“TALENT MANEGEMENT AND ITS EFFECTIVENESS AT

NAYARA ENERGY LTD.”

A SIP Report Submitted to

DRS.KIRAN&PALLAVIPATELGLOBALUNIVERSITY
In Partial Fulfillment of the Requirements for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

IN HUMAN RESOURCE

Submitted By
Karmi Shobhasana

Enrollment No: 2308306012

Under the Guidance of

Ms. Kamaya Shah
Professor

SEPTEMBER 2024

FACULTY OF ENGINEERING &

TECHNOLOGYKRISHNASCHOOLOF EMERGING
TECHNOLOGY&APPLIED
RESEARCH (KSETMBA)
DRS.KIRAN&PALLAVIPATELGLOBALUNIVERSITY
Krishna Edu Campus, Vadodara-Mumbai NH#8,
Varnama, Vadodara391243, Gujarat, India.
 CERTIFICATE

This is to certify that work embodied in M.B.A SIP entitled “Talent Management and It’s
Effectiveness” was carried out by Mr./Ms. Karmi Shobhasana (Enrollment no
2303806012)studying at Krishna School of Business Management for partial fulfillment of
M.B.A. degree to be awarded by Drs. Kiran & Pallavi Patel Global University. This work
has been carried out under my guidance and supervision and it is up to my satisfaction.

Date:

Place: Varnama, Vadodara

Ms. Kamaya Shah Dr. Pinakin Jaiswal

Research Guide Director of School

2
COMPANY CERTIFICATE

3
 DECLARATION

I undersigned Karmi Shobhasana a student of MBA DRS. KIRAN & PALLAVI GLOBAL
UNIVERSITY, declare that summer internship project titled “Talent management and its
effectiveness” is a result of my own work and my indebtedness to other work publications ,
references, if any, have been duly acknowledged. If I found guilty of copying any other report
or published information and showing as my original work, I understand that I shall be liable
and punishable by Department/Institute/University, which may include ‘fail’ in examination,
‘repeat study & re-submission of the report’ or any other punishment that or University may
decide.

Name of Student: Karmi Shobhasana

Enrollment Number: 2302806012

Signature and Date:

4
 ACKNOWLEDGMENT

This is a great privilege to acknowledge each and every one who are associated with us while
Carrying out this study. We acknowledge each one of them for their support.
Firstly, we would like to thank our director DR.PINAKIN JAISWAL SIR,
DRS.KIRAN&PALLAVIGLOBALUNIERSITY for giving me the opportunity of this
project and I would also like to thank my faculty guide MS.KAMYA SHAH for his/her
guidance encouragement, support and generous help to make this support and generous help
to make this project work successful and support throughout the completion of this study. I
am equally thankful to my family and friends for their help and support for the successful
completion of this project.

Signature of Student:

Name: Karmee Shobhasana

Enrollment No.: 2308306012

5
 TALENT MANAGEMENT AND ITS EFFECTIVENESS

Submitted By
[Karmi Shobhasana]

Supervised By
[Vasant Chavada]
[NAYARA ENERGY HR]

ABSTRACT

In this Digital, competitive, and globalization era, just theoretical knowledge is not enough for
student; they should also have practical knowledge as well. So the summer internship is the
way by which student can fulfill the gap between practical and theoretical knowledge. The
summer internship is an essential part of MBA curriculum.

During the summer internship or vocational training period, student becomes familiar with the
practical aspect of the business world. Students can easily relate the theories to real- time
business scenarios.

My interest in Human Resource Management. For this summer internship, I have chosen
NAYARA ENERGY LTD., because it works on efforts made by a human who is directly and
indirectly connected with NAYARA ENERGY LTD.

Here at NAYARA ENERGY, I worked on the topic “Talent Management and its
effectiveness”. For that, I have decided to survey employee performance. During the research
and analysis of responses, my analytical and technical skills were improved using suitable
statistical tools (SPSS).

6
 EXECUTIVE SUMMARY

This report is a detailed overview of my internship journey at NAYARA ENERGY with the
objective to study “Talent Management in refinery”. This aimed at focusing on the company’s
operational and strategic processes. The internship’s primary goal was to apply academic
knowledge to real world scenarios, contributing to the company’s projects and gaining insights
into the oil and gas industry.

The inter ship at NAYARA ENERGY LTD. Provided a comprehensive understanding of talent
management in the energy sector. The experience underscored the importance of HR and talent
management. The insights gained and skills developed during this internship will be invaluable
in future professional endeavors.

This report covers the data about the organization’s profile, services being offered, the
hierarchy and organ gram of the organization, SWOT analysis, and so on.

I have tried my best to make the report meaningful by reflecting my works at NAYARA
ENERGY. And I also summarized my overall experience, with my learning and challenges
faced as an intern while working there.

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 Table of Contents
Chapter 1 - Introduction of the Oil and Gas Industry .......................................................... 11
1.1 Introduction of the chapter……………………………………………………………………..12
1.2 Introduction Overview………………………………………………………………………….12
1.3 Growth of Industry in India…………………………………………………………………….17
1.4 Critical success factors of oil and natural gas industry…………………………………………19
1.5 Product profile…………………………………………………………………………………..21
1.6 SWOT analysis of the Indian oil and natural gas industry……………………………………..25
1.7 PESTEL analysis of the oil and natural gas industry in India………………………………….26
1.8 Key issue in industry……………………………………………………………………………28
1.9 Future outlook of the oil and gas industry……………………………………………………...30
Chapter 2 - Company Overview……………………………………………………………...31
2.1 Introduction of the chapter……………………………………………………………………...32
2.2 Company overview……………………………………………………………………………..33
2.2.1 Business model…………………………………………………………………………………33
2.2.2 Vision…………………………………………………………………………………………...33
2.2.3 Mission…………………………………………………………………………………………34

2.2.4 SPIRIT of Nayara Energy LTD………………………………………………………………...35

2.3 History………………………………………………………………………………………….36
2.4 SWOT analysis of Nayara Energy Limited…………………………………………………….38
2. 5 Organizational structure of Nayara Energy Limited…………………………………………....39
2.6 Basic Human Resource functions at Nayara Energy Limited…………………………………..40
2.7 Recruitment process at Nayara Energy Limited………………………………………………..41
2.8 Major competitors of Nayara Energy Limited………………………………………………….42
2.9 Employee engagement of Nayara Energy Limited……………………………………………..43
Chapter 3 - Talent Management………………………………………………………….…..44
3.1 Introduction of the chapter………………………………………………………………….…..45

3.2 Talent Management………………………………………………………………………….….46

3.2.1 Talent management importance………………………………………………………………...47

3.2.2 Significance of talent management……………………………………………………………..48

3.3 Talent management process…………………………………………………………………….49

3.4 Talent management types……………………………………………………………………….52

3.5 Benefits of talent management………………………………………………………………….53

3.5.Benefits……………………………………………………………………………………………53

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3.5.2 Benefits for organization………………………………………………………………………..54

3.5.3 Benefits for employees………………………………………………………………………….54

3.6 Methodology of talent management……………………………………………………………55

3.7 Performance management………………………………………………………………………56

3.7.1 Objectives of performance management………………………………………………………..57

3.7.2 Objectives of performance management in managing talent…………………………………...58

3.7.3 Benefits of performance management………………………………………………………….59

3.8 Training and Development………………………………………………………………….…..60

3.8.1 Process of training and development…………………………………………………………...60

3.8.2 On the job training and off the job training……………………………..……………….……..61

3.9 Employee engagement……………………………………………………………………….…62

3.9.1 Employee engagement process…………………………………………………………………63

3.9.2 Ways to secure desirable employee engagement……………………………………………….65

3.9.3 Determinates of employee engagement………………………………………………………...66

3.10 Succession and career planning……………………………………………………………......68

3.10.1 Stages of succession and career planning……………………………………………………...68

3.11 Effective talent management…………………………………………………………………...69

Chapter 4 - Talent Acquisition……………………………………………………………….70

4.1 Introduction of the chapter……………………………………………………………………...71

4.2 Talent Acquisition………………………………………………………………………………72

4.3 Talent acquisition strategy……………………………………………………………………...75

4.3.1 Measure of talent management…………………………………………………………………76

4.3.2 The future of talent acquisition strategy………………………………………………………..77

4.4 Importance of talent management………………………………………………………………78

4.5 Talent acquisition specialist job description……………………………………………………80

4.6 Steps of talent management…………………………………………………………………….81

Conclusion……………………………………………………………………………………82

Bibliography………………………………………………………………………………….83
Annexure……………………………………………………………………………………..84

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 LIST OF FIGURES AND CHARTS
Figure 1 – Oil refining process

Figure 2 – Product obtained from petroleum

Figure 3 – Organizational structure

Figure 4 – Recruitment process

Figure 5 – Significance of talent management

Figure 6 – Talent management process

Figure 7 – Methodology of talent management

Figure 8 – Employee engagement process

Figure 9 – Determinants of employee engagement

Figure 10 – Steps of talent acquisition

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 Chapter 1
Introduction of the Oil and Gas industry

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1.1 Introduction of the chapter:
This chapter comprises an industrial overview and a company overview. In the industrial
overview; introduction to the oil and gas industry, SWOT and PESTEL analysis of industry,
growth drivers of the industry, attractiveness of the industry, and other information related to
the industry.

