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BUSINESS AND MANAGEMENT

ASSIGNMENT FRONT SHEET


Student Name: Certification: I certify that the whole of this work is the result of my individual effort and that all
quotations from books, periodicals etc. have been acknowledged.

Student Signature: Student Registration Number: Student email address:

Date:

Programme: MBA Year/Level: 7 Academic Year: 2013/14 Trimester: 2 Module title: People Resourcing Assignment no.: 2 Module code: BUS749 Word guide: 2,000 Percentage Weighting of this assignment for the module: 50% Issue date: 9th April 2014 Return date: 24th April 2014 (before 3pm) Lecturer: Nuala OSullivan Second marker: Notes for students:
1. 2. 3. 4. Hard copy of assignment should be stapled in the top left corner and submitted to the office. Electronic copy of assignment must be submitted through Turnitin. 10% of marks are awarded for satisfactory use of language and/or good presentation. 5% of marks are awarded for satisfactory referencing and/or presentation of a bibliography where either is required. Note that all referenced work should be obtained from credible sources. 5. Students should ensure that they comply with Glyndwr Universitys plagiarism policy.

6. Students should make correct use of the Harvard referencing method. Learning Outcomes Tested in this Assignment:
1. T he context and emerging trends in people resourcing 3. The strategic contribution of people resourcing practices (Human resource planning, Talent management etc)

Overall Comment :

Mark (%)

Would students please note that achievement of the learning outcomes for this assessment is demonstrated against the assessment criteria shown below (which are not necessarily weighted equally). All marks/grades remain indicative until they have been considered and confirmed by the Assessment Board

Assessment Criteria Discuss the failures and recommendations on talent management (e.g. internal-external recruitment, developing talent, succession planning). Support your answer with arguments from the literature (i.e. journal articles).

Marks Awarded

Marks Available

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A report in which you explain how performance appraisal operates in an organisation, critically evaluate its contribution, and make any recommendations. Good answers should cover many aspects, including the following: Definition of performance appraisal Analysis of the performance appraisal process Benefits/opportunities and potential problems from appraisal process for both sides

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Additional Comments from Second marker or External Examiner (if required) :

Assignment 2. Task 1. Download and read the HBR article and analyse the various issues discussed on failures and recommendations on talent management (e.g. internal-external recruitment, developing talent, succession planning). Support your answer with arguments from the literature (i.e. journal articles).

There are many articles written on the talent management and of them is Talent Management for the Twenty-First Century (Capelli, 2008) that discusses the importance of talent management. The introduction of the article reflects upon the need to have a new talent management system now that the companies are operating in the twenty-first century it is important to part ways with the old and traditional ways of recruiting talent. Previously the companies either relied upon doing nothing to welcome talent and just depend upon the outside talent (a reactive approach). This leads to destruction of management of the talent. And the second way that the author has discussed in the complex bureaucratic way that could be applied at that time because of the predictable environment of business but cannot be applicable now as the method would be costly and inaccurate now due to highly un-predicable and dynamic environment. Practices such as executive coaching, job rotation and 360 degree feedback were a common practice fifty years back but now these are considered innovative. During that decade the internal talent management was not so productive as economic ups and downs were there and except of a very few big companies, most of them were not able to manage their talent in a better

way as the supply of managers at one end and no lay-offs of white collar job holders gave favor to the executive level employees and ignored the lower ones. The economy was already in recession and downturn therefore the business world had been un-predictable. A strategic talent planning should have been done along with developing a suitable and un-biased organizational culture (Hartmann, et al., 2010). Due to recession somehow the white collar job holders had to be laid off which created a severe shortage as restructuring of the companies eliminated many departments and staffs what dealt with developing talent. Here I would like to agree with the author that if at that time due to recession, the priority was to lay off and cut short of the middle managing staff then why should the effort and money be wasted in developing programs to hire such staff in particular. Under the same circumstances bigger companies who actually initiated those programs had contingency plans and somehow managed to deal with the recession and restructuring by cost-cutting in some other ways. Unilevers operations in India faced recession and they were the ones who developed talent and was known as the model employer succeeded in passing through the thick time of recession as they increased their talent pool of managers by 27% from 2000 to 2004 just by not letting their managers leave at any cost. If somehow the managers were in surplus, they would send them to other international operations as their idea was to avoid lay-off even if the demand for managers was less and the supply was more. This was a traditional approach, alternative to which there was an external hiring approach which believed in stealing or attracting talent from the competitors. This led in increased problems of the retention of the employees and thus the employers were hesitant to invest in their development (Chamber, et al., 2007). Even the CEOs back then were unaware of the importance of investing in talent and developing them as the argument they presented was that why to invest and develop them when their competitors where doing that job for them. As a result employers

