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Macro Talent Management (MTM): What it is and why it is important to Global Talent Management.
Abstract
Talent management is a topic of priority focus to management executives today yet despite the executive focus on talent as an organisational strategy, persistent challenges exist. While the focus of talent management has largely been at the organisational level, this chapter draws on the literature which explores the concept of macro talent management. Macro talent management, that is talent management which takes place at the national, country or regional level, is a necessary and critical topic of inherent relevance to the study and practice of global talent management in organisations today. Business and HR leaders have the opportunity to examine how MTM contributes to or constrains organisational global talent management or local talent management practices. This chapter introduces the topic of macro talent management and reviews the current literature. In doing so, tensions which exist currently between global and macro talent management are presented along with a discussion of the significance of MTM to global business and business managers today.
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The link between global talent management (GTM) and multinational enterprises’ (MNEs) performance has not been theorised or empirically tested. We develop a theoretical framework for how GTM links to performance at the headquarters (HQ), subsidiary, and individual employee levels. Using the resource-based view as a frame, we highlight the routines of pivotal positions, global talent pools, and a differentiated HR architecture as central to GTM. We show that at the HQ level, an MNE’s adoption of a global, multi-domestic, or transnational strategy determines the objectives of the GTM system and significantly influences the performance of the enterprise. At the subsidiary level, the alignment between HQ intentions and subsidiary implementation of GTM routines is a key variable in our analysis. We consider the effects of these higher-level factors on individual performance through the lens of human-capital resources, focusing on how individual human capital can translate or amplify to a unit-level human-capital resource. We argue that, through the vertical fit of these higher-level factors with GTM routines at a given level, an MNE can develop an effective GTM system and expect that to translate into sustainable performance aligned with objectives set at headquarters. The paper concludes with an agenda for future research.
In this paper, I call for further contextualisation of the individual in international management research. In this 'opinion piece', my goal is to stimulate debate and elicit a thoughtful reaction. Accordingly, this paper aims to provoke and excite, rather than review and summarise. On the basis of my own work and the work of my colleagues, I critically reflect on arguments previously made in this line of research, and illustrate the nuances that become apparent when we (a) purposefully introduce individual heterogeneity into the research model and (b) use context heterogeneity as a source for theorising and avoid post hoc contextualisation.
The need for multinational firms to be as competitive in the global marketplace as possible has increased dramatically over the past twenty years. For international human resource management this has meant many strategic opportunities to international human resource management. An excellent example of such an opportunity is that which exists regarding the management of talent. This opportunity began to develop in the late 1990s with the advent of the challenge of “global talent management.” During the past few years this opportunity has expanded to include challenges dealing with talent shortages, talent surpluses, locating and relocating talent, and compensation levels of talent. Together, these conditions are all “global talent challenges”. In this article we describe these several global talent challenges and the strategic opportunities they present to firms and propose the implications of these for firms and for the field of international human resource management.
Purpose – The purpose of this paper is to identify and explain what happens in practice in TM, in order to contribute to the building of a broader and more balanced theoretical framework for TM in which the impact of the organizational context and its interrelated actors are taken into account. Design/methodology/approach – The empirical data were collected in an explorative, longitudinal study on TM policies and practices in five Dutch university departments. Findings – The two crucial actors in TM – the organization and the talented employee – have a different perception of the intended and actual value of TM. The organization is capable of shaping and implementing a TM system that meets its needs, so from an organizational perspective TM is effective. Since the needs of the talented employees are insufficiently addressed in the intended and actual TM practices, TM has less value for them. Various influence factors at the institutional, organizational and individual level are identified. Research limitations/implications – The study was a first step in opening the “black box” in TM, but several questions on the TM process still remain unanswered. The author therefore encourages more research on the multiple levels in the TM process, and the factors that cause variability. Practical implications – Knowledge of the factors which influence the TM process from strategy to outcomes can help practitioners to build a more effective TM approach. Originality/value – Theoretical approaches from companion academic disciplines are linked to the dominant viewpoints in the TM literature. Moreover, to give counterbalance to the tendency to use universal models to explain TM, this study contextualizes TM. Finally, this study goes beyond a focus on management interests, and investigates to what extent other stakeholders (employees) benefit from TM.
