talent acquision motorola

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

Pallavi Srivastava and Jyotsna Bhatnagar

Abstract

Purpose – With talent management becoming an area of growing concern, there is a need for

practicing due diligence in their talent acquisition strategy. To meet the demands for talent with a

specific skill set in a given timeline, the organizations are adopting innovative recruitment practices to

find the correct skill sets and competencies. The purpose of this paper is to discuss some of these

practices and also to investigate talent acquisition and its relationship to levels of employee

engagement.

Design/methodology/approach – The investigation is carried out with the aid of a case study on

Motorola India- Mobile Devices Business.

Findings – By reflecting recruitment and culture need fit, an environment is created at the workplace

where employees feel more passionate about their work and exhibit the behaviours that organizations

need to drive better results.

Research limitations/implications – This is a qualitative study which could be further enriched by

empirically measuring person-organization fit and its impact on the level of engagement.

Practical implications – It is suggested that organizations should make efforts to build effective,

practical and holistic talent strategies that are not only able to attract talent but also address employee

engagement and the retention of key skills thus boosting the productivity and business performance.

During talent acquisition, due diligence is required in assessing the person-organization fit and

providing an enabling work environment to keep the talent anchored to the organization.

Originality/value – The paper highlights the impact of due diligence in talent acquisition, which is the

most crucial problem faced by the organizations in the present times, by means of a case study.

Keywords Due diligence, Recruitment, Employees, Job satisfaction, Telecommunications, India

Paper type Case study

Introduction

Markets are increasingly recognizing human capital as a source of value for firms and

shareholders (Cairncross, 2000) as talent is rare, valuable, difficult and hard to substitute

and organizations that better attract, select and retain this talent outperform those that do not

(Barney and Wright, 1998). Technological advances and global competition are the main

drivers of changes in employment patterns leading to intense competition between

employers to attract and retain talented workers (Osborn-Jones, 2001). Staffing acts as a

key strategic opportunity to gain competitive advantage (Ployhart, 2006). Today an

organization’s success is directly linked to the talent it can recruit. Recruitment is critical not

only for sustained competitive advantage but also for basic organizational survival (Taylor

and Collins, 2000). Competition and the lack of availability of highly talented and skilled

employees make finding and retaining talented employees a major priority for organizations

(Flegley, 2006).

In the networked global economy, top talent is highly mobile. Talent is scarce resulting in a

tight labour market hence it has numerous choices especially in knowledge based and

DOI 10.1108/00197850810886496 VOL. 40 NO. 5 2008, pp. 253-260, Q Emerald Group Publishing Limited, ISSN 0019-7858 j INDUSTRIAL AND COMMERCIAL TRAINING j PAGE 253

Pallavi Srivastava is a

Doctoral Candidate (HRM)

and Jyotsna Bhatnagar is

Associate Professor (HRD),

both based at the

Management Development

Institute, Gurgaon, India.

This paper was presented atthe Asia Pacific Researchers inOrganizational Studies(APROS) 12 Conference,December 9-12, 2007 atManagement DevelopmentInstitute, MDI Gurgaon, India.

service driven organizations. Organizations are facing great competition in chasing the

same skill set. Organizations in the USA reflect a continuing trend towards modest increases

in in-house knowledge intensive IT staffs at most organizations . . . but in most ‘‘large’’ and

Fortune 500 organizations expect to moderately increase staffing levels by 2008. Most SMEs

anticipate dramatic increases in hiring (Zwieg et al., 2006, p. 102).

According to a survey based on 33,000 employers from 23 countries, 40 per cent of them

had difficulty in finding and hiring the desired talent (Manpower Inc., 2006) and

approximately 90 per cent of nearly 7,000 managers indicated talent acquisition and

retention were becoming more difficult (Axelrod et al., 2001). Therefore they are putting all

their strength towards finding the right talent with specific skill sets and competencies, hiring

it at any cost and retaining only those whom they want. It is crucial for all companies to

develop a talent strategy that goes deep into the organization and is able to supply the talent

to meet a changing business climate. It is important to recognize that hiring is not simply a

single decision made by the hiring manager but a system; one that comprises definite

stages. Decisions are made at each stage, starting with the creation of the position

requirements through the presentation of the final slate of candidates and the ultimate hire.

