The Impact of Organizational Talent on the Performance of Adidas

1.0 Chapter One: Introduction

1.1 Background of the Study

For decades, the employees have been considered as the most critical resource that increases the effectiveness of an organization. Apart from being referred to as the human resource of the firm, employees have also been gained recognized as a factor of production (Cerdin & Brewster 2014; Scullion & Collings 2010). In the contemporary competitive business landscape, humans have increasingly gained significance in the field production. The most significant challenge facing most of the organization in today’s business world is retaining talented employees. When key gifted workers quit, they carry away the critical experience and knowledge which is vital for enhancing a competitive advantage (Ashton & Morton 2005; Frank & Taylor 2004). Low engagement with employees attributes to the problem of turnover behaviors which see talented workers leave a firm. Employee turnover reduces the effectiveness of a firm as pertains to performance.

Talent management (TM) is a recently developed concept in the field of HR that addresses the employee turnover problem hence enhancing the performance firms in their respective industries (Hwang & Kuo 2006). Thamilselvan (2013, p.454) defined the concept as “the process of integrating new workers, developing and retaining the current workers and attracting highly skilled personnel to work for your company.” the presence of committed and talented persons with a team spirit and the will to power will, in turn, boost the morale of other employees hence the desired effect on the growth and performance of a firm (Chugh & Bhatnagar 2006). Christensen and Rog (2008) stated that the efficient talent management increases the employees’ commitment level and consequently, their effectiveness. Additionally, TM places workers in positions that suit their interests and aptitude and, as a result, avoiding the ill consequences that lead to low productivity and the distortion in the organizational structure.

1.2 Research Aim

The primary purpose of the proposed study will be to examine the impact of organizational talent on the enhancement of the firm performance. To achieve this, the study will center on the operationalization of the strategic talent management process to improve the performance of Adidas.

1.3 Research Objectives

The proposed study will seek to realize the following research goals;

1. To establish the impact of organizational talent on the performance of Adidas.

2. To establish the ways through which Adidas can maximize the potential of talent management to enhance its performance through attraction, retention and career development.

3. To determine the effectiveness of the operationalization of the strategic talent management process.

2.0 Chapter Two: Literature Review

2.1 Introduction

The second section of the proposed study will incorporate an analysis of the various studies that will help in explaining the dependent variable, organizational performance, and talent management as the main independent variable.

2.2 Theoretical Perspective of the Study

Badham (2014) described a theory as a set of principles that are purposely created to evaluate a group of facts which have been grossly acknowledged and tested severally and, therefore, can be used to derive meaning conclusions and predictions. The proposed study will be founded on the motivational theory of employees. According to Bowen and Sadri (2011), employee motivation is a critical factor to consider in the efforts to enhance organizational performance. The theory suggests that an employer can improve the talents of the employees through motivation (Latham & Pinder 2005). Bowen and Sadri (2011) examined the significance of talent attraction and retention using the motivation theory. For the purpose of the proposed study, the researchers will use insights from Maslow’s theories of motivation that focus on intrinsic motivation factors such as job satisfaction. These factors are critical in talent attraction and retention.

2.3 The Concept of Talent Management

For the past decade, scholars in the field of management have experienced the challenge of establishing a working definition of talent management. Lewis and Heckman (2006, p.139) noted, ”There is a disturbing lack of clarity regarding the definition, scope and overall goals of talent management.” Due to the increasing significance of the concept in the contemporary business world, the practitioners have found it extremely important to explicitly define TM and its goals. According to Bethke-Langenegger, Mahler, and Staffelbach (2011), there are three views commonly held by many authors in understanding the concept of TM. The first view perceives TM as a conduit or tool that can be used to reach economic outcomes. The second view sees TM as ”a process through which employers anticipate and meet their needs for human capital’ (Cappelli 2008, p.1). Lastly, some scholars view TM in the human capital aspect hence the presence of the term talent.

The second view will be adopted in the analysis of the proposed study. Talent management is understood as a unique process that dwells on the individuals who have capabilities to increase the competitive advantage of the firm. TM involves the management of these people in an efficient and effective to ensure the long-term competitiveness of an organization (Al Ariss, Cascio, and Paauwe 2014; Cappelli and Keller 2014). With this respect, the operationalization of the process of strategic talent management encompasses human resource practices such as training and development, employee attraction and retention, motivation and assessment.

