 Namaste we are going to look at a process called talent management. This is perhaps the most important process of human resource management function. We need to understand that so many factors affect HR system. In the first session we looked at HR system as a term for a comprehensive system which includes recruitment, selection, performance management, training and development, compensation management, industrial relation related processes. The factors like nature of workforce. In the last session we talked about different generations working at in any organization. They have that has impact on the nature and the way that kind of human resource can be managed. So the nature of workforce, it is a demographic character, education, technological prowess, the culture within which that organization is located. All these factors affect the nature of workforce. Organizations also have their own culture. Here organization culture means shared values and beliefs. In any collectivity here the organization is a collective system and the culture is reflected by the shared values, beliefs, norms, traditions, rituals. It is also reflected by who are considered heroes in any organization and that has also have immense impact on the nature and the kind of organization processes are evolved and they are implemented. In the first session we also discussed about organization strategy. The strategy is a pathway to achieve long term objectives and that has impact on the HR system and we had a detailed discussion in the first session. Organization of work or what we call organization design that also has impact on the HR system. Organizations can be of different design and organization design can be of different kind like functional organization, divisional organization, team based organizations, virtual organizations, network based organizations so on and so forth and that arrangement of work or organization of work which is reflected in the organization design also immensely very strongly affect the HR system. Then we also need to recognize that political, economic, social, technical and legal aspects of the environment in which organization is functioning also going to impact the nature of HR system. So we need to understand that HR system is not independent system of its own and it is affected by so many factors which are internal to organization as well as external to organization. When we say talent management we need to recognize and probably this is the basic tenet of talent management is that performance in an organization is not only dependent on the ability of the people or organizational members working over there. Performance is factor of ability in motivation and opportunity to perform. All three factors affect performance of people in organization. We may have very talented people but if they are not motivated to perform, if they are not inspired to perform, if they do not find their work meaningful that will not result in the best performance. Many time it happens organizations are able to get sufficiently talented and intelligent or competent human resources but they are not able to give the sufficient opportunity and that opportunity loss can be in the can be because of the poor organization design and not using appropriate technology, uninspiring leadership and many other factors even very talented and competent people may not get opportunity to perform and show their talent. So the performance of the individuals and organization is factor of ability, motivation and opportunity to perform. Talent management can also be looked at as talent value change. Many of you must be familiar to the economic value change. Similarly, we can draw a talent value change. Talent value change starts with the employees outcome like behavior, knowledge and attitude. We must remember this framework behavior, knowledge and attitude. These three are the constituents of competency. Competency leads to organizational outcome in the form of productivity and quality of the outcome. If organization productivity and quality of the output is there naturally that will result into the positive financial outcomes like profitability or enhanced revenue and financial outcomes relate to or reflected in the market based outcome. Stock price is one of the market based outcome but they can be multiple market based outcome like brand equity, brand recall etc. So like capital is very important for an organization, talent should also be considered as capital and that has to be deployed successfully and effectively in an organization. For example, we have one study conducted by Mackenzie which says that companies that keep reallocating the financial capital aggressively it means probably in agile manner from one division to another based on the market opportunity and performance. They were found to have worth 40% more in 15 years time in comparison to the companies which were not agile enough, which were not aggressive enough to reallocate the financial capital. In the same way talent also should be considered as capital and need to be allocated at the different places at different point of time according to the market opportunity and performance. As a practicing manager organizations have to ask certain questions. Answers to these questions can tell about the robustness of the talent management process. The first question is what are the key roles in our organization? Are they aware of the key roles in the organization? Not all roles in organization create similar value or they differ according to the criticality in terms of their impact on the value creation as well as in terms of availability of the talent for that particular role in the market. Second question is do you have the right people in the company's key roles? Third question is do your best people know what they are expected to do? That is related to knowledge and also related to skill. Whom do we consider future leaders in organization and are we aware of the future leaders in the organization? Does HR function know or do HR function know or have a say in identifying the future leaders? We need to understand that HR has to have important role in identifying the future leaders. What companies are hiring our best employees? Which are the industries or which are the organization people join after leaving our company? That tells with whom we are compared in the market. We also need to understand the talent management process from the HR planning perspective. HR planning or human resource planning is very important function of the HR department. And that has to be informed by the strategic orientation or a strategic pathway of the organization because strategy result into work demand and work demand can be met by considering the factors influencing work design and looking at the different forms of work design. The understanding of the work demand which arise from the strategy formulation leads to labor supply and that supply is affected by environment and the decision of the HR about whom to hire and how to hire. And labor supply result into HR result into strategy implementation. So, you can see that strategy formulation is the one end and strategy implementation is another end in between comes HR planning and HR planning has a direct role on strategy implementation. How do we go about it? How an organization can carry out a smart talent management process? We can call it a collaboration of G3. Who are these G3 in this case? These are CEO, CHRO and CFO. HR planning or talent management process has to be informed and has to be taken care of ultimately by this G3. They deploy both a roster of the top talent and deep understanding of the people on it. Here technology also plays and can play a very important role. There are so many software applications that can elevate our ability to identify, recruit or support talent. We can understand with this small a-slit. There is an organization called MAS which is a giant insurance broker and risk management for CEO invites CHRO and CFO to review the business. Now review of the business was done on the parameter of business performance and organizational concerns. What is the meaning of this graph? That means they looked at different organizational concerns that can be related to marketing process, HR process, operational process, IT related processes and within those processes what are the organizational concerns and then they also looked at what will the impact of addressing that concern or those concerns will be on business performance. So in this process they can identify which are the organization concerns which can have highest positive or negative impact on business performance. As a result of this analysis the new sales incentive plan that was affected and so adjustment in the new sales incentive plan happened which CHRO was about to introduce so that it would better align with the organization's overall business goals and would encourage to the team to deliver near term results and focus on the future. So learning from this small case let is that when you understand which thing on organizational side really advancing business performance they have to be prioritized and actually when we know with this knowledge prioritization becomes very easy. G3 through formal and informal interaction ensure that talent and finance will be appropriately linked to all mission critical decisions.