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KOREA REVIEW OF INTERNATIONAL STUDIES
ISSN - 1226-4741
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A STUDY OF TALENT MANAGEMENT AND ITS IMPACT ON PERFORMANCE OF
ORGANIZATIONS
Dr. Tanuja Singh
Head of the Department, Department of Management,
Dr. M.C.Saxena Group of Colleges, Lucknow.
Email: tanujasingh19@gmail.com
Dr. Suhasini Tatiparti
Assistant Professor,
School of Business,
SR University, Warangal, Telangana.
Email: Suhasini.tatiparti@sru.edu.in
Supriya Chandrakant Gaikwad
Assistant Professor,
Department of Commerce and Management,
Rayat Shikshan Sanstha's,
Savitrivai Phule Mahila Mahavidyalaya, Maharashtra.
Email: supriya.gaikwad1992@gmail.com
Nandula Vamsi Jagannath
Assistant Professor,
Swarnandhra College of Engineering and Technology,
Seetharampuram, Andhra Pradesh.
Email: kiranmayivadde@gmail.com
Dr. Punamkumar Hinge
Assistant Professor,
School of Business Management and Research,
Christ University, Lavasa, Pune.
Email: punamkumar.hinge@gmail.com
Dr. Ankul Pandey
Assistant Professor,
Department of Commerce,
Government Shaheed Kedarnath College Mauganj,
Rewa, Madhya Pradesh.
Email: ankul23041989@gmail.com
Abstract
In order to retain their most skilled workers and boost overall productivity, several businesses have
adopted talent management as a strategic approach. It involves finding and hiring people with
potential, giving them the training and experience they need to advance in the firm, monitoring their
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progress, and keeping them from quitting. Every firm’s success is tied to the efforts of its personnel.
The firm will have a benefit over its rivals if its personnel have skills that set them apart from those
of their rivals. So, businesses are concentrating on improving their people management systems
and procedures in order to handle their diverse and valuable human resource. Since losing a
company's top/core personnel means losing access to their whole knowledge base, companies are
taking drastic measures to keep them in-house. Even if it hasn't been discussed in depth across all
types of businesses, talent management techniques are getting a lot more attention these days
because of its potential to help a company establish and keep a lead over its rivals in terms of
competitiveness. Today, a company's most significant source of a competitive edge is the talent that
it has. The performance of employees has an impact on the success of the company. If the employees
of a company has specific expertise, then that firm will have an advantage over its competitors. In
this tough competition, the acquisition managers and the HR managers have a big problem on their
hands when it comes to retaining exceptional people in the business. Work related to talent
management is both challenging and crucial. The organization's strategy may be strengthened by
the acquisition of the appropriate people. Talent management is a business technique that is used
by organisations in order to retain their best competent employees and improve overall
performance.
Keywords: Talent management, Competencies and Organizational performance
INTRODUCTION
The success of every business is directly tied to its human resource department. As such, it may be
used as a source of encouragement and help. Human resources are a company's most valuable asset
because of their potential to further the company's mission. A company's human resources are
managed by HR professionals. It indicates a shift in thinking that recognizes human capital as one
of an organization's most valuable assets. Human resources refer to an organization's staff as a
whole, including its collective expertise, experience, and qualities. Human resources also include a
company's employees' personal values, ethics, and worldviews. Human resources include the skills
and abilities of employees and any other persons that are accessible to the company. In today's
competitive market, no business can thrive without the right people. As a result, modern businesses
are devoting more resources than ever before to their human capital. This indicates that the
administration may earn and use the necessary competencies by cultivating them, tapping into
them, and using them repeatedly. Human resource management, or HRM, is a kind of business
management that focuses on the people who make an organisation run. HRM encompasses more
than just the management of employees' technical abilities; it also takes into account their
motivations and values. People bring to the workplace not just their technical abilities and
knowledge but also their emotions, perspectives, desires, motivations, attitudes, beliefs, and so on.
Therefore, HRM will refer to the administration of all facets of human resources..