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1.2 Industrial Overview:
“Making new petroleum should be as simple and straightforward as brewing beer”

-George M church

As per George church, the production of petroleum is a very complicated procedure but as per
him, this should be a simple and easy process as simple as the production procedure of beer.

The petroleum industry is also known as the oil industry which consists of different processes
such as extraction & exploration, refining, transportation and the marketing of petroleum
products such as petrol, diesel, LPG and other petrochemicals. The oil and gas natural gas
industry is characterized as highly complex processing, and capital intensive and this requires
very good art of technology along with this skilled manpower is also equally important. This
industry required long-term investment and its break-even point period is also very long.

The oil and gas sector is one of the core industries in the world any plays a vital role in
influencing of decision- making process related to the economy of every country. The oil and
gas sector provides the world’s seven billion people with 60% of their energy requirements of
theirs. The oil and gas industry is one of the fastest- growing and expanding industries today.
Every company invests billions of dollars annually on maintenance and in increasing the
production of oil and other petroleum products. Nowadays oil and gas sector provides lots of
job opportunities to the people who are passionate to do the job, over 200 countries invited oil
and gas producing companies to explore their land and territorial water.

Oil and gas are important keys to the global energy requirement. Nowadays in the world, the
demand for green and renewable energy is increasing but along with this, there should not be
a significant impact on oil demand. As per the world’s survey, a decade before world crude

oil capacity was 83.1 billion barrels per day , which means at a 1.8% average growth rate per
year global oil refinery has to grow.

There is the significant of the oil refinery industry for oil-producing countries such as Iraq,
Iran, Saudi Arabia, etc. the decade industry experienced lots of ups and downs as we can see
from the global trend. As per a recent survey, approximately 96.5 million barrels of oil are used
per day at the global level, the united states is the biggest oil consumer country in the world,
out of 96.5 million barrels the united states consumed 19.78 million barrels per day while the
usage of 44.8 million barrels per day India stood at the third position of highest oil consumer

13
countries of the world. The level of reserve is left for only 53 years. Every industry faced lots
of fluctuations during the Covid-19 oil and gas industry is also one of them. The demand for
oil and consumption of oil and other petroleum product is continuously increasing since 1998
but the demand is decreased by nine million barrels due to the worldwide lockdown because
of the covid-19 pandemic. The economy of every country was highly affected by this pandemic.

The oil and gas industry is broken down into three major parts.

1. Upstream

The upstream part includes some activities such as exploration and extraction of crude oil from
underwater and underground by drilling. This is also known as exploration and production
(E&P). Upstream is characterized as highly risky, this gives a high return but this is highly
affected by global politics.

2. Midstream:

The midstream part consists of activities such as transportation of extracted raw material
through railways, roads and pipelines and storage of the raw material. The characteristics of
midstream are as follows; lower capital intensive, less risky, etc.

3. Downstream:

In the downstream part, some activities conduct such as the conversion of raw materials into
final products by using different technologies and marketing that product. The oil refining
process is conducted in this stage. The downstream part has complexity, it is a margin business.

14
 Basic oil refining process:

1. Separation:

In this process, evaporated components are separated by applying high temperature to the raw
material. The boiling points of each component are different from each other. In this stage
atmospheric distillation process is used.

2. Conversion:

After the completion of the separation process conversion process will start in this process the

size of hydrocarbon is converted from heavy to light molecules by applying high temperature .

3. Purification:

This is the last stage of the oil refining process, in this stage material purifying means the
removal of dirt and unwanted material from the expected product by using technologies.

15
 separation

conversion

purification

Figure 1 – Oil refining process

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1.3 Growth of Industry in India:

India is the 3rd largest energy and oil consumer in the world. And it is 4 th largest importer of
liquefied natural gas (LPG). India consumed 233.3 MMT petroleum products and 66.6BMC
natural gas in Apr-Mar 2024, making a growth of 4.6% and 11% over the Apr-Mar 2024.

 Oil demand in India is projected to register a 2x growth to reach 11 million barrels per day
by 2045.

 Diesel demand is India is expected to double to 163MT by 2029-30, with diesel and
gasoline covering 58% of India’s oil demand by 2045.

 Consumption of natural gas in India is expected to grow by 25 billion cubic meters (BMC),
registering an average annual growth of 9% until 2024.

 Crude oil imports increased by 5.7% and 0.9% during January 2024 and April-January
2023-24 respectively as compared to the corresponding period of the previous year.

India’s role in global oil markets will likely expand substantially over the reminder of the
decade, fueled by strong growth in its economy, population and demographics- making the
country the largest source of demand growth, the international energy agency.

“ India will become the largest source of global oil demand growth between now and 2030,
while growth in developed economies and china initially shows and then subsequently goes in
our outlook” according to the report, released on the side- lines of the India energy week in
Goa.

Widespread industrial expansion would mean that gasoil would become the single largest
source of oil demand growth, accounting for nearly half of the rise in the nation’s demand and
more than one-sixth of total global oil demand growth through to 2030.

Jet-kerosene demand is poised to grow strongly, at around 5.9% per year on an average, but
from a low base compared to other countries. Gasoline will grow by 0.7% on an average, as
the electrification of India’s vehicle fleet avoids a more substantial rise, it added.

17
India oil companies are investing heavily in the refining sector to meet the rise in demos tic oil
demand. Over the next seven years, 1 million b/d of new refinery distillation capacity will be
added- more than any other country in the world outside of china.

Several other large projects are currently under consideration that may lift refining capacity
beyond the 6.8 million b/d capacity that IFA expects so far.

“INDIA is set to maintain its position as key exploiter of transportation fuels to markets in
ASIA and ATLANTIC BASIN. Continued investment in refunding capacity and complexity
will boost light and middle distillate production, even as the industry pivots further towards
heavier and sour crudes,” the report said.

As a relatively small oil producer, and with limited potential for near-term growth, India’s
domestic production accounted for just 13% of the country’s supply needs. In 2023, domestic
oil production averaged at around 700,000 b/d.

“Despite renewed efforts by the government to attract foreign upstream investment; domestic
crude oil production is expected to see continued declines over the medium term. A dearth of
new discoveries in recent years will contribute to Indian oil supply falling to 540,000 b/d by
2030,” as per report.

India’s efforts to accelerate its energy transition are set to deliver significant oil savings in the
forecast period. Increased uptake in electric vehicles in poised to play a key role in
decarburizing the transport sector.

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1.4 Critical success factors of the Oil and Natural Gas Industry:

Critical success factors are important elements of any organization, business, or project, the
company should focus on these factors to achieve the organizational goal. There are so many
critical success factors that are different for every industry. For the oil and gas industry, some
of the critical success factors are as follows;

1. Business risk assessment:

Quality of reserves and replacement strategy

Diversification

Cost position

Operating management

2. Financial risk assessment:

Financial policy

Capital structure

Cash flow protection and liquidity

Financial flexibility

3. External exchange:

Environmental changes

Political changes

Economical affair

Corporate and social responsibility

19
Legal interference

4. Supply & Chain management

Supply chain management

Raw material

20
1.5 Product profile:

Crude oil is the primary product of the oil and Gas industry. It is a mixture of hydrocarbons
that is extracted from underground. Crude oil serves as the raw material for various downstream
processes, including refining and the production of petroleum products.

Crude oil undergoes refining processes to product a wide range of petroleum products. Some
of the major petroleum products include:

 Fuel gas

 Cooking gas LPG

 Gasoline

 Naphtha

 Kerosene-jet fuel

 Diesel-sulphur

 Lubricants

 Pet coke

Figure 2 – Product obtained from petroleum

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-Fuel Gas:

During the refining process of crude oil, fuel gas is typically produced as a byproduct from
various units such as the crude distillation unit, fluid catalytic cracking unit, and hydro cracking
unit. This fuel gas, which mainly consists of methane, ethane, propane, and butane, is
commonly used within the refinery for heating, powering equipment, and as a feedstock for
other processes. Additionally, excess fuel gas may be converted into products like hydrogen or
sold to external markets.

-Cooking Gas LPG:

Liquefied petroleum gas, also referred to as liquid petroleum gas (LPG or LP gas), is a fuel gas
which contains a flammable mixture of hydrocarbon gases, specifically propane, n –butane and
isobutene. It can something contain some propylene, butylenes, and isobutene. LPG is prepared
by refining petroleum or “wet” natural gas, and is almost entirely derived from fossil fuel
source, being manufactured during the refining of petroleum (crude oil), or extracted from
petroleum or natural gas streams as they emerge from the ground.

-Gasoline:

Gasoline also knows as petrol is an energy- dense secondary fuel that can be through of as
energy currency. It is used to power many heat engines; most importantly it acts as a fuel for a
large proportion of cars. Gasoline is made when crude oil is broken into various petroleum
products through a process of fractional distillation. The finished product is than distributed to
gas station through pipelines.

-Naphtha:

Naphtha is a flammable liquid hydrocarbon mixture. Generally, it is a fraction of crude oil, but
it can also be produced from natural-gas condenses, petroleum distillates, and fractional
distillation of coal tar and peat.

-Kerosene:

Kerosene are distillate frication of crude oil in the boiling range of 150-250C. they are treated
mainly for reducing aromatic content to increase their smoke point(height of a smokeless

22
flame) and hydro fining to reduce sulphur content and to improve ordure, color& burning
qualities (char value).

