Current Industry Practices for Talent Planning

Talent Planning is the strategic process of identifying, attracting, developing, and retaining employees to meet an organization’s current and future workforce needs. It involves assessing skills gaps, forecasting staffing requirements, and implementing initiatives to ensure a pipeline of qualified talent aligned with business goals. Current industry practices for talent planning vary depending on the industry, organizational size, and other factors.

Common Practices:

  • Continuous Learning and Development:

Many organizations are investing in continuous learning and development programs to support employee growth and development. These programs may include classroom training, online courses, coaching, mentoring, and other opportunities for skill development.

  • Leadership Development Programs:

Organizations are developing formal leadership development programs to identify and develop high-potential employees for future leadership roles. These programs may include assessments, coaching, mentoring, and on-the-job learning experiences.

  • Succession Planning:

Many organizations are developing formal succession planning processes to ensure a smooth transition of leadership when key leaders leave the organization. Succession planning may involve identifying potential successors, developing their skills and competencies, and creating a plan for transferring knowledge and leadership responsibilities.

  • Talent Analytics:

Organizations are using talent analytics to gain insights into their workforce and inform talent planning decisions. Talent analytics may involve analyzing employee performance data, turnover rates, engagement survey results, and other metrics to identify talent gaps and inform talent development efforts.

  • Talent Mobility:

Organizations are embracing talent mobility as a way to develop employees and fill talent gaps. Talent mobility may involve rotating employees through different roles and departments within the organization to develop their skills and provide exposure to different parts of the business.

  • Employer Branding:

Organizations are using employer branding to attract and retain top talent. Employer branding may involve creating a strong employer value proposition, promoting the organization’s culture and values, and highlighting opportunities for career growth and development.

Talent Planning Objectives, Steps

Talent Planning is an essential process that organizations use to ensure they have the right talent in the right roles to achieve their strategic objectives. The process involves several steps, including defining business objectives, assessing current talent, developing a talent strategy, creating a talent pipeline, implementing talent management processes, and monitoring and evaluating progress.

Effective Talent planning requires a strategic approach that aligns with the organization’s overall business strategy. By identifying talent gaps and developing a talent strategy that addresses these gaps, organizations can create a talent pipeline that supports their long-term success. This involves identifying high-potential employees and providing them with development opportunities that prepare them for future leadership roles within the organization.

Talent planning also involves implementing talent management processes, such as performance management, succession planning, and career development programs, to ensure that talent is managed effectively. By providing clear career paths and development opportunities, organizations can improve employee engagement and retention.

Moreover, talent planning helps organizations build a strong employer brand and promote diversity and inclusion by showcasing their commitment to employee development and career growth. This, in turn, can attract top talent to the organization and promote a culture of inclusivity and diversity.

Talent planning is the process of identifying, developing, and managing an organization’s talent to meet its current and future business needs. The goal of talent planning is to ensure that the organization has the right talent in the right roles at the right time to achieve its strategic objectives.

Steps in the Talent Planning Process:

  • Identify Business Objectives:

The first step in talent planning is to identify the organization’s business objectives. This helps determine the talent requirements needed to achieve these objectives.

  • Assess Current Talent:

Organizations should assess their current talent to identify strengths, weaknesses, and gaps. This can involve evaluating employee performance, skills, and potential.

  • Develop a Talent Strategy:

Based on the business objectives and talent assessment, organizations should develop a talent strategy that outlines how they will attract, develop, and retain top talent.

  • Create a Talent pipeline:

Organizations should create a talent pipeline that identifies high-potential employees and prepares them for future leadership roles within the organization. This can involve providing development opportunities, such as mentoring, training, and job shadowing.

  • Implement Talent Management processes:

Organizations should implement talent management processes, such as performance management, succession planning, and career development programs, to ensure that talent is managed effectively.

  • Monitor and Evaluate:

Organizations should monitor and evaluate their talent planning efforts to ensure they are effective and aligned with the organization’s strategic objectives. This can involve collecting data on employee performance, engagement, and retention, and making adjustments to the talent strategy as needed.

Talent Planning Objectives

The Objectives of Talent Planning are to ensure that an organization has the right talent in the right roles at the right time to achieve its strategic objectives.

  • Identify and address Talent gaps:

By assessing the organization’s current talent and identifying potential gaps, talent planning can help ensure that the organization has the necessary talent to achieve its strategic objectives.

  • Develop a Strong Talent Pipeline:

Talent planning can help organizations develop a strong talent pipeline by identifying and developing high-potential employees and preparing them for future leadership roles.

  • Improve Employee Retention:

By providing development opportunities and clear career paths, talent planning can help improve employee retention by keeping top performers engaged and motivated.

  • Enhance Employee Engagement:

Talent planning can help enhance employee engagement by providing employees with development opportunities and a clear path for career advancement.

  • Improve Organizational agility:

By ensuring that the organization has the right talent in the right roles, talent planning can help improve organizational agility by enabling the organization to quickly adapt to changing business needs.

  • Strengthen the Employer brand:

Effective talent planning can help strengthen the employer brand by showcasing the organization’s commitment to employee development and career growth.

  • Promote Diversity and Inclusion:

Talent planning can help promote diversity and inclusion by identifying and developing diverse talent and ensuring that the organization’s talent management processes are inclusive and equitable.

Steps in Talent Planning

Talent Planning process involves several steps to ensure that an organization has the right talent in the right roles at the right time to achieve its strategic objectives.

  • Define Business objectives:

The first step in talent planning is to define the organization’s business objectives. This helps determine the talent requirements needed to achieve these objectives.

  • Conduct a Talent assessment:

Organizations should assess their current talent to identify strengths, weaknesses, and gaps. This can involve evaluating employee performance, skills, and potential.

  • Develop a Talent strategy:

Based on the business objectives and talent assessment, organizations should develop a talent strategy that outlines how they will attract, develop, and retain top talent. This strategy should be aligned with the organization’s overall business strategy.

  • Create a Talent pipeline:

Organizations should create a talent pipeline that identifies high-potential employees and prepares them for future leadership roles within the organization. This can involve providing development opportunities, such as mentoring, training, and job shadowing.