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Human resources refer to an organization's employees as a whole, including all of their intrinsic
abilities, learned knowledge, and acquired skills. Maximum use of human resource management
techniques should be used to achieve individual and group objectives. The effectiveness of a
company's human resources department is proportionate to the quantity and calibre of resources
it invests in department. Because of this, the concept of talent management received a great deal of
discussion in academic and business circles. Human resource management refers to the steps taken
to cultivate an organization's most valuable asset: its employees. Employee retention is a major
issue in today's competitive business climate because companies are beginning to appreciate the
value of the people that make up the organisation. In today's knowledge-based culture, businesses
can no longer afford to ignore their most valuable asset: their employees. The loss of even one
significant employee may have a devastating effect on a company's bottom line because of the
knowledge they took with them. Companies should collaborate on their retention and management
strategies. Talent is more mobile than ever before, and businesses must work together to keep and
manage it. Its original purpose was to improve the system for finding and developing employees
who have the requisite set of talents to satisfy the needs of the modern business. Human resource
professionals can no longer afford to ignore strategic issues such as diversity and inclusion in favour
of day-to-day concerns like benefits, compensation, and staffing. Human resources has grown to be
in charge of a wide range of initiatives throughout the years, including talent management,
workplace diversity and fairness, disaster preparation, reward administration and development,
and the implementation of corporate strategy.
Theoretical Background
The model of talent management and organisation performance defines a number of talent
management factors and establishes links between them and workforce performance, which in turn
impacts organizational success. Without well-trained workers and consistent investments in human
capital, businesses have a hard time staying competitive. The right personnel at the right times is
crucial for any business hoping to gain an advantage over the competition. The goal of talent
management is to maximise workplace performance and, by extension, productivity by keeping an
eye on people with great potential. Staff participation in routine chores and decisions is one way to
achieve this goal. Regular training and development programmes are also a part of talent
management to help employees grow professionally over time. The phrase "talent management,"
borrowed from the field of human resources, describes an organization's dedication to attracting
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and retaining top talent in its workforce, as well as its concentration on the training and
advancement of its most senior workers and members of key departments. McKinsey research and
the groundbreaking book "The War for Talent" in 1997 gave the area a significant boost. "Talent
management" is an industry buzzword for describing a company's efforts to attract, develop, and
retain skilled workers. It includes a shared set of beliefs and norms about how the company should
operate and treat its personnel. Involvement and engagement from staff members are also a part of
this, since the most effective use of talent yields the most positive outcomes and the most
development. Organizations may be more specific about the sorts of employees they want to keep
around by using talent management. In order to fulfil their present and future demands, successful
businesses take deliberate, preemptive effort to strengthen their human resource capacity. These
businesses see Talent Management as an essential tool in their pursuit of greatness. An employee's
commitment to his or her employer increases when he or she believes in opportunities for
advancement inside the firm. An organization's employees are seen as a collection of human capital
assets in a talent management framework, with each employee's value to the company's future
success being calculated. Sheokand and Verma's (2015) [13] explored that analysis of the current
corporate landscape, the notion of talent management is only just beginning to emerge. In recent
years, companies operating on a worldwide scale have begun to recognize the worth and relevance
of their human resources, often known as their human capital. The study provided a comprehensive
overview of prior research and concluded that talent management in the twenty-first century is a
contentious topic but ultimately benefits the bottom line. Garg Diksha and Kavita (2014) [8] argued
that human resources should be viewed as a strategic partner rather than merely a back office
administrator. This is because an organization's most valuable assets are its people. However,
because of their unique upbringings, each individual has a unique set of skills. Consequently, in
order to thrive in today's cutthroat business climate, companies must exercise careful talent
management over their employees. There has been a lot of research and practice on talent
management, but the field as a whole is still in its infancy. The absence of a universally accepted
definition and well-defined conceptual limits is a significant obstacle to the development of talent
management.
Talent Management: Strategy Perspective
Recognizing a person's innate talents, attributes, and personality and then matching him or her with
an appropriate position is at the heart of talent management. Everyone has certain skills that are
best suited to a certain line of work, and they will feel out of place in any other setting. Therefore,
there is no secret sauce for managing talent; the challenge is to identify and nurture it. TM is a win-
win for businesses and their staff. Increased productivity and capability, improved connections
between individual efforts and organizational objectives, loyalty from key personnel, lower
employee turnover, more depth in the bench, and a more precise match between employee skills
and job responsibilities are all positive outcomes for businesses. Employees get the benefits of a
more driven and committed workforce, opportunities for advancement, more insight into how they
directly contribute to the achievement of corporate objectives, and greater intrinsic motivation and
enjoyment in their work. Capabilities are the underlying DNA of an organisation and also of an
individual's potential, and TM's primary emphasis is on developing these capabilities to maximise
human potential. In the field of talent management, competencies serve as the foundation. Training
and development programmes may be designed to help lower-performing workers acquire the
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same important abilities as high-performing workers. Competencies are a set of traits that a person
has and makes use of in a strategic and reliable manner to accomplish set goals. Knowledge, abilities,
features of self-image, social motivation, qualities, thought patterns, mind-sets, and methods of
thinking, feeling, and behaving are all examples of intangibles. Talent management's ultimate goal
is to equip businesses with the most qualified workers for open positions at any given moment.
