culminates inthe setting of 1 -3 developmental goals that the individual leaderseeks to achieve within a 6-12 month period. At a group andorganizational level, collective assessment results, coupled witha strategic needs analysis can be used to identify key commonneeds.

3) A common and effective way to kick start the subsequentlearning journey is through an experiential learning program or aset of experiential skill development programs. These programsmay provide the time and space for leaders to digest their


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assessment results, set their development goals and developtheir learning plan. They should also include opportunities forparticipants to be presented with goal relevant, evidence basedand practical leadership skill models along with opportunities topractice these new skills within simulated environments.

4) Each participant should be engaged in goal specific on-the-joblearning projects. These are real workplace projects whichrequire the person to effectively use goal related behaviors forthe project to succeed.

5) Sustained behavioral change is far more likely if, throughout the6-12 month learning journey, leaders engage in reflectivelearning practices. These include reflective journaling andreflective coaching conversations.

6) Mentoring can also play an important supporting role over aleader's 6-12 month learning journey. Rather than seeking out amentor based on seniority or overall leadership prowess, leadersshould find mentors who are effective within their specific goalarea.

7) Finally, leaders should be held accountable for achieving theirgoals and making behavioral changes within their workplace.

Leadership development programs cannot rely solely on class roomlearning, leadership cannot he taught but must be experienced. Youcan teach the values of strong leadership and share examples of successful leaders and their actions. The individual developing leaderneeds to be able to create his or her own plan to closing their uniquegaps and growing their unique skills. Leadership

India Leadership Strategy 2008

Ail critical heads of businesses development is not about teaching howto fill-in neither' a daily task list nor it is about reconcilingexpenditures. Leadership development is about helping peoplebecome inspired teams and individuals to create the future while stillcompleting the day-to-day activities of your business.

The leadership development process helps leaders understand thatthey are accountable for the environment that they create andwhether the environment is based on trust or lack of it. The processprovides them with knowledge, skills and applications that they needto create an environment based on trust and personal responsibility.

Leadership development programs may not always be a success, there


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may be some failures in way of developing leaders but companies thatmake leadership development as a core business process canovercome these failures by preparing the individuals and teams theywill need to take their organizations to greater heights.

Agilent Technologies India, is one of the successful examples in theimplementation of leadership development which is a high priority inthe organization.

The India Leadership Strategy program at Agilent is a 4-Tier strategyfor Leadership development in the country. Leaders and individualcontributors are chosen from across businesses and locations tobecome part of one of the Tiers of the India Leadership Strategy. Eachof the 'Tiers' has a unique leadership development roadmap behind it,through which these individuals are taken in the year.

The overall objective of India Leadership Strategy is to strengthen anddeepen the leadership bench in India by accelerating the developmentof today's and tomorrow's leaders.

The participants of India Leadership Strategy are not segregated intodifferent 'Tiers' based on their level, but based on the 'criticality' of therole they perform in Agilent India.

Given below is the India Leadership Strategy, Tier I| roadmap for 2008as an example to how a roadmap within a Tier looks like. All roadmapsarc a good mix of different learning experiences such as on-the-jobexperience, 360 surveys, mentoring programs, classroom training andexecutive coaching etc.

To conclude we can say that developing / nurturing leaders is the needof the day in today's organizations to build up leadershipcompetencies. There is no right or wrong way to do things; it is thecurrent scenario of your organization (business / growth / industry)which will make either growing from within or looking out externally afavorable proposition.

'The single biggest way to impact an organization is to focus onleadership development. There is almost no limit to the potential of anorganization that recruits good people, raises them up as leaders andcontinually develops them.

Padma Kinger is a project manager with The Great Place In WorkInstitute India. She can be reached at [email protected] expressed in personal. For more information on participating inthe Economic limes an reat place to Work Institute's Indias Best Companies to Work For 2009 contact Basuri Dutta at


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[email protected] or at 09920866406


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Most business authorities believe that Talent Management (TM) hasemerged as an important global business challenge. In developedeconomies, employers anticipate many experienced workers to retire,creating a vacuum of talent that will not be easy to fill; in developingeconomies, talent needs are fueled by explosive business expansion

and pending waves of retirements. Typically, TM has focused onattracting, developing and retaining talented people. But that is notenough for the future. Organizations will need next generation talentmanagement.

Manae

ew business authorities question that Talent Management (TM) isa key global challenge (Goretsky and Pettry, 2007; Rowh, 2007;and Shadovitz, 2007). Indeed, "nearly three-quarters of the 413

US human resources professionals queried for the 2008 Top Five Total

Rewards Priorities Survey, conducted by Deloitte Consulting and theInternational Society of Certified Employee Benefit Specialists(ISCEBS), cited talent as their top concern" (Talent shortage,' 2008). Indeveloped economies, TM commands attention due to aging workforcethat is expected to retire at any moment. In developing economies, TMgenerates interest due to explosive business growth, aging workforce,and widespread hijacking of talent across national borders.

