See below Term Paper Example | Topics and Well Written Essays - 2500 words

See below - Term Paper Example On the third part of the paper, the impact of the great power and the attitude of the corporation were also discussed. The documentary entitled â€Å"The Garden† was used in this discussion. It displayed the attitude shown by the corporation. And the last part is the conclusion which is the idea and the opinion of the writer were written. On January 1, 2002, an article was published by The Washington Post written by Michael Grunwald which was entitled â€Å"Monsanto Hid Decades of Pollution: PCB’s Drenched Ala. Town, But No One Was Ever Told.† This article is regarding the contamination of a nearby creek from an area of wet lands where the Monsanto Factory hid PCB toxins. It was said on the article that some scientists tested the said creek from toxicity by releasing fish and in three and a half minutes, most of the fish died. A lawsuit had been filed against the corporation but on January 5th the corporation issued a clarification regarding the article stating that the Monsanto Corporation had no involvement in the ongoing lawsuit concerning PCB pollution which was made by the old Monsanto Corporation in Anniston Alabama Solutia Incorporated. The corporation said that the Monsanto Corporation’s chemical operation had been spun off in the year 1997 into a Solutia Incorporated which is responsible for the issue and which is the defendant of the lawsuit. The above example is just one of the happenings that showed the power and attitude of the Monsanto Corporation. The growing power, attitude and global control of Monsanto Corporation lead to the violation of the essence of â€Å"dirt,† leading to the farmers to become slaves and the risk of human and animal’s health. Monsanto Corporation was founded in the year 1901 at St. Louis Missouri. John F. Queeny, an Irish immigrant and a 42-year-old who is a purchaser of a Drug Company of the Meyer brothers, started this kind of

Vatican council 2 Essay Example | Topics and Well Written Essays - 500 words

Vatican council 2 - Essay Example O’Malley himself supports the third interpretation and holds that Vatican II marks a great change in the history of the Church. In O’Malley’s opinion, the Council has ushered in decrees â€Å"that marked a real departure from previous Catholic practice.† These include the license to engage in joint prayer with Protestants and attend services in Protestant churches. The Decree on Religious Liberty also put an end to the earlier  Ã¢â‚¬Å"ideal that Catholicism should be established as the official religion of every nation, even the United States.† O’Malley contends that the radical aspect of Vatican Council II is its changing emphasis on the style of the Church. This emphasis is seen in the â€Å"striking shift in language† in the documents of the Council. Departing from the abrupt, authoritarian tone of earlier Councils, Vatican Council II adopts an â€Å"invitational style† which attempts to foster dialogue, respect for conscience, freedom of speech and a spirit of participation. The new â€Å"invitational† style of Vatican II is seen in: the emphasis on partnership and collaboration in relations among church hierarchy and with the laity; the emphasis on the main pastoral ministry being service; openness to change and development; a conciliatory attitude towards all faiths; and the active participation of the entire congregation in the liturgy. O’Malley’s article attempts to support the author’s contention that the Vatican Council II ushers in transformation in the style of the Church. The five points O’Malley cites in order to support his stand are very credible as they mark a change of direction in the Church. However, O’Malley argues that even this change is grounded in the past tradition of the Church. The â€Å"partnership and collaboration† (O’Malley, 2003) which the Council recommends in the relationship of the Church hierarchy is in line with the traditional understanding of the ‘Mystery of the

Research-Based Studies Essay Example | Topics and Well Written Essays - 1000 words

Research-Based Studies - Essay Example Apart from reported lower birth rates in the test group, no other significant differences were found between the two groups, and it was concluded that there are no significant differences in the likelihood of having a cesarean delivery between the women that had induced labor and those which awaited spontaneous labor, which is contradictory to previous studies that reported a 2.5-fold increase in the likelihood of a cesarean delivery among women with induced labor (Nielsen, et al., 2005). A flowchart showing how the researchers possibly designed the study is shown in figure 1. The results of the study and the evidences were consistent with the conclusion that having induced labor does not increase the likelihood of having a cesarean delivery as compared to awaiting spontaneous labor. The results were processed using statistical analyses, and even if the rates of cesarean delivery for the test group was 8/116 and the control group 8/110 seem variable the differences were statistically non-significant according to tests (Nielsen, et al., 2005). The cesarean delivery rate for nulliparous patients in the test group (6/45) was also non-significantly different from the control (6/58). The results corroborate the conclusions of the researchers with regards to the use of induced labor in pregnancy, implying that whether or not a woman chooses to undergo induced labor or not, her chances of delivering cesarean delivery is just the same as with any other woman. Ethical Issues The study could have encountered several possible ethical issues, especially since the test subjects were people. For one, the autonomy of the test subjects might have been challenged so as to keep the homogeneity of the sampled population, and they might have to undergo certain restrictions in order to do that (Jones, 2003). To fill in the number of people needed for the study to be initiated all women that were possibly included in the assignment criteria, their informed consent have to be obtaine d first. If the subjects were to be forced to participate without their knowledge and consent, not only would their autonomy be challenged but their patient rights would also be violated (Jones, 2003). Thus before the women were observed in the study, aside from informing them of the purpose, they were also given an option of participating, along with the causes and consequences so as for them to weigh in on whether to become part of the study or not. In relation to this, confidentiality is also an important ethical issue, and this was done possibly through random assignment of codes instead of referring to each participant with their names, to keep patient information private. Research Type The study of whether or not the induction of labor increases the likelihood of cesarean delivery among expectant mothers was conducted through an experimental research method. Based on the definition, the research studied causal relationships as well as theories, and these were tested and valida ted or contradicted based on the collected results (Brink & Wood, 1998). As indicated in the paper, most of the test subjects that were included in the study were selected based on certain criteria such as cephalic presentation, singleton gestation, maternal age greater than 17 years, as well as being a candidate for vaginal

PHYSICS (SOLUTIONS) Essay Example | Topics and Well Written Essays - 750 words

PHYSICS (SOLUTIONS) - Essay Example 100Pa). Here, it is essential that the pressure decreases exponentially, i.e. without local minimums and maximums (with the exception of atmospheric fluctuations); so, our criterion mb is valid. Roughly, from the graph attached we can localize km, say, km. e) Let us analyze the pressure curve . It is necessary to note that values of altitude are in log-scale. Nevertheless, even in linear scale dependence is non linear; see ('Atmospheric pressure' 2008) and (Ahren 2000). This can be explained by 'exponential atmosphere' model. This is very rough model for a column of gas extending to a great height; see details in (Feynman et al 1964). Such gas column is supposed to be at thermal equilibrium without any disturbances, so in the model. Model gives an obvious relationship where is the mass of the gas molecule (supposed to be constant in the model), is the acceleration due to gravity, and is the total number of the gas molecules in the unit section of a gas column. Solution of this relationship is ; here . So, the pressure exponentially decreases with increasing of altitude. Such decreasing depends upon the mass of gas molecule: the pressure of lightweight gases (e.g. hydrogen) decreases more slowly with altitude then the pressure of heavy -weight gases (e.g. oxygen). Here, and are weights of a ball... oxygen). Task 2 This task can be solved using Archimedes' principle. Let us make schematic illustration for a helium balloon and all the forces applied to it: Here, and are weights of a balloon and helium inside it, is the net force of buoyancy (for both balloon and helium inside). In accordance with Archimedes' principle, or the law of upthrust, a balloon is buoyed up by a force equal to the weight of the displaced air. A balloon is in state of rest when resulting force equals to zero, i.e. when . a) A balloon is assumed to be a sphere with a diameter of 20cm, so m. Hence, its volume is , or m3, or roughly litres (because 1 litre equals to m3). b) Let us estimate the mass of helium in the balloon. Let us suppose that helium is an ideal gas at and atmosphere. The ideal gas law gives volume occupied by a mole of an ideal gas: litres; here is universal gas constant (Feynman et al 1964). Therefore, the balloon contains moles of helium. The relative atomic mass of helium is 4, so a mole of helium weights 4 grams. Hence, helium in the balloon weights approx. grams. c) Using the graph attached for the task 1, namely dependence , let us define where km. Roughly, mb, say, mb or atmosphere. Let us estimate density of the air at the altitude km. For exponential model of atmosphere we have ; see (Feynman et al 1964). The ideal gas law or allows us to make estimations in terms of air density ; here grams per mole is the mean molar mass of air. For isothermal atmosphere () , so . Then, , so . Let us compute , the density of air at sea level: grams per litre. Let us estimate , the density of the air at the altitude km: or grams per litre. d) It is necessary to note that almost all numeric

Handstar Inc Essay Example for Free

Handstar Inc Essay Handstar Inc. was created a little over four years ago by two college roommates to develop software applications for handheld computing devices. It has since grown to ten employees with annual sales approaching $1. 5 million. Handstar’s original product was an expense report application that allowed users to record expenses on their handheld computers and then import these expenses into a spreadsheet that then create an expense report in one of five standard formats. Based on the success of its first product, Handstar subsequently developed three additional software products: a program for tracking and measuring the performance of investment portfolios- a calendar program, and a program that allowed users to download their email messages from their PC and read them on their handheld computers. The two founders of Handstar have recently become concerned about the competitiveness of their offerings, particularly since none of them has been updated after their initial launch. Therefore, they asked the directors of product development and marketing to work together and prepare a list of potential projects for updating Handstars current offerings as well as to develop ideas for additional offerings. The directors were also asked to estimate the development costs of the various projects, product revenues, and the likelihood that Handstar could retain or obtain a leadership position for the given product. Also, with the increasing popularity of the Internet, the founders asked the directors to evaluate the extent to which the products made use of the Internet. The product development and marketing directors identified three projects related to updating Handstars existing products. The first project would integrate Handstars current calendar program with its email program. Integrating these two applications into a single program would provide a number of benefits to users such as allowing them to automatically enter the dates of meetings into the calendar based on the content of an email message. The directors estimated that this project would require 1250 hours of software development time. Revenues in the first year of the products launch were estimated to be $750,000. However, because the directors expected that a large percentage of the users would likely upgrade