Kerosene is used as a domestic fuel for heating/ lighting and also for manufacture of
insecticides/ herbicide/ fungicides to control pest, weeds and fungi. Since kerosene is less
volatile than gasoline, increase in its evaporation rate in domestic burners is achieved by
increasing surface area of the oil to be burned and by increasing its temperature.

-Jet fuel:

Jet fuel or aviation turbine fuel is a type of aviation fuel designed for use in aircraft powered
by gas-turbine engines. It is colorless to straw – colored in appearance. Jet fuels are produced
mainly from straight-run and hydro treated kerosene or kerosene blended with heavy naphtha
streams [4 and derived streams] from the atmospheric distillation of crude oil.

-High speed diesel:

Diesel also called petro diesel in technical terms, is called high-speed diesel (HSD) which is
also produced from the fractional distillation of crude oil between 200C and 400C resulting
in a mixture of carbon chains and is composed of saturated hydrocarbons (primary paraffin
including N, ISO, and carbon chains and is composed of saturated hydrocarbons (including
naphthalene’s and alkyl benzenes).

The principal measure of diesel fuel quality is its cetin number. A higher certain number
indicates that the fuel ignites more readily when sprayed into hot compressed air.

-Lubricants:

Lubricant is substance used to reduce friction and wear between moving parts. They are
essential for the efficient operation of machinery and engines. Lubricants, such as engine oils,
grease, and hydraulic fluids are produced from refined crude oil.

-Pet coke:

Petroleum coke is a carbonaceous product obtained in the oil refining process. It is abbreviated
as coke or petcock, and is a carbon-rich solid material derived from final cracking process a

23
thermo- based chemical engineering process that splits long chain hydrocarbons of petroleum
into shorter chains that takes place in Coker units. There are two distinctive grades of petroleum
coke viz. calcinable or green pet coke and fuel grade pet coke.

24
1.6 SWOT analysis of the Indian Oil and Natural Gas Industry:

Through SWOT analysis, the company can identify in which area the company should and
need improvement. This helps the company is better planning to perform well.

S- Strength:

Strong distribution and sales system, high profitability, and revenue – revenue generation is
naturally related to sales of oil barrels. This helps to increase government revenue. This
industry requires high manpower that’s why this provides good opportunities to fresher as well
as experienced people. CSR policies of the company are also one strength.

W- Weaknesses:

Huge capital requirement to establish an oil refinery, areas are perceived as mature after
significant discoveries. The cost to maintain the refinery and its position in the market is also
a big task for the owner of the company.

O- Opportunities:

In this globalization era, the oil and gas industry gives lots of job opportunities to people. With
the increasing demand for oil and gas products, companies can get good financial benefits.

T- Threats:

No doubt the threat of new entrants is low for this industry but nowadays most people are
looking for green energy, therefore the demand for oil and gas products may get a decrease in
the future.

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1.7 PESTEL Analysis of Oil and Natural Gas Industry in India:

PESTEL analysis helps organizations to witch extent macro factors such as political,
environmental, social, technological, economical, and legal affect activities related to the oil
and gas industry and in which direction the industry will go.

P- Political factor:

This is one of the most affecting factors because the political changes and disputes between the
countries of a political party directly affect the industry. For instance, if disputes arise between
USA and Iran, the price and supply of oil will get easily affected. OPEC made policies to
finalize and coordinate the price of oil at the global level. As per policies, it should be
mentioned that the different economies and different political environments, rules, and
regulations so oil and gas prices may get affected.

E- Economic factors:

Which have a great impact on the economy of any development and developing country. The
USA, Russia, Iran, Canada, Algeria, Qatar, Norway, China, Saudi Arabia, and the United Arab
emirates are the top oil-producing countries in the year 2021. While the USA, China, India,
Japan, Russia, Saudi Arabia, Brazil, South Korea, and Canada are the most oil consumers. The
sudden change in the prices of oil and gas will directly affected economic growth. Many
industries are closely related to this industry such as agriculture, textile, fertilizer, and so on
the price change will also affect this industry as well.

S- Social factors:

Also play a vital role in the evaluation of the oil and gas industry, nowadays in many developing
and developed countries the demand for oil and other petroleum products is increasing
significantly. For example, India is the second- largest populated country in the world, and the

26
oil demand is also very high but its production of it is low as compared in the world, and the
oil demand is also very high but its production of it is low as compared to its consumption. In
India, most people prefer their private vehicles, so analysts suggest that companies should
target the local market so they can create a good corporate image.

T- Technological factor:

In this technological era most oil-producing companies investing huge capital in the adoption
of new technologies , such as Artificial Intelligence , Big data , 5G network , Machine learning,
and robotics because of these technologies companies can increase their productivity and profit.
Technological change is not easily adopted by the oil and gas producing countries because of
the industrial complex.

L- Legal factor:

Legal factor, is also an important of PESTEL analysis, legal environment is different for every
country so the rules and regulations govern the oil and gas industry. For instance, after the FDI
policy, many countries can invest and can do business in the Indian oil and gas industry. In
some countries policies for import and export are different.

27
1.8 Key Issue in Industry:

There are three primary challenges/ issues facing the oil and gas industry today. They are:

1. The first is to produce more energy at lower cost with less emission. The global
population is increasing, and energy demand post COVID – 19 will not only recover,
but also increase. At the same time, the world is demanding cleaner energy so oil and
gas campiness must supply this energy with less emission. This is a tough task, but
many groups are rising to the occasion. The work is being done by industry, universities
and governments to lower emissions, and will see that a very large effort is being made
to produce cleaner energy. It will take time, but the trajectory is clear to get to net zero
emissions by 2050 or sooner. Oil and gas campiness need to continue their good work
at lowering costs. Investors are demanding better returns on their investment in oil and
gas campiness. While companies cannot control the price of their product, they can
control the amount of money they spend annually. The trend since 2015 is one of
remarkable achievement in lowering the cost base of the entire industry.
2. The second challenge is for the oil and gas industry to collectively invest approximately
$500 billion each year just to keep up with demand. What makes this particularly
difficult is the strong headwind of rising capital costs. Since 2015 the oil and gas
industry has underinvested, especially in the upstream portion of the business. Once the
global spare capacity is depleted there will be a need to reinvest in not only maintaining,
but actually growing oil and gas production to satisfy the needs of customers around
the world. This challenge will be difficult to achieve and if it is not handled effectively
to develop or re- develop supply to stay in- step with demand, we will see a period of
higher oil and gas prices.
3. The third challenge for oil and gas campiness is to demonstrate differential and durable
cash flows. There have been a large number of investors fleeing the oil and gas sector.
In the past, many oil and gas companies outspent their cash flows in the name of growth.
That is no longer the case for the vast majority of companies. Still, investor confidence
has not yet returned. Energy companies need to show that they have capital discipline
and will consistently return money to their shareholders. This trend has already begun
but the COVID – 19 pandemic and its effect on lowering demand has delayed the

28
positive impact of all the good work oil and gas companies have done and are doing to
keep costs down and spend within their means while rewarding shareholders with
consistent and predictable returns.

29
1.9 Future Outlook of the Oil and Gas Industry:

During the covid-19 pandemic, the demand for oil and gas decreased because of the worldwide
lockdown so people mostly prefer to stay home but after some time the demand increased
because most people used personal vehicles for transportation and avoid public transportation
such as traveling from the bus, train, tram and other public transportation systems.

After covid- 19 every oil and gas producing and refining company expected that the oil demand
level will be back to return by late 2021 to 2022. The oil demand was around 100mb/d in 2019,
which will increase and reach 104.4mb/d at the global level in the year 2026.

In India, the oil demand was 5.05 million barrels per day in the year 2019, while the demand
will reach 10 million barrels per day by 2030. The primary energy consumption of India
globally will increase two-fold by 2035.

30
 Chapter – 2
Company Overview

31
2.1 Introduction of the chapter:

This chapter helps know about NAYARA ENERGY LTD., and its working areas and
functions.

In the chapter , Introduction of NAYARA ENERGY LTD., and its history , SWOT analysis of
the company , company’s Mission , Vision , and its SPIRIT , Organizational structure of the
company , Basic HR functions of the company, Recruitment process of the company and
employee engagement of the company are included.

32
2.2 Company Overview:

Nayara Energy Ltd. (formerly known as Essar Oil Ltd.), is an Indian based company engaged
in the exploration and production of oil and natural gas, company is also related in the
exploration and production of oil and natural gas, Essar Oil Ltd. Was a part of Essar group
prior to its acquisition with Rosneft group. It operates India’s second-largest single location
and most complex downstream refinery at Vadinar, Gujarat, India.

Russia’s state-owned oil company, Rosneft bought the company’s 49% in October 2016 and
other remaining share was bought by Trafigura and UCP investment group. They rename of
company “NAYARA”, Nayara is the combination of ‘Naya’ which means New, and ‘Era’ in
May 2018.

Nowadays Nayara Energy Ltd. Owned and operates India’s second-largest single-site refinery
at Vadinar, Gujarat, India. The company’s annual capacity is 20MMTPA and 4, 05,000bpd.
Nayara Energy Ltd. Is one of the world’s modern refineries with a high complexity index of
11.8. This complexity index is decided based on how many products you want from crude oil.
Nayara Energy is capable to handle diverse crude from sweet to sour and light to ultra heavy
material. Nayara Energy produces high-quality Euro IV and Euro V grade products (Euro IV
and Euro V are the European emission standards). The company’s retail outlets are more than
6000 now, they started with just 3500 retail outlets.

