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Employee Resourcing m.blackburn@shu.ac.uk.

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Presentation on theme: "Employee Resourcing m.blackburn@shu.ac.uk."— Presentation transcript:

1 Employee Resourcing

2 Session overview Resourcing define Resourcing strategies
Talent management critique

3 The context for people resourcing

4 HRM – what is it? Strategy Performance HRM Resourcing Reward
Development Relations Strategy Performance

5 Adding value “...task [of HR] is to convince line executives that HR is providing a value-added contribution to the firm in order to gain equal footing with other functional areas in the decision making process” Wright et al (1998, p3) Wright, P. M., McMahan, G. C., Snell, S. A. & Gerhart, B. (2004) ‘Comparing Line and HR Executives’ Perceptions of HR Effectiveness: Services, Roles, and Contribution’ Working Paper 98-29, CAHRS / Cornell University. Available from: Downloaded: 19th September 2011.

6 Disciplines Playing a Part in HRM

7 The role of People resourcing

8 People Resourcing - Definitions
“... how to get the right people in the right place and how to keep them” Torrington et al (2011, p156) “People resourcing is that part of human resource management (HRM) which focuses on the recruitment and release of individuals from organisations, as well as the management of their performance and potential while employed by the organisation” Pilbeam and Corbridge (2010, p2) “... The range of methods and approaches used by employers in resourcing their organisation in such a way that they can meet key goals” Taylor (2008, p3) Pilbeam, S., and Corbridge, M. (2010) ‘People resourcing and talent planning’ 4th Edn. Harlow: FT Prentice Hall Taylor, S (2008) ‘People Resourcing’ 4th Ed. London: CIPD Torrington, D., Hall, L., Taylor, S., and Atkinson, C (2011) ‘Human Resource Management’ 8th Edn. Harlow: FT Prentice Hall

9 A strategic perspective

10 The context for Human Resource Management (Devanna et al 1984)
Organisational Mission Strategy Human Resource Management Technological Economic Political Social/ Cultural Forces (including competition) Structure and Processes

11 Brewster and Bournois (1998)
National Culture including Laws, Industrial Relations, Labour Markets etc Sector Organisational size structure and culture HR Strategy Recruitment Training Pay Employee Relations Flexibility Behaviour Performance Cost effectiveness of HRM Corporate Strategy

12 Effective People Resourcing
The next model (Stephen Pilbeam and Marjorie Corbridge (2010, p4) ) shows all the functions of People Resourcing. It demonstrates the integrative and holistic approach to effective people resourcing. It shows the context in which People Resourcing exists.

13 Pilbeam, S. & Corbridge, M (2010) ‘People Resourcing and Talent Planning’: HRM in practice 4th Edn. Harlow: Financial Times Prentice Hall

14 Strategic integration
Alignment –focused perspective “the ability of organisations to integrate HRM issues into their strategic plans to ensure that the various aspects of HRM cohere and for line management to incorporate an HRM perspective in their decision making” Beardwell & Claydon (2010, p10) Beardwell, J. & Claydon, T (2010) ‘Human Resource Management: A contemporary approach’ 6th Edn. London: Financial Times Prentice Hall

15 Vertical and horizontal integration
Strategic objective: “To create highly profitable product innovations through our amazing people” Employee relations “We must have lots of expensive initiatives to show our people we think they are amazing” People Resourcing “We must recruit the best innovators from outside” Learning and development “We must train our own people to be the best innovators” Employee Reward “We must reduce the wage bill to maximise profit” Group Exercise – suggest for this first one you leave people together but warn of future rotations As the group first of all to have a look at the strategic objective of the organisation and the individual HR strategies underneath – do they each deliver against the organisations strategic objective? Have a discussion about this being vertical alignment – they all are aiming at the organisation’s objectives. Click and have the horizontal arrows around horizontal alignment appear – ask them to go into their groups – do they feel that the organisation has also got horizontal integration – are they are all supporting each other across the HR area – or is there a contradiction and if so – what might they suggest on their flip charts could be an alternative suite of HR strategies When you’ve fed this back – looking at their alternatives – suggest this is their first experience directly related to their case study – they need to look to see if all of the different streams in HR are aligned with the organisational strategy and particularly with each other. Don’t forget with the PR question it needs to be about the PR area mostly. Finally – do they think that the problems are the same for smaller companies? The SME?

