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BES31428: Talent Management PDF - 2025

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Mr. Ferdie Magkasi

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talent management human resource management recruitment business

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This document is a PDF file containing lecture notes on Talent Management. It covers the role of HRM, the talent acquisition process, recruitment, selection, training, and compensation management. It also discusses strategy implementation, organizational structure and culture.

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4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi THE ROLE OF HRM IN ANY ORGANIZATION THE TALENT ACQUISITION PROCESS “Every Manager is an HR Manager first” Major Functions of a Business Organization...

4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi THE ROLE OF HRM IN ANY ORGANIZATION THE TALENT ACQUISITION PROCESS “Every Manager is an HR Manager first” Major Functions of a Business Organization 1. Identifying Talent Gap Alternatives to Recruitment: ○ Automation; ○ Overtime; ○ Is the job necessary; Human Resource Management ○ Outsourcing; The art and science of acquiring, maintaining and ○ Can the tasks be spread to other developing people in their jobs in the light of employees their personal, professional and technical 2. Sourcing knowledge, skills, potentialities, needs and identifying, contacting, and engaging values in accordance with the organization candidates for a job opening. philosophy, resources, culture for the maximum ○ Internal achievement of individual, organizational and ○ External societal goals 3. Screening The process that the HR department The Major Functions of HR uses to reduce the amount of applicants 1. Recruitment / Human Resource Planning and for a position and focus only on Acquisition applicants qualified for the position 2. Training / Learning and Development 3. Compensation Management / Total Rewards 4. Selection 4. Labor Management Relations The process of picking or choosing the 5. Others – Health and Safety, Policy Formulation, right candidate, who is most suitable for File Management a vacant job position in an organization. Screening and Selection Strategies RECRUITMENT & SELECTION a. First impression Also called Talent Acquisition / Human Resource observes the applicant, Planning and Acquisition looks at his physical The process of searching for prospective appearance, employees and stimulating them to apply for the observes actions, jobs in the organization. manner of dressing, etc. The process of actively seeking out, finding and b. Application Letter hiring candidates for a specific position or job. serves as an opener or Starts from sourcing and ends with the job introduction of the orientation – the orientation is usually the first applicant, training of the new employee look into the style, the grammar, Presentation, approach of the letter c. Resume also known as the Bio data, Curriculum Vitae, prepared by the applicant, 1 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi The applicant has control of PNLT the contents. FIT d. Application Blank STCA similar to the resume, 16 PF however the fields are GZTS defined by the company, EPPS An official form of the h. Interview company and can also be Actual interaction with the online. applicant e. Academic Background May take the form of check the authenticity of structured/unstructured, the record, individual/panel. ask for original copy, Used to verify the verify it from the school information that is provided registrar by the applicant and his Scan for failures, test results. incomplete, dropped May also be used to subjects, ask for the measure how the applicant possible reasons, will respond to actual know the average. interaction with another f. Trainings and Seminars person. Relevant to the job i. Reference Check Dates attended also known as background Provider of the training or investigation; seminar may be done by a simple g. Test Scores telephone call to the Scores derived from the references of the person; use of previous employers may Psychological tests also be good sources of particularly: information; Intelligence – to some companies provide measure IQ such services for Aptitude – to background investigation measure specific but they may be costly; intelligence social media posts can also Personality tests – to be checked; look into the motives needs written consent by and attitudes of the the applicant in compliance individual with the Data Privacy Law. (Inventories & j. Physical Examination Projectives) Usually the last Utilized as basis for the requirement of the interview company. Strong and weak points of Most of the time at the the applicant are revealed expense of the applicant. or suggested by such. The company may Very useful in sifting prescribe a clinic or applicants. hospital for this purpose. Essay tests are very helpful. X-ray, Fecalysis, Urinalysis, Some companies have Complete Blood Count, and their own tests which were vaccinations may be developed by their own required. experts. k. Other Requirements Common tests that are Birth Certificate of being administered: employee and dependents SRA Marriage Certificate 2 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi Certificate of Employment - It involves both planned learning or those SSS Number (E-1 Form) acquired through formal education and TIN Number unplanned learning or those learning that takes Pag-Ibig Number place in everyday living. Residence Certificate Picture = 3 Purposes of Training = 5. Hiring 1. Prevent obsolescence The penultimate step in recruitment. This 2. Improved productivity process includes: 3. Prepares an employee for higher level tasks ○ Job offer ○ Salary and benefit negotiations The Training Cycle ○ Preparation and signing of the contract of employment and other paperworks All Trainings must have: 6. Onboarding Needs analysis The process of introducing a newly hired Training Conduct employee into an organization. Evaluation Also known as organizational socialization, onboarding is an important part of helping employees understand their new position and job requirements. TRAINING & DEVELOPMENT COMPENSATION MANAGEMENT Refers to the planned, continuous effort by management to improve employee competency levels and is concerned with the formulation and implementation of organizational performance through training, education, strategies and policies which are to reward people fairly, and development programs. equitably and consistently in accordance with their value to the organizations and to help the organization to TRAINING achieve its strategic goals. - Activities to improve an individual’s performance - Fairness & equity on a currently held job or a job related to it. - competitive - Hindi palaging answer ang training sa performance problem - Sometimes it's not about the person’s Job evaluation and salary administration skills, it could be about attitude, the Variable Compensation system or equipment Benefits Administration EDUCATION - Activities conducted to improve the overall Aspects: competence of an individual in a specific Job evaluation and salary administration direction and beyond the current job or towards ○ Why does the HR manager get this a future identifiable job. amount of salary? ( job evaluation) Variable compensation DEVELOPMENT ○ Performance based compensation - Learning opportunities aimed at individual Benefits administration growth but are not restricted to a specific present ○ Fringe benefits– nagpapaganda sa or future job. package ○ Everyone is entitled to it LEARNING Ex: leaves, rice benefit, - Defined as a relatively permanent change in allowances, overtime, 13th behavior including both observable activity and month pay, etc. internal processes such as thinking, attitudes and emotions. 3 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi LABOR-MANAGEMENT RELATIONS STRATEGIC MANAGEMENT Labor relations - Plays a big role in manpower - Covers the pro-active behavioral aspect and - Strategy - Military/ Political/ Business legalistic aspect of managing relationships between employees and management Strategic Management - It also includes the procedural aspect of solving A process that involves managers from all parts disputes between employees and management; of the organization in the formulation and such as arbitration, conciliation, mediation and implementation of strategic goals and strategies. litigation. (Bateman, T. and S.A. Snell.,2007). A process through which managers formulate and implement strategies geared toward optimizing strategic goal achievement, given available environmental and internal conditions. (Bartol, K. and D. Martin., 1998) STRATEGIC MANAGEMENT PROCESS Functions of Labor Relations CBA Negotiations Labor Management Cooperation Grievance Handling Employee Discipline VMOKRAPI = Vision, Mission, Objectives, KRA (key result areas), Performance Indicators Employee Life Cycle STEP 1: Establishment of mission, vision, and goals mission- basic purpose and values of the organization ○ defines the scope of operations ○ states the organization’s reason(s) to exist ○ written in terms of the general clients served by the organization strategic vision- provides a perspective on where the company is headed and what the 1. Recruitment - The process of searching for organization can become prospective employees and stimulating them to ○ clarifies the company’s strategic intent apply for the jobs in the organization. strategic goals- evolve from the mission and 2. Onboarding - Also known as organizational vision of the organization socialization, onboarding is an important part of ○ Need to becommunicated to everyone helping employees understand their new whohas contact with the organization position and job requirements 3. Development – steps taken for an employee’s STEP 2: Analysis of external opportunities and threats professional and personal growth successful strategic management depends on an 4. Retention – policies and practices so that an accurate and thorough evaluation of the employee will stay with an organization environment 5. Offboarding – formal separation between an Stakeholders - groups and individuals who affect employee and the company and are affected by the achievement of the organization’s mission, goals, and strategies 4 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi ○ environmental analysis provides a map Internal Resource Analysis of these stakeholders forecasting future trends is critical must develop a clear sense of market opportunities ○ identify potential threats as well ○ difference between an opportunity and a threat may depend on how a company positions itself strategically Elements of Environmental Analysis Core competence - something a company does especially well relative to its competitors ○ provides a competitive edge ○ usually a set of skills or expertise in some activity Resources and Core Competence Porter’s 5 Competitive Forces Model Benchmarking - process of assessing how well one company’s basic functions and skills compare to those of other companies ○ goals are: to thoroughly understand the “best practices” of other firms STEP 3: Analysis of internal strengths and weaknesses to undertake actions to achieve Resources - inputs to production that can be both better performance and accumulated over time to enhance the lower costs performance of the firm ○ only permits imitating rather than ○ May be tangible or intangible assets surpassing competitor ○ provide a competitive advantage if: the resource is instrumental in STEP 4: SWOT analysis and strategy formulation creating customer value SWOT analysis - comparison of strengths, the resource is rare and not weaknesses, opportunities, and threats equally available from other ○ helps summarize the major facts and sources forecasts derived from external and resource is difficult to imitate internal analyses resource is well organized ○ used as the basis for identifying primary and secondary strategic issues confronting the organization Corporate strategy - identifies the set of businesses, markets, or industries in which the organization competes and the distribution of resources among those businesses 5 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi ○ concentration strategy - focuses on a Functional strategy - implemented by each single business competing in a single functional area of the organization to support the industry business strategy ○ vertical integration - expands the ○ ensures that departments operate in a domain of the organization into supply or manner that is consistent with business distribution channels strategies ○ concentric diversification - moving into businesses that are related to the STEP 5: Strategy implementation company’s original core business organizations are adopting a comprehensive ○ conglomerate diversification - expands view of implementation into unrelated businesses organizations currently are applying a ○ Summary of Corporate Strategies participative strategic management process to implementation Steps in Strategy Implementation ○ Trends in Corporate Strategy ○ wave of mergers and acquisitions either by concentrating in one industry or by Things to Consider in Strategy Implementation portfolio diversification ○ implementing a diversified strategy depends on individual circumstances unrelated diversification may hurt a corporation diversification may help competing in a slow-growth, mature, or threatened industry ○ organizations tend to perform better if they implement a more concentric STEP 6: Strategic control diversification strategy designed to support managers in evaluating the Business strategy - defines the major actions organization’s progress with its strategy used to build and strengthen competitive When discrepancies are identified, corrective position within an industry action is taken ○ low-cost strategy - attempt to be encourages efficient operations that are efficient and offer a standard, no frills consistent with the plan product typically involves budgets to monitor and control useful for companies that are financial expenditures large and take advantage of ○ strategic budget- used to create and economies of scale in maintain long-term effectiveness production or distribution ○ operational budget- tightly monitored to organization must be the cost achieve short-term efficiency leader in its industry Must offer a product that is STRATEGIC HRM acceptable to customers ○ differentiation strategy - attempt to be Strategic human resource management can be unique in its industry or market segment defined as the linking of human resources with along some dimensions that customers strategic goals and objectives in order to value improve business performance and develop position based on high product organizational culture that foster innovation, quality, excellent marketing and flexibility and competitive advantage. distribution, or superior service 6 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi In an organisation SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel. Key Features of Strategic HRM There is an explicit linkage between HR policy and practices and overall organizational strategic aims and the organizational environment There is some organizing schema linking individual HR interventions so that they are mutually supportive Much of the responsibility for the management of human resources is devolved down the line SWOT ANALYSIS Scanning The External Environment Political Economic SWOT is a much utilized tool for identifying, Socio-Cultural gathering, interpreting and assessing internal Technological and external environment based on four key Ecological variables. Tool developed in the 1960’s used for marketing, crisis management, decision making, profitability, or project feasibility Benefits of a SWOT Analysis Allow management to make well informed decisions that affect productivity and profitability Save costs Analyze competition Identify new strategies Improve operations Environments to Consider External Environment Scanning The Internal Environment ○ Opportunities Resources available ○ Threats Consider the 7 S Model Internal Environment Identify core competence if there is any– ○ Strengths resource that is rare, inimitable, and valuable ○ Weaknesses Strength - characteristics that give us advantage over others Weakness - characteristics that place us at a disadvantage Opportunities - elements that we could exploit for our advantage Threats - elements that could cause us trouble 7 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi They have lower absenteeism and greater job loyalty. They have better relationships at work and build better teams. They are more likely to meet their organization’s standards of behaviour and service to its customers The Journal of Happiness Studies (Schaufeli et al, 2002) identified the physical, intellectual and emotional components of high engagement Vigour: highly engaged people are physically active in their work even if it is essentially sedentary. They are both physically energetic and mentally resilient. They put a lot of effort into their work, and sustain it even when they meet problems and setbacks. Absorption: highly engaged employees find their work engrossing and throw themselves into