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Talent acquisition due diligence leading to high employee engagement: case of Motorola India MDB

Pallavi Srivastava and Jyotsna Bhatnagar

Pallavi Srivastava is a Doctoral Candidate (HRM) and Jyotsna Bhatnagar is Associate Professor (HRD), both based at the Management Development Institute, Gurgaon, India.

Abstract Purpose With talent management becoming an area of growing concern, there is a need for practicing due diligence in their talent acquisition strategy. To meet the demands for talent with a specic skill set in a given timeline, the organizations are adopting innovative recruitment practices to nd the correct skill sets and competencies. The purpose of this paper is to discuss some of these practices and also to investigate talent acquisition and its relationship to levels of employee engagement. Design/methodology/approach The investigation is carried out with the aid of a case study on Motorola India- Mobile Devices Business. Findings By reecting recruitment and culture need t, an environment is created at the workplace where employees feel more passionate about their work and exhibit the behaviours that organizations need to drive better results. Research limitations/implications This is a qualitative study which could be further enriched by empirically measuring person-organization t and its impact on the level of engagement. Practical implications It is suggested that organizations should make efforts to build effective, practical and holistic talent strategies that are not only able to attract talent but also address employee engagement and the retention of key skills thus boosting the productivity and business performance. During talent acquisition, due diligence is required in assessing the person-organization t and providing an enabling work environment to keep the talent anchored to the organization. Originality/value The paper highlights the impact of due diligence in talent acquisition, which is the most crucial problem faced by the organizations in the present times, by means of a case study. Keywords Due diligence, Recruitment, Employees, Job satisfaction, Telecommunications, India Paper type Case study

Introduction
Markets are increasingly recognizing human capital as a source of value for rms and shareholders (Cairncross, 2000) as talent is rare, valuable, difcult and hard to substitute and organizations that better attract, select and retain this talent outperform those that do not (Barney and Wright, 1998). Technological advances and global competition are the main drivers of changes in employment patterns leading to intense competition between employers to attract and retain talented workers (Osborn-Jones, 2001). Stafng acts as a key strategic opportunity to gain competitive advantage (Ployhart, 2006). Today an organizations success is directly linked to the talent it can recruit. Recruitment is critical not only for sustained competitive advantage but also for basic organizational survival (Taylor and Collins, 2000). Competition and the lack of availability of highly talented and skilled employees make nding and retaining talented employees a major priority for organizations (Flegley, 2006). In the networked global economy, top talent is highly mobile. Talent is scarce resulting in a tight labour market hence it has numerous choices especially in knowledge based and

This paper was presented at the Asia Pacic Researchers in Organizational Studies (APROS) 12 Conference, December 9-12, 2007 at Management Development Institute, MDI Gurgaon, India.

DOI 10.1108/00197850810886496

VOL. 40 NO. 5 2008, pp. 253-260, Q Emerald Group Publishing Limited, ISSN 0019-7858

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Technological advances and global competition are the main drivers of changes in employment patterns.

service driven organizations. Organizations are facing great competition in chasing the same skill set. Organizations in the USA reect a continuing trend towards modest increases in in-house knowledge intensive IT staffs at most organizations . . . but in most large and Fortune 500 organizations expect to moderately increase stafng levels by 2008. Most SMEs anticipate dramatic increases in hiring (Zwieg et al., 2006, p. 102). According to a survey based on 33,000 employers from 23 countries, 40 per cent of them had difculty in nding and hiring the desired talent (Manpower Inc., 2006) and approximately 90 per cent of nearly 7,000 managers indicated talent acquisition and retention were becoming more difcult (Axelrod et al., 2001). Therefore they are putting all their strength towards nding the right talent with specic skill sets and competencies, hiring it at any cost and retaining only those whom they want. It is crucial for all companies to develop a talent strategy that goes deep into the organization and is able to supply the talent to meet a changing business climate. It is important to recognize that hiring is not simply a single decision made by the hiring manager but a system; one that comprises denite stages. Decisions are made at each stage, starting with the creation of the position requirements through the presentation of the nal slate of candidates and the ultimate hire.

Talent acquisition
The war for talent has focused on acquiring and assimilating the best. Human resources play a signicant role in reaching organization effectiveness and performance (Huselid, 1995). Talent has become the key differentiator for human capital management and for leveraging competitive advantage (Bhatnagar, 004). With better talent acquisition, employee engagement improves and so does the productivity. Maximizing team engagement, motivation, and retention through due diligence in talent acquisition is vital in todays highly competitive environment. Only a talent resourcing process, that is well-dened and well-executed from start to nish yields consistent, compliant results and is a competitive advantage in the war for talent (Ronn, 2007). With talent acquisition becoming an area of growing concern in the literature, this paper investigates talent management and its relationship to levels of employee engagement through the lens of a case study. Employee engagement is an indicator of high productivity and employee retention as reected in extant literature.