  • Implement Talent Management processes:

Organizations should implement talent management processes, such as performance management, succession planning, and career development programs, to ensure that talent is managed effectively.

  • Monitor and Evaluate:

Organizations should monitor and evaluate their talent planning efforts to ensure they are effective and aligned with the organization’s strategic objectives. This can involve collecting data on employee performance, engagement, and retention, and making adjustments to the talent strategy as needed.

By following these steps, organizations can create a strong talent pipeline that supports their business goals and objectives. Talent planning is an ongoing process, and organizations should regularly review and update their talent strategy to ensure it remains effective and aligned with changing business needs.

Consequences of Failure in Managing Talent

Managing Talent is a critical aspect of organizational success. Effective talent management involves attracting, developing, and retaining top performers, and creating a workplace culture that supports employee engagement, productivity, and growth. Failure in managing talent can have significant consequences for an organization, including loss of top talent, low employee engagement, inability to meet business goals, increased recruitment costs, damage to reputation, increased risk of legal action, and lack of diversity and inclusion.

To overcome failure in managing talent, organizations must adopt a strategic approach that focuses on identifying the root causes of the problem and implementing targeted solutions. One key step is to conduct a talent audit to review talent management practices, identify areas of weakness, and develop a plan to address them. Investing in training and development programs is also essential for managing talent effectively, as it helps employees develop new skills and improve their performance. Offering competitive compensation and benefits packages, creating a positive workplace culture, focusing on diversity and inclusion, implementing performance management systems, and communicating effectively are other critical strategies for managing talent effectively.

Investing in talent management can have significant benefits for organizations, including increased productivity, employee engagement, and retention, as well as improved business outcomes. By prioritizing talent management, organizations can create a high-performing workforce that is capable of achieving business goals and driving growth.

Failure in managing talent can have significant consequences for an organization.

Possible Consequences:

  • Loss of Top talent:

Lack of effective talent management can result in the loss of top-performing employees. This can be particularly damaging to an organization, as top talent is often hard to replace and can be crucial to achieving business goals.

  • Low Employee Engagement:

When employees feel undervalued or unappreciated, their engagement levels can drop. This can result in lower productivity, decreased morale, and increased turnover.

  • Inability to Meet Business goals:

Effective talent management is critical to achieving business goals. If an organization fails to manage its talent effectively, it may struggle to achieve its objectives, which can have serious financial consequences.

  • Increased Recruitment costs:

When an organization loses top talent, it must spend time and resources recruiting and training replacements. This can be costly and time-consuming, particularly if the organization is unable to attract high-quality candidates.

  • Damage to Reputation:

Poor reputation as an employer can make it difficult for an organization to attract top talent in the future. This can make it harder to achieve business objectives and may limit growth opportunities.

  • Increased risk of Legal action:

Poor talent management practices, such as discrimination or harassment, can increase the risk of legal action. This can result in costly legal fees, damage to the organization’s reputation, and potential financial penalties.

  • Lack of Diversity and Inclusion:

Effective talent management includes creating a diverse and inclusive workplace. Failure to do so can result in a lack of diversity and inclusion, which can limit creativity, innovation, and the ability to attract top talent.

How to overcome of Failure in Managing Talent?

Overcoming failure in managing talent requires a strategic approach that focuses on identifying the root causes of the problem and implementing targeted solutions.

  • Conduct a Talent Audit:

The first step in overcoming failure in managing talent is to conduct a thorough talent audit. This involves reviewing the organization’s talent management practices, identifying areas of weakness, and developing a plan to address them.

  • Invest in Training and Development:

One of the most effective ways to manage talent is to invest in training and development programs. This can help employees to develop new skills and improve their performance, which can increase productivity and engagement levels.

  • Offer Competitive Compensation and Benefits:

Attracting and retaining top talent often requires offering competitive compensation and benefits packages. This can include salary, bonuses, health insurance, retirement plans, and other perks.

  • Create a Positive Workplace Culture:

A positive workplace culture is essential for attracting and retaining top talent. This can include creating a supportive work environment, recognizing and rewarding employees for their achievements, and encouraging collaboration and teamwork.

  • Focus on Diversity and Inclusion:

Building a diverse and inclusive workplace is key to managing talent effectively. This involves actively recruiting and retaining employees from diverse backgrounds, offering training on unconscious bias, and creating a culture of respect and inclusivity.

  • Implement Performance Management Systems:

Effective performance management systems can help to identify top performers and provide opportunities for growth and development. This can include setting clear goals and expectations, providing regular feedback and coaching, and offering opportunities for advancement.

  • Communicate effectively:

Effective communication is critical for managing talent effectively. This includes providing regular feedback and recognition, communicating goals and expectations clearly, and creating a culture of open communication and feedback.

Talent People vs. Knowledge People

Talent People

Talent people refer to individuals who possess unique skills, abilities, and expertise that are highly sought after by organizations. These individuals are often referred to as “top talent” or “high-potential” employees because of their exceptional skills and potential to contribute significantly to an organization’s success.

Talent people are highly valued by organizations because they bring valuable skills, knowledge, and experience to the table. They are often viewed as key assets to an organization’s success and are critical to driving growth and achieving business objectives. In addition, talent people are typically highly motivated, engaged, and committed to their work, which can lead to increased productivity, innovation, and improved business outcomes.

Organizations that want to attract and retain talent people must develop effective talent management strategies that focus on creating a positive workplace culture, providing opportunities for growth and development, offering competitive compensation and benefits, and providing a supportive work environment. These strategies can help organizations to attract and retain top talent, increase employee engagement and productivity, and improve business outcomes.

However, it is important to note that talent people are not the only individuals who contribute to an organization’s success. While talent people bring valuable skills and expertise to the table, all employees play a critical role in achieving business objectives. It is important for organizations to recognize and value the contributions of all employees, regardless of their level of talent or expertise.