Talent acquisition

The ‘‘war for talent’’ has focused on acquiring and assimilating ‘‘the best’’. Human resources

play a significant role in reaching organization effectiveness and performance (Huselid,

1995). Talent has become the key differentiator for human capital management and for

leveraging competitive advantage (Bhatnagar, 004). With better talent acquisition,

employee engagement improves and so does the productivity. Maximizing team

engagement, motivation, and retention through due diligence in talent acquisition is vital

in today’s highly competitive environment. Only a talent resourcing process, that is

well-defined and well-executed from start to finish yields consistent, compliant results – and

is a competitive advantage in the war for talent (Ronn, 2007).

With talent acquisition becoming an area of growing concern in the literature, this paper

investigates talent management and its relationship to levels of employee engagement

through the lens of a case study. Employee engagement is an indicator of high productivity

and employee retention as reflected in extant literature.

Human capital staffing strategy

The investments in human capital have been drawn on human capital theories which

examine under which condition such investments are profitable. The concept of human

capital theory as specified by Romer (1990) defines it as the amount of total stock of human

capital that an organization, country or economy has. Fitz-enz (2000) defines human capital

as the traits one brings to the job: intelligence, fulfilling work energy, a generally positive

attitude, reliability and commitment. The economy with a larger stock of human capital will

experience a faster rate of growth. Thus, Human Capital Theory concentrates on the direct

economic effects of human capital investments in particular.

Staffing is defined as the process of attracting, selecting, and retaining competent

individuals to achieve organizational goals (Ployhart, 2006). This has been also reflected in

extant SHRM literature. For example, researchers like Dewar and Werbel (1979) have

adopted a universalistic perspective and have argued for a best practice approach to

SHRM (Huselid, 1993, 1995; Pfeffer, 1994). While advocators of the contingency approach

(Schuler and Jackson, 1987) believe that in order to be successful, the organization’s HR

policies must be consistent with the other aspects of the organization. Baird and Meshoulam

‘‘ Technological advances and global competition are the maindrivers of changes in employment patterns. ’’

PAGE 254 j INDUSTRIAL AND COMMERCIAL TRAININGj VOL. 40 NO. 5 2008

(1988) suggest that HR practices must fit the organization’s stage of development (external

fit) which implies informal, more flexible styles of HRM amongst start-up firms and more

formal and professionalized systems as the firms mature and increase the number and

range of employees. Internal fit ensures that individual HR policies are designed to fit in and

support each other. ‘‘Best-fit model’’ suggests that HR strategy becomes more effective

when it is designed to fit certain critical contingencies in the firm’s specific context.

According to the configurational approach, the HR system of the organization must develop

a horizontal (internal consistency of the organization’s HR policies or practices) as well as a

vertical fit (congruence of the HR system with other organizational characteristics) (Wright

and McMahan, 1992).

Johnson (2001) states that if people are culturally aligned to the business, hire them before

someone else does – even if the firm does not have a job for them. A proactive approach

helps. Michaels et al. (2001) propose the development and communication of the employee

value proposition (EVP) to attract and retain talented employees. In cultivating a high

performance workforce, both assessment of employees to ensure the best match to the job

and the company as well as assimilating them to ensure successful integration into the

workplace, the culture of the organization and specific roles and responsibilities are equally

important (Morgan, 2004).

Innovative practices in employer branding for talent acquisition

Employer branding has become a key strategy (Brewster et al., 2005) to attract and retain

the right kind of talent as people want to work for great brands. It avoids mismatches

between employer and employees that lead to job changes. According to Knox and

Freeman (2006) consumers are potential recruits and the employer brand is the

augmentation of recruitment services provided by recruiters as they espouse the firm’s

attributes and values during the recruitment process. The employer brand image is the

image associated with an organization uniquely in its role as an employer. Creating a positive

employer image radiates to the community at large and attracts potential job applicants.

