Law of Effect: behavior that leads to reward tends to be repeated; behavior that does not lead to reward tends

not to
be repeated. Executives typically do not have advanced degrees in psychology, but they must be able to manage in
complex organizational settings where great variations exist in the types of situations, conditions, and people.The
importance of reward in shaping behavior in an organizational setting is known to managers as well as psychologists.
“People behave as they are measured” – Bill Gates

Performance management system has two primary parts: performance appraisal (the process of measuring
performance) and performance review (the process of communicating the results of the performance appraisal to the
person whose performance was measured).

Choice of Appraisal System

Trait-based—Assumption that certain traits drive performance; measures personal characteristics of the position
incumbent. all employees
Behavior-based—Assumption that certain behaviors drive performance; measures what the position incumbent
does. supervisors and below
Knowledge/skill-based—Assumption that certain knowledge/skills drive performance; measures what the position
incumbent knows/applies. When traits, behaviors, skills, and knowledge are linked to organization success
expectations, they are sometimes called competencies. production workers, clerical workers, and some professionals
Results-based—Assumption that achievement of objectives equals performance; measures what the position
incumbent achieves. administrators/managers, most professionals, and executives

System Type Characteristics Strengths Weaknesses

Assumption that certain Simple to
traits drive conduct Simple to conduct
performance evaluation evaluation
Emphasis is on perso Can apply to Can apply to
nality/style/values different different
Trait-Based
Evaluation based on employee employee groups
perception groups Communicates
Rating tied to degree/ Communicates important traits up
frequency trait is important traits front
exhibited up front
Assumption that certain
behaviors drive Time-consuming to
performance develop and
Helps
Behaviors are specific to evaluate
employees
Behavior- the work environment Must be able to
understand
Based Evaluation based on observe
specifically
demonstrated actions and measure
how job is to be
Rating tied to degree/ discrete
done
frequency behavior is behaviors
exhibited
Assumption that certain
knowledge/skills drive
performance Assumes link
Emphasis on employee between
Strategic view:
Knowledge- capabilities knowledge/skills
pay for
or Evaluation based on and
competencies
Skill-Based acquisition of results
required
knowledge/skills Difficult to measure
in the future
Rating tied to degree/ diverse skills
diversity of knowledge/
skill achieved
Results- Assumption that Tailored to Time-consuming to
Based achieve specific jobs/ develop and
 ment of objectives organization evaluate
drives Emphasizes
performance results
Objectives tied to job or
organization goals
Evaluation based on
results achieved
Rating tied to degree of
achievement

Designing a Performance Appraisal Program

1. Choice of Appraiser
employee’s immediate superior (EIS)
Rater Strengths
Excellent opportunity to
observe performance
Peers
Good knowledge of job
requirements
Excellent opportunity to
observe performance
Subordinates
Good knowledge of job
requirements
Clients/ May observe the most
Customers/ critical aspects of
Suppliers performance
May possess excellent
appraisal skills
High degree of objectivity May not understand all
due to lack of personal
relationship with appraisee Can be expensive
Weaknesses
Low rating may create
resentment
(everyone gets rated high)
May weaken group trust
May distort ratings (Favour/get even)
Afraid to be negative when it is
deserved
May weaken the supervisory
relationship
May not see some important
aspects of performance
May distort the proper
business relationship
(employee does favors for
rater in return for high rating)
Limited opportunity to
observe performance
aspects of the job

2. Method of Measurement
Each trait, behavior, skill, or result must be weighted specifically for the job at hand.

Weighting may be as simple as high, medium, or low relative importance, or as percentages for each factor.

Rules- cannot be weighted more than 20%, cannot be weighted less than 5%, avoid using fractions of a percent, total
of all percentages must equal at least 95% and must not exceed 100%.

The Trait-Based Performance Appraisal Process

Relationships with others—works in cooperation with others to achieve result.

Communication—transfers ideas and thoughts by speech and writing.

Planning/organizing tasks—develops and arranges activity.

Judgment—evaluates job situation to arrive at sound decisions.

Autonomy—works with minimal supervision required by job.

Work accuracy—works within error standards.

Work quantity—work within designated time frames

The Behavior-Based Performance Appraisal Process

identifying the behaviors to be measured; number of rating levels; providing specific definitions of the
levels of performance (rating inflation)

Accurately identifies employees’ strengths, weaknesses,

and potential
5 – High
Communicates expectations;
immediately confronts problems
4
appropriately places individuals in positions compatible
with qualifications
3 – Medium
may neglect to challenge good performers sufficiently
neglects to offer deserved praise.
2
Unable to recognize or evaluate strengths and
weaknesses of individuals
1 – Low
Subordinates are confused about what is expected
fills job vacancies on personality alone.
People development

The Knowledge/Skills-Based Performance Appraisal Process

Identifying

The first challenge is to define the level of specificity to be used when defining knowledge/skills. Is leadership the skill
to be measured? Or is it to be broken down into more specific skills?

fineness of the breakdown

• Creates shared vision

• Motivates and empowers others
• Credibility
• Integrity
• Sensitivity
• Develop people
• Group skills

The Results-Based Performance Appraisal Process

1. Measurement of Results

Determine what results are going to be tracked for a particular position. Dimensions of performance-communicate
what results the organization considers to be the most important. Not all dimensions are created equal; percentage
weighting factor.

for each dimension, measures must be established. Measures communicate how the organization will assess
achievement of the results.

for each measure, standards - communicate how the organization will know if it succeeded.

