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Talent Management as an HRM Challenge for Honda Motors Limited in Europe

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Contents
Introduction...........................................................................................................................................1
Role of Talent Management in Organizational Success.........................................................................2
Key Components of Effective Talent Management...............................................................................2
Significance of Talent Management in the Automotive Sector.............................................................3
Challenges in Talent Management for Honda Motors Limited in Europe..............................................3
Analysis and Discussion.........................................................................................................................6
Application of the 9-Box Grid Model for Talent Management..............................................................8
Conclusion...........................................................................................................................................10
References...........................................................................................................................................12
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Introduction
Talent management is one of the most important and pressing parts of human resource

management worldwide, and it continues to be one of the most pressing concerns in many

large organizations (Shafieian, 2014). 'Talent management refers to the systematic discovery,

development, and retention of individuals with high potential to perform crucial roles within

a company,' write Saadat & Eskandari (2016, p.2). It plays a vital role in driving innovation,

enhancing productivity, and maintaining a competitive edge in the market (Sparrow et al.,

2011)

Because of its reliance on talented personnel and technical improvements, the automobile

industry places a premium on talent management. Honda Motors Limited's success in Europe

is determined by its ability to attract, develop, and retain top people, assuring a proficient

workforce capable of driving innovation and reacting to changing market needs.

Organizations can use effective people management techniques to match staff skills and

capabilities with company objectives, resulting in greater performance, stronger employee

engagement, and increased customer satisfaction (Lewis and Heckman, 2006)

The goal of this discursive report is to look at the talent management problems that Honda

Motors Limited is facing in Europe, as well as the consequences for HRM. Honda Motors

Limited may secure a competitive advantage in the European automotive market by

identifying these difficulties and developing strategies to meet them successfully. The report

will examine Honda Motors Limited's specific internal and external difficulties, assess their

impact on HRM strategies, and make recommendations for effective personnel management

methods by applying 9-Box Grid Model for Talent Management. Honda Motors Limited will

be able to secure the availability of talented and motivated employees who will contribute to

the company's long-term growth and success by doing so.

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Role of Talent Management in Organizational Success

Research suggests that effective talent management practices positively impact organizational

performance. By aligning individual capabilities with business strategies, talent management

helps organizations achieve their objectives (Lewis and Heckman, 2006). It facilitates the

development of a competent and motivated workforce that can adapt to changing market

dynamics and drive innovation. Furthermore, talent management enhances employee

engagement, job satisfaction, and commitment, leading to increased productivity and reduced

turnover rates (Collings and Mellahi, 2009).

Key Components of Effective Talent Management

Effective talent management comprises several key components. First, there must be a clear

understanding of the organization's strategic objectives and the competencies required to

achieve them. This allows for targeted recruitment and selection processes to identify

individuals with the necessary skills and potential. Second, organizations need robust

performance management systems that provide ongoing feedback, coaching, and

development opportunities to maximize employee performance. Third, talent management

involves creating a learning and development culture that fosters continuous growth and skill

enhancement. This includes providing training programs, mentoring, and career progression

opportunities (Berger and Berger, 2011).

Significance of Talent Management in the Automotive Sector

In the automotive industry, talent management plays a crucial role in addressing the unique

challenges faced by organizations. This sector requires a skilled workforce capable of

keeping pace with technological advancements, meeting changing consumer preferences, and

driving innovation. Effective talent management ensures that automotive companies like

Honda Motors Limited have a pipeline of skilled employees to fill key roles, such as

engineering, design, and research and development. Additionally, talent management helps
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organizations build a competitive advantage by attracting and retaining top talent, allowing

them to stay ahead of competitors in a fast-paced industry (Mihalcea, 2017).

Challenges in Talent Management for Honda Motors Limited in

Europe
One of the major issues that Honda Motors Limited has in Europe is acquiring and keeping

outstanding personnel. The automotive industry faces significant competition for highly

trained workers, making it critical for firms to implement successful talent acquisition and

retention strategies. According to Bhattacharyya (2015), acquiring and keeping top talent is a

critical challenge for enterprises worldwide. Honda Motors in Europe cut the number of

colleagues from 158 to 149 in the previous fiscal year, according to their 2022 sustainability

report (Honda SR, 2022). This is a clear indicator that the corporation has struggled to retain

outstanding staff in prior years.