Improving the external and internal communication, signals to the potential talent about the

total employee experience there. The word of mouth publicity is most effective way of

recruiting. Fortune’s – Best Companies to Work For – survey suggests that developmentally

oriented organizations are more likely to be seen as attractive employers (Fortune, 2005).

Providing the employees with the knowledge and skills to do their job and further

recognizing and rewarding the knowledge and hard work of the employees, providing a safe

and stable work environment, giving them opportunity to be creative and entrepreneurial are

important tasks done by a company to retain employees. By giving them an environment

where they do not have to worry about job security, they get more time and energy to

concentrate on the important aspect of the organization.

The organizations are using different baits to target the talent. Bhatnagar (2003) has

mentioned amenities like golf courses, swimming pools, aerobics centres, gymnasiums etc.

and the practices of paid sabbaticals, to sending its employees to leading international

management programmes, representatives of the organization visiting employees’ homes

and inviting them to the workplace to get a feel of about what employees do at work. It builds

a sense of pride and belonging-ness to the families.

Networking is also a preferred method of recruiting top job candidates today. Organizations

encourage their employees to bring their acquaintances to join their organization. It serves a

dual purpose. First, the employees better know about the requirements of their organization

and second it promotes teamwork. Organizations also use a combination of tests and

personality profiling for the selection of candidates.

Employee engagement

The attributes of the job/organization and fit with the job/organization influences intentions

and behaviour (Ployhart, 2006) through employee engagement. The best indicator of a

company’s health (Business Week advice column), in the words of former GE Chairman and

CEO Jack Welch is:

VOL. 40 NO. 5 2008 j INDUSTRIAL AND COMMERCIAL TRAININGj PAGE 255

Employee engagement first. It goes without saying that no company, small or large, can win over

the long run without energized employees who believe in the mission and understand how to

achieve it (Bhatnagar, 2008).

According to researchers (Martel, 2003), in order to obtain high performance in

postindustrial, intangible work that demands innovation, flexibility, and speed, employers

need to engage their employees. Engagement requires attention to several critical activities:

communication, supervisory relationships, empowerment, and performance management.

Consequently, employee engagement has a substantial impact on employee productivity

and talent retention (Bhatnagar, 2007).

Employees feel engaged when they find personal meaning and motivation in their work,

receive positive interpersonal support, and function in an efficient work environment. There

should not be a gap between what worker say what they want from the organization and what

they actually get. This leads to disengagement.

The work environment should be such that it enables them to put in their best efforts. It

should not only be less intimidating to the new hires but also the condition of work should be

appealing (Branham, 2005). Other facilities like flexible work hours, work-life balance, paid

holidays, buying lunches from restaurants, birthday celebrations, family days etc., also

keeps, them rooted to the organization (Bhatnagar, 2003).

Communication strategy is an important element in bringing transparency in the

organization. By documenting their procedures manual, the different policies and

processes the employees come to know what is expected of them and how they should

do it. Similarly organizations consciously make an effort to meet the expectations of their

talent pool. This leads to strengthening of the psychological contract and keeps them

energized and secured. More training opportunities to hone their skills and a clearly defined

career path, also lead to engagement and retention of the employees. If organizations

maintain congruence between the firms internal and external image, the employees are able

to ‘‘live the brand’’ and reinforce corporate values and expectations of performance among

new and existing employees (Ind, 2001).

By reflecting recruitment and culture need fit, an environment is created at the workplace

where employees feel more passionate about their work and exhibit the behaviours that

organizations need to drive better results. It gives them a continuous work experience that is

difficult for competitors to replicate. (Bhatnagar, 2007). This is reflected in the following case

study based on the Mobile Devices Business of Motorola-India (Srivastava and Bhatnagar,

2008).