2. Comparison of Types of Results Measures

Least Quantifiable

General Descriptions

Judgmental Scales

Ratios
Direct Counts

Most Quantifiable

3. Developing Results Measures

a. Relevant

b. Specific

c. Obtainable

d. Practical

e. Reliable

f. Timely

Selection Process – vital step towards building a skilled and competitive workforce

Successful recruitment – critical in developing the pool of future team members that will ensure organizational success

Selecting new employees – the most critical purchasing decision an organization can make

Biggest cause of turnover – weak employee selection

Selection process starts with public announcement of an open position, request for resumes, sorting of respondents,
and call for interview.

The ritualized process includes predictable questions with predictable answers.

Both parties know there are important matters that are frequently not discussed or covered.

Important matters that are not discussed or covered in the ritual – like interview are

• What is the job really like?

• Will I fit into this company?
• Will they appreciate me and meet my needs?

Answers to these questions are essential to a candidate’s acceptance decision to determine how the candidate will fit
into the culture and how his/her skills will add value to the organization

Improvement Through TalentReservoir®

 Talent Reservoir® is a process that can enable recruiters and job candidates to add a meaningful dimension to
the selection process

 Talent Reservoir® is a talent management process that integrates diverse assessment systems into a single
program that links jobs to employee capabilities in order to generate a continuous cadre of qualified
replacements

 It identifies key areas retention risk and organizational and employee deficiency.

 Meshes organizational competencies (as defined by stakeholders within the company) with candidate’s skills
and behavior

Competencies—behaviors and skills that enable a person to be successful and effective in his/her job—are the
foundation for TalentReservoir® and should be an integral element of the selection process.

This model offers the following benefits:

1. More meaningful discussion of an employee’s potential fit.

2. Alignment of the candidate’s capabilities to organizational values.

3. Improved prediction of the employee’s future job performance.

4. Reduction of turnover through the selection and hiring of the right employees.

5. An assessment of how the candidate’s skills can add value to the organization.

A) The Typical Script:

Resume

Job Description

Other Credentials

The “ typical script ” plays out with a standard resume presented by the candidate and a job description outlined by
the employer

The candidate should ask

“ Will I fit into the organization ? ”

“ Do I believe in the organization’s mission and values ? ”

The employer wants to know

“ Does the candidate possess the values and skills our organization finds important ? ”

“ Will he/she fit into the organization ? ”

B) The TalentReservoir® Rescript:

• Competency Assessment
• Organizational Fit
• Alignment to Organizational Values

C) The Hidden Script:

Human Factors

The candidate privately asks

“ Do they share my values ? ”

“ Can I balance my work and family life here ? ”

The employer’s concern

“ I am not sure I like this person, but she appears to be the best qualified ”

Talent Management Model: The TalentReservoir® Process

TalentReservoir® is a proprietary system of selecting, evaluating, and developing staff. TalentReservoir® integrates all
components of talent management:

• selection (both internal and external)

• competency and performance evaluation
• coaching and staff development
• succession planning

This information is input into an integrated computer program that generates human capital reports that are
instrumental in workforce planning and employee development.

When the process is used for selection, either internally or externally, the following steps must be followed:
 1. Select Competencies – Skills, attitudes and behaviors that are needed to succeed in a job. It should support
the organization’s mission and align staff to its values

Typical competencies selected

• Team participation
• Respect for others
• Communication
• Integrity
• Innovation
• Caring and compassion
• Financial responsibility

2. Define Measurement Scales - The scales incorporate a series of statements descriptive of successful behaviors
pertinent to each job in the organization.
3. Develop a Structured Interview Outline - Using the competencies and measurement scales, the recruiter
develops a list of questions directly related to the job.

The selection process works as :

1. Self –

At the initial interview, the applicant completes a self – assessment form.

The form asks the application to identify the extent to which he/she exhibits each of the selection competencies.
Say the competencies are adaptability, compassion & caring, dependability, interpersonal skill, planning,
professionalism, and job competency.

The five – point rating scale is used ; greatly below peers, below peers, same as peers, exceeds peers, greatly
exceeds peers.

2. Interviewer –

Reviews the self- assessment and begins his/her assessment of the applicant’s competency levels

Targeted interview questions that tap into the competencies are selected.

3. References –

References are provided with a form that includes

The same 8 competencies

Their definitions

The same five – point rating scale

that the candidate and recruiter use

4. On the Job –

Periodical assessment of performance on the same 8 competencies and rating scale, using customer feedback

Conclusion

Start at the top – start from the executive level down - ensure buy-in and ownership of the process

Tie competencies to the organization Mission and Core Values

Survey Key Stakeholders – stakeholders include customers, employees and others. These stakeholders can describe
competencies and behaviors that are important for a staff person to successfully perform his job

User – Friendly – manuals, training and staff communication must be easily understood, free of jargon.
Inclusion – include those persons from the inception who are responsible for the maintenance of the talent
management system (e.g. HR staff, information system staff etc.)

Simplicity – keep the talent management system as simple as possible

Predictive Capabilities – predicts successful job performance by reviewing the pre-placement forms ( self, interviewer,
references ) and comparing these results with the post-placement ( customer assessment ) forms

Chapter 17Achieving Organization Excellence Through Talent Planning and Development

Stages in talent planning

1. Design Process
2. Implementation Process
Design Process

• Define Objective - What exactly is the organization trying to achieve?

Part of which is to determine the target audience for different Succession Program

Role-based program—focused on specific key positions, which are either difficult to fill or critical to the business’
success

Individual-based program—focused on particular people with the potential for advancement

Pool-based program—focused on a number of high-potential people who conceivably could move into any of several
leadership positions within the organization

• Establish a set of Leadership competencies or qualities - qualities that are considered desirable in a high-potential
person. These could include anything from financial acumen and cost control to aggressiveness, vision, and risk-
taking.

Implementation Process

• Stage 1 : Preplanning

Preplanning serves as the transition from the design phase to implementation, in which HR prepares those who will
play a key role in the leadership development program.