2.2.1 Business Model:

Nayara Energy’s retail business is driven to deliver the fastest and most trusted service to its
customer. The company has established the concept of setting up retail outlets using the dealer-
owned- dealer- operated model, in which dealers lease their land to the company for 30 years
of period and then invest in setting up the infrastructure for the outlet.

Nayara Energy Ltd. Is committed to enhancing and improving the franchisee business by
supplying high quality petrol as well as diesel at a very feasible price to the suppliers and
distributors.

33
2.2.2 Vision:

The vision of Nayara Energy is to be among the most respected and reputed and reputed
organizations in India by doing what is right and rightful for the communities and national
large.

The Nayara Values ‘EXCEL’ depicts their vision.

E - Energetic:

This means they are doing and trying to give their outstanding reply to their stakeholders with
the help of their products, services, and communication full of their energy.

X - Extraordinary:

They write extraordinary as ‘Xtraordinary’, this means they never compromise with their goal
to achieve and they are doing this with their creative, diligent, and high potential workforce.

C - Courageous:

They always believe that they can face any challenges related to the energy market at India and
Global level and to face those challenges they take strong steps towards it.

E - Ethical:

They always work with purity, transparency, and consistency because they think about people,
environment, and community first.

L - Lead:

They always take possession of their activities and always set an example for others by taking
unique steps of leadership.

2.2.3 Mission:

Nayara Energy Limited always wants to build a strong relationship with its stakeholders and
make them equal partners in the future by providing them with a path that is collaborative,
sustainable, and progressive corporate social responsibilities programs. They also believe that
they can sustain progress through technological innovation. The company also aims to

34
complement and enhance the ongoing efforts for community development by the government
while introducing innovations where there is a need and opportunities.

2.2.4 ‘SPIRIT’ of Nayara Energy Limited:

‘SPIRIT’ is the behavioral competencies that are based on Nayara Energy Limited’s core
values.

S- Strategic Thinking

P- People Leadership

I- Ingraining Capability

R- Result Orientation

I- Improvement and Learning

T- Teamwork and Collaboration

35
2.3 History:

Nayara Energy Ltd. formerly known as Essar Oil is an Indian Oil refining company with
a significant presence in the energy sector. Here is a brief history of Nayara Energy.

Essar forayed into the oil and gas sector after it found success in contract drilling. Around the
mid- 1980s, the Indian government opened up the contract drilling business to India privet
companies. Essar was among the first private companies to grab the opportunity and become
India’s largest rig operator in the private sector, with a fleet of 11 land rigs, one offshore rig
and a drill ship.

In 1994, Essar started work on a refinery at Vadinar in Gujarat’s Jamnagar district. By 1995,
the necessary funding was in place after Essar Oil Limited, a company that was instituted in
1989, floated a successful public issue to support the refinery project. Work on the refinery was
progressing as per schedule until the first quarter of 1998. In the second quarter, a devastating
cyclone hit the western coast of India damaging several structures in the refiner site, leading to
stoppage of work.

It was not until early 2005 that Essar restructured the balance sheet and work resumed with
renewed vigor on completing the refinery project. During the period of stoppage, Essar had
wisely planned for technology upgrades. Within 18 months after work resumed, Essar began
commissioning the refinery in phases.

Trial production was initiated and by 2008, the Vadinar refinery started commercial production
with an initial capacity of 10 million tones.

For the next five years, Essar operated the refinery at more than 100 percent capacity
utilization. In 2013, Essar Oil undertook an extremely capital – intensive project to double the
capacity to 20 million tones. The company also made vital upgrades to enhance the unit’s
complexity from 6.1 to 11.8, which would make the refinery among the most complex
refineries in the world with the ability to process the toughest crudes.

In 2015, the holding company of Essar oil made a delisting offer to the minority shareholders
of the company, which became the largest privatization bid in the history of corporate India
with over Rs. 3,955 corer paid to the shareholders who received more than 100 percent
premium on the floor price.

36
In 2016, Essar signed a definitive agreement to monetize 98% stake in Essar Oil Ltd. By selling
49% each to the Russian oil giant Rosneft and a consortium led by Trafigura and UCP. It was
in 2017, that this transaction was concluded with Essar Oil being valued at $12.9 billion. This
is not Russia’s largest investment in India, but also the country’s largest FDI in the energy
sector.

The deal included Essar Oil’s 20 MTPA Vadinar refinery, its pan- India network of over 3,500
retail outlets (representing India’s largest private sector retail network), as well as the
associated refinery infrastructure. The transaction perimeter also included the Vadinar port
(capacity of 58 million tonnes with world-class dispatch and storage facilities for liquid cargo)
and the Vadinar power plant (a 1,010 MW state-of-the art, multi- fuel unit that supplies both
power and steam to the Vadinar refinery).

Essar Oil is yet another testimony to Essar’s capability of incubating world-class business,
operating them and monetizing at a premium valuation.

Essar Oil Limited is currently known as Nayara energy Limited.

The decision was finalized at an extraordinary general meeting of it’s shareholders.

Following the changes in Essar Oil’s ownership structure in August 2017, the company’s
development strategy includes a new brand and corporate identity positioning. The term
“Nayara” is coined from Hindi “Naya” (new) and “Era” and strongly signifies the shareholders
vision of bringing the asset to a new era of development.

Essar retail network amounting to 4,500 fuel stations in India will keep its name after the
rebranding of the parent entity. Short-term plans include a possibility of expanding the fuel
stations network even further.

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2.4 SWOT Analysis of Nayara Energy Limited:

SWOT analysis helps the organization to get visibility of their current position and helps to
improve strategies for success and to sustain the position in the market and make them able to
get better penetration of the market.

S - Strength:

Strong distribution channel; the large size of retail outlets, use of state of art technologies, and
strategic location make Nayara Energy strong. CSR policies of Nayara Energy Limited are
excellent which helps them to create value among people Nayara Energy has a dedicated and
hardworking workforce which makes them strong and confident.

W – Weakness:

The company’s operations are bounded by government regulation sometimes the company
cannot work in its own way company has to work within the boundaries of government
regulations. During the Covid pandemic, the company faced some challenges in the supply of
the products.

O – Opportunities:

Increasing demand for oil and other petroleum products in India is the scope to get good profile
by trying to fulfill the demand. Due to heavy industrialization, nowadays many industries use
byproducts of petroleum so this is the opportunity to generate revenue from the byproducts.

T – Threats:

The threat of new arrival in the market is less because the industry is required huge capital but
the existed competitors are the bid threats to the company because they can expand their
capacity and try to reduce the number of customers, economic and political instability is also a
big threat to the company.

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2.5 Organizational structure of Nayara Energy Limited:

Organizationa
lStructure

Head of CEO
Refinery

Head Head IT Head Head Head Finance Head

Head HSEF Head HR
operation Marketing Maintenance & Account commercial

employees

Figure 3 – Organizational structure

39
2.6 Basic Human Resource functions at Nayara Energy Limited:

There are so many activities related to human resource management undertaken by Nayara
Energy Limited as follows;

 Performance Management System:

The performance Management system or PMS is a systemic procedure to track the performance
and consistency of employees or departments toward the goals and objective of the company.

 Talent Acquisition:

Under this function, the company performs many other activities such as recruiting, tracking
the candidates, selecting, interviewing, and on boarding the employees for the company.

 Compensation and Benefits:

Providing compensation and benefits such as monetary, non-monetary, and financial or non-
financial benefits to employees to retain them with the organization for a long period.

 Learning and Development:

This department plays an important role because they always focus on the requirement of the
training for employees and their career developments, and they organize seminars, workshops,
and training programs for the employees.

 Industrial Relationship:

This function ensures statutory compliance related to factory Act, contract labor Act, EPF Act,
and gratuity Act, and related grievance handling. They maintain the relationship between
management and workers, and union management and build strong connections with them.

 Human Resource Management:

This department focuses on planning, organizing, leading, controlling, and forming the
strategies for the success of the organization.

40
2.7 Recruitment Process at Nayara Energy Limited:

Recruitment

Selection

Onbording

Department
Allocation

Compentency
Assestment

Job Allocation

Figure 4 – Recruitment process

41
2.8 Major Competitors of Nayara Energy Limited:

Oil and gas industry is one of India’s eight essential industries, and it has a significant impact
on the economy’s judgment call. Indian economic market is primarily tied to its energy
consumption, thus, the demand for oil and gas is predicted to expand further, consequently
rendering the industry relatively favorable for business.

Various Indian oil and gas corporations have made significant contribution so the country’s
rapid economic expansion. They also provide commercial partnership with different raw
material suppliers and are one of the foremost sources of employment to many people.

Major competitors of Nayara Energy Limited:

 Reliance Petroleum Limited

 Indian Oil

 Gas Authority of India (GAIL)

 Bharat Petroleum Limited

 Hindustan Petroleum Limited

 Cairn India Limited

 VERO energy

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2.9 Employee engagement of Nayara Energy Limited:

Employee engagement activities are conducted to enhance the relationship between an

organization and its employees.

Employee engagement activities are used to improve the productivity of employees worldwide
and also help in breaking the monotony that is created in the lives of employees. Employee
engagement improves work culture, reduces turnover, increases productivity, builds better
work and customer relationships, and affects profits positively.