to this new product soon after its introduction, they projected that annual sales would decline by 10 percent annually in subsequent years. The directors speculated that Handstar was moderately likely to obtain a leadership position in email/calendar programs if this project were undertaken and felt this program made moderate use of the Internet. The second project related to updating the expense report program. The directors estimated that this project would require 400 hours of development time. Sales were estimated to be $250,000 in the first year and to increase 5 percent annually in subsequent years. The directors speculated that completing this project would almost certainly maintain Handstars leadership position in the expense report category, although it made little use of the Internet. The last product enhancement project required enhancing the existing portfolio tracking program. This project would require 750 hours of development time and would generate first-year sales of $500,000. Sales were projected to increase 5 percent annually in subsequent years. The directors felt this project would have a high probability of maintaining Handstars leadership position in this category and the product would make moderate use of the Internet. The directors also identified three opportunities for new products. One project was the development of a spreadsheet program that could share files with spread-sheet programs written for PCs. Developing this product would require 2500 hours of development time. First-year sales were estimated to be $1,000,000 with an annual growth rate of 10 percent. While this product did not make use of the Internet, the directors felt that Handstar had a moderate chance of obtaining a leadership position in this product category. The second new product opportunity identified was a Web browser. Developing this product would require 1875 development hours. First-year sales were estimated to be $2,500,000 with an annual growth rate of 15 percent. Although this application made extensive use of the Internet, the directors felt that there was a very low probability that Handstar could obtain a leadership position in this product category. The final product opportunity identified was a trip planner program that would work in conjunction with a PC connected to the Web and download travel instructions to the users handheld computer. This product would require 6250 hours of development time. First-year sales were projected to be $1,300,000 with an annual growth rate of 5 percent. Like the Web browser program, the directors felt that there was a low probability that Handstar could obtain a leadership position in this category, although the program would make extensive use of the Internet. In evaluating the projects, the founders believed it was reasonable to assume each product had a three-year life. They also felt that a discount rate of 12 percent fairly reflected the companys cost of capital. An analysis of pay-roll records indicated that the cost of software developers is $52 per hour including salary and fringe benefits. Currently there are four software developers on staff, and each works 2500 hours per year. Which option should they choose?

Talent Management in the Corporate Sector

Talent Management in the Corporate Sector A Talent Management INTRODUCTION:- Talent management is the process that emerged in 1990 and continues to be adopted, as more companies came to realize that their employees talent, skills drive their business success. Companies that have put into practice talent management have done so to solve an employee retention problem. The issue with many companies today is that many organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent. A talent management system must be worked into the business strategy and implemented in daily processes throughout the company as a whole. It cannot be left solely to the human resources department to attract and retain employees, but rather must be practiced at all levels of the organization. The business strategy must include responsibilities for line managers to develop the skills of their immediate subordinates. Divisions within the company should be openly sharing information with other departments in order for employees to gain knowledge of the overall organizational objectives. Talent management refers to the process of developing and integrating new workers, developing and retaining current workers, and attracting highly skilled workers to work for your company. Talent management in this context does not refer to the management of entertainers. The term was coined by David Watkins of Softscape published in an article in 1998. 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. IMPORTANCE OF TALENT MANAGEMENT IN US CORPORATE SECTOR US sector always want to grow and improve their system and processes must focus on people practices that allow or foster their growth and improvement. The best practices are known. The key variables (leadership competencies, experience and skill, interest rewards) that motivate people to succeed have been identified and successfully put into practice. Talent Management is no loger a cutting-edge field being solely tapped by pioneers. It is a viable path towards and improving organizational performance. Integrated, strategically aligned human capital asset management systems have provided significant economic benefits to companies that have embraced them as ongoing processes instead of one-time events. Research done on the value of such systems to companies consistently finds benefits in these seven critical economic areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. This research clearly shows that adopting and investing in best-practice talent management systems results in bottom-line improvement in each of these key areas:- 1) Increase Revenue It was initially thought that companies that make more money were associated with better talent management practices only because they could afford them (.19 correlation), but the 2001 Watson Wyatt Human Capital Index Study showed that talent management practices actually increase financial performance (.41 correlation). According to Watson Wyatts research 15% of profit performance is driven by: Management participation Open management style Taking some risks, but not too many Top managers spending 20% of time with customers Around 20% of top management should be outsiders Management training is deemed important Top managers are effectively incentivized Succession planning is done A good appraisal system is in place Employees get feedback In addition to supporting Becker and Huselids 1998 results, the 2001 Watson Wyatt Human Capital Index study showed precisely which HR practices have an impact on the bottom line. 49 specific HR practices across 6 dimensions played the greatest role in creating shareholder value. The research quantified exactly how much an improvement in each practice could be expected to increase a companys market value. For example, a company that makes a significant improvement (one standard deviation) in all of the practices categorized under Total Rewards and Accountability should see its value improve by 16.5 percent, and a significant improvement in 43 key HR practices is associated with an increase of 47 percent in market value. Results included: 16.5% impact on company market value from total rewards and accountability 9% impact from a collegial, flexible workplace 7.9% impact from recruiting and retention excellence 7.1% impact from the integrity of communications 6.5% impact from the implementation of focused HR service technologies 33.9% loss from non-prudent use of resources Careful inspection of all the data shows that for every available correlation calculated over time, the relationship between past HR practices and future financial performance is stronger than the relationship between past financial outcomes and future HR practices. This is the first study to show that HR practices actually increase financial performance (.41 correlation) instead of inferring that companies that make more money can afford better HR practices (.19 correlation). Given companies of comparable size, those whos CEOs exhibited more emotional intelligence competencies showed better financial results as measured by both profit and growth. The divisions of leaders with a critical mass of strengths in emotional intelligence competencies outperformed revenue targets by a margin of 15-20 percent. 2) Customer Satisfaction Knowing and using the critical competencies associated with success creates results. The 1998 Watson Wyatt study, Competencies and the Competitive Edge, showed that when an organization identifies and communicates the core competencies that it needs to be successful in the present and the future, it has developed a powerful tool to help meet its goals. Competencies define and communicate an organizations strategy and help employees to understand that strategy and achieve its goals. The many roles that competencies can play in an organization include: Articulating what the organization values Providing a common language for employees and managers to describe value creation Establishing a new paradigm for human capital management programs (organizational levers) Focusing on the development of the individual instead of an organizational structure Linking pay, promotions and growth directly to what the organization values to be successful Guiding employees and managers to what is expected and how value is defined even in times of dramatic change and restructuring Competencies serve as a powerful communication vehicle to focus all members of the organization on the skills and activities that will create both value and wealth. Competency-based programs can make a difference to the bottom line. Analysis of the financial data clearly shows that companies with competency- based programs perform better in the marketplace. Such programs help focus the organization and all the individuals in it on what they can do to add value to the organization. Contributions are role-related rather than position-related. Adopting this view of contribution to value will help organizations think differently about their human resource and development programs. Organizations can focus on competencies needed for the future and identify the roles that employees do and must play. Programs that build employee commitment can bring great returns. Data from this and other Watson Wyatt studies clearly demonstrate that both individual and organizational performance increase when employees are committed to their companies. Ensuring that organizational levers that build employee commitment are in place and working will affect the bottom line. This was most notable when the competencies focused on attributes and behaviors that promoted customer satisfaction. Training is important, but it is no substitute for good management. A large majority of the organizations participating in Watson Wyatts study identified training and development as the driver of future corporate success. The high-performing companies identified it slightly more often than the others. Putting people first by adopting high performance management practices translates into improved morale, more innovation, better customer service, higher productivity, greater cost reduction, greater flexibility, and increased skills development. 3) Improve Quality Motor vehicle manufacturing firms in US implementing flexible production processes and associated practices for managing people enjoyed 47 percent better quality and 43 percent better productivity than firms relying on traditional mass-production approaches, according to a worldwide study by Wharton Schools John Paul McDuffie. Overall financial performance improved 3.8% per year for ten years when companies stayed with traditional talent management practices, 6.8% when they realized they needed to re-design their talent management practices, and 10.1% when they launched a completely new talent management system Watson Wyatts 2002 European Human Capital Index study shows that 36 key human capital variables (practices and policies) are associated with an almost 90% increase in value. 