Question 4 Read the article below and answer the questions that follow. Striking

Question

Question 4 Read the article below and answer the questions that follow.

Striking a right balance in external, internal talent About 75%-80% of Malaysian corporations should be filled by internal promotions and the remaining 20% by external hires, said Permodalan Nasional Bhd (PNB) chairman Tan Sri Abdul Wahid Omar. He said that there is a need for Malaysian corporations to strike the right balance between internal and external talent, saying that one in every four to five positions should be filled externally. “I believe in nurturing your talent or to „grow your own timber?. This is important to provide the employees with good career progression opportunities. However it is also important to bring in external talent from time to time, to refresh the organisation and to bring in external perspective,” Wahid said at the Malaysia Leadership Succession Summit recently. He said it is also important to consider imposing a time limit for board members to serve. “While long serving CEOs provide stability to the organisation, there is also the risk of the leader and his organisation slipping into complacency. A rule of thumb, no one should be in the same position for more than 10 years, whether as ahead of department or a CEO. If the person is good, he should be moved to a bigger role or a different organisation,” said Wahid. He said corporations should also develop young talent as not many young people are given such opportunity now. Wahid was the CEO of UEM-Renong group when he was 37 years old. Other aspects of developing talent and leadership in Malaysia includes the need to select the right leader, focusing on integrity, competency and humility; the need to put into place a proper succession planning and talent review process to cover key positions; using diversity in terms of gender, skills, ethnicity, age and even nationality for multinational organisations which can be a source of strength. (Source: Sunbiz, the Sun, 7 February 2018)

(a) Discuss Tan Sri Abdul Wahid?s suggestion that only one in every four or five positions should be filled externally. (15 marks)

(b) Explain why succession planning and talent review process is important. (10 marks)

Explanation / Answer

(a) Tan Sri Abdul Wahid’s suggestion states that organization should focus on organic employee growth. This is based on the fact that there are several benefits of organic growth when it comes to HR. Some of them are

(b) Succession planning and talent review process are integral functions of HR. They provide indicators of growth in the company not only from the business point but also within the organization from HR perspective. Few of the reasons why these processes are important are

Succession planning

Talent review

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