ImplementingTalent Management In A Large UK Plc - The Role Of HR
Working Paper
Staunton, Michael
Introduction
This research is concerned with Talent Management (TM) and forms part of a DBA programme. Lewis & Heckman, (2006:139) note there is “a disturbing lack of clarity regarding the definition, scope, and overall goals of talent management”. In addition, although talent management is a popular area of practice its conceptual depth is limited and research on the difficulties involved with talent management and about underlying causes of difficulties in this area is scant (Collings & Mellahi, 2010:145). This thesis aims to address this gap in academic and practitioner knowledge. In particular it focuses on the expectations and experiences of HR practitioners, line managers and senior managers involved in Talent Management in a large MNC (VT Group plc).
Brief Summary of the Main Literature
The literature review addresses two main areas. Firstly it examines ideas and practice around strategic human resource management (SHRM); its link to organisational strategy; and the implications this may have for talent management. Secondly the history and conceptual development of what has come to be known as talent management (TM) is explored.
SHRM and particularly the shift in organisations towards the Ulrich model in HR (Ulrich, 1997) are discussed in the literature review. Ulrich (1997) is important in terms of defining a “business partner” model for HR with four roles of Strategic Partner; Administrative Expert; Employee Champion; and Change Agent. The further refinement and development of this model to Employee Advocate; Human Capital Developer; Functional Expert; Strategic Partner; and HR Leader, (Ulrich& Brockbank 2005) reflected some of the weaknesses of the original model approach and recognised a more pro-active leadership role for HR in organisations. In a further revision Ulrich took into account the world external to the organisation and the context in which organisations operate. In this shift in his thinking Ulrich et al., (2009) focused less on HR internally but more on HR as working ”Outside In”, making HR a more externally facing function that is aware of the external marketplace and focuses on outcomes and capabilities rather than the internal HR structure. Others like Vosburgh,(2007) have taken an historical analysis leading to the proposition that the role of HR has fundamentally shifted to that of internal consultant with a focus on TM.
In terms of TM itself Lewis and Heckman (2006) identify three streams of thought in the literature. The first stream is where TM underpins all HR practices and represents a rebranding HRM rather than something fundamentally different. Hirsh (2009) illustrate the dilemma for TM in seeing that old HR functions like recruitment simply have an added talent label but essentially remain the same thing.
The second is where the focus is on creating talent pools and managing people through positions in the organisation. Workforce planning and succession planning are examples of processes that develop from this thinking. Capelli (2008) with his approach of applying a supply chain lens to TM is an example of this. The third stream is the identification and management of talented people to fill all slots. An example of this approach is that of Michaels et al (2001).
Collings & Mellahi (2009) also identify an “emerging” fourth stream represented by authors such as Bodreau & Ramstead (2005). They argue for the creation of a “decision science” representing a body of knowledge with tools and analytic approaches. In this view HR should cover “talentship” which makes up the “decision science” that reflects the stewardship of the resource of employee talents (Boudreau & Ramstead, 2005:20). This strand of thought Collings & Mellahi argue has the following characteristics – a systematic identification of key positions; development of a talent pool of high performers and high potentials; and differentiated HR architecture to facilitate filling these key positions.
In a more recent work Collings & Mellahi (2010:145) state, “While much research has focused on what managers are (or are not) doing with regard to talent management ….. the underlying reasons behind why managers behave in the way they do towards talent has not received great attention in the debate. Consequently, as far as talent management is concerned, the factors that shape managers’ actions are not sufficiently understood as yet.”
Collings & Mellahi go on to argue that organisations need this knowledge because the contemporary knowledge based global economy and global competition pits MNEs against each other in the “war for talent”, (Chambers et al., 1998) and senior leaders in MNEs are under increasing pressure to manage talent effectively across globally dispersed subsidiaries. Second, while research has highlighted MNE's failure in managing their talents, little is known about the underlying causes of this failure. One view of TM argues that the senior leaders, line managers, and HR practitioners have failed to implement TM despite much investment in the activity as a result of a gap in perceptions between HR and line managers about the capability required (Guthridge, 2008).
