A Comprehensive Project Report On

3 Dimensions of Talent Management Job Effectiveness, Employee Satisfaction & Leadership Development
By

RAJESH HANSRAJANI (097030592009) SHARAD SINGH (097030592099)

Submitted to

GUJARAT TECHNOLOGICAL UNIVERSITY

Under the Guidance of

Ms. PARUL BHATI

ATMIYA INSTITUTE OF TECHNOLOGY & SCIENCE, RAJKOT

Department of Management
Batch: 2009-2011

DECLARATION We undersigned Rajesh Hansrajani and Sharad Singh, the students of Master of Business Administration, Atmiya Institute of Technology & Science, hereby declare that the Project work presented in this report is our own work and has been carried out under the guidance of Ms. Parul Bhati, Department of Management, Atmiya Institute of Technology & Science, Rajkot.

Date: Place: Rajkot (Rajesh Hansrajani)

(Sharad Singh)

ii

ACKNOWLEDGEMENT At the outset of my report I would like to express my gratitude specially to our project guide Ms. Parul Bhati and other faculty members for providing us an opportunity to carry out our Research Report and guiding us throughout the completion of the report. We are obliged to all the industry persons here in Rajkot who has guided us in our project work and provided us valuable time of theirs and encouragement throughout our project work, naming a few Mr. Parakramsinh Jadeja (Owner Jyoti CNC Automation Pvt. Ltd.), Bhikubhai Virani (Chairman, Balaji Wafers Pvt. Ltd.), Mr. Vinesh Patel (Orbit Bearings India Pvt. Ltd.), Mr. Suresh Santoki (Chairman, Amul Industries Pvt. Ltd.), Vijaybhai Shrimankar (Pelican Rotoflex Pvt. Ltd.), who provided us permission to carry out research work in their organization. Finally we would like to acknowledge our thanks to everyone who directly or indirectly contributed in our Research Report.

iii

ABSTRACT
In this competitive world, managing skills, competent employees and creating competent workforce has become a challenge in the manufacturing industry or any other. Those who are good at this know very much how to take the competitive advantage out of it. Talent management practices have become a buzz word for manufacturing industry. The firm practicing Talent Management know the impact of Talent management practices on Job Effectiveness, Job Satisfaction, Leadership development and also its effect on productivity. This research is carried out to identify the trends and types of Talent management practices followed to develop the KSAOs (Knowledge, skills, abilities and other qualities) in the employees to make them competent and how practices are positively related to the variables like Job Effectiveness, Job Satisfaction and Leadership Development. These results of the Regression analysis And Analysis of variance showed the positive relation of Talent Management Practices on these three variables.

iv

Table of Content
* College Certificate.. i * Declaration..... ii * Acknowledgement. iii * Abstract. iv

Chapter 1: Introduction
1.1 Manufacturing Industry in India: An overview.. 1 1.2 Company Overview........ 3

Chapter 2: Conceptual Framework

2.1 Research Area. 8 2.2 Theoretical Framework... 8 2.3 Conceptual Model of the research 25

Chapter 3: Review of Literature....... 26 Chapter 4: Research Methodology

4.1 Research Problem. 31 4.2 Research Objectives. 31 4.3 Hypotheses... 31 4.4 Research Design... 31

Chapter 5: Data Analysis & Interpretation.. 34

Chapter 6: Conclusion
6.1 Managerial Implications of the research.. 45 6.2 Limitations of the research... 46 6.3 Scope for Future Research........46 * References.... 47 * Annexure * Questionnaires ..... 49

List of Figures, Tables and Charts

Figure 1 Talent Management Returns. 16 Figure 2 Talent Management Platform 20 Figure 3 Talent Management Process. 21 Figure 4 Conceptual Model. 25

Table 1 Chi- Square Table. 35 Table 2 Correlation Analysis. 36 Table 3 ANOVA of Effectiveness of Talent Management Practices.... 37 Table 4 ANOVA of Job effectiveness & Productivity improvement 38 Table 5 ANOVA of Employee Satisfaction.. 41 Table 6 ANOVA of Leadership Development.. 43

Chart 1 Effectiveness of Talent Management Practices 37 Chart 2 Job effectiveness & Productivity improvement 38 Chart 3 Employee Satisfaction.. 41 Chart 4 Leadership Development.. 43

Chapter 1
1.1 Manufacturing Industry in India: An overview

Introduction

Manufacturing industry is the engine of economic growth of a nation. It includes all activities in product life, starting from customer inputs for concept design, through conversion of materials and ending with product disposal. These activities provide gainful employment, create the products required to maintain and improve the standard of living and generate the wealth required for future development. The manufacturing industry in India has all the qualities which enhance economic development, increase the productivity of the manufacturing industry and face competition from the global markets. The Manufacturing industry in India is believed to have the potential of improving the economic condition of India.

Indian manufacturing industry: Research findings1

Studies conducted on the manufacturing industry have concluded that India has a working population of 75%. Out of this, only 600 million have acquired education till middle school. Due to this reason, the manufacturing industry in India, which is labor intensive, can provide the requisite number of employment units in the country. Studies have indicated that the productivity of the manufacturing industry in India is approximately 1/5th of the productivity in the manufacturing industry of United States of America. It is about as compared to the productivity levels in South Korea as well as Taiwan. Labor productivity has escalated only to a small extent in case of India in comparison to United States of America, on the contrary, labor productivity has increased manifold in countries like Taiwan and Korea.

http://www.economywatch.com/world-industries/manufacturing/india.html

Manufacturing industry in India and exports:

Exports of manufactured goods in India accounted for 75% in comparison to exports of manufactured goods all over the world. Owing to the performance manifested by the export sector in India, the scenario indicates that there is less competition in the manufacturing segment. Absence of competition is also established by the fact that in spite of reducing the tariff in the early and mid 90s, India continued to be one of the protected economies of the world. Contribution of India's export towards international market grew from 05% to 0.7% during 1990 to 2000. During the same period, Malaysia, China, Thailand and South Korea, registered almost double increase in exports.

Manufacturing Industry of Rajkot

In wake of the ongoing auto boom, the rising momentum in manufacturing activity in the four Gujarat Industrial Development Corporation (GIDC) areas in Rajkot is tangible. Almost every unit has wanted notices posted at the factory gates, to hire workers for shop floor etc. A decade back Rajkot was considered to be the lowest cost producer for iron castings. It had a flourishing ecosystem in which castings manufactured using pig iron fed the diesel engine manufacturers who in turn supplied engines primarily used for agricultural purposes. There were 450 foundries manufacturing castings and supplying to around 200 diesel engine manufacturing units in Rajkot a decade ago, according to Rajkot Engineering Association (REA) estimates. Each diesel engine manufacturer was making around 40,000 units monthly to meet the growing demand. Today there are just 30-35 units producing diesel engine units and even large sized units do not make more than lakh units in a year. This slump is largely attributed to cheap Chinese imports & has stalled diesel engine manufacturing activity in Rajkot, other engine manufacturers are straining under high tax and excise structure in addition to falling demand for low horsepower engines.