For any business to succeed, attracting and retaining talent is imperative. Nayara Energy
Limited is aware that its growth plans can only be achieved through a dedicated talent pool that
works to the peak of its abilities.

To measure the engagement activities the Gallup employee engagement model is used at
Nayara Energy Limited. Their key initiatives through the year include knowledge sharing
sessions, cross-functional team meetings, team out bounds, and one- on- one meeting. It is
through these efforts that the company is able to maintain an engaged workforce while also
keeping the employees aware of the company’s expectations.

There are many activities that are conducted to keep the employees engaged which includes
organizing volley ball tournament, slow cycle race, poetry competition, kite flying competition,
table tennis, Antakshari competition, drawing competition, best out of waste.

Additionally, there are many events celebrated such as Diwali, New Year, Christmas, Women’s
day, and others.
Nayara Energy Limited is not only concerned for the employees but also their families and
missies no opportunity to interact and engage with the family members of the employees. For
the family members of the employees various activities are conducted which includes
organization of chess competition (for kids), Rakhi making competition (for kids), Rangoli
competition.

43
 Chapter – 3
Talent Management

44
3.1 Introduction of the chapter:
This chapter introduces Talent management and its effectiveness.

In the chapter, process of talent management, significance of talent management, types of talent
management, benefits of talent management, and methodology of talent management included.

Explanation of performance management, 360 degree feedback and traditional feedback,

employee engagement and training and development are included.

45
3.2 Talent Management:
Talent management is the ongoing and strategic process that consists of some activities such
as attraction, selection, and retention of the right person for the right position. As per
Forman(2005), talent management is a bunch of different stages such as talent acquisition is a
little bit different from talent recruitment because it is the process of on boarding the specialist
of a specific area, or leader for the future of your organization, talent development refers as a
process of training and development of employee for organizational productivity and
strengthening of employee’s ability, talent deployment means to allocate or place the talent at
right place so they can be easily used when they require, talent retention means to keep the
above-average employee within the organization for a long time, talent evaluation is the
process which helps the organization for a long time, talent evaluation is the process which
helps the organization in the evaluation of a skilled and talented candidate for the organization.

Some authors define talent management as ‘talent succession’, ‘talent strategy’, and ‘human
resource planning’ is used. The following statements are usually used, “choose the right person
for the right position at right time in the organization” (Jackson & Schuler); another well-
known statement is “managing the supply, demand, and the flow of talent through the human
capital” (Pascal, 2004). When support from required and the manager provides that support to
his employee, he/she will feel encouraged and never leave the organization (Hewitt, 2011). As
per Kahn’s theory; there is a positive relationship between employee engagement and
psychological behavioral impact on the organization. Nowadays talent management is the
focus of practitioners and researchers, talent management. “ Talent management refers to an
activity and processes that involve the systemic identification of key position that differentially
contributes to the organization’s sustainable competitive advantage, the development of a talent
pool of high-potential and high – performing incumbents to fill these roles, and the
development of a differentiated human resource architecture to facilitate filling these position
with competent incumbents and to ensure their continued commitment to the organization” (
colling and mellahi, 2009 ). Three key streams of thought were identified which were around
the talent management concept by Lewis and heckman (2006). The first stream was all about
talent management as a substitute label for human resource management, the second stream
was focused on the development of the talent pool and fulfilling and managing their needs, and
the third stream was just aimed at the management of talented people means keeping only ‘A
grade employees’ in an organization and lay off ‘c grade employees’ from the organization but
this stream was not appropriate because to fill all the position with top- performer is not

46
possible in reality. Riccio expressed his professional experience which showed his passion for
employee career development and to amalgamate the holistic talent management approach at
every level of the organization.

Talent management is how employers recruit and develop a workforce that is as productive as
possible and likely to stay with their organization long term.

Talent management systems make it easier to source talent, assess skills and qualification, on
board new hires, manage employee strengths and recognize and reward top performers.

Talent management is defined as the methodically organized, strategic process of getting the
right talent onboard and helping them grow to their optimal capabilities keeping organizational
objectives in mind.

The process thus involves identifying talent gaps and vacant positions, sourcing for and on
boarding the suitable candidates, growing them within the system and developing needed
skills, training for expertise with a future-focus and effectively engaging, retaining and
motivating them to achieve long-term business goals. The definition brings to light the
overarching nature of talent management – how it permeates all aspects pertaining to the human
resources at work while ensuring that the organization attains its objectives. It is thus the
process of getting the right people onboard and enabling them to enable the business at large.

Under the umbrella of talent management, there are a string of elements and sub-processes that
need to work in unison to ensure the success of the organization. For example, analyzing the
right talent gaps for the present and the future, identifying the right talent pools and best-fit
candidates, getting them to join and then optimizing their existing skills and strengths while
helping them grow are touch-points that are all equally important. They support each other and
the whole structure would crumble even if one sub-process fell out of sync.

3.2.1 Talent Management Importance:

Talent management starts with identification of the appropriate skilled people required for the
organization and then there is proper selection of people with requisite potentials and skills in
desired job.

47
After identification and selection of the right kind of people, Talent management implements
competitive compensation that may include attractive pay-package, periodical increment health
insurance, paid leaves, etc. for the employees. The selected workforce is provided with training
and regular refreshment programs so as to match the emerging requirements of the
organization.

3.2.2 Significance of Talent Management:

The basic purpose of talent management is to recruit, develop, and retain best talent in the
organization. The HR department always endeavors to ensure that employees with the right
skills and qualities stay with the organization for a long time.

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 Identifying
required talent

Implementing
Right selection
compensation
of talent
plans

Training and
Performance
Development of
appraisal system
competencies

Aligning Nurturing the

acquired talent talent

Retaining the
talent

Figure 5 – Significance of Talent Management

49
3.3 Talent Management Process:

While often cyclical rather than a generic linear progression of events, the process of talent
management could be considered, to begin with acknowledging the need for talent and leads
to filling that gap and ultimately growing and optimizing the skills, traits, and expertise of
employees, new and old.

The following image depicts the key points of the talent management process:

Figure 6 – Talent Management Process

1. Planning:

Like in any process with a set outcome, planning is the first step in the process of talent
management. It involves the following identifying where the gaps lie – the human capital
requirement, formulating job descriptions for the necessary key roles to help guide sourcing
and selection and developing a workforce plan for recruitment initiatives.

50
2. Attracting:

Based on the plan, the natural next step is to decide whether the talent requirements should be
filled in from within the organization or from external sources. Either way, the process would
involve attracting a healthy flow of applicants. The usual external sources include job portals,
social network, and referrals. The talent pools that need to be tapped into must be identified in
advance to keep the process as smooth and efficient as possible. This is where the kind of
employer brand that the organization has built for itself, comes into play because that decides
the quality of applications that come in.

3. Selecting:

This involves using a string of tests and checks to find the right match for the job – the ideal
person-organization fit. Written tests, interviews, group discussions and psychometric testing
along with an in-depth analysis of all available information on the candidate on public access
platforms help in gauging an all-rounded picture of the person. Today there are software and
AI-enabled solutions that recruiters can use to skim through a vast population of CVs to focus
on the most suitable options and to find the ideal match.

4. Developing:

Quite a few organizations today operate on the idea of hiring for attitude and training for skills.
This makes sense because while you would want a predisposition to certain skill-sets, it is the
person that you are hiring and not the CV. Developing employees to help them grow with the
organization and training them for the expertise needed to contribute to business success also
builds loyalty and improves employee engagement. This begins with an effective on
boarding program to help the employee settle into the new role, followed by providing ample
opportunities for enhancing the skills, aptitude and proficiency while also enabling growth
through counseling, coaching, mentoring and job-rotation schemes.

5. Retaining:

For any organization to be truly successful, sustainably, talent needs to be retained effectively.
Most organizations try to retain their best talent through promotions and increments, offering

51
opportunities for growth, encouraging involvement in special projects and decision-making,
training for more evolved roles and rewards and recognition programs.

6. Transitioning:

Effective talent management focuses on a collective transformation and evolution of the

organization through the growth of individual employees. This involves making each employee
feel that they are a part of a bigger whole. Providing retirement benefits, conducting exit
interviews and effective succession planning might seem like unrelated career points but they
are all transition tools that enable the shared journey.

52
3.4 Talent Management Types:

Talent management includes within its fold those individuals who can make a difference to the
organization’s goals, either through their immediate contribution or in the long run.

Talent is a composite state made up of various elements. An individual is said to be talented

when he/she possesses or acquires the following elements:

 Skills, knowledge, intelligence, and experience

 Ability to learn and grow

 Judgment, attitude, character

 Perseverance and self-motivation

Talent is set of unique abilities possessed by individuals. There are two types of talent found
in an organization. They are unidimensional and multidimensional. Both types of talent have
the same objective, however with different perspective.

1. Unidimensional talent:

In an organization, we observe that some employees are best in a particular skill and ability.
For instance, some employee may be best in administration, some of them best in sales, while
some employees may be best in their respective functions. When individual possess a singular
talent in any particular field. It is called unidimensional talent.

2. Multidimensional talent:

On the other hand, in an organization we also observe that employees are adept at multiple
skills and abilities. For example, one employee is best in administration sales, accounting and
production at a stretch. Such an employee is said to possess multidimensional talent.