4) Increase Productivity Initial research on 740 companies HR practices found that those using high performance work systems (HPWS are defined as integrated talent management practices) had economically and statistically significantly higher levels of company performance. One standard deviation of improvement on their bell curve of integrated talent management systems was associated with changes in market value from $15,000 to $60,000 per employee. Employee productivity was calculated as the logarithm of net sales per employee using gross rate of return on assets (GRATE), which is less sensitive to depreciation and other non-cash transactions, and Tobins q, a future-oriented and risk-adjusted capital-market measure of performance that reflects both current and anticipated profitability and often mirrors the price that the market will pay for intangible assets (goodwill). Further research that included three US surveys and the experience of more than 2,400 companies continued to show significant impact of systems that select, maintain, develop, and reinforce employee performance on both market-based and accounting-based measures of company performance (while statistically controlling for RD investment, industry market changes, capital improvements, sales growth trends, etc.). Moving from the 60th percentile of integrated HPWS to the 80th percentile improved market valuation by $20,000 per employee. This reflects both operational excellence and alignment with the companys strategy. When the elements are present, but not aligned with the company strategy there is a 27% drop off in measured gains. Gallup Management Journal reported the following in 2001: †¢19% of all employees are actively disengaged from their jobs †¢55% of all employees are not engaged in their jobs and †¢26% of all employees are engaged in their jobs at a cost of $292-355 Billion per year to the US economy. Great people management equals great shareholder value: European companies with the best human capital management deliver around twice as much shareholder value as their average competitors. 5) Reduce Cost ASTD and SHRM studies companies that is renowned for their ability to retain top talent (Linbeck, Kennedy Rossi, Zachary, Dow Chemical, Edward Jones, Great Plains, Sears, and Southwest Airlines). One key finding was that all of these companies implemented competency-based position profiles so that employees understood the skills and abilities required to move into leadership positions. They must also avoid wasting their money on bad human capital investments: The 2001 Watson Wyatt Human Capital Index study showed precisely which HR practices have an impact on the bottom line. 49 specific HR practices across 6 dimensions played the greatest role in creating shareholder value. Additionally, one dimension, Prudent Use of Resources identifies six practices that diminish shareholder value (e.g. training that is not connected to the business objectives and not evaluated for ROI). A new book shows how Microsoft, Intel, Nokia, Starbucks, Singapore Airlines and 20 other world-class organizations are luring and holding high-quality employees. One senior executive said, Microsoft has a market capitalization of $450 billion, the largest in the world. If you add up every desk and chair, every computer, every building, every piece of land, everything we own, including the $17 billion or so we have in the bank, it comes to about $30 billion. If you then add in things like goodwill and other financial assets, maybe youll come up with another $70 billion, if you really struggle. But that means that there is $350 billion more that people have given us credit for that is not there. What is it? Well, its the stuff in smart peoples heads. With that knowledge Microsoft has built and maintains a human capital management system very similar to Mundo Strategies system to prevent employees from wanting to leave the company even as the stock took a beating in the past few years. Supervisors who received training in how to listen better and resolve employee problems found that lost-time accidents were cut by 50 percent, formal grievances were reduced from 15 to 3 per year, and productivity goals were exceeded. Retention is one of the more obvious areas that effective talent management practices can affect. What attracts and retains high performers? 79% stay because of opportunities for advancement 69% stay because their job is redesigned 65% stay because they are learning new skills in their current job. Why do high performers resign? 56% leave because they are dissatisfied with company management 56% leave due to inadequate opportunity for promotion 50% leave due to dissatisfaction with pay 6) Reduce Cycle Time There is very little research into the impact of talent management practices on company cycle time. One classic work on cycle time showed that steel mini-mills using a high-commitment approach to management required 34 percent fewer labor hours to make a ton of steel and had a 64 percent better scrap rate than mini-mills using a command and control approach. 7) Increase Return to Shareholders Market Capitalization The five highest return to shareholders from 1972-1992 (Southwest Airlines Co. 21,775%, Wal-Mart Stores, Inc. 19,897%, Tyson Foods, Inc. 18,118%, Circuit City Stores, Inc. 16,410%, and Plenum Publishing 15,689%) differentiated themselves from their competitors and the market only through the way they managed their people during the infancy of talent management. Whereas at the start of the 1990s studying its earnings and fixed assets and adding a token amount for goodwill invariably gauged a companys stock market valuation, by the end of the decade a seismic shift had taken place. When accountants Ernst Young came to look at the issue, they found that the largest slice of most companies market capitalization was held in intangibles primarily, the talent, knowledge and teamwork of its staff. In high-tech companies like Nokia, the percentage was as high as 95 per cent; but even old economy stalwarts like BP, despite its huge investments in oil platforms and exploration equipment, notched up a significant 74 per cent. The upshot was that even companies operating in the same sector with similar earnings could experience widely differing stock valuations. Those ignoring the new emphasis on intangibles invariably found themselves penalized by the markets. Watson Wyatt also reported that a 26% increase in market value in 2000 was driven by common talent management best practices: Use of knowledge and contract workers Recruiting excellence Consistent pan-European HR practices Good union-management relations Lack of hierarchy, clear leadership Teamwork and 360 ° feedback Customer-focused environment Remuneration Sharing information with employees The difference between a non-strategic HR system and one that has removed the barriers to performance are dramatic. Improving the relative sophistication of the HR system by adopting best practices does not provide measurable value (20%-60% adoption of a strategic HR system). Integrating the strategic elements of HR into the broader fabric of the organization provides a significant improvement in shareholder value (60%-80%). When HR systems have adopted best practices and aligned those systems with business priorities and initiatives they return the greatest shareholder value (80%-100%). The five-year survival rates of initial public offering showed that firms whose talent management practices scored in the top one-sixth of IPO firms had a 33 percent higher probability of surviving than those in the lowest one-sixth. Firms in the upper one-sixth in providing financial rewards to all employees, not just managers, had almost twice as much chance of surviving for five years, according to research by Theresa Welbourne of Cornell and Alice Andrews of Vanderbilt. COMPETITIVE ADVANTAGE OF TALENT MANAGEMENT IN US CORPORATE SECTOR Taking a systemic approach to talent management Getting the right people in pivotal roles at the right time should be nothing new to HR professionals, but done effectively, talent management can create longterm organizational success. Here, Lynne Morton and Chris Ashton show how to align talent management strategies to business goals, integrate all related processes and systems and create a talent mindset in organization. TALENT MANAGEMENT (TM) IS more than a new language for old HR work, or just the next hot new thing for HR practitioners and managers to get involved in. For many organizations, it has become a strategic imperative. McKinsey research1 reveals that 75 percent of corporate officers were concerned about talent shortages and Deloitte reports that retaining the best talent is a top priority for 87 percent of surveyed HR directors. This need for talent and, therefore, its expert management is also driven by macro trends including: †¢ New cycles of business growth, often requiring different kinds of talent. †¢ Changing workforce demographics with reducing labor pools and, therefore, a talent squeeze. †¢ More complex economic conditions which require segregated talent and TM. †¢ The emergence of new enterprises which suck talent from larger organizations. †¢ A global focus on leadership which is now permeating many levels of organizations. The strategic importance of talent management:- On the basis of substantive research undertaken for our forthcoming report , they argue that good TM is of strategic importance and can differentiate an organization when it becomes a core competence and when its talent significantly improves strategy execution and operational excellence. For example, imagine your company has the right talent in pivotal roles at the right time. What difference will these people make to revenues, innovation and organization effectiveness compared with having to operate without them? What is the cost of the lost opportunities and the downtime and replacement costs of losing critical talent? What are the consequences of having to make do with the wrong kind of leaders and managers in the top two executive layers or of not having successors groomed and ready to replace them? Yet generally, organizations still struggle with TM. According to research, three-quarters of business leaders have invested dedicated resources in TM but most say they havent yet felt the impact of doing so.3 Why not? Through one of the research, they tried to provide reasons by asking these questions: †¢ Why are they doing TM? Is it for the individual, the organization or both? †¢ What do they mean by talent and talent management? †¢ What are their propositions for attracting and retaining talent? †¢ How do they manage and use the talent in their organization needs? †¢ How are internal roles and resources deployed appropriately to support TM? †¢ How is TM integrated across HR processes and with business planning and strategy execution processes? Talent management at FDC its focus, leadership, acquisition, retention, evaluation and tools has evolved over five years, and continues to be a work in progress. The evolving talent plan aligns with goals, business strategy and their organizational implications. The talent office annually reviews analytics and recalibrates talent to align with growth and other organizational needs. The current growth objective is 15 percent. Ours is a numbers business, which tends to reflect a short-term view, says Annmarie Neal, senior VP, organization development. Yet, we also have to build a leadership bench and talent pools, not around the execution capabilities were known for, but on a customer-solutions focus and strategic foresight. Investments in talent arent short-term they need at least three-year horizons to see returns. The key issue for FDC is to accurately identify high potentials with different capabilities such as strategic thinking, partnership building, results orientation, innovation and talent leadership and then build succession depth. In effect, they are building talent balanced with buying it, guided by the notion of critical positions that is, those positions that positively impact on the strategic goals or their execution. They are now applying their processes for identifying, assessing and growing future leaders to our more junior, untested populations who we expect to be our next VPs. Technology, as Neal explains, has allowed them to do more in depth and breadth with the same headcount. TM initiatives at FDC include: †¢ Talent profiling of individuals. †¢ Conducting calibrations of business performance and key results behaviors. †¢ Assessing and forecasting succession depth. †¢ Implementing organizational assessment summaries to give status reports for leadership talent. †¢ Using just-in-time, action-learning programs and talent-sharing assignments. †¢ Developing talent at risk tools based on potential derailers and defection triggers. †¢ Introducing a talent scorecard with five perspectives, each of which has critical indicators hiring. As we see it, TM is a strategic and holistic approach to both HR and business planning or a new route to organizational effectiveness. This improves the performance and the potential of people the talent who can make a measurable difference to the organization now and in future. And it aspires to yield enhanced performance among all levels in the workforce, thus allowing everyone to reach his/her potential, no matter what that might be. Though this interpretation of talent is inclusive, it strikes a strategic balance between performance and potential. Performance historically, the primary focus of measurement and management concerns both the