Purpose: The paper aims to frame empirical literature on TM, and to provide a clear and comprehensive picture of the topics under investigation, the conceptualization of TM, and under-explored areas.
Design/methodology/approach: We adopted a systematic review that covers empirical research on TM which has been published between 2006 and 2014 in academic peer-reviewed journals. A total of 96 articles were included in the review. A bibliometric as well as a content analysis has been carried out.
Findings: The results reveal that the Anglo-Saxon context (in particular EU) has a great impact on empirical TM research. Also research foundations and designs are not very rigorous. A slight awareness of context and culture was found. Empirical TM research is predominantly built on an exclusive approach to TM. Yet, how TM works in practice and how well (from the perspective of multiple actors) as well as the role and perceptions of line managers are under-explored areas.
Practical implications: The paper gives vision and direction to practitioners in particular on the definition of talent and TM.
Originality/value: This study frames the extent and nature of empirical research on TM, and it is the first to specifically and objectively examine the advances made in the field and to identify under-explored areas. By doing so, it helps to avoid departing from presumptions and misguided beliefs, to advance our knowledge of TM issues in organizations and regions, and to better channel future research.
This paper introduces a radically different conceptualization of human capital resources that runs counter to the individual-level approaches that have dominated human capital theory for the last 50 years. We leverage insights from economics, strategy, human resources, and psychology to develop an integrated and holistic framework that defines the structure, function, levels, and combinations of human capital resources. This multidisciplinary framework redefines human capital resources as individual or unit-level capacities based on individual knowledge, skills, abilities, and other characteristics (KSAOs) that are accessible for unit-relevant purposes. The framework and definition offer three broad contributions. First, multidisciplinary communication is facilitated by providing precise definitions and distinctions between individual differences, KSAOs, human capital, human capital resources, and strategic human capital resources. Second, given that human capital resources originate in individuals' KSAOs, multiple distinct types of human capital resources exist at individual and collective levels, and these types are much more diverse than the historical generic-specific distinction. Third, the multiple types of human capital resources may be combined within and across levels, via processes of emergence and complementarity. Consequently, the locus of competitive advantage has less to do with whether human capital resources are generic or specific but instead occurs because nearly all human capital resource combinations are complex, are firm-specific, and lack strategic (or efficient) factor markets. Overall, the proposed multidisciplinary framework opens new avenues for future research that challenge the prevailing literature's treatment of human capital resources.
This review adopts a phenomenon-driven approach in reviewing the talent management (TM) literature, applying methods derived from bibliometrics and content analysis to evaluate the state of the field and derive implications for research and practice unbiased towards a-priori assumptions of which frameworks or methods are most adequate. Based on analyses of publication volume, journals and their impact factors, most cited articles and authors, preferred methods, and represented countries, we assess whether TM should be approached as an embryonic, growth, or mature phenomenon, and examine dominant (i.e., resource-based view, international human resource management, employee assessment, and institutionalism) versus ‘alternative’ (i.e., knowledge management, career management, strength-based approach, and social exchange theory) theoretical frameworks. Our goal is to assist TM researchers in positioning their work more explicitly vis-à-vis current debates in the existing literature and encourage them to think about which approach best fits their research aims, questions, and designs.
The paper uses two concepts to organize the talent management literature: talent philosophies and a theory of value. It introduces the notion of talent management architectures and first analyses four talent management philosophies and the different claims they make about the value of individual talent and talent management architectures to demonstrate the limitations of human capital theory in capturing current developments. Having demonstrated the complexity of issues being researched, it then synthesises these back down into a theory of value, and develops a framework based on four separate value-generating processes (value creation, value capture, value leverage and value protection). This framework draws upon a number of non-HR literatures, such as those on value creation, the RBV perspective, dynamic capabilities, and global knowledge management, and its use to understand the nature of value and how this might inform the design of any talent management system or architecture. The paper articulates 14 research propositions that the field now needs to prove and suggests how research might now address these.
This paper serves as an introduction to this special issue on talent management. The articles featured here are inspired by the second EIASM workshop on talent management. Following a summary review of the current state of the talent management literature the paper introduces the four articles in the issue.