F

While TM is sometimes a term in search of a meaning, traditional talentmanagement is usually understood to mean systematic efforts torecruit, develop and retain highly productive and promotable people(Rothwell and Kazanas, 2004). But the needs of businesses really gowell beyond that. There is thus a need to think beyond traditionaltalent management to Next Generation Talent Management (NGTM).

What model can help practitioners conceptualize

NGTM? How can practitioners get started in implementing NGTM? Thisarticle addresses these key' questions.

What Model Can Help Practitioners Conceptualize NGTM?

All best practice approaches to talent management share a commonelement: they are guided by a strategic model that helps practitionersintegrate, and communicate to stakeholders, how all the individualefforts fit together systematically. The NGTM goes beyond the mereconsideration of identifying, developing and retaining productive andpromotable people. It includes considering how the work is performed(which will change performance and promotability requirements),


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inventorying in-house experts (known as high professionals),considering ethics and values as well as performance, preparing for thetransfer of specialized knowledge, and preparing for the transfer of social networks. The NGTM is often integrated with a career planningprogram in which individuals are challenged to clarify their future life/

career goals and identify their own i developmental needs to meettheir I career goals (Rothwell, Jackson, j Knight, Lindholm, 2005).

See Exhibit 1 for a model that delineates next generation talentmanagement. The steps of the model are described below. Andenacting a leadership role in NGTM is one strategic choice for an HRdepartment that has undergone successful HR transformation(Rothwell, Prescott and Taylor, 2008).

Step 1: Get Commitment, Clarify Roies and Goals, and Build

Accountabilities

No TM effort can thrive unless it enjoys the full commitment of top,middle and lower-level managers. For that reason, securingandsustaining manage m ent commitment is the essential first step.Managers must do more than pay lip service to TM. They mustdemonstrate efforts to support it every day through their actions. Theymust devote personal time to it.

Each key group of stakeholders in the organizationtop managers,middle managers, first-line managers and workershas a roles to playin the TM effort. These roles must be clarified and communicated.Further, individuals must he held accountable for carrying out theirroles and getting results. One way to do that is to build talentacquisition! | development and retention directly into the KeyPerformance Indicators (KPIs) of each manager. A second way is toreward people for'; achieviflg measurable talent management goals.

(TM efforts may, of course, have many goals. These must be clarifiedand prioritized. Managers must agree on them so that the TM does nottry to be all things to all people.

Typical TM goals may include the following: , . . , *,,

Preparing sufficiently well- *"* qualified replacements before keyleaders retire.

Preparing sufficient numbers of well-qualified people to supportbusiness expansion.

Recruiting high potentials from outside the organization.


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Developing high potentials inside the organization.

Role-modeling TM efforts by developing self and others.

Of course, many such goals may exist. The goals should be formulated

based on business needs and should be made measurable.Step 2: Clarify What Work People Do, What People Successfully Do theWork, and Who Possesses Special Knowledge and Special SocialRelationships .

It is not possible to implement an effective TM program if it is not clearwhat work people do and what kind of people are needed to do thework. Hence, it is necessary to update job descriptions, which describethe work that people do, and formulate competency models, whichdescribe the successful people who do the work. Job descriptions must,of course, be tailored to meet the unique needs of the organization.

The same principle also applies to competency models, which areinfluenced by the corporate culture.

One way that organizational leaders can influence the organization'stalent requirements is by changing how the work is done. If work isoutsourced, insourced, simplified, process-improved or otherwisechanged, then the competencies required to do the work is changed.Hence, it is possible to change what competencies are needed toaccomplish organizational goals by changing who does the work andhow they do it.

The NGTM goes beyond traditional TM by adding other elements aswell. It pinpoints who. possesses special knowledge, such asinstitutional memory or special proprietary knowledge of the business.

That issue is Usually understood to refer to the so-called knowledgetransfer problem. Efforts to solve the problem center around technicalsuccession planning (Rothwell and Poduch, 2004) and usually requirepractical solutions (See Rothwell, 2004).

When experienced people retire or otherwise leave an organization,they also take with them the social relationships that they havecultivated over the years. These relationships have practical value,since customers, suppliers, distributors and other key organizationalstakeholders have usually developed trusting relationships in workingwith individuals in organizations. When those individuals leave, thestakeholders are necessarily sure they can trust the successors. Thereis thus need to plan for social relationship succession (Rothwell 2007).

Step 3: Evaluate Present Performance


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Performance management is essential to any TM program. Whileindividuals should not be promoted solely because they are performingwell in their present jobs, it is also true that they should not bepromoted if they are failing in their current jobs. Effective performancemanagement programs should measure both results (such as Key

Performance Indicators (KPIs) and the behaviors linked to the essentialto job success.

Step 4: Recruit and Select Appropriate People from Inside andOutside the Organization

There are two ways to secure talentdevelop it from inside theorganization or recruit it from outside. It is thus essential to thinkcreatively to outcompete other organizations in recruiting talent. At thesame time, most organizational leaders should review their job postingand other internal recruitment programs to ensure that the best

qualified people are being recruited for each vacancy.(In some organizations, managers hoard talent.)