Case

Motorola is amongst the leading handset players in India with its office based at its

headquarters in Gurgaon. It was one of the first telecom companies to enter the country and

started selling mobile phones here in 1995. In spite of being an early mover, it lost out to its

rival Nokia due to an improper product portfolio, inefficient distribution system, lack of

branding, improper market campaigns, non-focus on people management strategy and an

ill-equipped team. Nokia had a better distribution system, a strong brand presence and also

had a product portfolio customized for the Indian customers, leaving Motorola far behind it.

According to Gartner India estimates, Motorola’s market share kept on falling and was very

low, just 1.8 per cent, in early 2005.

‘‘ Employees feel engaged when they find personal meaningand motivation in their work, receive positive interpersonalsupport, and function in an efficient work environment. ’’


When Ed Zander became the chairman and chief executive officer of Motorola Inc. in

January 2004, he laid his focus on successfully reorganizing the company, introducing

several exciting new products and on innovation and operational efficiency. As the Indian

telecom market was experiencing rapid growth, Zander sensed an opportunity. On

22 August, 2005, Zander established India as its headquarter for the high growth markets

(HGM) which covers 107 countries across Africa, the Middle East, Indian sub-continent,

South East Asia and Australia. This privilege was due to the country’s strategic importance to

Motorola’s global operations and the highest growth rate and potential.

Strategy had to be developed to regain and then to rule the market. Speed of functioning

embedded in the right kind of talent pool was felt pertinent. Pressure to perform was

increasing. A core team was created to harness the ‘‘India factor’’. Allen Burnes, Vice

President, HGM, Mobile Devices, Motorola Inc. was appointed to head this turnaround. He

came to India along with his team of senior Directors who had the experience of turning

around a similar situation in the emerging markets of Russia. An entirely new team was

created to handle the mobile devices division under the supervision of Motorola’s emerging

marketing expert Allen Burnes to bring a fresh perspective in implementation of the plans.

The HR leader was to decide whether to build or to buy talent. Since speed was required and

time was at a premium, it was decided to aggressively buy the right people.

There was an aggressive out-of-the box buying of talent from all sectors including the lateral

‘‘buy-ins’’. As an HR strategy they left out people from No.1 players in the corporate world.

They looked for people who had worked in turnaround situations and had the experience of

beating No.1 players. They poached employees who were hungry to face challenges and to

perform. They hired people with technical competency who had the ability to fight back and

had a passion and energy to work. According to Mr Raghuram Reddam, the HR Director for

HGM and Mobile Devices Business, the culture fit was an important criterion for talent

acquisition.

From a lean strength of just eight employees in 2005, the number rose to 75 employees –

who were ready to fight, were passionate, hungry and willing to perform. Excitement was

very high and in order to build it further and sustain the energy of the recruits, their

onboarding was done through ‘‘Prarambh’’. It was customised to the Indian setting. The

success stories of Indians like Padmashree Warrior, Mohan Kumar etc., who had done

extremely well at Motorola India were narrated to them, to stoke the fire to perform.

In two interventions called ‘‘Hai Dum-I’’ and ‘Hai Dum-II’, and a boxing ring was

organized.They brought in celebrity cricket commentator Harsha Bhogle to take this

forward. The employees were challenged to perform and were encouraged to deliver results

in performance at any cost. The Motorola culture and values were ingrained in them through

the iMOTO campaign which introduced them to the qualities to be possessed by a

Motorolan. These communication strategies succeeded in motivating them further.

The HR team thought of innovative ways to recognize and energize the talent pool. Their

strong focus was on implementing the HR vision and mission, on employee growth,

happiness, involvement and high energy. The career prospects attracted employees to

Motorola. Recognition for their efforts kept the employees further engaged and energised.

The team was very lean with people having multiple accountability and multiple

responsibilities but the trajectory of growth and challenges that kept them motivated and

perform against deadlines The growth was happening exponentially. This achievement was

so exciting that it kept the employees fully engaged.

At Motorola, speed and delivery at any cost were to be honoured under any circumstances.

Its enabling 24 £ 7 culture supported by flexi timing, telecommuting and fun at work helped

the team to perform. The Bravo and ‘‘on the spot’’ recognition awards rewards that included

cash prizes, certificates of merit and recognition from the General Manager onwards were

given to star employees for their outstanding performance, outstanding behavioural and

team competency during each quarter. Quarterly ‘‘town hall’’ meetings helped to

communicate current and future business strategies and also recognize top talent.


