The talent management


In the 1990s, LBA Consulting Group undertook a major study, which focused on identifying the main factors contributing to the creation and sustenance of organization excellence (Berger, Lance A. 2003. p.3). The study examined organizations that had survived and prospered, and those that failed, over a 25 year period (Berger, Lance A. 2003. p.3). The results of the study suggested that six human resources conditions had to be met. These conditions were: a performance-oriented culture, low turnover (particularly in premium employee groups), high levels of employee satisfaction, and a cadre of qualified replacements, effective investment in employee compensation and development, and the use of institutional competencies (success factors) in employee selection and performance evaluation processes. The successful organizations focused on proactively and systematically managing their human resources along these lines. The organizations that failed took a more casual, traditional approach. (Berger, Lance A. 2003. p.3)

To attain the superiority in the business it is significant to optimize the organization's capability to know the need for practical "talent management" and have a methodical way of accomplishing the movement. (Berger, Lance A. 2003, p.4.)

Based on our research, we discovered that successful companies either articulate or intuitively focus on three outcomes. (Berger, Lance A. 2003, p.4.)

The identification, selection, development, and retention of Super keepers.. Their loss or absence severely retards organization growth because of their disproportionately powerful impact on current and future organization performance. Bill Gates once said, "Take our twenty best people away from us and I can tell you that Microsoft would be an unimportant company." (Berger, Lance A. 2003, p.4.)

The identification and development of high-quality replacements for a small number of positions designated as key to current and future organization success. Gaps in replacement activity for key positions are highly disruptive, costly, and distracting to the organization. (Berger, Lance A. 2003, p.4.)

The classification of and investment in each employee based on his/her actual and/or potential for adding value to the organization. (Berger, Lance A. 2003, p.4.)

Components of Talent Management

The research conducted on excellent organizations revealed that the infrastructure of human resources systems and processes for the failed organizations was typically an incoherent mosaic of unconnected, incomplete, missing, and inconsistent assessment, planning and development tools, and methods (Berger, Lance A. 2003, p. 5). This meant that performance appraisal, assessment of potential, competency evaluation, career planning, replacement planning, development and training, compensation, and selection (the core elements of human resources management) were unlinked and largely irreconcilable. Additionally, the return on the cost of implementing these separate and distinct programs was low, time expenditure was high, credibility was low, and employee dissatisfaction was pervasive. Additional research indicated that, after 70 years of growing sophistication in human resources management (Berger, Lance A. 2003, p. 5), there was no commonly acknowledged, espoused, and/or utilized approach for identifying, assessing, and developing a cadre of high-talent people for meeting an organization's current and future needs. Had the failed companies recognized the importance of the three success drivers, there still would be the issue of the availability of valid human resources processes to power them to excellence. (Berger, Lance A. 2003, p. 5)

Talent Reservoir has three major components. These are:

  1. Designing and building a Talent Reservoir solution.
  2. Capturing the Talent Reservoir solution in a software package.
  3. Implementing an integrative Talent Reservoir process.

Talent Management Assessment Tools

Performance Appraisal: a measurement of actual results achieved within those areas for which the employee is held accountable and/or the competencies deemed critical (Employee Performance Management Articles retrieved from, to job and organization success.

Potential Forecast: a prediction of how many levels (organization/job) an employee can progress within an organization based on his/her past current performance appraisals (Employee Performance Management Articles retrieved from,, training and development needs, career preferences, and actual and projected competency levels.

Measurement Scales for Performance and Potential: the study of 350 organizations was linked for the successful talent management process and the study showed the five-point scale to measure performance.

Core/Institutional Competencies: Behavioural/skill expectations that are crucial to the success of each employee and to the success of the entire organization.

Lincoln's Management System: a success behind the company

To discuss the role of directors and management control I will present the case study of Lincoln's Electric, which has its name because of its best management even in recession period.