Selection methods sho,uld.also be_examined. On what basis arepeople being chosen? Are the approaches based on the competenciesessential to job success? Or are other and perhaps less performance-oriented, criteria being used in selection? A trend in selection is to usemultiple methods to judge the suitability of job applicants anddemonstrate the competencies linked to success.

A growing issue is an organization's ability to attract, develop andretainjpeople who are beyond traditional retirement ages (Rothwell,Sterns, Spokus, and Reaser, 2008). There are many reasons whyretirees may be attractive. One is that they need less training to dotheir jobs and be productive. Another is that they can help to providecoachingand even executive coaching-r-to break in successors orless experienced workers.

Step 5: Formulate Future Talent


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Step 6: Assess Individual Potential for Promotion andIndividual Values and Ethics

Assessing individual potential is all about determining if people canperform at higher responsibility levels. It is commonly called potential

assessment (Rothwell, 2005b). Good performers at one levelasmeasured by systematic performance managementwill notnecessarily perform well at higher levels of responsibility becausedifferent competencies are required. Common approaches to assessingpotential include manager nominations, multi-rater assessments,psychological tests,, assessment centers, realistic job tryouts, andwork samples. While potential assessment usually focuses oncomparing individuals to the competencies required at higher levels of responsibility, recent thinking has suggested that organizationalleaders should also measure individuals against corporate values andcorporate codes of ethical conduct.

Step 7: Inventory Existing Talent

How quickly and effectively can an organization marshal its talent in acrisis? Finding talent is often done informally by asking managers. Butthat is not necessarily an effective, or speedy, approach. And largeorganizations face a particular challenge because there are so manypeople and each individual may possess unique talents and may eyenbe a high professional in his or her own right. How easy is it to findtalent when it is needed? Organizational leaders should thus establishcompetency inventories based on the problems faced by theorganization, to catalog and find talent quicker. Time is a strategicissue and finding talent quickly can make the difference betweencompetitive successor failure.

Step 8: Plan for Individual Development

How are individuals groomed for higher levels of responsibility? Themost common way is to establish Individual Development Plans (IDPs)to narrow developmental gaps between what competencies peoplemust possess to be qualified for promotion and what competenciesthey presently possess. Many organizations have established LearningManagement Systems (LMSs) that make it easy for individuals topinpoint appropriate methods to build their competencies. Typically,IDPs indicate what competencies people need to develop, how they willdo it, what resources they will use to do it, and how their learning willbe measured or otherwise assessed.

Some approaches to developing individuals may be group-oriented,such as in-house leadership development programs (Rothwell &Kazanas, 1999). Others may be hands-on in which individuals are given


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specific action learning projects that build their competencies whileindividuals are learning from others (Rothwell, 1999). Still others canbe individualized and may include on-the-job learning or on-the-jobcoaching.

Step 9: Systematically Retain People and Transfer Knowledgeand Social Relationships

Few organizations have systematic retention programs that are gearedto keeping the best people. Exit interviews are just not enough(Rothwell, 2005a). More often, retention is handled on a case-by- casebasis. Unfortunately, such ad hoc approaches usually result in treatingsome people differently from othersthereby creating ill-will andeventually prompting more turnover. What is needed is a consistentorganizational approach to retention that makes use of best practices

in retention systematically (Rothwell, 2007).

Organizational leaders should also take effective steps to transfer thespecial knowledge of high professionalssometimes called in-houseexperts or high professionals (HiPros)who are not necessarilypromotable but who possess specialized competencies in solvingunique problems confronting the organization. Such experts can behighly effective mentors when they are willing to transfer some of whatthey know to others.

Finally, organizational leaders should also take steps to transfer socialrelationships. That is highly challenging. Many people have establisheda broad social network to help them do their jobs. For instance, somesalespeople are highly effective in finding the best people to makedecisions on sales. When these salespeople leave the organization forretirement, these social contacts are lost. But it is not as simple asmaking introductions rather, customers and others must j learn to trustsuccessors. It is thus \ necessary to groom successors |-through aseries of projects so that customers learn to trust them. Of t course,social relationships can also exist in occupations outside sales, I andthey are just as important to transfer to successors (Rothwell, I 2007).

Step 10: Evaluate Results

Evaluating TM programs is a topical issue (Rothwell and Kim, 2005).

Many executives and HR practitioners wonder how to evaluate talentprograms. The NGTM programs, however, are evaluated by metricsestablished from the initial goals identified for the program. Suppose,for instance, that a goal of a talent program is to groom successors inpreparation for a wave of expected top management retirements. Inthat example, it would (of course) be appropriate to measure the


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program based on how many and how well individuals are prepared tomeet that goal. That can be tracked annually.

Use the instrument appearing in Exhibit 2 to rate how well yourorganization matches up to the practices of NGTM.

How Can Practitioners Get Started in Implementing NGTM?

There are three basic ways to start a next generation talentmanagement program.

The first approach m to focus at first on" replacement planning. Whileoften confused with succession planning or even TM, a replacementplanning program identifies back-ups for key people or key positionsin the event of sudden, catastrophic loss or even temporary timesaway from the job. While many organizations have already preparedreplacement charts to identify permanent or acT^ig^eT^Tacemeritrinthe event of a sudden losssuch as the plane carrying the CEO oreven the entire senior executive team crashing not all organizationshave done so. It is a good place to start because the results can besecured quickly. Replacement charts also raise many program.

