Addressing Strategic Challenges in Talent Management

Changes in HR practices and policies are necessary for an organization to manage competitiveness. These changes require talent management teams to build new strategies to deal with the changing environment. The organization faces strategic challenges such as relocation, forecasting, staffing, training, and employee performance evaluation. To tackle these challenges, organizations should develop sound talent management strategies that align with their business goals. Effective planning is crucial in developing strategies that consider location management, language barriers, cultural differences, and others.}

strategic human resource management
[Document subtitle]

Table of Contents
Introduction......................................................................................................................................1
Importance of Strategic Talent Management at the Current Global Trend.....................................2
Talent Management Theories..........................................................................................................3
Effective Talent Management Practices..........................................................................................4
Strategic Challenge Faced with a Talent Management Approach...................................................6
Changes in HR practices and Policies.............................................................................................7
Strategic Challenges due to relocation and location management...............................................7
Forecasting and planning.............................................................................................................7
Staffing.........................................................................................................................................8
Training and developing..............................................................................................................8
Evaluation of employees performance.........................................................................................8
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
Appendices....................................................................................................................................13
1

Introduction
Strategic human resource management is considered an important process of connecting the
functions of human resources with the strategic objectives of the organizations. This will be done
to improve the significant performance of the organization as well as human resources. In
strategic human resource management, strategic talent management plays an important role in
making it successful in its objectives. In this paper, we will discuss the strategic talent
management under the presence of different theoretical approaches. This will enhance our
significant knowledge about aspects of talent management and its practices necessary to follow
for gaining competitive advantage in the potential market. Strategic talent management is an
important and significant processes that contain the systematic identification of key positions
which differentially contribute to the sustainable competitive advantage of organizations,
development of human resource architecture to facilitate filling available positions, and
development of a talent pool with high skilled individual incumbents to fill these roles (Al Ariss,
2014). Strategic talent management approach ensures that an organization has the quality and
quantity of people in place to fulfill their future and current priorities. On the other hand, it is a
combination of different key components such as a clear understanding of the future and current
strategies of the organization, and the gap between the talent in place and the talent required to
drive business success. Thus, it can be said that talent management not only helpful in gaining a
competitive advantage but also helpful in managing the capabilities of organizations.
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Importance of Strategic Talent Management at the Current Global
Trend
Generally, it can be said that strategic talent management has more importance than innovation
and leadership in organizations. A large number of analysts agree with the statement that
leadership and innovation have great importance than talent or capability management. But, it is
not true. In today global scenario talent management is vitally important than innovation and
leadership. They all prove meaningless if talent management is not present in a particular
business organization. It proves a real jewel in the crown of different organizations. In today
scenario effective quality and culture are most important (Alamri, 2015). In the absence of talent
management, both cannot provide to customers and employees. Apart of this, talent management
has following importance in today global trend:
 Gaining competitive advantages: Talent management practices mainly focuses on the
talent of organizations; the most experienced and skilled individuals. Developing,
attracting, and retaining talent is fundamental to every organization for remaining ahead
of its competition. Thus, it can be said that talent management is required for gaining
competitive advantages over competitors.
 Attracting talented employees: One of the main reason behind the popularity of talent
management is the demographical trend happening in the developed countries. Talent
management in those countries is required to removing the shortage of talents in the near
future. As per the report of World Economic Forum, by 2030 the United States required
25 million more skilled workers to sustain economic growth, and Europe will require
more than 24 million employees for maintaining economic growth (Farndale, 2014).
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In reality, with talent management concept the organizations also need to adopt adequate
acquisition strategy. If the organizations are able to attract good talent with talent management
strategy, they can also be able to retain them for a long time by acquisition strategy. Thus, it can
be said that strategic human resource management and talent management is an important
function for a startup as well as large business organizations.
Talent Management Theories
Talent management can utilize in a large number of ways. Most often, it is utilized as a mean to
highlight the strategic importance of an HR specialty (development, recruitment, and selection)
without addition to the practice and theory of that specialty (Meyers, 2014). Generally, talent
management is a combination of a large number of undermined models or theories. These
theories are known as talent management myths. These myths and theories are following:
Theory X
Theory X is a combination of such employees who hate work and if they can slack off, they will.
This arises from conservative and Western philosophy which views humans as fundamentally
flawed.
Theory Y
This theory of talent management descends from Maslow, and now it is represented by the
strengths movement. This theory combines such person who loves work, self-actualize and likes
to work on building their strengths and grasp future growth opportunity (Shields, 2015). This
theory of talent management sticks its head in the sand and concludes that alignment can be done
in every possible situation. On the other hand, theory y is considered as a reflection of thinking-
wishful Boomer ideology than reality.
