Introduction
According Collings, D.G. and Mellahi, K., (2009).
Since a
group of McKinsey consultants coined the phrase the War
for Talent in 1997 (see Michaels et al., 2001, Axelrod et al., 2002),
the topic of talent management has received a remarkable degree of practitioner
and academic interest. This relatively recent emphasis on talent management
represents a paradigm shift from more traditional human resource related
sources of competitive advantage literature such as those that focus on organizational
leaders, including upper-echelon literature (Hambrick and Mason, 1984, Miller
et al., 1998), and strategic human resource management (SHRM) (Huselid et al.,
1997, Schuler, 1989, Wright and McMahon, 1992) towards the management of talent
explicitly suited to today's dynamic competitive environment. While the context
may have shifted significantly since the latter part of the last century, the
notion of talent management remains important. Arguably the challenge of maximizing
the competitive advantage of an organization’s human capital is even more
significant in the declining climate of the latter part of the opening decade
of the twenty first century.
We define strategic talent management as activities
and processes that involve the systematic identification of key positions which
differentially contribute to the organization’s sustainable competitive
advantage, the development of a talent pool of high potential and high
performing incumbents to fill these roles, and the development of a distinguished
human resource architecture to facilitate filling these positions with
competent incumbents and to ensure their continued commitment to the organization.
In this regard, it is important to note that key positions are not essentially
restricted to the top management team (TMT) but also include key positions at
levels lower than the TMT and may vary between operating units and indeed over
time.
Talent Management : Core Components and Process
According to
Ready and Conger (2007) found that “to meet the challenge, companies must
rethink how they hire, train and reward their employees, placing those tasks at
the heart of their business plans”. In doing so, they have an opportunity to
address all problems according to a unified integrated plan, rather than waste
time and resources attacking each of the issues individually (Para 3). Also,
Ibrahim (n.d.) asserts that “a systematic approach should be followed to
implement any talent management initiative in any organization. Organizations
that formally decide to ‘manage their talent’ undertake a strategic analysis of
their current HR processes. This is to ensure that a coordinated, performance
oriented approach is adopted” (Para 4).
Lockwood
(2006) contends that talent management is about “the implementation of
integrated strategies or systems designed to increase workplace productivity by
developing improved processes for attracting, developing, retaining and
utilizing people with the required skills and aptitude to meet current and
future business needs” (p. 2).
Therefore,
talent management becomes the process of managing the set of events that each
employee experiences. Accordingly, Mehta (2011) asserts that the aforementioned
set of events, or core components, is considered fundamental for the success of
the organization in the retention of its talent. Exhibit 2 depicts the set of
processes which, when integrated, form the foundation of a comprehensive “Talent
Management” system according to Mehta.
Exhibit 2. Mehta’s core components of talent management
1. Strategic Workforce Planning: This
first stage in talent management addresses the needs and goals of one’s
organization.
2. Total Talent Acquisition: Talent
acquisition is associated with the use of an applicant tracking system targeted
at hiring full-time people. However, effective talent management comes from
focusing on total talent acquisition and integrating it.
3. Employee Development: Integrating
employee development with total talent acquisition provides an obvious benefit.
Organizations must understand each person‘s ability as it relates to the core
competencies identified in strategic workforce planning.
4. Performance Management: Linking employee
development activities and goals to performance management makes sense.
Motivating managers to conduct performance management in a thoughtful and
deliberate manner is crucial.
5. Succession Planning: Every
organization has key people and positions which are important for the success
and achievement of its goals. Talent management proactively identifies key
people in the organization and develops a plan to manage people and positions.
In this respect, employing a technology solution can facilitate this process
and will mitigate obstacles; and, having a system that links the other
components vastly increases organizational commitment to succession planning
and streamlines the process. Managing a great talent management program will
optimize organizational performance.
Agreed, Collings & Mellahi (2018) states that the evolution of talent management signifies its importance in today's competitive landscape. The shift towards strategic talent management involves a holistic approach encompassing workforce planning, talent acquisition, employee development, performance management, and succession planning. This comprehensive approach recognizes the crucial role of human capital in achieving sustained competitive advantage and organizational success.
ReplyDeleteThank you Divvagaa for your comments. Further to add, the evolution of talent management is a sign of its importance in today's competitive landscape. In the past, talent management was often seen as a reactive function, focused on filling open positions. However, in today's fast-paced and ever-changing environment, talent management needs to be more proactive and strategic.