The preplanning stage basically consists of three critical steps:

1. Explain the underlying goals of the process to those business leaders who will be charged with identifying and
developing the company’s future leaders.
2. Impress upon business leaders their accountability for assessing their people. Foster a culture in which
managers feel comfortable identifying high-potential people, rather than being threatened by them
3. Train participants on the company’s succession management process.

• Stage 2 : Assessment

Business leaders being given the tools and knowledge necessary for a successful leadership-development program,
they are ready to put their training into action, evaluating talent and identifying business-critical positions.

Working either by themselves or in concert with HR, these managers complete individual profiles, reflecting each
person’s career history, business accomplishments, strengths, and development needs and then rating them in both
performance and potential.

Potential can be an extremely subjective determination - HR should provide participants with definitions for each
rating to ensure consistent application across the organization

Potential ratings could be defined as follows:

 ⎯ High Potential
⎯ Expandable
⎯ Well-Placed
⎯ Issue
⎯ Too New to Rate

Using the ratings and information from the individual profiles, business leaders then populate a performance and
potential grid, placing their people in the appropriate quadrants.

• Stage 3 : One- on- one Discussions

People are making assessments of individuals based on data they have or perceived situations.

To minimize this subjectivity, it is important to take input from a variety of people to ensure that all relevant parties
are generally in agreement as to who are the organization’s high-potentials and how they should be developed.

These discussions could simply take place between HR and the business leader or they could be held between direct
reports, such as the vice president of finance and the chief administrative officer.

Together, they review the high-potential profile, as well as performance and potential grids on each future leader.

Following the discussions, replacement charts are drawn up, reflecting each business-critical position, potential
successors, and their current state of preparedness.

Figure 17-4. Replacement chart

• Stage 4 : Group Meetings

In order to further confirm that those who have been selected are the right people to be developed as future leaders
of the organization, group sessions are held in which business leaders meet with their boss and colleagues to review
and debate the decisions that have been made up to this point.

The goal is to bring business and people issues together and determine if there are any gaps, issues, or concerns.

With the assistance of an HR facilitator, such changes can be made quickly, keeping the process moving along.
 • Stage 5 : CEO discussions

After everyone has agreed on the selection of the organization’s future leaders, it’s time to make the case to the CEO
and obtain his or her input.

HR facilitates a series of discussions between individual business leaders and the chief executive officer.

CEO reviews the designated high-potentials and their development opportunities within the company.

• Stage 6 : Ongoing Review

A pool of successors has been chosen and is being developed.

Succession-planning process remains very fluid, as leaders move into top positions and new talent joins the ranks,
while others leave the organization for other opportunities.

It is critical to conduct regularly scheduled reviews on a quarterly, biannual, or annual basis.

Critical Success Factors

Hewitt’s “Top 20 Companies for Leaders” study revealed that CEO involvement ranks as one of the most significant
factors driving the success or failure of a leadership-development program. In top companies for leaders, senior
management consistently demonstrates its commitment to the process of developing leadership talent in the form of
tangible, visible actions.

When a CEO is actively involved in talent management, the company’s average return to shareholders over a three-
year period stands at 22%, compared with a negative 4% for those companies with no direct involvement from the
top.

Input from business unit leaders is helpful as it assesses the effectiveness of its current program.

Experiential training to help develop high-potentials into successors. Traditional classroom learning + on-the-job
development (application of learnings is immediate; permanently change in behavior in the desired manner)

Dilemma

Companies avoid telling employees they’ve been identified as potential successors because they want to avoid making
an implied promise of continued employment or advancement.

⎯ outweigh the negatives.

⎯ High-potentials should be granted substantially greater compensation opportunities, whether in the form of
base pay, stock options, or other incentives.
⎯ Organizations can build a reputation as the kind of place leaders want to work.

A strong leadership brand means:

Able to attract the best leadership talent—without paying a premium.

Retain the best talents – as they receive great opportunities to develop

Business results improve as leaders become more engaged by their jobs and the opportunities.

Chapter 18 Developing Superkeepers, Keepers, and Solid Citizens: Measurement Makes a Difference

Superkeepers: very small group of individuals who have demonstrated superior accomplishments, who have inspired
others to attain superior accomplishments, and who embody the core competencies and values of the organization
should be optimally developed and should receive a larger proportion of the training budget.

Keepers—those individuals who exceed organization expectations—and Solid Citizens— those people who meet
organization expectations—should receive a lesser proportion of the budget but still be appropriately developed to
continue to add value to the organization.

Page 200 corporate university

Figure 18-1. Corporate universities linking learning and strategy

The concept of the corporate university has been around for decades. In the 1930s the IBM Schoolhouse at Endicott,
New York was launched. With the IBM mantra, THINK, placed above the entrance, field, factory, and office workers
would arrive to do just that—think and learn . In comparison with the traditional university, which incorporates a large
campus, tenured faculty, and various academic programs, the corporate counterpart is as much a process as a place.
Through the corporate university, employees, and sometimes customers and suppliers, participate in learning
experiences necessary to improve job performance and enhance business impact.

These corporate universities can make a substantial difference in preparing Superkeepers and other employees for
future challenges.

CUs are set up for a variety of reasons, but most of the organization have the same basic need:

Organize training

Start and support change in the organization.

Get the most out of the investment in education.

Bring a common culture, loyalty and belonging to a company.

Remain competitive in today’s economy.

Retain employees.

Activity Versus Results

a shift to results-based processes - training programs were assumed to work

A critical change is the way in which corporate universities report results. In comparison with traditional reporting of
input measures (number of participants, number of programs, etc.); measurement and evaluation = participant
reaction, how much they learned; value of program contribution = non-existent

today organizations are developing output data—participant reaction, amount of learning, change in job performance,
level of actual application of skills and knowledge, change in business measures, ROI, and intangible benefits.

