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In this competitive business world, most of companies or organisations are moving neck to neck, whereas other remains at bottoms. There is no end of competition in the business world. There is no final winner; the best any company can achieve is to be in the lead. But there is a looser who are driven out, withdrawn or driven out by another company. When one business is driven out, the competition will move on with different sustainable business
In today's business world, globalization has become very common. Globalization helps business to establish themselves in foreign market and compete against other business which are located in different part of the world. Due to globalization, organisation needs people with different talents in each department which are not limited to one place or country but are spread all over the world.
With the increasing demand of talented staff at all level of the organisation, a system is necessary which helps the organisation to identify new talent and retain available talent. Success of an organisation does not only depend upon the talented CEO or board of director of the company but all the talented staff who are working in the value chain of the company. According to Cunningham (2007), "Talent management is a hot issue in many organisations. CEOs and other top managers are concerned about having the talent to take their businesses forward and they often concentrate on talent acquisition". Most of the organisations are leading in business world because of successful talent management. Business should be able to retain talented people which will help them to meet their objectives. Some of the activities focused by talent management are as follows (Bean, 2007):
Recruitment - Company should market itself in such a way that talented people will be attracted to work for them. First step is to look for talented people within the organisation who can be selected for the required position. As they can understand the business, their responsibility etc. If not, company will have to advertise its job in number of ways to attract talented people. It depends upon the nature of the job and requirement of the right people. Some job requires experience people who already have proved themselves in similar job elsewhere. Recruiting those people will save company from providing training as they will already be familiar with the situation. Whereas some job will be suitable for people who are just out from university or college and have no real life experience. Companies can provide guidance and support to them and help them to develop their emerging talent. Recruiting inexperienced people and helping them to nurture their talent is a risky task as everyone who is academically talented may not perform well in real life situation. Company should be willing to take this risk (BNET Editorial, n.d).
Retention - Organisation should reward employees whose contribution is vital for them and also provide support programs so that their talent can be utilised effectively. Employees feel motivated to utilise their talent more effectively in an environment where it is appreciated and is rewarded. Time and again organisation should hold events which will recognise the effort and dedication shown by the employees.
Employee development- Organisation should provide learning and development opportunities for employees for developing their skills. Employees feel motivated to work for organisation where their talent is appreciated and where there is option for improve their talent.
Leadership development- organisation should provide development program for employees who are at high level management.
Performance management system- organisation should implement performance management system which can measure performance of employees and provide feedback and necessary support for their improvement. This system is important for both organisation and individuals for achieving their objectives.
As the process of globalisation increases, companies must incorporate talent value chain which delegates workload to talented individual at each level of the value chain. According to CIPD (2009), following factor affects the talent management.
Source : http://www.cipd.co.uk/subjects/recruitmen/general/talent-management.htm
Many organisations have focus on competitive advantage to develop the business and to lead the competitors. According to Michael Poter (n.d), there are two basic types of competitive advantage:
Cost leadership - Company uses this strategy to become the lowest cost producer in a particular industry to gain competitive advantage against its competitors. Primark can be use as example for cost leadership at the current market for supplying cheap goods to the customer.
Differentiation focus- in this strategy, company focus to be different from its competitors. The company selects one or more criteria used by buyers then positions itself to meet those criteria. This helps to provide additional benefit than the competitor's product.
Talent management provides an organisation with better and flexible workforce. It provides the organisation with the ability to become competitive in this increasing global economy (Dyer, 1998). Organisations are using talent management as a tool for improving recruitment, retention, managing workload and for responding to employee diversity.
Talent is very important in an organisation. Highly talented people have different values and motivation from different majority of the people. Many organisations are being close or withdrawn from the market because they have low skill management or managers who don't have the talent or knowledge about business. So to compete with competitors, organisations need high skill talented people.
The primary objective of any business is to create high performance work place. It can be characterised by their creativity, innovation, flexibility and competitiveness (Cavell, 2004). An organisation should inspire high talented workers to join and work for them to lead the organisation in competitive world.
Talent management in organisation is also affected by external context such as: global competition, government policies and technological development. With increase in global competition organisation needs different types of people who have different skill set. Business should be able to identify those skills and use them for gaining competitive success. As the government policies are constantly changing organisation should provide training and support to staff which will help them to utilise their talent according to new policies. Due to changing technology business need to keep up with them by hiring new talent or providing opportunities enhance their knowledge through training and support.
Before the responsibilities of the talent management was left to human resource (HR) department but now organisation have realised that top level management must also be responsible for its effectives management.
According to Joyce (2009), three elements need to be considered for providing best talent at all level. They are:
The working culture needs to promote success behaviors, enabling everyone to do their best work.
Managers need to understand their role as talent scout.
High performers need to be given their head and supported to deliver innovative solutions.
Role of top talent in organisation
Cavell (2004), Employer of choice. [online] Available at: http://www.linnergy.com.au/Documents/EmployerofChoice.pdf [Accessed on 16th February 2010]
Bean (2007) Importance of talent management - performance management system vital to HR. [online] Availabe at http://ezinearticles.com/?Importance-Of-Talent-Management---Performance-Management-System-Vital-To-HR&id=673578 [accessed on 15th February 2010]
BNET Editorial (n.d) Attracting and Retaining talented employees. [Online] Available at: http://www.bnet.com/2410-13056_23-64252.html [Accessed on: 18/02/10]
Cunningham (2007) Talent management: making it real: Development and Learning in Organisations, 21 (2), Available from: http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0810210201.html [Accessed on 8th February 2010]
Dyer (1998) Flexibility models: a critical analysis: international journal of man power, 19 (4), Available from : http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0160190401.html [Accessed on 9th February 2010]
Joyce (2009) Shine your light: using talent management as a driver for business success: Human Resource Management International Digest, 17(7) Available from http://www.emeraldinsight.com/Insight/ViewContentServlet?contentType=Article&Filename=Published/EmeraldFullTextArticle/Articles/0440170712.html [Accessed on 15th February 2010]
Kippenberger (2000) the competition the name of the game, The Antidote, 5 (5), Available from: http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Output/Published/EmeraldAbstractOnlyArticle/Pdf/2700050501.pdf [Accessed on 8th February 2010]