Human Resource Management December 2026

Q.1: A rapidly growing multinational technology firm has seen an uptick in employee turnover, particularly among high-performing engineers. Exit interviews reveal dissatisfaction with limited career progression and a lack of targeted skill development. The HR manager is tasked with addressing this talent retention issue by devising an intervention that also ensures employees’ goals are aligned with the firm’s broader innovation strategy. The company’s HR department is well-structured, with dedicated teams for talent acquisition, learning and development, and performance management, providing a solid foundation for new initiatives. How should the HR manager apply high-performance work system principles to design and implement an integrated training and career development framework that improves retention and aligns employees’ goals with the firm’s innovation strategy?

Answer:

Introduction:

The issue of employee retention is crucial for any growing technology company since the loss of skilled engineers can significantly impact the productivity, innovation, continuity and organisational knowledge. In the presented case, high performers leave the company due to the lack of career opportunities and insufficient development of relevant skills. Therefore, the manager needs to consider an integrated approach to train, evaluate and plan the employees' careers instead of separating these concepts. High-Performance Work System (HPWS) principles can be applied in order to establish the connection between people, processes, and performance management, ensuring that employees obtain the necessary capabilities for the future and that the company obtains highly motivated and competent specialists. Since there are dedicated HR teams for recruitment, learning and development, as well as performance management, these professionals can cooperate in order to devise an integrated approach.

 

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Q.2 (A): A global consumer goods firm prides itself on its comprehensive succession planning, regularly identifying high-potential employees (HiPos) through assessments and grooming them for future leadership through targeted development. However, recent diversity reports reveal that the same group of employees is repeatedly chosen as successors, raising concerns about bias, missed potential, and a lack of innovation in leadership ranks. Evaluate whether the current succession planning approach is appropriate for building an equitable and effective leadership pipeline, considering its implications for diversity and inclusion.

Answer:

Introduction:

Succession planning is a key human capital practice that enables the identification and development of future leaders. In the given consumer goods company, the systematic selection and development of high-potential employees (HiPos) support the leadership continuity. However, the repetition of the selection of the same individuals as the successors faces numerous difficulties. This may be related to discrimination, lack of diversity, and de-motivation of other workers. Thus, the succession planning practice needs improvement to ensure the absence of bias in the choice of successors and promote the diversity and inclusion.

 

Q.2 (B): A healthcare provider recently introduced a performance management approach emphasizing continuous development and personalized growth plans, linking potential appraisal with career advancement opportunities. However, some staff argue that the system favors extroverted or highly visible employees, while introverts and those performing critical but less visible roles feel overlooked. Furthermore, managers struggle to apply consistent criteria for assessing future potential. Evaluate whether potential appraisal is an appropriate basis for employee development and advancement in this context, considering the identified biases and inconsistencies.

Answer:

Introduction:

Potential appraisal is a practice carried out by various organizations to determine the employees’ potential to take up greater responsibility. Once used in health care where the employees engage in tasks that are both open and hidden, then the application becomes biased leading to unfairness. The organization’s strategy of potential appraisal and its relationship with individual developmental plans is an appropriate initiative to take in order to nurture talents and skills. On the contrary, this method is flawed and should not be the only standard for making promotions.