The environment and the strategies of the business are always evolving, though, so the necessary
abilities today may not be the same as those needed tomorrow. Competencies are more permanent
than day-to-day activities and individual tasks at work. When it comes to attracting and retaining
top people, as well as getting top performers to give their all in pursuit of the company's strategic
goals, competency-based talent management is a crucial strategic strategy. By objectively assessing
an individual's abilities, which are a significant determinant in their performance, competency-
based talent management may also aid in the development of a fair and equitable system. The key
skills necessary for individuals to do their jobs well may be pinpointed with the use of a competency
map. In contrast to traditional methods of managing employees, competency-based talent
management considers each individual's unique set of skills and experiences when determining
their roles and responsibilities within a business. Once the future strategy and obstacles have been
established, the next stage in constructing a strong talent pool is to pinpoint the skills and qualities
necessary for success. When trying to pin down what exactly constitutes a skill, it's important to
examine the varying degrees of proficiency demanded by various occupations. When a person's
competence is severely lacking, they need to be "managed around" by using strategies like
collaboration, and even self-improvement. In the world's skill-based economy, human capital is
important.
However, businesses won't be able to build a system of human resource programmes and initiatives
for revival and long-term success without first carefully planning and defining their competence
framework. When properly implemented, it has the potential to instil the desired employee
behaviours and significantly enhance human resource functions, allowing businesses to more
effectively harness the power of their employees. The management team may examine the staff's
competence profile to see if there is a disconnect between the existing level of expertise and what
is needed to achieve the organization's goals. A key component of the competency-based framework
is its ability to pinpoint the precise course of action required to accomplish these high-level goals.
Competencies are being used by many businesses as a technique of identifying and cultivating top
employees. Human resource management strategies based on the concept of "competence" rely
heavily on the skills and knowledge of its employees. In this model, competences serve as the
cornerstone of HR management. In order to maximise productivity, businesses should use
personnel management strategies based on core competencies. By unlocking the potential of
excellent performers, identifying their qualities, and expanding those attributes throughout all
areas of HR, this study will inspire HR professionals to make significant gains in talent retention and
competitive advantage.
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The desire to improve the efficiency of the business organisation is at the core of the management
of the business. There are numerous resources available to accomplish this goal, including money,
men, and machines; nevertheless, the personnel are the most essential of these three categories of
resources. Throughout the course of history, men who work in commercial organisations have been
given a variety of values. At one point in time, they were referred to as the factor of production, and
at another point in time, they were referred to as the human resource of the company. They are now
granted a greater number of values inside the framework of the company. Because they are
considered to be the most talented employees working for the company, the concept of talent
management was developed. The most important factor in the success of any firm is its human
capital. "It is becoming more evident to the majority of company owners and executive teams that,
rather than being hampered by cash, organisations are often most confined by skill. This is the case
even if capital is a constraining factor. "Corporations have learnt that regardless of what their
business plan is or what obstacles they may encounter, they need the proper personnel to
implement that strategy or cope with that difficulty at any given moment," Some companies feel
that just a select handful of its strategic employees represent the company's talent, while other
companies consider their whole workforce to constitute the company's talent. Therefore, the
company's talent management strategy is an offshoot of its overall human resources management
strategy. Therefore, the purpose of this research is to quantify the influence that talent management
has on the performance of organisations. (Gebelein, 2006)1.