it without thought of time or surroundings or how they look to others. Dedication: highly engaged employees are dedicated to their work because they find it meaningful and fulfilling. Through their work they become better people in their own eyes. Engagement Across Job Levels ENGAGEMENT DRIVERS Why Engagement Matters? Talent is the engine of the modern organization, and engagement is the mystery ingredient that can transform the engine’s output. Talent-powered organizations have high levels of engagement which accelerate the performance of their people and make them deliver beyond their equivalents in peer organizations. DRIVERS OF ENGAGEMENT The Six Cs of Employee Engagement EMPLOYEE ENGAGEMENT The simultaneous employment and expression of a person’s “preferred self” in task behaviors that promote connections to work and to others, personal presence (physical, cognitive and emotional), and active full role performances Measure of the degree to which people express their identity at work – not only who they are but who they would like to be An engaged workforce normally looks happier and busier. Engaged employees have higher job satisfaction, work harder and perform better in their jobs than their less engaged colleagues. 8 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi 1. CONTENT ○ inputs refer to all the things that they Do I enjoy what I do? bring to the job, education, skills, What physical and mental demands does it seniority, effort, loyalty, performance make? What sense of achievement does it offer? ○ outcomes are rewards they perceive that Does it offer any kind of learning or discovery? Is they get from the job. Pay, bosuses, the work meaningful? Does the individual fringe benefits, psychological rewards, fundamentally find some level of satisfaction in etc. his or her work? ○ workers analyze the fairness of their own We all have to work for economic reasons, but outcome/input contract and then real engagement comes from a sense that the compare their contract with those of work context is somehow life enhancing. other workers in similar jobs and even Matching the content of work to the capabilities with those outside of their jobs. and preferences of the person is important. ○ If employees perceive equity they will continue to contribute at about the same 2. COPING level otherwise they will feel tension that How am I supported? will create motivation to reduce the Has the worker been given the means to cope inequity. with the demands of the job, and are his or her ○ If perceive overrewarded, reduce set goals and objectives achievable? tension by working harder, convince self These comprise not only the necessary to reduce value of outcome, try to knowledge, technology and training, but also a convince other employees to ask for conducive workplace environment, supportive more rewards, simply choose someone managers and colleagues, and working practices else for comparison purposes. and processes that reduce effort rather than add ○ If underrewarded, reduce tension by to it. lower quantity/quality of productivity, inflate the percieved value of the 3. COMPENSATION rewards, or bargain for more rewards, Compensation objectives: (Internal Equity and find someone else to compare External Competitiveness) themselves, or they can quit 4. COMMUNITY Is it socially rewarding? What degree of positive social interaction and connection does the individual feel? Am I fairly rewarded? To what extent is work fulfilling his or her social Does the individual feel fairly rewarded needs, providing an enjoyable experience with financially for his or her contribution, at a rate some sense of fun and some ready identity with which is reasonably market comparable. others? The individual should understand how he or she Is the physical workplace environment uplifting should be compensated through clear objectives and supportive of social interaction? and goals, understands how he or she was Is the culture of the organization collaborative or actually evaluated, and feels that process is fair. confrontational? Also included here are other forms and symbols of recognition and compensation, which can be 5. CONGRUENCE as basic as a pat on the back from the boss for a Do values align? job well done. Alignment of core values and culture, and Compensation – Equity Theory meeting the expectations of the individual, as ○ Employees are concerned not only with well as alignment of objectives. the satisfaction of their needs but they Are the espoused core values which the also want their reward system to be fair. individual expects actually met through the ○ Employees tend to judge fairness by actions and behaviours of supervisors and comparing their relevant inputs to the leaders? outcomes they receive and also by comparing this ratio to those of other 6. CAREER people: Where am I going? 9 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi The alignment between the career and life LEVELS OF CULTURE expectations and aspirations of an individual in the short term as well as the longer term, and the opportunity he or she can see in the organization. It also includes the degree to which individuals see the organization investing in them, how much they are able to shape their own destiny, and even build their CV – as well as their pride in the organization and identification with it. MANAGEMENT OF THE CORPORATE CULTURE 4 Categories of Culture 1. Macro Culture – nations and global occupations 2. Organizational Culture – within an organization 3. Subculture – groups within organizations. 