Johnson Human Resource

Information 6e
Chapter 7 Talent Management and
HR Planning

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 Talent Management (1 of 2)
• Hiring, socializing, developing, retaining
employees.
• Lockwood’s definition.
• All job levels.

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LO 7.1: Describe what talent management is and why it is important for

organizations.

Hiring, socializing, developing, and retaining employees:

• Talent management refers to the process of hiring, socializing, developing, and
retaining employees, while at the same time attracting highly skilled individuals
from the labor market.

Lockwood’s definition:
• Lockwood (2006) defines talent management as “the implementation of
integrated strategies or systems designed to increase workplace productivity by
developing improved processes for attracting, developing, retaining and utilizing
people with the required skills and aptitude to meet current and future business
needs.”

All job levels:

• Talent management can be used on all job levels in a company, from unskilled
workers to CEOs.
• The actual processes for identifying recruits would be different as organizations
have realized the importance of obtaining, developing, an optimizing talent to
maximize the probability of success.

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 Talent Management (2 of 2)
The Talent Management Life Cycle
• Reasons for lack of leadership.
• Steps in the life cycle.

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LO 7.1: Describe what talent management is and why it is important for

organizations.

Reasons for lack of leadership:

1. Lack of experience or training.
2. Expanding too quickly into new markets or geographies.
3. The changing needs of the employees.
4. The ongoing retirement of the “baby boomers.”

Steps in the life cycle:

1. The organization must estimate the demand for labor, whereby the organization
must identify high performing, and high potential employees.
2. The organization must estimate the supply of leaders available in both the labor
market and internal to the company, whereby the difference between the
estimated supply and demand for new and potential leaders can be calculated.
3. The organization must use HR programs to change the difference so that supply
and demand are equalized.

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 Talent Management Goals (1 of 5)
Identifying “High Performers”
• Challenging to identify.
• Core attributes.
• Communication skills.
• Drive.

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LO 7.2: Describe the challenges organizations face in attempts to achieving key

talent management goals.

Challenging to identify:
• According to existing research, high performing employees are 50%–100% more
productive than “average performers” (McKinsey and Company, 2001).
• However, it is difficult to determine the attributes of such performers.
• Job performance of past individuals to have succeeded in a position can be used to
identify attributes of those individuals.

Core attributes:
• Attributes, such as honesty and integrity, are relevant for all organizations.

Communication skills:
• Effective oral and written communication across multiple media, including face-to-
face, phone, email, and social media.

Drive:
• Motivation to succeed in any venture in life.

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 Talent Management Goals (2 of 5)
Identifying “High Performers”
• Ability and willingness to listen.
• Problem-solving skills.
• Imagination.

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LO 7.2: Describe the challenges organizations face in attempts to achieving key

talent management goals.

Ability and willingness to listen to the ideas of others:

• This helps in establishing good personal and business relationships.

Problem-solving skills:
• Many tasks in businesses, today, deal with solving problems.

Imagination:
• Thinking “outside the box.”

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 Talent Management Goals (3 of 5)
Table 7.1: Examples of Talent Pools at Ethical Bank
Examples of Talent Pools at Ethical Bank
Business leaders who are likely to be future country chief executives
A pool of midcareer hires from nonfinancial services disciplines or careers to
provide a source of new talent, thinking, and perspectives
A pool of 40 MBA recruits from key business schools globally (the plan is to
double this pool)
A talent pool for high-potential women
An international graduate pool of over 250 graduates with high potential
recruited for an international assignment as a precursor to a fast-track career
under a very rigorous selection route

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LO 7.2: Describe the challenges organizations face in attempts to achieving key

talent management goals.

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 Talent Management Goals (4 of 5)
Talent Diversity
• Consider diversity of talent pool.
• Address workforce diversity.
• Importance and challenges.
• HRIS support for DEI.

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LO 7.2: Describe the challenges organizations face in attempts to achieving key

talent management goals.

Consider diversity of talent pool:

• Organizations must consider the diversity of the talent
pool.
• There is danger in taking the view that because they
are successful now, all that is necessary in terms of a
future talent pool is to clone the skills, knowledge, and
competencies of current employees.
• The global environment is dynamic and fast moving.

Address workforce diversity:

• Organizations should pay particular attention to
women, people of color, members of the LGBTQ+
community, people with disabilities, older workers,
part-time workers, and temporary workers.

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• The workforce of the United States will only become
more diverse.
Importance and challenges:
• An employee base that mirrors the customer base can enhance customer service
and performance.
• Diversity can enhance innovation, problem-solving, creativity, flexibility, employee
engagement, business growth, and earnings.
• Diversity can increase conflict and contribute to decreased social integration in
teams.