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Theory Z
Theory Z of talent management attempted to capture the differentiation elements of Japanese
lifetime employment theories with respect to theory Y and X. It mainly operates on the idea that
organizations can utilize their vast resources to satisfy individual non-work aspirations to stem
attrition.
The Only-the-Best Theory
This theory of talent management depicts that bad person working with a good process and good
people working with a bad process every time. According to this theory, the management of the
organization tries to hire those people who are smarter than themselves (Skuza, 2013). By
following this philosophy, management of organizations can easily enhance their reputation and
gain competitive advantage.
Thus, it can be said that talent management theories have been driven by the assumption that
enhancing the talents of employees is a source of sustained competitive advantage. On the other
hand, it can be said that talent management becoming extensively linked to practices of human
resource management in the hope of enhancing business performance.
Effective Talent Management Practices
After analyzing the case "Creating a talent management strategy to drive engagement in China,"
it can be said that the pharmaceutical organization in the case faces a lot of challenges in
formulating effective talent strategy (Festing, 2015). These challenges by the organization can
only remove by following effective talent management practices. On the basis of the current
situation of the organization in case the following talent management practices are suggested to
it:
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Align Organizational and individual objectives and effectively track their performance
Pharmaceutical organization in the case faced a big challenge in the alignment of talent
management practices with the future business goals. This challenge can successfully resolve by
following alignment strategy of talent management. Aligning goals is an effective talent
management practice. With the help of this TM practice, the organization can effectively
communicate changes that influence organizational objectives to everyone who has a linked
individual objective. On the other hand, this TM practice also helps the management in tracking
the employee's performance on a regular basis. This maintains high flexibility and visibility in
organization environment and progress.
Invest in Performance-based development
The pharmaceutical organization is also suffering from the challenge of developing talent and
establish diverse and strong bench strength. This problem can successfully resolve by investing
some part of its profit in performance-based development (Stahl, 2016). By offering a successful
training program, it can successfully improve the knowledge and skills of its employees. By
doing this, it can significantly develop talent which can utilize to gain future opportunities in an
effective manner.
Have a succession Plan
This talent management practice depicts that the organization should have a succession plan in
advance. By creating a succession plan, it can prepare itself for unforeseen activities. Moreover,
by adopting this practice, the organization can significantly gain commitment and leadership
engagement.
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Thus, it can be said that above-mentioned talent management practices not only resolve its
business problem but also helpful in developing high skill employees.
Strategic Challenge Faced with a Talent Management Approach
Generally, the management of an organization suffering from huge challenges while managing
talent. This will not only influence the strategic capabilities of the organization but also affects
their competitive advantage. Some of them are following:
 Shortages of manpower: It is a most important challenge which is facing an organization
nowadays. Shortages of manpower limited the talent management strategies of
organization (Festing, 2014). On the other hand, in such type of condition an organization
not able to find skilled employees in large quantity. Due to this, the whole working of the
organization influences badly and affect the productivity of organization in a negative
manner.
 Attracting and retaining employees to fulfill the requirements of inorganic and organic
growth: Another significant challenge arise during talent management is attracting and
retaining employees. A lot of organization facing talent crunch due to many problems.
So, nowadays it becomes the most important challenge to attract and retain employees
(Dries, 2013).
 Creating and developing a robust leadership pipeline: It is considered the biggest threat to
the growing organizations. The management of the organization needs to select the best
leader from the among available talent pool. This creates a big issue for the management.
Every single mistake brings huge losses to management.
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Thus, it can be said that strategic challenges present in the talent management approach bring
huge problem in front of the talent management team. So, it requires huge attention and care
from management. Apart of this, they need to tackle on an immediate basis so that their effect
can balance as soon as possible.
Changes in HR practices and Policies
It is necessary for an organization to change its HR policies and practices with the change in
competitive environment. This helps the organizations in managing their competitiveness in their
potential markets. Changes in HR policies and practices requires the talent management team to
build new strategies to deal with the changing environment. The organization faces lots of
strategic challenges due to change in HR practices and policies. Some of them can understand by
reading below-mentioned headings.
Strategic Challenges due to relocation and location management
Talent management strategy highly influenced by the location management. If an organization is
managing international talent, it requires strategies according to international employees. On the
other hand, if an organization is managing domestic talent it needs to build strategies according
to it (Armstrong, 2014). Due to location management, an organization faces lots of strategic
challenges like language, cultural barriers, training and development, and others.
Forecasting and planning
In today's talent-based economy, planning and the forecasting are arguably most important
tangible asset of most organizations. They faced a lot of strategic challenges in planning or
forecasting workforce. The first and foremost challenge is time framing. Planning of human
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resources should be done as per required time manner. If it is not focused it will bring the
problem of manpower shortage.
