This study provides an investigation on Talent Management in German mid-sized enterprises. The purpose of this research is to explore whether Talent Management is an instrument usable to overcome external challenges, such as demographic changes as well as a shortage in skilled labour, to enhance organisational performance and to remain competitive. The research determines that, Talent Management can be seen as a part of strategic Human Resources Management and in this context, as a high performance working system in order to develop, motivate and empower talented employees.
Since empirical data in the national context of Germany are restricted on the one hand and, on the other hand, research efforts regarding Talent Management in small and medium-sized enterprises are of less significance, qualitative research methods were used in order to gather deeper insights. Three in-depth expert interviews were conducted, providing valuable information regarding the conceptualisation and operationalisation of Talent Management in the context of German mid-sized enterprises.
The findings reveal that, what is of strong importance within small and medium sized enterprises in general is the expansion of the term talent to all employees and their skills and abilities instead of seeking for high potentials and so-called A-players. Furthermore, three significant characteristics of German companies; being long-term and developmentally orientated, as well as providing dual vocational training to potential future employees, have been identified. These qualities underlie the highly specialised industries in which German medium sized enterprises operate, skilled labour and development of these is of high importance.
Overall, the dissertation concludes that Talent Management is recognised and implemented as an instrument of strategic human resources management within German medium sized enterprises. Special focus is put on investment in the Human Capital as the development and retention of potential is of strong importance. However, due to limited financial budgets and less recognition of line managers, Talent Management stands in its infancy.
The research recommends further studies in order to investigate the findings and limitations of this dissertation, such as the empirically undetected field of Talent Management as a high performing system in national context or within small-and medium sized enterprises.
Table of Contents
Chapter 1: Introduction to the dissertation
1.0 Introduction
1.1 Motivation
1.2 Research rationale
1.3 Research aim and objectives
1.4 Structure of the dissertation
Chapter 2: Literature Review
2.0 Introduction
2.1 Talent Management
2.1.1 What is a ‘talent’?
2.1.2 Definition of Talent Management
2.1.2.1 Definition of TM for the Purpose of this Dissertation
2.1.2.2 Approaches of TM
2.1.2.3 TM in Practice
2.2 Strategic Human Resources Management
2.2.1 SHRM and Organisational Performance
2.2.2. HPWS and TM
2.3 Medium-Sized Enterprises
2.3.1 Definition of MSE in Germany
2.3.2 Considerations of the German Business System
2.3.3 Impact on SHRM
2.4 Gaps in Literature
Chapter 3: Conceptual Framework
3.0 Introduction
3.1 The HCT and TM
3.2 TM as a HPWS
3.3 Summary
Chapter 4: Methodology
4.0 Introduction
4.1 Research Philosophy
4.2 Research Methods
4.2.1 Literature Review
4.2.2 Interviews
4.2.2.1 The Questionnaires
4.2.2.2 Analysis of the Interviews
4.2.3 Reliability and Validity
4.2.4 Potential Problems / Limitations
4.2.5 Ethical Considerations
4.3 Summary
Chapter 5: Findings
5.0 Introduction
5.1 Definition and Understanding of talent and TM
5.2 Implementation of TM and important Considerations
5.3 The process of TM within MSE
5.4 The contribution of TM
5.5 Summary
Chapter 6: Analysis and Discussion
6.0 Introduction
6.1 Talent, TM and the Implementation of the process
6.2 Factors affecting the Operationalisation of TM
6.3 Summary
Chapter 7: Conclusion and Recommendations
7.0 Introduction
7.1 Review of the Research Objectives
7.2 Evaluation of Methods
7.3 Recommendations
Chapter 8: Reflection
Objectives and Research Themes
The research explores whether Talent Management (TM) can serve as a strategic instrument within German mid-sized enterprises (MSE) to address challenges such as demographic change and skilled labour shortages, ultimately enhancing organizational performance and competitiveness.
- Strategic integration of Talent Management within Human Resources Management.
- Developmental and retention-oriented approaches in the context of the German "Mittelstand".
- The application of High Performing Working Systems (HPWS) as a foundation for talent development.
- Conceptualization and operationalization of talent management in specialized medium-sized industries.
- Empirical analysis of expert perspectives on talent and TM in German enterprises.
Excerpt from the Book
2.1.2.2 Approaches of TM
Two different approaches to define TM more precisely have been evolved: an exclusive and inclusive one. A distinction is made by using a different perspective of how talent is defined and by type and size of the organisation (Collings and Mellahi, 2009; Stahl et al., 2012; Festing et al., 2013).