1.2 Company Overview

1. Amul Industries Pvt. Ltd.
Amul is a powerful combination of Tradition, Ethos and Experience. Today as one, they're smarter, faster and stronger than ever- and determined to become more so. Amul is a leading global manufacturer of automotive components serving almost every major vehicle manufacturer worldwide. Headquartered in Rajkot, Gujarat- INDIA, has state-ofthe-art manufacturing units at various locations in India with teamwork of 2000 plus. The group has created a value based enterprise uniquely positioned to provide customers with innovative solutions that deliver best vehicle performance, quality and value for their product. They've continued to transform themselves through aggressive productivity improvement, leading-edge technologies and sustained customer relationships. Having dedicated themselves on knocking down any barriers that come across their way from reaching the potential, they have moved quickly, decisively and are committed towards creating the group image & customer values. Needless to mention that Amul has already entered the Business of 5Cs namely Connecting rods, Crank Shafts, Cylinder Blocks, Cylinder Heads, and Cam Shafts for the Automotive & Engineering Industry. Amul Industries started its functions in 1988 as a small scale industry; today we are manufacturing 175 different types of Connecting Rods and are considered one of the biggest Connecting Rod manufacturers in India. Within a short span of 15 years the company has been able to touch turnover of 40 corers with more than 400 people working with it. Amul Industries has embarked on a major expansion to double its capacities for connecting rods and crankshafts. The company is also in discussion with a European auto component manufacturer for a joint venture or an alliance to establish a manufacturing facility at a 'suitable' location in Europe.

2. Jyoti CNC Automation Pvt. Ltd.

Jyoti was initiated by Mr. P.G. Jadeja and Mr. S.L.Jadeja in 1989.

Driven by a vision to build the company into a temple of technology through team work, the organization has grown manifold from manufacturing gear boxes for machines to developing precision all-geared head lathe machines and later on sophisticated CNC Machines. Continuous process improvement and fast adoption of State-of-the-art technology has led Jyoti in becoming a leader in innovating manufacturing techniques. Jyoti is respected as A Temple of Technology by the staff and its esteemed clientele, who welcome and worship the new technology. Further to transform the technology-savvy attitude into reality, Jyoti started designing and manufacturing the wonder babies like CNC Turn Mill Centers, CNC Oval Turning Machines (the first in India), fastest Vertical Machining Center of India, etc. Jyoti is proud of the fact that its transition through technology-orientation was destined towards effectively revolutionizing the Indian Industry. This aspect has always been reflected through the company motto. Jyoti is the brainchild of legendary Mr. P.G. Jadeja and Mr. S.L. Jadeja, established in 1989. Driven by a vision to build the company A Temple of Technology through teamwork, the company has grown manifold from manufacturing gear boxes for machines to developing precision all-geared head lathe machines. Later on Jyoti has rightly identified Shift from conventional machines to highly sophisticated CNC machines in the presence of manufacturers. Jyoti was the first company to manufacture CNC machines in Gujarat. It was not an end, there are many firsts attached with Jyoti since then. Jyoti, driven by technology and innovation keeps including new firepower in its arsenal by introducing machines like CNC Turning Centers, Vertical Machining Centers, Oval Turning Center i-SECT and first Indian machines like VMC 40/70 Linear with innovative Linear technology. After the opening up of the Indian Economy, there were great challenges present for Indian companies but Jyoti converted all challenges into great opportunities. Jyoti has even decided to compete at the global level and has taken concrete steps by exporting CNC
4

machines. It has also established distribution networks in various continents around the globe. Jyoti is passing through the trajectory of rapid growth by achieving over 100% growth rate since its inception. Export penetration and inclination has helped Jyoti to establish goodwill among the foreign buyers and distributors.

3. Balaji Wafers Pvt. Ltd.

The journey of Balaji Group started in year 1976 by the member of Virani family for supplying wafers and namkeens to local brands to the patrons of Astron Cinema, Rajkot. Due to the shore supply of that product they decided to make their own product line in year 1982. By the overwhelming retail success they inspired to set a semi automatic plant. Instead of preparing wafers by the traditional frying method this semi automatic plant boosted the quality, taste and more sales also. The fame of taste reached to the whole Gujarat hence it was time to take over the whole Gujarat so that biggest automatic plant of Gujarat came in to the picture. Quenching the demand of Gujarat, Maharashtra and Rajasthan region Balaji Group is now looking forward to march over India. The makers of 'Balaji Group' brand wafers and namkeen food products have deep faith in God & in good taste. Converting dreams into reality it leads them to the biggest potato wafers plant of India. The Balaji plant covers over 85,000 sq. m. area in the outskirts of Rajkot city. Its big taste revenue i.e. turnover touched to the crore rupees milestone. Balaji Group has 90% shares of wafers market and 70% shares of namkeen market in Gujarat. You are invited to travel the past, present and the future or Balaji Group. The wheel of network is devised under the ideal distribution channel network. That ensures to supply fresh product in any corner of Gujarat within 24 hours. You can have Balaji snacks in every 100 meters of are in Gujarat. At Balaji is not just distribution but it is an euphemistic effort of team work. This simple mantra rocked and changed the definition of chip world. Winning the heart by quality and great taste and distributing sufficient dealer margin is a winning strategy
5

of Balaji Group. Its 'Value for money' strategy enables even a kid to buy fresh & healthy food in small prices. Indeed in a neck to neck competition ear one must implement new ideas and balaji group has developed the think tanks who continuously update strategy in the right direction. Think win-win & Stay ahead with us. Balaji Group perceive in growth rather say development to touch the sky. The company will enhance its product range by adding some futuristic and Indian traditional taste company will plan to some extruded snacks and western products to their Global market. Recently company has acquired more space where its entire namkeen unit will be shifed. The future will see more of Bhikubhai Virani as a Chairman, Mr. Chandubhai as a Managing Director, Mr. Kanubhai Virani as a Technical Director & Mr. Keyur Virani as a R&D Director. At Balaji progress is a life line.

4. Orbit Bearings India Pvt. Ltd.

ORBIT Bearings India Pvt. Ltd, are committed for the quality of our product by offering seamless support in the areas of service, manufacturing, procurement and design and continuous improvement in all activities for improvement in the productivity by reducing the waste in supply chain. The Suppliers, Employees and Management is committed to upgrade the indices of performance to touch the heights of optimization. To achieve the goal of customer satisfaction, we at ORBIT are focused on quality, delivery and service of our customer. Establishment & History The Company was promoted in 1990 by professionally qualified and experienced promoters to manufacture Ball and Roller Bearings. Within period of fourteen years the company has established its name in the replacement market as well as Original Equipment Manufacturers.

Other Business Activities of the Group Our group has business activities for manufacturing of agriculture equipment, forgings and building construction. Total turnover of the group exceeds $100 MILLION.

5. Pelican Rotoflex Pvt. Ltd.

Pelican Rotoflex Pvt. Ltd. a technology driven ISO 9001:2000 company was established in 1996. and is a global player in converting machinery business with strong family of 200 plus employees. The company manufactures complete range of printing and converting machinery for flexible packaging industry at their world class facility near Rajkot (Gujarat-India). The total area of 20,000 sq mtrs. with built up area of 10,000 plus sq mtrs. to manufacture to suit the demand of the day. Over the years, this technology culture has built and nurtured a core team of technocrats, managers, industry experts and R&D in the company. And this cream team today creates what is arguably the industry's most advanced range of converting machineries, under the roof of the state-of-the art most modern work-shop. Today the company has more than 200 installations worldwide in more than 15 countries like U.K., New Zealand, South Africa, Nigeria, Kenya, Tanzania, Zambia, Namibia, Ghana, Malawi, Colombia, Iran, Saudi Arabia, Kuwait, and Oman etc. Continuous development and growth led Pelican towards establishing a world-class infrastructure. Today with total land area of 20,000 plus square meters, a state-of-the-art design and manufacturing facilities are located on the outskirts of Rajkot in Gujarat, one of the most vibrant states of India.

Chapter 2
2.1 Research Area

Conceptual Framework

Talent Management practices has great importance in each industry be it Manufacturing, IT, Banking or any other industry. But in a manufacturing Industry the number of work force is quite large. So the questions arise of competent employees. Another question arise how to retain them. In the research the area of research was chosen the Manufacturing Industry in Rajkot region. Rajkot has become a hub for small scale industries to start up their business. In Rajkot most of these firms are manufacturing units. To cope up with this completion the firm uses certain Talent Management practices. To further analyze them the Manufacturing industry of Rajkot was chosen as the Research Area.