past and the present, whereas potential represents the future. Our position assumes that potential exists, it can be identified and it can be developed. Here are specific ways that two case organizations inthe report define talent: †¢ Executive management team leaders, directors/VPs and A-player managers in all functions plus Bplayers as potentials. †¢ Future business leaders with more strategic capabilities than just operational excellence skills -plus specialist talent able to execute business integration projects on time and to budget. Clearly, there isnt a single consistent or concise definition. Current or historic cultural attributes may play a part in defining talent, as will more egalitarian business models. Many organizations acknowledge that talent, if aligned with business strategy or the operational parameters of strategy execution will change in definition as strategic priorities change. For example, in start-up businesses, the talent emphasis will be different to the innovative or creative talent needed to bring new products to market. Any definition needs to be fluid as business drivers change, so will the definitions of talent. What TM involves Talent management is the integration of different initiatives, or constructs, into a coherent framework of activity. There are certain crucial components and a useful model for defining TM is to think of it in these key words: †¢ Ethos embedding values and behavior, known as atalent mindset, to support the view that everyone has potential worth developing. †¢ Focus knowing which jobs make a difference and making sure that the right people hold those jobs at the right time. †¢ Positioning starting at the top of the organization and cascading throughout the management levels to make this a management, not HR, initiative. †¢ Structure creating tools, processes and techniques with defined accountability to ensure that the work gets done. †¢ System facilitating a long-term and holistic approach to generate change. Integrating TM through a system Its worth emphasizing that integration is critical. Our research shows that without integrating TM activities, the effort invested will tend to be dissipated with patchy results. Integration is knowing how all the pieces of TM fit together within a TM system. This will not operate in isolation from strategy, business planning and the organizations approach to people management. In this sense, the work of talent management cuts across what has been traditional HR silos. If integrated, it functions in a more facilitative, OD-like nature. It will also reach higher up the organization than other HR initiatives, often attracting the attention of boards and senior teams. Similarly, TM reaches down the organization, to include new recruits along with tenured professionals. Lastly, talent planning must be done in parallel with business planning, creating a rich integration of people and strategy. One way of achieving such system integration and alignment is the CRF Talent Management System (see Figure 1, above right). This systemic view of talent has five elements: Need the business need derived from the business model and competitive issues. Data collection the fundamental data and intelligence critical for good talent decisions. Planning people/talent planning guided by data analysis. Activities the conversion of plans into integrated sets of activities. Results costs, measures and effectiveness criteria to judge the value and impacts of TM Using this system can help TM become a strategic differentiator rather than a standard set of HR processes if the right conditions, context, timescales and offerings exist in the first place. System integration and alignment ensures that TM efforts are rational and fit for purpose. Since the arrival of the current era of talent is widely acknowledged, its not surprising that renewed significance is being placed on the management of that talent. And as talent continues to be viewed as a strategic differentiator, its management will take more of a strategic role. How fascinating it will be to take the pulse of talent management in the business community in another five years. We believe that while the management of talent will most likely become embedded in the fiber of cultures by then, the HR executives who led those initiatives will have achieved much more prominence. OBJECTIVES OF TALENT MANAGEMENT: There are some basic objectives which need to be fulfilled by the US corporate sector while applying Talent Management in the organisation and the objectives are:- 1) TO DETECT TALENT:- It is very important for the US corporate sector to determine or detect their best talent for the organisation and this Talent Management helps the selector to select the best talent among the pool of various alternatives present in the organisation. Because the best talent helps in generating more and more good ideas which help organisation to achieve or innovate something new. As Talent Management helps in detecting best talent of the organisation within the organisation, this helps organisation to achieve their goal more efficiently and effectively which are set by the organisation. 2) TO DEVELOP TALENT:- After detecting the talent in the organisation the US corporate next step for applying Talent Management is to develop the talent. It is not necessary that every person has a some talent in him or her but talent can also be developed through regular practice such as training, educating, providing them with the basic guidelines of the respective talent so that the talent of any person can be used for the effective utilization of the talent for the sake of the organisation which will be helpful for the organisation to came up with a new idea with the help of talent which will provide them with the best competencies among the competitor so that they can stay in long run of the business giving tough competition to their competitors and by developing talent US corporate sector tried to change the scenario of the employees by developing their talent and making them more confident, reliable and motivating factor for themselves and for others too which improves the behaviour and efficiency t o work. There is a huge change when a person come to some hidden talent in him and this makes them to be more responsible to the work and take the work as natural as play 3) TO MAKE TALENTS MORE RELIABLE:- Talent Management helps in making talent more reliable and US corporate sector use the Talent Management as their one of the important tool for making their employees talent more reliable as talent management helps in detecting and developing talent by the different mode they used while developing their talent they make the employees to be more confident in their talent which makes them more reliable which means that they will be confident in using their talent and organisation can rely on their talent while doing or making effective decision. Until and unless employees believe themselves in their talent then the organisation too will not have any faith on the employee and US corporate sector never keep such employees in the organisation as US corporate sector is best known for their talent and technologies and the technology is the result of the talent only. 4) TO PROMOTE TALENTS TO STRATEGIC PROJECTS OR TO HIGHER POSITION:- Talent Management helps in promoting talent to strategic projects or to the higher position because US corporate sector that every talent should be given their own position. If the talent deserves higher position then he should be given the higher position irrespective of any other things which might be taken in account such as education or qualification. They think that if the post deserves that talent then that talent should be given that post. When talent is promoted it acts as a motivating tool for the employees to make them more responsible and work towards the achievement of the goal set by the organisation which also enhance their style and attitude towards their work. Talent Management in the Corporate Sector Talent Management in the Corporate Sector A Talent Management INTRODUCTION:- Talent management is the process that emerged in 1990 and continues to be adopted, as more companies came to realize that their employees talent, skills drive their business success. Companies that have put into practice talent management have done so to solve an employee retention problem. The issue with many companies today is that many organizations put tremendous effort into attracting employees to their company, but spend little time into retaining and developing talent. A talent management system must be worked into the business strategy and implemented in daily processes throughout the company as a whole. It cannot be left solely to the human resources department to attract and retain employees, but rather must be practiced at all levels of the organization. The business strategy must include responsibilities for line managers to develop the skills of their immediate subordinates. Divisions within the company should be openly sharing information with other departments in order for employees to gain knowledge of the overall organizational objectives. Talent management refers to the process of developing and integrating new workers, developing and retaining current workers, and attracting highly skilled workers to work for your company. Talent management in this context does not refer to the management of entertainers. The term was coined by David Watkins of Softscape published in an article in 1998. 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. IMPORTANCE OF TALENT MANAGEMENT IN US CORPORATE SECTOR US sector always want to grow and improve their system and processes must focus on people practices that allow or foster their growth and improvement. The best practices are known. The key variables (leadership competencies, experience and skill, interest rewards) that motivate people to succeed have been identified and successfully put into practice. Talent Management is no loger a cutting-edge field being solely tapped by pioneers. It is a viable path towards and improving organizational performance. Integrated, strategically aligned human capital asset management systems have provided significant economic benefits to companies that have embraced them as ongoing processes instead of one-time events. Research done on the value of such systems to companies consistently finds benefits in these seven critical economic areas: revenue, customer satisfaction, quality, productivity, cost, cycle time, and market capitalization. This research clearly shows that adopting and investing in best-practice talent management systems results in bottom-line improvement in each of these key areas:- 1) Increase Revenue It was initially thought that companies that make more money were associated with better talent management practices only because they could afford them (.19 correlation), but the 2001 Watson Wyatt Human Capital Index Study showed that talent management practices actually increase financial performance (.41 correlation). According to Watson Wyatts research 15% of profit performance is driven by: Management participation Open management style Taking some risks, but not too many Top managers spending 20% of time with customers Around 20% of top management should be outsiders Management training is deemed important Top managers are effectively incentivized Succession planning is done A good appraisal system is in place Employees get feedback In addition to supporting Becker and Huselids 1998 results, the 2001 Watson Wyatt Human Capital Index study showed precisely which HR practices have an impact on the bottom line. 49 specific HR practices across 6 dimensions played the greatest role in creating shareholder value. The research quantified exactly how much an improvement in each practice could be expected to increase a companys market value. For example, a company that makes a significant improvement (one standard deviation) in all of the practices categorized under Total Rewards and Accountability should see its value improve by 16.5 percent, and a significant improvement in 43 key HR practices is associated with an increase of 47 percent in market value. Results included: 16.5% impact on company market value from total rewards and accountability 9% impact from a collegial, flexible workplace 7.9% impact from recruiting and retention excellence 7.1% impact from the integrity of communications 6.5% impact from the implementation of focused HR service technologies 33.9% loss from non-prudent use of resources Careful inspection of all the data shows that for every available correlation calculated over time, the relationship between past HR practices and future financial performance is stronger than the relationship between past financial outcomes and future HR practices. This is the first study to show that HR practices actually increase financial performance (.41 correlation) instead of inferring that companies that make more money can afford better HR practices (.19 correlation). Given companies of comparable size, those whos CEOs exhibited more emotional intelligence competencies showed better financial results as measured by both profit and growth. The divisions of leaders with a critical mass of strengths in emotional intelligence competencies outperformed revenue targets by a margin of 15-20 percent. 