Analysis of the Factors of Schematic Talent and its affect on organizational performance

Introduction There is a dynamic change in the management practices of today’s business environment which has resulted in a mega shift in HRM plays. The administrative support has been replaced traditionally and now includes HR practices. As human capital is the greatest asset of organizations, hence HR now drives them strategically. Industry is searching for the best to reach the heights of excellence and can be possible only by managing the talent of the organization by succession planning. Human capital can be managed strategically by talent management for increasing performance of the organization. Talent Management in a global organization is more complex and demanding than it is in a national organization and only few of the major worldwide organization are able to meet the challenge. Organizations need the best talent to become successful in the hyper-competitive and more complex global economy. Organizations, in addition to awareness about the need to hiring, development and retaining talented people, know the need to manage talent as means to achieve the best possible results. Only few organizations now enjoy the adequate supply of talent. During the current economic recession a short ceasefire in the talent war may be observed. But we see new pressure on the talent present in the organization. Talent is a resource which is rarely found; hence its management should be done to maximum effect. Talent Management only anticipates the necessity for having human capital and then prepares a plan to meet it (Petter Cappelli, 2008). Managers know the importance of the talented people and spend sufficient time to identify and recruit individuals of high caliber wherever found (Lowell L. Bryan, 2009). Talent Management assists the organization and its executives to plan goals, develop strategies to appraise critical performance including succession and talent gaps, average previous experience and skill, average tenure of the job, retirements and turnovers. Talent Management is known to be a key driver of performance of the organization. Talent gaps in business organizations result in a need to recruit to attract future employees. Presence of talent in an organization means ready availability of right skills for achieving short term and long term goals of the organization. Talent Management must match business strategy to support growth. Talent Management practices should be measured for ensuring success and progress of the business. This will help to assess current talent management practices against future needs. Talent Management is defined by CIPD as to systematically attract, identify, develop, engage/retain and deploy those individuals who have high potential and particular value for the organization (Chartered Institute of Personnel and Development, 2006). It is the main strategy that solves many problems faced by the organization such as aging workforce, increased turnover, enhanced rates of the retiring people, limited competitiveness, tight labor market and quick changes in working styles and practices. Every modern organization is highly concerned with selection and retention of talent which includes competent and committed people. Literature Review By the mid-1990s, almost every major corporation incorporate the aim of improving at recruiting talent away from competitors while also improving at maintaining its own talent at a certain standard of excellence. In addition, companies found that they were building expertise and losing expertise to other competitors simultaneously. Outside searches became increasingly expensive, specifically when they involved