16 Other strategic perspectives
Battle metaphor - beginning with ‘the war for talent’: Michaels et al (1997) – McKinsey consultants Let’s be critical... could they (consultants) have had a hidden agenda? Future-orientated perspective: HR planning and succession planning Let’s be critical – is this really possible to see into the future? Employment market perspective: Responding entirely on the company’s employment markets Let’s be critical – isn’t it a bit short-term/late in the day? Useful overviews of these other perspectives can be found from page 11 in: Taylor, S. (2011) ‘Resourcing and Talent Management’ 5th Edn. London: CIPD Is any one approach the right answer?

17 Talent Management a critical perspective

18 Exploring the origins

19 So you don't really know what it is!
Definitions Core concept of talent is “organisationally specific; highly influenced by the type of industry and the nature of its work [and] dynamic, and so likely to change over time according to organisational priorities.” CIPD (2007, p3) However they went on to define talent as “those individuals who can make a difference to organizational performance, either through their immediate contribution or in the longer term by demonstrating the highest levels of potential.” will take place. (ibid) Critical bubble So you don't really know what it is!

20 Definitions "[a] disturbing lack of clarity regarding the definition, scope and overall goals of talent management” Lewis and Heckman (2006, p139)

21 Underlying assumption
“[organisations] that will win in the competitive arena are those that are the best at locating, assessing, recruiting, and keeping the most talented people.” Pfeffer (2001, p248).

22 Origins of the concept This is the popular current story:
Chambers et al (1998) consultants who first coined the phrase, ‘The war for talent’. Headline for an article they published in their own organisation’s (not peer-reviewed) journal. They warned of organisations having to fight ‘recruiting battles’ (ibid, p2) with other organisations: To retain their existing talent and win new talented resources from their competitors. Critical bubble Are they consultants looking for the next big idea to sell to their customers?

23 So what did they recommend?
the “dominant strategy” for talent management is the identification, development and retention of high calibre people …“regularly hiring of executives from outside” Chambers et al (1998, p6) Critical bubble What messages are you getting here?

24 Who did they quote as an advocate of their approach?
Michaels et al (2001) published an article also entitled “The war for talent” Who did they quote as an advocate of their approach? Kenneth Lay Chairman

25 So it's war is it? “metaphor exerts a formative influence on language, on science, on how we think, how we see, and how we express ourselves on a day-to-day basis” Gareth Mogan (1998, p5) Critical bubble 'War' why? Help 'female' HR professionals sell the concepts to 'male' Chief execs? Help 'male' Chief execs talk to subordinates about winning a 'war' rather than 'championing', 'operating', 'running', 'managing'?

26 Would this have worked? To help us have the best people we need a 'marriage' between the talent and the organisation!

27 Guess the year? "The management of a business must... select, train and develop management people to cope with the political, social and technical changes we face today" “In any management-apprentice program four steps are important to success: (1) Selection; (2) Teaching; (3) Broadening through exposure; (4) Releasing talents.” Given Jr: 1949

28 Given's recommendations
Responsibility which “rests... on the board of directors”, (p75) “To succeed in the building of future managers, that cause must have high priority on the time and planning of executives throughout the line management” (p78) “Scarcity of available younger men [sic]” (p77) “Adequately trained successors” (p77) “Exposure to different phases of a business” (p92) “... coaching and encouraging them” (p92) Given Jr, W. B. (1949) in Bower, M. (1949) ‘Development of Executive Leadership’, Cambridge Massachusetts, Harvard University Press.

29 Some details Given Jr was an executive in the American Brake Shoe Company Contribution to a Harvard University Press book Bower (1949), the original editor of the book worked for Mc Kinsey and Company as did Chambers et al (1998) who championed an approach very akin to the one above when writing about the 'War for Talent' almost 50 years later!

30 “three fundamental forces fuelling the war for talent”
(Michaels et al 2001, p3).

31 Force 1 A move to 'knowledge' rather than 'skill'
“The capital assets that are needed to create wealth today are not land, not physical labor, not machine tools and factories. They are, instead, knowledge assets”. Stewart (1997, px)

32 Force 2 Increase in the demand for talent
Why? “People are the last weapon of competitive advantage in the global market today… Products can be quickly duplicated and services cheaply emulated – but innovation, execution, and knowledge cannot.” Knowledge Infusion (2006, p3) Who is the talent? “smart, sophisticated business people who are techno-logically literate, globally astute, and operationally agile.” Fishman (1998) cited by Trank et al (2002, p332).

33 Force 3 The growing propensity for people to switch from one company to another. ‘Generation Y’ individuals whom “have never expected loyalty from a company, nor have they expected to give it.” Holbeche (2010, p180) Plus: imminent retirement of baby boomers less young people entering the workforce (both western phenomena) “demographic shifts… combining to produce something like a perfect storm” Ready & Conger (2007, p70).