Lincoln Electric(LE) first expanded to Canada by opening a manufacturing plant in Toronto in 1925.[1] About twenty years later, LE Canada adopted the Incentive Management System (IMS) including its annual bonus and piecework facets. Because of the cultural similarity between US and Canada the adjustment flowed smoothly. However, poor decision-making led to this application of the IMS in other markets, including Europe and South America. Friction resulted because the cultural values of the production worker are different. Also, government regulation in Germany and Brazil led to major adjustments that undermined LE's incentive efforts. In Europe, workers valued benefits such as vacation time over annual bonuses. It was discovered that annual bonuses did little to increase individual production efficiency without the piecework aspect of the IMS. Piecework was in fact illegal in Germany.

A large portion of Lincoln Electric's (LE) success can be attributed to this unique and effective management style which ultimately leads to a competitive advantage. No matter the economies of scale a huge corporation such as GE can offer, the increased productivity level of a properly motivated individual production worker can easily compensate for it. This management style is further fostered through a combination of structural, strategic, and cultural norms within LE. Role of directors was always behind the big success of the company.

A great success to get the best team work for maximum productivity and quality work from the motivated workforce even during financial crisis the management was successful in motivating the team workers to get the maximum productivity with great quality. LE, the company faced a difficulty of handling the work force abroad while the same management practices are successful at home country.

Examples of Talent Management

To adopt the concept of talent management strategy is an act of faith. There are, of course, sectors where talent management has a direct bearing on the balance sheet, such as American and UK football clubs where the players are shown as multimillion dollar assets.

Being 'right' or 'lucky' in decision-making is the hallmark of the successful executive; the converse also applies. The desire to mitigate risk is not necessarily a negative consideration but purely a human one. This risk is another dimension and to take an action at the right time the consequences of inaction will be dire. In evaluating the merits of adopting a talent management strategy, the consequences of inaction must be taken into account.

The majority of new management thinking emanates from the United States. There are many reasons for this, not the least being the size of domestic market which stimulates thinking on a grand scale. Early management thinking focused on manufacturing productivity; this was followed by logistics and distribution. The need to communicate with a large and diverse market led to the development of advertising and marketing strategies.

The latest focus is on 'human capital' the skills and competencies of the employees and ways in which they are deployed, managed and exploited. This concept has gained rapid acceptance and the existence of relevant strategies is now expected as part of any corporate governance assessment.

"Welcome to Profile Talent Management" is Australia's leading Talent Management Company. This website present the different talented managers and their profiles who are working in different companies both in home country (Australia) and internationally.

Decentralized Control: this is based on values and assumptions that are almost opposite to those of bureaucratic control. In this kind of control the management rely on the values and objectives of the organization to motivate the employee behaviour. The organization places great emphasis on the selection and socialization of employees to ensure that the workers have the appropriate values needed to influence behaviour towards meeting company goals. Self discipline and self control are the only best ways for the management to control the employees to get the better performance by motivating them towards the job standards. Empowerment of employees, effective socialization, and training all can contribute to internal standards that provide self-control.

This decentralized control, is dispersed in kind and based on the employees experience as well as knowledge and his position. The Lincoln Electric's has the decentralized control in the organization and the organizational structure is flat and horizontal with flexible authority and teams of workers solving problems and making improvements. In this kind of organizational culture every one contributes for the problem solving matters and for better performance to get the quality and more production.

A great success to get the best team work for maximum productivity and quality work from the motivated workforce even during financial crisis the management was successful in motivating the team workers to get the maximum productivity with great quality. LE, the company faced a difficulty of handling the work force abroad while the same management practices are successful at home country.