realized that they were attracting new candidates from the competitors at the cost of losing their talented employees to them. So how later in that period the employers made this their top most priority to develop a balance between attracting the new ones and retaining the existing ones. Outside search was expensive due to head-hunters hiring and retention problems were created because the new comers hurdled in promotions for internal and already existing employees (Lewis & Heckman, 2006). A recent study reveals that U.S companies have no work force planning. But this is not as dangerous as the succession planning is because the business environment is not as predictable and full of talent pipelines as it used to be back in 50s. Succession planning wastes costs now because it demotivates the employees and their trust in the company as due to dynamic changes no company can plan for forever now. The charts, plans, strategies and operations are iterative in nature now a days due to changing customers needs and wants. Talent management is not just about planning for long term career paths or to benchmark a particular turnover rate. It is there to support the organizational long term goals and objectives. To help the organization meet its profit, growth and success objectives through managing the workforce talent accordingly (Ashton & Morton, 2005). The author then introduces supply chain management as a good approach to manage talent. He discusses four principles to follow in supply chain management in order to support talent in the organization. The first and second of those principles discuss how to manage risk and gain return. If there is a responsibility of any department to find, recruit and develop talent then this should be considered as an investment rather than entitlement. Sometimes hiring from outside when internal pool fails to meet the requirements is cost effective. Also invest in internal resources when they are precious enough. Risk can also be reduced by either breaking down the talent developing programs into smaller units when uncertainty in demand arises due to which the risk can be identified. Or develop an

organization wide talent pool that can be adjusted in various departments when need arises instead of developing a 3-year long management trainee program (Giunipero & Eltantawy, 2004). The third principle is to develop the employees by maintaining a good relation and good will with the former employees so that there might be a fair chance of them to return if needed. Also to encourage them to volunteer and learn by taking additional work assignments which would in this way, share the cost of development talent in employees. The fourth and the last principle discussed in line with the supply chain management is to keep into consideration the interest of employees along with the employers. The problem of lack of retention of employees arises when there is a clash between the interest of the employers and employees. The employees should feel at home in the organization and should get a feeling that the organization cares about them. Their advices and viewpoints should be taken in relevant decision making (Farndale, et al., 2010). To conclude the article discussion, it is important to accept the fact that there had always been and will always be a mixture of the employee-employers interests. The employers would want to cut costs and only develop talent when needed. The employees on other hand want a secure career path. The business world needs increased skills and every employer-employee has one aspect in common i.e. increased output in minimum input. A famous marketing concept adopted by most of the companies regarding the customer retention is that is it profitable to retain an already existing customer than to attract a new one. The same rule can be applied to the employee employer relationship (Collings & Mellahi, 2009).

Task 2. For an organisation of your choice, describe the appraisal process that is followed and critically evaluate it in relation to good practice. It is important to support your answer with academic sources and explain any elements, stages and outcomes from the appraisal process. Performance appraisal is a systematic process of identifying, pinpointing, evaluating, coaching and rewarding an employee in an organization for his/her job performance (WebFinance, Inc, 2014). It has various aspects like first of all to identify the performance and evaluating it on basis of the standards and benchmarks. Critically examining the probability of the employees retention is discontinuity or if any reinforcement is needed. Providing further coaching or development if needed. Rechecking the performance improvements and rewarding the employee. This does not necessarily has to be a step by step process. It depends upon the employees stage as he is a new one or had been in the organization for a good time (Murphy & Margulies, 2004). Organization and Industry Tesco is a very famous company that operates multinational which designs provides services and manufactures technology solutions. It is also listed in NASDAQ. (Tesco Corporation, 2014). Tesco is a company which is globally operating in providing technology services in the following areas: Business Intelligence and Data Warehousing Business Process Management Enterprise Application Integration IT Governance 7

