Strategic Employee Resourcing & Talent Management

Strategic Employee Resourcing

Employee can be regarded as the prime asset of an organization, and businesses strategically need to invest in that asset to ensure their survival and growth. Constantly changing business environment presents organizations/companies with a complex challenge on how to meet staffing needs while preparing for strategic future needs of the organization. 

Figure 1-Strategic Employee Resourcing

Armstrong (2012) remarks that "strategic resourcing" is a key element of strategic human resource management & matching human resources to the strategic & operational requirements of the organization is important to fully utilize the resources.

Further he explains that it is concerned not only with hiring & keeping the number and quality of staff required, but also with choosing & promoting people who "fit" the culture and the strategic requirements of the organization.

Talent & Talent Management

By managing talent strategically, organisations can build a high performance workplace, encourage a learning organisation, add value to their branding agenda and contribute to diversity management.

* What is talent ?

A comprehensive perspective on how an organisation could segment its workforce to ensure broadness of talent development was offered by Ulrich and Smallwood in 2011. They worked on the assumption that everyone who work in the organisation should be considered to be a talent. 

Figure 2-  What is Talent?  (Ulrich and Smallwood 2011)

According to Tansley (2007) "Talent" consists the employees who can make a difference to organizational performance either through their immediate contribution or in the long term, by demonstrating the highest level of potential.

* Talent Management

According to Silzer (2010) Talent management is an integrated set of processes, programs & cultural norms in an organization designed & implemented to attract, develop, deploy and retain talent to achieve strategic objectives & meet future business needs. Further he explains that talent management is simply a matter of anticipating the need for human capital in order to fulfill current & future business operations in the organization. 

Connection between the Strategic Employee Resourcing & Talent Management

Resourcing strategy ensures that the organisation obtains and retains the people it needs and employs them efficiently. The objective of resourcing strategy is to find the most suitable workforce the organisation needs, with the appropriate qualities, knowledge, capabilities and potential for future training. The aim of this strategy is to ensure that an organisation achieves competitive advantage by employing more capable people than its rivals (Cristian, 2007)


References

Armstrong, M. (2012). Armstrong's Handbook of Human Resource Management Practice, 12th Ed. UK

Cristian, M. & Stefania, R. (2007). Human Resources Strategies 

Silzer, R. & Dowell, E. (2010). Strategy Driven Talent Management

Tansley, C. et al (2007) Talent Strategy, Management Measurement. CIPD, London

Ulrich,D. and Smallwood,N. (2011) What is talent, Michigan Ross School of Business, Executive White Paper Series.

Employee Recruitment & Selection challenges

According to Armstrong (2009) recruitment is the process of finding and engaging potential candidates at a minimum cost to fill the vacant positions in an organization. Selection is a part of the recruitment process concerned with deciding which applicant should be appointed to jobs.The recruitment and selection process consists of 4 stages.

 1. Defining recruitment -  Preparing job role and specifications, deciding terms and conditions of employment.
2. Planning and recruitment campaigns - Organizing/planning campaigns to find suitable candidates/applicants.
3. Attracting candidates - Evaluate the alternative sources of applicants, advertising, e-recruiting
4. Selecting Candidates - Interviewing, testing, shifting applications, offering employment, obtaining references, preparing contracts for employment.

Figure 1-Why is it Important to Have an Effective Recruitment
& Selection Process (2016)

Richardson (2003) explains that poor recruiting decisions can produce long term negative effects such as high training and development costs, impact on production of goods and services, and ultimately  the organisation can fail to achieve its objectives due to the poor recruiting.

Global HR Challenges to the Recruitment and Selection process 

1. Labor Market Conditions

According Gusdorf (2008) strength of the economy and labor market conditions will have a significant effect to attract and retain top-level employees. In a strong economy with little unemployment, organization will have to offer higher incentives, compensation or benefits to attract quality applicants.

2. Promotion From Within

Most of the companies use internal promotion process as an employee motivational tool and a rewarding scheme for good work and long term relationship. Internal promotion process creates a staffing gap in their former position and it still creates a position to fill. However that gap is likely to be filled by a lower, less-skilled employee and it has become a challenge for the companies.  

3. Nepotism

Nepotism is hiring of relatives. When hiring relatives most employers require a family members to work in different areas of the organization to prevent favoritism issues and moral problems among employees.

Equal Employment Opportunity Versus Affirmative Action

According to Dessler (2013) equal employment opportunity aims to ensue that regardless of age, national origin, sex, disability, race or color they have an equal opportunity on selection processes such as recruitment, hiring, promotions and compensations.

Affirmative Action is a management tool designed to ensure the equal employment opportunity among employees.
* As an example, a contractor monitors, its employment decisions and compensation systems to evaluate the impact on women and minorities in the organization is an affirmative action.