2.2 Theoretical Framework

Today's businesses face increased global competition, shifting markets, and unforeseen events. No wonder they are finding it more difficult than ever to attract, develop, and retain the skilled workers they need. Human resources (HR) departments can set the stage for success by hiring and training capable employees. But developing those personnel into dynamic, motivated, long-term participants in the company's processes must be the responsibility of all managementfrom CEO to floor supervisor. Talent management, which incorporates the cooperation and communication if managers at all levels, has become an imperative in the face of today's business challenges. In addition, talent management processes must be more strategic, connected, and broadbased than ever before. Talent-management processes include workforce planning, talent gap analysis, recruiting, staffing, education and development, retention, talent reviews, succession planning, and evaluation. To drive performance, deal with an increasingly rapid pace of change, and create sustainable success, a company must integrate and align these processes with its
8

business strategies. By assessing available talent and placing the right people in their best roles, organizations can survive and thrive in today's increasingly competitive markets. Effective talent management becomes even more important with the forthcoming talent shortage as many experienced leaders approach retirement. Globally, fewer and fewer managers and professionals are ready to fill these leadership roles, and companies worldwide find themselves competing for a smaller pool of talent. Businesses must have the ability to identify the most talented individuals, provide them with the necessary training and experiences, and retain valuable employees in long term. Wise leaders do not leave strategy or the bottom line to mere chance. They also know they can't just hope everything somehow works out with the people in their company. By incorporating comprehensive talent management, an organization can assemble the right people it needs to manage and lead in the future. With HR focusing on hiring, training, and succession planning, talent management is traditionally an HR responsibility. Today's top companies, however, know that a single department's potential effectiveness is limited; the key to a successful program lies with the cooperation of all departments, with all managers across the breadth of their operations. Every manager, no matter what level, plays a role in strengthening an organization's overall talent. For example, line managers who are accountable for getting the work done, are also accountable for developing the people they manage and are fundamental to making overall talent management work. As an individual with leadership and management responsibilities, you play a vital part in your company's talent-management processes. Following are some ways that you can become more involved in talent management and help your organization succeed.

Talent Management
Talent management refers to the skills of attracting highly skilled workers, of integrating new workers, and developing and retaining current workers to meet current and future business objectives. Talent management in this context does not refer to the management of entertainers. Companies engaging in a talent management strategy shift the
9

responsibility of employees from the human resources department to all managers throughout the organization. The process of attracting and retaining profitable employees, as it is increasingly more competitive between firms and of strategic importance, has come to be known as "the war for talent." Talent management is also known as HCM (Human Capital Management). The term "talent management" means different things to different organizations. To some it is about the management of high-worth individuals or "the talented" whilst to others it is about how talent is managed generally - i.e. on the assumption that all people have talent which should be identified and liberated.

Human Capital Management

Companies that engage in talent management (Human Capital Management) are strategic and deliberate in how they source, attract, select, train, develop, retain, promote, and move employees through the organization. Research done on the value of such systems implemented within companies consistently uncovers benefits in these critical economic areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. The mindset of this more personal human resources approach seeks not only to hire the most qualified and valuable employees but also to put a strong emphasis on retention. The major aspects of talent management practiced within an organization must consistently include: Performance management Workforce planning/identifying talent gaps Leadership development Recruiting

10

Talent Management Best Practices2

You have a role in talent management, whether you're a sales manager, plant director, or production supervisor. HR builds the framework and provides the tools, systems, and resources, but you are ultimately responsible for the programs in your department. To better understand your role in the process, ask yourself the following questions: What can I do to develop talent in my division? What competencies are my employees expected to show, and how can I help them to better those competencies? How is my department's success measured, and how can I use available resources to help it meet and exceed expectations? What HR tools and programs are available to help me reach my department's talent management goals? According to a recent benchmarking study on talent management conducted by the American Productivity and Quality Center and the Center for Creative Leadership, organizations that excel in talent management follow eight best practices: 1. Defining "talent management" broadly. 2. Integrating the various elements of talent management into a comprehensive system. 3. Focusing talent management on their most highly-valued talent. 4. Getting CEOs and senior executives committed to talent management work. 5. Building competency models to create a shared understanding of the skills and behaviors the organization needs and values in employees. 6. Monitoring talent system-wide to identify potential talent gaps. 7. Excelling at recruiting, identifying, and developing talent, as well as performance management and retention.

8. Regularly evaluating the results of their talent management system.

http://www.ddiworld.com/pdf/ddi_ninebestpracticetalentmanagement_wp.pdf

11

It takes Talent to spot Talent! A tone deaf will never be able to appreciate the music of maestros. Only a seasoned jeweller would know that all that glitters is not real! And, only those who can recognise the worth of a diamond can value it, for others it's just a stone! Talent is doing easily what others find difficult. In an organisation, there is nothing more crucial than fitting the right employee in the right position. Or else you would be trying to fit a square peg in a round hole. When people do jobs that just don't suit their liking, inclination or temperament, the results, or rather the lack of them will be disastrously obvious. Low productivity, dissatisfaction, low morale, absenteeism and other negative behaviour will become typical till the employee is shown the door. Or perhaps, there is another option - Talent Management. Talent management implies recognising a person's inherent skills, traits, personality and offering him a matching job. Every person has a unique talent that suits a particular job profile and any other position will cause discomfort. It is the job of the Management, particularly the HR Department, to place candidates with prudence and caution. A wrong fit will result in further hiring, re-training and other wasteful activities. No matter how inspiring the Leaders are, they are only as effective as their team. A team's output is healthy only if the members are in sync. To achieve such harmony, the key ingredient is "putting the right people in the right jobs". While there is no magic formula to manage talent, the trick is to locate it and encourage it. Talent Management is beneficial to both the organisation and the employees. The organisation benefits from: Increased productivity and capability; a better linkage between individuals' efforts and business goals; commitment of valued employees; reduced turnover; increased bench strength and a better fit between people's jobs and skills. Employees benefit from: Higher motivation and commitment; career development;

12

increased knowledge about and contribution to company goals; sustained motivation and job satisfaction. So, how does an organisation effectively manage talent? Recognise talent: Notice what do employees do in their free time and find out their interests. Try to discover their strengths and interests. Also, encourage them to discover their own latent talents. For instance, if an employee in the operations department convincingly explains why he thinks he's right even when he's wrong, consider moving him to sales! Attracting Talent: Good companies create a strong brand identity with their customers and then deliver on that promise. Great employment brands do the same, with quantifiable and qualitative results. As a result, the right people choose to join the organisation. Selecting Talent: Management should implement proven talent selection systems and tools to create profiles of the right people based on the competencies of high performers. It's not simply a matter of finding the "best and the brightest," it's about creating the right fit - both for today and tomorrow. Retaining Talent: In the current climate of change, it's critical to hold onto the key people. These are the people who will lead the organisation to future success, and you can't afford to lose them. The cost of replacing a valued employee is enormous. Organisations need to promote diversity and design strategies to retain people, reward high performance and provide opportunities for development. Managing Succession: Effective organisations anticipate the leadership and talent requirement to succeed in the future. Leaders understand that it's critical to strengthen their talent pool through succession planning, professional development, job rotation and workforce planning. They need to identify potential talent and groom it.
13

Change Organisation Culture: Ask yourself, "Why would a talented person choose to work here?" If the organisation wishes to substantially strengthen its talent pool, it should be prepared to change things as fundamental as the business strategy, the organisation structure, the culture and even the caliber of leaders in the organisation. A rightly managed talent turns out to be a Gold Mine. It's inexhaustible and priceless. It will keep supplying wealth and value to the organisation. In turn, Management needs to realise its worth, extract it, polish it and utilise it. Don't hoard Talent- spend it lavishly, like a millionaire flashing his luxuries, because Talent is Wealth!

