Introduction
Human resource (HR) services were once seen as non-essential to the core of the business, which was viewed as essentially administrative. However, over time, HR functions have become increasingly fundamental to the core of the organization. HR professionals are increasingly viewed as business partners at now. The HR functions, which include strategic planning, are currently emphasizing training and development as a talent management strategy, in addition to other functions like organization development and change, incentives system, organizational behavior and theory, and performance management.
While developing business strategies in the current complex and dynamic environment, it is crucial for the organization's management, particularly HR and other stakeholders, to regularly assess their talent pool to determine if the necessary expertise is available for the organization or business to implement their strategies.
It has been stated that human resources are the only resource a business can exploit to gain a competitive advantage in its operations. Consequently, recruiting the most talented and qualified employees goes above and above to ensure that a firm will achieve organizational success (Dubois 1993). Currently, firms can also cultivate talent through career advancement and the transfer of skills. Similarly, talent management is a crucial characteristic for ensuring that the workers recruited are motivated and content with their positions, and will therefore remain with a firm.
A critical management approach to talent management would place greater emphasis on organizational needs and talent utilization area than on individual individuals. To ensure effective adaptation to future management needs, a company may, for instance, consider developing and managing mid-level management talent. Undoubtedly, one of the most significant costs organizations confront is associated with high staff turnover rates.
It would make sense to define talent management. In general, the word refers to the procedures or abilities utilized by human capital to recruit employees with exceptional skill levels. It is also essential to note that the phrase can refer to either the management of highly competent and experienced employees or the complete process of managing talents. In general, the concept is predicated on the premise that every human possesses skills that may be defined and released. In an ideal situation, Dubois 1993 says that;
Employee competences are what they should know and be able to do, and are included into talent management. The performance procedures surrounding this suggest how to employ these talents through strategic deployment within the organization, followed by measuring their impact on the achievement of the organization's objective. (p.28)
With the concept of globalization, which implies the free movement of human capital and labor, local and multinational organizations face intense competition. This necessitates that businesses develop strategies to remain competitive. To achieve this, it has been argued that talent management and other HR management issues, such as work satisfaction, motivation, and staff retention, must receive undivided attention. Similarly, it has been demonstrated that the workplace of the 21st century differs significantly from that of the 20th century.
For example, a study conducted in 77 firms revealed that talent will be the most important company resource within the next 20 to 50 years. According to Dubois (1993), talent refers to "technologically literate and intelligent individuals who are typically perceptive and adaptable" (p.27). It has also been demonstrated that the supply of highly talented workers is decreasing at an alarming rate, hence creating a highly competitive climate for acquiring such individuals. The majority of researchers have attempted to establish a connection between talent management and organizational performance, which serves as the foundation for this research project.
Problem statement
Today, commercial organizations are more determined than ever to have access to a highly trained and talented labor force. Concerning the best strategy to align talents with organizational goals, the relationship between talent management and organizational performance, the impact of talent management on organizational success, and the difficulties of managing talent, it has been observed that HR managers in organizations are uncertain.
Even if attempts have been made to assist organizations in recognizing the contribution talent management makes to their performance, it is still necessary to emphasize the same. Retaining and retaining top personnel is unquestionably one of the greatest challenges facing organizations of all sizes. Recently, there appears to be a misperception regarding talent management, particularly among corporations. To allow the HR management of firms to engage in successful and productive personnel management, these myths must be thoroughly addressed.
Intriguingly, when businesses are unable to retain their best talent, it becomes impossible for them to continue to enjoy the commitment and loyalty of these people. These bright people are hired because they demonstrate greater levels of competency and skills in their areas of specialization and have the potential to think creatively. This group has been determined to be capable of providing the organization with a significant competitive advantage and first-mover status (Bowen, Galang and Pillai 2002).
Numerous firms have wasted billions of dollars attempting to build strategies that will give them a competitive edge in the economic sector. The ability of a firm to retain highly qualified and competent employees has been dubbed the key to obtaining a competitive advantage. Our reality, which has been recognized by only a few organizations, forms the basis for this investigation. This study will investigate the influence of talent management approaches as part of human resource management (HRM) practice on organizational performance. With an emphasis on a case study of a multinational company (Halliburton) operating in Iraq's petroleum industry.
Understanding the connection between talent management and organizational success would encourage more of these firms to reassess their strategy so that they may continue to operate despite the current market problems.
Rationale for the study
This study examines the relationship between talent management and organizational performance. The findings will be significant to a variety of stakeholders, including for-profit and non-profit commercial groups and other institutions. The research will establish the relationship between talent management and organizational performance in order to increase productivity.
The findings will assist a variety of stakeholders, including HR managers, in making acceptable and sensible decisions regarding talent management in order to improve organizational performance. Notably, this will result in more organizations being able to use talent management to influence organizational performance and ensure success. This is crucial in defining the future of firms that strive to obtain a professional, talented, and competent staff in order to strengthen their competitive edge. In addition, while searching for relevant material in various libraries, I have discovered that there are relatively few academic studies that examine the relationship between Talent management strategies as part of Human resource management practices and organizational performance.
In the absence of such a study, the diverse contributions of talent management to organizational performance and success would remain underappreciated. Similarly, the existing disparities between talent management and organizational success will continue to persist.
Object of the study
The objective of this study is to determine the connection between talent management and organizational performance. In this instance, the researcher's primary objective is to uncover talent management approaches and determine how best to implement them to enhance organizational performance. Similarly, the contribution of the concept to the success of an organization is reviewed critically. In addition, this research is conducted to determine the obstacles organizations face in their efforts to manage talent.
