EFFECT OF TALENT MANAGEMENT ON ORGANISATIONAL PERFORMANCE (A CASE STUDY OF NESTLE NIGERIA LIMITED)

 Talent management practice within an organization is a human Resources strategy that seeks to identify, develop, deploy and retain talented and high potential employees. Therefore the top management should realize the importance of talent management for the sake of the organization’s performance. This study was set to examine the effect of talent management on organization performance using Nestle Nigeria Limited as a case. Those included in the study were Managers/Heads of departments, General staff (finance, accounting, and marketing) and lower staff (firm workers and groundsmen) of Nestle Nigeria Limited that was randomly selected. The objective of the study was to investigate whether organizations performance at Nestle Nigeria Limited is influenced by targeted talent management. The target population was 419 comprising of 44 Managers/Heads of departments, 165 General (finance, accounting, marketing) and 210 lower staff (firm workers and groundsmen) of Nestle Nigeria Limited. To ensure all categories of employees were represented in the sampling process stratified random sampling technique was used to sample the survey respondents from the target population. The employees were categorised into three strata of top-level management, General level employees and lower-level employees. This study adopted a descriptive research design. The study collected qualitative data using questionnaires and qualitative data using an interview guide. The quantitative data were analyzed using descriptive statistics generated from Statistical Software for Social Sciences (SPSS) and the qualitative data were analyzed using content analysis.

The study found out that the respondent’s opinion on talent management is that within an organization it is an international human resources strategy that seeks to identify, develop, deploy and retain talented and high potential employees. The reason for employing talent management at Nestle Nigeria Limited is because the organization leaders understand that having the right people in the right place at the right time to maximize business opportunities has become the most important factor in ensuring ongoing organizational success. The study findings went on to reveal that talent management improved employee attitude and behaviour towards work. The study further revealed that the organization makes executives the primary talent managers. The study revealed that career development is a better predictor of Nestle Nigeria Limited‟s performance, followed by targeted talent management, making executives the primary talent managers and Building a sustainable employer brand. The study recommends the development of a talent culture so that talent conversations become acceptable throughout the organization and individuals are encouraged to expand their networks. The study also recommends that Nestle Nigeria Limited offers differentiated and tailored development routes that can meet individual needs and strengths to help improve the engagement of those identified as talented and avoid perceptions of under-utilisation. To develop rewards and compensation structures that will be geared towards incentivizing line managers to spot and develop talented employees. The study further recommends accounting measures be appropriate, measurable and economical. These measures are best considered when the system is being designed so that the evaluation process is designed into the system itself. Finally, the study recommends that the talent management system be integrated across all aspects of human resource management.

CHAPTER ONE

INTRODUCTION

1.1   Background of the study

The ultimate goal of every business organization is to increase the sale of goods and services that it deals in and to increase profit in order to achieve its laid down goals and objectives.

These can be achieved if organizations employ the right skilled labour on the right job at the right time by managing their talent  (Cappelli, 2009) As noted in (Douglas & Jay 2007) most organizations don’t have the required talent to develop lucrative business opportunities and so they lose out.

Organizations must ensure that employees of choice are endowed with the skills required for the job; this will help the organization perform effectively and efficiently. Talent management is the capability to create and continuously optimize the talent resources needed to execute a business strategy (Talent Management Research, 2009).

Talent Management when implemented effectively result in great changes in the performance and productivity of the organization

(Capelli, 2008), Talent management is simply a matter of anticipating the need for human capital and then set out a plan to meet it. (Capelli, 2008); Talent Management concerns the additional management processes that are made available to employees in the organization who are considered to be ‘‘talented’’. This means systematically attracting, identifying, developing, engaging, retaining, and deploying those individuals with high potentials who are of a particular value to the organization (Blass, 2007)

Talent Management is the main duty of the Human Resource Manager but over the years senior and line managers now engaged in managing talent.

As noted by (Gunter, 2011) successful companies know that talent management needs broad ownership.

The talent Management processes include recruiting, succession planning, leadership development and retention of key employees. The importance of talent management has been increasing rapidly over the few past years.

The roles of talent management on organizational performance are:

1. Organizations achieve their goals
2. The organization will meet business demands;
3. Organization have a reliable workforce
4. Organizational performance increases.

Talent Management can be effective globally using six principles as noted in (Gunter, 2011). These six principles make talent management effective both locally and globally. They include:

(1)Alignment with strategy (2) internal consistency (3) cultural embeddedness  (4) Management involvement (5) balance global and local needs (6) employer branding through differentiation.

