Investigating the Impact of Talent Management on the Retention of Human Resources: A Study in Zahedan Municipality
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1 Interntionl Review of Mngement nd Mrketing ISSN: vilble t http: Interntionl Review of Mngement nd Mrketing, 2017, 7(3), Investigting the Impct of Tlent Mngement on the Retention of Humn Resources: A Study in Zhedn Municiplity Zohreh Kohestny 1, Nour Mohmmd Yghoubi 2 1 Deprtment of Mngement, Zhedn Brnch, Islmic Azd University, Zhedn, Irn, 2 Professor, University of Sistn nd Bluchestn, Zhedn, Irn. *Emil: yghoobi@hmoon.usb.c.ir ABSTRACT This study imed to investigte the impct of tlent mngement on the retention of humn resource is in Zhedn Municiplity. The reserch ws descriptive-correltionl nd popultion consisted of ll 100 employees in Zhedn Municiplity. Tlent mngement nd retention of humn resources questionnires were used. Vlidity of questionnires ws confirmed by fculty professors nd experts in Zhedn Municiplity; their relibility obtined by Cronbch s lph coefficient ws 95% nd 93%, respectively. Regression test in SPSS16 softwre ws used in order to dt nlysis. Test results showed tht tlent mngement effects on the retention of humn resource. Moreover, ll vribles of socil responsibility, employee pride, mngement support, performnce mngement, intrinsic rewrds, nd helth fctors predict the retention of humn resources. Keywords: Tlent Mngement, Retention of Humn Resources, Employees Pride, Turnover Intention, Stisfction JEL Clssifiction: M1 1. INTRODUCTION One of the min tsks of humn resource mngement (HRM) in orgniztions is optiml retention of humn resources (Ghzizdeh nd Amni, 2001). Beside the need to recruit, develop, nd retin tlents, orgniztions hve found tht tlents re criticl resources needing to be mnged in order to chieve the best results (Sweem, 2009). In fct, tlent mngement is secret wepon in globl wr to cquire tlents. So, compnies should hve the bility to provide needed trining nd mintin vluble employees for longterm period (Michels et l., 2001). Tlent mngement includes the whole orgniztionl ctivities for ttrcting, selecting, developing, nd retining the best employees nd utilizing them in the most strtegic role (Collings nd Cligiuri, p ). Most orgniztions, including Zhedn Municiplity, re fcing with tlent crisis becuse of resons like vilble tlent, problems to mintin outstnding tlents, high employee turnover rte, nd humn resources strtegies (Philips nd Roper, 2009). Since the role of tlent nd individul s mentl bilities re importnt for ll orgniztions, Zhedn Municiplity lso tends to ttrct nd retin tlented individuls. Given tht people hve untpped tlents, if n orgniztion fils to tke dvntge of these tlents, other person or orgniztion will do it (Bkhtiry, 2011). Turnover in employees, experts, nd mngers is n orgniztionl dilemm which cn impct on the improvement of orgniztions, such s Zhedn Municiplity, nd mkes chllenge for mngers who tend to retin nd improve their humn resources. Considering fundmentl role of municiplities in providing municipl services nd socil welfre with citizens, lso not enough reserch bout the impct of tlent mngement progrms on retention of humn resources, the need for reserch on this subject is evident. Evluting the impct of tlent mngement on retention of humn resources, the study ttempts to tke big step in order to mintin tlented personnel in Zhedn Municiplity. 2. RESEARCH LITERATURE 2.1. Tlent Mngement According to Duttgupt (2005), tlent mngement is the criticl mnging flow of tlent in the orgniztion; the objective is mking n vilble source of tlent to mtch the right people with the right jobs t the right time bsed on strtegic gols of the business. Schweyer (2004) believes tht tlent mngement covers 138 Interntionl Review of Mngement nd Mrketing Vol 7 Issue
2 Kohestny, et l.: Investigting the Impct of Tlent Mngement on the Retention of Humn Resources: A Study in Zhedn Municiplity ll processes, fundmentls, nd technologies of humn resources; it usully includes sourcing, selecting, employing, mintining, developing, nd moderniztion tlented workforce by nlysis, plnning, nd composition of different elements. In other words, tlent mngement cn more optimlly pply wht occurs t ttrcting nd developing steps in workforce mngement process; s Corellmn believes tht tlented people ply the min role in compny s success. Following number of tlent mngement models re introduced (Tble 1) Retention of Humn Resources Retention of humn resource refers to orgniztion s bility to mintin tlented nd qulified stff, i.e., people who help orgniztion s competitiveness in this rpidly chnging world (Brnhm, 2005). One of the min tsks of HRM is optiml mintennce of humn resources. The desire for durbility or probble degree of employee retention is relted to employee s motivtion to be member of orgniztion nd their desire to do more nd continuing coopertion. If workforce works with pece of mind nd strong motivtion without ny fer bout the future, higher productivity will be reched (Briscoe nd Schuler, 2004). 