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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
The ultimate goal of every business organization is to increase the sale of goods and service that it deals in and to increase profit in order to achieve its laid down goals and objectives.
These can be achieved if organizations employ the right skilled labour on the right job at the right time by managing their talent (Cappelli, 2009) As noted in (Douglas & Jay 2007) most organization don’t have the required talent to develop lucrative business opportunity and so they loss out.
Organization must ensure that employees of choice are endowed with the skills required for the job; this will help organization perform effectively and efficiently. Talent management is the capability to create and continuously optimize the talent resources needed to execute a business strategy (Talent Management Research, 2009).
Talent Management when implemented effectively result in great changes in the performance and productivity of organization
(Capelli, 2008), Talent management is simply a matter of anticipating the need for human capital and then setting out plan to meet it.(Capelli, 2008); Talent Management concerns the additional management processes that are made available to employees in the organization who are considered to be ‘‘talented’’. This means systematically attracting, identifying, developing, engaging, retaining, and deploying those individuals with high potentials who are of a particular value to the organization (Blass, 2007)
Talent Management is the main duty of the Human Resource Manager but over the years senior and line managers now engage in managing talent.
As noted by (Gunter, 2011) successful companies know that talent management needs broad ownership.
Talent Management process include recruiting, succession planning, leadership development and retention of key employees. The importance of talent management has been increasing rapidly over the few past years.
The roles of talent management on organizational performance are:
1. Organization achieve its goals
2. Organization will meet business demands;
3. Organization have reliable work force
4. Organizational performance increases.
Talent Management can be effective globally using six principles as noted in (Gunter,2011). These six principles make talent management effective both locally and globally. They include:
(1)Alignment with strategy (2) internal consistency (3) cultural embeddedness(4) Management involvement (5) balance global and local needs (6) employer branding through differentiation.
Conclusively, Talent Management has been seen as a tool in which organization use in developing talent. If an organization effectively implements talent management process, it will not only develop talents but it will also increase the performance of the organization, invariably leading to achievement of the stated objective.
1.2 Statement of Problems
More sophisticated procurement strategies and technology productivity strategies are change the way services are won and delivered within any specific market. The ability of an organization to adapt and manage quality talent to meet client needs is necessary in order to remain competitive over the next decade (Khudnick, & Charles, 2013)
Large companies still find it difficult to achieve manpower planning and succession management. Although management recognizes that talent is crucial to the success of the organization, adequate measures to protect and nurture it are yet to be formulated. Other human resources initiatives such as talent audit schemes, competency analysis, team building activities has to be implemented or achieved in so doing the organizational performance increases. This development has to a large extent retarded the growth and development of the organization concerned.
1.3 Objectives of the Study
The main objective of this study is to examine the effect of talent management in organizational performance.
However, other objectives of this research study include:
1. To examine the effect of talent management on profitability.
2. To examine the effect of talent management on creativity of an organization.
3. To examine the effective talent management in an organizational performance.
1.4 Research Questions
The following are the research questions.
1. Attracting, retaining and engaging employees of choice affect organizational performance?
2. Organizations make talent management a strategic priority?
3. Talent management processes enhancethe profitability?
1.5 Research Hypotheses
1. Ho There is no significant relationship between talent management and organizational performance.
H1 There is a significant relationship between talent management and organizational performance.
2. H0 There is no significant relationship between talent management and profitability.
H1 There is a significant relationship between talent management and profitability.
3. H0 There is no significant relationship between talent management and performance management.
H1 There is a significant relationship between talent management and performance management.
1.6 Scope and limitations of the Study:
This research study spans the activity of organizations in managing and developing talents. This study specifically examines the management and development of talents in Nestle Nigeria Plc. and also the effect of this development on its employee performance. The limitations of this research study is targeted towards identifying those employee needs such as a stable reward system, training and development, manpower planning, adequate employee welfare of Nestle Nigeria Plc.
1.7 Significant of the Study:
This study examined and highlighted the effect of talent management on organizational performance. Other useful areas of the study are;
Talent management is a tool to develop talent and increase organizational performance.
Talent management helps organization achieve its goals, if organizations develop and manage their talent, they will be able to retain and engage a sold workforce that will be able to achieve help the organization in achieving its goals and objectives.
Talent management helps employees develop their talent and this increase their performance in the place of work. Talent management also develops skills knowledge talent management also increases adaptability learning, flexibility, innovation and performance all these will aid increase in productivity.
Talent management as a tool in every organization helps to increase performance, productivity of organizations, helps also to achieve their aims and objectives and as such influencing the nation at large.
Talent management helps nations to be economically balance and fit because through talent management countries develop their work force in so doing having a generation of capable and eligible work force.Government should also provide training facilities to develop talents.
1.8 Definition of terms
1. Talent Management
This means systematically attracting identifying, developing, engaging, retaining and deploying those individuals with high potential who are of particular value to the organization [Blass 2007]
2. Talent Segmentation
Talent can be segmented either from an exclusive perspective (focusing practices on a specific group in the organization, such as high potentials, in the sense of an elite sub-group of future leaders) or an inclusive perspective [recognizing and focusing practices on the talent of all employees in the organization] [CIPD 2006].
3. Talent Strategy
Articulating strategic goals and defining talent needs [multi-polar world impacts workforce strategy, segmentation]
4. Talent Resourcing
Discovering and deploying talent [sourcing, recruiting and work force planning]
5. Performance and Rewards
Measuring and managing performance, aligning rewards with results [objectives, assessments, incentives recognition].
6. Learning and Collaboration
Defining new ways of working and learning in a technology savvy, geographically dispersed, ever changing world turn over intention
7. Turnover Intention
Employees experience turn over intentions when they consciously and deliberately want to leave the organization [Tett&Meyer 1993].
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