To solve the aforementioned difficulty, Honda Motors Limited can concentrate on developing

a strong employer brand. Creating an appealing workplace culture, competitive wage

packages, and chances for career growth and development are critical aspects in attracting

and retaining top personnel (Collings and Mellahi, 2009). Furthermore, Honda Motors

Limited can attract high-potential individuals by executing successful recruitment methods

such as using digital platforms, participating in industry events, and creating collaborations

with educational institutions (Bhattacharyya, 2015).

The automotive industry is experiencing a skills shortage and a skills gap, providing a

substantial challenge for Honda Motors Limited in Europe. Rapid technological

breakthroughs, such as electric and self-driving vehicles, necessitate the development of

specific skills that are in high demand but in short supply (Bhattacharyya, 2015). According

to Cohen and Zaidi (2002), a global scarcity of trained talent is a serious challenge for

automotive industry. This is obvious from Honda's 2022 annual sustainability report on
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training and talent management, in which Europe has been allotted the most yearly training

hours (15.29), trailing only China (Honda SR, 2022). The huge number of training hours

indicates a scarcity of skills and talents, implying that the organization must devote more

effort to improving in this area.

To address this challenge, Honda Motors Limited can invest in training and development

programs to bridge the skills gap. Collaborating with educational institutions and offering

internships, apprenticeships, and targeted training initiatives can help develop a pipeline of

skilled talent (Berger and Berger, 2011). Moreover, implementing effective knowledge

transfer programs and establishing partnerships with suppliers and industry associations can

facilitate the sharing of expertise and promote continuous learning within the organization

(Collings and Mellahi, 2009).

Employee engagement and motivation are also critical to the success of talent management

strategies. However, Honda Motors Limited in Europe confronts the difficulty of maintaining

high levels of employee engagement and motivation. According to Tortorella et al. (2021),

employee engagement levels in the automobile industry are rather low when compared to

other industries. This is evidenced by Honda Motors Limited's high attrition rate of 105.9%

in 2022 in Europe compared to other regions (Honda SR, 2022). The increase in attrition

rates from the previous fiscal year is a clear indication of lower engagement and motivation,

which leads to employees leaving the industry.

To enhance employee engagement, Honda Motors Limited can focus on creating a positive

work environment that promotes open communication, collaboration, and recognition.

Providing opportunities for skill development, autonomy in decision-making, and meaningful

work assignments can also contribute to higher employee engagement levels (Lewis and

Heckman, 2006). Additionally, implementing effective performance management systems

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that provide regular feedback, coaching, and career development opportunities can help align

employee goals with organizational objectives and boost motivation (Berger and Berger,

2011).

Honda Motors Limited has another significant challenge in Europe: succession planning and

leadership development. As experienced leaders retire or move on to other jobs, maintaining

a smooth leadership transition becomes critical. Organizations may suffer a leadership

vacuum and significant disruption in operations if appropriate succession planning and

leadership development programs are not implemented (Scullion and Collings, 2011). The

modest number of consolidated associates in Europe in comparison to other regions

demonstrates this difficulty. The number of consolidated associated vehicles for Europe fell

from 8,378 in the previous fiscal year to 3,851 in 2022 (Honda SR, 2022).

To address this challenge, Honda Motors Limited can establish formal succession planning

processes to identify high-potential employees and provide them with appropriate

development opportunities. This can include mentorship programs, leadership training, and

job rotations to develop a pipeline of future leaders (Collings and Mellahi, 2009).

Additionally, creating leadership development programs that focus on both technical and

managerial skills can help prepare employees for future leadership roles (Berger and Berger,

2011).

