TALENT MANAGEMENT Success

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TALENT MANAGEMENT

AS A
  NEW PARADIGM
I N MANAGEMENT SCIENCE Vol. 5, No. 3, 2014, pp. 15–27
© Copyright by
Wydawnictwo Naukowe

Anna Mazurkiewicz Uniwersytetu Mikołaja


Kopernika
ISSN 2083-103X

http://dx.doi.org/
University of Rzeszow, Rzeszów, Poland, 10.12775/JPM.2014.017

e-mail: [email protected]

Abstract
The environment of contemporary organisations is defined as turbulent, due to novelty, speed and
unpredictability of performed changes as well as an increase of its complexity level. It is accompa-
nied with uncertainty of conducting an activity. New determinants require fast adjustment which
requires the changes in assumed priorities and as a consequence – new paradigms. One of the
paradigms is talent management. The aim of this study is to present talent management as a new
paradigm in a contemporary organisation. To fulfil this aim, the traits of the new paradigm were
presented, the meaning of talent management for strategic success of an organisation interpreted in
the context of satisfying the needs of particular groups of stakeholders was emphasised, and actions
which must be undertaken so as talent management contributes to this success were mentioned. The
consequence of the new paradigm – talent management, is emphasising the identification of key
resources of talent i.e. these for which the difference in quality and availability of talent significantly
influences the processes or resources in the greatest level influencing a strategic success – sustain-
ability, which concerns a wider aspect than a financial result only.
Key words: talent, talent management, paradigm, strategic success, sustainability
Paper type: Conceptual paper

1. Introduction
In the environment of contemporary organisations, there are numerous changes
having a demographic and technological character, there are also processes
of globalisation. The pace of changes is becoming faster and faster, there is
also unpredictability and, connected with that, uncertainty in the processes
of management, which cause that there will be new challenges put out to
organisations. The changes are made in expectations and requirements of
employees, customers and other groups of stakeholders. The previously applied
solutions turn out to be mostly inadequate for new determinants of functioning,
by means of which, they are ineffective and inefficient.
Organisations have to permanently master their actions, which also involves
the attitudes to human resources management. Regardless of the genotype function ■ 15
TALENT (the organisation of the private, public sector or non-profit), the basic resource of
MANAGEMENT AS
A NEW PARADIGM contemporary organisation is human capital. It is indispensible to change in the
Anna Mazurkiewicz
manners of actions referring to gaining employees and their retention in order to
 obtain success in the global competitive market. It is a particularly great challenge

 to employees of obtaining the best results and having the greatest potential –
 talented employees who have a significant influence on current functioning and

development of organisations. Management of talented employees – talents, is
contemporary defined as a paradigm.
In this study, an attempt has been made to present talent management as
a new paradigm in a contemporary organisation. In order to fulfil this aim, the
notions were presented in which the emphasis constitutes the consequence of new
determinants of functioning which shall be regarded in the new paradigm. The
meaning of talent management was also emphasised for strategic success of an
organisation interpreted in the context of satisfying the needs of particular groups
of stakeholders. There were also actions mentioned, which must be undertaken so
as talent management contributes to this success.
The considerations were made on the basis of national and foreign present
literature in the scope of management sciences. There were also used articles and
reports placed on websites of organisations whose area of interest relied on talent
management. The research results constituted significant completion of performed
considerations with a theoretical character.