Talent Management is a Business Problem3

Talent management describes the process through which employers of all kinds firms, government, non-profits anticipate their human capital needs and set about meeting them. Getting the right people with the right skills into the right jobs, a common definition of talent management is the basic people management challenge in organizations. While the focus of talent management tends to be on management and executive positions, the issues apply to all jobs that are hard to fill. Decisions about talent management shape the competencies that organizations have and their ultimate success, and from the perspective of individuals, these decisions determine the path and pace of careers. Talent management practices can have a crucial impact on society as well. The lifetime employment model of the post-WWII generation, for example, provided the economic stability that created middle class society. Failures in talent management may be more recognizable than the concept itself. Those failures mean mismatches between supply and demand: Too many employees, leading to layoffs and restructurings on the one hand, and not enough talent, leading to talent

http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=51772

14

crunches on the other. In India at present, it may be hard to imagine the problem of having too much talent, but the first downturn in the economy or even in a section of the economy will make that clear. These mismatches are among the fundamental problems that businesses and other large employers face. Over the past generation, corporations in particular seem to have lurched from surpluses of talent to shortfalls to surpluses and back to shortfalls again. The challenge employers face is to track much more closely the demands for talent to avoid both shortfalls and oversupplies. Many observers assume that the management of talent is really about the internal development of human capital, yet the majority of vacancies in corporations now are filled from outside. They also assume that internal development practices such as executive coaching, career pathing developmental assignments, assessment centers, high potential programs, and succession planning, are something new. These techniques and indeed, every employee development practice that seems novel now forced ranking performance evaluation systems, 360 degree feedback programs, executive coaching, etc. were all common in the 1950s. Except at a few very large firms, they have been scaled back and, in many cases, largely abandoned. The reason was not that these practices failed to develop talent. It was because they were too costly. And the biggest cost was the difficulty they faced in managing the unpredictability of the demand for talent. Internal development of talent collapsed in the 1970s when business forecasting failed to predict the downturn in the economy, and the talent pipelines continued to turn out talent under the forecast assumptions of booming corporate growth. The excess supply of talent and the no-layoff policies for white collar workers caused a bloating of corporate organizations and the steepness of the 1981 recession in the US and elsewhere led virtually all companies to back away from developing talent. Lifetime employment came to an end, and the reengineering processes cut away the development practices and staff that created talent. After all, if the priority was to get rid of talent, why would companies maintain the programs designed to create it?
15

We need a new way of thinking about the talent management challenge. A new framework for talent management has to begin by being clear about the goal. Talent management is not an end in itself. It is not about developing employees or creating succession plans. Nor is it about achieving specific benchmarks like a five percent turnover rate, having the most educated workforce, or any other tactical outcome. The goal of talent management is the much more general but important task of helping the organization achieve its overall objectives. In the business world, that objective is to make money. An important part of the goal of helping the organization is to address the financial challenge associated with developing employees and recouping the investments in their development now that labor markets:

Figure 1 Talent Management Returns

(Source: http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=51772)

The cost of employing those workers in the initial period exceeds the value of the contribution from them as the new hires are learning what to do and how to do it. The
16

size of the cost gap grows as development efforts expand. That investment has historically been recouped in the next period, in the shaded blue area where the value an employee produces exceeds the cost of employing them. Even though wages and employment costs are rising, the value of the employees contribution rises even faster, and the employer earns back a return on their earlier investment. As long as the gap between costs and contributions is bigger in this second period than in the first, then the employer makes money on the investment. At the end of an individuals career, pension plans and other retirement programs reversed the flow of resources. During that period, the employer makes net payments back to the employees. The problem with this approach to recouping development costs began soon after the collapse of lifetime employment for managers and executives. As described in Chapter 2, employers broke that model first by laying off experienced employees. But layoffs alone did not necessarily collapse the ability to earn a return on training and development. That happened when employers began hiring experienced talent from competitors, in part at the executive level as a means for changing the strategy and culture of their own organizations but then later as a means of avoiding the time delays and costs associated with internal development. The flip side of hiring experienced workers is retention problems for competitors. The situation is sometimes described as an incomplete contract the employer makes an investment in the employee but did not require anything in return because, historically, the employee had little opportunity to leave. Once outside hiring started, an employees competencies became useful elsewhere and had a market value. In fact, an employee may actually be more valuable to a competitor than to their current employer because they bring with them not only their own performance but knowledge and insight about how their old employer operated. The competitors can pay the employee more than the current employer and still make money on the deal because they have no early investment costs to recoup. In the graph above, the market value of the employee becomes something closer to the line
17

representing their true value to an employer. Employers then face what seems like an impossible choice: Either stay with their practices and watch their newly developed employees leave for better paying opportunities elsewhere, losing their investment in them, or raise wages up to the new market level, losing the ability to recoup the investments they have just made in their employees. What we need to address going forward is how to make investments in development affordable, and part of that challenge involves employee retention, making it possible to at least retain employees long enough to recoup the training investments in them.

From Personnel to Strategic HR to Talent Management4

To understand why Talent Management has become so important, we must first look at the evolution of corporate HR: Stage 1: Personnel Department: In the 1970s and 1980s the business function

which was responsible for people was called "The Personnel Department."

The role of this group was to hire people, pay them, and make sure they had the necessary benefits.

The systems which grew up to support this function were batch payroll systems. In this role, the personnel department was a well understood business function.

http://joshbersin.com/2007/06/01/talent-management-changes-hr/

18

Stage 2: Strategic HR: In the 1980s and 1990s organizations realized that the HR function was in fact more important - and the concepts of "Strategic HR" emerged. During this period organizations realized that the VP of HR had a much larger role: recruiting the right people, training them, helping the business design job roles and organization structures (organization design), develop "total compensation" packages which include benefits, stock options and bonuses, and serving as a central point of communication for employee health and happiness. The "Head of Personnel" became the "VP of HR" and had a much more important role in business strategy and execution. The systems which were built up to support this new role include recruiting and applicant tracking (ATS), portals, total compensation systems, and learning management systems. In this role, the HR department now became more than a business function: it is a business partner, reaching out to support lines of business. Stage 3: Talent Management: We are now entering a new era: the emergence of "Talent Management." While strategic HR continues to be a major focus, HR and L&D organizations are now focused on a new set of strategic issues: How can we make our recruiting process more efficient and effective by using "competency based" recruiting instead of sorting through resumes, one at a time? How can we better develop managers and leaders to reinforce culture, instill values, and create a sustainable "leadership pipeline?" How do we quickly identify competency gaps so we can deliver training, e-learning, or development programs to fill these gaps? How can we use these gaps to hire just the right people? How do we manage people in a consistent and measurable way so that everyone is aligned, held accountable, and paid fairly? How do we identify high performers and successors to key positions throughout the organization to make sure we have a highly flexible, responsive organization?
19

How do we provide learning that is relevant, flexible, convenient, and timely?

These new, more challenging problems require new processes and systems. They require tighter integration between the different HR silos -- and direct integration into line of business management processes. Today organizations are starting to buy, build, and stitch together performance management systems, succession planning systems, and competency management systems. The HR function is becoming integrated with the business in a real-time fashion.

The New HR Mission and Talent Management Processes

Many challenging workforce issues confront HR, including:

Heightened competition for skilled workers. Impending retirement of the baby boomers. Low levels of employee engagement. Acknowledgement of the high cost of turnover. Arduous demands of managing global workforces. Importance of succession planning. Off shoring and outsourcing trends.