Human capital stafng strategy


The investments in human capital have been drawn on human capital theories which examine under which condition such investments are protable. The concept of human capital theory as specied by Romer (1990) denes it as the amount of total stock of human capital that an organization, country or economy has. Fitz-enz (2000) denes human capital as the traits one brings to the job: intelligence, fullling work energy, a generally positive attitude, reliability and commitment. The economy with a larger stock of human capital will experience a faster rate of growth. Thus, Human Capital Theory concentrates on the direct economic effects of human capital investments in particular. Stafng is dened as the process of attracting, selecting, and retaining competent individuals to achieve organizational goals (Ployhart, 2006). This has been also reected in extant SHRM literature. For example, researchers like Dewar and Werbel (1979) have adopted a universalistic perspective and have argued for a best practice approach to SHRM (Huselid, 1993, 1995; Pfeffer, 1994). While advocators of the contingency approach (Schuler and Jackson, 1987) believe that in order to be successful, the organizations HR policies must be consistent with the other aspects of the organization. Baird and Meshoulam

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(1988) suggest that HR practices must t the organizations stage of development (external t) which implies informal, more exible styles of HRM amongst start-up rms and more formal and professionalized systems as the rms mature and increase the number and range of employees. Internal t ensures that individual HR policies are designed to t in and support each other. Best-t model suggests that HR strategy becomes more effective when it is designed to t certain critical contingencies in the rms specic context. According to the congurational approach, the HR system of the organization must develop a horizontal (internal consistency of the organizations HR policies or practices) as well as a vertical t (congruence of the HR system with other organizational characteristics) (Wright and McMahan, 1992). Johnson (2001) states that if people are culturally aligned to the business, hire them before someone else does even if the rm does not have a job for them. A proactive approach helps. Michaels et al. (2001) propose the development and communication of the employee value proposition (EVP) to attract and retain talented employees. In cultivating a high performance workforce, both assessment of employees to ensure the best match to the job and the company as well as assimilating them to ensure successful integration into the workplace, the culture of the organization and specic roles and responsibilities are equally important (Morgan, 2004).

Innovative practices in employer branding for talent acquisition


Employer branding has become a key strategy (Brewster et al., 2005) to attract and retain the right kind of talent as people want to work for great brands. It avoids mismatches between employer and employees that lead to job changes. According to Knox and Freeman (2006) consumers are potential recruits and the employer brand is the augmentation of recruitment services provided by recruiters as they espouse the rms attributes and values during the recruitment process. The employer brand image is the image associated with an organization uniquely in its role as an employer. Creating a positive employer image radiates to the community at large and attracts potential job applicants. Improving the external and internal communication, signals to the potential talent about the total employee experience there. The word of mouth publicity is most effective way of recruiting. Fortunes Best Companies to Work For survey suggests that developmentally oriented organizations are more likely to be seen as attractive employers (Fortune, 2005). Providing the employees with the knowledge and skills to do their job and further recognizing and rewarding the knowledge and hard work of the employees, providing a safe and stable work environment, giving them opportunity to be creative and entrepreneurial are important tasks done by a company to retain employees. By giving them an environment where they do not have to worry about job security, they get more time and energy to concentrate on the important aspect of the organization. The organizations are using different baits to target the talent. Bhatnagar (2003) has mentioned amenities like golf courses, swimming pools, aerobics centres, gymnasiums etc. and the practices of paid sabbaticals, to sending its employees to leading international management programmes, representatives of the organization visiting employees homes and inviting them to the workplace to get a feel of about what employees do at work. It builds a sense of pride and belonging-ness to the families. Networking is also a preferred method of recruiting top job candidates today. Organizations encourage their employees to bring their acquaintances to join their organization. It serves a dual purpose. First, the employees better know about the requirements of their organization and second it promotes teamwork. Organizations also use a combination of tests and personality proling for the selection of candidates.

Employee engagement
The attributes of the job/organization and t with the job/organization inuences intentions and behaviour (Ployhart, 2006) through employee engagement. The best indicator of a companys health (Business Week advice column), in the words of former GE Chairman and CEO Jack Welch is:

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Employees feel engaged when they nd personal meaning and motivation in their work, receive positive interpersonal support, and function in an efcient work environment.

Employee engagement rst. It goes without saying that no company, small or large, can win over the long run without energized employees who believe in the mission and understand how to achieve it (Bhatnagar, 2008).