The second approach is to focus at first on top-down TM. It usuallyBegins with an assessment of the senior executive team. An advantageof that approach is that it leads senior managers to become familiarwith and help shape, the TM program. But the disadvantage is that, toroll out the program to lower levels of the organization, the rightinfrastructure (such as a robust human resource management systemand credible HR professionals) must be in place to support thatimplementation.

The third approach is to focus at first on a trouble spot in theorganization. Pilot test a TM work very well because it relies for supporton the manager of the pilot-test group rather than a CEO who may beremoved from daily operations. If success is attained in the pilot test,then snowballing the program to other groups become more likely.

Conclusion

Few business authorities question that talent management is a keynational bordersas well as pending retirements and talent needed tofuel explosive business expansion.

Traditional talent management, limited merely to attracting,developing and retaining talented people, is not enough.) Today'sorganizations need NGTM. A model governing that approach consistsof 10-kcy steps: (1) get commitment, clarify roles and goals, and build


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accountabilities; (2) clarify what work people do, what peoplesuccessfully do the work and who possesses special knowledge andspecial social relationships; (3) recruit and select appropriate peoplefrom inside and outside the organization; (5) formulate future talentrequirements and align with strategic objectives; (6) assess individual

potential for promotion and individual values and ethics; (7) inventoryexisting talent; (8) plan for individual development; (9) systematicallyretain people and transfer knowledge and social relationships; and (10)evaluate results.

There are three places to launch a NGTM program. The first approachis to start with simple replacement planning and gradually ease into amore robust effort. The second approach is to start from the top down.

The third approach is to start in a trouble spot *.

ADSFAAASDFFFFFFFFFFFFFFFFFF

* Reference # 12M-2008-10-03-01


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TALENT MANAGEMENTSome Profound Considerations for the Human Resources Practitioner

Talent management is an elusive construct if, one takes the time toactually think about an operational definition of this entity. It is

essential to think about several aspects of this construct if one is goingto actually implement a talent management program within anorganization. This article delves into this elusive construct and offerssome insights into talent management or leadership.


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LEADERSHIP

Talent Management has been a buzzword since the 1990s. Thepopularity of this process is evident in an online research through apopular search engine that yielded over 7,69,90,000 hits on the phrase

talent management. Unfortunately, most of the research in the areaof talent management has been confined to speculative comments andto self-reports from CEOs and other business leaders. Theseassumptions by organizational leaders may have contributed to theplethora of definitions for what talent management means.

Commonly, talent management implies a process where the employeeis placed on a career path to develop his skills that the organizationperceives are valuable. The hope of the organization is that theemployee will remain with the organization so that the organizationcan receive a benefit from its investment in the employee. Sometimes,

talent management implies an outsourcing process where theorganization selects talent outside the organization to fill internalneeds. In this instance, talent is acquired rather than developed. Thisorganizational practice has become more common in the past 10 yearsas the demand for talent has increased and the apparent pool of talenthas decreased.

This apparent scarcity of talent has created "The War for Talent". Oneof the outcomes of this war is the tactic of posting new organizational

job opportunities internally so that talented employees remainemployed within the organization if they sense a need to change theircurrent position. However, social science researchers have linked fearof scarcity as a precursor to diminished creativity and to anunwillingness to take risks resulting in organizations stifling self-directed learning practices. Therefore, what is a plausible solution tothis dilemma/ Perhaps, a starting point is to deconstruct talentmanagement to explore its nuances for some vital clues.

Talent implies creativity, freedom and curiosity. Talent becomesevident when solutions are not apparent. Scholars describe talent asvaluable and hard to imitate because it is essentially unpredictable.

Talent discovers treasures without having a map. In contrast,management implies control and predictability. To manage somethingis to have influence or the ability to enforce compliance. The notion of combining talent with management seems to be paradoxical. To allowtalent to flourish seems to negate the notion of the ability to manage.

In a recent mixed methods study, researchers asked school educatorsand administrators to create and rank characteristics of leadershiptalent. The results of the study indicated that the 429 respondentsselected characteristics, which were soft skills such as people skills,


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vision, enthusiasm, initiative and high energy. The job-related skillssuch as experienced project leader, competent educator, and effectiveeducator were all ranked in the lowest 40 percentile of the list of leadership talent characteristics. A possible explanation of theseresults is that talent is difficult to manage because it does not appear

to be chiefly a job-related skill. Instead, talent seems to favor softskills, which require nurturing and an opportunity to manifest. Therefore, talent may require more nurturing and less managing.

Talent Operationally Defined

Before one can effectively manage talent, a discussion must ensueregarding the nature and purpose of the organization as well as theneed for talented groups of people and individuals. This discussionmay act as a precursor to many conversations throughout the life of amanager of talented individualsas he goes about his everyday

business of talent management. By the use of this term talentmanagement would it suggest that only some organizations requiretalented people in order to effectively conduct their business? Theterm talent management appears to suggest that some organizationsdo not view the need for their employees to be talented or perhapssome organizations require talented individuals while others do not. Itis suggested that one of the characteristics of people in general is theyare often talented and creative anyway; and often over-managementmay stifle this talent.