2.4 The Impact of Organizational Talent on Performance of Firms

According to Joyce, Herreman, & Kelly (2007), the effect of organizational talent on the performance of firms can be examined from a financial perspective. Researchers have found TM to be a worthwhile investment due to its positive influence on the financial performance of organizations. Ringo et al. (2008) stated that companies with an effective TM strategy exhibit a significantly higher performance financially compared to their peers in the industry. An improvement is realized in the various financial segments including productivity and sales revenue, operating profit, Net Profit Margin, and the Return on the Market Value and Shareholder’s Value (Lockwood 2006; Sullivan 2009).

Steinweg (2009) examined the impact of TM on organizational outcomes. Some of the reported results of a stable TM include a critical increase in operational excellence, better market access, and a strong and sustainable corporate culture. A study conducted by Towers Perrin (US) (2005) revealed that TM enhances the image and attractiveness of the employer. However, the operationalization process of talent management must be clear and transparent both outside and within the company to manifest the positive results. Furthermore, the effect of TM is experienced through the human resource outcomes. DiRomualdo et al. (2009) pointed out that talent management improves employee engagement. Firms that practice effective TM report higher job satisfaction among workers, higher innovative ability, enhanced quality skills, and more importantly, higher retention (Blackman & Kennedy 2013).

2.5 Maximizing the Potential of TM

The existing literature describing the benefits accrued in practicing TM in business is vast. The increasing significance of TM in today’s fiercely competitive business environment necessitates the need to maximize the potential of the concept (Gelens et al. 2014; Cohn, Khurana, & Reeves 2005; Gandossy & Kao 2004). There are numerous through which the HR department can improve the ability of a firm to develop on its TM strategy. The proposed study will extensively evaluate the importance of employee motivation in talent management. According to Chaudhary and Sharma (2012), the motivation of employees ultimately leads to job satisfaction and, consequently talent retention. Since individuals want to be associated with a firm recognizing their efforts, a business employing motivation theory will also likely attract talented employees (Oladapo 2014; Davis et al. 2007; Ready & Conger 2007). Moreover, learning and development of employees’ career is another way through which firms can use to improve talent management hence maximizing its benefits (Ingham 2006). Harburg (2003) and Galagan (2008) hold that up-skilling of the workforce through training, and use of new business models and technologies is critical in advancing the careers of the workers.

2.6 Operationalization of the Strategic Talent Management Process

TM is seen as a process that involves doing something different or additional with those employees defined as talented with the aim of positively influencing the performance of a firm. Blass (2007) noted that fifty percent of the firms in the UK appear to embrace the TM system. Additionally, 84 percent of the managers in the region want to be recognized as high potential (Blass 2007). They consider qualifications as the determinant factor for their reputation in terms of career management (Peters 2006). When an individual is identified as talented in the UK, he/she is exposed to better promotion and enhanced development opportunities. The pressure mounted on talented employees in the UK is an indicator of the effectiveness of the strategic talent management process. The TM process is designed by the most competitive organization in the region in a way that enables employees ”to rotate in, through and out of the talent pool at various career stages” (Blass 2007, p.7). The rotational design of the TM process helps in reducing the danger of setting the expectation bar high in the early stage of an employee’s career, thereby, discouraging the late entrants in the career.

2.7 Summary of the Literature Review

The literature that will be reviewed in this section will seek to explore the research objectives. First, the section will insightfully describe the employee motivation theory which will inform the course of the study. Second, a critical review of the talent management concept will be carried out to understand the varied definitions and goals. As observed, there are three views that will help in understanding the concept. The proposed study will work with view advanced by Cappelli (2008) relating the concept to human capabilities to increase the competitiveness of a firm. Furthermore, the researchers will explore the literature on the impact of TM on the performance of firms as well as the secondary sources detailing the ways of maximizing the potential of TM. An analysis of the strategic talent management process will be carried out with a special focus on the UK management systems.

3.0 Chapter Three: Proposed Method of the Research

3.1 Philosophical Approach

The researchers will use the interpretative philosophy which believes that the social business and management world is very complex to the extent of requiring the foundations of laws and theories as it is the case with natural sciences. The philosophy further holds that there exist many meanings and truths of simple facts which are suitable for various research problems and phenomena (Jansson 2007). In relation to the proposed study, the philosophy will play a critical part in producing the outcomes of the data collected. Using the philosophy, the researcher will seek to interact with the environment besides collecting secondary data in a bid to make sense of the study through interpretation of the experiences from the respondents.