The challenges associated with managing talent in modern labor markets are a constant source of discussion among academics and practitioners, but the literature on the subject is sparse and has grown somewhat haphazardly. We provide an overview of the literature on talent management-a body of work that spans multiple disciplines-as well as a clear statement as to what defines talent management. The new themes in contemporary talent management focus on (a) the challenge of open labor markets, including issues of retention as well as the general challenge of managing uncertainty, (b) new models for moving employees across jobs within the same organization, and (c) strategic jobs for which investments in talent likely show the greatest return. We review the conceptual and practical literature on these topics, outline the evolution of talent management over time, and present new topics for future research.
This paper aims to contribute to the development of a broader, more balanced approach to talent management that will help in studying and implementing talent management across different contexts. The paper starts with an overview of the advances made in previous reviews and studies with respect to three central themes: the definition of talent, intended outcomes of talent management, and talent management practices. We identify the one-dimensional and narrow approach to the topic as a main limitation of the existing talent management literature. Through the use of theories from the organizational theory and the strategic HRM domain, we add new perspectives and develop a multilevel, multi-value approach to talent management. In so doing, we offer an in-depth discussion of the potential economic and non-economic value created by talent management at the individual, organizational, and societal level.
We examined how perceived distributive and procedural justice affected the relationship between an employee's identification as a high potential (drawn from archival data), job satisfaction, and work effort. A questionnaire was distributed within one large company among employees who were and employees who were not identified as a high potential (N=203). The results indicated that perceptions of distributive justice were significantly higher for employees identified as a high potential. Moreover, perceived distributive justice fully mediated the relationship between an employee's identification and his or her level of job satisfaction. The results also revealed that perceptions of procedural justice moderated the relationship between perceived distributive justice and work effort. Theoretical and practical consequences of these findings are discussed.
a r t i c l e i n f o a b s t r a c t In order to contribute to the theoretical understanding of talent management, this paper aims to shed light on the meaning of the term 'talent' by answering the following question: Is talent predominantly an innate construct, is it mostly acquired, or does it result from the interaction between (specific levels of) nature and nurture components? Literature stemming from different disciplines has been reviewed to summarize the main arguments in support of each of the three perspectives. Subsequently, these arguments are mapped on a continuum ranging from completely innate to completely acquired. We argue that an organization's position on this continuum entails important implications for its design of talent management practices, which we discuss extensively. By providing guidelines on how an organization's talent management system can be shaped in accordance with their respective talent definition, this paper is particularly useful to HR practitioners.
In this article, the authors focus on the challenges and opportunities associated with integrating the macro and macro domains of the strategic human resource (HR) management literature. Their specific focus is on the development of a differentiated HR architecture in support of strategy execution as a key organizing theme. A focus on strategic capabilities and strategic jobs as the focal point of workforce management system design represents a significant potential source of value creation for most firms. But, also, differentiation by strategic capability instead of hierarchical organizational level represents potential implementation challenges for managers, and theoretical and empirical challenges for academics.
Most management problems involve multilevel phenomena, yet most management research uses a single level of analysis. A micro or a macro lens alone yields incomplete understanding at either level. Multilevel research addresses the levels of theory, measurement, and analysis required to fully examine research questions. This forum presents multilevel research on bribery, national identity, team boundary spanning, professional role identity, organizational citizenship, interorganizational exchanges, and divestitures. To enrich the impact of future management research, we recommend (1) applying multilevel designs to existing models (2) considering bottom-up effects, (3) collaborating across disciplines on multidisciplinary topics, and (4) addressing major real-world problems via multilevel approaches.
Purpose
The paper sets out to understand the key issues that emerge in the context of decision making.
Design/methodology/approach
The paper is a literature review.
Findings
First, the authors review debates around talent management decision making. Second, they examine some of the main factors currently influencing decision making in talent management. Third, they seek to identify some future research areas that will inform future decision making in talent management.
Practical implications
The paper will be of interest to practitioners in designing and developing talent management decision systems.
Originality/value
The paper presents a state of the art review of talent management decision marking.
Theory building has lagged on the intermediate linkages responsible for the relationship between HRM and firm performance. We introduce the construct "strength of the HRM system" and describe the metafeatures of an HRM system that result in a strong organizational climate, analogous to Mischel's "strong situation," in which individuals share a common interpretation of what behaviors are expected and rewarded. The strength of the HRM system can help explain how individual employee attributes accumulate to affect organizational effectiveness.