Before one can adequately discuss this construct of managing talent, itmust be stated that any organizational manager should operationallydefine the construct of talent and its management. It is suggested thatbefore talent may be managed in the approved manner, the reasonsfor employing talented individuals must be examined as well as themost appropriate management approach. It is incumbent upon theleaders and managers of organizations to examine what talent actuallymeans to the organization; and to attempt to manage this talent in amanner that will allow for creative and innovative environments. It isalso suggested for organizational leaders to think about their productor service from the perspective of creating environments conducive tocreativity and innovation. In essence, they must ascertain the what,

why and how questions those are pertinent to the mission and vision of the organization. Additionally, when one considers the people of anorganization from a management perspective, they will very often tellmanagers the type of support and environments that are conducive totheir personal, cognized goals and how they commingle with the goalsand aspirations of the organization.

From the outset of this endeavor, it has been pointed out that many


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organizations require talented and creative individuals and groupsinessence, the management of talent may range through several stylesand appropriate models of management. It is suggested that managersshould perhaps alter their perspectives from managing talent tofacilitating environments where creativity and leadership abound

throughout the organization.Leadership vs. Management

If one considers the caveats mentioned above, a posture of nurturingtalent may replace managing talent throughout the organization. Onemust ask the question if talent needs to be managed (and what thisactually entails); or if talent should be nurtured in order to accomplishthe commingled goals of the individual and the organization as awhole. Bennis (1999) suggests that "managing people is like herdingcats". He also opines, "Leadership is all about innovating and initiating.

Management is about copying and managing the status quo.Leadership is creative, adaptive and agile. Leadership looks at thehorizon, not just at the bottom line. A leader does the right things,which implies a goal, a direction, an objective, a vision, a dream, apath, a reach. Lots of people spend their lives climbing a ladderandthen they get to the top of the wrong wall. Most losing organizationsare over managed and underled. Their' managers accomplish thewrong things beautifully and efficiently. ! They climb the wrong wall.Managing is about efficiency. Leading is about effectiveness. Managingis about how. Leading is about what and why. Managing is aboutsystems, controls, procedures, policies, structure. Leadership is about

trustabout people.When one considers leadership instead of managing talent there areseveral caveats that must be discussed, including the environmentsthat support and I nurture creativity instead of those environmentsthat force one to be creative and innovative. This may appear to be abasic suggestion but it is very often the case where individuals orgroups of people are forced to be creative. As mentioned above byProfessor Bennis, leadership or leading people through situations thatrequire talented outcomes can prove to be beneficial for all concerned.If one examines the environments that support and nurture talent and

creativity, one may deduce that environments where relationships areparamount provide excellent opportunities for creative energies tothrive.

Creating Environments Conducive to Creativity

If one may suggest that creativity is a paramount consideration relatedto talentone should consider the environments that are conducive tocreativity and innovation. As mentioned previously, if one is forced to


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organization were tasked to offer some new and innovative strategyfor accomplishing newly-adopted accounting goals. In essence, themanagers and staff were assigned with discovering a new and creativemanner to address some very difficult procedures that needed to beimproved upon.

The meeting opened with the CEO of the organization making it veryclear that there were new and improved methods of conducting thearea of their business; and the people in the room should find a way tocreatively improve this process. It was incumbent upon the people inthe department to find a creative new solution to the problem that hadbeen nagging the organization for years. He further stated that he didriot know of a better method of conducting the business but he wascounting upon the people present in the meeting to develop a new andimproved method for addressing the problem as well as a strategy forimplementation within the next few months. It was evident to all the

people present at the meeting that their task was a difficult one, whichcould adversely affect all their positions within the organization. TheCEO closed the meeting by stating that he would not be disappointed;and their jobs depended upon a creative solution to the problem.

Patty was a middle manager within the organization with 12 peopleunder her supervisionher manager was obviously shaken by themeeting and abruptly told Patty to tell her team to find a solution...andfind one fast. He exited the meeting by stating that they had better becreative or their jobs were at stake. During the next several weeksPatty held meetings with her staff regarding the task of discovering a

creative solution to the problem. During the meetings she noticed thather former rapport of trust within the group had changed to one of suspicion, her group members began to distrust the management of the organization; and the CEO himself. It appeared as though she couldoffer her support to the members of her team but they began to losetrust in her. This scenario began to upset Patty because she alwayssupported her team memberseven when they made mistakes in thepast. Patty viewed mistakes as a part of the learning process andviewed them as opportunities for learning and eventual success.Unfortunately, the time-frame set by the CEO (and the comment thattheir jobs were on the line) created an environment that management

was not to be trusted; and mistakes were not tolerated.During the next several months additional meetings were held by theCEO, the management and the staff of the organization. Patty noticedthat some of the former employees were not present at the meetings;when anyone asked where someone was, the response was he or shewas no longer with the organization. The talk around the variousoffices suggested that some of the people who were not in attendance


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had left the organization to work with the competitors; others weresimply fired because they had proposed solutions to the problem thatwere viewed as being less than creative or inadequate. The climate of the organization began to decline tremendously with the perceptionsthat being creative and attempting to address the problem would

actually get one fired. The climate that once nurtured creativity andtrust among management and colleagues had become one of distrustand non-productivity.

