Talent on demand?. Talent management in the German and Irish subsidiaries of a US multinational corporation
| Date | 08 June 2010 |
| Published date | 08 June 2010 |
| DOI | https://doi.org/10.1108/00483481011045399 |
| Pages | 414-431 |
| Author | Ralf Burbach,Tony Royle |
| Subject Matter | HR & organizational behaviour |
Talent on demand?
Talent management in the German and Irish
subsidiaries of a US multinational corporation
Ralf Burbach
Institute of Technology Carlow, Carlow, Ireland, and
Tony Royle
JE Cairnes School of Business and Economics, NUI Galway, Galway, Ireland
Abstract
Purpose – As the interest in talent management (TM) gathers momentum, this paper aims to unravel
how talent is managed in multinational corporations, what factors mediate the talent management
process and what computerised systems may contribute to the management of talent.
Design/methodology/approach – The study employs a single case study but multiple units of
analysis approach to elucidate the factors pertaining to the transmission and use of talent management
practices across the German and Irish subsidiaries of a US multinational corporation. Primary data for
this study derive from a series of in-depth interviews with key decision makers, which include
managers at various levels in Germany, Ireland and The Netherlands.
Findings – The findings suggest that the diffusion of, and success of, talent management practices is
contingent on a combination of factors, including stakeholder involvement and top level support,
micro-political exchanges, and the integration of talent management with a global human resource
information system. Furthermore, the discussion illuminates the utility and limitations of Cappelli’s
“talent on demand” framework.
Research limitations/implications – The main limitation of this research is the adoption of a
single case study method. As a result, the findings may not be applicable to a wider population of
organisations and subsidiaries. Additional research will be required to substantiate the relevance of
these findings in the context of other subsidiaries of the same and other corporations.
Practical implications – This paper accentuates a number of practical implications. Inter alia,it
highlights the complex nature of institutional factors affecting the talent management process and the
potential efficacy of a human resource information system in managing talent globally.
Originality/value – The paper extends the body of knowledge on the transferof talent management
practices in the subsidiaries of multinational corporations. The discussion presented herein may
engender further academic debate on the talent management process in the academic and practitioner
communities.The link between talent managementand the use of human resource informationsystems
established by this research may be of particular interest to humanresource practitioners.
Keywords Skills, Managementdevelopment, Multinationalcompanies, Germany, Ireland,
The Netherlands
Paper type Case study
Introduction
Talent management as a corporate area of focus has been building steadily. Like a
fast-approaching car, the closer it gets the more of it we are able to see clearly, despite the fact
that there is no real roadmap and no single individual or group behind the wheel (Galagan,
2008, p. 42).
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0048-3486.htm
This article was supported by the Institute of Technology Carlow (Ireland) Research,
Development and Innovation Support Fund.
PR
39,4
414
Personnel Review
Vol. 39 No. 4, 2010
pp. 414-431
qEmerald Group Publishing Limited
0048-3486
DOI 10.1108/00483481011045399
This quote illustrates a number of pertinent issues surrounding talent management
(TM). First, talent management as a process has been practiced by organisations for a
considerable amount of time, albeit in various reincarnations (Galagan, 2008). Indeed,
Patton (1967), in 1967, predicted that by the year 1975 the competition for talent would
reach its zenith. In a similar vein, Capelli (2008a) contends that va rious forms of TM
practices, such as trainee management schemes, forced-ranking systems, 360- feedback,
executive coaching or assessment centres, had been developed in the 1940s and 1950s
to create large pools of organisational talent. However, subsequent economic
downturns and an associated loosening of the labour market made these practices
redundant. Thus, it may be argued that the (re)emergence of TM is in fact part of a
cyclical process (Cappelli, 2008a).
Second, the concept itself seems to be ill-defined (Lewis and Heckman, 2006;
Tansley et al., 2006). In their review of the TM literature, Lewis and Heckman (2006)
contend that definitions of TM fall into one of three broad categories. The first of these
groups views TM as a combination of standard human resource management practices
such as recruitment, selection and career development. The second cluster of
definitions concentrates predominately on the creation of a large talent po ol, ensuring
the qualitative and quantitative flow of employees through the organisation – a view
that is akin to the principles of succession or human resource planning. The final
category regards talent in more general terms, whereby talent is either viewed “as an
unqualified good and a resource to be managed primarily according to performance
levels” or ...as an undifferentiated good, based on a demographic necessity to manage
talent (Lewis and Heckman, 2006, p. 141). Berger and Berger (2003) suggest that
“proactive” talent management ought to be based upon the identification, selection and
nurturing of key performers, the sourcing, development and allocation of replacements
for key personnel, and the allocation of resources to key talent; contingent on their
potential value to the firm. BNET (Talent Management, 2009) defines talent
management as:
[...] the recruitment, selection, identification, retention, management, and development of
personnel considered to have the potential for high performance. Talent management is a
model of personnel management. It focuses on the skills and abilities of the individual and on
his or her potential for promotion to senior management roles. It also assesses how much of a
contribution the individual can make to the success of the organisation.
This definition would fit into both the first and second categories of definitions
identified by Lewis and Heckman (2006). Even if we were to concur on a definition of
talent and talent management, organisations would still need to isolate the key
characteristics of talent as it is germane to their circumstances, what processes they
ought to employ to identify talent, whether they should “make or buy” talent, or
whether they should adopt an “exclusive” or an “inclusive” approach to identifying
talent. That is, whether firms should merely focus on developing managerial talent or
whether the focus should be on all potential talent at the disposal of the organisation.
Third, the need for and demand for talent management appear to be accelerating, as
firms purport to find it increasingly more complex to source skilled labour (Axelrod
et al., 2001; Chambers et al., 1998, Frank and Taylor, 2004; Lawler and Mohrman, 2003).
Whilst recessionary trends in the world economy and an associated lose labour market
may evidently ease the pressure on firms to manage talent, the potential pool of highly
skilled managerial talent remains limited.
Talent on
demand?
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