34 Is this the current reality?
A new business reality. Michaels et al (2001, p6)

35 What is talent management?

36 How is this different from a HR strategy?
An advocate…. Dattagupta (n.d.) writing for PriceWaterhouse Coopers defends the concept by stating “[Talent Management] is the strategic management of the flow of talent through an organization… the talent mindset is not just another HR fad…”  ‘Steps to take in defining and implementing an effective talent management strategy’ Dattagupta (n.d.) Critical bubble How is this different from a HR strategy?

37 “Is talent management just ‘old wine in new bottles’
“Is talent management just ‘old wine in new bottles’?...” Chuai et al (2008) “TM [Talent Management] is… a more directed and detailed focus by management upon certain groups of people; that is, ‘‘talents’’ as against HRM’s focus on the management of all staff” (ibid, p905). Critical bubble So isn't this strategic HRM just focused on specific members of the organisation?

38 So is it anything new? David Guest suggests that even if it is re-branding existing practices to make them more palatable it is a good thing if it: “enables wise organizations to review what they are doing. It integrates some old ideas and gives them a freshness, and that is good” (Guest cited in Warren 2006, p29).

39 Talent management modelled
Critical bubble Where is the role of the Exec (Top Team)? Ready and Conger (2007) Critical bubble Where is identification of talent and reward? Dattagupta (n.d.) What can be seen from this illustration is that talent management is clearly linked to business strategy and combines elements of attraction, retention and development. What is interesting about the Armstrong model is that succession planning and career management were both concepts that had appeared to have reached their zenith in the 1980’s and were then overtaken by the view that people and organisations moved too quickly for committed ‘long-term’ employee deployment and development plans. Cohn et al (2005, p5) writing about Talent in the Harvard Business Review supports Armstrong’s views by stating “Succession planning was the critical starting point… [it] should drive leadership development at a company” Armstrong (2009, p582)

40 So what does it contain? 5 Imperatives Michaels et al (2001, p11)
8 Categories of Initiatives Morton (2004) 6 Human Capital Management strategies Fitz-enz (2006, p16) Embrace a talent mindset Culture Craft a winning employee value proposition Retention Rebuild your recruiting strategy Recruitment Staffing Weave development into your organisation Professional Development Leadership/High Potential Development Leadership development Employee development Differentiate and affirm your people Workforce Planning Performance Management Feedback/Measurement Workforce planning Performance management Michaels et al spoke about the 3 forces fuelling the need for talent - this is what they identified in the behaviour at the 5 imperatives. Not an alternative name for talent management - Human Capital Management.

41 3 broad strands of thought Iles (2010)
Talent management is little more than Human Resource Management Talent Management "uses the same tools as HRM, but the focus is on a relatively small segment of the workforce" (p181) Talent management is more of a process: “the strategic management of the flow of talented employees through a variety of roles and jobs in an organisation” (p181). Strategic Talent Management, Collings and Mellahi (2009, p306) odel comprises “processes that involve the systematic identification of key positions which differentially contribute to the organisation's sustainable competitive advantage, the development of a talent pool of high potential and high performing incumbents to fill these roles, and the development of a differentiated human resource architecture to facilitate filling these positions” (ibid, p304)

42 A useful definition? "Talent management is the systematic attraction, identification, development, engagement, retention and deployment of those individuals who are of particular value to an organisation, either in view of their ‘high potential’ for the future or because they are fulfilling business/operation-critical roles" CIPD, 2011 CIPD Fact Sheet Talent management: an overview Revised June 2011 [Available from:

43 Underpinning research

44 The original research McKinsey (who also employed Chambers et al (1998)) produced some results which indicated that “The companies in our survey that excel in talent management achieved total returns to shareholders that were 22 percentage points better than the average in their industry.” McKinsey & Company (2001, pp. 1-2).  But… there is little detail on the construct of the survey how it was managed the sampling approach (for example was it just previous McKinsey customers on their database) it wasn’t peer reviewed produced by a company with the potential to receive a strong benefit from its outcome.

45 CIPD Learning and Talent Development Survey 2011
"As was the case last year, only half (50%) of organisations with talent management activities rate them as effective." Of these only a very small minority (3%) rate them as very effective. One in five (18%) report they are fairly ineffective and 3% very ineffective. The effectiveness of talent activities does not vary significantly across sectors and is not significantly affected by whether organisations have a specific training budget or not. Very small organisations (fewer than 50 employees) are most likely to report their schemes are effective (78%), but there are few differences among organisations of other sizes." (CIPD 2011, p16)

46 Supporting research… Trank et al (2002) produced some work on how to attract applicants in the war for talent. Their subjects were college sophomores, juniors and seniors. Critical bubble Can they really be considered representative of high-potential organisational talent?