DeleteA strategic approach to talent management embraces all aspects of the employee lifecycle, from workforce planning to succession planning. It identifies that human capital is a key asset for organizations and that it needs to be managed carefully in order to achieve sustained competitive advantage.
Reviewing strategic talent management is crucial to ensuring alignment with evolving organisational goals and external dynamics. Regular assessments allow for the identification of gaps in skills and capabilities, enabling timely adjustments to recruitment, development, and succession plans.
ReplyDeleteFurther, Turnea (2018) explains that retaining valuable employees within organisations presents organisations with a real challenge. Organisations that are willing to attract and retain these talented employees can not only rely on nonfinancial practises (i.e., career development, appreciation, or work-life balance). They also have to offer them attractive financial rewards.
Thank you Nuwan for bringing forward a vital perspective on strategic talent management. Indeed, reviewing and adjusting talent management strategies in accordance with evolving organizational goals and external market dynamics is a crucial practice. Regular evaluations serve as a proactive mechanism for identifying any gaps in skills and aptitudes, which then enables organizations to make timely modifications to their recruitment, development, and succession plans.
DeleteYour insight into the challenge of retaining valuable employees is perceptive. As noted by Turnea (2018), organizations indeed face the challenge of retaining their most talented employees. In order to attract and keep these valuable contributors, it's clear that relying solely on nonfinancial practices—such as career development, appreciation, and work-life balance—is not sufficient. A comprehensive approach that combines attractive financial rewards with these nonfinancial strategies is necessary to create an appealing and fulfilling work environment.
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ReplyDeleteInterest to read the War for Talent, coined by McKinsey consultants in 1997, has led to a significant increase in interest in talent management. This shift from traditional human resource literature towards strategic human resource management (SHRM) is crucial in today's competitive environment. Strategic talent management involves identifying key positions that contribute to an organization's sustainable competitive advantage, developing a talent pool of high-potential incumbents, and developing a distinguished human resource architecture. Key positions are not limited to the top management team but also include positions at lower levels and may vary over time. Companies must rethink their hiring, training, and reward processes to address all problems in a unified integrated plan. A systematic approach is essential for implementing talent management initiatives in organizations.
ReplyDeleteI agree with you Nalaka. The book "The War for Talent" by McKinsey consultants Michael C. Hammer and James Champy was a landmark publication that helped to increase awareness of the importance of talent management. The book argued that in order to contest in the global economy, organizations need to attract and retain top talent. This shift from traditional human resource literature towards strategic human resource management (SHRM) is crucial in today's competitive environment.
DeleteStrategic talent management is a holistic approach to managing human capital that line up the organization's talent needs with its strategic goals. It involves recognizing key positions that contribute to the organization's sustainable competitive advantage, developing a talent pool of high-potential incumbents, and developing a distinguished human resource architecture
Hi Prakash you did a good job of highlighting the importance of strategic talent management in today's competitive business environment. In order to stay ahead of the competition, organizations need to have a clear understanding of their talent needs and a plan in place to attract, develop, and retain the best talent.
ReplyDeleteThe article also provides some useful insights into the different components of talent management. The five core components identified in the article are essential for any organization that wants to have a successful talent management program.
Thank you for your thoughtful recognition of the importance of strategic talent management in the context of today's competitive business landscape. You've precisely captured the essence of the challenge organizations face: the imperative to not only comprehend their talent requirements but also to devise a widespread strategy to attract, nurture, and retain top-tier talent.
DeleteThe recognition of talent management as a strategic necessity underscores the idea that an organization's human capital is a critical driver of its success. In an environment where innovation, adaptability, and skill alignment are paramount, a well-structured talent management approach becomes a differentiator.
"I wanted to take a moment to express my sincere appreciation for your article on Talent Management. Your expertise and insights truly shine through in your writing. The way you've broken down the multifaceted components of talent management into a coherent and actionable framework is impressive. Your emphasis on nurturing skills, providing growth opportunities, and fostering a positive workplace culture aligns perfectly with the ideals of effective talent management. I particularly enjoyed your exploration of mentorship and its pivotal role in guiding employees along their career paths. Your blog post not only educates but also inspires readers to think critically about how to optimize their talent management strategies. Thank you for contributing such a valuable resource to the field. Your blog is a beacon for professionals striving to create environments where both individuals and organizations thrive."