According to researchers (Martel, 2003), in order to obtain high performance in postindustrial, intangible work that demands innovation, exibility, and speed, employers need to engage their employees. Engagement requires attention to several critical activities: communication, supervisory relationships, empowerment, and performance management. Consequently, employee engagement has a substantial impact on employee productivity and talent retention (Bhatnagar, 2007). Employees feel engaged when they nd personal meaning and motivation in their work, receive positive interpersonal support, and function in an efcient work environment. There should not be a gap between what worker say what they want from the organization and what they actually get. This leads to disengagement. The work environment should be such that it enables them to put in their best efforts. It should not only be less intimidating to the new hires but also the condition of work should be appealing (Branham, 2005). Other facilities like exible work hours, work-life balance, paid holidays, buying lunches from restaurants, birthday celebrations, family days etc., also keeps, them rooted to the organization (Bhatnagar, 2003). Communication strategy is an important element in bringing transparency in the organization. By documenting their procedures manual, the different policies and processes the employees come to know what is expected of them and how they should do it. Similarly organizations consciously make an effort to meet the expectations of their talent pool. This leads to strengthening of the psychological contract and keeps them energized and secured. More training opportunities to hone their skills and a clearly dened career path, also lead to engagement and retention of the employees. If organizations maintain congruence between the rms internal and external image, the employees are able to live the brand and reinforce corporate values and expectations of performance among new and existing employees (Ind, 2001). By reecting recruitment and culture need t, an environment is created at the workplace where employees feel more passionate about their work and exhibit the behaviours that organizations need to drive better results. It gives them a continuous work experience that is difcult for competitors to replicate. (Bhatnagar, 2007). This is reected in the following case study based on the Mobile Devices Business of Motorola-India (Srivastava and Bhatnagar, 2008).

Case
Motorola is amongst the leading handset players in India with its ofce based at its headquarters in Gurgaon. It was one of the rst telecom companies to enter the country and started selling mobile phones here in 1995. In spite of being an early mover, it lost out to its rival Nokia due to an improper product portfolio, inefcient distribution system, lack of branding, improper market campaigns, non-focus on people management strategy and an ill-equipped team. Nokia had a better distribution system, a strong brand presence and also had a product portfolio customized for the Indian customers, leaving Motorola far behind it. According to Gartner India estimates, Motorolas market share kept on falling and was very low, just 1.8 per cent, in early 2005.

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When Ed Zander became the chairman and chief executive ofcer of Motorola Inc. in January 2004, he laid his focus on successfully reorganizing the company, introducing several exciting new products and on innovation and operational efciency. As the Indian telecom market was experiencing rapid growth, Zander sensed an opportunity. On 22 August, 2005, Zander established India as its headquarter for the high growth markets (HGM) which covers 107 countries across Africa, the Middle East, Indian sub-continent, South East Asia and Australia. This privilege was due to the countrys strategic importance to Motorolas global operations and the highest growth rate and potential. Strategy had to be developed to regain and then to rule the market. Speed of functioning embedded in the right kind of talent pool was felt pertinent. Pressure to perform was increasing. A core team was created to harness the India factor. Allen Burnes, Vice President, HGM, Mobile Devices, Motorola Inc. was appointed to head this turnaround. He came to India along with his team of senior Directors who had the experience of turning around a similar situation in the emerging markets of Russia. An entirely new team was created to handle the mobile devices division under the supervision of Motorolas emerging marketing expert Allen Burnes to bring a fresh perspective in implementation of the plans. The HR leader was to decide whether to build or to buy talent. Since speed was required and time was at a premium, it was decided to aggressively buy the right people. There was an aggressive out-of-the box buying of talent from all sectors including the lateral buy-ins. As an HR strategy they left out people from No.1 players in the corporate world. They looked for people who had worked in turnaround situations and had the experience of beating No.1 players. They poached employees who were hungry to face challenges and to perform. They hired people with technical competency who had the ability to ght back and had a passion and energy to work. According to Mr Raghuram Reddam, the HR Director for HGM and Mobile Devices Business, the culture t was an important criterion for talent acquisition. From a lean strength of just eight employees in 2005, the number rose to 75 employees who were ready to ght, were passionate, hungry and willing to perform. Excitement was very high and in order to build it further and sustain the energy of the recruits, their onboarding was done through Prarambh. It was customised to the Indian setting. The success stories of Indians like Padmashree Warrior, Mohan Kumar etc., who had done extremely well at Motorola India were narrated to them, to stoke the re to perform. In two interventions called Hai Dum-I and Hai Dum-II, and a boxing ring was organized.They brought in celebrity cricket commentator Harsha Bhogle to take this forward. The employees were challenged to perform and were encouraged to deliver results in performance at any cost. The Motorola culture and values were ingrained in them through the iMOTO campaign which introduced them to the qualities to be possessed by a Motorolan. These communication strategies succeeded in motivating them further. The HR team thought of innovative ways to recognize and energize the talent pool. Their strong focus was on implementing the HR vision and mission, on employee growth, happiness, involvement and high energy. The career prospects attracted employees to Motorola. Recognition for their efforts kept the employees further engaged and energised. The team was very lean with people having multiple accountability and multiple responsibilities but the trajectory of growth and challenges that kept them motivated and perform against deadlines The growth was happening exponentially. This achievement was so exciting that it kept the employees fully engaged. At Motorola, speed and delivery at any cost were to be honoured under any circumstances. Its enabling 24 7 culture supported by exi timing, telecommuting and fun at work helped the team to perform. The Bravo and on the spot recognition awards rewards that included cash prizes, certicates of merit and recognition from the General Manager onwards were given to star employees for their outstanding performance, outstanding behavioural and team competency during each quarter. Quarterly town hall meetings helped to communicate current and future business strategies and also recognize top talent.