2) Customer Satisfaction Knowing and using the critical competencies associated with success creates results. The 1998 Watson Wyatt study, Competencies and the Competitive Edge, showed that when an organization identifies and communicates the core competencies that it needs to be successful in the present and the future, it has developed a powerful tool to help meet its goals. Competencies define and communicate an organizations strategy and help employees to understand that strategy and achieve its goals. The many roles that competencies can play in an organization include: Articulating what the organization values Providing a common language for employees and managers to describe value creation Establishing a new paradigm for human capital management programs (organizational levers) Focusing on the development of the individual instead of an organizational structure Linking pay, promotions and growth directly to what the organization values to be successful Guiding employees and managers to what is expected and how value is defined even in times of dramatic change and restructuring Competencies serve as a powerful communication vehicle to focus all members of the organization on the skills and activities that will create both value and wealth. Competency-based programs can make a difference to the bottom line. Analysis of the financial data clearly shows that companies with competency- based programs perform better in the marketplace. Such programs help focus the organization and all the individuals in it on what they can do to add value to the organization. Contributions are role-related rather than position-related. Adopting this view of contribution to value will help organizations think differently about their human resource and development programs. Organizations can focus on competencies needed for the future and identify the roles that employees do and must play. Programs that build employee commitment can bring great returns. Data from this and other Watson Wyatt studies clearly demonstrate that both individual and organizational performance increase when employees are committed to their companies. Ensuring that organizational levers that build employee commitment are in place and working will affect the bottom line. This was most notable when the competencies focused on attributes and behaviors that promoted customer satisfaction. Training is important, but it is no substitute for good management. A large majority of the organizations participating in Watson Wyatts study identified training and development as the driver of future corporate success. The high-performing companies identified it slightly more often than the others. Putting people first by adopting high performance management practices translates into improved morale, more innovation, better customer service, higher productivity, greater cost reduction, greater flexibility, and increased skills development. 3) Improve Quality Motor vehicle manufacturing firms in US implementing flexible production processes and associated practices for managing people enjoyed 47 percent better quality and 43 percent better productivity than firms relying on traditional mass-production approaches, according to a worldwide study by Wharton Schools John Paul McDuffie. Overall financial performance improved 3.8% per year for ten years when companies stayed with traditional talent management practices, 6.8% when they realized they needed to re-design their talent management practices, and 10.1% when they launched a completely new talent management system Watson Wyatts 2002 European Human Capital Index study shows that 36 key human capital variables (practices and policies) are associated with an almost 90% increase in value. 4) Increase Productivity Initial research on 740 companies HR practices found that those using high performance work systems (HPWS are defined as integrated talent management practices) had economically and statistically significantly higher levels of company performance. One standard deviation of improvement on their bell curve of integrated talent management systems was associated with changes in market value from $15,000 to $60,000 per employee. Employee productivity was calculated as the logarithm of net sales per employee using gross rate of return on assets (GRATE), which is less sensitive to depreciation and other non-cash transactions, and Tobins q, a future-oriented and risk-adjusted capital-market measure of performance that reflects both current and anticipated profitability and often mirrors the price that the market will pay for intangible assets (goodwill). Further research that included three US surveys and the experience of more than 2,400 companies continued to show significant impact of systems that select, maintain, develop, and reinforce employee performance on both market-based and accounting-based measures of company performance (while statistically controlling for RD investment, industry market changes, capital improvements, sales growth trends, etc.). Moving from the 60th percentile of integrated HPWS to the 80th percentile improved market valuation by $20,000 per employee. This reflects both operational excellence and alignment with the companys strategy. When the elements are present, but not aligned with the company strategy there is a 27% drop off in measured gains. Gallup Management Journal reported the following in 2001: †¢19% of all employees are actively disengaged from their jobs †¢55% of all employees are not engaged in their jobs and †¢26% of all employees are engaged in their jobs at a cost of $292-355 Billion per year to the US economy. Great people management equals great shareholder value: European companies with the best human capital management deliver around twice as much shareholder value as their average competitors. 5) Reduce Cost ASTD and SHRM studies companies that is renowned for their ability to retain top talent (Linbeck, Kennedy Rossi, Zachary, Dow Chemical, Edward Jones, Great Plains, Sears, and Southwest Airlines). One key finding was that all of these companies implemented competency-based position profiles so that employees understood the skills and abilities required to move into leadership positions. They must also avoid wasting their money on bad human capital investments: The 2001 Watson Wyatt Human Capital Index study showed precisely which HR practices have an impact on the bottom line. 49 specific HR practices across 6 dimensions played the greatest role in creating shareholder value. Additionally, one dimension, Prudent Use of Resources identifies six practices that diminish shareholder value (e.g. training that is not connected to the business objectives and not evaluated for ROI). A new book shows how Microsoft, Intel, Nokia, Starbucks, Singapore Airlines and 20 other world-class organizations are luring and holding high-quality employees. One senior executive said, Microsoft has a market capitalization of $450 billion, the largest in the world. If you add up every desk and chair, every computer, every building, every piece of land, everything we own, including the $17 billion or so we have in the bank, it comes to about $30 billion. If you then add in things like goodwill and other financial assets, maybe youll come up with another $70 billion, if you really struggle. But that means that there is $350 billion more that people have given us credit for that is not there. What is it? Well, its the stuff in smart peoples heads. With that knowledge Microsoft has built and maintains a human capital management system very similar to Mundo Strategies system to prevent employees from wanting to leave the company even as the stock took a beating in the past few years. Supervisors who received training in how to listen better and resolve employee problems found that lost-time accidents were cut by 50 percent, formal grievances were reduced from 15 to 3 per year, and productivity goals were exceeded. Retention is one of the more obvious areas that effective talent management practices can affect. What attracts and retains high performers? 79% stay because of opportunities for advancement 69% stay because their job is redesigned 65% stay because they are learning new skills in their current job. Why do high performers resign? 56% leave because they are dissatisfied with company management 56% leave due to inadequate opportunity for promotion 50% leave due to dissatisfaction with pay 6) Reduce Cycle Time There is very little research into the impact of talent management practices on company cycle time. One classic work on cycle time showed that steel mini-mills using a high-commitment approach to management required 34 percent fewer labor hours to make a ton of steel and had a 64 percent better scrap rate than mini-mills using a command and control approach. 7) Increase Return to Shareholders Market Capitalization The five highest return to shareholders from 1972-1992 (Southwest Airlines Co. 21,775%, Wal-Mart Stores, Inc. 19,897%, Tyson Foods, Inc. 18,118%, Circuit City Stores, Inc. 16,410%, and Plenum Publishing 15,689%) differentiated themselves from their competitors and the market only through the way they managed their people during the infancy of talent management. Whereas at the start of the 1990s studying its earnings and fixed assets and adding a token amount for goodwill invariably gauged a companys stock market valuation, by the end of the decade a seismic shift had taken place. When accountants Ernst Young came to look at the issue, they found that the largest slice of most companies market capitalization was held in intangibles primarily, the talent, knowledge and teamwork of its staff. In high-tech companies like Nokia, the percentage was as high as 95 per cent; but even old economy stalwarts like BP, despite its huge investments in oil platforms and exploration equipment, notched up a significant 74 per cent. The upshot was that even companies operating in the same sector with similar earnings could experience widely differing stock valuations. Those ignoring the new emphasis on intangibles invariably found themselves penalized by the markets. Watson Wyatt also reported that a 26% increase in market value in 2000 was driven by common talent management best practices: Use of knowledge and contract workers Recruiting excellence Consistent pan-European HR practices Good union-management relations Lack of hierarchy, clear leadership Teamwork and 360 ° feedback Customer-focused environment Remuneration Sharing information with employees The difference between a non-strategic HR system and one that has removed the barriers to performance are dramatic. Improving the relative sophistication of the HR system by adopting best practices does not provide measurable value (20%-60% adoption of a strategic HR system). Integrating the strategic elements of HR into the broader fabric of the organization provides a significant improvement in shareholder value (60%-80%). When HR systems have adopted best practices and aligned those systems with business priorities and initiatives they return the greatest shareholder value (80%-100%). The five-year survival rates of initial public offering showed that firms whose talent management practices scored in the top one-sixth of IPO firms had a 33 percent higher probability of surviving than those in the lowest one-sixth. Firms in the upper one-sixth in providing financial rewards to all employees, not just managers, had almost twice as much chance of surviving for five years, according to research by Theresa Welbourne of Cornell and Alice Andrews of Vanderbilt. COMPETITIVE ADVANTAGE OF TALENT MANAGEMENT IN US CORPORATE SECTOR Taking a systemic approach to talent management Getting the right people in pivotal roles at the right time should be nothing new to HR professionals, but done effectively, talent management can create longterm organizational success. Here, Lynne Morton and Chris Ashton show how to align talent management strategies to business goals, integrate all related processes and systems and create a talent mindset in organization. TALENT MANAGEMENT (TM) IS more than a new language for old HR work, or just the next hot new thing for HR practitioners and managers to get involved in. For many organizations, it has become a strategic imperative. McKinsey research1 reveals that 75 percent of corporate officers were concerned about talent shortages and Deloitte reports that retaining the