Enterprise Applications Software Product Engineering

Tesco provides skilled business process experts and strong teams that implement technology who translate company strategies into innovative, strong, and effective systems that benefit a client's unique competitive advantage (Tesco Corporation, 2014). APPRAISAL PERIOD AND NUMBER OF MEETINGS Performance reviews are held on a six-monthly basis - in June and December of each year. Each review highlights the key achievements of each employee, identifies development needs, and classifies the level of performance for the preceding six months. Each employee, being reviewed, is informed about the date and time of the review at least 24 hours in advance. He/she must complete the Personal Preparation Form before the review and shares it with the reviewer during the review meeting. TYPE OF PERFORMANCE APPRAISAL PLAN Tesco is currently using Trait Approach to evaluate its employees performance. Rating strategy used in Tesco is Mechanical Procedure. This procedure facilitates the computation of overall scores. In their appraisal form, the reviewer classifies the individual's performance in terms of the degree of fulfilment of the Key Performance Criteria for Success, during the preceding six months into one of the following six categories: Exceeds Expectations: (Score=5). Exceeds required standards and consistently performs in a thoroughly proficient manner beyond normal expectations. Fully Meets Expectations: (Score=4). Achieves required objectives of the role and standards of performance and meets the normal expectations of the role. 8

Meets Most Expectations: (Score=3). A performance, which is stronger in some aspects of the role than others, where most objectives are met, but where performance improvements should take place.

Meets Some Expectations: (Score=2). A performance that on the whole meets the basic standards required although a number of objectives of the role are not met, and there is clearly room for improvement in several definable areas.

Does Not Meet Expectations: (Score=1).A performance that on the whole does not meet any of the basic standards required.

Too soon to tell: (Not counted). For new entrants, having less than two month's experience at the company.

SALARY COMPONENTS

The total salary for any designation has the following major components besides the other discretionary benefits that are stated later in the report. The components include; 1. Basic Pay 2. House Rent 3. Utilities Allowance EVALUATION OF TESCO APPRAISAL SYSTEM Ideal Performance Evaluation System Information on performance of the employees is gathered on appraisal forms. These forms can be filled on papers or electronically. Ideally organizations should adopt both behavioural and result oriented approach. COMPONENTS OF AN IDEAL APPRAISAL FORM: Regardless these forms are electronic or on papers, appraisal forms consist of following components. Basic employee information: This section of the form includes the information about appraise such as job title, divisions, personnel number, designation, pay range, department, qualification, period of review and other work group information. Accountabilities, objectives and standards: Having a result oriented approach this section consists of description of each accountability and objectives set and agreed upon by managers and employees and the extent to which objectives have been achieved. In some forms it also consist of a section in which conditions under which objectives are achieved are also mentioned.

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Competencies and indicators: Having a behavioural approach adopted by organization, this section should consist of the list of competencies to be assessed along with their behavioural indicators.

Major achievements and contributions: This section should enlist the two or three major achievements appraise is being rated on during the review period.

Developmental achievements: this indicates the achievement of the developmental goals set for the review period.

Developmental needs, plans and goals: This section is future oriented and it consists of the goals, timetables and developmental plans set for the next review period based on the current performance of the employee.

Stakeholder input: This section consists of the feedback of the stakeholders such as customers of the organization to whom employee interacts.

Employee comments: This section offers employees being rated an opportunity to provide their reaction and comments on their performance.

Signatures: this section comprised of the signatures of the rater, employee being rated and raters supervisors (Martocchhio, 2011).