4. Microculture – micro systems within organizations 1. ARTIFACTS AND CREATIONS CORPORATE CULTURE Most visible level of culture Norms that evolve in working groups. It is constructed in the physical and social Dominant values espoused by organizations environment such as a firm’s concern for product quality, Members are not aware of it but can always equity, etc. observe it. Philosophy that guides an organization’s policy Semiotics is the study of signs and symbols, towards employees and customers. including their processes and systems. It is an Rules of the game for getting along with the important approach to communication research organization ropes that a new comer must learn because it examines the association between to be an accepted member. signs and their roles in how people create Forms like a habit – beliefs are adopted if meanings on a daily basis beneficial We can manage, change, or destroy culture. 2. ESPOUSED BELIEFS AND VALUES Common culture emerges after stability and The sense of what ought to be as distinct from shared experiences. what is. Basic assumptions and beliefs shared by May appear through surveys members of an organization that operate unconsciously and that define in a basic (taken 3. BASIC UNDERLYING ASSUMPTIONS for granted) fashion an organization views itself Unconscious taken for granted beliefs and values and its environment : these are not visible When a solution to a problem works repeatedly, Organizational Components that Precipitate the it comes to be taken for granted. Emergence of Culture Congruent to theories in use. People Purpose / Objective Leader / Authority Positive Effects of Understanding Culture 1. Effective Communication 2. Shared knowledge / language 10 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi 3. Common set of attitude Organizational Culture fosters employee engagement 4. Development of solution The stronger a company culture, the more 5. Flexibility in adjusting the operation employees understand what is expected of them 6. Understanding between members and what they are working for. 7. Share sets of assumptions A positive culture would make employees feel 8. Maintains identity / self image connected, involved, and supported. 9. Establish efficiency 10. Common goal / strategy Organizational Culture defines work-life balance. Organizational culture is managed intentionally, How is Organization Culture Transmitted and with an eye toward enabling employees are more likely to attract and retain employees who 1. Symbols lead meaningful, fun, and fulfilling lives in which - material objects that connote meanings that they feel better able to balance the demands of extend beyond their intrinsic content work, home, community, and self 2. Stories Organizational Culture should align with strategy - Stories typically reflect the important implications Companies that use corporate culture to define of values in a firm’s culture. Often they develop a their strategy are historically less effective than life of their own. As they are told and retold, those that define their culture based on their shaped and reshaped, their relationship to what strategy. actually occurred becomes less important than Ultimately it’s up to employees to fulfill the the powerful impact the stories have on the way corporate mission, and culture needs to be that people behave every day. defined in support of this. 3. Language and Jargons Leaders shape culture and culture can influence - Organizations or departments within them leaders develop unique language to describe their work, The values and actions of leaders reinforce the their terms, although strange to newcomers, culture of the organization. Through the example serve as a common factor that brings together they set, leaders shape the culture in their words individuals belonging to a corporate culture or and actions every day. subculture. Cultural norms can be absorbed and can lead to good or to bad consequences. For example, 4. Ceremonies individuals observing negative behaviors may - Organizations also do a great deal to sustain rationalize such negative conduct and practices their cultures by conducting various types of ceremonies. Indeed, ceremonies may be seen as WORKFORCE STRUCTURING, celebrations of an organization’s basic values PLANNING AND FORECASTING and assumptions. Types and Variations of Organizational Structures 5. Principles The Concept of Organizing - Fundamental truths or proposition that serves as Organizing is the grouping of activities and a foundation for a system of belief or behavior. resources in a logical and appropriate way. (Van - Some organizations have explicitly written their Fleet) principles for all to see. Organizing is the deployment of organizational resources to achieve strategic goals.(Daft) Importance of Corporate Culture in Talent Management DIVISION OF WORK The breakdown of a complex task into Assessing the fitness of the candidate components so that individuals are responsible The recruit should suit the organization's culture for a limited set of activities instead of the task as If the recruit doesn't fit in with their team a whole. (Stoner & Freeman) members, they're more likely to become Job specialization - the division of work into alienated and disengaged. standardized, simplified task. ○ Workers can specialize and increase productivity 11 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi ○ Each worker is responsible only for one step - absence of a sense of ownership Span of Management / Span of Control - the number of subordinates reporting directly to a given manager. ○ Wide span - a manager who has a large number of subordinates. Chain of Command An unbroken line of authority that links all persons in an organization and defines who ○ reports to whom. (Daft) ○ Narrow span - a manager with only few ○ Unity of command – each employee is subordinates held accountable to only one supervisor ○ Scalar principle – a clearly defined line of authority in the organization that includes all employees. Coordination