Multidimensional talent is much sort after by organization. Every organization seeks to retain
employees with multidimensional talent as they prove highly beneficial in bridging the gap
between organizational objectives and goals.

53
3.5 Benefits of Talent Management:

Talent management refers to the skill of attracting and nurturing highly skilled employees,
integrating new employees, developing and retaining current employees to meet the current
and future business objectives. It is also known as Human Capital Management.

Human capital management involves the following important processes:

 Sourcing, attracting, recruiting qualified and skilled people

 Managing and defining competitive salaries

 Training and development opportunities

 Performance management processes

 Retention programs such as promotion and transitioning

3.5.1 Benefits:

Talent management is integral to modern businesses and is one of the crucial management
functions is an organization. Here, we have listed down the major benefits that talent
management has to offer:

 It helps the organizational fulfill its vision with the help of efficient and promising talented
people.

 Talent management also assists the organization to build a talent pool comprising a list of
talent people to meet future exigencies.

 It makes the organization more competitive and progressive.

 It paves the way for future leadership.

 It helps automate the core processes and helps capture data for making better decisions.

54
 Automates repetitive tasks like creating salaries thereby releasing time and resources for
making strategies and more critical decisions.

3.5.2 Benefit for Organization:

The following points explain how talent management can be beneficial for organizations:

 Enhances individual and group productivity and capacity to compete effectively in a

complex and dynamic environment to achieve sustainable growth.

 Assists in hiring quality workforce.

 Establishes better match between jobs and skills.

 Helps retain top talent thereby reducing the cost of hiring new recruits.

 Keeps employees engaged constructively.

 Helps in understanding the employees’ batter.

 Effective use of available man-hours.

 Helps develop leaders from tomorrow within the organization.

 Helps in evaluating employee’s readiness to take up new roils.

3.5.3 Benefit for Employees:

The following points explain how talent management can be beneficial for employees:

 Promotes long-term association with the organization.

 Persistent and higher productivity of employees.

 Keeps the employees motivated which helps in career development.

 Helps the employees get job satisfaction from their work.

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3.6 Methodology of Talent Management:

Every organization has a different methodology for talent management. The following diagram
shows the complete cycle of talent management which involves planning, acquiring,
developing, and retaining of able and skilled personnel for the organization.

Planning

Retaining Methodology Acquiring

Devloping

Figure 7 – Methodology of Talent Management

1. Planning:

It involves identifying, defining, and setting criteria for required capabilities as well as
examining the current talent levels.

2. Acquiring:

It utilizes a varied range of strategies to attract talent.

3. Developing:

It involves providing opportunities for career development and training, managing employee
performance, coaching and mentoring.

4. Retaining:

It involves providing long- term incentive, a flexible and positive work environment, and
opportunities for advancement of good remuneration.

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3.7 Performance Management:

Performance management is concerned with the present – here and now; whereas talent
management focuses on securing the future tomorrow. The process and activities involved are
completely different between these two programs however the targeted outcome for the
organization is the same.

Performance management is a systematic approach that organizations use to ensure that

employee’s work and productivity align with the organization’s goals. It involves setting clear
expectations, providing feedback, assessing performance, and developing employees to
improve their skills and productivity.

Talent management aims at retaining the efficient and high performing employees, while
performance management aims at setting the performance objective, activities, and target
according to the individual accountability plan and measure performance periodically- yearly
or quarterly.

Performance management includes activities such as planning work, goal setting, monitoring
or continuous progress review, frequent communication, feedback and training for improved
performance, implementation of employee development programs and rewarding
achievements.

Performance management includes the following activities:

 Planning and setting goals:

Performance management includes proper planning and setting performance expectation and
goals for individuals and teams to redirect their efforts and skill towards realizing
organizational goals. They should be measurable, understandable, verifiable, and achievable
performance elements and standards.

 Monitoring or evaluating performance:

This involves periodical assessment or measuring of employee’s performance, providing

feedback to employees and work group on their progress towards realizing their set goals.
Continuous progress review is helpful in identifying unacceptable performance at any time.

57
 Developing and enhancing capacity:

Performance management provides training; gives assignments to acquaint the employees with
new skills, and performance management process provide a good opportunity to identify
development needs.

 Rating or evaluating performance:

Evaluate or assess employees or group performance against set standards or elements in a

performance plan. Based on the evaluation, assign a summary evaluation or rating record.

 Rewarding performance:

The last stage of performance management is to have a culture of rewarding employees, both
individually and as members of group for their performance towards the realization of
organizational goals and objectives.

3.7.1 Objective of Performance Management Talent:

The objective of performance management is to build a high performance culture for both
individuals and teams in an organization so that they jointly take the responsibility of
improving the business processes, and at the same time increase overall productivity .

Following are some important objectives of performance management with reference to talent
management.

Measurable, understandable, verifiable, achievable performance elements and standards.

 Monitoring or Evaluating Performance:

This involves periodical assessment or measuring of employees’ performance, providing
feedback to employees and work groups on their progress towards realizing their set goals.
Continuous progress review is helpful in identifying unacceptable performance at any time.

 Developing and Enhancing Capacity:

Performance management provides training, gives assignments to acquaint the employees with
new skills, and improves the work processes or methods to enhance the capacity to perform.

58
Performance management processes provide a good opportunity to identify development
needs.

 Rating or Evaluating Performance:

Evaluate or assess employees or group performance against set standards or elements in a
performance plan. Based on the evaluation, assign a summary evaluation or rating record.

 Rewarding Performance:
The last stage of performance management is to have a culture of rewarding employees, both
individually and as members of group for their performance towards the realization of
organizational goals and objectives.

3.7.2 Objective of Performance Management in Managing Talent:

The objective of performance management is to build a high performance culture for both
individuals and teams in an organization so that they jointly take the responsibility of
improving the business processes, and at the same time increase overall productivity.
Following are some important objectives of Performance Management with reference to talent
management.
 Drive the employees towards achievement of superior standards of work performance.

 Support the employees in identifying the knowledge and skills required to perform the job
efficiently.

 Motivate employees by encouraging employee empowerment and implementation of an

effective reward process.

 Promote a two-way system of communication between management and the employees for
clarifying expectations, roles and accountabilities, functional and organizational goals. Provide
regular and transparent feedback to improve employee performance.

 Identify the barriers or problems to effective performance and resolve those barriers through
constant monitoring, training, and development interventions.

59
 Promote personal growth in the career of the employees by helping or supporting them in
acquiring the desired knowledge and skills.

 Increase the self-esteem of the employees and enhance their self-insight and development.

3.7.3 Benefits of Performance Management:

An effective performance management system can play a very crucial role in managing the
performance in an organization by:

 Ensuring proper understanding of objectives and facilitating effective communication

throughout the organization.
 Developing a healthy relationship between an employee and the line manager based on trust
and empowerment.
 Ensuring each employee understands what is expected and equally ascertaining whether the
employees possess the required skills and support to fulfill such expectations.
 Ensuring employees understand the importance of their contributions to the organizational
goals and objectives.
 Better and timely differentiation between good and poor performances.
 Enhancing the competence of the employees and enabling the managers to gain insight about
their subordinates.
 Facilitating organizational changes and paving ways for appropriate administrative actions.

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3.8 Training and Development:
Integration of learning with talent management is another important tool in today’s corporate
learning and development. Integrated talent management encompasses processes for
performance management, compensation reviews, succession management, leadership training
and development, and recruiting.
Talent management is a broad-based approach and the practice of viewing all employees as
talent is increasingly being recognized. Regular training and development processes keep talent
intact for the organization to grow.

3.8.1 Process of Training and Development:


 Identify Training and Development Needs:
An organization needs to determine training and development requirements for the employees
to achieve a desired target. Also, there is a need to specify the nature of training to be provided
to each category of employees within an organization.

 Established Objectives:
Organization should have a specific objective for training and development. Clear summarized
objective must be formulated.

 Select Training and Development Method:

Training and development methods should be selected as per the job requirements. It could be
on-job training or off-the-job training.

 Implement Training and Development Program:

Human resources training and development programs should be implemented by qualified and
successful trainers. Trainers must be made aware of the organizational objectives.

 Evaluate Training and Development Program:

There should be thorough evaluation of ongoing training and development programs, which
helps in delineating improved measures.

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Training and development is an ongoing process in an organization to achieve organizational
goals to improve the skill and knowledge of employees. There are two methods of training and
development.

3.8.2 On the Job Training and Off the Job Training:

 On-the-Job Training:
On-the-job training is provided to employees while working. It is provided to both new and
experienced employees through learning at the personal level or by observing subordinates or
managers performs the job and trying to learn from them. In other words, on-the-job training
is teaching the skills and competencies essential to perform a job within the workplace or
work environment

 Off-the-Job Training:
Off-the-job training provides limited knowledge and experience to the employees as the
training is concerned only about learning the job requirements. The overall development of
employees is carried out only through off-the-job training. The type of training that is
undertaken at a site away from the actual workplace for a particular period is called off-the-
training. It aims at providing a stress-free environment to the employees so as to enable them
to concentrate only on learning.
The trainees feel free to express their views and opinions during the training session. It enables
them to explore innovative ideas.

