IMPORTANCE OF HRM IN TALENT MANAGEMENT
Innovative HRM practices provide a sustainable competitive advantage depending on how creatively and effectively they are interpreted and executed (Som Ashok 2007).
The organization can achieve advantage through human resources only. It is the people who can provide the competitive edge which is the reason that Human resources systems have become crucial in conduct of business operations (Umesh R 2011).
Bethke-Langenegger, P., Mahler, P., & Staffelbach, B. (2011) In their research found that talent management strategies focusing succession planning only may not yield organizational performance in short term, as it is a futuristic strategy of the organization and a traditional view of HR operation.
In such situations, it is necessary for human resource managers to design and implement new talent and employee retention programs as a way of building a strong foundation to promote an organisational culture intended to groom the new business start-ups for success (Tsui & Lai, 2009, p.253).
Another study by Sheridan (1992), found culture to have a stronger effect on employee retention than the combined influences of the labour market and employee characteristics. In addition to retention, however, organisational culture greatly influences and shapes HR strategy formulation, including such strategies as employee selection and placement, employee promotion and development, and reward systems noted Sheridan (1992).
Whereas it is possible to describe with clarity strategies used by HR managers in business organisations, there is little written to guide them, in a stepwise fashion about talent and retention programs (Stefan, Julian, Kathryn, Fredrik, & Till von Wachter, 2008, p. 205).
Organizations need to have robust processes in terms of Management support, career development and compensation and rewards strategy which engage employees in effective and efficient manner Alias, N. E., Noor, N., & Hassan, R. (2014).
As per the below video 01, Many business owners don’t realize why HR is important and why they should invest in improving their HR department. However, the reality is that talent management in HR is often neglected -- along with recruitment, discipline, and onboarding. The number one constraint holding businesses back is people. People are generally the biggest cost in a company. A strong HR department will help you optimize the efficiency of your employees so that you’re getting full value out of your team.
Video 01
Reference
- Alias, N. E., Noor, N., & Hassan, R. (2014). Examining the mediating effect of employee engagement on the relationship between talent management practices and employee retention in the Information and Technology (IT) organizations in Malaysia. Journal of Human Resources Management and Labor Studies, 2(2), 227-242.
- Bethke-Langenegger, P., Mahler, P., & Staffelbach, B. (2011). Effectiveness of talent management strategies. European Journal of International Management, 5(5), 524-539.
- Lee, T. W., Hom, P., Eberly, M., & Li, J. (2017). Managing employee retention and turnover with 21st century ideas.
- Sheridan, J. E. (1992). Organizational Culture and Employee Retention. Academy of Management Journal, 35(5), 1036-1056.
- Som, Ashok (2007) 'What drives adoption of innovative SHRM practices in Indian organizations?', The International Journal of Human Resource Management, 18:5, pp 808 — 828.
- Stefan, B., Julian, L., Kathryn, S., Fredrik, A., & Wachter, T. (2008). The Analysis of Firms and Employees: Quantitative and Qualitative Approaches. Chicago: University of Chicago Press.
- Tsui, A. P. Y., & Lai, K. T. (2009). Professional practices of human resource management in Hong Kong: Linking HRM to organizational success. Hongkong: Hong Kong University Press.
- Umesh R. Sharma research supervisor DR. D.G. Thakore, 2011. Impact of human resources systems on performance of the organization (A Study in Select Industries of Vapi, Silvassa And Daman) PhD thesis submitted to the Veer Narmad South Gujarat University, Surat.
I agreed the points above and also Corporate requirements are an indispensible condition for this academic interest on Talent Management, and the discipline of Talent Management (TM) as a result has become a topic of interest for both practitioners and academicians (Gallardo-Gallardo, Thunnissen, & Scullion, 2017). The increase in the global shortage of highly skilled workforce especially in the knowledge based sectors has also made the competition to hire and retain the necessary talent more difficult. As a result, the focus of Human Resource Management is on hiring and managing those employees considered most relevant to the long term interests of the companies or in other words employees who are “Talented” (Schuler, Jackson, & Tarique, 2011)
ReplyDeleteThank you for valuable comment Puthra. The selection process could be done internally or externally. In the event of selecting candidates within an organization, there would be no such internal selection process (Gill, 2021). However, qualities such as efficiency, work experience, time management and technical ability will be observed. For external selection would be when the individual comes through external sources of recruitment and would follow a selection process (Kepha, et al., 2014).