Staffing
Staffing policy changes influence the talent management strategy in a greater manner. Change in
staffing policy brings alteration in overall talent management strategies. In that situation, it
becomes difficult for the management to manage flow and consistency in their practices
(Collings, 2014). On the other hand, it becomes difficult to hire the staff in required manner with
necessary skills.
Training and developing
Changes in training and development processes bring huge challenges in front of talent
management staff. Due to the changes policies, it becomes very difficult for the staff member to
track the performance of current employees. On the other hand, training and development
efficiency cannot measure in the absence of progress evaluation. This becomes very challenging
to prepare a staff with the required skills and knowledge.
Evaluation of employees performance
Every organization has their own evaluation processes to maintain talent and progress of their
staff members such as some organizations facing 360-degree evaluation, and others are ranking
method. Changes in performance appraisal techniques bring confusion and record cannot manage
in an effective manner (Cooke, 2014).
Thus, it can be said that changes in HR practices and policies bring huge challenges in front of
the talent management team. Thus, they should take appropriate initiatives so that challenges can
resolve immediate basis and brings visibility in employee performance.
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Recommendations
Effective talent management is required by every organization. So, it can be recommended to
them that they should develop their talent management strategies. Developing talent management
strategies help them in identifying talent challenges and solutions based on their business goals.
Furthermore, they should also enforce integration strategies which further helpful in linking
talent processes with the organizational goals. This will help them in gaining a competitive
advantage on their competitors. On the other hand, organizations need to follow the roadmap of
building integration. By doing this, they can successfully integrate their business strategies with
the organizational goals.
Conclusion
After studying all this, it can be concluded that talent management has never been more of an
immediate concern than it is right now. For fulfilling the current positions the organizations need
not run fast and become void, they should be careful and implement strategies and initiatives
after implementing well-crafted solutions. Furthermore, they should follow all the theories and
models of talent management as suggested above. On the other hand, careful planning proves
helpful in developing sound talent management strategies that are highly connected to the
business strategies of the organization (Jackson, 2014). Moreover, strategic challenges can
handle through effective planning and follow all necessary talent management principles and
theories. Thus, it can be said that talent management approach has an own identity in the
strategic human resource management. This identity makes it different from other strategic
human management approaches.
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References
Al Ariss, A., Cascio, W.F. and Paauwe, J., 2014. Talent management: Current theories and future
research directions. Journal of World Business, 49(2), pp.173-179.
Alamri, M.A., 2015. Talent management challenges in Saudi Arabia (Doctoral dissertation,
Brunel University London).
Armstrong, M. and Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Collings, D. G., 2014. Integrating global mobility and global talent management: Exploring the
challenges and strategic opportunities. Journal of World Business, 49(2), 253-261.
Cooke, F.L., Saini, D.S. and Wang, J., 2014. Talent management in China and India: A
comparison of management perceptions and human resource practices. Journal of World
Business, 49(2), pp.225-235.
Dries, N., 2013. The psychology of talent management: A review and research agenda. Human
Resource Management Review, 23(4), pp.272-285.
Farndale, E., Pai, A., Sparrow, P. and Scullion, H., 2014. Balancing individual and
organizational goals in global talent management: A mutual-benefits perspective. Journal of
World Business, 49(2), pp.204-214.
Festing, M., & Schäfer, L., 2014. Generational challenges to talent management: A framework
for talent retention based on the psychological-contract perspective. Journal of World
Business, 49(2), 262-271.
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Festing, M., Kornau, A. and Schäfer, L., 2015. Think talent–think male? A comparative case
study analysis of gender inclusion in talent management practices in the German media
industry. The International Journal of Human Resource Management, 26(6), pp.707-732.
Jackson, S.E., Schuler, R.S. and Jiang, K., 2014. An aspirational framework for strategic human
resource management. The Academy of Management Annals, 8(1), pp.1-56.
Meyers, M. C., & van Woerkom, M., 2014. The influence of underlying philosophies on talent
management: Theory, implications for practice, and research agenda. Journal of World
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Stahl, G.K., Bjorkman, I., Farndale, E., Morris, S.S., Paawe, J., Stiles, P., Trevor, J. and Wright,
P., 2016. Six principles of effectice global talent management. IEEE Engineering Management
Review, 44(Third Quarter), pp.112-119.
Skuza, A., Scullion, H. and McDonnell, A., 2013. An analysis of the talent management
challenges in a post-communist country: The case of Poland. The International Journal of
Human Resource Management, 24(3), pp.453-470.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns,
R., Robinson, J., O'Leary, P. and Plimmer, G., 2015. Managing Employee Performance &
Reward: Concepts, Practices, Strategies. Cambridge University Press.
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Appendices
Roadmap to Integration
Source: (Meyers, 2014)
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