The integration of activities of separate parts of ○ an organization to accomplish organizational ○ Tall structure - has an overall narrow goals span and more hierarchical levels Centralization vs. Decentralization Centralization – means that decision authority is located near the top of the organization Decentralization – decision authority is spread downward to lower organization levels. ○ ○ Flat structure - has a wide span, ORGANIZATIONAL DESIGN horizontally dispersed and has few The determination of the organizational structure hierarchical levels that is most appropriate for the strategy, people, technology and tasks of the organization. (Stoner & Freeman) Organizational Structure - the arrangement and interrelationships of the various component parts ○ and positions of a company. Organizational Chart – a diagram of the organization’s structure showing the Departmentalization departments, or positions of the organization and The grouping into departments of work activities how they are related that are similar and logically connected. (Stoner & Functional Organization Freeman) Divisional Design Line & Staff Authority ○ Product / Market Organization Line Authority - the authority of those managers ○ Location / Geographic Based directly responsible, throughout the Matrix Organization organization’s chain of command, for achieving Team-Based Organization the organizational goals. Network Organization Staff Authority - the authority of those groups of Learning Organization individuals who provide line managers with advice and services 1. THE FUNCTIONAL ORGANIZATION Functional Authority - the authority of staff form of departmentalization in which everyone departments to control the activities of other engaged in one functional activity. departments that are related to specific staff responsibilities. 12 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi People are grouped together in departments by coordination across functional common skills and work activities, such as departments Engineering Department, HR Dept. etc. focus on product / division goals & easy to identify product problems development of gen mgt skills ○ Disadvantages Duplication across divisions less technical depth & Advantages specialization in divisions ○ efficient use of resources less top management control ○ development of in-depth skills; competition for corporate specialization resources ○ compatible managers and employees ○ centralized decision making 3. MATRIX DESIGN ○ good communication & coordination w/in An organization that utilizes functional and dept divisional chains of command simultaneously in ○ High quality technical problem solving the same part of the organization (Daft). Disadvantages Has dual lines of authority ○ barriers across depts. success is dependent on abilities of people in ○ Slow response to external changes key matrix roles - Two Boss Employees ○ produce routine tasks ○ responsibility for problems difficult to pinpoint ○ limited view of organizational goals and gen. mgt training for employees 2. DIVISIONAL DESIGN Departments are grouped based on organizational outputs Advantages Each division is an autonomous business ○ more efficient use of resource than Essential for very large companies eg. single hierarchy multinational companies ○ flexible & adaptable to change Departments are duplicated across divisions / ○ develop both general and specialist skills product lines ○ interdisciplinary cooperation & expertise Encourages decentralization ○ enlarged task for employees Disadvantages ○ frustration and confusion from dual chain of command ○ high conflict between sides of the matrix ○ many meetings, more discussions than Geographic Based Division action ○ all functions in a specific country or ○ human relations is needed region report to same division manager. ○ power dominance by one side of the ○ Focuses company activities on local matrix market conditions. 4. TEAM BASED APPROACH Creation of participative teams delegated with authority and responsibility. Cross-functional teams - a group of employees assigned to a functional department that meets a ○ team to resolve mutual problems ○ Advantages Permanent teams - a group of participants from Fast response in an unstable several functions who are permanently assigned environment to solve ongoing problems of common interest. focus on customers needs 13 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi What is the importance of organization structure in talent management? The organization structure serves as the basis for the talent plan or succession plan or the replacement chart. Last In, First Out Advantages - Last na pumasok, siya unang tatanggalin ○ Some advantages of the functional structure The importance of Vision (video) ○ reduced barriers across departments, - increased compromise ○ less response time& quicker decisions Action without vision better morale & enthusiasm ○ reduced administrative overhead Vision with action can change the world Disadvantages ○ dual loyalties and conflict Talent Planning ○ time and resources spend on meeting AKA Succession planning ○ unplanned decentralization Identifying and developing people for future positions in the organization 5. NETWORK ORGANIZATION A firm subcontracts many of its major functions to DESIGNING THE PROCESS separate companies and coordinates their Define the objectives of the succession planning activities from a small headquarters organization. / talent planning program. Approach to departmentalization that extends What is the organization trying to achieve? the idea of horizontal coordination beyond the Identify the target audience for the program: boundaries of the organization. ○ Role-based program — focused on Subcontractors may flow in or out of the system specific key positions, which are either when needed. 