Talent Management, Performance Management System and Organizational Performance
One of the greatest issues that management must face today is creating and maintaining a
productive staff. Every business's primary objective is to maintain consistent and reliable
performance in order to thrive and advance in today's cutthroat marketplace. Therefore,
organizational performance is the most crucial factor to consider when judging companies and their
activities. One definition of organizational performance is the collection of monetary and non-
monetary indices that reveal how well the organisation has done in meeting its objectives. When all
of an organization's components work in tandem to produce outstanding results—results that are
quantifiable in terms of the value created and delivered to customers—that company is performing
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at a high level. The productivity and general effectiveness of every business relies on the efforts of
its employees, and it takes skilled workers to get the job done. Only with inventive and creative
employees can businesses maintain a competitive edge over their rivals over the long term. Global
market analysis shows that successful businesses are those who place a premium on investing in
their own growth, that of their employees, and the creation of distinctive goods and services for
their clientele. (Smith & Goddard 2002)2Therefore, it is essential for businesses to proactively seek
for talent, evaluate prospective employees' contributions, and train and develop employees in
accordance with their needs. Researchers have uncovered a number of elements that have a bearing
on business success. Appraisal of past performance is transitioning from being a standalone
approach to the management of performance to being a component of the larger system of
Performance Management that is more integrated. A PMS is "an integrated set of planning and
review processes which cascade down through the organisation to establish a connection between
each person and the overarching strategy of the business," according to one definition of the term.
Armstrong (2006)3, a PMS is a set of interrelated activities and processes that are treated holistically
as integrated and key components of the organization's approach to managing the performance of
employees by developing the skills and capabilities of its human capital in order to enhance
organizational capability and the achievement of a sustained competitive advantage. In other
words, a PMS is a set of activities and processes that are holistically integrated and key components
of the organization's approach to managing the performance of employees.
Drivers for Talent Management
Using Talent Management, strategic HR plans help businesses succeed. The strategic management
team formulates talent management strategies to guide the organization's pursuit and maintenance
of top talent as well as its cultivation, retention, development, training, rewards, and pay initiatives.
Organizational performance is the degree to which an organisation achieves its goals and objectives.
(Ulrich, 2007)[15] Many professionals, such as those in strategic planning, operations, finance, law,
and even organizational development, care deeply about how a company performs. Although there
have been many demands for empirical studies on the topic (Boudreau, 2013), [3] there is still a
dearth of data linking talent management to improved organizational performance. Opposing forces
— contradictions, difficulties, tensions, and paradoxes — make up the universe of organisation. In
addition to recognizing and attempting to balance these competing forces, managers must also
realised that they must deal with concurrent events that are inherently at odds with one another
and struggle for dominance and control. The ambiguities and uncertainty inherent in talent
management need a deliberate approach. There are three aspects of a company's results that make
up its overall performance: (a) economic results, including financial metrics such as profit margins,
asset returns, and ROI (c) shareholder return - total shareholder return, economic value provided
to the business, etc. (b) product performance in the market, which includes market sales, share
values, expansion, and other growth strategies.
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To attain the intended result in today's corporate world of fierce competition, unexpected hurdles,
external and internal pressure, and the like, it takes some serious target-smashing. Organizational
success depends on having top-tier leadership that can adapt to the demands and preferences of an
ever-evolving workforce. In this shifting context nurturing talent is becoming a priority and a vital
management strategy. The growth in opportunity and availability of employment or expanding of
job market has offered a lot of possibilities to workers in recent days, when maintaining the
important persons in the business is tough. High achievers and other valuable employees may be
singled out with the use of talent management. The perspectives on talent management among
academics and professionals are mixed. Succession planning may be stated as a concept established
to integrate all components of an organization's HR system, but conventional early contributors of
the subject see it as a mentality and a select minority see it as a critical component for successful
succession planning. Because of this, significant objectives are impacted and the organization's
performance is propelled. Uniqueness, difficulty in imitation, high market worth, and the ability to
make good decisions are all hallmarks of skill. Previous studies on the importance of talent
management have shown that there is still room for improvement in the economic areas of revenue,
profit, quality of production, and company reputation. Human resources strategies that put an
emphasis on individuals have been shown to increase the number of highly skilled hires and
improve retention rates. If all other factors remain constant, the overarching goal of talent
management is to nurture individuals with the potential to become the company's future leaders
and ensure the company's continued success.
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Recruitment is the first step in talent management, followed by workforce alignment, individual and
team development, and continuous feedback on performance. Many industries adopt different
standards, and certain standards are more suited to some sectors than others. However, there are
certain standards that are universal across all sectors. The drive of the article is to highlight the
talent management strategies that are used in the banking, healthcare, manufacturing, and
information technology sectors. In addition to widespread norms in certain fields, it's important to
be aware of the general trends across several sectors.