References

Armstrong, M.(2009). Armstrong's Handbook of Human Resource Management Practice, 11th Ed

Dessler, G.(2013). Human Resource Management, 13th Ed

Gusdof, M. (2008). Society for Human Resource Management

Richardson, M. (2008). Recruitment Strategies - Managing & Effecting the Recruitment Process

Dominant challenges in HRM

Dominant challenges in HRM

The management of organizations have found that human resources have the greatest importance in gaining sustainable competitive advantage and efficiency. Human capital, which shows the creativity, volume of knowledge, technical skills and experience of the organization, gains great importance, thus labor force is considered as productive assets not costly assets (Hendricks, 2002)

According to the survey of Global HR challenges: yesterday, today & tomorrow Conducted by Price water house Coopers, they have identified 3 main global challenges in HR 

1. Change management - 48%

It is a structured approach to transform individuals, teams, and organizations from a current state to a desired future state, to fulfill a vision and strategy. There are several different streams that have shaped the practice of change management

  Change Management :-

• As a systemic process

Adopting to corporate strategies, structures, procedures and technologies to deal with  change internally & externally.(Survey Report of Society for Human Resources Management, 2007)

• As a tool of Transitioning People

 According to the survey of Manager’s Toolkit for Managing Change (2008), It enables people to accept new processes, technologies, systems, structures and values. It is the set of activities that helps people transition from their current way of working to the future desired way of working.

• As a Competitive Tactic

 According to Kudray (1997) it is the continuous process of aligning an organization with its marketplace while being effective than competitors.

2. Leadership development - 35%

Leadership development also proves to be a big challenge. HR professionals continue to fight with understanding the best ways to keep people in the pipeline and develop leaders for future succession planning.

Key (2010) said that leadership is about many things including integrity, hard work, believing in yourself, perseverance, and being part of a team with a high degree of trust. 

According to Macpherson (2010), there are three attributes essential to become a successful leader 
* Resilience
* The ability to work across difference
* The ability to learn. 
Further he explains that a leader can’t come in and impose a plan from the top. The solution has to be created collectively by all the different stakeholders.


3. HR effectiveness measurement - 27%

Human capital is a key component of the market value in any organization.Therefore management needs to focus on planning, recruiting, stabilizing, developing and optimal exploitation of human resources. 

According to Majerova (2008) measuring of the human resource effectiveness means, tracking the achievement of strategic objectives in human resource management and for evaluating of work with human resources.

Referances

Global HR challenges: yesterday, today & tomorrow Conducted by Price water house Coopers (2005). Available at: 
http://wfpma.com/sites/wfpma.com/files/PDFs/hrglobalchallenges.pdf 

(Accessed on 8th May 2018 at 8.30 pm)

Hendricks, L. (2002). How important is human capital for development?

Key, J. (2010). Leading a nation through recession

Kudray, M. and Kleiner, B. (1997) Global Trends in Managing Change

Macpherson, R. (2010). Social Leadership

Manager’s Toolkit for Managing Change (2008). Availabel at:
https://engagelms.scranton.edu/learn/pluginfile.php/54952/mod_resource/content/1/Managers_Toolkit_for_Managing_Change.pdf 
(Accessed on 8th May 2018 at 10.00 pm)

Majerova, R. (2008). Measuring of the Human Resource Effectiveness 

Society for Human Resources Management, 2007 Change Management Survey Report

How Globalization effects on HRM

Globalization

Figure 1- Poverty and the Impacts of Globalization on the
African Economy (Owusu, 2014)

Globalization is the trend of increasing interaction between people or companies on a worldwide scale with the development in transportation and communication technology. In other words, if a firm or an organization expands its sales or production beyond the national boundaries, it's globalization.

According to Onday (2016), with globalization, people are now part of a worldwide economy with competition coming from every continent. Due to this reason, profit and nonprofit organizations need diversity for being creative & open to change in order to maintain the competitiveness in global market.

Sparrow (2004) stated that globalization is often represented as a new stage in world development.

Connection between the Globalization & HRM

Nowadays HR managers don't not need to rely on a limited market to find the right employees that are needed to fight with the global challenge, rather they can recruit the employees from all around the world meaning that due to globalization to some extent HRM has became more efficient, effective and simple.

Figure 2-The State of Diversity in Today’s Workforce (Burns, 2012)

The most important factor is that these organizations are made up of People, and since HRM is the set of activities which deals with the people in any organization, this change has affected the human resources management itself a lot. Human resources manager must ensure to recruit the appropriate mix of employees in terms of knowledge, skills and culture.

Bamber (2004) stated that best practices are not universal & adaptations required to use them effectively. Customizing the HRM techniques is the responsibility of the management body

Some of the challenges that HR managers are facing in terms of globalization are : Managing diversity of workforce, Managing pressures for more labor rights in third world countries, More part-time and temporary work, Coping with flexible working hours, Managing productivity and Quality.

With a population of only four million in Singapore, they have striven towards a knowledge-based economy & high level of technology, mainly due to the foreign talents are absorbed to share their experience which is a very good example for managing the diversity of workforce within the country.

Referances

* Bamber,G. Ryan,S, & Wailes,N. (2004). Globalization, employment relations and human resources indicators in ten developed market economies

*Burns,C. Barton,K. and Kerby,S. (2012). The State of Diversity in Today’s Workforce

*Onday,O. (2016). Global Journal of Human Resource Management

* Owusu, D. (2014). Poverty and the Impacts of Globalization on the African Economy 

Available at : https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjE75-BrxcJvZYpE7sbLf1jBFhxTImWClIS_xJJrCYn_bpRU03ypPbsR_vwlyARSqkCKrxJ1aWNUazl9VdykVgC4UP78TyZFjmyopw4Vv_FHsFPNh-kP6JDVoQEETdAIfgKeFCpxLGhXGK6/s1600/THEIMPACTOFGLOBALIZATION.gif

*Sparrow, P. Brewster, C. and  Hillary, H. (2004) Globalizing Human Resource Management Routledge London and New York