Describe the Importance of Global Talent Management
talent management Strategic endeavor to optimize the use of human capital, which enables an organization to drive short- and long-term results by building culture, engagement, capability, and capacity through integrated talent acquisition, development, and deployment processes that are aligned to business goals.
104 Part 2 • Staffing
position, culture and so on.”46 More and more companies are automating the talent management process into a single information system. At Chevron Corporation, Taryn Shawstad, general manager of global workforce development, works with a database of about 60,000 employees from approximately180 countries. She says, “In the past, we were siloed by country. Now, instead of looking at the United States or Indonesia or Nigeria, we can look across the globe at job families, capabilities, supply, and demand.”47
According to an Ernst & Young report “Managing Today’s Global Workforce,” top- quality talent management is strongly associated with improved business performance. Companies that aligned talent management programs with their business strategy produced a return on investment (ROI) that was approximately 20 percent higher over a five-year period than companies without such an orientation. Companies that combined certain key elements of talent management such as succession planning and recruiting saw even more dramatic results. The ROI over a five-year period averaged being 38 percent higher than those that failed to integrate those capabilities.48 Also a recent report from Bersin & Associates found that organizations in the United States with a mature, integrated talent management strategy enjoyed 17 percent lower voluntary turnover, 26 percent higher revenue-per-employee, and better business stability.49 Basically, talent management exists to support company objec- tives. In today’s dynamic international environment, talent management provides HR with a significant and demanding challenge. As Vic Speers, director of talent management at Hudson, a provider of talent management services worldwide, says, “The second war for talent is brewing. Young and talented employees are increasingly rare and firms are faced with an aging population where more people retire every year than join the workforce.”50 Organizations are finding it increasingly difficult to recruit quality talent because competi- tors want these same individuals.
The successful firms in this dynamic global environment will be the ones that have been successful at talent management.51 Much has changed in the world today, and firms that move beyond the traditional approach to talent management will have the advantage.
summary 1. Describe the need for the human resource manager to be
a strategic partner, explain the strategic planning process, and describe the human resource planning process. If HR is to be a strategic partner, HR executives must work with top management in achieving concrete plans and results.
Strategic planning is the process by which top man- agement determines overall organizational purposes and objectives and how they will be achieved.
Strategic planning at all levels of the organization can be divided into four steps: (1) determination of the orga- nizational mission, (2) assessment of the organization and its environment, (3) setting of specific objectives or direc- tion, and (4) determination of strategies to accomplish those objectives.
Human resource planning (sometimes called workforce planning) is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period of time.
- Describe forecasting human resource requirements and availability and how databases can assist in matching internal employees to positions. A requirements forecast is an estimate of the numbers and kinds of employees the organization will need at future dates to realize its goals. Determining whether the firm will be able to secure employees with the necessary skills and from what sources these individuals may be obtained is called an availability forecast.
Databases are being used by organizations to enable human resources to match people with positions.
- Identify what a firm can do when either a shortage or a surplus of workers exists and explain strategic succes- sion planning in today’s environment. When a shortage of workers exists, creative recruiting, compensation incen- tives, training programs, and different selection standards are possible. When a worker surplus exists, most compa- nies look for alternatives to layoffs, but downsizing may ultimately be required.
ChaPter 4 • StrategiC Planning, human reSourCe Planning, and Job analySiS 105
Succession planning is the process of ensuring that qualified persons are available to assume key managerial positions once the positions are vacant.
- Explain why job analysis is a basic human resource tool, and give the reasons for conducting job analysis. Job analysis is the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization. It is an essential and pervasive HR technique.
Without a properly conducted job analysis, it would be difficult, if not impossible, to satisfactorily perform the other HR–related functions.
- Describe the types of information required for job analy- sis and describe the various job analysis methods. Work activities, worker-oriented activities, and the types of machines, tools, equipment, and work aids used in the job are important. This information is used to help determine the job skills needed. In addition, the job analyst looks at job-related tangibles and intangibles.
The job analyst may administer a structured question- naire or witness the work being performed, or he or she may interview both the employee and the supervisor or ask them to describe their daily work activities in a diary or log. A combination of methods is often used.