best talent is a top priority for 87 percent of surveyed HR directors. This need for talent and, therefore, its expert management is also driven by macro trends including: †¢ New cycles of business growth, often requiring different kinds of talent. †¢ Changing workforce demographics with reducing labor pools and, therefore, a talent squeeze. †¢ More complex economic conditions which require segregated talent and TM. †¢ The emergence of new enterprises which suck talent from larger organizations. †¢ A global focus on leadership which is now permeating many levels of organizations. The strategic importance of talent management:- On the basis of substantive research undertaken for our forthcoming report , they argue that good TM is of strategic importance and can differentiate an organization when it becomes a core competence and when its talent significantly improves strategy execution and operational excellence. For example, imagine your company has the right talent in pivotal roles at the right time. What difference will these people make to revenues, innovation and organization effectiveness compared with having to operate without them? What is the cost of the lost opportunities and the downtime and replacement costs of losing critical talent? What are the consequences of having to make do with the wrong kind of leaders and managers in the top two executive layers or of not having successors groomed and ready to replace them? Yet generally, organizations still struggle with TM. According to research, three-quarters of business leaders have invested dedicated resources in TM but most say they havent yet felt the impact of doing so.3 Why not? Through one of the research, they tried to provide reasons by asking these questions: †¢ Why are they doing TM? Is it for the individual, the organization or both? †¢ What do they mean by talent and talent management? †¢ What are their propositions for attracting and retaining talent? †¢ How do they manage and use the talent in their organization needs? †¢ How are internal roles and resources deployed appropriately to support TM? †¢ How is TM integrated across HR processes and with business planning and strategy execution processes? Talent management at FDC its focus, leadership, acquisition, retention, evaluation and tools has evolved over five years, and continues to be a work in progress. The evolving talent plan aligns with goals, business strategy and their organizational implications. The talent office annually reviews analytics and recalibrates talent to align with growth and other organizational needs. The current growth objective is 15 percent. Ours is a numbers business, which tends to reflect a short-term view, says Annmarie Neal, senior VP, organization development. Yet, we also have to build a leadership bench and talent pools, not around the execution capabilities were known for, but on a customer-solutions focus and strategic foresight. Investments in talent arent short-term they need at least three-year horizons to see returns. The key issue for FDC is to accurately identify high potentials with different capabilities such as strategic thinking, partnership building, results orientation, innovation and talent leadership and then build succession depth. In effect, they are building talent balanced with buying it, guided by the notion of critical positions that is, those positions that positively impact on the strategic goals or their execution. They are now applying their processes for identifying, assessing and growing future leaders to our more junior, untested populations who we expect to be our next VPs. Technology, as Neal explains, has allowed them to do more in depth and breadth with the same headcount. TM initiatives at FDC include: †¢ Talent profiling of individuals. †¢ Conducting calibrations of business performance and key results behaviors. †¢ Assessing and forecasting succession depth. †¢ Implementing organizational assessment summaries to give status reports for leadership talent. †¢ Using just-in-time, action-learning programs and talent-sharing assignments. †¢ Developing talent at risk tools based on potential derailers and defection triggers. †¢ Introducing a talent scorecard with five perspectives, each of which has critical indicators hiring. As we see it, TM is a strategic and holistic approach to both HR and business planning or a new route to organizational effectiveness. This improves the performance and the potential of people the talent who can make a measurable difference to the organization now and in future. And it aspires to yield enhanced performance among all levels in the workforce, thus allowing everyone to reach his/her potential, no matter what that might be. Though this interpretation of talent is inclusive, it strikes a strategic balance between performance and potential. Performance historically, the primary focus of measurement and management concerns both the past and the present, whereas potential represents the future. Our position assumes that potential exists, it can be identified and it can be developed. Here are specific ways that two case organizations inthe report define talent: †¢ Executive management team leaders, directors/VPs and A-player managers in all functions plus Bplayers as potentials. †¢ Future business leaders with more strategic capabilities than just operational excellence skills -plus specialist talent able to execute business integration projects on time and to budget. Clearly, there isnt a single consistent or concise definition. Current or historic cultural attributes may play a part in defining talent, as will more egalitarian business models. Many organizations acknowledge that talent, if aligned with business strategy or the operational parameters of strategy execution will change in definition as strategic priorities change. For example, in start-up businesses, the talent emphasis will be different to the innovative or creative talent needed to bring new products to market. Any definition needs to be fluid as business drivers change, so will the definitions of talent. What TM involves Talent management is the integration of different initiatives, or constructs, into a coherent framework of activity. There are certain crucial components and a useful model for defining TM is to think of it in these key words: †¢ Ethos embedding values and behavior, known as atalent mindset, to support the view that everyone has potential worth developing. †¢ Focus knowing which jobs make a difference and making sure that the right people hold those jobs at the right time. †¢ Positioning starting at the top of the organization and cascading throughout the management levels to make this a management, not HR, initiative. †¢ Structure creating tools, processes and techniques with defined accountability to ensure that the work gets done. †¢ System facilitating a long-term and holistic approach to generate change. Integrating TM through a system Its worth emphasizing that integration is critical. Our research shows that without integrating TM activities, the effort invested will tend to be dissipated with patchy results. Integration is knowing how all the pieces of TM fit together within a TM system. This will not operate in isolation from strategy, business planning and the organizations approach to people management. In this sense, the work of talent management cuts across what has been traditional HR silos. If integrated, it functions in a more facilitative, OD-like nature. It will also reach higher up the organization than other HR initiatives, often attracting the attention of boards and senior teams. Similarly, TM reaches down the organization, to include new recruits along with tenured professionals. Lastly, talent planning must be done in parallel with business planning, creating a rich integration of people and strategy. One way of achieving such system integration and alignment is the CRF Talent Management System (see Figure 1, above right). This systemic view of talent has five elements: Need the business need derived from the business model and competitive issues. Data collection the fundamental data and intelligence critical for good talent decisions. Planning people/talent planning guided by data analysis. Activities the conversion of plans into integrated sets of activities. Results costs, measures and effectiveness criteria to judge the value and impacts of TM Using this system can help TM become a strategic differentiator rather than a standard set of HR processes if the right conditions, context, timescales and offerings exist in the first place. System integration and alignment ensures that TM efforts are rational and fit for purpose. Since the arrival of the current era of talent is widely acknowledged, its not surprising that renewed significance is being placed on the management of that talent. And as talent continues to be viewed as a strategic differentiator, its management will take more of a strategic role. How fascinating it will be to take the pulse of talent management in the business community in another five years. We believe that while the management of talent will most likely become embedded in the fiber of cultures by then, the HR executives who led those initiatives will have achieved much more prominence. OBJECTIVES OF TALENT MANAGEMENT: There are some basic objectives which need to be fulfilled by the US corporate sector while applying Talent Management in the organisation and the objectives are:- 1) TO DETECT TALENT:- It is very important for the US corporate sector to determine or detect their best talent for the organisation and this Talent Management helps the selector to select the best talent among the pool of various alternatives present in the organisation. Because the best talent helps in generating more and more good ideas which help organisation to achieve or innovate something new. As Talent Management helps in detecting best talent of the organisation within the organisation, this helps organisation to achieve their goal more efficiently and effectively which are set by the organisation. 2) TO DEVELOP TALENT:- After detecting the talent in the organisation the US corporate next step for applying Talent Management is to develop the talent. It is not necessary that every person has a some talent in him or her but talent can also be developed through regular practice such as training, educating, providing them with the basic guidelines of the respective talent so that the talent of any person can be used for the effective utilization of the talent for the sake of the organisation which will be helpful for the organisation to came up with a new idea with the help of talent which will provide them with the best competencies among the competitor so that they can stay in long run of the business giving tough competition to their competitors and by developing talent US corporate sector tried to change the scenario of the employees by developing their talent and making them more confident, reliable and motivating factor for themselves and for others too which improves the behaviour and efficiency t o work. There is a huge change when a person come to some hidden talent in him and this makes them to be more responsible to the work and take the work as natural as play 3) TO MAKE TALENTS MORE RELIABLE:- Talent Management helps in making talent more reliable and US corporate sector use the Talent Management as their one of the important tool for making their employees talent more reliable as talent management helps in detecting and developing talent by the different mode they used while developing their talent they make the employees to be more confident in their talent which makes them more reliable which means that they will be confident in using their talent and organisation can rely on their talent while doing or making effective decision. Until and unless employees believe themselves in their talent then the organisation too will not have any faith on the employee and US corporate sector never keep such employees in the organisation as US corporate sector is best known for their talent and technologies and the technology is the result of the talent only. 4) TO PROMOTE TALENTS TO STRATEGIC PROJECTS OR TO HIGHER POSITION:- Talent Management helps in promoting talent to strategic projects or to the higher position because US corporate sector that every talent should be given their own position. If the talent deserves higher position then he should be given the higher position irrespective of any other things which might be taken in account such as education or qualification. They think that if the post deserves that talent then that talent should be given that post. When talent is promoted it acts as a motivating tool for the employees to make them more responsible and work towards the achievement of the goal set by the organisation which also enhance their style and attitude towards their work.