2.  Traits of the New Paradigm


The notion of the paradigm was introduced to the literature of the subject
and disseminated by T.S. Kuhn. It means „commonly recognised scientific
achievement which, in a certain time period, provides the society of scientists
with model problems and solutions” (Kuhn, 1968). These achievements shall be
original and attractive enough so as to constitute the basis for a new theory.
The paradigm in social sciences, such as i.a. management, has to change.
These sciences regard the behaviours of people and organisations in which they
act. The social area undergoes permanent changes. It means taking the previous
assumptions can be outdated now (Drucker, 1998). So, it is necessary to perform
these changes which are adequate to new conditions, in which organisations
function.
The key aspect of the traditional paradigm of management relies on an
improvement of productivity of an enterprise and management of available
resources in the stable environment. In order to survive and make success in
new conditions, an enterprise has to develop and apply new principles of its
management. Moreover, greater and greater significance is having the view that
“along with the development of an organisation, there is a process of substitution
16 ■ of material aims by the aims that are less quantified or even less identifiable and
reaching the ethical, aesthetic and intellectual infrastructure of an employee, TALENT
MANAGEMENT AS
organisation and its environment” (Jaremczuk, 2012). A NEW PARADIGM
The list of traditional and new management paradigms are presented in Anna Mazurkiewicz
Table 1. 


Traditional paradigm New management paradigm 

Reduction of the direct costs of production as Reducing the indirect costs of the enterprise
the primary focus of management while improving competitiveness
The operations of a company characterized and Flexible and agile operations and continuous
analyzed as stable improvement
Single critical technology-based product lines Multi-core technology product lines with shor-
with long product lifetimes ter product lifetimes Table 1.
Managers regarded as decision-makers and Manager regarded as coaches/facilitators and Traditional and
labour as passive followers of instruction labour knowledge workers/intellectual capital new management
Word markets divided on a national basis, paradigms
Global world markets and greater attention to
with national companies dominant in domestic Source: Jamali
international economic and political structures
market (2005).

The previous considerations constitute the basis for claiming that the new
paradigm requires management concentrated on the psychological aspect – on
engagement of employees, trust, autonomy in action and, concurrently, team
work and cooperation with the environment. In new paradigm power is shared
by empowerment, integrity and individual, and collective identity are important.
Here is learning from failure, exploring, questioning, and creating opportunities.
Qualitative as well as quantitative aspect, spiritual values transcend material
gain are also significant. This paradigm is based on the rational and intuitive
premises.
The answer to contemporary environment is talent management and the factor
which allows gaining permanent competitive advantage in the global, complex
and competitive market – talent (Paradigm Shift…, 2012).

3.  Essence of talent and talent management


The notion of a talent has a long history. It derives from the Latin word talentum,
meaning a silver weighing unit and the Greek word tálanton, which means
scales. This notion was used in ancient times, the common applications were
gained thanks to the stories included in the Bible. Nowadays, the talent means
an unusual, unique creative skills, outstanding talent, inborn talent to something
(Słownik wyrazów…, 2012). A talent is also a human gifted with such talents
(Doroszewski, 1967; Słownik wyrazów..., 1995).
In the literature of management, there is no one commonly assumed definition
of a talent. Regarding the diversity of definitions and interpretations of this ■ 17
TALENT notion by various authors [1] it can be stated that a talent is a person aware
MANAGEMENT AS
A NEW PARADIGM of their possibilities, so the effective persons in their actions – knowing their
Anna Mazurkiewicz
own strengths, efficiently influencing their environment. The person acting to
 perfection, open to new experiences, aware of the amount and complexity of

 knowledge about people, things, surrounding reality and, at the same time, aware
 of their lack of knowledge, accepting themselves and other people (along with all