3.2 Research Strategy

Both qualitative and quantitative approaches will be employed to address the research objectives. The former will be used extensively to obtain an in-depth comprehension of the association between TM and organizational performance. The strategy fits the proposed study because the researchers seek to understand the underlying motivations, opinions, and reasons for a particular phenomenon. The quantitative approach will be utilized to quantify the hypothesized linkage between the variables used – the independent and dependent variable. The approach will be suggested for the study because of its strong ability to test the theoretical perspective of the research topic. However, the approach is weak in obtaining the required information on the field.

3.3 Data Collection Methods

Cooper and Schindler (2006) defined the data collection methods as the tools used by the researchers to gather information in the field. The choice of the instruments to be used in the study is influenced by the availability of resources and time, as well as, the nature of the problem. The proposed study will collect the primary data through the administration of semi-structured questionnaires which will be applied to the top management personnel. Additionally, interviews will be conducted among the employees of the case study company. Questionnaires and interviews will be the appropriate instruments for the proposed study because of they can collect information from a large population in a wide geographical area. Furthermore, the respondents are able to freely elicit and express their perceptions and beliefs. The questionnaires will be the primary tool to gather information on variables such as career development, talent retention, and talent attraction. However, the researchers will experience the challenge of obtaining bias information from the respondents by using the two data collection methods.

Moreover, the researchers will obtain the secondary data through a critical review of other studies addressing the research topics on the influence of TM on organizational performance. The literature that will be reviewed will help in testing the theory to be used in laying the foundation for the study.

3.4 Sampling

Groves (2011) defined a sampling frame as the physical representation of the subjects targeted for the study. The frame comprises of the all the potential participants sampled by the researchers. In the proposed study, the sample frame will consist of the 135 employees including the managers in various departments working in Adidas. The sample will be categorized into the junior level, middle level, and senior level management. The researchers will use a stratified sampling strategy to meet the required representation of the various groups of the participants. May, Maier, and Dandy (2010, p.284) stated, ”Stratified sampling is used when the cases in a population fall into distinctly different categories of a known sample of that population.” According to Robinson (2014), stratified sampling enhances the statistical efficiency of a sample hence providing adequate information that enables the use of different research procedures and methods.

2.5 Data Analysis

The analysis of the data collected will be guided by the goals of the study. The mass of raw data gathered through the administration of questionnaires and interviews will be systematically organized to enable effective data analysis. The information will be analyzed using the SPSS version 22 program which will help in generating tables, means, pie charts, graphs, and frequency distributions. The multiple linear regressions emerging from the data analyzed through the use of the program will seek to determine how independent variable will predict a dependent variable – organizational performance. Cohen et al. (2013) asserted that multiple regression analysis helps in quantifying the effect emanating from simultaneous influences which are derived from a single dependent variable.

2.6 Anticipated Challenges and Limitations

2.6.1 Challenges

The most critical challenge anticipated by the researcher is ensuring that all the questionnaires and interview questions are completed and answered in due time by the respondents. Additionally, it will be difficult to get all the subjects respond to the interviews because of their fixed schedules at work. However, the researcher will overcome these challenges by first, personally engaging the participants to complete the questionnaires and second, by allowing interviews to be conducted even out of the workplace.

2.6.2 Limitations

The slow response from the managers will limit the schedule of the study. Also, the company would consider certain data as confidential and, therefore, could not refuse to reveal it. To mitigate the first limitation, the researcher will make constant follow-ups through physical visits to the managers’ offices and phones. The second limitation will be avoided by introducing a letter from the university to the respondents detailing the confidentiality of the study and that the information obtained from them will only be used for academic purposes.

2.7 Ethical and Professional Issues

Researchers are required to adhere to the ethical standards set for conducting a research study. The proposed study will get an authorization from the research review board of the university before beginning the process of gathering information. Secondly, the subjects will be given an informed consent form that will show the agreement to participate in the study. Also, the respondents will be assured about the confidentiality of their information.

2.8 Research Time Table

Task

Weeks

1

2

3

4

5

6

7

8

9

10

11

12

13

13

15

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