Human Capital And Its Impact On The Success Of The Company Essay

This paper is going to describe OCBC’s unique approach to talent management and development. Compare OCBC’s approach to talent management and development to other organizations you are familiar with (e.g., current or past employers, a family business). Explain how OCBC’s approach to talent management and employee development been a primary contributing factor to the firm’s success. Evaluate the extent to which OCBC’s approach to talent management and development fits other organizations or industries, including some limitations if applied elsewhere without modification.

All organizations have the common objective of being successful and nowadays due to competition that is not an easy achievement. The most important capital that companies have is the human capital and, to be successful, is essential for the organizations to focus on people.

Business environment is facing a rapid change that reminds the business management to focus on its core competencies to survive and sustain in the competitive environment. The core competencies can be developed by strategic human resource management. According to Armstrong (2006) employees are the valued assets for a company. The strategic human resource management is mainly developed in accordance to the fact that human resources need to be managed strategically for the company to enjoy sustainable competitive advantage.

* Intangible Resources – Family commitment, networks, organizational culture, reputation, intellectual property rights, trademarks, copyrights

There are obviously many different factors that affect an organistions approach to talent planning. External factors such as the economic environment can have a massive effect in how an organisation resources and retains talent. For example, in times of high unemployment it is far easier to attract high levels of talent, as there are many unemployed suitable candidates in the job market. Similarly it is easier to retain staff as they are less likely to leave due tot the difficulty of finding new suitable employment. Political factors such as changes to minimum wage may also have an effect on talent planning, it may be that an increase in minimum wage will

Depending on the nature of the business, organizations will require various sets of talents (skill, knowledge and capabilities) that contribute towards the their growth and success. Markets in general have high supply of some talents and low of others. Based on the talent requirement of the organization and the market in which it operates, it will have to alter its approach towards attracting the required talent. This may involve adjusting factors like remuneration, long & short-term benefits, career prospects, trainings, etc.

Core competencies are the capabilities that are critical to a business achieving competitive advantage. The starting point for analysing core competencies is recognising that competition between businesses is as much a race for competence mastery as it is for market position and market power. (Prahalad and Hamel)

For an organisation to attract talent successfully, as part of the talent planning policy it needs to identify and assess what factors affect its approach to attracting talent. For example:

Resource and Talent Planning ensures that the organisation is able to identify and attract the key people with the capability to create competitive advantage to fulfil the ambitions of the business.

The most intriguing idea that come into my view of talent management is an achievement, put into practice of talent management to review staff meeting. For discussion in relation to talented staffs and building their knowledge, expertise and possibility introducing to other managers in separate sections of the business. As well as the potential to utilize make growth of inside talent is magnified for equally the business and the talented workers.

Competencies can be used to provide the behaviours needed at work to achieve the business strategy, and enable organisations to form a model of the kinds of employee it wishes to attract through recruitment.

How well a business manages its assets and resources predicates its overall success. Companies that spend financial resources foolishly are apt to find themselves in bankruptcy. Companies that work capital equipment resources beyond the machine’s capabilities or for other than intended purposes are apt to experience downtime and/or lose the equipment to failure. The same premise holds true for a company’s human assets. However, unlike other company assets, which depreciate over time, human assets appreciate over time when managed properly. The article, Importance of Human Resource Investment for Organizations and Economy: A critical Analysis, explains the importance of managing human assets as follows:

Competitive corporate environment it is important that companies pay attention to their employees’ abilities to perform their duties. What is actually important is for companies to continuously study not only how they can perform well for the customers but they also have to address the issue on how they can maintain a highly effective staff. To achieve this they should have strategies in place to measure their employees’ skills, knowledge, and attitude. This will assist in better planning strategies needed to have an effective retention program in place to measure the learning and growth perspective.

Human capital is one of the valuable strategic assets. It has enormous contribution in the field of inventions and innovation therefore, its importance cannot be overlooked in the knowledge base economy (Olayiwola, 2015). Human Capital is defined as the knowledge, experience, skill and expertise of firms’ employees (Edvinsson & Malone1997). Diez, Ochoa, Prieto & Santidrian (2010) define human capital as firm’s competencies and value creation efficiencies which are linked by employee’s knowledge, skill and intellectual capabilities. Sveiby (1997) describes human capital as ability to work in different dimensions that enhance value creation both in tangible and intangible assets. Bontis, 1998 conclude s that in other to find out paramount solutions of structured and unstructured problems

In bajaj allianz life insurance Company, the Talent Management Program is a unique platform that assesses the Performance and Potential of an employee and hence comes out with a more balanced view of individuals ' abilities. It helps to develop an organizational wide talent map thereby enabling the organization to identify key talent and nurture them. In this program, each employee is mapped on a performance vs. potential grid enabling us to groom an employee not only on the basis of performance but potential talent as well. Through Talent Management Program they now have a holistic view of an individual’s abilities as it recognizes Key Resources and provide them with growth opportunities; facilitates retention of High Performers and complements the rewards system. It also facilitates designing of Personal Development Plan (PDP) and Personal Improvement Plans (PIP) for employees and hence provides the basis for Training Needs Analysis (TNA).The Excellence Awards endow a national platform on which Excellence in each field of our operations is recognized. It is instituted to value the efforts and contributions made by the employees and to appreciate Excellence in all their endeavors. The employees are evaluated on certain pre-defined parameters such as Ambition and Drive, Ability and Willingness to Learn, Customer Orientation, and People Orientation etc. The nominations go through an extremely robust evaluation at the highest level of management and the