Conclusively, Talent Management has been seen as a tool that organizations use in developing talent. If an organization effectively implements a talent management process, it will not only develop talents but it will also increase the performance of the organization, invariably leading to the achievement of the stated objective.

1.2   Statement of Problems

More sophisticated procurement strategies and technology productivity strategies are changing the way services are won and delivered within any specific market. The ability of an organization to adapt and manage quality talent to meet client needs is necessary in order to remain competitive over the next decade (Khudnick, & Charles, 2013)

Large companies still find it difficult to achieve manpower planning and succession management. Although management recognizes that talent is crucial to the success of the organization, adequate measures to protect and nurture it are yet to be formulated. Other human resources initiatives such as talent audit schemes, competency analysis, team building activities has to be implemented or achieved in so doing the organizational performance increases.  This development has to a large extent retarded the growth and development of the organization concerned.

1.3 Main Objective

 The main objective was to examine the effect of talent management on organizations performance at Nestle Nigeria Limited, Abuja.

1. To assess the effect of targeted talent management on organizations performance at Nestle Nigeria Limited.
2. To examine how career development influences organizations performance at Nestle Nigeria Limited.
3. To investigate how building a Sustainable Employer Brand influences organizations performance at Nestle Nigeria Limited.
4. To determine the effect of making executives the primary talent managers on organizations performance at Nestle Nigeria Limited.

1.4 Research Questions

 What are the effects of targeted talent management on organizations performance at Nestle Nigeria Limited?

1. How does career development influence organizations performance at Nestle Nigeria Limited?
2. How does building a Sustainable Employer Brand influence organizations performance at Nestle Nigeria Limited?
3. What are the effects of making executives the primary talent managers on organizations performance at Nestle Nigeria Limited?

1.5   Research Hypotheses

Ho There is no significant relationship between talent management and organizational performance.

H₁ There is a significant relationship between talent management and organizational performance.

H₀There is no significant relationship between talent management and profitability.

H₁ There is a significant relationship between talent management and profitability.

H₀There is no significant relationship between talent management and performance management.

H₁ There is a significant relationship between talent management and performance management.

1.6   Scope and limitations of the Study:

This research study spans the activity of organizations in managing and developing talents. This study specifically examines the management and development of talents in Nestle Nigeria Plc. and also the effect of this development on its employee performance. The limitations of this research study is targeted towards identifying those employee needs such as a stable reward system, training and development, manpower planning, adequate employee welfare of Nestle Nigeria Plc.

 1.7   Significant of the Study:

This study examined and highlighted the effect of talent management on organizational performance. Other useful areas of the study are;

Talent management is a tool to develop talent and increase organizational performance.

Talent management helps the organization achieve their goals, if organizations develop and manage their talent, they will be able to retain and engage a sold workforce that will be able to achieve help the organization in achieving its goals and objectives.

Talent management helps employees develop their talent and this increase their performance in the place of work. Talent management also develops skills knowledge talent management also increases adaptability learning, flexibility, innovation and performance all these will aid increase in productivity.

Talent management as a tool in every organization helps to increase the performance, the productivity of organizations, helps also to achieve their aims and objectives and as such influences the nation at large.

Talent management helps nations to be economically balanced and fit because through talent management countries develop their workforce in so doing having a generation of the capable and eligible workforce. Government should also provide training facilities to develop talents.

1.8   Definition of terms

1. Talent Management

This means systematically attracting identifying, developing, engaging, retaining and deploying those individuals with high potential who are of particular value to the organization [Blass 2007]

2. Talent Segmentation

Talent can be segmented either from an exclusive perspective (focusing practices on a specific group in the organization, such as high potentials, in the sense of an elite sub-group of future leaders) or an inclusive perspective [recognizing and focusing practices on the talent of all employees in the organization] [CIPD 2006] .

3. Talent Strategy

Articulating strategic goals and defining talent needs [multi-polar world impacts workforce strategy, segmentation]

4. Talent Resourcing

Discovering and deploying talent [sourcing, recruiting and workforce planning]

5. Performance and Rewards

Measuring and managing performance, aligning rewards with results [objectives, assessments, incentives recognition] .

6. Learning and Collaboration

Defining new ways of working and learning in a technology-savvy, geographically dispersed, ever-changing world turn over intention

7. Turnover Intention

Employees experience turnover intentions when they consciously and deliberately want to leave the organization [Tett&Meyer 1993] .

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