imperfections of human nature), the person featured with cognitive curiosity. The
talent is independent in actions and formulates opinions (within the boundaries of
organisational, social and legal standards etc.) (Chełpa, 2005).
The talented employee has a high level of competence, particular abilities,
strong motivation, gaining extraordinary results. Current results and potential to
further development as well as, having managerial positions on higher levels,
constitute the most basic criteria, on the basis of which, talents are identified. Such
an interpretation is emphasised by two aspects- current and future ones. The talent
is an employee who has a significant impact on current and future results of an
organisation as well as their development (Berger and Berger, 2004).
The definition of a talent may differ among organisations or change with
time for a given organisation (as a result of which there are mostly changes in the
strategy). Each organisation, in its own scope, should establish, who and how must
be defined as a talent. One, universal definition is not possible to be presented.
Due to the lack of unanimity of defining a talent, in the literature of the subject,
there is no precise definition of talent management [2]. It is interpreted as an
integrated set of processes, programmes and cultural norms within an organisation
designed and implemented in order to gain, develop, distribute and obtain a talent,
so as to obtain strategic aims and satisfy future business needs (Silzer and Dowell,
2010). So, it is indispensible to regard not only simple processes from the area
of human resources management, but also particular actions which are necessary
to gain, distribute, develop and retain talented employees within an organisation.
Talent management shall be strictly connected with other processes within
an organisation, when human resources management is treated as a separate
process, the actions taken are performed independently on other processes.
Talent management constitutes the element of a coherent entirety and as a result,
it contributes to the success of an organisation.
Despite the fact that talent management has constituted the subject of interest
of both the representatives of economic practice and people of science for a long
time (since the notion of The War for Talent) (Michaels et al., 2001), this approach
evolves and contemporarily underlines its strategic character (Collings and Mellahi,
2009; Silzer and Dowell, 2010; Cheese et al., 2008). Such a notion reflects the
shift in the interest from the traditional human resources management into talent

18 ■
management, being the answer to fast changing conditions of the environment and TALENT
MANAGEMENT AS
allowing gaining competitive advantage within new circumstances. A NEW PARADIGM
Talent management is not a new notion, which regards especially the notion Anna Mazurkiewicz
of talent gap. This, what can be regarded as a novelty, is the fact that reducing/ 

removing this gap requires undertaking deep and broad changes, which the 
majority of organisations have not dealt with (Paradigm Shift…, 2012) [3]. 

Talent management also indicates as the greatest challenge in the scope of human
resources management (Strack et al., 2010).
The intensity of the fighting for talents – increase in competition for talented
employees is confirmed by a three times greater number of employers than in
2009 – 62% towards 20% in 2009 [4]. Even three out of ten respondents experience
difficulties in taking positions in 2012, however, the greatest difficulties (52% of
response) emerged in taking managerial and specialist positions (Jacobs, 2013).
Nowadays talent is the most pressing challenge to growth of companies (SHL
Talent Analytics…, 2011). The problem with attracting the right employees
and then retaining them is one of the biggest challenges in many organizations
(Cappelli, 2008).
Towards new needs and challenges, there must be made changes in the manner
of human resources management, including talented employees. However, the
changes undergo the process of talent management themselves (Kinley and Ben-
Hur, 2013; Heinen and O’Neill, 2004).
At the beginning, talent management regarded a certain group of employees-
persons in managerial posts, managing an organisation but the criterion of the
assessment constituted mostly their effectiveness as well as a specific potential for
performed actions, exercised functions. At present, talents are sought at all levels
of an organisation, however, their identification and assessment is connected with
the criterion of effectiveness and potential, regarding mostly capability of further
development as well as exercising managerial functions (which means a broader
interpretation than it used to be).
Talent management, at the beginning of having an interest in this concept,
was under a great influence of the theory of human capital. The notion of talent
management and its influence on efficiency and productivity was also underlined.
Nowadays, its strategic aspect and integration with the strategy of an organisation
is also emphasised. The analysis includes the influence of a talent on financial
results, however, the results in other areas of functioning of an organisation- its
long term success. Not only quantitative but also qualitative aspect of the talent
has been emphasised.
The new approach to talent management represents a balancing of interests of
employees, organization and environment.