CHARACTERISTICS OF THE APPRAISAL FORM: In spite of the variability in terms of format and components, an ideal appraisal form should have the following characteristics. Simplicity

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Relevancy Descriptiveness Adaptability Definitional clarity Comprehensiveness Communication Time orientation

APPRAISAL PERIODS: The duration of performance appraisals differ from company to company. In some companies it is held once in a year whereas other companies prefer to repeat this process semi-annually or quarterly. Conducting just an annual review is not enough so it is good for organizations to go for semi-annual and quarterly reviews. Problems and Recommendations: It was seen that certain issues were triggering the turnover of employees. These issues were studied in depth and certain recommendations were provided to counter those issues as they may help in rectifying and controlling the problems (Decotiis & Petit, 1978). Tesco has incorporated various components of the ideal compensation system however after reviewing and comparing the existing compensation system of Tesco and ideal compensation system we have highlighted the areas in which Tesco is lacking and needs improvements in order to counter the major problem that it is facing and that is of Employee turnover. Some of the recommendations are listed below: Tesco is currently using Trait Approach to evaluate its employees performance. This system is highly subjective because it is based on the assumption that every evaluators 12

perception of a given trait is same which not the case is. Subjective judgments of the evaluators can sometimes lead the biasness of the evaluator too which sometimes results in employee dissatisfaction from evaluation system and eventually turnover. The suggested performance appraisal system is behaviorally anchored rating scales (BARS). (Discussed in detail above in ideal system). In this all Behavioral indicators are clearly defined which removes the uncertainty regarding meaning of each numeric rating. It is also most defensible in court because it is based on actual observable job behaviors. So employees can be satisfied with this detailed objective evaluation. Components of appraisal form at Tesco are basic information, key performance criterion, and level of performance, developmental needs and signatures. Tesco appraisal form should incorporate Accountabilities, objectives and standards, Competencies and indicators, Major achievements and contributions, Developmental achievements, Stakeholder input and employee comments.

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Bibliography: Ashton, C. & Morton, L., 2005. Managing talent for competitive advantage: Taking a systemic approach to talent management. Strategic HR Review, 4(5), pp. 28-31. Capelli, P., 2008. Talent Management for the Twenty-First Century. Harvard Business Review, 86(3), pp. 74-81. Chamber, E. G. et al., 2007. The war for talent. The McKinsey Quarterly: The Online Journal of McKinsey & Co., Issue 3, pp. 1-8. Collings, D. G. & Mellahi, K., 2009. Strategic talent management: A review and research agenda. Human Resource Management Review, 19(4), pp. 304-313. Decotiis, T. & Petit, A., 1978. The Performance Appraisal Process: A Model and Some Testable Propositions. Academy of Management Review, 3(3), pp. 635-646. Farndale, E., Scullion, H. & Sparrow, P., 2010. The role of the corporate HR function in global talent management. Journal of World Business, 45(1), pp. 161-168. Giunipero, L. C. & Eltantawy, R. A., 2004. Securing the upstream supply chain: a risk management approach. International Journal of Physical Distribution & Logistics Management, 34(9), pp. 698-713. Hartmann, E., Feisel, E. & Schober, H., 2010. Talent management of western MNCs in China: Balancing global integration and local responsiveness. Journal of World Business, 45(2), pp. 169-178. Lewis, R. E. & Heckman, R. J., 2006. Talent management: A critical review. Human Resource Management Review, 16(2), pp. 139-154. Martocchhio, J. J., 2011. Strategic Compensation - A human Resource Management Approach. 6th ed. Chicago: Pearson Education Inc..

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Murphy, T. H. & Margulies, J., 2004. Performance Appraisal. Pittsburgh: ABA Labor and Employment Law Section Equal Employment Opportunity Committee. Tesco, Available [Accessed 23 April 2014]. WebFinance, Available at: Inc, 2014. BusinessDictionary.com. [Online] 2014. at: Tesco About Us. [Online]

http://www.Tesco.com/aboutUs.html

http://www.businessdictionary.com/definition/performance-appraisal.html

[Accessed 23 April 2014].

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