Introduction
When considering available resources in an organization,
People or Human resource can be considered as the most important and utmost
special for the existence of the organization in today’s competitive business
world. The organizations should adopt special processes in searching of the
best human resources and nurturing the selected best talents within the
organization is vital important for growth of the company. So the importance of
Strategic Employee Resourcing and Talent Management notions in searching of talented
human resources for the organizations is discussed in this article.
What is Strategic
Human Resource Management and why employee resourcing should be “Strategic”?
Have you ever wondered why the term “strategic” is coming as
a part and parcel with the term “Human Resource Management”? The fundamental reason
would be, managing human resources has a broader spectrum to address than
employee selection and conducting recruitments in an organization.
Following definition would help to keep the focus on
Strategic Human Resource Management through a more formal perspective;
“An approach to the development and implementation of HR
strategies that are integrated with business strategies and supports their
achievement”
Figure 1 - SHRM Model
(Armstrong, 2014)
In-line with above definition, following are the five
propositions on which Strategic Human Resource Management has been founded.
- HRM plays a strategic role in the organization’s success
- HR’s strategies should be integrated with those of the business
- It is people who ‘implement the business strategy’
- People are a source of ‘competitive advantage’ as defined by the Resource Based View of the firm (Wernerfelt, 1984 and developed by Barney, 1995)
- A ‘systematic approach’ should be applied to developing HR strategies. (Armstrong, 2011)
In order to further understand the vast scope of SHRM, the
Resource Based View (RBV) concept would help to clarify the SHRM focus with
respect of organizational resources. In a more formal approach, “The resource-based
view of the firm represents a paradigm
shift in SHRM thinking by focusing on the internal resources of the
organization, rather than analyzing performance in terms of the external
context” (Wisdom Jobs, 2018)
Figure 2 - Resource Based View
Why employee resourcing should be strategic?
When considering the employee resourcing process, why an
organization should adopt a ‘strategic’ process for their selections? Many
arguments can be provided in favour of this context for sure, but following
main areas can be mainly pointed out on why employee resourcing decision should
be strategic.
- A diverse workforce – more talent but need for equality and for legal compliance
- Increasing the need for more highly educated and trained employees
- The need for a close relationship between HRM strategy and corporate strategy
- Organizations are now more likely to use sophisticated techniques for recruitment and selection for all employees
In conclusion, for organizations which are having
multi-talented workforce who consist with highly educated and trained
employees, most likely to use sophisticated techniques for their employee
selection and recruitment processes. While keeping these objectives in focus,
adopting a strategic process on their employee resourcing decision would help
for the continuous growth of the organizations in a more effective manner.
What is Talent
Management and why Talent Management is so important for the development of the
organizations?
As the concept may sounds like, can Talent Management be
described as the set of activities involved in grooming and retaining the best
talented resources within the organization? Wrong, and this is only a partial
elaboration of one activity that is involved in the Talent Management process. So
let’s try to understand the broader meaning of the Talent Management concept
from HRM perspective.
‘The systematic attraction, deployment and development of
individuals who are of particular value to the organization, either because
they fulfil critical roles or they possess high future potential’
CIPD (2015)
According to “Nextgen People” (Nextgen People, 2018) the
Talent Management Life Cycle has been described as follows.
Figure 3 - Talent Management Life Cycle
The interconnected activities of the Talent Management Life
Cycle are;
Workforce Planning à
Talent Acquisition à
Onboarding & Engagement à
Development à
Performance Management à
Succession Planning
A report published by CIPD has identified two approaches as
“Exclusive” and “Inclusive” for Talent Management.
Exclusive Approach
for Talent Management
Collings and Mellahi (2009) focus on ‘the development of a
talent pool of high potential and high performing incumbents’ who can fill the
key positions in the organization and help to deliver ‘sustainable competitive
advantage’
Inclusive Approach
for Talent Management
Mckinsey and Co. invented the phrase ‘war for talent’ (1997)
and perceives value in talent at all levels.
The two strategies separately planned in an organization for
Employee Resourcing and Talent Management can be considered as in a broader
sense together as “bundling” processes. These two strategies can be hold
together and mutually strengthen each other in an organizational situation.
Armstrong proposes the following elements in “bundling” processes;
- Workforce planning
- Employee value proposition
- Resourcing plans which are integrated with a sense of practicality of recruiting the capabilities externally, the degree to which internal staff can be developed and a clear view of the shortfall
- Retention strategy.
After understanding the concept of Talent Management, let’s
try to focus on why it’s so important to invest in Talent Management for the
development of an organization.
- Employee Motivation
Investing in Talent Management would help to attract top
talents available in the job market towards the organization.
3 3. Retain top talents within the organization
One of the major problems of modern business organizations
are facing is the difficulties in retaining the top talents within the
organization. Investing in the various facets of talent management would help
for an organization to successfully overcome this problem and retain top
talents within the organization.
So in conclusion, adopting a strategic process for human
resourcing and investing in the many facets of Talent Management would help for
the continuous growth of an organization in today’s competitive business world.
References
Armstrong. (2014) People and Organisations: Principles and
Practice in Global Contexts. Lecture 1: Introduction to Human Resource Management
[Online] Available at
<http://lms.esoft.lk/course/view.php?id=240/>.[Accessed on 03 April
2018].
Armstrong. (2014) People and Organisations: Principles and Practice
in Global Contexts. Lecture 1: Introduction to Human Resource Management [Online]
Available at <http://lms.esoft.lk/course/view.php?id=240/>.[Accessed on
03 April 2018].
CIPD. (2015) People and Organisations: Principles and
Practice in Global Contexts. Lecture 2: Strategic Employee Resourcing and Talent
Management [Online] Available at <http://lms.esoft.lk/course/view.php?id=240/>.[Accessed
on 16 April 2018].
CIPD. (2007) People and Organisations: Principles and
Practice in Global Contexts. Lecture 2: Strategic Employee Resourcing and Talent
Management [Online] Available at <http://lms.esoft.lk/course/view.php?id=240/>.[Accessed
on 16 April 2018].
CIPD. (2007) People and Organisations: Principles and
Practice in Global Contexts. Lecture 2: Strategic Employee Resourcing and Talent
Management [Online] Available at <http://lms.esoft.lk/course/view.php?id=240/>.[Accessed
on 16 April 2018].
Nextgen People. (2018). Talent Management. [Online] Available at: https://www.nextgenpeople.com/talent-management/ [Accessed 16 Apr. 2018].
Wisdom Jobs. (2018). The resource-based view of SHRM - The resource-based view of SHRM HR Management (8741) | Wisdom Jobs. [Online] Available at: https://www.wisdomjobs.com/e-university/hr-management-tutorial-69/the-resource-based-view-of-shrm-8741.html [Accessed on 3 Apr. 2018].
Nextgen People. (2018). Talent Management. [Online] Available at: https://www.nextgenpeople.com/talent-management/ [Accessed 16 Apr. 2018].
Wisdom Jobs. (2018). The resource-based view of SHRM - The resource-based view of SHRM HR Management (8741) | Wisdom Jobs. [Online] Available at: https://www.wisdomjobs.com/e-university/hr-management-tutorial-69/the-resource-based-view-of-shrm-8741.html [Accessed on 3 Apr. 2018].