Food And Beverage Industry In India Marketing Essay

Food And Beverage Industry In India Marketing Essay India is one of the largest producers of food and dairy products. But when it comes to processed packaged food and beverages, the market is largely unorganized with huge growth potentials. Continuous urbanization and changing consumer habits, has resulted in greater reliance of people on packaged foods and beverages. With the influx of major international players like Coca-Cola and PepsiCo, and efforts by large domestic players like Dabur and Parle Agro, the industry is getting more organized. As a result, the industry is generating more opportunities in sectors like marketing, supply chain, storing, warehousing, manufacturing, packaging and RD. One of the major players, in Indian subcontinent is PepsiCo, Inc. It entered in India in 1989 and established Pepsico India Pvt. Ltd. The liberalization of Indian economy in 1992 helped Pepsico expand its business in India. Currently Pepsico India Pvt. Ltd. has its headquarters in Gurgaon, Haryana. It has facilities for 38 bottling plants and three food plants in India to satisfy the Indian consumer demand. The company has recently faced some decline in profits and increase in the debts but these can be attributed its recent investments in growing Indian market but, overall the financial position of the company is robust and sturdy. The company has got strong laws governing the Intellectual Property and use of companys resources, and is taking initiatives to improve the RD. PepsiCo believes that RD plays a crucial role for the growth of the business and to develops new products and technologies to meet consumer requirements in near future. The major threat to PepsiCo is from the unorganized sector and the large multinational corporations like Coco-Cola Corporation, Pearl Agro etc. PepsiCo is offering substantial product differential by increasingly giving emphasis to health conscious trend, with increasing flavors and verities. PepsiCo plans to invest $500 million in Indian market over the next few years in order to triple its revenues in the region. The investment will spread over half a dozen business areas such as manufacturing, RD, agriculture, product development and market infrastructure. It has taken many steps aimed at tapping the growing market by introducing new products, investing in development plans and Capital expenditure plans. Thus, overall, the companys profile looks promising and ready to strengthen its roots. Contents PEPSICO Food and Beverage Industry in India India is one the largest fastest growing economies in the world with an average growth rate of 7%. With a population size of 1.21 billion it is one of most lucrative markets consumer products. Due to the increase in purchasing power of the people and urbanization of small cities the demand of processed food and beverages has grown manifolds in last few years. Currently the estimated size of the industry is $360 billion. The Ministry of Food Processing has divided the industry into the following areas: Dairy processing, Grain processing, Fish, Fruits Vegetable processing, meat poultry processing and lastly, Packaged goods such as beverages, snacks, processed/ready-to-cook foods. Out of these, packaged and processed food industry is estimated at a smaller US$70 billion. The domestic consumption of non-alcoholic beverages, which include tea and coffee, carbonated drinks and fruit-based drinks account for a little more than US$1.2 billion.  And, with current CAGR of 20% its likely to touch US$2.3 billion by the year 2015. (Chibber, 2011) At present, carbonated or aerated drinks valued at US$370 million contributed to 30% non-alcoholic beverages. Fruit based drinks and energy drinks valued at US $250 million and US$125 million makes for other 30% Structure of the industry Until 1992 reforms and liberalization of Indian economy, the industry was largely unorganized consisting of many small scale firms catering only to domestic market. In packaged food industry size only few organized firms existed with limited product like ketchup, flavors, jam and processed noodles etc. Post liberalization, with the influx of international brands and considerable change in food procurement chain, transportation, storing and warehousing the growth of the industry has been robust and steady. The evolution of innovative food processing capacity and the emergence of organized retail, changing consumption patterns with fast changing demographics and habits has fuelling the next growth trajectory for the food industry in India. With the proposed policy changes in Foreign Direct Investments (FDI) by Government of India for retail sector further accelerated growth is expected in the industry. (http://pepsicoindia.co.in/Download) The major players in the industry are Dabur, Hindustan Unilever Limited, Coca-Cola, Pepsico, ITC Ltd, Parle Agro Products, Britannia India, Nestle India, Haldirams, Amul, Godrej Industries, Cadbury Schweppes, Future Group, RPG Enterprise etc. (http://www.ibef.org, 2012) Marketing strategies of the company Indian consumer market is mainly segmented on the basis of geography and demographic. Also the market is highly seasonal and predominantly urban. The products are relatively low cost with low margin but are sold in huge volumes. The marketing strategies are mostly product driven focusing on the masses. Also, innovative products to catering to regional tastes and the needs of niche consumers are been promoted, benefiting in growth of the industry. Most of promotions are done to increase the visibility of the brand. One of the most common practices is to offer the product in wide range package sizes and prices suiting the needs of diverse consumer segments. The promotions and advertisements done by the companies are often large with huge financial costs. The promotions are usually frequent and during popular TV shows, sports event at the peak hour with many celebrity endorsements. Other media like print, digital, banner and hoarding and event sponsorship are also used. (Vora) COMPANY HISTORY: Pepsico Inc., a multinational company, formed in 1965 with the merger of the Pepsi-Cola Company and Fruit-Lay, Inc. Pepsico Inc., since then has expanded from Pepsi to a broader range of food and beverages brands with the largest of which include acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001, which added the Gatorade brand to its portfolio. (http://en.wikipedia.org/wik) Pepsico Inc. entered India in 1989 and established Pepsico India Pvt. Ltd. It entered India as an industry for food and agro-based products. Since its entry into India, it had already invested INR 18 billion by the year 2000. In 1990, Indian government liberalized economy on account of severe foreign exchange crises, which helped Pepsico to expand its business in India. In 2002, Pepsico Inc. joined hands with Punjab Agro Export Corporation to process citrus fruits for its Tropicana project. By 2003, Pepsis soft drinks, snacks, fruit juices, mineral water business had established itself firmly in India. It is one of the largest food and beverage industry in India with an investment of over $1 billion. COMPANY SIZE: Pepsico Inc., an American multinational food and beverage corporation headquartered in New York, United States, with interests in the manufacturing, marketing and distribution of grain-based snack foods, beverages, and other products. As of January 2012, twenty-two of the PepsiCos product lines generated retail sales of more than $1 billion each and the companys products were distributed across more than 200 countries, resulting in annual net revenues of $43.3 billion. Based on net revenue, Pepsico is the second largest food and beverage business in the world. (http://en.wikipedia.org/wik) Currently Pepsico India Pvt. Ltd. has its headquarters in Gurgaon, Haryana. It has facilities for 38 bottling plants and three food plants in India to satisfy the Indian consumer demand. It presently employs 6400 people and provides indirect employment to almost 200,000 people through its production and distribution activities. (http://pepsicoindia.co.in/media) GROWTH ANALYSIS: Pepsico Inc., between 1970s and 1990s has expanded via acquisition of businesses outside of its core focus of packaged food and beverage brands. It concluded its disinvestments by 2007 and was followed by multiple large scale acquisitions, as Pepsico continued its expansion beyond snack food and beverage lines. In August 2009, Pepsico made a $7 billion offer to acquire the two largest bottlers of its products in North America: Pepsi Bottling Group and PepsiAmericas. (http://en.wikipedia.org/wik) Growth for 2013 is expected to improve to sales growth of 4.5% and profit of 8.3% to $4.44 per share. (Fuhrmann, 2012) Pepsico in India in a short period, it has grown to be one of the Indias largest and fastest growing food and beverage industry in the country. PepsiCos Indias growth has been guided by PepsiCos global vision of Performance with Purpose. This means, while businesses maximize shareholder value, they have a responsibility to all the stakeholders, including the communities in which they operate, the consumers they serve and the environment whose resources they use. (http://pepsicoindia.co.in/company) Changes in the Environment of Industry: With the growing GDP, the purchasing power of the people is also growing. People nowadays demand convenience and are willing to pay extra for it. As their work habits and lifestyles have changed, its now all about time, and the consumer would rather buy time than prepare food. With busier lifestyle of the people, smaller and more frequent meals are becoming common, resulting in higher demand for the packaged food and drinks. The people have become health conscious, so, nutrition is becoming an important consideration when purchasing food and drinks. In 2003, allegations were made against the major player in the soft drinks industry for using harmful insecticides and pesticides in the soft drink. This lead to drop in sales of the soft drinks for some time, till the time the confidence in the minds of people was restored. The major players are diversifying its product portfolios both in the food, health and soft drinks segment in order to cater different customer segment. Celebrity endorsement has become a differentiating factor in the highly competitive industry. Future Outlook: The per capita consumption of the packaged food and drinks in India is expected to rise with the increase in the disposable incomes of the people. In India, tea is the only product which has a mature market. Other beverages such as carbonated drinks and functional drinks have been experiencing a consistent high growth rate. With the women increasingly joining the work force and households becoming smaller, packaged food products and beverages will be in higher demand. With the