3. RESEARCH CONCEPTUAL FRAMEWORK Tymon et l. (2009) considered six vribles for tlent mngement including corporte socil responsibility, employees pride, mngement support, performnce mngement, intrinsic rewrds, nd extrinsic rewrds. Moreover, he considered turnover intentions, job stisfction, nd creer success s three outputs for mngement tlent process. Becuse of inclusiveness nd hving mjority of tlent mngement components, Tymon,s nlyticl model is guideline for conceptul model of the study. Components of this model re briefly described s followed (Figure 1): Corporte socil responsibility: According to Griffin nd Brney, socil responsibility is the set of duties nd obligtions tht n orgniztion needs to tke cre nd help the community in which it opertes. Performnce mngement: Story nd Seson defined performnce mngement s n interconnected set of policies nd prctices tht emphsize on high level orgniztionl gols through focusing on individul performnce. Mngement support: Coching the process of continuous support nd coopertion with individul to remin stedfst in his gols nd commitments; it mens pssing through shortcut, overcoming fers, nd reinforcing key points nd fetures (Lubns, 2009). Employees pride: When n employee hs sense of pride in orgniztion, he performs something tht is plesure for him nd this sense is the source of meningfulness of work experience (Tymon et l., 2009). Intrinsic rewrds: Intrinsic or internl rewrds hve been interpreted bsed on vluble positive experience tht one cquires in crrying out his tsks (Deci, 1975). Helth fctors (extrinsic rewrds): Helth fctors re not intrinsic, but relted to conditions under which work is performed. Tht is why they re sometimes clled extrinsic rewrds (Thoms, 1943). 4. RESEARCH REVIEW Mli (2011), in study entitled investigting success fctors in tlent mngement nd brriers for implementing it in SAIPA Group, concluded tht fctors like stndrd processes nd tools, positive vision towrd humn resources, nd mngers with Figure 1: Reserch conceptul frmework Tble 1: Tlent mngement models Key vribles ffected by tlent mngement Predisposing fctors Reltionship with privte/government sector Performnce mngement, workforce plnning, prtner mngement, selection, tresury succession, trining nd development, strtegy development or creer pth, services nd benefits Discovery, integrtion, performnce mngement, retention, nd turnover Succession plnning, job strtegy, determining professionl trgets, gp nlysis Socil responsibility, pride in the orgniztion, mngement support, performnce mngement, intrinsic rewrd, helth fctors Job strtegy, succession plnning, tlent direction, comprehensive employee development, coching Strtegy nd business objectives in the orgniztion Model Privte Tlent on (2010) Strtegies nd business needs Privte Tlent mngement mturity model LORE (2010) Business strtegies Privte Jsper Assocites (2009) Attrcting, mnging, nd retining tlent Philosophy, strtegy, nd methodology of orgniztion s well s individul development pln Privte Tymon et l. (2009) Privte Technologies (2008) Interntionl Review of Mngement nd Mrketing Vol 7 Issue
3 Kohestny, et l.: Investigting the Impct of Tlent Mngement on the Retention of Humn Resources: A Study in Zhedn Municiplity long term perspective re mjor success fctors, moreover, fctors such s domintion of reltions in ppointing, lck of strtegic humn resource system, nd top mngers belief, commitment, nd support re mjor obstcles in success of tlent mngement in the SAIPA Group. Azimvnd (2011) exmined the reltionship between tlent mngement nd ledership style. The findings re s follows: There is significnt positive reltionship between ledership style nd tlent retention, significnt positive reltionship between ledership style nd trining nd developing tlent, no significnt reltionship between utocrtic ledership style nd tlent retention, no significnt reltionship between utocrtic ledership style nd trining nd developing tlent, positive reltionship between prticiptory ledership style nd tlent retention, positive reltionship between prticiptory ledership style nd trining nd developing tlent, positive reltionship between delegtive ledership style nd trining nd developing tlent. Ki Hundi (2011), in n rticle, studied the effect of tlent mngement on the efficiency of ntionl nd multintionl orgniztions in Nigeri. The findings showed tht tlent mngement hd positive impct on orgniztionl performnce. Tymon et l. (2009), in n rticle entitled exploring tlent mngement in Indi: The neglected role of intrinsic rewrds, concluded tht six vribles including corporte socil responsibility, employees pride, mngement support, performnce mngement, intrinsic rewrds, nd helth fctors led to three key outputs including turnover intentions, job stisfction, nd creer success. 