Characteristics associated with Talent People:

  • Exceptional skills and expertise:

Talent people possess unique skills, knowledge, and expertise that set them apart from others in their field. They are often recognized for their ability to solve complex problems, think creatively, and innovate.

  • High Level of Motivation and Engagement:

Talent people are typically highly motivated and engaged in their work. They are passionate about what they do and are committed to achieving success both personally and for the organization.

  • Strong work ethic:

Talent people have a strong work ethic and are willing to go above and beyond to achieve their goals. They are often characterized by their persistence, dedication, and willingness to take on challenges.

  • Continuous Learning and Development:

Talent people are committed to continuous learning and development. They are always seeking new opportunities to develop their skills and expand their knowledge.

  • Strong Communication and Collaboration skills:

Talent people are effective communicators and collaborators. They are able to work well in teams and communicate effectively with colleagues, clients, and stakeholders.

  • Adaptability and Resilience:

Talent people are adaptable and resilient in the face of change and uncertainty. They are able to navigate challenges and setbacks and come up with innovative solutions to problems.

  • Leadership Potential:

Talent people often demonstrate strong leadership potential. They have the ability to inspire and motivate others, and to lead by example.

Knowledge People

Knowledge people are individuals who possess a deep understanding of a particular subject matter or field. They are often highly knowledgeable, skilled, and experienced in their area of expertise. These individuals are highly valued by organizations for their ability to provide specialized knowledge and expertise that can help the organization achieve its goals.

Characteristics associated with Knowledge People:

  • Deep expertise:

Knowledge people possess deep expertise and knowledge in a particular subject matter or field. They have a comprehensive understanding of the theory, principles, and best practices in their area of expertise.

  • Continuous Learning:

Knowledge people are committed to continuous learning and development. They stay up-to-date with the latest trends, research, and developments in their field and are always seeking to expand their knowledge and expertise.

  • Analytical Thinking:

Knowledge people possess strong analytical thinking skills. They are able to analyze complex information, identify patterns, and draw insights that can help solve problems and make informed decisions.

  • Effective Communication:

Knowledge people are effective communicators. They are able to convey complex information in a clear and concise manner, and are able to tailor their communication style to different audiences.

  • Innovative Thinking:

Knowledge people possess innovative thinking skills. They are able to think outside the box and come up with creative solutions to complex problems.

  • Attention to detail:

Knowledge people possess a keen attention to detail. They are able to identify and address even the smallest issues, and are meticulous in their work.

  • Strong work ethic:

Knowledge people have a strong work ethic and are committed to delivering high-quality work. They are often characterized by their persistence, dedication, and willingness to go above and beyond to achieve their goals.

Important differences between Talent People and Knowledge People

Aspect

Talent People Knowledge People
Learning Approach Intuitive Analytical
Problem-Solving Innovative Systematic
Adaptability Flexible Adaptive
Creativity Inventive Methodical
Leadership Style Inspirational Consultative
Communication Style Charismatic Precise
Decision Making Instinctive Evidence-based
Risk Tolerance Bold Cautious
Collaboration Dynamic Structured
Networking Social Informational
Resilience Tenacious Reflective
Motivation Passion-driven

Knowledge-driven

Tools for Managing Talent

Managing talent is a critical aspect of organizational success. Effective talent management involves attracting, developing, and retaining top performers, and creating a workplace culture that supports employee engagement, productivity, and growth. Failure in managing talent can have significant consequences for an organization, including loss of top talent, low employee engagement, inability to meet business goals, increased recruitment costs, damage to reputation, increased risk of legal action, and lack of diversity and inclusion.

Managing talent involves various processes and strategies that help organizations attract, retain, and develop their top talent.

Tools used by Organizations to Manage Talent:

  • Performance Management systems:

These systems help organizations track employee performance, set goals, and provide feedback and coaching to help employees develop their skills and reach their potential.

  • Succession planning:

Succession planning involves identifying high-potential employees and preparing them for future leadership roles within the organization. This helps ensure that the organization has a pipeline of talent ready to step into key roles as needed.

  • Career Development Programs:

Career development programs provide employees with opportunities to develop their skills and knowledge, and to explore different career paths within the organization. These programs can include training, mentorship, job shadowing, and other development opportunities.

  • Talent Acquisition Tools:

These tools help organizations attract top talent by promoting their employer brand, identifying and engaging with potential candidates, and streamlining the hiring process.

  • Employee Engagement Surveys:

Employee engagement surveys help organizations understand how engaged and satisfied their employees are with their work, and identify areas for improvement. This can help organizations create a more positive work environment and improve retention of top talent.

  • Learning Management Systems:

Learning management systems provide employees with access to training and development resources, such as online courses, webinars, and other learning materials. These systems can also help organizations track employee progress and measure the effectiveness of training programs.

  • Talent Analytics Tools:

Talent analytics tools help organizations analyze data related to employee performance, engagement, and retention. This can help organizations make data-driven decisions about talent management and identify areas for improvement.

Characteristics of Tools for Managing Talent:

  • Customizable:

Effective tools for managing talent are customizable to meet the specific needs of the organization. Organizations should be able to tailor the tools to their unique culture, business objectives, and talent management goals.

  • User-friendly:

Talent Management tools should be user-friendly and intuitive, making them easy for employees and managers to use. This can help ensure that the tools are adopted and used effectively across the organization.

  • Data-driven:

Talent Management tools should be data-driven, providing organizations with insights and analytics that can help them make informed decisions about talent management. This can include data related to employee performance, engagement, retention, and development.

  • Comprehensive:

Effective Talent Management tools should be comprehensive, covering a range of talent management processes and strategies. This can include performance management, succession planning, career development, and talent acquisition.

  • Integrated:

Talent management tools should be integrated with other systems and tools used by the organization, such as HR information systems, learning management systems, and payroll systems. This can help ensure that data is accurate and up-to-date, and that talent management processes are streamlined and efficient.

  • Agile:

Effective Talent Management tools should be agile, able to adapt to changing business needs and talent management trends. This can help ensure that the organization remains competitive and is able to attract and retain top talent.