ReplyDeleteYour kind words about my proficiency and insights mean a lot to me. I'm excited that the way I offered the complex aspects of talent management as a logical and actionable framework came across as impressive. My goal was to provide hands-on guidance that experts like you can apply to their talent management strategies.
DeleteI'm pleased that you found association between my emphasis on nurturing skills, providing growth opportunities, and nurturing a positive workplace culture with the ideals of effective talent management. These fundamentals are indeed vital to fostering a thriving and engaged workforce.
Mentorship holds a special place in my methodology to talent management, and I'm pleased that you enjoyed the examination of its pivotal role. Guiding employees along their career paths through mentorship is not only personally fulfilling but also influential in their professional growth.
Hi,
ReplyDeleteThis excerpt provides an excellent overview of strategic talent management and its core components. The comprehensive definition and breakdown of key processes offer a clear understanding of the concept. The integration of various components underscores the strategic importance of managing talent cohesively. The cited sources and explanations demonstrate a thorough understanding of the subject, making this content highly informative and insightful.
Thank you for your kind words. I am glad that you found the content to be well-structured and comprehensive. I put a lot of effort into researching and writing it, so it is satisfying to hear that it is of value to you.
DeleteI agree that the combination of scholarly perspectives and practical insights is important for understanding talent management. By drawing on both research and practice, we can gain a more comprehensive understanding of the topic and its implications for organizations.
I am also glad that you found the breakdown of strategic talent management into core components and processes to be clear and practical. This was a key goal of the text, and I am glad that it was successful.
I hope that the text will be a valuable resource for anyone seeking to understand the complexities and strategies involved in talent management. I believe that it provides a good foundation for understanding the topic and for developing effective talent management practices.
Thank you again for your feedback. It is much appreciated
Excellent review on talent management. I am in agreement with your comment that key personnel are not always part of the TMT, as I have observed this at my workplace. We refer to them as specialists, and while their organizational designation is often beneath or in the range of an executive, they are the workhorse or key decision makers and takers of business units, where they often correspond with the director-level personnel rather than those at the manager level.
ReplyDeleteI appreciate your thoughtful comments regarding the talent management review. Your insight that key employees might not always be a part of the top management team (TMT) is interesting to notice. Despite their formal organizational title, the people you named as "specialists" appear to have a vital role as laborers and decision-makers within particular business units. Your experience demonstrates that rather than being restricted to managers, their interactions frequently involve staff at the director level. This interaction emphasizes how important it is to acknowledge knowledge and power outside of conventional structures. It serves as a reminder that good people management should take into account a wider range of functions and contributions within an organization. Your viewpoint gives the conversation on this subject important dimension.
DeleteThe evolution of talent management, according to Collings & Mellahi (2018), demonstrates its significance in the competitive environment of today. A holistic strategy that incorporates workforce planning, talent acquisition, employee development, performance management, and succession planning is required for the change to strategic talent management. This all-encompassing strategy acknowledges that investing in human capital is essential for securing a sustained competitive advantage and organizational success.
ReplyDeleteThank you for your kind comments to my article. I concur that the development of talent management shows its importance in the current competitive landscape. A comprehensive personnel management plan is necessary for firms to secure a long-term competitive advantage and organizational success, as Collings and Mellahi (2018) point out.
DeleteIncluding workforce planning, talent acquisition, employee development, performance management, and succession planning are all essential components of a holistic talent management strategy. This comprehensive plan acknowledges that a company's long-term success depends on its ability to invest in its people resources.
Organizations can execute a comprehensive personnel management plan in the following ways:
Organizations must have a thorough grasp of their present and future talent demands in order to plan their workforces effectively.
Talent management has seen a huge rise in interest as a result of readers' interest in the 1997 book The War for Talent, which was written by McKinsey consultants.
ReplyDeleteIn recent years, the concept of finding meaning at work has increasingly gained relevance. As the COVID-19 epidemic grew, workers began to doubt how things had been done in the past. According to Bill Schaninger, senior partner at McKinsey, "we had this unbelievable smashing together of two worlds: the home world and the work world," in an episode of The McKinsey Podcast on finding meaning at work. "What precisely does work mean to me has really been brought to the forefront, in my opinion. What am I supposed to gain from it? Is it just a check to help me with the remainder of my life, or is there some other reason behind it?