Figure 2: Talent Management Platform

(Source: http://www.taleo.com/sites/default/files/article-talent-management.jpg) 20

Taleos graphical representation emphasizes the mandate of talent management to respond to business goals and consequently be the driver of business performance. Talent management is depicted as a circularnot a linearset of activities. Talent Management Process Organizations are made up of people: people creating value through proven business processes, innovation, customer service, sales, and many other important activities. As an organization strives to meet its business goals, it must make sure that it has a continuous and integrated process for recruiting, training, managing, supporting, and compensating these people. The following chart shows the complete process: 1. Workforce Planning: Integrated with the business plan, this process establishes workforce plans, hiring plans, compensation budgets, and hiring targets for the year. 2. Recruiting: Through an integrated process of recruiting, assessment, evaluation, and hiring the business brings people into the organization. 3. On boarding: The organization must train and enable employees to become productive and integrated into the company more quickly.

Figure 3: Talent Management Process

(Source: http://www.bersin.com/images/talent_circle_507w.jpg) 21

4. Performance Management: by using the business plan, the organization establishes processes to measure and manage employees. 5. Training and Performance Support: of course this is a critically important function. Here we provide learning and development programs to all levels of the organization. 6. Succession Planning: as the organization evolves and changes, there is a continuous need to move people into new positions. Succession planning, a very important function, enables managers and individuals to identify the right candidates for a position. This function also must be aligned with the business plan to understand and meet requirements for key positions 3-5 years out. While this is often a process reserved for managers and executives, it is more commonly applied across the organization. 7. Compensation and Benefits: clearly this is an integral part of people management. Here organizations try to tie the compensation plan directly to performance management so that compensation, incentives, and benefits align with business goals and business execution. 8. Critical Skills Gap Analysis: this is a process we identify as an important, often overlooked function in many industries and organizations. While often done on a project basis, it can be "business-critical." For example, today industries like the Federal Government, Utilities, Telecommunications, and Energy are facing large populations which are retiring. How do you identify the roles, individuals, and competencies which are leaving? What should you do to fill these gaps? We call this "critical talent management" and many organizations are going through this now. In the center of this process are important definitions and data: job roles, job descriptions, competency models, and learning content.

22

Leadership Development: A Key Part of Talent Management5

Leadership development and talent management have a strong correlation with each other. In fact, leadership development is an integral part of any successful corporate talent management strategy. It involves identification of potential leaders, grooming and training them for leadership roles, and gradually delegating more authority and responsibility to them to cultivate leadership skills. Leadership development not only involves leading others, but first and foremost, it involves leading oneself. An individual who is a keen learner and highly self-motivated is a natural leader. With systematic leadership training, including opportunity and experience, such an individual may have the potential to become an equally successful leader of a large group or an organization. Development of the leadership potential of key candidates is one of the crucial tasks of talent management in any business organization. Leadership Development Process Leadership development and talent management are inseparable. The process of leadership development begins with the creation of an effective leadership design. This design may differ from one organization to another, depending on the leadership needs of each organization. Therefore, it becomes important to analyze the leadership traits required to lead and manage a particular organization or one of its branches or divisions. The culture and ethos of the organization determines what kind of leaders may be most successful in a particular internal corporate environment and culture. Once the business organization is clear about the essential traits that it needs its leaders to possess, the necessary training tools to develop such leadership can be put into place. If any external leaders need to be hired for the organization, it becomes easier to choose them according to the leadership design. For internal leadership development, there can be various training programs that may include coaching, hands-on training, mentoring

http://www.brighthub.com/office/human-resources/articles/101592.aspx

23

and systematic delegation of higher responsibilities. Contemporary leadership development processes are more globalized, highly integrated and interactive.

Talent Management: Job Satisfaction & Job Effectiveness

Talent Management is positively correlated with job effectiveness and employee satisfaction. By adopting some of the talent management practices like, providing challenging jobs and providing them opportunities to grow, the employee takes the job as a challenge and puts full efforts, this will improve his job effectiveness. Effective compensation management, training and development, performance

management, job autonomy and decision making authority are some of the techniques to improve the performance of the employees These practices will directly affect the results and will ultimately results in better job satisfaction. It starts with pre-hire assessment which ensures right person on the right job. Easier entry into the talent pool will provide more opportunities to the employees career growth. This will facilitate transparent talent management. It will also facilitate employees career development, succession planning, developing KSAOs in them, competency building and competency mapping. These will results into improved level of employee satisfaction.

24

2.3 Conceptual Model of the research

For carrying out the research, the researchers have framed the following model.
Job Effectiveness

Talent Management

Leadership Development

Productivity

Job Satisfaction

Figure 4: Conceptual Model This research is carried out to define the correlation of Talent Management with Employees Job Effectiveness, their level of satisfaction and opportunities for their Leadership Development. In this Model, Talent Management results into 3 outcomes. 1. Improved Job Effectiveness 2. Improved Level of Employee Satisfaction 3. More/Better scope for Leadership Development These three will ultimately results into improved productivity of an employee. To test the same certain hypothesis are framed which are collected through questionnaires and tests were applied.

25

Chapter 3

Review of Literature

Kozlowski, et al. (2000) suggests an approach to organisation improvement and development based on enhancing the knowledge, skills and attitudes or abilities of the workforce. This paradigm may be accomplished through training activities. From this perspective, training is effective to the extent that it directly contributes to the strategy, objectives, or outcomes central to organizational effectiveness. The theoretical frameworks are not, however, adequately addressed in current models. Thus, a theoretical model is proposed in the hope that it will assist in understanding the relationship between training and firm performance. Lewis (2000) said, Individuals are demanding more challenging work and opportunities to develop their skills and abilities, and to be compensated for their high performance. Employee survey results identified four issues related to talent management in which gaps exist between what the organization provides and what employees managers provide. These include knowing and providing employees with training and development opportunities, providing resources and rewards employees need to excel at their jobs, knowing and managing employees career expectations, and serving as a mentor to guide employee careers. Jeffrey Pfeffer (2001) observes, Fighting the war for talent itself can cause problems. Companies that adopt a talent war mind-set often wind up venerating outsiders and downplaying the talent already in the company. They frequently set up competitive zerosum dynamics that make internal learning and knowledge transfer difficult, activate the self-fulfilling prophesy in the wrong direction (those labelled as less able become less able), and create an attitude of arrogance instead of an attitude of wisdom. For all these reasons, fighting the war for talent may be hazardous to an organizations health and detrimental to doing the things that will make it successful. Michaels et al (2001) identified five imperatives that companies need to act on if they are to win the war for managerial talent. These are: Create a winning employee value proposition that will make your company uniquely attractive to talent, move beyond
26

recruiting hype to build a long-term recruiting strategy, use job experience, coaching and mentoring to cultivate the potential in managers. Central to this approach is a pervasive mindset a deep conviction shared by leaders throughout the company that competitive advantage comes from having better talent at all levels. Corporate Leadership Council (2003) concluded that as a primary owner of talent management, HR has many rolesone of the most important is that of facilitator of the talent mindset. HR leads the way for the organization to own, as an entity, the role of talent management for organizational success. In the role of business partner, HR works closely with the board, the CEO and senior management to ensure that they are committed to talent management work. As talent management facilitator, HR also pays close attention to how the organization's culture supports talent. Broadly speaking, HR's role encompasses communicating the talent management philosophy companywide and knowing the industry competition. In addition, HR needs to develop an integrated and proactive strategic approach to talent managementthe big picturesas well as managing critical information, such as tracking turnover and knowing what factors contribute to retention. To integrate talent management into all areas of the company, HR also plays a role of change management agent. To drive this change, HR addresses four diverse talent management activities: recruitment, performance management, leadership development and organizational strategy. In this role, HR manages four major risks to the business: 1) vacancy risk (to safeguard key business capabilities, focus on scarce skills and fit to position); 2) readiness risk (to accelerate leadership development, provide full business exposure to rising stars); 3) transition risk (to avoid loss of key talent, select successors with leadership ability and hire for organization capability); and 4) portfolio risk (to maximize strategic talent leverage, focus on senior management's commitment to development and performance standards). Brown, P and Hesketh, A (2004) makes the point that recruitment cannot become the substitute of poor people management (including skills development). Neither is recruitment a substitute or compensation for investment in training and development. The