Finally, Honda Motors Limited has the problem of responding to shifting labour

demographics in Europe. With an aging workforce and an influx of younger generations,

businesses must handle the disparities in the requirements and expectations of various

demographic groups (Bhattacharyya, 2015). This is demonstrated by the fact that 100% of

colleagues in Europe are undergoing evaluation programs for Honda Motors Limited. In the
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fiscal year 2022, the region had a larger percentage of associates undergoing evaluation

programs than other regions (Honda SR, 2022).

To adapt to these changes, Honda Motors Limited can implement flexible work

arrangements, such as remote work options and flexible hours, to accommodate the needs of

a diverse workforce (Scullion and Collings, 2011). Additionally, promoting diversity and

inclusion initiatives can create an inclusive work environment that values employees from

various backgrounds, experiences, and perspectives (Collings and Mellahi, 2009). Offering

personalized career development plans and leveraging technology to facilitate knowledge

sharing and collaboration across generations can also help address this challenge

(Bhattacharyya, 2015).

Analysis and Discussion

To analyse the talent management challenges faced by Honda Motors Limited in Europe, it is

important to understand their current talent management practices. Honda Motors Limited

has implemented various talent management initiatives, including recruitment programs,

performance management systems, and training and development opportunities. The

company has a structured recruitment process to attract qualified candidates for various roles

within the organization. Performance management systems are in place to monitor and

evaluate employee performance, provide feedback, and identify development areas. Honda

Motors Limited also offers training programs to enhance employee skills and capabilities.

Additionally, Honda Motors Limited faces significant obstacles in talent management. The

competition for top talent in the automotive industry makes it challenging to attract and retain

skilled individuals. Additionally, the skills gap and talent shortage pose a barrier to acquiring

the right talent with specialized knowledge. The organization also struggles with employee

engagement and motivation levels, which can impact productivity and overall performance.

Furthermore, the need for effective succession planning and leadership development arises as
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experienced leaders retire, potentially leading to leadership gaps. Lastly, adapting to changing

workforce demographics requires Honda Motors Limited to address the differing needs and

expectations of various generations within the workforce.

Impact of Challenges on HRM Strategies

The identified challenges have a direct impact on Honda Motors Limited's HRM strategies.

To address the talent acquisition and retention challenge, the company may need to revise

recruitment strategies, enhance employer branding efforts, and offer competitive

compensation packages. The skills gap and talent shortage require the organization to invest

in training and development programs to bridge the gap and upskill the existing workforce.

Employee engagement and motivation can be improved through the implementation of

effective performance management systems, employee recognition programs, and career

development opportunities. Succession planning and leadership development initiatives are

necessary to identify and develop future leaders within the organization. Finally, adapting to

changing workforce demographics calls for HRM strategies that promote diversity and

inclusion, flexible work arrangements, and personalized career development plans.

Identification of Key Strengths and Weaknesses in Talent Management

Through the analysis of Honda Motors Limited's talent management practices, several

strengths and weaknesses can be identified. The company's structured recruitment process

and training programs demonstrate a commitment to attracting and developing talent. The

performance management systems help provide feedback and monitor employee

performance. However, weaknesses may include a lack of emphasis on employee

engagement and motivation, limited succession planning efforts, and potential gaps in

addressing the needs of a diverse workforce.

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Application of the 9-Box Grid Model for Talent Management

The 9-Box Grid Model is one appropriate talent management model that can be used to

handle Honda Motors Limited's difficulties in Europe. The 9-Box Grid is a graphical tool for

evaluating and categorizing employees based on their performance and potential. It assists

firms in identifying high-potential employees and developing strategies for their career

development and succession planning (Scullion and Collings, 2011). Using the 9-Box Grid

Model, Honda Motors Limited can assess its current workforce and identify individuals who

exhibit high potential for future leadership roles or specialized positions. The model evaluates

employees based on two dimensions: performance and potential. Performance measures the

current level of an employee's job performance, while potential assesses their ability to take

on higher-level responsibilities and grow within the organization.