Reporting these data in a scorecard format provides evidence of overall program success from the participant,
organization, and financial perspective.

Why a Scorecard?

A scorecard approach to reporting results provides critical information to the client group, including top executives. A
score-card can provide a quantitative and qualitative measurement of the contribution of a corporate university to
the training and development of each employee group.

Although there are many stakeholders, two broad groups of customers are served by the corporate university: the
consumers and the clients. The consumers are the participants involved in the process. The clients are those who fund,
support, request, or approve programs.

Consumers

The corporate university staff needs immediate information from the consumers in the form of feedback about the
processes and programs – to know the extent of learning new skills & knowledge. Improvements are often identified
to enhance future results. Process improvement is a key focus of the data needed by the corporate university staff.

+ data on application, impact, and ROI in order to:

Enhance the perception of the corporate university

Build credibility for the corporate university process with all stakeholders

Justify future expenditures - contribution is significant and the payoff is appropriate

Enhance management support.

Provide information for benchmarking with other corporate universities so that best practice comparisons are
possible.

Clients

The client group is interested in application, impact, and ROI. This group is interested in obtaining significant behavior
change from employees as they interact with customers, suppliers, and team members.

They are also interested in the actual linkage to business impact, to have assurance that the programs are helping the
operating units achieve their goals.

There are six major concerns about the accountability of corporate universities. These translate into specific types of
information needed by senior managers.

• The impact of the university at the macro level, reflecting the results of all programs, rather than the micro
level, reflecting the results of an individual program.
• Brief progress reports rather than detailed impact studies, at least for the majority of programs.
• The connection to business objectives and assurance that the university is making a contribution and driving
certain business improvement measures.
• The overall contribution of the corporate university, but not necessarily the ROI for the entire university.
• Different types of data, both tangible and intangible, taken at different time frames from different sources.
• The alignment of the corporate university programs, strategic objectives, and operating goals.
Developing the Scorecard Data
The fundamental framework by which to categorize evaluation data is based on the work of Kirkpatrick (1975)
and enhanced by Phillips (1995).

Building the Scorecard

Reaction, Satisfaction, and Planned Action (Level 1)

To compare one program with another, it is necessary to capture input on several specific Level 1 items. While specific
items can vary with the corporate university, eight items are suggested:

•Relevance to job

• Usefulness of program

• Amount of new information

• Recommendation to others

• Importance of information
• Intention to use skills/knowledge

• Effectiveness of facilitator

• Effectiveness of delivery system

Learning (Level 2)

Some learning measurements are very formal, such as objective tests, simulations, and structured skill
demonstrations. Others are less structured and informal, such as self-assessment, facilitator assessment, and team
assessments.

percentage of improvement

Issues addressed in self-assessment are;

• Understanding of the skills/knowledge

• Ability to use the skills/knowledge

• Confidence in the use of skills/knowledge

Application and Implementation (Level 3)

standard follow-up items when assessing changes in skills and knowledge include:

• The importance of the skill/knowledge in the work (after applied on the job)

• The frequency of use of new skill/knowledge (on the job)

• The effectiveness of the skill/knowledge (as applied on the job)

The first of the four measures is

• to capture the percent of the action plans completed by the desired follow-up time.

• captures the barriers to skill and knowledge application on the job.

• The enablers are those processes that enhance the transfer of learned skills and knowledge

• A management support profile reveals the extent to which immediate managers support the programs

Business Impact (Level 4)

Percent of Programs Evaluated at This Level

Linkage of the program to business measures can be captured from a follow-up questionnaire. (List of Top 10)

Types of Measurement Techniques

Types of Methods to Isolate the Effects of Programs

Investment Perception

Return on Investment (Level 5)

Percent of Programs Evaluated at This Level

ROI Summary for Each Study

3.Methods of Converting Data to Monetary Values

Fully Loaded Cost per Participant

Intangible Measures

List of Intangibles (Top 10)

How Intangibles Were Captured

TalentReservoir® has three major components. These are:

1. Designing and building a TalentReservoir® solution.

2. Capturing the TalentReservoir® solution in a software package.

3. Implementing an integrative TalentReservoir® process

Talent Management Assessment Tools

1. Performance Appraisal

2. Potential Forecast - A prediction of how many levels (organization/job) an employee can progress within an
organization based on his/her past/current performance appraisals, training and development needs, career
preferences, and actual and projected competency levels.

3. Measurement Scales for Performance and Potential - The most common scale for performance measurement is:

greatly exceeds expectations (5), exceeds expectations (4), meets expectations

(3), below expectations (2), greatly below expectations (1). The most common

scale for potential assessment is: high potential (5), promotable (4), lateral (3),

marginal (2), none (1). Our conclusion is that most organizations believe that

simpler is better. These scales are simple, but they apparently achieve accurate results

4. Core/Institutional Competencies

5. Mapping and Weighting Competencies

Behavioral Benchmarking

When organizations are faced with change or new situations, they often will sponsor more rigorous studies of their
best people’s actions, how these best people compare with others in the organization or with stars in benchmark
companies. Behavioral benchmarking is probably the most recent evolution from the competency approaches that
spurred on all the attention to this area. When a new CEO joined a fast-growth software company, he commissioned
a study of how his stars compared with outstanding performers in other fast-growing companies.

Chapter 28 Leadership Coaching

leadership coaching as a personal development process designed to enhance a leader’s success in achieving his or her
professional objectives within the context of an organization’s values and business goals. Benefits -

• Retention of Talents
• Increase in productivity
• Development of high potential performers
• Job satisfaction
• Achievement of organization objectives.

Coaching Works: Reaping Returns on Investment (310)

A synergistic and focused relationship leads to growth and change

Clear goals and a focused endeavour lead to better outcomes.