27

challenge is to find the dormant and obvious talents and build it to the mutual benefit of both the organisation and the individual. According to a report by Industrial Relations Counselors, Inc. (2004), managing global talent has challenges and significant implications for sustainability and growth. A recent study of global companies, for example, states that companies are concerned about the development of future leaders capable of navigating the global business environment. Key findings show that the most important determinant of global talent management (GTM) success is the degree of involvement by the CEO, the board of directors and the GTM leader in talent management activities. On average, for example, CEOs spend 16% of their time speaking publicly about GTM, mentoring high potentials, participating in talent reviews and approving the succession plans. Board members in 46% of companies provide input into assessment of key employees and 39% meet with high potentials during the years.

Morton (2005) observed that Talent management metrics are evolving. As organizations increasingly focus on talent management strategies, they seek ways to validate these initiatives and measure their business impact. Many firms are beginning to include talent management in their dashboards or scorecards. For example, HSBC, a banking and financial services institution, uses the Balanced Scorecard, with talent management listed under learning and growth. Scorecards provide a clear "line of sight" to organizational strategic goals by linking talent management to objectives and performance appraisals. Measures may include factors such as employee survey results, turnover (e.g., talent pools) and the number of employees on secondments. Fegley (2006) observed, Investment in human capital requires careful planning. Under the talent management umbrella, succession planning and leadership development are important organizational business strategies to develop and retain talent. As noted in the 2005 Human Capital Index Report, succession planning is also one of the key strategies to reduce turnover costs." While in the past succession plans were primarily focused on key leadership roles, organizations are now establishing leadership development and
28

succession planning initiatives early in the process of employee career development. In addition, according to SHRM's 2006 Succession Planning Survey Report, 58% of organizations have either a formal (29%) or informal (29%) succession plan and 26% plan to develop one. The survey findings note that large organizations (500 or more employees) and publicly or privately owned for-profit organizations are more likely to have formal succession plans. The responsibility for implementing succession planning varies, starting with HR and followed by senior management, the president/CEO and the chief operating officer. However, not all organizations are jumping on the bandwagon to develop succession plans; 16% do not intend to do so. The reasons vary, with companies saying more immediate needs take precedence; some companies have too small a staff size, while others have not yet considered it, and still others have no support from senior management. Tansley et al (2006) claim that talent management requires HR professionals and their clients to understand how they define talent, who they regard as the talented and what their typical background might be. It also requires thinking about whether such recruits should be seen as particularly gifted. If talents are considered to be gifted, then how many people are we talking about in an organization? According to Warren (2006), Resourcing strategies are concerned with assessing the need for talented people and then recruiting and retaining them. The concept of talent management as a process of ensuring that the organization has the talented people it needs only emerged in the late 1990s. It has now been recognized as a major resourcing activity, although its elements are all familiar. Talent management has been called a fad or a fashion, talent management is an idea that has been around for a long time. Its been re-labelled, and that enables wise organizations to review what they are doing. It integrates some old ideas and gives them freshness, and that is good. As defined by the CIPD (2007), Talent consists of those individuals who can make a difference to organizational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential. Talent management

29

is the process of identifying, developing, recruiting, retaining and deploying those talented people. Thorne and Pellant (2007) observed, No organization should focus all its attention on development of only part of its human capital. What is important, however, is recognizing the needs of different individuals within its community. The general consensus seems to be that while talent management does concentrate on obtaining, identifying and developing people with high potential, this should not be at the expense of the development needs of people generally. Younger et al (2007) suggested the approaches required involve emphasizing growth from within, regarding talent development as a key element of the business strategy, being clear about the competencies and qualities that matter, maintaining well-defined career paths, taking management development, coaching and mentoring very seriously, and demanding high performance. Thang, et.al. (2010) said, although there are many advocates of training and its important role in improving firm performance, it has been criticized as faddish, or too expensive and not transferring to the job. In fact, some studies have failed to find the impacts of training on firm performance. This article aims to advance understanding of the effects of training on firm performance by reviewing theory and previous empirical studies on the relationship between training and firm performance. The paper aims to describe the important theoretical approaches and proposes a framework for analyzing training and firm performance issues. Data from previous studies are used to assess the effects of training on firm performance. The analysis indicates that the relationship between training and firm performance may be mediated by employee knowledge and attitude. Furthermore, capital investment or organisational strategy does moderate the training performance relationship.

30

Chapter 4
4.1 Research Problem

Research Methodology

There have been certain arguments and counter arguments on the adaption and effectiveness of the Talent Management Practices. Whether their effectiveness results in improved Job Effectiveness, improved Job Satisfaction and better opportunities for Leadership development or not. And the productivity of the firms adapting them is being developed with comparison to those who dont.

4.2 Objectives of Research

1. To know about the Talent Management practices adopted by the Manufacturing firms in Rajkot region. 2. To measure the effectiveness of the Talent Management practices. 3. To measure the impact of Talent Management practices on the variables like Job Effectiveness, Job Satisfaction & Leadership Development.

4.3 Hypotheses
H0= Effectiveness of Talent Management practices have positive impact on Job effectiveness, Job satisfaction, Productivity and Leadership development of employees. Ha= Effectiveness of Talent Management doesnt have any positive impact on Job effectiveness, Job satisfaction, Productivity and Leadership development of employees.

4.4 Research Design

Research Type In the research, the primary data was collected on the basis of the assumed relationship among variables. Hypotheses were framed and tests were applied. So, this will be a Quantitative type of research.
31

Sampling Method Sample was chosen through simple random sampling method in which few employees were selected randomly from the population to fill up the questionnaires. Sample size One questionnaire (Talent Management from Management perspective) was filled by Management of each firm totaling 5. While among the employees 200 questionnaires were distributed from them 192 were eligible for consideration. Among the firms a sample of 42 was drawn from Amul, 68 from Jyoti CNC, 29 from Orbit, 31 from Pelican and 22 from Balaji. Data Collection Primary Data

The primary data was collected through the two questionnaires. Secondary Data

For some of the background information of the manufacturing industry and the company information company brochures and internet was used. Research Tool As a research tool two types of questionnaires were framed. For management For employees

In the questionnaire for management number of 13 questions were asked to know the approach the management has towards adoption of and maintenance of the Talent Management Practices. All the questions were of dichotomous type.
32

The questionnaire for employees was divided into 4 parts i.e. Effectiveness of Talent Management Practices Job Effectiveness & Productivity Improvement Employee Satisfaction Leadership Development

A total of 33 questions were asked out of which 12 related to effectiveness of talent management, 7 each were related to Job Effectiveness & Productivity Improvement, Employee Satisfaction, Leadership Development and Likert Scale was chosen for employees to respond.

33

Chapter 5
the help of three tests 1. Chi-Square test 2. Correlation Analysis &

Data Analysis & Interpretation

Based on the formulated objectives and hypothesis, the data analysis was performed with

3. Analysis of Variance (ANOVA) The Chi-Square test was performed on the data obtained from the questionnaires filled from the management side. The correlation was analyzed of Effective talent management practices with the three variables. The analysis of variance was done among the industry regarding the four variables. The following shows how the three analyses were conducted.