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Towards the end of 2006, MDB established a Sales Academy to train and hone their skills, conducted three day workshops, carried out OD focussed functional interventions and diagnostic exercises with leaders to nd out the vision they had for their team, the various tools of engagement they need to employ, how they wanted the execution to happen. Reddam, challenged them and incited their direction setting, on vision, interaction, group dynamics, execution etc. The leadership team was taken away to Jaipurs Sumodh Palace for a three day vision building exercise and to nalise the business strategy for MDB. The organization Development diagnostics were probed into by a leading OD consultant of India. Soon, Motorola developed an innovative and rapidly expanding product portfolio. The marketing team of MBD was known as one of the best marketing teams in India. The sales team was adjudged as the Best Business Team in Motorola Global Mobile Devices Sales Conference. MDB also got the recognition for being the product champions, Best Brands etc. Until the beginning of 2005, brand Motorola was nowhere. By 2006 it was known among top ve brands in India. By the end of 2006 MDB reected a dramatic eight fold growth of about 14 per cent market share (www.mobilepundit.com/2006/11/29/motorola-has-14market-share-in-india/ (accessed 6 October, 2007). In the present circumstances, the star talent of Motorola is constantly eyed by the competitors. Now that the excitement of the turnaround is over, how to keep the acquired talent constantly engaged is the challenge. For, if the organization is not able to provide them with the challenges they are constantly looking for, they would be distracted towards their competitors. In a market where skill and right attitude is in low supply, retention is a major challenge for HR. For this purpose the whole organization is mapped to nd out the critical talent for MDB through a robust risk assessment model and a robust risk analysis format. Still the present dilemma before the HR at Motorola India-MDB is to keep on providing the challenges keeping in mind their hunger for challenges and to sustain their passion and energy. Some other issues like career planning and management and capability building of the employee also need attention.

Conclusion
The aim of the current study was to highlight the impact of due diligence in talent acquisition which is the most crucial problem faced by the organizations in the present times. The practices which are used innovatively by one company become tablestakes soon as they are followed by more or less every organization in the industry. But this is important for the organizations to keep their own goals and culture in mind, based upon which they should design their recruitment strategies. One strategy does not support every organization. The better is the recruitment-culture-need t, the higher would be the engagement and lesser will be the attrition. In fact it is also looking at the need to carry out employee branding (Berthon et al., 2005), where signalling theory may provide an important theoretical framework. Motorola went in for the employee brand for managing a business challenge and that is what made the difference. Very few academicians (Joo and Mclean, 2006) have looked into the theoretical and operational schemata of employee engagement. At the nomonological level, there seems to be a construct contamination from the elds of employee satisfaction, employee commitment, organizational citizenship behaviour, employee involvement (Bhatnagar, 2007).

Implications
We suggest that organizations should make efforts to build effective, practical and holistic talent strategies that are not only able to attract talent but also address employee engagement and the retention of key skills thus boosting the productivity and business performance. Resourcing the best candidates from a bigger talent pool rather than the available applicants would result in a more efcient talent acquisition. Organizations should not ignore that during talent acquisition the personal goals and values of the applicant should match that of the organization to make a better cuture-t. This would help in

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anchoring the employees to the organization and reduce attrition. Managers should strive to create an environment which induces passion among the employees about their work and leads to the behaviour that organizations need to drive better results. Organizations should follow the contingency approach as given in the SHRM literature in designing their human capital practices wherein it provides a unied context within which organizations operate, and at the same time, allows for differences at the national and/or organizational level, due to cultural and institutional factors like ownership structures, labour markets, the role of state and trade unions etc. (Brewster, 1999).

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Further reading
Mathew, J. (2007), The relationship of organizational culture with productivity and quality: a study of Indian software organisations, Employee Relations, Vol. 29 No. 6, pp. 677-95.

Corresponding author
Pallavi Srivastava can be contacted at: fpm06pallavi_s@mdi.ac.in.com

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