HRIS support for DEI:

• HRIS can provide the data to identify high potential minority talent.
• It can also assist organizations in developing programs to mentor and train
individuals.
• AI-integrated HRIS can improve the effectiveness and neutrality of talent decisions
by eliminating human biases, although cases exist to show that biases can also
enter AI systems.

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 Talent Management Goals (5 of 5)
Talent Management and Corporate Strategy
• Understanding of corporate strategy.
• Aligning TM and corporate strategies.
• Walmart case study.

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LO 7.2: Describe the challenges organizations face in attempts to achieving key

talent management goals.

Understanding of corporate strategy:

• This is essential for the effective implementation of TM.
• Corporate strategy answers the question of what businesses an organization
should pursue so that they can maximize their long-term profitability.

Aligning TM and corporate strategies:

• This is required in order to ensure that the employees have the right skills and
tools to maximize the chances of the corporate strategy succeeding.

Walmart case study:

• Walmart decided to enter China in the mid-1990s.
• To support this decision, it took its successful TM practices, including the Walmart
Educational Institute, from the United States and implemented them in China
(Trunick, 2006).
• It also focused on hiring highly educated and qualified managers from the local
talent pool.
• This is an illustration of how HR must adapt and change their talent programs
based on future corporate needs and environmental conditions.

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 Technology and Talent
Management (1 of 7)
• Support through HRIS.
• Software selection.
• The role of software vendors.

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LO 7.3: Discuss how HRIS technology can support talent management.

Support through HRIS:

• Track the number of talented individuals hired.
• Track the training of these individuals, their job performance, and their retention.
• Provide information on current employee skills, succession relationships, and
leadership readiness.
• Assist in the implementation of talent programs, tracking adoption, and
participation by employees at all levels of the organization.

Software selection:
• It is important to adopt a TM software that supports a chosen TM strategy.
• According to the most recent SierraCedar survey (2019), over 85% of all
organizations indicated that they have implemented at least one TM software
application.
• SuccessFactors, the TM software firm founded by Lars Dalgaard in 2001, is a
specific example of the growth in the importance of TM software.

The role of software vendors:

• Software vendors offer a variety of products for specific TM functions.
• They also support tasks such as skills assessment, career development, and
employee life cycle management.

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• Vendors offer industry-specific solutions.
• Moreover, TM software is segmented into offerings for small, medium, or large
firms based upon their different needs.

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 Technology and Talent
Management (2 of 7)
Figure 7.1: Employee Skill Assessment and Succession Planning
With an HRIS

Source: © SAP. All Rights Reserved.

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LO 7.3: Discuss how HRIS technology can support talent management.

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 Technology and Talent
Management (3 of 7)
Figure 7.2: Talent Management Software Adoption Rates

Source: Sapient Insights (2022)

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LO 7.3: Discuss how HRIS technology can support talent management.

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 Technology and Talent
Management (4 of 7)
The Future of Talent Management Software:
Social Media and Talent Management
• Formal social media strategies.
• Increased flow of information.
• Corporate branding.
• Increasing use by job candidates.

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LO 7.3: Discuss how HRIS technology can support talent management.

Formal social media strategies:

• Organizations are developing formal social media strategies to support TM,
especially for employee recruitment.

Increased flow of information:

• Social media apps can increase the flow of information for making social
connections between candidates and the organization.

Corporate branding:
• Social media can enhance corporate branding and reach a broader audience.

Increasing use by job candidates:

• Prospective job candidates are increasingly using them
in their job searches.
• Example: nearly half of Gen Y and Gen Z employees
surveyed had applied for a job they found using social
media (careerarc, 2022).

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 Technology and Talent
Management (5 of 7)
Figure 7.3: Adoption Rates of Social Media for Recruitment

Source: SierraCedar (2019)

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LO 7.3: Discuss how HRIS technology can support talent management.

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 Technology and Talent
Management (6 of 7)
The Future of Talent Management Software:
Workforce Analytics and Talent Management
• Heavy investment in workforce analytics.
• Models KSA of (un)successful employees.
• Requires data from integrated HRIS.

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LO 7.3: Discuss how HRIS technology can support talent management.

Heavy investment in workforce analytics:

• Organizations are heavily investing in these initiatives.
• Over 50% of medium and large organizations have adopted workforce analytics
tools.
• However, nearly half of all organizations are considering replacing their current
systems.

Models KSA of (un)successful employees:

• Workforce analytics involves asking many questions about an individual employee
or a group of employees.
• The major goal of analytics for talent management is to model the KSAs of
successful and unsuccessful employees.
• This information is then used to evaluate potential hires.