During one of the last meetings Patty attended she noticed even moreof her friends and colleagues missing from the meetingsthe CEOclosed the meeting by stating that he should fire everyone in themeeting and start all over again. This comment forced Patty to seekemployment elsewhereshe left a few weeks after that meeting. Shestill keeps in touch with several of her former colleagues who say thatthe meetings still continue but an adequate solution has not been

presented thus far; and more people are leaving the organization. This hypothetical example was intended to illustrate the profoundimportance of creating environments of trust where creativity andinnovation will flourish. It was also intended to provide an illustration of how not to manage talent when a particular task is in order. If onethinks about the actions of the CEO in this scenario, he actually stifledany creativity that may have produced significant results. In essence,the CEO attempted to manage the talent within this organizationinstead of providing the leadership environments that may haveaddressed the problem through creative and innovative solutions. The

hypothetical example may act as a catalyst for managers to thinkabout the environments they create as they attempt to meet theneeds and goals of their organizations.

Conclusion

Talent management is an elusive construct at bestit is suggestedthat organizational leaders should begin to think about the kind of talent that is required for any given solution to problems and attemptto recruit the optimal people for the endeavor. Several other caveatsare of paramount concern for managing talent:

Operationally define the construct of talent (the specific talentthat is required for the organization).

Ascertain the appropriate management style that will be requiredto nurture the talent pool.

Think about adopting a posture*' nurturing talent throughleadership instead of management


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Create environments conductivity to creativity and innovation.

Create a safe and trusting, environment where mistakes areviewed as potential solutions t problems.

Never attempt to force creativity (the story where Patty and hercolleagues were tow their jobs depended upon it is an excellentexample).

Involve the citizens of an| organization (the employees) insolutions to problemsthe employees may often know the;solutions but they may be afraid-; to convey their thoughts tothe|; management.

Open the organization to dialog; and include everyone; ask:people what they thinkthey I may have a feasible solution.

Problems may have excellent: potential for successful outcomes Iif dealt with in a creative manner.

Respect people and treat them as if they were a valuablecommodity to the organization in fact, they are.

It is suggested that managers of talented people should begin to thinkabout the relationships and environments that foster creativity j andinnovation. Trust is a paramount concern as well as creatingenvironments, where mistakes are viewed as part of the process of creativity; and ostensibly, talent management. Think about notmanaging talent in future endeavors but nurturing talent throughleadership behaviors. *

HR leaders worldwide are under intense pressure to align their actionsand investments with business strategies and to demonstrate ameaningful return on these investments. This ongoing drive to reshape11R into a valued business partner has led many a IIR professionals toexplore the outsourcing of various I IR functions - from payroll toemployee benefits - as 8 way to better manage costs, streamlineadministration increase HR effectiveness and efficiency, free up timefor more strategic activities, and provide enhanced service to I IR'sinternal customers.

The reward programs and the compensation function, traditionally anMR turf make for a significant and growing investment for an

* Reference # I2M-2008-10-04-01


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organization. In general, these programs have been manageddiscreetly rather than as part of an overall strategy. As businessleaders look to I IR to support the organization's business objectivesand enhance profitability, the Compensation function within thebroader I IR amhit has a challenging road ahead.

Outsourcing for the compensation function too, had been a differentstory so far. Businesses have been larger reluctant to outsource thecompensation and benefits function for a number of reasons. A recentMercer survey of more than 300 large US employers revealed that only4 percent of the respondents outsourced their compensationadministration - the lowest level of outsourcing reported for 12common HR activities. The figures are similar in most othergeographies around the world. For example, just 3 percent of employers in Canada, 5 percent in Latin America, 7 percent in Asia,and 8 percent in Australia currently outsource their compensation

administration, according to Mercer research.Why the reluctance? First, compensation traditionally has been seen asa corporate function - less transactional and more strategic thanfunctions typically associated with outsourcing. Second, compensationfunctions serve managers rather than the broader employeepopulation (as with benefits administration outsourcing, for example).Companies have been more hesitant to turn these higher-levelinteractions over to an outsourcing vendor. Third, the diverse,specialized skill set needed for compensation work does not fit easilyinto the typical outsourcing model. And finally), until recently, the

technological capability for this sort of "co-processing" with an outsidevendor was cost-prohibitive.

The paradigm of change

In times when talent has become the most critical resource, managingthis talent effectively and efficiently is central to a company's growth.

This coupled with the increasing complexity of the HR function hasmeant adoption of technology today is not a matter of choice but abusiness imperative for the HR function. Hence a move towardsautomation and standardization of key functions includingcompensation management cannot be overlooked. Traditionally, theHR department has been slow to embrace technology unlike otherdepartments like Production, Finance, Marketing, Sales.

