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A STRATEGIC DIFFERENTIATOR IN GLOBAL COMPETITION: TALENT MANAGEMENT Gina…
A STRATEGIC DIFFERENTIATOR IN GLOBAL COMPETITION: TALENT
MANAGEMENT
Gina Regis A01366689
Talent
“The sum of a person's abilities, intrinsic gifts, skills, knowledge, experience, intelligence, judgment, attitude, character and drive. It also includes his or her ability to learn and grow" defined by McKinsey & Company Management Consulting film
Most large international businesses consistently define talent as employees who exhibit high potential for both today and tomorrow.
In an individual context, talent is defined as “the set of superior capabilities, the inherent power which determines he thinking, feeling and acting quality of the individual, is reflected in productive practices when turned into behavior, potentially raises the individual to a level of mastery, and manifests itself as high performance and success” (Akar, 2012: 32).
Talents are those who show a high performance and keep improving in their current position, they are mobile and have potential and desire to improve more in other significant positions as well (Makela, Björkman and Ehrnrooth, 2010 : 137).
Company Management Techniques
Total Quality Management, Change Management, Crisis Management, Downsizing, Learning Organization, Restructuring, Conflict Management, Stress Management, Outsourcing, Em-powerment, Cross Cultural Management (Çavuş, 2008: 22)
Talent Management Approach have been gaining traction since 1990s (Şahin, 2015: 8).
Impact
NEGATIVE: Companies still have difficulty in filling key positions, which limits their growth potential considerably. Also talent processes may have lost the relevance with what the company needs to grow and spread in new markets.
POSITIVE: Companies which see the future with confidence marry functionality, rigorous talent processes that support strategic and cultural objectives, and vitality, an emotional commitment by management that is reflected in daily actions. This enables them to develop and keep key employees and fill positions quickly to meet evolving business needs.
Functionality
: Is about focusing the company’s talent management processes on producing certain outcomes, also refers to the processes themselves, which enable a company to put the right people with the right skills in the right place at the right time
Processes must strongly support objectives such as driving performance and creating an effective climate (Inseparably connected). If the company fails to create the appropriate climate internally, it will not be able to achieve strategic objectives and reach the desired growth.
The talent management process should start with creating talent pools to monitor and manage careers of highpot ential employees within the company
An ethical talent management practice requires close attention to the effectiveness of recruiting processes Also, the system requires an evaluation of the success rate of key
promotions.
Ensuring accountability
Companies focus on capital, information technologies equipment and top quality processes and act accordingly, butthe most important factor of all is human. The efficiency of the human resource is the factor that determines the performance of the organization.
Leaders have long said that people are their companies’most important assets, but making
the most of them hasacquired a new urgency
All stakeholders should be held accountable for doing their part to make talent management systems and processes robust, and for maintaining honesty in the process, because it's both a leadership responsibility and a business process. Also, they should be held accountable for identifying and developing the company’s current and future leaders, they should be evaluated and compensated for their contributions to building organizational competence, not just on their performance.
However, an individual is not a bad employee who needs to be dismissed from the company just because he or she failed to show the desired performance. It merely means he or she is the wrong person for the job (Drucker, 2004: 121).
Developing Commitment
:
Principles such as hiring at entry level and building from within have undeniable effects on developing commitment.
It is a useful practice to establish a college intern program that offers the chance to assume real responsibility by working on important projects
Creating Engagement
Sending new hires to events organized by the company will give them a chance not just to meet one another and members of the leadership team, but also to share their ideas about the company.
Engagement reflects the degree to which company leaders show their commitment to the details of talent management, the company should engage employees in their career development the day they start with the company, university recruiting is an important activity
Vitality
: Is about the attitudes and mindsets of the people responsible for those processes.
The vitality of a company’s talent management processes is a product of 3 characteristics:commitment, engagement, and accountability (Ready and Conger, 2008 : 86-90).
Authority and Responsibility in Talent Management
: A company’s talent management process consists of certain stages, and it is only as strong as the weakest link of these executive process (Ready and Conger, 2008: 78).
Leaders should develop a mentality to build the momentum to grow talent and enhance performance within the organization and adopt a clear attitude which will allow everyone in the organization understand talent is required for the performance of the job (Cheesese et al., 2008 : 222).
Human resources departments are also responsible for talent management.
Talent management should be the vision and mission of human resources managers (Atlı, 2010: 12)
One of the main responsibilities of the human resources team should be effective communication and coordination with top- and middle-level management and talent managers about talent management practices (Akar, 2012 : 63).