Integrates the 3 primary streams of research—individual-level, organization-level, and cross- or multilevel approaches—into a cohesive multilevel framework. The chapter also proposes a meso paradigm for understanding linkages between human resource (HR) practices and firm performance. The authors adopt the perspective that HR practices shape the skills, attitudes, and behaviors of an organization's workforce, and these skills, attitudes, and behaviors in turn influence organizational behavior and that HR practices can have a direct impact on firm performance by creating structural and operational efficiencies. Further, the authors adopt a multidimensional view whereby there are multiple configurations of HR practices that drive climates and contracts, multiple climates and contracts that guide the behavior and attitudes of the workforce, and multiple dimensions of firm performance and effectiveness. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Over the past decade, knowledge and learning have emerged as the keys to economic success and as a focus for thinking about organizational effectiveness and innovation. An overwhelming majority of large organizations now engage in a wide range of knowledge and learning activities and nearly all have programs and personnel explicitly dedicated to these tasks. The volume is targeted at those new to knowledge and learning, and is filled with practical examples and focuses on the most critical issues, featuring seminal contributions from leading authorities including: * Thomas Davenport, * Dorothy Leonard, * John Seely Brown, * Sidney Winter, * W. Chan Kim, * Peter Druckard. The book is organized around the three key steps in managing knowledge: development, retention, and transfer. These sections are preceded by a section creating the strategic context for knowledge and followed by a section on the social dimensions that are often overlooked. Finally, the book looks to the future of knowledge and learning. This Reader is an accessible way for executives and students taking advanced Management Studies and executive courses to learn from the latest examples on this topic.
Critical review of the available evidence confirms that Canada continues to be a strong champion and active investor in talent and its development, both domestic and incoming international talent, in aspiration of desired outcomes for business, society and the nation. Recognising the quality of national-level talent outcomes which have been achieved, Canada and its cities have been recognised for their high degrees of talent competitiveness and attractiveness in rankings globally, such that Canada is seen as a compelling place for talent and correspondingly for business. As a nation, Canada is a “net importer of talent and skills”, adopts a highly structured, skills-based immigration program to meet the requirements for skilled workforce positions and attracts top talent for key positions to support Canada's innovation-driven economic growth. Champions of Canada’s focus on talent and skills exist at all levels in the nation including business leaders, industry stakeholders, and the Canadian government. Canada is ranked highly for its quality of talent and global talent competitiveness and as such is strongly positioned to participate in a world of increasing intensity of capital, people and information flows. The focus of this chapter is the national-level Canadian talent management system and presents an in-depth review of three main components of macro talent management including: the environment and context, functions and processes which influence talent in Canada, and the Canadian outcomes of macro talent management, each illustrated by a focused case example. Recommendations for key stakeholders of talent in Canada (policy makers, companies, individuals) are presented along with opportunities for Canada to strengthen its ability to attract, develop and retain talent for ongoing competitive talent outcomes, including greater engagement of Canada’s worldwide diaspora of highly skilled, experienced and internationally mobile talent.
This is an extensive annotated bibliography that may be useful to scholars who are interested in a broad overview of the field of strategic human resource management. The bibliography is available at:
http://www.oxfordbibliographies.com/view/document/obo-9780199846740/obo-9780199846740-0034.xml?rskey=rwhrxg&result=93#obo-9780199846740-0034-div1-0004
The resource-based view (RBV) of the firm has been consistently used as a backdrop in strategic human resource management (SHRM) research and has the potential to bridge the ‘micro–macro’ divide. The tension between the SHRM and the strategic human capital literature, however, signifies that RBV has not reached its potential. In this paper, we begin with a brief review of the conceptual logic linking human resource management (HRM) practices and firm outcomes that aim at highlighting the different treatment of RBV in the SHRM and strategic human capital literatures. We then propose a conceptual model that suggests that HRM practices are not simple levers that enable firms to create sustainable competitive advantage, as most of the strategic human capital research postulates. On the contrary, we argue that HRM practices can contribute to a firm's sustainable competitive advantage not only by enhancing employees' ability, and offering motivation and opportunities, but also by shaping supply-side and demand-side mobility constraints.