Lincoln uses a diverse control approach. Tasks are precisely defined, and individual employees must exceed strict performance goals in order to achieve top pay. Lincoln Electricity has a best remuneration system for its employees and that is the reason behind the workers best performance that they are always paid a good remuneration for their performance. The company also pays the annual bonuses, which fluctuate according to the company's profits, and they participate in stock purchase plans. Company evaluates the bonus for employees on the four main factors:

  • Productivity
  • Work quality
  • Dependability, and
  • Team work (cooperation)

Here all the qualities of Decentralized Control are found in Lincoln's Electric:

  • Limited use of rules; relies on values, group and self control, selection and specialization
  • Flexible authority, flat structure, expert power, everyone monitors quality
  • Extrinsic and intrinsic rewards (meaningful work, opportunities for growth)
  • Rewards individual and team; emphasis on equity across employees
  • Broad employee participation, including quality control, system design and organizational governance
  • Adaptive culture; culture recognized as means for uniting individual, team, and organizational goals for overall control.

Value Added Talent Management Strategy

Following are the recommended approach to value added strategy:

  • Competency area: the aspect of capability or skill that is being appraised
  • Assessed score: the rating given at the previous assessment
  • Recommended training: the identified course or training programme that will be used to improve performance
  • Pre-training KA: the knowledge assessment of the individual prior to attendance on the course
  • Training undertaken: the record of the course(s) attended
  • Post-training KA: the rating achieved from the knowledge assessment conducted after the rating achieved from the knowledge assessment conducted after the training has been completed
  • Current assessment: the competency rating achieved at the current performance appraisal.

The organizations running talent management programmes will almost certainly have a formal programme through which selected staff will attend various modules designed to provide a thorough all-round knowledge of the company and its key functions.


Lincoln Electric could avoid this situation if they spend more on planning and research. To enter the international borders this is of great importance to study its culture and abide by the rules and regulations designed by Government. Here Lincoln Electric made a big mistake by starting their operation in Germany on the same values and practices as they were performing in US.

Ability to Attract and retain talented people: This is the best HR practice to get the high performance and build motivation in the organizational environment. Companies with a high-performance business strategy recognize the need of managers who are close to talent and better able to spot opportunities and non-traditional career paths for the people they manage. They can perform as a model role by presenting their best performance, which will be a great influence on those employees working with them. This influence will cause a motivation and force the employees to present their best work to get the rewards and achievements in the organization. The case study reflect the failure of the management to motivate the employees overseas even the management was not interested in the increased sales and there was no much work for the workers and they were found sleeping in the bunches. So, by hiring and retaining the right person for the job could lead to get success in international cultures as well.

Training Methods and Workshops: this is also possible to provide the training and arrange workshops to give updates about new technologies and their use in the business organization. The training can increase the employee knowledge and enhance the ability to perform much better. So, this could lead an organization to be a high-perform business by motivating the employees to perform better and gain more information and knowledge to improve their performance. This is one of the best ways to train the diversity in a way that they may learn the information about the organization and its products to increase the performance for better quality. LE introduced the technical training for the sales representative to solve the customer problems and to enhance their performance in the organization.


Talent Management strategy in the organization can help the management to find the best people for the job to accomplish the task successfully. To find the right person or talented person is HR responsibility and talented people in organizations can play the vital role. It is of great importance to keep them in the organization and hire more talented people and provide them training if necessary. The value added key is one, which can make the organization success in the global market. LE made huge profit in recession and their reason of success is their unique management style. That's why it is said the talented people make this possible for the organization to earn the profit and survive in the market successfully while in recession.


  1. Berger, Lance A. 2003, "Talent Management Handbook." Blackhill, OH, USA: Published by McGraw Hill. P-2-4
  2. Employee Performance Management Articles retrieved from,
  3. Headd, Brian. Redefining Business Success: Distinguishing Between Closure and Failure. Accessed April 19, 2006. <>
  4. David Clarence McClelland, 1958 "Talent and Society: new perspectives in the identification of talent". P.6
  5. Sphr Doris Sims, Sphr Matthew Gay, 2007 "Building Tomorrow's Talent: A practitioner's Guide to Talent Management". P.90
  6. Tony Davis, Maggie Cutt, 2007 "Talent Assessment: a new strategy for talent management": Gower Publishing Ltd. P. 20-45

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