Benefits of using tools for Managing Talent:

  • Improved Retention:

Effective talent management tools can help organizations identify and retain top performers, reducing turnover and the associated costs of hiring and training new employees.

  • Increased Productivity:

Talent management tools can help organizations optimize employee performance by providing feedback, coaching, and development opportunities that help employees reach their full potential.

  • Enhanced Agility:

Talent management tools can help organizations quickly adapt to changing business needs by ensuring they have the right talent in the right roles at the right time.

  • Improved Decision-making:

Talent management tools provide organizations with data and insights that can help them make informed decisions about talent management, such as identifying high-potential employees and developing succession plans.

  • Strengthened Employer brand:

Effective talent management tools can help organizations promote their employer brand by showcasing their commitment to employee development and career growth.

  • Increased Employee Engagement:

Talent management tools can help employees feel more engaged and invested in their work by providing them with development opportunities and a clear path for career advancement.

  • Improved Diversity and Inclusion:

Talent management tools can help organizations identify and develop diverse talent, promoting a more inclusive and equitable workplace.

Terms of Reference and Accountability and Performance Appraisals of committee

Terms of reference (TOR) define the purpose and structures of a project, committee, meeting, negotiation, or any similar collection of people who have agreed to work together to accomplish a shared goal.

Terms of reference show how the object in question will be defined, developed, and verified. They should also provide a documented basis for making future decisions and for confirming or developing a common understanding of the scope among stakeholders. In order to meet these criteria, success factors/risks and constraints are fundamental. They define the:

  • Vision, objectives, scope and deliverables (i.e. What has to be achieved)
  • Stakeholders, roles and responsibilities (i.e. Who will take part in it)
  • Resource, financial and quality plans (i.e. How it will be achieved)
  • Work breakdown structure and schedule (i.e. when it will be achieved)

TORs should include:

Success factors, risks and constraints.

Although the terms of reference of a project are sometimes referred to as the project charter, there are significant differences between the two. This article describes a TOR containing detailed definitions, while a project charter has high-level requirements, assumptions, constraints and descriptions as well as a budget summary without detail, and a milestone-only schedule.

Project life-cycle

The terms of reference are created during the earlier stages of project management by the founders of the project in question, immediately after the approval of a project business case. They are documented by the project manager and presented to the project sponsor or sponsors for approval. Once the terms have been approved, the members of the project team have a clear definition of the scope of the project. They will then be ready to progress with implementing the remaining project deliverables.

This phrase “terms of reference” often refers to the tasks assigned to a consultant or adviser. Such a consultant or adviser may be engaged via a contract with general terms of engagement that also incorporate the terms of reference that specifically describe the consultant’s task.

Accountability of committee

Volunteers become members of a committee in various ways, most by appointment by the President-elect, some by Council election, and some by statute. Regardless of how one becomes a member of a committee, there are some responsibilities and duties all members have in common.

The first and foremost responsibility of a committee member is to try to attend all meetings. After appointment to a committee, it is important for each new member to become familiar with the charge, history, current agenda, and the other members of the committee. In this Guide there are a number of links to committee annual reports and current committee members for all standing committees. Each committee has an administrator and a senior staff liaison. If you have any questions, feel free to contact either of these people.

The location of committee meetings is determined by the Chair with input from the committee. Most committees meet at the Headquarters in College where excellent facilities exist. Meeting attendance is important and meetings are scheduled in advance to accommodate members’ schedule. Despite our best efforts to find a date and time convenient for everyone, it is sometimes impossible. In this case, it is often possible to arrange for a committee member to participate in the meeting via conference call.

Generally, the committee administrator will work with the committee chair to prepare and distribute an agenda and supporting material a week or two before a scheduled meeting. Committee meetings are much more productive when committee members read the agenda briefing material before the meeting.

Performance Appraisals of committee

The key benefits derived from board/committee-level reviews include:

  1. An objective assessment of common issues for boards such as leadership, relationships, size and tenure. This also provides an insight into the engagement of each director with the organisation and the dynamic environment in which it operates.
  2. Helping to set the board/committee’s culture and build cohesion that flows through the organisation.
  3. Keeping the board/committee in step with organisational needs through renewal and training.
  4. Identifying excellence in current practices and letting directors and board/committee members provide honest feedback through an independent party.

This all leads to continuous improvement of board and committee practices and better outcomes from their interactions. A high-functioning board or management committee provides a solid grounding for effective decision-making and better manages strategic risks. It also delivers opportunities to identify improvements that will lead to enhanced organisational performance that creates greater business value.

Legislative Provisions of Corporate Governance in Companies Act 1956

Provisions of the Act

Article 3 of the act describes the definition of a company, the types of companies that can be formed e.g. public, private, holding, subsidiary, limited by shares, unlimited etc. Further on in Article 10 E it explains about the constitution of board of company, it explains the companies’ name, the jurisdictions, tribunals, memorandums and the changes that can be made. Article 26 and further on explains about the article of association of the company which a very important part when forming a company and various amendments that can be made. Article 53 to 123,it explains about the shares, the shareholders their rights, it explains about debentures, share capital, their procedure and powers within the company. Article 146 to 251 it explains about the management and administration of the company and the provisions registered office and name. Article 252 to 323 elaborates on the provisions of duties, powers responsibility and liability of the directors in the company which is a very integral part of the company when it is formed. Article 391 to 409 explains about the arbitration, the prevention and obsession of the company Article 425 to 560 it explains the procedure of winding up of a company, the preventions the rights of shareholders, creditors, methods of liquidations, compensation provided and ways of winding up the company. Article 591 and further on explains about setting up companies outside India and their fees and registration procedure and all.

An overview of Companies Act 1956

Companies Act 1956 explains about the whole procedure of the how to form a company, its fees procedure, name, constitution, its members, and the motive behind the company, its share capital, about its general board meetings, management and administration of the company including an important part which is the directors as they are the decision makers and they take all the important decisions for the company their main responsibility and liabilities about the company matter the most. The Act explains about the winding of the business as well and what happens in detail during liquidation period.