increasing urbanization, there is increased acceptance and greater demand for packaged food and beverages product in India. Companys Operational Analysis Marketing and Operation: PepsiCo spends high amount on advertisement to reinforce its product by promotion and quickly make the customer aware about their new products. To enter in the different segments of consumers, it created different verticals in the functions like sales, marketing, operations and distribution. PepsiCo constantly looks for acquisition in emerging markets. It has created the point of difference from their competitors by providing unique taste to its product to suit Indian market needs and also provides the product in lower price compared to its competitors. Pepsi has segmented the market based on income level and tried focus on level 1 and level 2 (Exhibit 1) customers and focused on the age group of 15-30. Pepsi mainly sends out the goods from its plants to retailers directly, from where, they are distributed to small retailers to generate its sales volume. It also helps them to reduce the long journey in poor roads. The increase in use of vending machine helps to decrease the number of refilling. The increase in sales is due to the expansion of super/hyper markets in India. Financial Analysis: Based on the financial statement of the year 2011 of PepsiCo India the operating revenue increased by 23.63%. That is 3,360.85 tens of millions to INR 4,155.14 tens of million. There is 1.62 % change in operating income, it was increased to INR 246.81 tens of million from INR 242.88 tens of million. But the Return on Assets (ROA) went down by 0.02% from 2.79% and Return on equity also went down by 0.04%. Compare to the last year the net profit margin fell by 0.01% from 1.89%. The Debt to Equity ratio was 169.96% compared to 156.98% of last year but the current ratio went up to 2.07 from 1.97 compared to the previous year. (Refer Exhibit 2 for details) (http://www.securities.com/Public) Legal Operations: Using Trademarks and Intellectual Property: The intellectual property of the company is an invaluable asset and must be used properly. No one is allowed to use the trademarks or intellectual property of the company without proper authorization and license agreement that has been approved by Law Department. Email, Internet and other Information System: The PepsiCos information technology must be used only for the business operations of the company and must comply with the Information Security Policy and Acceptable Use Standards. It is not a usual practice to monitor the employees use of companys information systems. (http://pepsicoindia.co.in/Download) RD Analysis: PepsiCo has taken many initiatives to improve its RD capabilities and recently opened a RD department in Germany and Co. Cork, which will support both Europe and other markets where PepsiCo operates. PepsiCo knows that RD plays a crucial role for the growth of the business and to develop new products and technologies to meet consumer requirements in near future. PepsiCo always focused on the outcomes which will help them to get more good ideas and create more good jobs. (http://www.idaireland.com/news-media, 2012) Industry Analysis and Growth plans Worldwide, in the year 2010, top ten soft drink companies, including, PepsiCo, Nestle, Coca-Cola and Suntory Holdings, accounted for 52.3% of overall sales with PepsiCo holding 11.5% share. (Exhibit 3) In India, however, it holds 24.2% market share. (Exhibit4) (Eleanore Alexander, 2011) The Indian beverage and food industry is estimated to grow at a CAGR of about 7.5% during 2009-2013. Introduction of organized retail, innovative food processing methods, changes in consumer consumption patterns and fast changing demographics; has ensured exponential growth. Specifically, the Indian non-alcoholic drinks market is expected to grow at CAGR of 15% during this period. (Anonymous, 2011) PepsiCo plans to invest $500 million in Indian market over the next few years in order to triple its revenues in the region. The investment will spread over half a dozen business areas such as manufacturing, RD, agriculture, product development and market infrastructure. (Pande, 2010) It has taken many steps aimed at tapping the growing market by introducing new products, investing in development plans and Capital expenditure plans. (*Source: Bloomberg, IMAP) PepsiCo introduced following products as per their expansion plans: It launched PureVia (a zero-calorie sweetener) using Setvia, a natural herbal, to cater to health conscious customers. PepsiCo recently acquired Brazilian coconut-water manufacturer Amacoco Nordeste Ltd. to cater to increasing customer inclination towards it. Pushing hard in healthy snack options by expanding baked snack brand Aliva from four variants to six new variants. Eliminating almost all trans fats from their U.S. product portfolio and any of their global products. In India, they have 40  percent reduction in saturated fat in leading products (by using blended rice bran oil) such as Kurkure namkeen snacks and Lays potato chips. Pepsi introduced their latest drink aimed at health conscious customers. Pepsi Next is a right mix of cola flavor and a blend of sweeteners to closely mimic the taste curve is a regular cola. (Morefield, 2012) They have developed a plan to introduce fortified biscuits and snacks at affordable rates to address iron deficiency anemia. Last year they expanded their Sangareddy and Mahul production facilities in India, creating 5,000 direct and indirect jobs. (IMAP, 2010) As per companys annual report, We increased our investment in emerging markets selling and delivery systems by putting more coolers in the market and adding route and distribution capacity ahead of growth in India, China, Russia and other countries. Notably, our India business grew at about 2.5 times Indias real GDP growth rate. (Author, 2010) The company recently took another major step in order to expand in terms of volume as part of promotional offers. It cut the price of 600 ml PET bottles to INR 25 from INR 28. However, its rival Coca-Cola has decided not to follow this strategy. (Bhushan, 2012) Porters five forces analysis As shown in Exhibit, Porters five forces help to analyze an industry taking care of various influencers. The five forces are: (Exhibit 5) Threat of substitutes: Soft drink industry offers substantial product differentiation. However, substitutes like bottled water, sports drinks, tea etc. are increasingly getting popular with health conscious trend. With increasing flavors and varieties, these products pose a strong threat to the industry. Threat of new entrants: Coca-Cola and Pepsi Co dominate the soft drink industry. In addition, the industry is fully saturated and minimal chances of growth making it extremely difficult for new players to start competing. Moreover, huge fixed costs are needed and thus new entrants cannot compete without economies of scale. Therefore new entrants do not create significant threat. Bargaining power of suppliers: Suppliers of bottling equipment and packaging hold no power. Companies mostly own the majority of the bottling and hence suppliers do not hold much bargaining power. For sugar and additives suppliers, since there are a lot of them, soft drink manufacturer can shift supplier leaving almost no bargaining power with suppliers. Bargaining power of buyers: The buyers mainly include large grocers, restaurants and stores. The soft drink companies distribute products to these stores, who later resale to the consumers. Different levels of bargaining power exist with discount stores having a lot of it due to large demand whereas restaurants ordering low volume fail to have any bargaining power. Intensity of existing rivalry: Carbonated software industry is a huge industry. Currently few competitors exist and hence it allows multiple firms and producers to prosper. Overall analysis from the point of view of a summer intern in PepsiCo India: The compounded annual growth of more than 7% and the population size of more than 1.21 billion, India is one of the most promising markets for the food and beverage industry. With the current trend, the industry is estimated to grow to $360 billion by 2015. The industry at large is still unorganized with huge opportunities in retailing, supply chain, marketing and RD sides. With the proposed FDI and influx of international players, the sector will be witnessing exponential growth in its organized sector. This will also allow the expansion of the sector in the rural area which is largely untapped. Currently the organized market employes more than 2 million people and this sector has been given high priority by govt. of India. The major players like Dabur, Coca cola, PepsiCo, and Parle are already investing huge amount in both infrastructure and intellectual talent to capitalize the increasing market share. PepsiCo is one of the largest players in the food and beverage industry with its presence in more than 200 countries. Within its 20 years of operation in India the company has grown by many folds. With the new relaxes norms in FMCG industry, PepsiCo is aggressively investing in the Indian markets. Sensing the chances of increasing market share and performing better by catering to new niche markets, it plans to invest more than $500 million in coming years. The company is also looking forward to diversify its product portfolio either by starting newer products or by acquisitions along with initiatives at improving its supply chain and other manufacturing services. Financial data also looks promising with 23.63% revenue growth and 1.62% operating profit increment. Though, other financial ratios like ROA, ROE and margins have fallen compared to previous year, it is actually infected by the huge investment company is making into Indian market. As per CEO Indira Nooyi, the company plans earned highest profit worldwide from Indian sector in Q3 of 2010. Thus, it is quite evident that PepsiCo India is a market leader. Gradually but steadily, it is closing the gap with rank one player, Coca-Cola. The company looks very promising for learning and developing market understanding. As an intern, this offer would help me apply my ideas backed with the theoretical knowledge gained at my MBA program. With company paying specific attention to various business fields like supply chain, infrastructure and sales, this job will help me learn all these aspects and not limit my learning a particular domain. I look forward to this offer as a chance to ensure a final placement in PepsiCo India to give a kick start to my professional carrier. EXHIBITS Exhibit 1: Breakdown of Indian population by income Exhibit 2: Companies Annual reports Exhibit 3: Worldwide soft drink market Exhibit4: Soft drink industry in India Exhibit5: Porters Five Forces http://www.maxi-pedia.com/web_files/images/Michael_Porter_Five_Forces_Model.png