Coaching is contextual

Coaching is a systemic intervention with multiplier results

Coaching focuses on using new skills and more effective behaviours

Executive development occurs through insight and with practice-not theoretically

Coaching helps leader develop emotional intelligence

Coaching impacts the bottom line.

Seven Key Elements of Coaching “The Seven C’s of Successful Coaching.”

Context. The coach is able to provide appropriate and meaningful support by understanding the issues within the
context of the organization’s business environment, culture, and competitive demands.

Clarity. The participating leaders are able to clarify objectives, expectations for change, and how the coaching process
will be conducted.

Commitment. The organization is committed to supporting the leader and the leader is committed to working for
change.

Coachability. The presenting issue and the people it affects are amenable to coaching, and the situation can best be
addressed through one-on-one coaching. In reality, there are some situations where coaching would not be
productive, and a responsible coach knows when to turn down an engagement on the basis of the coachability issue.

Courses of Action. The coach and the leader establish a development plan with clearly stated objectives and realistic
strategies to help the leader become more effective.

Confidentiality. A “must” of trust-building.

Chemistry. Leader/coach rapport and compatibility characterize interactions and secure the relationship.

When leadership coaching meets these “7 C’s” criteria, transformational learning is not only possible but probable.
Some of the results are subtle; some are dramatic, including:

• Incremental improvements, such as upgraded skills, new practices and behaviors, doing things better, and relating
to others with greater self-awareness.

• Reshaped patterns of thinking, such as a revised frame of reference, a change in assumptions about how things work
or how one sees the world.

• Personal transformation, such as a shift in one’s point of view about “who I am” and “how I am.”

The Coaching Process (312)

Categories of Leaders and Attributes of Coaching

Different kinds of Leaders who are at different levels of development or potential need different kind of coaching

Degree of impact the leader is having on the organization which is the combination of level or position in the
organization and his /her stage of professional development.
Emerging Leader - meet succession needs, to groom a high-potential leader, or to help drive the organization to a
different plane. Expected outcomes might include retention, readiness for upward mobility, and improved chances for
success in the next position. Coaching conversation include –

• Self-understanding and insight through feedback

• Exposure to new behavioral concepts and broader organizational awareness
• Exposure to how the business world works at the top
• Learning organizational and individual tolerance to change
• Learning to share the spotlight

Developing Leader - The business case for coaching intervention is: to address performance issues that are impacting
the business. The desired outcomes are improved performance, retention, and strengthened relationships with key
stakeholders, such as the board. Coaching conversation include –

• Gaining self-understanding and insight

• Changing specific behaviors, notably addressing derailment behaviors
• Addressing the immediate concerns of the leader within the context of organizational issues
• Facilitating stronger bonds with the boss, peers, directors, and others
• Offering sounding-board opportunities to air frustrations, successes, and challenges to the
corporate culture

Strategic Leader - new leaders or to build a more united executive team. The expected outcomes might be to generate
more incisive strategic thinking, to improve senior-level bench strength, and to retain valued talent. Coaching
conversation focuses on:

• Thinking more strategically

• Building specific skills, such as constructive confrontation
• Developing leadership skills
• Providing a sounding board

Chapter 31 Integrating compensation with talent management

Talent value chain

Super keepers:

Create magnetic culture to attract, retain and energize people representing top talent – 3% - 5% demonstrate superior
accomplishments that reinforces the core value and desired culture of organisation - Accomplish desired what and
how of success and help other to do the same

Keepers:

Maintain an environment and reward programs that recognize those who make continual difference to org. – 25% -
30%, demonstrate leadership capabilities and exceed expectations of both job accountabilities and core competencies.

Solid Citizens:

Providing rewards to baseline contributors and create an environment for motivating these individuals to move up the
value chain - Constitute 65%, who meet expectations w.r.t. core competency requirements and job responsibilities

Misfits:

Making tough decision regarding 3%- 5% who do not appear to fit within the orgn., don’t perform as expected neither
have essential competencies- Engage them in special development with close supervision to improve performance,
reassign them to other work where they should show an immediate improvement in performance, or remove them
from the organization.

Principles for compensation plan

Compensation plans need to be tailored to the specific needs and unique characteristics of the organization. It’s always
important to understand the best practices among the top competitors, but if the organization only mirrors other
organizations, it will fail to create a competitive advantage. This requires developing the process and creating the
alignment that suits the strategic requirements of the organization.

To effectively manage and maximize talent, compensation plans need to be expanded and integrated with programs,
tools, and practices that impact the actions of people. - compensation needs to be seen as part of an integrated total
rewards system - well-stocked and finely tuned toolbox that includes cash compensation and equity participation,
employee benefits and services, recognition, responsibilities, and development. - compensation is a critical component
of what helps to shape the actions of people within an organization thus success.

Rewards needs to be meaningful to individual and directly relate to strategy and key drivers of the organization’s
success. Organization need to segment their internal market at macro level (different talent population), micro level
(managers understanding of staff members).

Rewards need to directly support the creation of magnetic cultures - draws people in – stay and contribute - proud of
their workplace and their work product - recommending its products and services to others and their organization

Defining the Elements of Total Rewards

• Salaries, other forms of secured compensation

• Variable pay and opportunity to share in the success of achievements
• Stake in the long-term growth and future of organization through equity participation, career opportunities,
job security
• Investment in one’s development and increasing competencies
• Opportunities to challenging and meaningful work
• The appreciation and recognition of one’s contributions to organization
• The involvement in decisions that impact one’s work and career
• The ability to make meaningful decisions and exert some degree of control over resources commensurate with
one’s role in the organization
• The confidence in the leadership, mission, and importance of the organization in one’s community
• The pride that accrues from being part of a winning organization and one that has high integrity and
commitment to its mission

Integrated Rewards Philosophy: A Blueprint for Success

Typical reward philosophy states – purpose of the company’s compensation plan is to “attract, retain and motivate
our people and provide pay i.e. competitive with market place and consistent with performance achievements”. There
is nothing in these statements that has any meaning to individual employees, provides tools or guidance to make
decisions, or suggests that the organization is different from others in the marketplace. The best reward systems
address people in a holistic manner, both for their membership in the organization and for their performance.