Company objective and legal procedure based on the Act

The basic objectives underlying the law are:

  • A minimum standard of good behaviour and business honesty in company promotion and management.
  • Due recognition of the legitimate interest of shareholders and creditors and of the duty of managements not to prejudice to jeopardize those interests.
  • Provision for greater and effective control over and voice in the management for shareholders.
  • A fair and true disclosure of the affairs of companies in their annual published balance sheet and profit and loss accounts.
  • Proper standard of accounting and auditing.
  • Recognition of the rights of shareholders to receive reasonable information and facilities for exercising an intelligent judgment with reference to the management.
  • A ceiling on the share of profits payable to managements as remuneration for services rendered.
  • A check on their transactions where there was a possibility of conflict of duty and interest.
  • A provision for investigation into the affairs of any company managed in a manner oppressive to minority of the shareholders or prejudicial to the interest of the company as a whole.
  • Enforcement of the performance of their duties by those engaged in the management of public companies or of private companies which are subsidiaries of public companies by providing sanctions in the case of breach and subjecting the latter also to the more restrictive provisions of law applicable to public companies.

Companies Act empowerment and mechanism

In India, the Companies Act, 1956, is the most important piece of legislation that empowers the Central Government to regulate the formation, financing, functioning and winding up of companies. The Act contains the mechanism regarding organizational, financial, and managerial, all the relevant aspects of a company. It empowers the Central Government to inspect the books of accounts of a company, to direct special audit, to order investigation into the affairs of a company and to launch prosecution for violation of the Act. These inspections are designed to find out whether the companies conduct their affairs in accordance with the provisions of the Act, whether any unfair practices prejudicial to the public interest are being resorted to by any company or a group of companies and to examine whether there is any mismanagement which may adversely affect any interest of the shareholders, creditors, employees and others. If an inspection discloses a prima facie case of fraud or cheating, action is initiated under provisions of the Companies Act or the same is referred to the Central Bureau of Investigation. The Companies Act, 1956 has been amended from time to time in response to the changing business environment.

Executive Management Process

Executive Corporate Processes are generic processes aiming at safeguarding that the organization is effectively and efficiently governed and managed at all levels and are collectively executed. They are herein distinguished from ‘Management Processes/Duties’, which aim at safeguarding that ‘Line Managers’ at all levels carry out in a balanced way all their ‘Managing Duties’ and from ‘Corporate Core and Support Processes’, which aim at realizing the Corporate Mission.

Analysing Development Needs:

In the first instance, once a decision is made to launch an executive development programme, a close and critical examination of the present and future developmental needs of the organisation is made. It becomes necessary to know how many and what type of managers are required to meet the present and future needs of the organisation.

This requires organisational planning. A critical examination of the organisation structure in the light of the future plans of the organisation reveals what the organisation needs in terms of departments, functions and executive positions.

After getting the information, it will be easy to prepare the descriptions and specifications for different executive positions, which in turn gives information relating to the type of education, experience, training, special knowledge, skills and personal traits for each position.

By comparing the existing talents including those to be developed from within with those which are required to meet the projected needs enables the management to make a policy decision as to whether it wants to fill these positions from within or from outside sources.

Appraisal of Present Management Needs:

For the purpose of making above mentioned comparison, a qualitative assessment the existing executives will be made to determine the type of executive talent available within the organisation and an estimate of their potential for development is also added to that. Then comparison is made between the available executive talent and the projected required talent.

Inventory of Executive Manpower:

An inventory is prepared to have complete information about each executive. For each executive, a separate card or file is maintained to record therein such data as name, age, length of service, education, experience, health, test results, training courses completed, psychological test results, performance appraisal results etc.

An analysis of such information will reveal the strengths and weaknesses of each executive in certain functions relative to the future needs of the organisation.

Planning Individual Development Programmes:

Guided by the results of the performance appraisal which reveal the strengths and weaknesses of each executive, the management is required to prepare planning of individual development programmes for each executive. According to Dale S. Beach, “Each one of us has a unique set of physical, intellectual, emotional characteristics. Therefore, a development plan should be tailor-made for each individual”.

“It would be possible to impart knowledge and skills and mould behaviour of human beings, but it would be difficult to change the basic personality and temperament of a person once he reaches adult-hood stage”.

Establishing Training and Development Programmes:

It is the responsibility of the personnel or human resource department to prepare comprehensive and well-conceived development programmes. It is also required to identify existing levels of skills, knowledge etc. of various executives and compare them with their respective job requirements.

It is also required to identify development needs and establish specific development programmes in the fields of leadership, decision-making, human relations etc. But it may not be in a position to organise development programmes for the executives at the top level as could be organised by reputed institutes of management.

In such circumstances, the management deputes certain executives to the development programmes organised by the reputed institutes of management.

Further, the personnel or human resource department should go on recommending specific executive development programmes based on the latest changes and development in the management education.

Evaluating Development Programmes:

Since executive development programmes involve huge expenditure in terms of money, time and efforts, the top management of the organisation is naturally interested to know to what extent the programme objectives have been fulfilled. Such programme evaluation will reveal the relevance of the development programmes and the changes that have been effected by such programmes.

If the objectives of the programme have been achieved, the programme is said to be successful. But it is difficult to measure the changes or effects against the pre-determined objectives.

While the effect of certain programmes can be noticed only in the long-run in a more general way, the effect of certain other programmes may be noticed in the short-run in a specific way. Grievance reduction, cost reduction, improved productivity, improved quality etc. can be used to evaluate the effects of development programmes.

Factors Influencing the Executive Development Processes in Organizations

  1. Failure to train the managers will lead to ineffective and inefficient managers who negatively affect the organization’s performance.
  2. In the absence of training and developmental avenues, the performing managers may get de-motivated and frustrated in leading the organizations. This would lead to severe losses for the organization in financial parameters, in terms of the cost of recruiting and training the new incumbent.
  3. The organizational performance may be affected by the loss of market shares, lower sales, reduced profitability, etc.
  4. The absence/shortage of trained and skilled managers makes it important for the organizations to have appropriate retention strategies. Training and development is being used by organizations as a part of their retention strategy.
  5. The competitive pressures make it necessary for organizations to continuously roll out new products and services, and also maintain the quality of the existing ones. The training and development of managers would help them in developing the competencies in these areas.
  6. The competitive environment is making it imperative for the organizations to continuously restructure and re-engineer, and to embark upon these processes, it is essential for the organizations to train the managers for the new scenarios.