6. Customer relations.

Research suggests that on an average, 77 % of company expensesderive from workforce expenditure. With stakes being so high,competitive pay analysis has become critical. Pay too little, and


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retention, recruiting, morale, and productivity all decline. Pay toomuch, and your burgeoning talent costs diminish your margins, aproblem that only compounds over time. Consider this...

For every $1,000,000 of payroll expense, an overpayment of 2%

costs your organization 520,000 and does little to motivate high-performing employees to slay

For every $50,000 of individual payroll expense, anunderpayment of 5 % is enough to send your high performingemployees to the competition, but not enough to motivatemarginal employees to leave

Changes to HR structure and processes create a domino effect - forbetter or for worse - throughout the remaining 11R function and eventhe organization, and few changes make a greater impact on HR than

outsourcing. That's why outsourcing should always be considered atransformational event for HR, and why plans for the retained 11Rfunction should be addressed in conjunction with plans for anyoutsourcing effort.

A quick review of market trends reveals that HR outsourcing (HRO) isgrowing, global and continually extending to a wider range of HRfunctions. After some market slowing in 2006 - 2007, Everest Researchexpects I IRQ to reach an annualised contract value of US$3.5 billion in2008. In addition, current contracts worth nearly $1.1 billion arc duefor renegotiation and renewal in 2008. Furthermore, HRO In Europeshould continue to grow faster than in North America. On a globallevel, organizations are struggling with the challenges and implicationsof global business expansion. The HR function must reassess how itfunctions and supports the business and how it delivers services acrossgeographic boundaries. Global organizations are at the forefront of evaluating all areas of HR as potential candidates to either outsourceor cosource in order to meet their organizations' needs.

True global HR business process outsourcing (BPO) - that is, totalbenefits outsourcing plus payroll, recruiting, employee datamanagement, engagement, retention, the employee value propositionand more, all on a seamless worldwide basis - is still in its infancy. Bigdeals are done by big companies, and scale is a necessity. The modeltoday requires adaptation, in which the company adjusts to thevendor's model or the provider is willing to customise. Both partiesface multiple challenges. For example, the administrative complexitiesinvolved in providing global payroll administration alone are daunting.Not surprisingly, few vendors are currently offering services at thislevel. As total HR BPO evolves, providers may first become


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administrators of niche services for global clients, who prefer toconsolidate with a single supplier than rind and manage multiplevendors.

The 'right' adoption of a 'right-fit' technology can help do just that, and

if that technology promises to accomplish more than just outsourcing -even better.

Promise of co-sourcing through technology

A promising new alternative to tactical outsourcing or inadequateinternal compensation management function is emerging -compensation co-sourcing. Co-sourcing differs fundamentally fromoutsourcing of the compensation function. With outsourcing, employersshift discrete, straightforward transactional and administrative tasksfrom HR's to-do list to an outside vendor able to accomplish thosetasks more efficiently Outsourcing goals are simple: to save money, tosave time, and to improve service.

Co-sourcing's goal is more ambitious: to create a more robust andefficient compensation function - within a single country, regionally, oracross the globe - by partnering with a service provider able toaugmentf internal resources in whatever way is needed. Companies!!that form co-sourcing partnerships can rely on their^ partners'expertise and resources as a supplement, or complement for theirinternal staff. Unlike outsourcing,! which would simply move a task orprocess out of the] organization, co-sourcing brings in additionalresources! that can be applied flexibly across the full spectrum off thecompensation function's responsibilities aided byj? technology toinclude transactions, analysis and strategic! design. It helpsorganizations achieve the right balance' of control and delegation inthis important function.

Co-sourcing focuses on getting the most from available and sometimeslimited resources. And it can help compensation professionals play amore central and strategic role in critical people issues whilecontributing more appreciably to the organization's overall success.

Compensation management technology in context

It is in this context, the need for technology and a compensationmanagement tool gains importance. Aj critical component to thesuccess of the compensation function - and the one demanding themost specialized skills - is developing and maintaining fully functional,:appropriate compensation management software. It also


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CHALLENGES FOR COMPENSATION PROFESSIONALS

needs to address the above challenges to make the compensationfunction truly business oriented. A service provider could configuretechnology tools either through the web or through the organizations'

own IT infrastructure, thereby allowing organizations to leverage andoptimize resources.

Compensation Management tools such as Mercer's ePRISM allowcompanies to store and access all internal job and employee data, aswell as all external compensation market information - facilitatingtasks such as annual salary review, market pricing, job evaluation,data analysis, and management reporting. Self-service decisionsupport tools such as these let managers throughout the organizationand not just within the IIR function make decisions about meritincreases, bonus payouts, equity adjustments, and promotion

increases more effectively and efficiently, freeing compensation staff to focus on more value-added design activities.

Ideally these tools should go beyond simple database managementand become an aid to business decision making. Leveraging thetechnology thus, service providers can become a part of a seamlessextension of the compensation program delivery team and do notremain a 'outsourced vendor' any longer.