Membership-based Performance-Based

Provided as one joins the organization or assumes a role or reaches Earned directly as a result of individual,
a level that makes one eligible for certain programs team, unit, or organizational performance

Distinguish one organization from another and can create some of
the critical elements of magnetic culture
Rewards are Earned, awarded based on
achievements or demonstrating certain
behaviors or actions that are defined
according to the strategy, goals, and business
needs of the organization
 Based on employment Dependent on achievement

Chapter 32 – Compensating Superkeepers: Talent Your Company Needs to Thrive

A Superkeeper talent-and-reward strategy must have at least two objectives:

• Primary Objective: Customizing a Superkeeper definition to match our specific strategic/tactical business goals.
Making company’s talent model and rewards ultra-attractive to the people we want.

• Secondary Objective: Continuing growth and value-added development of our company’s Superkeeper core. Adding
value by facilitating Superkeepers to produce needed performance outcomes and to continue to grow essential skills.

Rewarding Superkeepers - excludes

Business-first talent-and-reward model - People count more to an organization than ever, and that is why a strong
business emphasis is a talent-and-reward priority. For employees to win in a win-win relationship, the business itself
must prosper.

Total reward components (380)

Branding Rewards (370)

Making your specific company attractive to its most essential talent.

Two Emerging Reward Trends

1. Customize Rewards: Enable business unit managers to customize reward and talent strategies to match local needs.

2. Delegate Reward Accountability: Make managers at the BU level responsible for effective reward budget
management in their area of responsibility. Managers are accountable for focusing on Superkeepers in their own
organization.

Manager’s “Tool Kit” for Superkeepers

Tool #1: Know Talent/Reward Strategies - managers must know the company reward programs and policies inside and
out & value of talent.

Tool #2: Keep Talent Aligned with Goals

Tool #3: Deliver the Scarce-Talent Message

Tool #4: Manage Superkeeper Career Plans

Chapter 33 Linking Competencies to Performance and Pay*

Chapter 35 Using Information Technology to Support a Talent Management Process

Today’s HR ethos was cultured in yesterday’s business environment—the gray days of supply chain software and
Enterprise Resource Planning (ERP), predominated by cost consciousness. A belief that technology offered a magic
solution to cost reduction through process automation.

emergence of enterprise software for HR – could save money through software to manage people supply – Software
has so far helped companies address some of the most basic administrative challenges: turning paper résumés and
employee records into a digital format etc. – but the reduction of face-to-face interaction. While the efficiency of
talent management may be on the rise, the quality of the in-person experience is on the decline.

The Shortcomings in Today’s Approaches

The bulk of the technologies deployed by HR today consists of portals, intranets, interactive voice response (IVR)
systems, applicant tracking systems (ATS), human resources information systems (HRIS), and a small number of point
solutions for managing everything from contractor acquisition to the performance review process. Yet they don’t
provide insight to either the corporate user or the individual whose personal and career data the system helps manage.

Data is rarely shared among them – each system only contains data from one or two stages in the employee lifecycle,
or few key transactions (life events, address changes, etc.).

Part of a faceless corporate entity that barely differentiates people from the desk chairs.

e-HR has generated cost savings

for the company, it has also
reduced the quality of the
candidate/employee experience.

recruiting guru Peter Weddle coined the term “digital strangers,” he was referring to the condition of the anonymous
masses who struggle in vain to make a personal connection with their current or potential employer. Adopting and
leveraging technologies and approaches that will both ensure continued efficiencies & improve the individual’s
experience - employer’s ability to bridge the present-day gap between benefit to company and benefit to individual
by focusing more on the “engagement.”

Characterizing Superkeeper Engagement: Focal point for HR strategies because it shapes the employment nexus—
the force that binds individual to company. Survey (2001) U.S. and Canadian workers conducted by HR consulting firm
Towers Perrin, 56% of employees are open to changing jobs at any given time. The employer is always free to break
the employment agreement, but legal regulations and the cost of unfilled positions and losing top talent creates a
strong disincentive to do this. Thus, the agile Superkeeper holds a position of power. Best strategic interest to optimize
the engagement and strengthen the employment nexus by:

1. Identifying the best people (potential contributors) outside the company

2. Enticing them to join the company

3. Developing their skills (once they’re hired) and earning their ongoing attention

4. Re-examining everyone inside the company who has the potential to grow

5. Sustaining the engagement even after an individual has left the company

Principles of Successful Engagement Creation

Personalization (candidate’s) delivering relevant information about a specific job opportunity on a timely basis to
demonstrate a keen interest in an individual’s candidacy. (Targeted e-mail messages, Websites, and online resources)

Not on tactical level but feeling fully invested in, and committed to, the company’s mission.

By compensation and benefits - only a small piece of the overall employment offer. Superkeepers “Complete
engagement” - “Employee Value Proposition” (EVP) – compelling offer - clear perception of a career path, the nature
of the work environment, opportunities for learning and development, teamwork, and innovation. Customization –
consumers – This applies to employment to the extent that every employee is a consumer of the employment
experience and has the freedom to choose.