■ 19
TALENT 4.  Impact of talent management on the success of an organisation
MANAGEMENT AS
A NEW PARADIGM A talent is not contemporary perceived exclusively as a „soft” skill – talent
Anna Mazurkiewicz
management has a measureable impact on financial results of an enterprise,
 influences other areas of its functioning. To make talent management contribute

 to the success of an organisation, it is essential to have in mind, that it relies
 exclusively on gaining, retaining and developing the persons gaining the best

results and having great potential. It must be adjusted to strategic aims and cultural
organisation and may be integrated at the level of an entire organisation.
New determinants require not only concentrating the attention on the issue of
a talent but also another defining the notion of success. Boudreau defines success
as „meeting the needs of the present without compromising the ability of future
generations to meet their own needs” (Boudreau, 2003). He identifies it with
sustainability, which is a mission statement of many global organisations. It regards
especially the entities functioning in the territory of Europe (due to the assumptions
taken within the framework of EU policy) and is undoubtedly significant in the new
paradigm that is why it has to be part of human resources management.
The notion of sustainable development is connected with financial success,
moreover, it is emphasised and mostly not regarded resources and processes which
create long-lasting advantage and are difficult to be copied by competitors.
Talent management contributes to gaining financial benefits, gaining long-
lasting competitive advantage, goes beyond traditional scopes of organisation’s
success – allows satisfying the needs of particular groups of stakeholders, both
now and in the future.
Regarding the previous and new paradigm as well as the organisation’s
success interpreted in traditional categories – financial results and organisation’s
competitiveness as well as in the aspect of sustainable development, Boudreau
proposes the model being the list of two perspectives – traditional and new one
(see Figure 1).

Traditional: Emerging:
Figure 1.
Financial/Competitive Sustainability
The Talent
Paradigm and the Emerging:
Approach C Approach D
Organizational Prize Talent Management

Source: Boudreau Traditional:


Approach A Approach B
(2003). HR Policies and Practices

Traditional solutions in the scope of human resources management are


concentrated on known and reliable practices, new paradigm concerns talent. The
success of an organisation refers to the notion of sustainable development which
includes the aspect which broader than the classical interpretation concerning
20 ■ financial benefits.
The most traditional is the attitude A. Within its framework, the actions TALENT
MANAGEMENT AS
regarding human resources management are perceived by the financial perspective. A NEW PARADIGM
It is important to connect the actions regarding human resources with financial Anna Mazurkiewicz
results. 

The attitude B regards the organisations which assumed the perspective of 
sustainable development, however, they remained with a traditional paradigm 

of human resources management. These organisations are concentrated on the
fact that providing the actions taken in the area of human resources management
satisfy the criteria of social reliability. Their results are not only perceived in
the context of efficiency but also in the manner in which employees and other
stakeholders are treated. Such an attitude as well as previous ones, concentrates
on traditional human resources management, moreover it relies on social and
working relations.
Less frequently, the attitude C is used, which is practised in organisations
implementing the new paradigm of human resources management. These
organisations verify how a talent influences financial results and competitive
advantage. However, this is an undoubtedly strategic attitude, which does not
regard all essential notions for the purposes which rely on sustainability.
Talent management as a new paradigm and new interpretation of
organisational benefits emphasises the attitude D. It is a new approach regarding
both dimensions, however, basic ones, so as to understand the role of a talent in
shaping a long-lasting success of an organisation. Similarly as in the attitude C, it
identifies how talents of employees and partners in an organisations are connected
with key processes and resources, though, it concentrates on the processes,
resources and talents which support sustainable development.
As resulting from the presented model, the key to achieve long-lasting
success, is establishing the relations between talent management and sustainable
development. Such an attitude brings effective tools for identifying and
developing talents to the greatest extent, influencing the strategic success of an
organisation.
Connecting organisational talent with permanent strategic success refers to
three areas: influence, success and effectiveness (Boudreau and Ramstad, 2006).
In the area of an influence there are relations between the changes in the
quality of a talent and long-lasting strategic success (the answer are sought to
the following questions: Which talent and organisational structures are deciding
for this success?, What is the difference resulting from disposing the best and
average performers in a given role?). The effectiveness relies on identifying the
systems which will be creating quality of talent and shall influence the strategic
success as well as the manner in which they may be implemented. The area of
effectiveness regards defining the resources indispensible to take actions in the
scope of HR functions as well as the effects obtained as a result of investing ■ 21
TALENT financial resources and time in this function (such as: training, consideration,
MANAGEMENT AS
A NEW PARADIGM positions, communication etc.).
Anna Mazurkiewicz
Contemporary organisations act in a global scale more often. They are
 determined by their complexity and formal structures and procedures limiting

 the ability to manage such entities. That is why, managers define aims regarding
 the psychological sphere. This action is particularly essential in case of such an

essential issue as the change of interpretation of an organisation’s success – from
traditional understanding – achieving economic results, on the interpretation in
the context of permanent development. This development requires the change
of organisational culture which is shaped mainly by the level of connecting
individual actions of employees with the targets of permanent development which
make decisions regarding their talent.