Executive Development and E-learning:

The IT environment has, in a way, created challenges and also opportunities for organizations. The challenges include the rapid pace of changes, and on the opportunities front, it has provided the following advantages-

  • Knowledge management has become easy for implementation. In the traditional environment, sharing of intellectual resources and knowledge was a herculean task. Organizations had to prepare, print, and mail the circulars across the organization for the dissemination of information, which frequently led to the obsoleteness of information by the time the employees, because of the time gap, received it.

Further, it was tough for the organiza­tions to come up with strategies to continuously collect, update, and dissem­inate the information.

  • Knowledge management has provided various forums such as Intranets, on-line discussion forums, expert panels, etc.
  • E-learning has made learning easy, irrespective of the time and distance factors, e-learning has led to the empowerment of employees, since the employers are now able to decide upon the pace and content of learning, depending on their requirements.

The above developments have affected the executive development process in a significant way and have helped in transforming the brick-and-mortar learning scenario to an e-learning scenario.

Important Methods of Executive Development: On the Job Techniques and Off the Job Techniques

The methods of executive development are broadly classified into two broad categories:

  1. On the Job Techniques.
  2. Off the Job Techniques.

  1. On the Job Techniques:

On the job development of the managerial personnel is the most common form which involves learning while performing the work. On the job techniques are most useful when the objective is to improve on the job behaviour of the executives. This type of training is inexpensive and also less time consuming. The trainee without artificial support can size up his subordinates and demonstrate his leadership qualities.

The following methods are used under on the job training:

(i) Coaching:

In this method the immediate superior guides and instructs his subordinates as a coach. It is learning through on the job experience because a manager can learn when he is put on a specific job. The immediate superior briefs the trainees what is expected from them and guides them how to effectively achieve them. The coach or immediate superior watches the performance of their trainees and directs them in correcting their mistakes.

Advantages of the Coaching Method:

(a) It is the process of learning by doing.

(b) Even if no executive development programme exists, the executives can coach their subordinates.

(c) Coaching facilitates periodic feedback and evaluation.

(d) Coaching is very useful for developing operative skill and for the orientation of the new executives.

Disadvantages of the Coaching Method:

(a) It requires that the superior should be a good teacher and the guide.

(b) Training atmosphere is not free from the problems and worries of the daily routine.

(c) Trainee may not get sufficient time for making mistakes and learn from the experience.

(ii) Under Study:

The person who is designated as the heir apparent is known as an understudy. In this method the trainee is prepared for performing the work or filling the position of his superior. Therefore a fully trained person becomes capable to replace his superior during his long absence, illness, retirement, transfer, promotion, or death.

Advantages of Under Study Method:

(a) Continuous guidance is received by the trainee from his superior and gets the opportunity to see the total job.

(b) It is a time saving and a practical process.

(c) The superior and the subordinate come close to each other.

(d) Continuity is maintained when superior leaves his position.

Disadvantages of Under Study Method:

(a) The existing managerial practices are perpetuated in this method.

(b) The motivation of the personnel is affected as one subordinate is selected for the higher position in advance.

(c) The subordinate staff may ignore the under study.

(iii) Job Rotation:

Job rotation is a method of development which involves the movement of the manager from one position to another on the planned basis. This movement from one job to another is done according to the rotation schedule. It is also called position rotation.

Advantages of Job Rotation:

(a) By providing variety in work this method helps in reducing the monotony and the boredom.

(b) Inter departmental coordination and cooperation is enhanced through this method.

(c) By developing themselves into generalists, executives get a chance to move up to higher positions.

(d) Each executive’s skills are best utilized.

Disadvantages of Job Rotation:

(a) Disturbance in established operations is caused due to the job rotation.

(b) It becomes difficult for the trainee executive to adjust himself to frequent moves.

(c) Job rotation may demotivate intelligent and aggressive trainees who seek specific responsibility in their chosen responsibility.

(iv) Special Projects Assignment:

In this method a trainee is assigned a project which is closely related to his job. Further sometimes the number of trainee executives is provided with the project assignment which is related to their functional area. This group of trainees is called the project team. The trainee studies the assigned problem and formulates the recommendations on it. These recommendations are submitted in the written form by the trainee to his superior.

Advantages of the Special Projects:

(a) The trainees learn the work procedures and techniques of budgeting.

(b) The trainees come to know the relationship between the accounts and other departments.

(c) It is a flexible training device due to temporary nature of assignments.

(v) Committee Assignment:

In this method the special committee is constituted and is assigned the problem to discuss and to provide the recommendations. This method is similar to the special project assignment. All the trainees participate in the deliberations of the committee. Trainees get acquainted with different viewpoints and alternative methods of problem solving through the deliberations and discussions in the committee. Interpersonal skills of the trainees are also developed.

(vi) Multiple Management:

This method involves the constitution of the junior board of the young executives. This junior board evaluates the major problems and makes the recommendations to the Board of Directors. The junior board learns the decision making skills and the vacancies in the Board of Directors are filled from the members of the junior board who have sufficient exposure to the problem solving.

(vii) Selective Readings:

Under this method the executives read the journal, books, article, magazines, and notes and exchange the news with others. This is done under the planned reading programmes organized by some companies. Reading of the current management literature helps to avoid obsolescence. This method keeps the manager updated with the new developments in the field.

  1. Off the Job Training Programme:

The main methods under off the job training programme are:

(i) Special Courses:

Under this method the executives attend the special courses organized by the organisation with the help of the experts from the education field. The employers also sponsor their executives to attend the courses organized by the management institutes. This method is becoming more popular these days but it is more used by the large and big corporate organisations.