Impact: efficiency, effectiveness, and innovation

The right technology integrates the human resources informationsystem and the compensation management tool to provide acomprehensive compensation technology solution to define a strategiccompensation policy through out an organization. This enables the HRand compensation professionals to track, monitor, plan, simulate, andexecute that strategy effectively and efficiently.

Using a compensation management tool, the MR professionals canassess pay equity and competitiveness across the organization, withina business line, a job family, or by a specific job or employee. They canidentify and address at-risk areas such as below market, highperforming. employees, model distribution of base pay and ' total cashto ensure proper mix, analyze the impact of salary and rangeadjustments for; business planning, examine changes to pay plans andstreamline their implementation, build al single database forcompensation management worldwide and administer multiple paypractices.

The impact of compensation management technology is enterprisewide and transformational. It brings in efficiency effectiveness and


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innovation through better management of compensation expense, fewresources, increased precision of calculation more focused marketanalysis, quicker II response to internal requests, and leverage bepractices across the organization.


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The plummeting economy has set the atmosphere of constant pressureon HR professionals. Prom aggressive recruitment and retention tohanding over pink slips to their colleagues and subordinates, HRexecutives are juggling with their own emotions while communicatingthe company's decision.

Facing employees who are already nervous and angry about losing their jobs is not an easy situation. But what really irks HR managers is thepain of conveying management's decision, that too, gently andrationally. Walking the fine line while talking to co-workers and friends,some try to imagine what it would be like to be in the oppositeperson's shoes and how it would feel, affirms psychotherapist MeeraI'andya. "In many cases, HR professionals tend to see laid off employees as victims. Some even experience the survivor's guilt." Heradvice to survive the emotional roller-coaster ride, guilt, inner conflictsand handle this stomach-churning challenge: simply acknowledge that

you are sorry and offer support where you can. In the situation of dealing with a close associate's emotions of dismissal, one has to becareful and avoid being self-conscious" she believes.

Corporate India still believes that job elimination is unethical. There isstill a social stigma attached to being laid off, even thoughinnumerable people across industries have experienced involuntaryexits first hand. Kmployees continue to react more adversely to layoffsin comparison to the U.S. where employees absorb the news prior totaking the next action. A latest research conducted by Watson WyattWorldwide Inc. revealed that 39% of U.S. companies have gone

through employee layoffs; 23% expect to do so during the next f2months; 23% have undergone a company-wide restructuring; andanother 14% foresee the need for future downsizing and layoffs.According to HR consultants if the economic slump continues, Indiacould experience layoffs at the same level as U.S. Considering theeconomic instability results Indian IIR pros need to accept reality andget used to layoffs effectively with a stress-conflict-free mind.

Communicating pink slip decisions

Breaking bad news to employees about job cuts because of aneconomic downturn naturally springs shock waves, creates a state of denial, frustration, anger, blame, and depression, and the one at thereceiving end is typically the HR functionary. "It is indeed a difficulttask to ask anyemployee to leave the organization," affirms TasnimNulwalla, Head-Human Resources, Timezone Entertainment Pvt. Ltd.

Besides, giving pink slips to any employee is a management call andas part of management team HR pros have to go with the decision.


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SECOND INNINGSBy Prof. K. Kunikrishnan & Dr. Sandeep Krishnan

What would a Sachin Tendulkar or a David Beckham do after retiringfrom a sports career? Options are many. They will be a coach, a

selector, do commentary, start their own business or involve fulltime inan already existing one, venture into the entertainment world. Whileretirement of a sports person is driven by factors like age, inability totake stress of sports after an age, and is purely driven by inability toconsistently show form in playing, the phasing out of a professional isquick and abrupt driven by the age factor of retirement. The growth of knowledge professionals has created a different perspective to thisoutlook. Is a healthy professor (may be one of the best) not suitable toteach just as he reaches the age of 60? Is a great scientist no longerable to contribute to an institution or nation after the age of 65? Orsimply put, is a competent I1R professional no longer required in his

profession?Exploring The Scenario

The current generation that is going to retire at the age of 60 wouldhave joined the work force during the early 70s. We set policies of employment based on considerations of creating jobs, job security, andopportunities for young people. Also imagine the managementscenario. People just got promoted by years of service. No words likesuccession planning and career management had many takers orneed. Public sector dominated the scene as well. However, as a whole

it created a great set of people who were ready to expand the horizonwith the opening up of the economy, information revolution, andincreased need of professionals. Many of them rechristened quickly tothe new roles.

A new challenge arises as these professionals reach the retirementage. Early management professionals, seasoned leaders,academicians, and many more professional experts who have seen thetimes of the License Raj, as well as new age industries are suddenlyfacing the challenge of finding avenues for canalizing their talent toproductive purposes.

Managing the transition

A retirement has many more dimensions rather just cessation of aregular job. Quite clearly, for an individual this is the time of quickchange, especially for those who are at the peak of their careers andpower status. It is a time of confusion, uncertainty, and definitelyplanning. One of the choices is to pursue purely life-related aspects


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and have an understanding of moving away from the professionalrealm. Ibis entails time for second innings

oneself, one's family and social activities. Many choose to do this andlook forward to the same, while sacrificing professional competence.

On the other hand, studies in the west show that as many as 70%peo