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 Advantages Establish the a set of leadership competencies or ○ global competitiveness qualities that are considered desirable in a ○ workforce flexibility / challenge high-potential person. ○ reduced administrative overhead These could include anything from financial Disadvantages acumen and cost control to aggressiveness, ○ no hand-on control vision, and risk-taking. ○ can lose organizational part Defined criteria are important, as they provide ○ employee loyalty weakened the framework for identifying and developing potential successors for key leadership positions Contingency Factors that Influence the Organization Structure IMPLEMENTATION PROCESS Strategy Environment Stage 1: Pre Planning Technology The transition from the design phase to implementation Interdependence and there are 3 steps: Explain the underlying goals of the process to those business leaders who will be charged with identifying and developing the company’s future 14 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi leaders. If the goal is to fill key leadership ○ Too New to Rate: This individual has positions from within, rather than having to look been in the organization less than six outside the organization, for example, convey months that, along with the rationale, such as saving Based on the ratings, and information from the money, developing better leaders, or creating individual profiles, business leaders then more bench strength in the organization. populate a performance and potential grid Impress upon business leaders their placing their people in the appropriate quadrants accountability for assessing their people. Foster Once people have been placed on the grid, a culture in which managers feel comfortable management begins to consider how to proceed identifying high-potential people, rather than and what types of development may be suitable being threatened by them. The overriding point for each individual. of view should be that finding talent is a positive Those at the top right quadrant, for example, are thing and that it won’t threaten those at the next provided with accelerated development and level of the organization. management looks for opportunities to provide Train participants on the company’s succession them with roles of greater complexity, impact, management process. Provide each business scope, and scale to continue their growth leader with a process map that explains the process, along with the corresponding forms and Stage 3: One-on-One Discussions charts. Assessing potential/future leaders can be subjective. Stage 2: Assessment To minimize this subjectivity, it is important to Business leaders begin considering their people, elicit input from a variety of people to ensure that asking themselves who has exhibited the all relevant parties are generally in agreement as performance and the potential to become the to who are the organization’s high-potentials and future leaders of the organization how they should be developed. Working with HR, they prepare a profile of a Following the discussions, replacement charts person’s career history, business are drawn up, reflecting each business critical accomplishments, strengths, and development position, potential successors, and their current needs and then rating them in both performance state of preparedness. and potential Sample Individual Profile with the following Stage 4: Group Meetings ratings: In order to further confirm that those who have ○ High Potential: An executive who has been selected are, in fact, the right people to be the versatility to play a number of developed as future leaders of the organization, executive leadership roles in the group sessions are held in which business organization; a leader who you are leaders meet with their boss and colleagues to confident will be in the next wave of review and debate the decisions that have been senior/executive leadership; he/she made up to this point. demonstrates the ability to see things These meetings might result in the need to from new perspectives and to quickly revise the profiles, grids, and charts that have adapt to change; would be difficult to been completed by the business leaders replace due to the value that he/she brings to the company. Stage 5: CEO Discussion ○ Expandable: An individual seen as Once everyone is in agreement on the selection capable of contributing to the of the organization’s future leaders, it’s time to organization in a role with greater make the case to the CEO and obtain his or her complexity, impact, scope, and scale input. than his/her current role. HR facilitates a series of discussions between ○ Well-Placed: Well suited for current role. individual business leaders and the chief Unlikely to move to the next level or take executive during which the latter reviews the on expanded responsibility within the designated high-potentials and their next two years. development opportunities within the company ○ Issue: A person who requires significant coaching or a person who is mismatched Stage 6: Ongoing Review to his/her position or a person who has Once a pool of successors has been chosen and become a blocker to another’s success. is being developed, regular reviews should be 15 4 BES 1 - 2025 BES31428: Talent Management Mr. Ferdie Magkasi held as the process remains very fluid. Leaders Companies need to forecast the demand for manpower move into top positions and new talent joins the ranks, while others leave the organization. Change happens every day and replacement charts and development plans may need to be revisited fairly frequently Forecasting Tools and Techniques Companies need to forecast the supply of the manpower 16

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