Is it a sign or just a coincidence that several talented employees have recently left Sambian Partners? The architecture and engineering firm's latest defector refuses to tell the head of human resources, Mary Donillo, why he was unhappy. And the self-administered employee surveys don't reveal much. When CEO Helen Gasbarian gets word of the next possible flight risk, she promotes the employee on the spot. How can Sambian stop the talent drain? Four experts comment on this fictional case study. Anna Pringle, the head of international people and organization capability for Microsoft, thinks that Helen should take a hard look at Mary, who is not safeguarding the firm's talent. Helen must also become an attentive listener. F. Leigh Branham, the CEO of human resources consultancy Keeping the People, thinks that Sambian's employees need a forum in which they can speak openly about their discontent. The candid discussions can expose the "triggering events" that impel people to leave, such as a disconnect between the firm's longstanding focus on innovative design and a more recent concern with profitability. Jim Cornelius, the chairman and CEO of Bristol-Myers Squibb, once faced a potential employee exodus as interim CEO of the pharmaceutical company. He advises Helen to meet face-to-face with her most talented employees and assure them that she understands their concerns and desires. Jean Martin, the executive director of the Corporate Executive Board's leadership council, urges Helen to support a mission and culture to which employees will feel connected. She explains that although people join companies for rational motives, they stay for emotional ones. By the time unhappy workers tell their managers what's going on, it's often too late.
This article deals with organizational transformation, noting that twenty-first-century organizations are structured to extend delegation by the senior management team to those whose task-specific expertise is greater than their own. It describes Cisco as 'a distributed idea engine whose leadership emerges organically, unfettered by a central command'. The article examines the roles in economic development of both human capital (HC) and certain types of firm-level organizational capital. The firm's entrepreneurial, administrative, and transformational capabilities-called dynamic capabilities-undergird its capacity to build and sustain competitive advantage. Maintaining these capabilities in turn requires the business enterprise to recruit, organize, motivate, and deploy highly talented literati and numerati. The basic thesis here is that organizational capabilities and the institutional and legal fabric of society are needed to enable HC-including the literati and numerati-to generate prosperity and economic progress.
Purpose: Despite the widely acknowledged relevance of global talent management (GTM) to business strategy, its activity and scope are not well understood. The purpose of this paper is to propose a conceptual framework for GTM and specifies the main components: strategy, practices, experiences and systems. Complementing the framework, a multiple-actors model is introduced identifying actors participant in the talent system. Specification of the GTM system frames future research of components and outcomes, informs management practice and is of particular relevance to management of global mobility (GM) by multiple actors.
Design/methodology/approach: This paper introduces a strategic framework for GTM and corresponding multiple-actors model extending the GTM, strategic human resource management (SHRM) and GM literatures. A systems view of GTM is presented, founded on social exchange amongst actors. System components and actor roles are specified.
Findings: GTM is articulated as a coherent set of activities within an integrated system. Actors centrally involved in co-creation of the talent system are identified.
Research limitations/implications: Presenting an internal view, the framework excludes external influences such as talent markets. Empirical study is required. An approach is outlined.
Practical implications: The framework and model provide management with a strategic approach to GTM and a tool for management enquiry in their challenge to operationalise GTM.
Originality/value: The framework deepens the understanding of GTM, extends the GM literature debate of managing expatriate talent to a wider system perspective and sheds light on the intended-actual gap noted in SHRM literature. The multiple-actors model re-positions the employee at the centre of talent management.
We argue that the present scope of global talent management (GTM) is limited by its focus upon individuals and organizations, that leaves country effects and influences, as witnessed in the form of talent mobility, and respective governments' direct involvement in attracting and developing national talent, unaddressed. We present a conceptual framework for macro global talent management (MGTM), which incorporates a macro view and supports interdisciplinary research. The framework draws our attention to the macro context in which GTM occurs as well as illuminates its multiple consequences traversing levels of analysis. It also captures the essence of complexities associated with managing talent globally. We offer directions for future research and discuss implications for managers and policy makers. We conclude with some contributions, limitations and conclusions.