DISCUSSIONS
Human resource management (HRM) professionals and academics generally agree on two
approaches to people management. Best fit is the first, and best practices are the second. Human
resource policies, according to the best fit school of thought, are most effective when they mesh well
with an organization's overarching goals and objectives. As a result, HR must consider both the
needs of the company and those of its workers4. Those who subscribe to the "best practice school"
believe that there is a canon of standard human resources practices that, when implemented
consistently, boosts an organization's efficiency and effectiveness. Human resource management
(HRM) proponents argue that, regardless of the business's structure or sector, some HRM practices
may help them gain a competitive edge. Therefore, for greatest effectiveness, it is essential that the
HR strategy and all HR actions follow suit (strive for best fit). Strategic Human Resource
Management is a term used to describe this approach in the literature. The same is true of best
practices, which have been used by many successful businesses and shown to boost productivity
and efficiency.
Finances, established procedures, cutting-edge machinery, and a hospitable company culture are all
vital to the success of any enterprise. However, humans are responsible for managing everything
mentioned above. Consequently, workers are often cited as a company's greatest asset. The people
who work for a company are the ones who turn that company's capital into profit, who shape the
company's culture and practices, and who find ways to streamline the work process via innovation.
In other words, a company's success is directly proportional to the caliber of its workforce.
Globalization and the development of knowledge-based economies are widely believed to be the
root cause of the current shortage of qualified managers. Employees in today's modern economy
tend to switch jobs more often than their predecessors did. The process of globalization, in tandem
with creative progress, has reduced international barriers, paving the way for the establishment of
an environment where information exchange and ease of mobility have become the norm. As a
result, people's aspirations and demands about their careers have become more significant than in
earlier generations. The need for talent management has increased as a result of the increased
demand on businesses to become more accommodating to talent requests.
CONCLUSION
The assessment of the practices of talent management and the influence such practices have on
organizational performance have been included in the current article. According to the employees,
the organisations can improve their talent management, as well as their performance and
productivity, if they improve their learning and development initiatives and also focus a little more
on their retention strategies. In addition, the employees believe that these improvements will help
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the organisations retain more of their employees. And if the organisations are able to do so
effectively, then the organizational performance will naturally move up, and it will be better than
the situation that is occurring right now5. Aside from that, workers have the impression that their
companies are able to successfully manage their talent, and as a result, they concur that this is a
contributing factor in the high level of organizational performance. Talent management has a partial
influence on the performance of the organisations, and as a result, all organisations should integrate
it with their business plans or strategies in order to boost their performance, productivity, and
profitability, which will allow companies to be more effective and also to establish themselves in
the market by acquiring a competitive advantage in this changing business climate and economy. If
the employees of the firm has unique skills that cannot be replicated by the competition, the
business will immediately have a competitive edge over its competitors. As a result, organisations
are placing a significant amount of emphasis on the development of efficient systems and processes
for talent management in order to effectively manage this one-of-a-kind human resource. In
addition to that, the firms place a significant amount of emphasis on retaining their most valued and
finest employees.
Reference:
1. Al Aina, R., & Atan, T. (2020). “The Impact of Implementing Talent Management Practices on
Sustainable Organizational Performance. Sustainability”,Vol.12(20), pp.8372-8373
2. Almaaitah, M., Alsafadi, Y., Altahat, S., & Yousfi, A. (2020). “The effect of talent management
on organizational performance improvement: The mediating role of organizational
commitment. Management Science Letters”, Vol.10(12), pp.2937-2944
3. Boudreau, J.W., & Ramstad, P.M. (2005a). “Talent ship and the New Paradigm for Human
Resource Management: From Professional Practices to Strategic Talent Decision Science. HR.
Human Resource planning”, Vol.28 (2), pp.17-26.
4. Dhanabhakyam & K. Kokilambal, July (2014),“A study on existing talent management practice
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5. Dhanalakshmi, Balanaga Gurunathan, and Vijayakumar. "A study on talent management
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management and its effect on organization performance among nurses at shebin el-kom
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7. Fernando, Kavitha, Vistas “A Study on Talent Management and Its Impact on the Employees in
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10. Kanyama, Nurittamont & Siripipatthanakul (2022). “Hotel Service Quality and Its Effect on
Customer Loyalty: The Case of Ubon Ratchathani, Thailand during COVID-19 Pandemic. Journal
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