In summary the literature review identifies the following gaps - the definition of TM and the roles and skills required by the individuals and groups in implementing TM. The definition of TM is in the broad sense of its purpose; who should carry it out? what are the roles and skills sets involved? and what are the outcomes? There is a need for further conceptual development of TM. In addition little is known about the different perspectives of senior and line managers and HR practitioners on the TM process
Overview of Organisational Context
Talent Management is explored in this thesis at VT Group plc (VTG). A talent management process had been introduced into the organisation for a number of reasons. First, the defence industry and market in which VTG was operating from 2000 onwards was undergoing extensive budget reductions and reviews. Second, VTG strategically was moving from being a ship building company to a services company partly, as a response to pressure on current and future budgets. Third, the Human Resources (HR) function was moving from a traditional personnel approach, to that of a modern HR function, partly in response to the organisational change that was already happening at VTG and accelerated through the introduction of a new CEO in 2002 and the addition of a new HR Director in 2005.
Research question and objectives
The main research question for the thesis is: “What factors influence the ways in which TM is introduced, implemented, and operates in a multi national corporation” and the research objectives are to:
- Examine how the different stakeholder groups (senior managers, line managers, and HR practitioners) understand and perceive TMfrom its’ introduction, purpose and outcomes.
- Establish the business, professional and personal roles and skills implications of TM in a large MNC
Methodology
The research adopts a case study strategy: “an empirical inquiry that investigates a contemporary phenomenon within its real-life context, especially – when the boundaries between the phenomena and the context are not clearly evident” (Yin 2003:13). An inductive and qualitative approach is adopted. As Anderson suggests an inductive approach - where existing theories may not reflect the true perceptions and interpretations of people - may be an appropriate strategy (Anderson 2004:103). The study examined TM from the perspective, in depth, of one organisation, VT Group (VTG). VTG value here is that as an organisation it’s managers implemented a TM process between the years 2006-2009. The study in particular examines the understanding, perspective, and feelings of different people or “actors” involved in the process including senior executives, line managers, and HR professionals.
In order to achieve the research aim the views and perceptions of the different groups are explored in the research, especially in examining the views of HR and other groups about their role and skills. A semi-structured interview process with 10 key members (5 senior or line managers and 5 HR practitioners) of the VTG organisation involved in implementing the TM process was designed. The questions in Appendix 1 covered the understanding and feelings of the senior level, line managers and HR practitioners. The interviewees were senior or executive level, line managers, and HR professionals who implemented, and were part of the Talent process at VTG. The interviews were recorded, and transcribed. The semi-structured interview allowed data to be themed and analysed. After each interview the recording was listened to and preliminary notes taken on key points. Each interview has now been transcribed and, in addition, internal company presentations and management/HR documents were part of the process of review. The data will be analysed using QSR NVivo to help with identifying themes individually and across cases. Notes are currently being taken on each interview transcript where the points are annotated to the left of the transcript and themes identified on the right.
Attached at Appendix 1 are the interview questions that were developed from the literature review and discussions around the setting up of the study. These questions were used in a semi-structured interview process. The questions cover each individual’s personal view of TM and its introductions into organisation; the fit with HR and business strategy; the roles and skills required of each group; and any general points about TM. Hence the semi- structured interviews were used to identify and explore the issues. As Smith argues, “We could summarize the advantages of the semi-structured interviews. It facilitates rapport/empathy, allows a greater flexibility of coverage and allows the interview to go into novel areas, and it tends to produce richer data. On the debit side, this form of interviewing reduces the control the investigator has over the situation, takes longer to carry out, and is harder to analyse.” (Smith 2008:57)
The analytical approach used for the semi-structured interview data is intended to be Interpretative Phenomenological Analysis (IPA) Smith (2008). The aim of IPA is to explore in detail how participants make sense of their personal and social world and also involves the active role of the researcher in that process. The researcher while entering the participant’s world has also to interpret that experience. Smith describes this as “a two-stage interpretation process or a double hermeneutic…” this he states is where the “participants are trying to make sense of their world the researcher is trying to make sense of the participants trying to make sense of their world” (Smith 2008: 51). The steps within the process focus on identifying themes and integrating them first within, and then across cases. IPA typically involves finding a fairly homogeneous sample, which was the case in the research here. In this way IPA goes in the opposite direction from random or representative sampling. Purposive sampling was adopted because the interviewees were key people in the implementation and could contribute insight to the research.
Data collection and interpretation issues
The author’s role is that of practitioner-researcher which may have the potential effect of influencing others, or being influenced, during the research process (Anderson 2004:24). However, this issue was lessened by the fact that VTG ceased to exist as an entity after being acquired by a competitor in 2010. The interviews took place at a time when the author could not directly affect any of the individuals as he and several of interviewees had left the company.