By plotting employees' performance and potential on the 9-Box Grid, Honda Motors Limited

can categorize them into different segments. The segments include:

High Performers with High Potential: These individuals are top performers who

demonstrate strong potential for leadership roles or critical positions. They should be

provided with accelerated development opportunities and targeted succession planning to

nurture their growth and ensure their retention.

High Performers with Limited Potential: While these employees excel in their current

roles, their potential for growth may be limited. Honda Motors Limited can focus on

providing them with opportunities for lateral movement or specialized roles to maximize their

contribution and job satisfaction within the organization.

High Potential with Limited Performance: These employees exhibit high potential but may

not currently meet performance expectations. They require additional support and

development to enhance their skills and capabilities. Honda Motors Limited can provide
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coaching, training, and mentoring to help them improve their performance and unlock their

potential.

Average Performers with Moderate Potential: Employees in this segment demonstrate

satisfactory performance but may have limited potential for advancement. Honda Motors

Limited can offer development opportunities to enhance their skills and provide clarity on

their career paths within the organization.

Low Performers: These individuals have both limited performance and potential. Honda

Motors Limited may need to assess whether these employees can be coached and developed

to improve their performance or consider alternative options such as reassignment or

performance improvement plans.

By applying the 9-Box Grid Model, Honda Motors Limited can gain insights into its talent

pool and identify individuals who require specific development interventions. This model

helps in aligning talent management strategies with the organization's strategic goals,

improving succession planning, and ensuring the right individuals are in the right roles

(Collings and Mellahi, 2009).

Moreover, the 9-Box Grid Model supports the identification and nurturing of future leaders,

addresses the skills gap and talent shortage by developing high-potential employees, and

enhances employee engagement through personalized development opportunities (Berger and

Berger, 2011). By focusing on talent development based on performance and potential,

Honda Motors Limited can foster a culture of continuous learning, attract and retain top

talent, and ensure a competitive advantage in the European automotive market.

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A version of the General Electric nine-box talent measurement grid (Lee, 2018)

Conclusion
In conclusion, Honda Motors Limited in Europe faces considerable hurdles in talent

management. Attracting and retaining top personnel, managing the skills gap and talent

scarcity, improving employee engagement and motivation, implementing effective succession

planning, and responding to changing workforce demographics are all challenges for the

company. To solve these issues, strategic methods and the deployment of applicable models

are required.

Honda Motors Limited may solve the difficulty of attracting and maintaining top people by

focusing on developing a strong employer brand, delivering competitive remuneration

packages, and adopting successful recruitment tactics (Bhattacharyya, 2015). Bridging the

skills gap and talent shortage can be achieved through investments in training and

development programs, collaboration with educational institutions, and knowledge transfer

initiatives (Cohen and Zaidi, 2002). Enhancing employee engagement and motivation

requires creating a positive work environment, providing career development opportunities,

and implementing effective performance management systems (Tortorella et al., 2021).

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Succession planning and leadership development can be strengthened through formal

processes, mentorship programs, and leadership training (Scullion and Collings, 2011).

Adapting to changing workforce demographics necessitates the promotion of diversity and

inclusion, flexible work arrangements, and personalized career development plans

(Bhattacharyya, 2015). By applying the 9-Box Grid Model, Honda Motors Limited can

effectively assess its workforce, identify high-potential individuals, and develop targeted

strategies for talent development and succession planning (Scullion and Collings, 2011).

In order to address these challenges and enhance talent management practices, Honda Motors

Limited must leverage its strengths, such as structured recruitment processes, training

programs, and performance management systems. Simultaneously, the organization needs to

address weaknesses, including limited emphasis on employee engagement and succession

planning efforts.

References
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sustainable competitive advantage by selecting, developing, and promoting the best

people (No. 273113). McGraw-Hill.

Bhattacharyya, D.K., 2015. The magnetic organization: Attracting and retaining the

best talent. SAGE Publications India

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Cohen, M.S. and Zaidi, M.A., 2002. Global skill shortages. Edward Elgar Publishing.

Collings, D.G. and Mellahi, K., 2009. Strategic talent management: A review and

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