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3.9 Employee engagement:

Keeping employees engaged is one of the biggest challenges faced by organizations nowadays.
It is also a huge opportunity to gain long-trem commitment and mandatory effort from a team.
This effort will ultimately to gain long-term commitment and mandatory effort from a team.
This effort will ultimately lead to higher sales and fewer mistakes in an organization.

From the day an employee joins an organization, his or her positive engagement or fruitful
involvement in organizational work because a though responsibility of the management. Before
allotting duties and responsibilities to newly appointed employees, the organization clarifies
itself about its goals and places the employee at the right place to materialize the goals. It
decides and understands what and how of the goals.

Hence, it is an important Hr function to define and plan an employee engagement strategy that
aligns with the organization’s goals.

Empoyee engagement or keeping employees engaged refers to the manner in which employees
give their best of individual and group effort in the interest of the organization. The approach
of employee engagement keeps employees committed towards organizational goals and values.
It keeps them motivated to give their best contribution to the success of the organization.

The integral parts of a business are organization, employees, leadership, and customers. A
health and progressive cohesion and interaction among these paets is a necessary pre- condition
for achieving organizational goals. It is based upon the notion of ‘one for all’ and ‘all for one’.
There is intraction and interdependance among this part.

Organization comprises of employees; employees provide effective leadership which leads to

increased productivity and efficiancy’ as well as effective coustomer satisfaction. This, in turn,
leads to growth and development of organization.

Employee Engagement is a concept that has begun to grab the attention of the corporate world
for the past few years. In general, higher levels of employee engagement mean higher
profitability of the organization.

The future business performance and revenues and profitability of an organization no longer
depend on the traditional capital management, investment and portfolio management. But the
success of any organization in this constantly changing world of work depends on human

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capital management. The companies that understood this fact long before are the most
successful and highly productive organizations of the currents times. Those who have just
realized it are still struggling to establish a reputation in the industry.

There is a clear link between organizational performance and employee engagement, every
organization seeking sustenance and growth in the ever-changing world of work quickly
responds to the needs of the employees along with designing and implementing a customized
process to increase the levels of employee engagement.

3.9.1 Employee engagement process :

As said earlier, employee engagement is pivotal to the sustenance and growth of the
organization. Every successful organization understands the importance of effective employee
engagement. Employees engross themselves in work when they feel that they are doing
meaningful work and what they do makes a difference.

Truly engaged employees put their heart and soul into their jobs and have passion and
excitement to give more than what is desired from them. In the absence of employee
engagement, organizations suffer loss and negative clientele response.

Figure 8 – Employee engagement process

1 Prepare and Design:

The first step in the process is about discovering the specific requirements of your organization
and deciding the priorities. After that, a customized design of carrying the whole process can

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be designed. It is recommended to seek advice of an expert management consultant to increase
the chances of getting it done right at the first attempt.

2 Employee Engagement Survey:

Design the questions of the employee engagement survey and deploy it with the help of an
appropriate media. It can be either in printed form or set online depending on the comfort level
of the employees and your questionnaire evaluation process.

3 Result Analysis:

It is the most important step in the entire process. It is the time when reports are to be analyzed
to find out what exactly motivates employees to perform their best and what disengages and
compels them to leave the organization. The results and information can then be delivered
through presentations.

4 Action Planning:

‘How to turn the results of the survey into an action’ is a challenging question that organizations
need to deal with utmost care. Coaching of line managers as well as HR professionals is very
important to tell them how to take appropriate actions to engage employees. They should also
be told about the do’s and don’ts, so that they can successfully implement the changes.

5 Action Follow-up:

Action follow up is necessary in order to find out if the action has been taken in the right
direction or not and if it is producing the desired results.

Communication and project management processes are the backbone of the entire Employee
Engagement Process. Communication involves plan follow-up, providing timely information
and involvement of each level of organizational hierarchy.

3.9.2 Ways to Secure Desirable Employee Engagement

To combat employee disengagement, an organization needs to have certain principles or ways.
 A supportive organizational culture:

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An organization leaves no stone unturned in keeping continuous employee engagement. It
needs to create a culture that fosters engaged employees. A supportive organizational culture
works as a major attraction for the employees to join.

 A vision to reckon with:

An organization should have a well-defined, well-communicated and strong vision which
attracts and encourages employees to work for it. The vision needs to be shared with the
employees in the organization by the Management leaders or management across the
organization. The vision when communicated keeps the employees emotionally attached to it.
As a result, the employees remain committed and loyal to the organization.

 Effective communication:
Organization is a place where an employee spends a good portion of their life. Good and
effective communication channels are thus helpful in fostering employee engagement within
an organization. Employees are interested to know how the organization is doing on financial,
social, and goal-achievement fronts. The immediate boss or the team manager should be easily
accessible to the employees.

 Employee development:
Every employee in the organization wants to grow in terms of salary, perks, and position. They
always seek opportunity to grow within the organization. Line managers or team leaders have
some responsibility to groom or develop the team members through appropriate training and
knowledge upgrade frequently.

 Reward and recognition:

Reward, recognition and appreciation are the things used to increase the motivation level of
employees. Employees get a feeling of their effort being validated and acknowledged by the
superiors. They feel to be a valuable part of the organization.

 Employee satisfaction:
Employees feel satisfied when they are considered as part of the process, their opinion gets
valued, and they are on the forefront to achieve the desired goals. Organizations should solicit

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the employee’s feedback, ideas, and thought process as employee satisfaction leads to
increased production and profitability.

 Competitive pay and benefits:

Offering viable compensation, benefits, good incentive plans, proper working condition, and
flexibility are the necessary pre-conditions for strong employee engagement.
3.9.3 Determinants of Employee Engagement:
From the above literature some factors that determine the employee’s engagement support
Kahn’s multi-dimension theory and other theories as well.
According to Joshi and Sodhi (2011), six important management functions are determinants of
employee engagement and they are as follows; job content, Compensation or monetary
benefits, Work-life balance, the relationship between top management and employees, scope
of advancement and good career path and last but not least team orientation or teamwork.

Training &
Development

Work- life Work

Balance environment

Career Employee Employee

Development Engagement Relationship

Team work/
Organizational
Team
Policies
orientation

Job security/
Compensation

Figure 9 – Determinants of Employee Engagement

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3.10 Succession and Career Planning:

Succession planning is having in place measures to identify and develop potential successors
for key or strategic posts in an organization. It is different from replacement planning which
grades employees on the basis of their past performance. Succession planning nurtures future
talent to lead the organization.

Career planning, on the other hand, is done for all positions in the organization. However, both
succession and career planning are an integral part of career management policy.
Succession and career planning is the process of identifying, nurturing, developing, and
training new leaders for future requirements or replacement of the existing leaders to continue
the trend of dependable leadership in the organization.

3.10.1 Stages of Succession and Career Planning:

 Identify the Critical Position:

Organization should always keep a watch on what are the key elements or contributors to their
business, how to motivate and retain talent, and what will be the next step if the main
contributors leave the organization due to any reason. Who are the specialized people to
perform the critical role?

 Analysis:
This stage tells about the requirements to fill with a fit successor. What are the gaps? What are
the internal and external sources to fill the gaps, what will be the strategy? What will be the
competencies required?

 Evaluate, Monitor, and Observe:

This is the process of evaluation. It involves constant monitoring, even after the gap or
requirement is fulfilled. Performance is observed to find out if any changes are required. In
case if any changes are required, quick action is taken.

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3.11 Effective Talent Management:

 Understand the purpose and importance of talent management.

 Understand the organization’s future business strategy.

 Identify the talent gaps and requirements to drive business.

 Design the talent plan and close the gap.

 Take accurate hiring and promotion decisions.

 Focus on the element required on succession of talent management.

 Develop talent to enhance performance.

 Build proper communication system.

 Measure the business impact on workforce effectiveness before and after implementation.

 Design the reward and recognition policy.

 Arrange training and development program for upgrading employee skills.

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 Chapter – 4

Talent Acquisition

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4.1 Introduction of the chapter:

This chapter introduce about Talent Acquisition.

In the chapter, introduction of talent acquisition, talent acquisition strategy, measure of talent
acquisition strategy success, the future of talent acquisition strategy, importance of talent
acquisition, talent acquisition specialist job description, and steps of acquisition process are
included.

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4.2 Talent Acquisition:

Talent acquisition is the strategic process an organization uses to identify, recruit and hire the
people it needs to achieve its business goals and optimize its processes. Companies analyze
their long-term talent needs, identify and develop talent sources, and then execute the strategy
by recruiting, evaluating and on boarding candidates. Talent acquisition is usually a function
of the human resources (HR) department working in collaboration with talent acquisition
specialists, with input from senior executives.

Talent acquisition is usually the first step in an organization's talent management strategy.
Talent management is the process employers use to hire, deploy, train, evaluate, compensate
and retain employees.

Acquisition deals mostly with recruiting and on boarding.

 Workforce Planning:

Anticipating the future needs of the organization in terms of roles, skills, and headcount. This
involves analyzing current workforce capabilities, predicting future needs and planning
recruitment accordingly.

 Recruitment and Selection:

Attracting, sourcing and selecting the right candidates for the organization. This includes
crafting job description, posting job ads, screening applicants, interviewing candidates, and
selecting the best fit for the role. Recruitment is the biggest component of talent acquisition,
and some organizations use the terms interchangeably. However, while talent acquisition and
recruitment share a similar goal- to fill open positions there are important differences. The
biggest is that recruitment focuses on the present moment, while talent acquisition focuses
mostly on the future.