34

1. Chi-Square Test
Based on the questionnaires filled from the management side the following were the results found. On these results Chi- Square goodness of fit test was applied. H0 = The management adopted favorable approach towards Talent Management. Ha = The management doesnt adopted favorable approach towards Talent Management.
Table 1: Chi- Square Table Observed 8 9 Expected 8.5 8.5

9 8.5

8 8.5

10 8.5

9 8.5

7 8.5

8 8.5

10 8.5

7 8.5

The calculated value = 0.998676

The tabulated value = 21.666

The calculated value is less than the tabulated value. So the null hypothesis gets accepted and this result that the managements approach towards Talent Management is favorable. This means the management is adopting the thinking and the approach that will facilitate effective talent management practices. In the manufacturing industry of Rajkot the firms are adopting transparent talent management practices, they have high risk approach towards the individual development. These firms are also providing high support to the employees in entering in the talent pool. The opportunities that they provide for the individual development are also good for effective talent management.

35

2. Correlation Analysis
H0 = Effective Talent Management have positive correlation with Job Effectiveness, Productivity, Job satisfaction and Leadership Development. Ha = Effective Talent Management has negative correlation with Job Effectiveness, Productivity, Job satisfaction and Leadership Development.
Table 2: Correlation Analysis Effectiveness of Talent Management Strongly Agree Agree Neutral Disagree Strongly Disagree 105 240.6 75.6 36 3.6 Job Effectiveness & Productivity Improvement 54.8 164 20 23.6 0.8 Employee Satisfaction 46.6 141.6 24.6 44 8.8 Leadership Development 48.6 142.6 33.4 37.4 7.2

Correlation
Job Effectiveness Employee Satisfaction Leadership Development

Effective Talent Management 0.977593 0.947606 0.974454

The value of r (Correlation) is very near to 1 in all three cases. This shows that there is good correlation between them. Effective talent management practices are having a very good correlation with the three variables. The values of all three correlations between the variables are very near to 1. The lowest correlation is with employee satisfaction compared to job effectiveness and leadership development.

36

3. Analysis of Variance (ANOVA test)

A. Effectiveness of Talent Management Practices

Ho = There is no significant variance in the Industry regarding Effectiveness of Talent Management. Ha = There is significant variance in the Industry regarding Effectiveness of Talent
Management. Table 3: ANOVA of Effectiveness of Talent Management Practices Jyoti Amul Strongly Agree Agree Moderate Disagree Strongly Disagree 99 293 74 36 1 Balaji CNC 61 127 43 29 4 209 352 161 83 11 76 207 48 16 2 80 224 52 16 0 Orbit Pelican

Chart 1: Effectiveness of Talent Management Practices

37

The chart depicts in all 5 firms the talent management practices are very much effective as in all the cases, around 80% of the respondents are on the satisfied side from the total sample.
Table 3: ANOVA of Effectiveness of Talent Management Practices ANOVA Source of Variation Between Groups Within Groups Total SS 37412.56 186470.8 223883.4 df 4 20 24 MS 9353.14 9323.54 F F crit

1.00317476 2.866081402

The calculated value is less than critical (tabulated). So, the null hypothesis gets accepted which results that there is no significant difference among the industry regarding effectiveness of talent management. This shows that in the firms in the manufacturing industry of Rajkot region follow the same trend regarding the effectiveness of the talent management practices. The ANOVA results in the calculated value of F around 1 which is very less than the tabulated value of 2.87. This proves there is no variance among the industry units regarding the effectiveness of talent management practices.

38

B. Job effectiveness & Productivity improvement

Ho = There is no significant variance in the Industry regarding Job Effectiveness & Productivity Improvement. Ha = There is significant variance in the Industry regarding Job Effectiveness & Productivity Improvement.
Table 4: ANOVA of Job effectiveness & Productivity improvement Jyoti Amul Strongly Agree Agree Moderate Disagree Strongly Disagree 61 173 32 28 0 Balaji CNC 36 89 14 13 2 97 262 46 41 2 40 141 4 18 0 40 155 4 18 0 Orbit Pelican

Chart 2: Job effectiveness & Productivity improvement

39

The chart depicts that the employees feel that due to the talent management practices there has been an improvement in the job effectiveness and the productivity has also inproved.
Table 4: ANOVA of Job effectiveness & Productivity improvement ANOVA Source of Variation Between Groups Within Groups Total SS 10556.56 94853.2 105409.76 Df 4 20 24 MS 2639.14 4742.66 F F crit

0.556468311 2.866080706

The calculated value is less than critical (tabulated). So, the null hypothesis gets accepted which results that there is no significant difference among the industry regarding Job Effectiveness & Productivity Improvement. This shows that in the firms in the manufacturing industry of Rajkot region follow the same trend regarding Job effectiveness and productivity improvement. The ANOVA results in the calculated value of F around 0.55 which is very less than the tabulated value of 2.87. This proves there is no variance among the industry units regarding Job effectiveness and productivity improvement.

40

C. Employee Satisfaction
Ho = There is no significant variance in the Industry regarding Employee Satisfaction. Ha = There is significant variance in the Industry regarding Employee Satisfaction.
Table 5: ANOVA of Employee Satisfaction Jyoti Amul Strongly Agree Agree Moderate Disagree Strongly Disagree 45 180 35 32 2 Balaji CNC 28 75 16 30 5 122 203 38 86 27 18 123 16 33 5 20 127 18 39 5 Orbit Pelican

Chart 3: Employee Satisfaction

41

The chart depicts positive relation of effective talent management practices on the employees job satisfaction. It shows around 80% of job satisfaction among the industry workforce.
Table 5: ANOVA of Employee Satisfaction ANOVA Source of Variation Between Groups Within Groups Total SS 13143.44 61465.2 74608.64 Df 4 20 24 MS F F crit

3285.86 1.069177356 2.866080706 3073.26

The calculated value is less than critical (tabulated). So, the null hypothesis gets accepted which results that there is no significant difference among the industry regarding Employee Satisfaction. This shows that in the firms in the manufacturing industry of Rajkot region follow the same trend regarding Employee satisfaction. The ANOVA results in the calculated value of F around 1 which is very less than the tabulated value of 2.87. This proves there is no variance among the industry units regarding Employee satisfaction.

42

D. Leadership Development
Ho = There is no significant variance in the Industry regarding Leadership Development. Ha = There is significant variance in the Industry regarding Leadership Development.

Table 6: ANOVA of Leadership Development Jyoti Amul Strongly Agree Agree Moderate Disagree Strongly Disagree 44 181 32 34 3 Balaji CNC 30 69 20 29 6 132 212 44 65 25 17 122 34 29 1 20 129 37 30 1 Orbit Pelican

Chart 4: Leadership Development

43

The chart depicts that because of few of the talent management practices like challenging jobs and employee initiation plans, the employees feel that there has been huge scope for their leadership development.
Table 6: ANOVA of Leadership Development ANOVA Source of Variation Between Groups Within Groups Total SS 12918.16 64073.2 76991.36 Df 4 20 24 MS F F crit

3229.54 1.00807826 2.866080706 3203.66

The calculated value is less than critical (tabulated). So, the null hypothesis gets accepted which results that there is no significant difference among the industry regarding Leadership Development. This shows that in the firms in the manufacturing industry of Rajkot region follow the same trend regarding Leadership development. The ANOVA results in the calculated value of F around 1 which is very less than the tabulated value of 2.87. This proves there is no variance among the industry units regarding Leadership development.

44

Chapter 6
conclusions were drawn.