47 HR and Talent Management
Research by Hiltrop (1999, p427) suggests that “human resource practices have a significant effect on the (perceived) ability to attract and retain talented people”. This research suggests the most effective practices: create opportunities for training and development enhance the level of teamwork and participation enhance levels of autonomy and decentralisation of decision-making.

48 How would you measure success?
“…success is quite often measured by the percentage of people in top (and middle) management positions who were initially identified as high flyers and have been through the fast-track programme. However, this does not tell whether the organization has actually identified and developed the “best” people, or if it is a self-fulfilling prophecy.” Larsen (1997, p50) It seems then that not only are there potential issues with indicators of success, objectivity can also be called into question, as highlighted in the two examples below

49 So what do the critics have to say?

50 Critical issues to consider…
Issue with the talent pools approach: the early identification of talent could “exclude those having taken career breaks (usually women) or those who have decided on a switch in career later in life” Talent Pools mean that there are therefore potentially gender (or age) discriminatory practices that UK organisations need to protect against. Clark (1992, p139) Clark, F.A. (1992), Total Career Management, McGraw-Hill, Maidenhead.

51 Pfeffer (2001) the focus on individuals rather than teams has a negative impact on team working. the potential to create unhealthy organisational turnover (high talent demanding their perceived worth and job opportunities or leaving) as well as the undervalued (‘un-talented’) becoming de-motivated and unproductive. the creation of an organisation that inappropriately believes it is invincible because it is ‘winning the war for talent’ (ibid, p250). rather than fixating on just 10% of the organisation through a focus on talent management, organisations should instead create inclusive “culture and systems” within which the vast majority of the organisation can perform effectively. (O’Reilly III & Pfeffer, 2003, p2)

52 Line managers will… Walker and LaRocco (2005):
hide talent (so as not to lose good performers from their team) wrongly identify performance as potential be reluctant to publicly change their opinions about talent. Yarnall (2009): restrict developmental roles, with managers hiding them to prevent risky developing talent taking them.

53 Risk management Yarnell (2009) risks in deploying talent to developmental opportunities: will the talented individual be able to cope? will the organisation survive their naïve ministrations?

54 Is retention enough? Ready and Conger (2007) surveyed 40 HR executives and found that despite 97% of the organisations having a formal approach to talent identification and development, “virtually all of them indicated that they had an insufficient pipeline of high-potential employees to fill strategic management roles” (ibid, p69)

55 Deploying the talent The second piece of data comes from the PWC 13th Annual Global CEO Survey (2010, p31-32). Within this survey, 79% of CEO’s found that their talent management strategies were ineffective. The talent proved to be ill-equipped to respond to the economic crisis and difficulties were experienced moving talent rapidly to areas in need. The survey suggests that “Organisations will have to find more agile ways of deploying and reallocating talent to where it is most needed.” (ibid, p32) Critical bubble So… it is over 10 years since the war began but organisations are still unable to ‘fight’ unexpected ‘battles’ with their talent.

56 McKinsey and Co (2007) T + D; Feb 2007; 61, 2; ProQuest Education Journals pg. 16

57 Talent management in an economic downturn:
“Rather than a ‘war for talent’ there currently seems to be a ‘war on talent’ CIPD (2009, p1) Talent management in an economic downturn: Organisations focusing on engaging, motivating and fully utilising existing staff Recruiting dis-guarded talent Greater critique of talent processes (RoI) Honest discussions between LM and employee Maybe avoid inappropriate financial incentives as budget restricted Creative approach to non-financial rewards Ethical leaders who motivate sought CIPD (2009) ‘The war on talent? Tlaent managment under threat in uncertain times: Part 1’ Available from: Date downloaded 13th November 2012

58 Innovative practices: CIPD (2009, p10)

59 Global Talent Management
Framework of global talent management (GTM) in MNEs: Tarique & Schuler (2010): Exogenous [external] drivers of talent management: Globalisation Demographics Demand-Supply gap Exogenous drivers of GTM challenges Regiocentrism (region and industry specific) International Strategic Alliances (eg outcomes of M & A activities) Required competencies IHRM Activities Attracting Talent Developing Talent Retaining Talent GTM Effectiveness Improve HRs impact Competitive advantage Talent positioning Tarique, I and Schuler, R.S. (2010) ‘Global talent management: literature review, integrative framework, and suggestions for further research’ Journal of World Business, Vol pp

60 What do you think about talent management
Your turn! What do you think about talent management


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