Aims and purposes
This research aims to examine the relationship between talent management and organizational success in order to enable the researcher to draw conclusions and make recommendations to organizations that seek to improve their performance in the business world by gaining a competitive advantage over potential competitors.
In this sense, the study aims include:
To determine the connection between talent management and organizational performance Determine the obstacles firms face when attempting to implement talent management To determine the mechanisms employed for talent management
Research questions
The essential research question that guides this work is:
How do talent management approaches implemented as part of human resource management (HRM) effect the success of an organization?
Other possible queries include:
What strategies are employed to manage talent? What traits define the contemporary workplace? What problems do firms face when attempting to implement talent management?
A glossary of terms
Talent management
The procedures or abilities utilized by human capital to recruit employees with exceptionally high skill levels. This also includes integrating new personnel and developing and retaining current employees to achieve current and future corporate goals (Bowen, Galang and Pillai 2002).
Organizational performance
It typically involves comparing the actual organizational outcome to the desired output. The notion encompasses particular organizational results, such as financial, product market, and stakeholder returns (Richard, Devinney, Yip and Johnson 2009).
Competitive edge
This describes the competitive advantage gained by the organization. Typically, this is accomplished by offering products and services at competitive costs that provide clients with excellent value. This can also be accomplished by providing value-added services that justify higher charges (Yeung and Berman 1997).
Literature review
According to studies, businesses and organizations are becoming increasingly dependent on highly intelligent labor force. Those who are able to outperform their competitors in attracting, developing, and retaining the best talent will enjoy distinct advantages, including lower operational costs, higher levels of productivity, higher quality products and services, more satisfied and loyal customers, and greater financial performance. Despite these benefits, it is important to note that the majority of executives agree that the most difficult aspect of personnel management is the development of an organization's ability to compete for talent. It is important to note that the notion is highly intricate and dynamic.
According to Butterfield (2008), talent management as an HRM strategy will eventually result in organizational success. Strategic talent management must include programs that contribute to organizational intelligence, including retention strategy, succession planning, knowledge transfer, investment in leadership onboarding, and transition assistance. These initiatives are characteristic of talent management and are thus essential to HRM practice.
The conclusion of Butterfield's (2008) research on talent management as an HRM practice is that a lack of talent management as an integral part of HRM practice at the University of Michigan led to significant staff turnover. With the implementation of talent management, the university began to observe a decline in staff turnover, which led to an increase in internal promotions. This generally increased the quality of education service delivery. Even though the research was not entirely definitive, it provided insight into the significance of talent management to the successful operation of any organization.
Since the main goal of HRM is to maximize the organization's profit, improve the job quality, and effectively manage the people, it is apparent that HRM increases organizational value and performance through initiatives such as talent management (Sunil 2003). As a result of increased globalization and the pursuit of sustainable competitive advantage, businesses regularly examine their strategies to guarantee they have the necessary competence to fulfill their missions.
Global economic difficulties resulting from the September 11 terrorist attacks in the United States have continued to influence the selection and recruitment methods of organizations. Sunil (2003) argues further that firms should engage in talent management to reduce selection and recruitment expenses in addition to boosting performance. Talent management ignores the value and efficacy of the selection process and focuses instead on an appraisal of the short- and long-term impact of the employees' contribution as a cost and performance component. Human resource (HR) planning should take into account the skills and competences now available within the company through talent management and determine the intellectual capital requirements of the future that will satisfy the stakeholders of the organization.
According to Lockwood (2006), talent management is an important idea for companies. This literature outlines the three most important reasons why talent management is essential for employers. Among these reasons is the fact that talent and good leadership are becoming increasingly rare resources; as a result, an employer that implements this technique will gain a competitive edge for the firm as a result of improved performance.
Since the turn of the century, the perspective on talent management has shifted significantly; thus, businesses must rethink this notion while recognizing that talent management practices might hinder organizational success.
In addition, the literature indicates that talent management provides a solid plan for success. The essay then describes a strategy for activating and managing the talent.
Dubois (1993) asserts that global economic shifts have rendered the classic competitive advantage methods worthless or outmoded. Literature agrees that competency management, similar to talent management, is essential when attempting to connect human resources with the business plan of an organization to create a competitive advantage. These developments are the result of globalization, which is defined by interconnection owing to technological progress. It is important to recall that the focus of this literature is on the characteristics of the workplace of the twenty-first century.
The idea is that firms will always need highly qualified and competent employees that are digitally savvy, have a global perspective, and are operationally adaptable. Dubois (1993) argues further that organizations need a culture that allows for the development of good leadership. This can begin with talent management at any level of the business, which is desirable due to the intense rivalry within. It is crucial to recognize that most organizations possess a wealth of untapped abilities and ability.
Five steps are outlined by Dubois (1993) for building a talent management plan. These will include aligning talent management initiatives with the organization's business strategies, determining a system that works for the organization and linking it to the best practices and technology, designing individual development plans that are essential for tracking employees by providing information on the improvement of their skills and knowledge, embedding accountability at all levels within the organization, and having a mechanism to regularly review progress.
In addition, Walker and LaRacco (2002) give rules for the development and management of talent, one of which is that businesses must consciously create and utilize talent pools. Walker and LaRacco (2002) appear to disagree with the conclusion of the majority of researchers that having the finest talent within an organization is the best method to overcome competition.