Talent management should be one of the top priorities within specific strategies set out by the human resources management so that the organization may achieve the objective of “winning the war for talent” (Armstrong, 2006: 126)
It seems that talent management stands out as one of the most significant and critical fields of practice for human resources management so that the change and transformation process may achieve its goals promptly (Ala-yoğlu, 2010: 77).
Talent and Company Environment
:Executives may take the following measures to improve socialization (Goffee and Jones, 1999: 38 – 40):
The will to win should be stimulated: hire and promote individuals with drive or ambition, set high standards for performance, and celebrate success in high-profile ways.
Commitment to shared corporate goals should be encouraged: move people between functions, businesses, and countries to reduce strong subcultures and create a sense of one company.
Reducing formality between employees will encourage socializing.
Arranging casual gatherings inside and outside the office: It is also critical to make these interactions enjoyable so that they create their own positive, self-reinforcing dynamic.
Recruiting compatible people -people who naturally seem likely to become friends, will promote the sharing of ideas, interests, and emotions. Trying to find employees
who share interests and attitudes can even be stated as an explicit goal.
Advantages of talent management
The advantages of talent management may be listed as follows:
• Talent management has statistically proven effects on profitability.
• Talent management has the highest effect on talent level.
• Talent management illuminates the learning process.
• Talent management is significant in terms of increasing work quality and competency acquisition (Bethke Langenegger et al. 2010: 16).
• Talent management show organizations how their human capital is used (Whelan, Collings & Donellan, 2010 : 491)
Rewards given to those with exceptional performance within the framework of talent management have an important role in establishing behavior patterns and ensuring behavioral change (Russo, 2010 : 61).
Another advantage of talent management is the elimination of subjective treatment. One of the most important problems experienced within a company is favoritism in promotions and placements.
Talent management contributes to the elimination of the favoritism problem when implemented successfully in both public and private sectors or both SMEs and large corporations (Şahin, 2012 : 69).
Disadvantages of Talent Management
: The most significant disadvantages for companies emerge when the company fails to build loyalty and commitment.
Employees who are viewed as ordinary may be discouraged, which may lead to a drop in productivity and an increase n workforce turnover (Anne,
2007: 36).
Management must build commitment between the company and employees by accurately identifying material and moral values, needs and expectations of the human resource (Altuntuğ, 2009: 458).
The tendency to underestimate skills and traits of current employees may lead to low motivation and lose employees.
Talent management may lead to ethical problems as well (Swailes, 2013).
Talent management is a strong tool, but subjective actions of applicators may lead to problems related to work ethics, which may be addressed as a disadvantage (Şahin, 2012 : 70).
Obstacles to Talent Management
: In a research conducted for McKinsey Quarterly with 98 business and human resources leaders from 46 organizations, obstacles to talent management were collected under seven titles (Guthridge et al., 2008 : 51).
Senior managers do not spend enough high-quality time on talent management; 59%
Organization does not encourage collaboration and sharing of resources; 48%
Line managers are not sufficiently committed to development of people’s capabilities and careers; 45%
Line managers are not willing to differentiate their people as top-, average- and underperformers; 40%
Senior leaders are not sufficiently involved in shaping talent management strategies; 39%
Senior leaders do not align talent management strategy with business strategy; 37%
Line managers do not address underperformance effectively, even when chronic; %37
Discussion and Conclusion
In spite of the slow and variable global recovery and permanently high of level unemployment, organizations still have difficulty to find the right talent when needed (Castellano, 2016: 59).
In today’s global economy, talent is a significant differentiator for many organizations. Young talents are difficult to find, and yet even more difficult to retain. Losing talented employees in key roles may mean missing very important business opportunities.
Increasing complexity of and structural changes in the economy and institutions enhances the importance of talent management further. Today, employers have to respond
fluctuating business demands and changing competitive scenes quickly.
The secret is to establish and maintain a system which will turn employees, promising talents in particular, into happy, productive and committed team members. The only
way for individuals to be successful in the world is to improve their skills and talent, and become compatible
In order to achieve success in the new world, organizations need sophisticated strategic planning competencies which will help them find their way in turbulent markets and an encouraging culture about continuous learning and compatibility.
Strategic Human Resources (HR) management competencies necessary to support the culture of an organization and create the workforce which can achieve strategic business goals are equally important (Castellano, 2016: 215).