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 On boarding:

Integrating new hires into the organization. This process ensures that new employees
understand their roles, the company culture, and expectation from the outset.

Effective on boarding can improve employee engagement and reduce turnover.

 Learning and development:

Training programs: Offering employees training opportunities to enhance their skills and
knowledge. This can include technical training, soft skills development, leadership training and
more.

Career development: Creating pathways for employees to grow within the organization. This
might involve mentoring, coaching, job rotation, and providing opportunities for advancement.

 Performance management:

Goal setting: Establishing clear, measurable objective for employees that align with the
organization’s strategic goals. This process often involves collaboration between employees
and their managers.

Performance appraisal: Regularly evaluating employee performance against set goals.

Performance appraisals help in identifying strengths, areas for improvement, and determining
compensation, promotions, or additional training needs.

 Compensation management:

Developing a fair and competitive compensation strategy that aligns with market standards and
rewards employees for their contribution. This includes salaries, bonuses, stock option, and
other financial incentives.

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 Succession planning:

Identifying and developing internal talent to fill key leadership position in the future.
Succession planning ensures that the organization is prepared for inevitable leadership changes.

Recruitment is invested in filling an open position as quickly as possible. Talent acquisition

gives consideration to a company's goals and takes the time to find the candidate who best fits
its business' needs. To gain this broader perspective, talent acquisition teams analyze a
prospective employee's skills, how they fit with the company's culture, as well as their potential
for future development to take on other roles in the company.

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4.3 Talent Acquisition Strategy:

Creating a talent acquisition strategy requires adding a strategic perspective to the recruiting
process. The best steps to take when doing this include the following:

 Assessing Organizational Strategies:

Examining the organizational business plan and goals, as well as departmental plans can
provide insight into long-term talent and skill requirements. New lines of business, mergers
and global expansion are major staffing drivers.

 Gathering feedback:

Department managers, HR and senior executives are the best sources of experience and insight
into business processes. They will also expect to have input into the strategy.

 Defining the employer brand:

Studying public perception of the brand through surveys and sites such as glass door is a good
way to evaluate the brand. Organizations should align the brand image with business goals and
have it reflected in the recruiting process.

 Envisioning ideal candidates:

With all this useful input, creating personas of the ideal candidates for each open position
determines the ideal qualifications.

 Hiring with candidate engagement in mind:

During the hiring process, candidates should be made to feel welcome at the organization.
Positive point about the organization should be communicated up-front. For instance,
emphasizing its inclusive vision can attract a diverse slate of candidates.

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 Incorporating technology tools:

Today’s talent acquisition and recruiting software simplifies hiring. These tools can analyze
large batches of candidate data, assess individual candidate’s competencies and streamline on
boarding.

4.3.1 Measure of Talent Acquisition Strategy Success:

 Number of qualified candidates:

The number of qualified candidates an organization attracts for an open role is a gauge of how
effective its talent acquisition team is at reaching the right candidates.

 Acceptance rate:

Talent acquisition teams can gauge how effective their job descriptions, outreach and
subsequent communications are with candidates by looking at acceptance rates compared to
the number of times candidates decline offers. Processes can then be refined to better engage
candidates.

 Time to fill:

The average time it takes to fill open positions at a company can areas for improvement.
Aspects of an organization’s talent acquisition process that are taking longer than expected
should be updated.

 Quality vs. cost per hire:

Companies must hire qualified candidates for open positions that fit within their budgets.
They can assess the quality of their hires to determine if the value the organization gets is
equal to the associated costs.
 Ease to hiring:

Regardless of whether a candidate is hired, it’s important to monitor how smoothly the hiring
process goes. Looking for hang-ups and areas that present complications. Collecting
candidate’s feedback on process can help identify areas for improvement.

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 High turnover:

How effectively a talent acquisition team conveys information about position before a
candidate is hired can determine whether that candidate stays with the company. If a high
percentage of new hires leave within a year or two of joining an organization, the talent
acquisition process might need to be adjusted.

4.3.2 The future of talent acquisition strategy:

AI is increasingly being used in talent acquisition and recruiting. Its use coincides with the rise
of data-driven AI. As talent acquisition data continues to expand exponentially, AI
and machine learning tools are being used to analyze data and streamline recruiting.

An AI algorithm can screen candidates' resumes and other credentials to identify the best
candidates faster than humans doing the same process manually. These algorithms can
automate repetitive tasks like talent sourcing, which also speeds up hiring.

Organizations are also expected to emphasize strategic or cultural changes that are attractive
to younger job candidates. These include workforce diversification efforts, better benefits and
transparent salary policies.

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4.4 Importance of Talent Acquisition:

Talent acquisition is integral to the success of an organization as if grows for many reasons.

 Attracting top Talent:

Talent acquisition enables organizations to source and hire the best candidates for their open vacancies.
Talent strategies are tailored to meet the company’s unique needs and future vision. That way, the talent
hired is not only skilled and experienced but fits the core values of the organization and can be of long-
term benefit. For example, nationwide mortgage bankers hire people who fit their core values even if
no immediate role is available.

 Reducing costs:

A well designed talent acquisition strategy helps reduce recruitment costs by streamlining the
hiring process, improving the quality of hires, and lowering turnover rates, saving both time
and resources in the long run.

 Improving employee retention:

By creating talent acquisition strategies that help organizations find hires who are a good
cultural fit and align with the overall mission and vision of the company, businesses can
improve employee retention. This can also help save money, improve organizational
knowledge and experience, and increase team morale.

 Building productive teams:

One of the core aims of talent acquisition is to help companies build teams with a diverse set
of skills, knowledge, and backgrounds. This leads to an increase in productivity, collaboration,
and problem-solving.

 Creating a diverse and inclusive workplace:

Talent acquisition strategies also allow organizations to create a more diverse and inclusive
workforce. This leads to greater creativity and innovation and a stronger employer brand. For
example, tech company bitwise industries encourage diversity by removing unnecessary degree

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requirements. Instead, they focus on training people that display promise but lack the education
that most other tech companies require.

 Ensuring business continuity:

A strong talent acquisition strategy helps build a pipeline of top candidates and pays attention
to the potential future workforce needs of the business. Businesses that are potential future
workforce needs of the business. Business that is proactive when it comes to talent ensures
access to skilled people even in times of change or crisis. A great example of a proactive
organization is IBM. The company has partnered with several universities to train future data
scientist as demand for this type of role is increasing. They are cultivating relationships with
potential candidates early on to attract them after graduation.

 Effective succession planning and succession management:

With talent acquisition, businesses can plan ahead for the future and identify potential
successors for critical roles. These employees can be trained and mentored so that they are
ready to step in when needed.

 Boosting business performance:

Ultimately, placing top talent in the right roles helps organizations increase their effectiveness
and gain a competitive edge. This drives long-term growth and significantly contributes to
business performance.

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4.5 Talent Acquisition specialist job description:

A talent acquisition specialist is an HR professional who focuses on sourcing, indentifying and

hiring specific types of employees. Companies in competitive job markets that are growing and
changing hire these professionals to deal with recruiting for in demand jobs, such as tech,
healthcare and finance

Responsibilities of a talent acquisition specialist include the following:

 Building a qualified and diverse team of employees.

 Organizing and attending recruitment and networking events, conferences and job fairs.

 Anticipating each department’s annual and quarterly hiring needs.

 Working with hiring managers and HR to determine staffing needs.

 Creating job descriptions and interview questions tailored to each job vacancy.

 Determining the selection criteria for open positions.

 Screening candidate resumes and applications.

 Providing managers with feedback on resumes and applications.

 Finding potential talent through online channels, such as LinkedIn, Face book and
Professional networks.

 Planning the interview process and selection procedures that include everything from the
initial screening interview to the job offer.

 Building relationship with potential candidates and previous applicants.

 Collaborating with management to ensure hiring procedures are ethical and fair.

 Performing introductory interviews with candidates to gauge their interest levels,

personalities and salary expectations.

 Ensuring the on boarding process is a successful. Positive experience for new employees.

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4.6 Steps of Talent Acquisition:

Lead Candidate
Recruiting
generation sourcing

Pre-
Reference
Interview employeement
verification
test

Final hiring Onboarding

decision

Figure 10 – Steps of Talent Acquisition

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 CONCLUSION

As per research report there are four independent variables for three dependent variables that
are employee retention, employee performance, and organizational performance as following:

 Talent management

 Performance appraisal

 Learning and development

 Work life balance

There so many other employee engagement determinates or activities which help to enhance
employee’s engagement.

 Training and development

 Job security

 Talent acquisition

 Industrial relationship

 Team work and Team coordination

 Benefits and compensation

The defined employee engagement activities not have direct impact on organizational
performance but it has indirect impact on organization performance.

From this report and topic so many concept and functions of the Human Resource Management
is cleared.

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BIBLIOGRAPHY

83
 ANNEXURE
FEEDBACK FROM COMPANY GUIDE

Feedback Report Date:

Period of SIP:

Name of the Company:

Name of the Guide:

Name of the Department:

Name of the student:

Performance Standard:

Performance parameters Good Average Poor Remarks

Punctuality

Receptiveness

Initiative

Obedience

Subject/ Concept

Communication

Interpersonal skill

Any other Remark

Suggestions /Feedback:

Signature of the Company Guide:

84