Continuousness employees have an increasingly short attention span - Complacency or even plain lack of awareness
on the part of an employer can quickly lead to a loss of interest on the part of a Superkeeper. Continuous
reinforcement of the EVP through different channels—employee self-service, the Intranet, corporate updates, the
corporate Web site, HR programs, and managers - “re-recruit”

Candidacy treating every individual as a candidate, all the time. applicants rejected for one position now might be
perfect for another position now or in the future – provide actionable feedback to rejected applicants. Every new
requisition must be posted internally.

Pragmatism every effort means that resources are allocated to provide the greatest overall return for the company
(not always purely economic).

Two Paths: Alienation and Intimacy

The industry is now facing two potential paths. alienation and anonymity & personalization and intimacy

The Role of Software and Technology

Chapter 36 – Developing a Talent Management Information Strategy

Purposes of Talent Management Information Systems

1. Employee Competency Assessment. It is essential as part of talent management to rate employees on a variety of
competencies or skill sets. (supervisory rating systems or 360-degree surveys in which supervisors, employees,
subordinates, and clients participate in the ratings process). ECA can be used for assessing an individual, a division, or
an entire company - correlated with performance data like sales or cost control to assess the validity of their
relationship.

2. Succession Planning. By surveying replacements for incumbents and employees’ career paths, succession plans can
be developed.

3. Training and Professional Development. By gauging corporate training needs, larger-scale internal programs can be
created as well as career guidance programs.

4. Compensation. Employee and division ratings and base compensation and incentive programs can be integrated
within an overall talent management system (pay strategy and set of administrative guidelines to drive pay practices
based on employee assessment.)

The Race to Create a Market (430)

Enterprise Resource Providers

• Areas of strength: Demographic and basic human resource activity monitoring

• Areas of weakness: Ease of implementation

Customer Relationship Management

• Areas of strength: training, surveys, sales information management

• Areas of weakness: very difficult to implement, requires buy-in at all levels of the organization

Management Consultants

• Areas of strength: integration of employee information into reports, ease in getting started, lower cost

• Areas of weakness: not a real-time solution, limited data mining and sorting capability.

Talent Management Information Strategy

1. Project Statement. Action plan based on the management needs of the organization. Includes project mission and
list of project stakeholders.

2. Report Components. Listing and description of components that will be incorporated into the system. Can include
succession planning, performance and potential distributions, career plans, and training and development needs.

3. Data Flow Chart. Description of base information and its dissemination through reports. Includes demographic and
evaluation or assessment data.
4. Management Plan. Includes responsibility for inputting data, for designing changes to the system, for giving
permission to view reports.

5. Analysis of Existing Systems and Request for Proposals. Analysis of existing human resources information systems.
Request for proposals is written by company to help decide which software strategy to pursue based on scenario
results

Talent Management and The HRIS Solution To find, develop and keep talent, companies need to implement
comprehensive strategies that address every step of the talent‐management life cycle:

• Recruiting structured online recruiting system with immediate, anytime access to job applications. HR can design a
compensation package tailored to what is most important to the prospective employee.

• Onboarding Automating communication and filling out forms, alerting new employees to onboarding needs, Tracking
new employees’ progress getting up to speed, providing a personal page where employees can see their own data

• Performance Management: In review, complete questions online through self‐service. All parties involved in the
review have access to information that can help their review, such as discipline history, training courses completed,
goals accomplished, certifications and previous reviews.

• Training and Development: developing competencies in employees so that they have a more agile workforce -
setting up courses, enrolling employees and developing career paths.

• Needs Assessment (Gap Analysis): With an HRIS, companies get a bird’s eye view of their entire workforce.
They can perform two types of needs assessments—those for individuals and those for the workforce as a whole.

• Succession Planning: Companies can plan for changes in individual positions and also changes in their
workforces as a whole. They can look at their assets and develop their workforces into what they want.

An HRIS can 1) serve as a primary tool for improving communication with applicants and employees, 2) help engage
employees, and 3) provide structure for the company’s talent‐management strategy.

HRIS products like SPECTRUM’S iVantage® automate everything related to HR in a single web‐based software system.
These systems enable companies to track, manage and analyze data for all employees from applicant to retiree. They
automate workflow to improve efficiency and, with powerful reporting tools - provide a complete picture of a
company’s workforce - better strategic planning.

What an HRIS Offers

Communication improve communication of HR and company strategies, reduce time and money spent on paper
documentation and significantly decrease HR call volume - employees can access that vital information at any time -
A web‐based HRIS, which provides immediate answers and 24‐hour access, can serve as the primary vehicle for
communicating with applicants and employees.

Engagement Impact of their work? – Deserve the compensation? – respect? – opportunities for personal growth?

Structure HRIS provides the structure around which a company can implement its talent‐management strategy

Steps in HRIS

Inception of idea: The need of the organization to have HRIS software must be realized and agreed by the top
management. It is an investment.

Feasibility study: As this is an investment the feasibility of HRIS must be assessed. It covers the following areas

• Scope of the software • Future benefits after implementation • Potential software developers’ assessment • Cost
estimate • Value addition to business • ROI calculation

Selecting a project team: Implementation of HRIS is a project as it requires ensuring budgeted cost, specific timeline
with quality delivery. Successful implementation largely depends on capability and effort of project team (both HR and
IT.) Involvement of senior managers
Defining the requirements: Some organization may want to develop the payroll module while others may want more
modules to be developed. It all depends on the affordability and plan of the concerned organization. At this stage the
company HR policies and processes must be analysed and defined rigorously.

Vendor analysis: Selecting the right software developer is another challenge. The capability, track record and good will
of the developers must be taken into consideration. The requirement of the organization must be shared with the
developers clearly without ambiguity. - clear understanding about the requirement - offer that includes cost and
specific timeline for project completion.

Package contract negotiation: After getting the final offer from the vendors, the decision of work order will be finalized
based on cost and quality actors. Then the contract will be signed with the software developers. The development
work will start then. Company needs to monitor the development work time to time to ensure on time quality delivery
of the project.