Requires data from integrated HRIS:

• Workforce analytics to be effective and strong predictive models designed,
organizations must have an integrated HRIS that shares data between the HR
system and other organizational systems.
• Without data from an HRIS, insights from analytics

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regarding employee KSAs and performance will be
limited.

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 Technology and Talent
Management (7 of 7)
The Future of Talent Management Software:
Artificial Intelligence and Talent Management
• Goals of AI-enabled TM.
• Limitations of AI.

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LO 7.3: Discuss how HRIS technology can support talent management.

Goals of AI-enabled TM:

• Reduce the costs, time, and burdens associated with
managing these programs.
• Develop talent management programs that can better
identify and support organizational talent.
• Develop more effective job ads, screen applicants, and
even redirect applicants to other positions for which
they are qualified.
• Provide insights based on resumes, social media
content, open-ended assessments, and interview
responses that were previously too burdensome to do
with traditional methods.

Limitations of AI:

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• The quality of the prediction is limited by the quality of
the data and the appropriateness of the algorithm
used (bias).
• Managers and even the designers of the AI talent
management tools are often unable to understand and
explain how it arrived at the recommendation.
• AI use poses a risk of legal action based upon data
privacy concerns and automated handing of personal
data.
• There is a growing body of evidence that job applicants
and employees may feel that these tools are unfair.

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 Human Resource Planning (1 of 6)
• Goals of HRP.
• Knowledge, skills, and abilities (KSAs).
• Job analysis.

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LO 7.4: Describe the phases and goals of human resources planning.

Goals of HRP:
• HRP focuses on ensuring that the best available people
are working in the proper jobs at the appropriate time
so that organizational performance is maximized.
• This requires forecasting the number of employees it
will need.
Knowledge, skills, and abilities (KSAs):
• It is crucial that organizations can identify the
knowledge, skills, and abilities (KSAs) required in the
forecasted jobs.
Job analysis:
• Job analysis is the process of systematically obtaining
information about jobs by determining the duties, tasks,

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or activities of jobs, from which KSAs can be
estimated.

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 Human Resource Planning (2 of 6)
Figure 7.4: HR Planning

Source: Adapted from Bramham (1994).

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LO 7.4: Describe the phases and goals of human resources planning.

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 Human Resource Planning (3 of 6)
Human Resource Planning: Phase 1:
Analysis and Investigation
• External labor market.
• Internal labor market.
• Organizational assessment.

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LO 7.4: Describe the phases and goals of human resources planning.

External labor market:

• The external labor market reflects the market from which an organization derives
its employees.
• The increasing use of technology in the workplace has revolutionized the
geographical base of the external labor force.

Internal labor market:

• The internal labor market reflects the availability of current employees with the
requisite KSAs to fill open positions.
• This market is affected by, and reflects, the historic movement of employees
within the company by job.

Organizational assessment:
• An organizational assessment focuses on the current
state of the organization, including its philosophy,
culture, values, and beliefs.
• A key perspective of an organizational assessment is an

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understanding of how the employee is viewed by the
organization.

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 Human Resource Planning (4 of 6)
Human Resource Planning: Phase 2:
Forecasting
• Estimates of supply and demand.
• Assumptions about data.
• Accuracy increasing over time.

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LO 7.4: Describe the phases and goals of human resources planning.

Estimates of supply and demand:

• Forecasting is concerned with the identification of strategic options and the
creation of HR scenarios about labor force demand and supply.

Assumptions about data:

• The assumption of clean, accurate, and current HRIS data is fundamental to the
success of forecasting.

Accuracy increases over time:

• HRIS is becoming more accurate and able to support
the estimation of demand and supply of potential
employees.
• More sophisticated AI-based systems may also improve
or understand forecasts too.

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 Human Resource Planning (5 of 6)
Human Resource Planning: Phase 3:
Planning and Resourcing
• Tactical and operational plans.
• Eliminate current/future need gaps.
• Choices to be made.

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LO 7.4: Describe the phases and goals of human resources planning.

Tactical and operational plans:

• This phase focuses on the specific development of the tactical and operational
plans to support future employee needs across all functional HR areas.

Eliminate current/future need gaps:

• Developing programs that address and eliminate the gap between current
employee staffing levels and future needs holds the key in this phase.

Choices to be made:
• Some choices, such as the decision to use technology to support recruiting and
training, need to be made during this phase.

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 Human Resource Planning (6 of 6)
Human Resource Planning: Phase 4:
Implementation and Control
• Implementation of phase 3.
• Evaluation of new programs.

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LO 7.4: Describe the phases and goals of human resources planning.