5.  Determinants of successful talent management in order to obtain


the success of an organisation
The attitude emphasising combining the organisation’s success – permanent
development with decision regarding the talent of employees is particularly
essential when deep and long-lasting changes in the values and behaviours within
an organisation. The following actions shall be taken so as talent management
contributes to gaining permanent success (Horsfield et al., 2010):
a) Segment talent pools of an organization and invest differently in each
segment. Segmentation should be based not only on performance, but
it is necessary to consider other factors, such as scarcity of skills in the
marketplace, potential of employees, and their expectations [5];
b) Measure outcomes in talent management, because that affect business
success. The most important is to set the right goals for the organization
and to make sure individual goals align with company goals. Employees
need to see how their individual efforts directly affect business results;
c) Collect talent data and create talent profiles that can determine the right
people for the organization. Talent Management should be process with
a lot of data statistical analysis, and even simulation and optimization, not
based on an intuitive approach;
d) Build adaptable leadership skills, not generic, which have a more direct
effect on business results. This skills go beyond a person’s current
position, and are: strategic thinking and planning, crisis management,
judgment and decision making, tolerance of ambiguity, and agility to
effect rapid change. This focus on adaptable skills requires rethinking the
definition of success for organization;
e) Measure impact instead of goals. Effective talent management requires
performance management. There is a connection between individual
22 ■ performance and better organization results. Performance management
enables also communicate employees objectives and clarify an employee’s TALENT
MANAGEMENT AS
role, while focusing employee development on competencies that A NEW PARADIGM
determine the organization’s success. By linking rewards to individual Anna Mazurkiewicz
performance, effective performance management allows employers to 

realize the practices „pay for performance”[6]. 
The most effective talent-management practices are firm-specific (Heinen 

and O’Neill, 2004). The practices that work for one organization may not create
sustainability in another. To be successful, the talent strategy must be aligned with
an organization’s business strategy. Consequences of aligning Talent Management
practices with the business strategy are (Heinen and O’Neill, 2004):
• right workforce skills and behaviours in place to implement and sustain
business strategy,
• individual and team performance expectations aligned with organizational
values and priorities,
• business success and diverse workforce supported by functional career-
path architecture,
• integrated pay, performance, career-development programs that improve
on retention challenge and garner commitment,
• talent-management programs that work in unison to drive company
results.
Adjusting talent management to the strategy provides that an organisation
gains, retains and develops employees in the manner in which it contributes to
its success (Horsfield et al., 2010). The companies effective manage their talent
deliver better results for shareholders (Huselid, 1995). The benefits of talent
management are also demonstrated at the individual level (Heinen and O’Neill,
2004; Axelrod et al., 2001).
However, despite the awareness of talent significance and knowledge of
results of empirical research, which is confirmed in practice, organisations,
in many cases do not identify talent or insufficiently invest in a talent which
is indispensible so as they could develop. Moreover, in many cases, these
actions are not taken systematically – they have a temporary character and
are implemented in case of recognising a need. In many organisations, talent
management is not implemented (this process does not have a permanent
character) (Paradigm Shift…, 2012).
It may be assumed that this attitude results from the fact that the managers
concentrate on the actions providing benefits in a short time, when talent
management is connected with actions of a strategic character and regards many
areas in an organisation.
There are also numerous obstacles reducing the efficiency of the talent
management process. The basic barriers may include: lack of transparency of the
programmes concerning talent management (Blass et al., 2006), lack of engagement ■ 23
TALENT of both managers of higher level, as well as line managers (Guthridge et al., 2008),
MANAGEMENT AS
A NEW PARADIGM diversity of values, ambitions and expectations of employees (assuming as the
Anna Mazurkiewicz
basic, however not exclusive criteria of the division age and cultural environment)
 (Bremen and Sejen, 2012), incompliance between perceiving by employers, what is

 expected by talented employees and this what is really attractive to them (Bremen
 and Sejen, 2012), lack of understanding the needs of subordinates by managers