Training: First, the members of the project team are trained to use the HRIS. Toward the end of the implementation,
the HR representatives will train managers from other departments in how to submit information to the HRIS and how
to request information from it.

Tailoring the system: After finalizing the system requirement specification, the design of the software will be initiated.
The design should be shared with the company to identify improvement areas.

Collecting data: At this stage required data to enter in the software will be collected - team of HR- Data validation

Testing the system: Once the system is developed with data the testing is required - User Acceptance Test - At this
stage the users use it and try to check if there is any gap between requirement and the delivery of the software. If the
test is okay then the final delivery is given to the company.

Starting up: After the User Acceptance the software will be installed in user’s PC or web as per system configuration
and requirement specification

Running in parallel: It is a safe stand to run the existing process whether it is manual or software and the new software
run in parallel. In case of any malfunction of the new software, the process will not get hampered. At least one full
cycle of the process needs to be run in parallel to avoid any technical hitch.

Maintenance: Once the software has been installed, regular maintenance and performance monitoring is essential.
For effectiveness annual maintenance contract can be signed with the software development company.

Evaluation: After running the software for a certain period of time the performance evaluation will be done. What
value the software has added since its inception needs to be evaluated.
Chapter 29 Coaching the Superkeepers

Super keeper coaching - a company-sponsored “perk” for top high-potential employees, a customized development
process intended to accelerate effectiveness at work – based on a collaborative relationship among the employee,
boss, HR manager, and an executive coach -helps them handle the important transition points in their careers -
assimilation upon first joining a company, stretch inherent in roles with considerable increase in scope, acceleration
for speeding up their evolution as top leaders, and introspection when they indicate the need to contemplate what
they really want to do next career-wise.

Factors that distinguish the coaching of super keepers

• Holistic Approach- Coaches have the inclination, skill, and courage to address the critical intersections
between work and personal priorities in ways that are appropriate and helpful.
• Deep behavioral insight - Superkeepers are often interested in a deeper, psychological look at themselves as
a way of both enhancing self-knowledge and increasing self-management.
• Active involvement of top executives - coaches identify ways to increase their clients’ direct interaction with
top senior executives – reciprocal learning
• Sustained relationship with coach - coaching needs to be a boundary-less process—not a contained program

Meta Themes Three meta themes are central to a conceptual understanding of excellence in the coaching of
Superkeepers. These meta themes are traction, trust, and truth-telling.

Traction

Rightness of coaching: not all super keepers are motivated to participate in the coaching process & coaching is not
the right development resource for every Superkeeper. - truly motivated to participate

Good timing and quality time for coaching: individuals must have quality time to immerse oneself in the coaching

Participation in choice of coach: probing on these factors during selection of the coach -

• experience with other super keepers

• professional credibility
• methodology
• handling of confidentiality
• assessment of what would be helpful
• chemistry
• the ability to form a strong connection
• sound coaching methodology

A collaborative model: coaching is best done with the collaboration of the super keepers’ boss, human resource
partner and the coach.

Customization: the coaching of every super keepers must be done to suit his individuals needs to make his
performance more effective, it consists of:

1)data gathering

2)feedback

3)coaching

4)consolidation

Maintaining Momentum: timeline variation

Trust

Trust here talks about reciprocal trusting not just between the coach and coachee but also the collaborators such as
the super keeper’s boss and the human resource partners.
Confidentiality: trust factor - coaches who work from a perspective of the executive as the client (versus the
organization as client) - faster and more trusting coaching relationships. Seasoned coaches discover how to work from
this perspective—satisfying both the coached executive and the sponsoring organization.

Emotional competence: awareness of and the ability to manage one’s emotions.

Dimensions of it are: SO SMART (self-observation, self-management, attunement to others, and relationship

traction)

It helps the coach:

• to maintain objectivity about the client

• seize opportunities that link the client work and personal realities.
• proceed with courage to make interpretations that deepen behavioural insights
• attuned to opportunities for client exposure to senior management.

Additional trust aspects:

openness of company collaborators

boundaries of confidentiality.

Truth Telling

An accurate read on how super keepers are perceived in the organization.

If positive it deepens the affirmation and becomes an invaluable resource of increasing locus of control. If negative it
helps in focusing on the coaching agenda. If it’s mixed, it can ignite an honest appraisal of truth and clue about issues
that need attention.

It acts as a “double-mirror”

The critical questions in accessing truth-telling:

• will the collaborative partners be fully candid?

• is the coach ready for tough feedback from his client?
• how courageous is the coach?
• is the coach willing to give tough feedback to the company?

Chapter 19 Allocating Training and Development Resources Based on Contribution

Segmentation, that is the division of the workforce into parts that are treated differently, is fundamental to talent
management. Without segmentation, managers would treat all employees as equally valuable—regardless of
performance, competence, potential, or other characteristics that distinguish one employee from another. -
organizational resources are scarce and need to be allocated most heavily in places that will have the greatest payoff.

Purposes of segmentation

• Increase the ratio of top performers to average or poor performers

• Increase bonuses for top performers to reward and create incentives for better performance overall
• Reduce unwanted turnover
• Close skill gap or correcting skill mix
• Attract enough employees (employee value proposition)
• Reduce surplus employees

Criteria for segmentation (222)

Determining Employee Segments that require analysis

Specific talent management problem will offer important clues about specific employee segments.

The criticality of employee segments to firm’s business strategy will always suggest some key segments

new technology is changing the way that firms come to understand their employee segments and talent management
issues. PeopleSoft’s workforce analytics module - facilitates data mining in human resource data for comprehensive
and sophisticated analyses.

Matching Segmentation Purposes and Criteria