Implementation of phase 3:
• This involves the implementation of the planned HRM programs from phase 3.

Evaluation of new programs:

• One of the most important aspects of HRP is the
evaluation of these new programs to determine if they
have closed the gap between supply and demand.

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 Job Analysis (1 of 3)
• Development of job descriptions.
• Uses of job descriptions.
• Importance of job descriptions.

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LO 7.5: Describe the role of job analysis and job descriptions in talent
management.

Development of job descriptions:

• Job descriptions define working contract between the employee and the
organization.
• Job descriptions are developed from job analysis

Uses of job descriptions:

• Evidence for any litigation involving unfair discrimination in hiring, promoting, or
terminating employees.
• Development of all the HRM programs, especially TM in organizations.
• Development of compensation structures.
• Employee disciplinary programs and union grievances.

Importance of job descriptions:

• Job descriptions are often referred to as the “heart” of the HRM system or the
“blueprints” that underlie all HR activities.
• For this reasons, it is critically important that they be accurate and timely.

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 Job Analysis (2 of 3)
Approaches and Techniques to Job Analysis
• Identify job information needed.
• Identify sources of job information.
• Determine methods of collecting data.
• Consider using standardized techniques.

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LO 7.5: Describe the role of job analysis and job descriptions in talent
management.

Identify job information needed:

• This information can include tasks, duties, responsibilities, the knowledge required,
performance standards, job context, and the equipment used.
• A determination of what specific information will be used for the analysis of all
jobs must be made to maintain consistency across the final job descriptions.

Identify sources of job information:

• The best sources are usually job incumbents and their supervisors.
• Professional job analysts can be used for newly created or complex jobs.
• Company records and the internet, specifically the U.S. Department of Labor’s
O*Net database, are also useful sources of information about jobs.

Determine methods of collecting data:

• Methods include interviews, questionnaires, observation, and focus groups.
• The choice will depend on the number of jobs to be analyzed and the funding
available.

Consider using standardized techniques:

• Standardize techniques may help enhance the final job description.

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• Examples include:
• Functional job analysis.
• The position analysis questionnaire (PAQ).
• Task inventory analysis.
• The critical incident method.

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 Job Analysis (3 of 3)
HRIS Applications
• O*Net.
• Online questionnaires.
• Tools and templates.

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LO 7.5: Describe the role of job analysis and job descriptions in talent
management.

O*Net:
• Organizations can take advantage of O*Net, an online repository of information on
more than 1,000 broad occupations, to help guide their development of job
descriptions.
• Examples: O*Net contains descriptions for professors in physics, architecture,
sociology, forestry, business, and more.

Online questionnaires:
• Job analysis questionnaires can be administered online
to job incumbents and supervisors, and the resulting
job descriptions can be analyzed statistically to finalize
job descriptions
Tools and templates:
• The Society for Human Resource Management (SHRM)
provides many job analysis tools and templates.

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• Many vendors offer these tools as stand-alone
products or components of a larger product offering.

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Appendix: Accessibility Content,
Long Descriptions for Images

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 Figure 7.3: Long Description
• A bar chart illustrates social media platform usage across different company
sizes: small, medium, and large on LinkedIn, Facebook, X, and YouTube.
LinkedIn shows high usage across all sizes, with large companies leading
slightly. Facebook also shows significant usage, with large companies
showing the highest engagement, followed by medium and then small
companies. On X, medium and large companies are more active than small
ones, but overall usage is lower compared to LinkedIn and Facebook.
YouTube usage shows a similar trend, with large and medium companies
using it more than small companies. The chart uses different shades to
represent each company size, suggesting LinkedIn and Facebook are
preferred platforms for all company sizes, with smaller firms showing lower
engagement on X and YouTube.

Access the corresponding image.

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 Figure 7.4: Long Description
• A flowchart shows the HR planning process across four primary stages:
"Analysis and Investigation," "Forecasting," "Planning and Resourcing," and
"Implementation and Control." Each stage flows sequentially down the chart. The
"Analysis and Investigation" phase includes inputs from the internal labor market,
external labor market, organizational assessment, and corporate strategy. These
inputs are analyzed to determine labor "Supply" and "Demand," identifying
potential HR imbalances (qualitative and quantitative). The chart addresses
various HR elements, including working patterns, retention, health and safety,
employee release, training and development, employment relations,
organizational structure, recruitment and selection, equality of opportunity, pay
and reward, and performance management. In the "Implementation and Control"
stage, specific HR activities involve using HR techniques, policy development
and review, and utilizing HR information systems and technology. A "Feedback"
loop at the bottom suggests a continuous improvement cycle for refining the HR
planning process.

Access the corresponding image.

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