Background Study of Talent Management

1.1 Background Study of the Research
The main objective of conducting this study is to have a explore and gain in-depth knowledge of talent
management and what it involves.
Having a good knowledge in talent management skills will help me to provide a better service for a
business in the long run thereby it will help me in achieving my future plans.
1.2 Introduction to the Organization
Merrill J. Fernando devoted his life to tea in the 1950s when he saw the ownership of the tea industry
concentrated in the hands of several large corporations. This led to the commercialization of tea. He
decided to fight this commercialization process for the benefit of tea drinkers around the world and the
crops his country produced with great care and artistry.
He took nearly 40 years and launched his own brand, Dilmah, in 1988. The Dilmaty Company was the
first producer-owned tea brand to offer "selected, finished and packed" teas of origin. Unlike the multi-
origin blends that dominated the shelves of supermarkets, Dilma brought freshly stuffed tea with sauce,
making it one of the best teas in the world with its rich flavor and natural flavor.
Dilma is unique. A brand founded on a passionate commitment to tea quality and reliability, it is also
part of a trans-commercial philosophy of seeing business as a matter of human service. This is why Dilma
is the first ethically produced tea. In 2005, Merrill and his sons Dilhan and Malik promised to follow the
principles set by Dilma's 12 principles in all aspects of business and in the actions of workers, staff and
management.
1.3 Scope of the Research
Scope of this research includes the process for attracting, recruiting, developing, motivating and
retaining talented employees and this aims to improve performance through practices that increase
employee productivity.
1.4 Research Objectives
 To study the effect of Talent Management Practices on Organizational Performance.
 To highlight suggestions for enhancing the level of Talent Management of the organization
based on the data collected
 To study the role of Talent Management practices in driving organizational performance.
1.5 Research Questions
1.6 Costs, Access and Ethical Issues P3

Chapter 02- Literature Review
2.1 Review on Previously Conducted Studies
Many researchers have given different interpretations of the term skill from different perspectives. The
adopted definition depends on the strategy used by the company, the nature of the organization, the
environment in which the company competes and other factors (CIPD, 2007). As Tansey (2011) writes in
his article, not every language has a universal definition of "skill". The meaning of talents depends on the
language shared in the organization. Most companies do not know what talents are and let them manage
them (The Economist, 2006). For example, Morton (2004) believed that skills are people who can make a
big difference in a company's performance. Goffy & Jones (2007) supported Morton's definition of talent
as a handful of employees' knowledge, skills, and vision, and the ability to create extraordinary value to
an organization from existing resources. Paris (2011) described talent as something innate. It is a strength
in itself and does not require the appreciation of others. A skills organization is unique in that it is highly
influenced by factors such as industry, its nature, individual and team level implications and is subject to
change over time (Chartered Personnel and Development Institute (CIPD), 2007). Gordon Ramsey
defines holding skills as the inspiration for chefs (CIPD, 2007). McKinsey defined talent as "the best and
brightest" (McKinsey Quarter 2, 2004). Ready & Conger (2007) defined talent as the best people in an
organization with general knowledge and skills, ready to be promoted to executive positions. Smart
(2005) described talent as "the best 10% talented, best class players at all levels of pay." CIPD provides a
useful definition of talented individuals: Talented individuals are those who have the potential to make
the biggest difference in an organization by demonstrating their innate capabilities in the organization's
present and future performance (CIPD, 2007). From these definitions of skills, it can be concluded that
the best people for a job in a talent organization are those who contribute to the achievement of its
strategic goals.
Odierno (2015) states that talent management offers real and tangible benefits of reducing recruitment
costs, effective knowledge transfer, realization of business strategy, delivery of cutting-edge services and
products and the creation of a competitive advantage, in spite of the many challenges that organizations
face in order to be sustainable. Ashton and Morton (2005) argue that good talent management is of
strategic importance and can differentiate an organization when it becomes a core competence, and its
talent significantly improves strategic execution and operational excellence.
Prinsloo (2012), in her study of talent management and the psychological contract, provides evidence that
management can use talent management practices to strengthen the psychological contract, leading to
lower turnover, improved motivation productivity and loyalty. Bersin (2006) asserts that entry into the
new era of talent management was because of more challenging people-related issues requiring tighter

integration between human resource silos and the business. As an organization strives to meet business
goals, it must ensure that it has continuous and integrated processes for recruiting, training, managing,
supporting and remunerating these people, and thus the need for talent management
According to a research conducted by Lawler(2008), he says that Talent management can provide
competitive advantage to organizations, organization’s talent injects capabilities that are very difficult
for competitors to benchmark and replicate. More than any other asset, talent provides the potential for
long-term competitive advantage.
Stephenson & Pandit (2008) and several other researchers have suggested that the right people at the right
time with the right skills and the right level of motivation are essential for skill management. Others
believe that skills management fully embraces the activities of an organization, while attracting,
developing, selecting and retaining the best workforce in the right place (Stahl et al., 2007). CIPD defines
skills management as the organizational attraction, deployment, development and retention of high
potential employees that are considered a definite value of the organization (CIPD, 2009).
2.2 Conceptual Framework and the Explanation of the Variables