- Describe the components of a job description. Components include the job identification section, which includes the job title, department, reporting relationship, and a job number or code; the job analysis date; the job summary; and the body of the job description that delin- eates the major duties to be performed.
- Explain Standard Occupational Classification (SOC), Occupational Information Network (O*NET), job analysis for team members, and describe how job analysis helps satisfy various legal requirements. The SOC’s substantive structural changes are based on actual changes in the nature or organization of work activities being performed in the economy.
O*NET, the Occupational Information Network, is a comprehensive, government-developed database of worker attributes and job characteristics.
In many firms today, people are being hired as team members. Whenever someone asks a team member,
“What is your job description?” the reply might well be “Whatever.”
Legislation requiring thorough job analysis includes the following acts: Fair Labor Standards Act, Equal Pay Act, Civil Rights Act, Occupational Safety and Health Act, and the Americans with Disabilities Act (ADA)/ADA Amendments Act.
- Discuss the relevance of competencies and compe- tency modeling. The term competency has become an increasingly important topic in HR practice because of the changing nature of work. Competencies build on the use of knowledge, skills, and abilities, which we describe with job analysis, to describe work. Competencies refer to an individual’s capability to orchestrate and apply combinations of knowledge, skills, and abilities con- sistently over time to perform work successfully in the required work situation. A competency model specifies and defines all the competencies necessary for success in a group of jobs that are set within an industry context.
- Explain some job design concepts. Job design is the pro- cess of determining the specific tasks to be performed, the methods used in performing the tasks, and how the job relates to other work in the organization. Job enrich- ment consists of basic changes in the content and level of responsibility of a job so as to provide greater challenge to the worker. Job enlargement is increasing the number of tasks a worker performs, with all of the tasks at the same level of responsibility. Job rotation (sometimes called cross-training) moves employees from one job to another to broaden their experience. Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance, such as cost, quality, service, and speed.
- Describe the importance of global talent management. Talent management is a strategic endeavor to optimize the use of human capital, which enables an organization to drive short- and long-term results by building culture, engagement, capability, and capacity through integrated talent acquisition, development, and deployment processes that are aligned to business goals.
strategic planning 79 mission 80 human resource planning 84 requirements forecast 84 availability forecast 84 zero-base forecast 86 bottom-up forecast 86
succession planning 90 job analysis 91 job 91 position 91 job description 92 job specification 92 competencies 100
competency modeling 100 job design 101 job enrichment 102 job enlargement 102 job rotation 102 talent management 103 reengineering 103
106 Part 2 • Staffing
MyManagementLab® Go to mymanagementlab.com to complete the problems marked with this icon .
i n c i D e n t 1 A Degree for Meter Readers Judy Anderson was assigned as a recruiter for South Illinois Electric Company (SIE), a small supplier of natural gas and electricity for Cairo, Illinois, and the surrounding area. The company had been expanding rapidly, and this growth was expected to continue. In January 2014, SIE purchased the utilities system serving neighboring Mitchell County. This expansion concerned Judy. The company workforce had increased by 30 percent the previous year, and Judy had struggled to recruit enough qualified job applicants. She knew that new expansion would intensify the problem.
Judy was particularly concerned about meter readers. The tasks required in meter reading are relatively simple. A person drives to homes
served by the company, finds the gas or electric meter, and electroni- cally records its current reading. If the meter has been tampered with, it is reported. Otherwise, no decision making of any consequence is associated with the job. The reader performs no calculations. The pay was $10.00 per hour, high for unskilled work in the area. Even so, Judy had been having considerable difficulty keeping the 37 meter reader positions filled.
Judy was thinking about how to attract more job applicants when she received a call from the HR director, Sam McCord. “Judy,” Sam said, “I’m unhappy with the job specification calling for only a high school education for meter readers. In planning for the future, we
exercises 4-1. Prepare a job specification for each of the following jobs: a. social media recruiter b. automobile mechanic for Lexus dealership c. chef for an upscale restaurant d. cook at Burger King
4-2. The section titled “Alternatives to Layoffs” suggests that layoffs should only be used as a last alternative. Do you agree that alternatives should only be used as a desper- ate measure? Be prepared to defend your decision.