Towards the end of 2006, MDB established a Sales Academy to train and hone their skills,

conducted three day workshops, carried out OD focussed functional interventions and

diagnostic exercises with leaders to find out the vision they had for their team, the various

tools of engagement they need to employ, how they wanted the execution to happen.

Reddam, challenged them and incited their direction setting, on vision, interaction, group

dynamics, execution etc. The leadership team was taken away to Jaipur’s Sumodh Palace

for a three day vision building exercise and to finalise the business strategy for MDB. The

organization Development diagnostics were probed into by a leading OD consultant of

India.

Soon, Motorola developed an innovative and rapidly expanding product portfolio. The

marketing team of MBD was known as one of the best marketing teams in India. The sales

team was adjudged as the Best Business Team in Motorola Global Mobile Devices Sales

Conference. MDB also got the recognition for being the product champions, Best Brands

etc. Until the beginning of 2005, brand Motorola was nowhere. By 2006 it was known among

top five brands in India. By the end of 2006 MDB reflected a dramatic eight fold growth of

about 14 per cent market share (www.mobilepundit.com/2006/11/29/motorola-has-14-

market-share-in-india/ (accessed 6 October, 2007).

In the present circumstances, the star talent of Motorola is constantly eyed by the

competitors. Now that the excitement of the turnaround is over, how to keep the acquired

talent constantly engaged is the challenge. For, if the organization is not able to provide them

with the challenges they are constantly looking for, they would be distracted towards their

competitors. In a market where skill and right attitude is in low supply, retention is a major

challenge for HR. For this purpose the whole organization is mapped to find out the critical

talent for MDB through a robust risk assessment model and a robust risk analysis format. Still

the present dilemma before the HR at Motorola India-MDB is to keep on providing the

challenges keeping in mind their hunger for challenges and to sustain their passion and

energy. Some other issues like career planning and management and capability building of

the employee also need attention.

Conclusion

The aim of the current study was to highlight the impact of due diligence in talent acquisition

which is the most crucial problem faced by the organizations in the present times. The

practices which are used innovatively by one company become ‘‘tablestakes’’ soon as they

are followed by more or less every organization in the industry. But this is important for the

organizations to keep their own goals and culture in mind, based upon which they should

design their recruitment strategies. One strategy does not support every organization. The

better is the recruitment-culture-need fit, the higher would be the engagement and lesser will

be the attrition. In fact it is also looking at the need to carry out employee branding (Berthon

et al., 2005), where signalling theory may provide an important theoretical framework.

Motorola went in for the employee brand for managing a business challenge and that is what

made the difference.

Very few academicians (Joo and Mclean, 2006) have looked into the theoretical and

operational schemata of employee engagement. At the nomonological level, there seems to

be a construct contamination from the fields of employee satisfaction, employee

commitment, organizational citizenship behaviour, employee involvement (Bhatnagar,

2007).

Implications

We suggest that organizations should make efforts to build effective, practical and holistic

talent strategies that are not only able to attract talent but also address employee

engagement and the retention of key skills thus boosting the productivity and business

performance. Resourcing the best candidates from a bigger talent pool rather than the

available applicants would result in a more efficient talent acquisition. Organizations should

not ignore that during talent acquisition the personal goals and values of the applicant

should match that of the organization to make a better cuture-fit. This would help in


anchoring the employees to the organization and reduce attrition. Managers should strive to

create an environment which induces passion among the employees about their work and

leads to the behaviour that organizations need to drive better results.

Organizations should follow the contingency approach as given in the SHRM literature in

designing their human capital practices wherein it provides a unified context within which

organizations operate, and at the same time, allows for differences at the national and/or

organizational level, due to cultural and institutional factors like ownership structures, labour

markets, the role of state and trade unions etc. (Brewster, 1999).

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Corresponding author

Pallavi Srivastava can be contacted at: [email protected]


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