Exclusive approach
The exclusive approach regards talents as high-performers, high potentials or as so-called A-Players (Michaels et al., 2001; Huselid et al., 2005; Collings and Mellahi, 2009; Mäkelä, 2010). This definition is often used in context with MNC seeking talented and high performing employees for their middle and upper management (Guthridge et al., 2008). As figured out by Boudreau and Ramstadt (2005, p.130-133), talented and highly developed employees usually lead to a higher return on investment in terms of efficiency and profitability. Furthermore, it is often assumed that especially academic highly skilled employees are demanded, having both practical experience and highly analytical abilities to fulfil a company’s requirements (Festing et al., 2013). According to Gallardo-Gallardo (2012), in this view TM equals management development. Thunnissen et al. (2013) criticises that this view overemphasises the individual performance. According to Pfeffer (2001), this approach diminishes teamwork as only individuals will be supported who fall under the category of being talented for the purpose of the organisation.
Inclusive approach
The inclusive approach concentrates on organisations where TM is seen in a more general, universal and inclusive way (Festing et al, 2013). While the exclusive definition considers only high performers, this approach can be used in a wider context, taking all employees within a company into account (Lewis and Heckman, 2006; Schuler et al., 2011; Festing et al., 2013). The inclusive approach was developed by arguing that some individuals will be excluded within the seeking and developing process of talented employees (Colquitt et al., 2006). Furthermore, engaging all employees adds the possibility to discover potential within a company and to develop talented employees rather than to “buy” them externally (Cappelli, 2008). As Festing et al. (2013) argue, especially within smaller companies an inclusive approach of TM is useful since all employees will be taken into account irrespective of their current role and education. As long as they are fulfilling specific requirements (skilled labour)
Summary of Chapters
Chapter 1: Introduction to the dissertation: Outlines the research rationale, objectives, and personal motivation for investigating Talent Management in German mid-sized enterprises.
Chapter 2: Literature Review: Provides a critical assessment of existing theories regarding talent, Talent Management, Strategic HRM, and the characteristics of the German business system.
Chapter 3: Conceptual Framework: Describes the theoretical foundation of the study, specifically Human Capital Theory and High Performing Working Systems.
Chapter 4: Methodology: Details the research philosophy of interpretivism and the qualitative method of in-depth expert interviews used to collect primary data.
Chapter 5: Findings: Presents the qualitative data gathered from three HR professionals regarding their definition, implementation, and application of TM processes.
Chapter 6: Analysis and Discussion: Critically evaluates the research findings by comparing interview data with literature to identify operational factors affecting TM in MSE.
Chapter 7: Conclusion and Recommendations: Synthesizes the final research outcomes, evaluates the chosen methodology, and proposes areas for future study.
Chapter 8: Reflection: A reflective summary of the author's personal development in research skills and time management throughout the dissertation process.
Keywords
Talent Management, Strategic Human Resources Management, German Mid-sized Enterprises, Mittelstand, High Performing Working Systems, Human Capital Theory, Qualitative Research, Expert Interviews, Skill Shortage, Organizational Performance, Development, Retention, Employer Branding, Strategic Planning, Talent Pool.
Frequently Asked Questions
What is the core focus of this research?
The dissertation investigates how Talent Management (TM) is utilized as a strategic instrument within German mid-sized enterprises (MSE) to improve organizational performance.
What are the primary thematic areas?
The central themes include the strategic integration of HR practices, the role of Human Capital Theory, the specific requirements of the German "Mittelstand," and the application of High Performing Working Systems.
What is the main research aim?
The goal is to explore if TM can be used effectively as a strategic practice in German MSE to overcome external challenges like demographic shifts and skilled labour shortages.
Which scientific methods are applied?
The research employs a qualitative approach, combining a critical literature review with in-depth semi-structured expert interviews of HR professionals.
What is addressed in the main part of the work?
The main sections cover literature definitions, the conceptual framework of HCT and HPWS, the research methodology, findings from expert interviews, and a critical analysis/discussion of these results.
Which keywords characterize the work?
Key terms include Talent Management, Strategic HRM, MSE, Mittelstand, High Performing Working Systems, and Human Capital.
How does the German "Mittelstand" influence Talent Management practices?
The German business system emphasizes long-termism and dual vocational training, which requires MSE to adopt an inclusive approach to talent rather than focusing solely on elite "A-players."
Why is the "Black Box" phenomenon relevant here?
It refers to the inconsistency in explaining the causal link between specific HR practices and organizational performance, a challenge faced when validating the contribution of TM.
How do MSE differ from multinationals in their TM approach?
Unlike multinationals that often focus on leadership talent, German MSE typically operate in specialized industries where they must focus on broad skill development and employee retention due to limited budgets.
What is the status of Talent Management in German mid-sized companies?
The study concludes that while TM is recognized as important, its formal implementation is still in its infancy due to financial constraints and a lack of unified conceptual models.
- Quote paper
- Ann-Christine Ehret (Author), 2014, Talent Management: An Instrument of Strategic Human Resources Management?, Munich, GRIN Verlag, https://www.grin.com/document/310604