Questions for review 4-3. What are the steps involved in the strategic planning
process? 4-4. What are the steps involved in the HR planning process? 4-5. What are the HR forecasting techniques? 4-6. Distinguish between forecasting HR requirements and
availability. 4-7. What are the purposes of strategic planning? 4-8. What actions could a firm take if it forecasted
a shortage of workers? 4-9. What are some alternatives to layoffs? 4-10. Define succession planning. Why is it important? 4-11. What is the distinction between a job and a position?
Define job analysis. 4-12. When is job analysis performed? 4-13. What are the types of information required for job
analysis? 4-14. What are the methods used to conduct job analysis?
Describe each type. 4-15. What are the basic components of a job description?
Briefly describe each. 4-16. What is the purpose of the Standard Occupational
4-17. What is the purpose of the O*NET, the Occupational Information Network?
4-18. What is meant by the statement “With team design, there are no narrow jobs”?
4-19. Describe how effective job analysis can be used to satisfy each of the following statutes:
(a) Fair Labor Standards Act (b) Equal Pay Act (c) Civil Rights Act (d) Occupational Safety and Health Act (e) Americans with Disabilities Act (ADA)/ADA
Amendments Act 4-20. Why is competency modeling an important practice? 4-21. Define each of the following: (a) job design (b) job enrichment (c) job enlargement (d) job rotation (e) reengineering 4-22. Why is the use of talent management so important in
ChaPter 4 • StrategiC Planning, human reSourCe Planning, and Job analySiS 107
MyManagementLab® Go to mymanagementlab.com for Auto-graded writing questions as well as the following Assisted-graded writing questions:
4-30. Why is job analysis considered to be a basic HR tool? 4-31. Why does the HR manager need to be a strategic partner with top management?
i n c i D e n t 2 Strategic HR? Brian Charles, the vice president of marketing for Sharpco Manufacturing, commented at the weekly executive directors’ meeting, “I have good news. We can get the large contract with Medord Corporation. All we have to do is complete the project in one year instead of two. I told them we could do it.”
Charmagne Powell, vice president of HR, brought Brian back to reality by reminding him, “Remember the strategic plan we were involved in developing and we all agreed to? Our present workers do not have the expertise required to produce the quality that Medord’s particular specifications require. Under the two-year project timetable, we planned to retrain our present workers gradually. With this new time schedule, we will have to go into the job market and recruit work- ers who are already experienced in this process. We all need to study
your proposal further. HR costs will rise considerably if we attempt to complete the project in one year instead of two. Sure, Brian, we can do it, but with these constraints, will the project be cost effective?”
Questions 4-27. Was Charmagne considering the strategic nature of HR
planning when she challenged Brian’s “good news” forecast? Discuss.
4-28. How did the involvement in developing the corporate strategic plan assist Charmagne in challenging Brian?
4-29. Strategic planning at all levels of the organization can be divided into four steps. Which step in the strategic planning process did Brian violate?
endnotes Scan for Endnotes or go to http://www.pearsonhighered.com/mondy
need better-educated people in the company. I’ve decided to change the education requirement for the meter reader job from a high school diploma to a college degree.”
“But, Mr. McCord,” protested Judy, “the company is growing rap- idly. If we are to have enough people to fill those jobs we just can’t insist that college graduates get paid to do such basic tasks. I don’t see how we can meet our future needs for this job with such an unrealistic job qualification.”
Sam terminated the conversation abruptly by saying, “No, I don’t agree. We need to upgrade all the people in our organization. This is just part of a general effort to do that. Anyway, I cleared this with the president before I decided to do it.”
Questions 4-23. Should there be a minimum education requirement for the?
meter reader job? Discuss. 4-24. What is your opinion of Sam’s effort to upgrade the people in
the organization? 4-25. What legal ramifications, if any, should Sam have considered? 4-26. Based on the information provided in this incident, what tasks
would likely be included in the “Duties Performed” section? How would this affect the job specification section?