In order to evaluate the modern "systems approach," it is advisable to look at the systems idea not as an ephemeral fashion or recent technique, but in the context of the history of ideas. (For an introduction and a survey of the field see [15], with an extensive bibliography and Suggestions for Further Reading in the various topics of general systems theory.) In a certain sense it can be said that the notion of system is as old as European philosophy. If we try to define the central motif in the birth of philosophical-scientific thinking with the Ionian pre-Socratics of the sixth century B.C., one way to spell it out would be as follows. Man in early cul-ture, and even primitives of today, experience themselves as being "thrown" into a hostile world, governed by chaotic and incomprehensible demonic forces which, at best, may be propitiated or influenced by way of magical practices. Philosophy and its descendant, science, was born when the early Greeks learned to consider or find, in the experienced world, an order or kosmos which was intelligible and, hence, controllable by thought and rational action. One formulation of this cosmic order was the Aristotelian world view with its holistic and telelogical notions. Aristotle's statement, "The whole is more than the sum of its parts," is a definition of the basic system problem which is still valid. Aristotelian teleology was eliminated in the later develop-ment of Western science, but the problems contained in it, such as the order and goal-directedness of living systems, were negated and by-passed rather than solved. Hence, the basic system is still not obsolete.
Talent management has become one of the most prevalent topics in the field of people management and development for practitioners and academics alike. However, while managers do appear to appreciate the importance of talent management, they often fail to manage it effectively, and the linkages between talent management and organizational performance remain unclear. In this invited feature article, I argue that the failure to effectively manage and develop talent can be traced, in part, to a narrow conceptualization of performance in much thinking on talent management. At an organizational level, this means that performance is generally considered solely in terms of shareholder returns while ignoring other stakeholders. This translates into HR systems that fail to effectively align individuals and organizations in the generation of value. This article foregrounds employees as stakeholders and argues that organizations that are defined by a sense of purpose and that prioritize employees as stakeholders generally have higher levels of alignment between organizational and employee goals with more highly motivated employees and ultimately more sustainable performance. Some implications for research on talent management are developed.
This study examines the effect of talent management (TM) practices, differentiation strategies, and incongruent talent perceptions in terms of psychological-contract fulfillment. The outcomes of the quantitative analysis of 2660 respondents within 21 organizations show the importance of actively attending to talent-perception incongruence. Incongruence occurs in situations where the organization's executives perceive an individual as ‘talent’, but the individual is unaware of this, and also the other way around: the situation in which the organization's executives do not consider an individual as ‘talent’ while the individual believes that they do. Although the increased use of TM practices is related to higher psychological-contract fulfillment, this relationship is negatively affected by incongruent talent perceptions. Our results show the importance of clearly defining talent and communicating this clearly to all employees. This is particularly important when the talent strategy is perceived as exclusive rather than inclusive.
Research on Talent Management (TM) has been lagging behind businesses in offering vision and leadership in this field. After sketching a comprehensive outline of knowledge about TM, theoretical as well as practical, we introduce the papers in this special issue and their important contributions. This introductory article contributes to filling the knowledge gap by offering a research agenda at multiple levels and in multiple contexts. We also discuss methodological issues in the study of TM, and conclude by identifying several key trends that are now, and will continue to influence the practice and study of TM in the future.
Recent formal recognition of situational influences on the management of complex organizations has led to an increasing number of contingency models, but a comprehensive and integrative theoretical framework for contingency management has been lacking. A General Contingency Theory (GCT) of Management is introduced as an overall framework that integrates the diverse process, quantitative and behavioral approaches to management; incorporates the environment; and begins to bridge the gap between management theory and practice.
Top talent is an invaluable asset: In highly specialized or creative work, for instance, "A" players are likely to be six times as productive as "B" players. So when your company has a crucial strategic project, why not multiply all that firepower and have a team of your best performers tackle it? Yet many companies hesitate to do this, believing that all-star teams don't work: Big egos will get in the way. The stars won't be able to work with one another. They'll drive the team Leader crazy. Mankins, Bird, and Root of Bain & Company believe it's time to set aside that thinking. They have seen all-star teams do extraordinary work. But there is a right way and a wrong way to organize them. Before you can even begin to assemble such a team, you need to have the right talent management practices, so you hire and develop the best people and know what they're capable of. You have to give the team appropriate incentives and leaders and support staffers who are stars in their own right. And projects that are ill-defined or small scale are not for all-star teams. Use them only for critical missions, and make sure their objectives are clear. Even with the right setup, things can still go wrong. The wise executive will take steps to manage egos, prune non-team-players, and prevent average coworkers from feeling completely undervalued. She will also invest a lot of time in choosing the right team Leader and will ask members for lots of feedback to monitor how that leader is doing.