(Branham, 2005), as well as greater attractiveness of the offers of other enterprises,
long decision making processes, slight international character of an organisation,
negative image of an organisation, unfavourable organisational climate and
unfavourable economic situation of the enterprise (Thom et al., 2003).
In the context of the presented determinants, it shall be stated that the lack
of talent management or its ineffective development and implementation in an
organisation shall constitute a significant obstacle to achieve long-term success.

6. Conclusion
The conditions of functioning of contemporary organisations undergo constant,
unpredictable and more surprising changes, which has a significant influence
on the success of these organisations. It requires the change of priorities in
management, which causes that there are new paradigms. In management sciences
one of them is talent management. Talentship is both in managerial positions and
executive positions, it is indispensible to gain strategic success.
The consequence of this new paradigm is emphasising the identification of
key resources of talent i.e. these for which the difference in quality and availability
of talent significantly influences the processes or resources in the greatest
level influencing a strategic success – sustainability. An important element
of this success are economic benefits, however, it exceeds beyond a traditional
interpretation and concerns a wider aspect than a financial result only.
The traditional paradigm emphasises the principles, practices and actions
regarding the functions of HR. It is precious and needed, it contributes to
shaping positive social relations in a workplace. Despite that, there are significant
connections between a talent and sustainable development which require a new
attitude – other paradigm in order to combine talent with strategic success. The
benefit of this attitude – regarding a new paradigm and permanent development
– common area of interests for the groups of stakeholders, common perspectives.

Notes
[1]  Vast list of definitions and interpretation of the notion of a talent includes Ingram, 2011.
[2]  This notion is applied as a new definition for human resources management, which indicates
that it considers all processes traditionally connected with human resources: planning, recruitment,
selection, development, retention etc. In this approach, it is applied in organizations which assume
that each employee is a talent. It is also referred to a certain group of employees, perceived as
24 ■ having outstanding skills and abilities. This approach is, however, too narrow – it does not regard all
processes concerning talent management, moreover, it excludes from these processes a vast amount TALENT
MANAGEMENT AS
of the employed- talents are identified at all levels of an organisation. A NEW PARADIGM
[3]  Of the 38 618 employers across 42 countries who participated in the 2013 ManpowerGroup
Talent Shortage Survey (2013 Talent Shortage Survey…, (http)), 35% reported difficulty filling Anna Mazurkiewicz

positions due to lack of available talent. The main factors contributing to the talent shortages are 
lack of specific technical competencies (or hard skills) required for a particular role and lack of 
applicants. Talent shortages negative impact an organization – reduce ability to adequately serve 
clients, and also reduce competitiveness and productivity in general. Talent shortages lead to 
increased staff turnover, reduced creativity and innovation, increased compensation costs and also
have a detrimental effect on employee engagement/morale.
[4]  According to the CIPD’s annual resourcing report, the CIPD/Hays Resourcing and Talent Plan-
ning Survey 2013.
[5]  There is no one way for how organizations should segment their talent. L. Uren identifies six
groups of talent including their expectations towards organization: Brand enthusiasts, Career Lad-
derists, Connectors, The Nurtured, Opportunity Seekers, Planners (Uren, 2011). Hudson segments
talent in three groups: High Potentials, High Performers, Irreplaceable Professionals (Tackling the
Economic Crisis…, (http)).
[6]  Performance management is core talent management priority (Talent Edge 2020…, 2012).

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