(ii) Case Studies:

This method was developed by Harvard Law professor Christopher C. Langdell. In this method a problem or case is presented in writing to a group i.e. a real or hypothetical problem demanding solution is presented in writing to the trainees.

Trainees are required to analyze and study the problem, evaluate and suggest the alternative courses of action and choose the most appropriate solution. Therefore in this method the trainees are provided with the opportunity to apply their skills in the solution of the realistic problems.

(iii) Role Playing:

In role playing the conflicting situation is created and two or more trainees are assigned different roles to play on the spot. They are provided with the written or oral description of the situation and roles to play. The trainees are then provided with the sufficient time, they have to perform their assigned roles spontaneously before the class. This technique is generally used for human relations and the leadership training. This method is used as a supplement to other methods.

(iv) Lectures and Conferences:

In this method the efforts are made to expose the participants to concepts, basic principles, and theories in any particular area. Lecture method emphasizes on the one way communication and conference method emphasizes on two way communication. Through this method the trainee actively participates and his interest is maintained.

(v) Syndicate Method:

Syndicate refers to the group of trainees and involves the analysis of the problem by different groups. Thus in this method, 5 or 6 groups consisting of 10 members are formed. Each group works on the problem on the basis of the briefs and the backgrounds provided by the resource persons. Each group presents their view on the involved issues along with the other groups.

After the presentation these views are evaluated by the resource persons along with the group members. Such exercise is repeated to help the members to look into the right perspective of the problem. This method helps in the development of the analytical and the interpersonal skills of the managers.

(vi) Management Games:

A management game is a classroom exercise, in which teams of students compete against each other to achieve certain common objectives. Since, the trainees are often divided into teams as competing companies; experience is obtained in team work. In development programmes, the management games are used with varying degrees of success. These games are the representatives of the real life situations.

(vii) Brainstorming:

It is a technique to stimulate idea generation for decision making. Brainstorming is concerned with using the brain for storming the problem. It is a conference techniques by which group of people attempt to find the solution for a specific problem by amazing all the ideas spontaneously contributed by the members of the group. In this technique the group of 10 to 15 members is constituted. The members are expected to put their ideas for problem solution without taking into consideration any type of limitations.

Duties and Responsibilities of Stores Manager

Management of employees:

Managing employees is the foremost duty of a retail manager. This includes the management of store’s employees working at various levels such as sales staff, store staff, cleaning staff and clerical staff.

Maintaining the sales environment:

It involves implementation of store layout plans, displaying merchandise, replenishment/refilling of stock, visual merchandising task and maintaining the sales record effectively.

Cost minimization:

It involves controlling expenses that are essential to run a store. By way of applying cost effective policies, expenses can be reduced resulting in increased profitability. It is possible by elimination of waste, errors and accidents. This task of minimizing cost becomes necessary when store is running on low price policy, like in case of Wall Mart stores where EDLP (every day low prices) policy is being applied.

Recruitment, Training and Development:

The very first duty of any retail store manager is to handle the job of recruiting the right persons at right jobs. Then train and adjust them according to the store’s policies and working environment. If they need any training, they must be provided in or outside the store. These new entrants are those who make the store either an achievement or can mar the whole business.

Therefore, retail manager should ensure that be it cashier, or sales executive or store keeper, they should be hired after considering their minimum qualification and experience in the concerned field. If after recruiting, training and development, still these employees are not performing well after several warnings, they must be fired from the store.

In addition to these duties, store manager must ensure that all the employees at different level are honestly doing their duties and are not creating any problem for store or other employees.

If any retail manger, employee or group of employees are lacking in some managerial skill/know how, he/they must be provided with proper training, as trained employees work fast and in more effective way. Also it is the working staff that ultimately put policies/store’s objectives into action.

Budgeting and Forecasting:

The store manager is more suitable for predicting the store’s future performance, calculating future expenses and accordingly setting budgets. Explaining the set targets and the funds available to departmental heads and collecting their performance at regular interval comes under implementation of retail strategy.

Implementing Marketing plans:

This involves implementation of marketing policies devised in order to pursue store’s strategic marketing objectives. For example, to allocate space for sales promotion activities, inspecting effectiveness of sales distribution programs etc.

Team Leadership:

The store manager also has the task of motivating his employees and reducing any resistance to change in working methods that may be required when new strategic directions are set. Retail manager ensures that his all employees should work like a team, leaving any personal grudge.

Maintaining Leave and Salary Record:

Another important job of a retail store manager is to have the proper balance and written record of the money comes in the store by way of selling the goods. He is also responsible for keeping the whole record of all the employees with regard to their working hours, no of days worked by each and every employee.

He will take care that each employee is getting the salary according to the number of days and hours served them for the store so that there should not be any partiality with any type of store employee. He will oversee that the provisions related to casual or earned leaves (if any) are applicable to all employees.

The necessity of proper and updated records (both sales and purchase) is that it helps in estimating the money which has come in to the store by way of selling goods or providing services to customers and gone out of the store by way of bills and salary payments to employees.

Holding Inventory:

Inventory control is another important activity performed by a retail manager. To ensure regular availability of inventory in the store, retail manager maintains appropriate level of inventory all the time in the store. Since a store’s earning is through selling of goods, it becomes the duty of a sales manager to have the full record of incoming and outgoing inventory.

So that there should not be any shortage of inventory in the store and side by side there may not excess of a particular good which results in unnecessary blockage of money and also needs storage area. Normally in the small Indian cities, most of the retail managers have practice of keeping the inventory with the nearby godowns to avoid any shortage.

The reason is that these cities are not well connected with rail or road networks. But on the other side, retailers in the metros or developed cities avail of just-in-time deliveries with the help of efficient customer response systems, which reduce the practice of having huge inventories in stock all the times. In addition to maintaining appropriate level of inventory, he should make sure that payment has been made for the supplies/ordered goods.

Extending Customer Services:

The retail sales manager being on the senior position is responsible for providing multiple services to immediate customers and the other members of his retail value chain. These services differ from store to store and location to location. Some of the services familiar to all stores are (a) credit facility, (b) free home delivery, (c) after-sale service, and (d) trade discount to bulk buyers or small traders and information and new offers to its regular and loyal customers.