Conclusion

After testing the hypothesis with the help of Chi-Square test, ANOVA test, the following

The firms in the manufacturing industry of Rajkot region are very much aware of the importance of Talent Management practices and its impact on the organizations performance. These firms have adopted and maintained the Talent Management Practices very well and their effectiveness is also high which has resulted into improved performance of the employees and the organization as well. There is positive correlation of Talent Management Practices with Employees job effectiveness, his satisfaction with the job and leadership development. On the basis of ANOVA test a conclusion can be drawn that there is no significant variance among the industry firms regarding the four variables.

6.1 Managerial Implications of the research

The research was conducted to identify the impact Talent Management has over Job Effectiveness, Job Satisfaction and Leadership Development. This research will provide evidence of the positive impact Talent Management has over the three variables. The research will guide the management in providing effective Talent Management programs and to know where the employees are lagging behind and identify the factors which will help in developing future leaders.

45

6.2 Limitations of the research

The researchers faced some difficulties in getting the questionnaires filled in the last phase. Because of the end days of the accounting year few of the firms and employees refused to fill up the questionnaires. There was no uniformity in the answers of the employees and responses were ambiguous. In some of the firms there were no provisions for certain talent management practices so the questions relating to them were left unanswered. The questionnaire contained some of the typical HR terminologies which were not easily understood by some of the workers. So the questionnaires had to be filled up personally. At some organizations the researcher provided some questionnaires out of them some returned half filled and had to be rejected.

6.3 Scope for Future Research

The research was limited to the Manufacturing Industries of Rajkot region only. There is large scope to carry out this research in other industries like IT, Service, Banking and many other sectors. This kind of research will define the trends followed in the adaption of the Talent Management Practices in different Regions. Effective Talent Management practices will ultimately results in improved financial performance. So, Researchers defining Correlation between Talent Management Practices and the firms financial performance of Manufacturing or any other Industry can be another area of research. In this era of competition, the Talent Management practices have its own importance in the battle of survival. A comparative research can be carried out comparing the firms which have adopted the Talent Management practices and the firms which dont have any kind of Talent Management practices and how it affects the firms performance.

46

References
Brown, P & Hesketh, A. The Mismanagement of Talent. 2004. Oxford University Press Chartered Institute of Personnel and Development (CIPD) (2007) Talent Management: Understanding the dimensions, CIPD, London Corporate Leadership Council (2003). High-impact succession management: From succession planning to strategic executive talent management. Retrieved January 27, 2009, from www.executiveboard.com Fegley, S. (2006). 2006 succession planning survey report. Alexandria, VA: Society for Human Resource Management. Industrial Relations Counselors, Inc. (2004). IRC survey of global talent management practices. Retrieved January 12, 2010, from www.orcinc.com Kozlowski, S., Brown, K., Weissbein, D., Cannon-Bowers, J., & Salas, E. (2000). A multi-level approach to training effectiveness. In K. Klein, & S. Kozlowski (Eds.), Multi-level theory, research, and methods in organizations: Foundations, extensions, and new directions (157-210). San Francisco, CA: Jossey-Bass Publishers Lewis, B.O. (2000). Leadership Strategies for Change and Retention. Presentation given at Human Resources Management Association of Chicago meeting. Michaels, E G, Handfield-Jones, H and Axelrod, B (2001) The War for Talent, Harvard Business School Press, Boston, MA Michael Armstrong (2010). Armstrongs Essential Human Resource Management Practice, Kogan Page Limited, pp. 203-208. Morton, L. (2005). Taient management vaiue imperatives: Strategies for execution. New York: The Conference Board.
47

Pfeffer, J (2001) Fighting the war for talent is hazardous to your organizations health, Organizational Dynamics, 29 (4), pp 24859 Tansley, C., Harris, L., Stewart, J., & Turner, P. 2006. Talent Management: Understandingthe Dimensions. In CIPD (Ed.), Change Agenda: 1-16. London: CIPD. Thang, N. N., Quang, T. & Buyens, D. (2010). The Relationship between Training and Firm Performance: A Literature Review, Research and Practice in Human Resource Management, 18(1), 28-45. Thorne, K and Pellant, A (2007) The Essential Guide to Managing Talent, Kogan Page, London Warren, C (2006) Curtain call, People Management, 23 March, pp 2429. Younger, J, Smallwood, N and Ulrich, D (2007) Developing your organizations brand as a talent developer, Human Resource Planning, 30 (2), pp 2129.

48

Annexure Questionnaire on Talent Management

(from Management Perspective) 1. How many employees does your organisation have? 1-25 2511000 2650 10015000 51100 10000 or more 101-250

2. What is the annual turnover of your organization___________________________ 3. Think for a minute about the formal and informal aspects of your organizations performance management. What has more serious consequences on peoples career progression? A chieving tangible outcomes Demonstrating desired behaviors

4. Where do you focus individual development activities; primarily on strengths or weaknesses? Strengths Weaknesses

5. What level of support do you provide to your talent pool Low or H igh? Low High

6. Who is included in the Talent pool just a select few or everyone? Select Few Everyone

7. How transparent is your Talent Management system? O paque Transparent

8. How do peoples career progress once they have been identified as talent? Via the standard route but in an accelerated manner, or via diverse routes that consider individual skills? A ccelerated route Differentiated route

9. Is Talent Management owned by the business unit, or is shared around the organisation? Business Unit Shared around organisation
49 49

10. How much risk is the organisation prepared to tolerate regarding promotions and development opportunities? High risk approach Low risk approach

11. How easy it is for the employee to enter the Talent Pool? Easy Difficult

12. Manageement Style adopted Paternalistic Democratic Autocratic Laissez-faire

13. What Talent Management Practices do you have? Effective Compensation Management Career Development Work-life Balance Succession Planning Performance Management Job Challenges and opportunities Rewards and Recognition Training and Development Opportunities Leadership Development Pre-hire Assessment

Competency Building and Competency Mapping Job Autonomy and Decision making authority Others, specify____________________________________________________________

Thank You

50

Questionnaire on Talent Management

(from Employee Perspective) To respond use the below mentioned scale and 1. Strongly Agree 4. Disagree 2. Agree 5. Strongly Disagree in the suitable box. 3. Neutral/Cant say

1. Effectiveness of Talent Management practices Que Questions No. 1 I view this job challenging 2 I feel job suits my educational qualification I feel I am paid with a performance linked 3 salary? 4 I feel no stress in doing my job 5 6 7 8 9 10 11 12 I am satisfied with my succession plan I get sufficient opportunities for my career to grow I feel my performance is measured effectively I get regular feedback on my performance I feel there is huge scope in the organization for my competencies to develop The training & Development practices have improved my performance My leadership qualities have nurtured I feel TM practices have resulted into improved job effectiveness

2. Job Effectiveness & Productivity Improvement Improvement in Level of my efficiency & 1 effectiveness in organization. 2 Capability to work under stress. 3 Commitment towards responsibility. 4 Effectiveness when work in team. 5 Effectiveness when work individually. Coordination and cooperation among employees 6 and department. Awareness regarding job content, related skills 7 and competencies.
51

3. Employee Satisfaction Satisfied with the kind of training and 1 development program. 2 Satisfy with the role in the organization. Satisfied with the freedom in work and working 3 conditions. 4 Satisfied with the pay scale. Satisfied with the skills and personal 5 development opportunities. 6 Health and care benefits. 7 Job security. 4. Leadership Management My top management believes in my 1 capabilities? My organization provides sufficient autonomy 2 in doing my job? I am called upon to plan initiatives for my 3 organization. 4 New and challenging tasks are provided to me. Flexibility to Alter and deviate individual work 5 plan to suite to the changing needs of the organization and the department I am enthusiastic and maintain a positive attitude 6 every day for the sake of my team members. 7 I am given the tasks which I am good at.

Thank You

52