The interview data has been found to be challenging with unexpected (by the author) views and rich streams of constructive criticism and individual thinking of the interviewees.
The IPA approach “emphasises that the research exercise is a dynamic process with an active role for the researcher in that process” (Smith 2006:51) and different perceptions and experiences of TM from within the sample may change the direction of the research to include a focus on line manager perspectives as much as on the HR skill sets and capabilities. To date there are differences between the line and the HR practitioners and between the different levels of seniority. The data provide a range of examples of emotional experiences being expressed by the respondents while at the same time all the interviewees expressed the view that the TM process was a very well organised and rational process.
Issues for Discussion
- Impact of Timing of the interviews (as they were all retrospective)
The interviews took place in 2010 and the Talent management system was implemented between 2006 – 2009.
- Data Analysis - IPA and the case study design.
- Relationship between contribution to academic knowledge and contribution to practice.
References
Anderson, V., (2004), Research Methods in Human Resource Management. London:CIPD
Boudreau, J. W., and Ramstad, P. M., (2005), Talentship and New Paradigm for Human Resource Management: From Professional Practice to Strategic Talent Decision Science, Human Resource planning Vol. 28 pp 17 – 23
Capelli, P., (2008). Talent Management for the 21st Century. Harvard Business Review, March Pages 74 -81
Chambers, E.G., Foulon, M., Handfield-Jones, H., Hankin, S.M., Michaels III E., G., (1998), The War for Talent, The McKinsey Quarterly, Vol. 1
Collings, D.G., & Mellahi, K., (2009), Strategic talent management review. A Review and Research Agenda. Human Resource Review, Volume 19, Pages 304 – 313.
Collings, D.G., & Mellahi, K., (2010), The Barriers to Effective Global Talent management, Journal of World Business, Volume 45, Issue 2, Pages 143-149
Guthridge M., et al (2008), Making Talent a Strategic Priority. McKinsey Quarterly
Hirsh, W., (2009), Talent management: Practical issues in Implementation. IES Paper, Institute for Employment Studies.
Lewis, R.E., & Heckman, R.J., (2006). Talent Management: A critical review. Human Resource Management Review, 16, 139 -154.
Michaels, E., Handfield-Jones, H.. and Axelrod, B.,(2001).The War for Talent. Boston, Massuchusetts: Harvard Business School Press.
Smith, J.A. (2008) Introduction. In J.A. Smith (Ed), Qualitative Psychology: A Practical Guide to Research Methods. London: Sage (2nd Ed)
Ulrich, D., (1997). Human Resource Champions. Harvard Business School Press, Boston, Massachusetts.
Ulrich, D., and Brockbank, W., (2005) The HR Value Proposition. Boston, Massachusetts: Harvard Business School Press.
Ulrich, D., Allen. J., Brockbank, W., Younger J., Nyman M., (2009), HR Transformation Building Human Resources from the Outside In: McGraw Hill
Vosburgh, R.M., (2007) The Evolution of HR: Developing HR as an Internal
Consulting Organization. Human Resource Planning, 30 (3), Pages 11-23.
Yin, R. K., (2003). Case Study Research. London: Sage
Appendix 1
Doctor Business Administration - Talent Management Interview Questions
1.How did you first get to think about (or hear about) the need for a Talent Management(TM) process at VT?
2. Why did you want (or not) to introduce a TM process into VT?
3. Can you describe (from your perspective) how TM was introduced?
4. What is your definition of Talent Management and what was its importance in the business context of VT?
5.To what extent did the TM process link with other strategic business priorities at VT? (Identify areas of good and more difficult areas of linkage?)
6.In what ways did the TM process “fit” with the other things that HR was trying to achieve in VT (identify good fit and poor fit
7.How effective was the talent process in VT in the light of question 5,6, above? What went well and what was not so successful?
8.What do you see the role of
a) The HR function,
b) The senior leaders, and
c) The line managers in the TM process?
9. What do you see the skills/attributes required by the
a) The HR function,
b) The senior leaders, and
c) The line managers in the TM process?
10.How effective overall was the Human Resources function in implementing the Talent Management in VT?
11.Have you any other thoughts and comments about the Talent definition and process, both generally, and in VT?