For instance, the Titan watch company in India set up its service centers in its own retail chain stores of Titan wrist watches with the name of Time Zone. This has not only thinned the importance of local and unorganized service providers but has also increased the confidence of the retail customers in these chain stores considering after sales service an integral part of watch purchase.

Maintaining Store Harmony:

The retail manager is also responsible for maintaining harmony among different levels of store staff. He ensures that the floor staff is cooperative and has corporate spirit of team work. Store harmony not only includes the good relation between different types of employees but also involves relation between store management and its employees, between public and store, between public and store’s employees, store and the government, and also between various stores.

Ensuring Safety of Employees and Inventory:

Since the retail store manager is supposed to be present physically on the store’s premise on daily basis, is the suitable individual to ensure the safety of the store including the safety of employees and inventory. He is the appropriate person to inform the corporate office how his store is doing and where and when the changes are needed to introduce in the store.

Store manager ensures that all the safety provisions with regard to requirement of local authorities like municipal corporation, state and central government are duly met. These safety provisions relate to installation of firefighting systems and provision of emergency exits etc.

In nutshell, a retail store manager is responsible for day-to-day activities of the retail store. He undertakes various activities and performs functions that add value to the offerings they make to their potential customers. The retail store manager also serves the manufacturer by performing the function of distributing the goods to the ultimate consumers. For several goods where brand loyalty is not very strong, the retail store manager’s recommendation could be very vital in buying decisions of the customers.

Trend analysis

Trend analysis is a technique used in technical analysis that attempts to predict future stock price movements based on recently observed trend data. Trend analysis uses historical data, such as price movements and trade volume, to forecast the long-term direction of market sentiment.

Trend analysis tries to predict a trend, such as a bull market run, and ride that trend until data suggests a trend reversal, such as a bull-to-bear market. Trend analysis is helpful because moving with trends, and not against them, will lead to profit for an investor. It is based on the idea that what has happened in the past gives traders an idea of what will happen in the future. There are three main types of trends: short-, intermediate- and long-term.

A trend is a general direction the market is taking during a specified period of time. Trends can be both upward and downward, relating to bullish and bearish markets, respectively. While there is no specified minimum amount of time required for a direction to be considered a trend, the longer the direction is maintained, the more notable the trend.

Trend analysis is the process of looking at current trends in order to predict future ones and is considered a form of comparative analysis. This can include attempting to determine whether a current market trend, such as gains in a particular market sector, is likely to continue, as well as whether a trend in one market area could result in a trend in another. Though a trend analysis may involve a large amount of data, there is no guarantee that the results will be correct.

In order to begin analyzing applicable data, it is necessary to first determine which market segment will be analyzed. For instance, you could focus on a particular industry, such as the automotive or pharmaceuticals sector, as well as a particular type of investment, such as the bond market.

Once the sector has been selected, it is possible to examine its general performance. This can include how the sector was affected by internal and external forces. For example, changes in a similar industry or the creation of a new governmental regulation would qualify as forces impacting the market. Analysts then take this data and attempt to predict the direction the market will take moving forward.

Critics of trend analysis, and technical trading in general, argue that markets are efficient, and already price in all available information. That means that history does not necessarily need to repeat itself and that the past does not predict the future. Adherents of fundamental analysis, for example, analyze the financial condition of companies using financial statements and economic models to predict future prices. For these types of investors, day-to-day stock movements follow a random walk that cannot be interpreted as patterns or trends.

Types of Trend

Uptrend

An uptrend or bull market is when financial markets and assets as with the broader economy-level move upward and keep increasing prices of the stock or the assets or even the size of the economy over the period. It is a booming time where jobs get created, the economy moves into a positive market, sentiments in the markets are favorable, and the investment cycle has started.

Downtrend

Companies shut down their operation or shrank the production due to a slump in sales. A downtrend or bear market is when financial markets and asset prices as with the broader economy-level move downward, and prices of the stock or the assets or even the size of the economy keep decreasing over time. Jobs are lost, asset prices start declining, sentiment in the market is not favorable for further investment, and investors run for the haven of the investment.

Sideways / horizontal Trend

A sideways/horizontal trend means asset prices or share prices as with the broader economy level are not moving in any direction; they are moving sideways, up for some time, then down for some time. The direction of the trend cannot be decided. It is the trend where investors are worried about their investment, and the government is trying to push the economy in an uptrend. Generally, the sideways or horizontal trend is considered risky because when sentiments will be turned against cannot be predicted; hence investors try to keep away in such a situation.

Uses:

Use in Technical Analysis

An investor can create his trend line from the historical stock prices, and he can use this information to predict the future movement of the stock price. The trend can be associated with the given information. Cause and effect relationships must be studied before concluding the trend analysis.

Use in Accounting

Sales and cost information of the organization’s profit and loss statement can be arranged on a horizontal line for multiple periods and examine trends and data inconsistencies. For instance, take the example of a sudden spike in the expenses in a particular quarter followed by a sharp decline in the next period, which is an indicator of expenses booked twice in the first quarter. Thus, the trend analysis in accounting is essential for examining the financial statements for inaccuracies to see whether certain heads should be adjusted before the conclusion is drawn from the financial statements.

Importance of Trend Analysis

  • The trend is the best friend of the traders is a well-known quote in the market. Trend analysis tries to find a trend like a bull market run and profit from that trend unless and until data shows a trend reversal can happen, such as a bull to bear market. It is most helpful for the traders because moving with trends and not going against them will make a profit for an investor.
  • Trends can be both growing and decreasing, relating to bearish and bullish market
  • A trend is nothing but the general direction the market is heading during a specific period. There are no criteria to decide how much time is required to determine the trend; generally, the longer the direction, the more is reliably considered. Based on the experience and some empirical analysis, some indicators are designed, and standard time is kept for such indicators like 14 days moving average, 50 days moving average, and 200 days moving average.
  • While no specified minimum amount of time is required for a direction to be considered a trend, the longer the direction is maintained, the more notable the trend.
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