DeleteGreat post Ishara, furthermore, While TM focuses on a small number of pools, people, roles, or procedures that are the most beneficial to the company, HRM concentrates on every employee of an organization (Sparrow et al., 2014; Tarique & Schuler, 2014). To retain maximum value, TM creates "an advanced" and "sophisticated" collection of supplementary HRM policies and practices that take into account the contextual importance and diverse contributions of key players inside the firm (Sparrow et al., 2014, p. 51). (De Vos & Dries, 2013; Glaister, Liu, Sahadev, & Gomes, 2014; Linden & Teece, 2014). TM is therefore a vital conduit for the dissemination of HRM practices that interact to affect organizational performance (Chowhan, 2016).
ReplyDeleteAgreed on your feedback Manoj. A well-planned training and development program ensures that employees will always have the same level of consistency and background knowledge (Ibraiz Tarique, 2014).
ReplyDeleteYou have done a valuable research on this Ishara. Also, Attract top talent Having a strategic talent management gives organizations the opportunity to attract the most talented and skilled employees available. It creates an employer brand that could attract potential talents, and in turn, contributes to the improvement of the organizations’ business performance and results (Staff 2018).
ReplyDeleteThank you on your great feedback Manodya. Schuler and Jackson (2007) stated that strategic human resources management (SHRM) is fundamentally about ‘systematically linking people with the firm’ (Schuler and Jackson, 2007). The key strategic management activity identified by Thompson and Strickland (1996), is ‘deciding what business the company will be in and forming a strategic vision of where the organization needs to be headed – in effect, infusing the organization with a sense of purpose, providing long-term direction, and establishing a clear mission to be accomplished’ (Thompson and Strickland, 1996).
ReplyDeleteGreat piece of information. Innovative HRM practices provide a sustainable competitive advantage depending on how creatively and effectively they are interpreted and executed (Som and Ashok 2007). The organization can achieve an advantage through human resources only. It is the people who can provide the competitive edge which is the reason that Human resources systems have become crucial in conduct of business operations (Umesh, 2011).
ReplyDeleteThank you Tarishma for adding an extra value to my blog. Another study by Sheridan (1992), found culture to have a stronger effect on employee retention than the combined influences of the labour market and employee characteristics. In addition to retention, however, organisational culture greatly influences and shapes HR strategy formulation, including such strategies as employee selection and placement, employee promotion and development, and reward systems noted Sheridan (1992).
DeleteGrate post Ishara, also , Faced with external and internal challenges such as globalization, social changes and responsiveness to customers, technological development, cost containment and structural changes, organizations now experience increasing levels of competition. Evidence has shown a positive relationship between HR practices and business performance outcomes such as increased profitability and productivity. Indeed, HRM practices influence employee skills through the acquisition and development of human capital. Also, the use of well-designed performance management systems and pay-for-performance incentives are important motivations in the workplace. Written by HR professionals, consultants, legal experts and academics with decades of professional experience, this volume covers the full spectrum of HRM practices in relation to their strategic contributions to organizations. In a hands-on and lively fashion, it provides up-to-date HRM knowledge and skills with practical guidelines. The purpose of the book is to enhance people management and gain competitive advantage in the fast-moving business environment. (Anna P. Y. Tsui and K. T. Lai)
ReplyDeleteThank you for your valuable comment on the blog Rasika. The organization can achieve advantage through human resources only. It is the people who can provide the competitive edge which is the reason that Human resources systems have become crucial in conduct of business operations (Umesh R 2011).
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