5. RESEARCH HYPOTHESES 5.1. Min Hypothesis Tlent mngement hs positive impct on the retention of humn resources in Zhedn Municiplity Secondry Hypotheses 1. Corporte socil responsibility hs positive impct on the retention of humn resources in Zhedn Municiplity. 2. Employees pride hs positive impct on the retention of humn resources in Zhedn Municiplity. 3. Mngement support hs positive impct on the retention of humn resources in Zhedn Municiplity. 4. Performnce mngement hs positive impct on the retention of humn resources in Zhedn Municiplity. 5. Intrinsic rewrds hve positive impct on the retention of humn resources in Zhedn Municiplity. 6. Helth fctors hve positive impct on the retention of humn resources in Zhedn Municiplity. 6. RESEARCH METHODOLOGY This descriptive-correltionl reserch ws conducted through field method. Reserch popultion consisted of 100 employees in Zhedn Municiplity nd smpling ws conducted in census method. To collect dt, librry informtion nd questionnires were used. The questionnires were stndrd nd their vlidity ws confirmed in previous studies. However, some experts checked the vlidity nd fter necessry reforms, the vlidity of questionnires ws pproved. Questionnire relibility ws ssessed by clculting Cronbch s lph coefficient. The coefficient of 95% for tlent mngement questionnire nd 93% for retention of humn resources showed high relibility of both questionnires. In order to test reserch hypotheses, regression test in spss16 softwre ws pplied. 7. HYPOTHESES TESTING 7.1. Min Hypothesis Testing Tlent mngement hs positive impct on the retention of humn resources in Zhedn Municiplity. According to Tble 2, correltion coefficient is R = 0.84 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.70 indicting tht tlent mngement cn predict nd ffect retention of humn resources s much s 70% Secondry Hypotheses Testing. Corporte socil responsibility hs positive impct on the retention of humn resources in Zhedn Municiplity. According to Tble 3, correltion coefficient is R = 0.54 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.29 indicting tht corporte socil responsibility cn predict nd ffect retention of humn resources s much s 29%. b. Employees pride hs positive impct on the retention of humn resources in Zhedn Municiplity. Tble 2: Regression test for the impct of tlent mngement on retention of humn resources estimte Predictors: (Constnt), modirit.estedd Tble 3: Regression test for the impct of corporte socil responsibility on retention of humn resources estimte Predictors: (Constnt), msoolit.ejtemei Tble 4: Regression test for the impct of employees pride on retention of humn resources estimte Predictors: (Constnt), gh.v.eftekhr.krkonn 140 Interntionl Review of Mngement nd Mrketing Vol 7 Issue
4 Kohestny, et l.: Investigting the Impct of Tlent Mngement on the Retention of Humn Resources: A Study in Zhedn Municiplity According to Tble 4, correltion coefficient is R = 0.73 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.53 indicting tht employees pride cn predict nd ffect retention of humn resources s much s 53%. c. Mngement support hs positive impct on the retention of humn resources in Zhedn Municiplity. According to Tble 5, correltion coefficient is R = 0.62 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.38 indicting tht mngement support cn predict nd ffect retention of humn resources s much s 38%. d. Performnce mngement hs positive impct on the retention of humn resources in Zhedn Municiplity. According to Tble 6, correltion coefficient is R = 0.79 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.63 indicting tht performnce mngement cn predict nd ffect retention of humn resources s much s 63%. e. Intrinsic rewrds hve positive impct on the retention of humn resources in Zhedn Municiplity. According to Tble 7, correltion coefficient is R = 0.75 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.56 indicting tht intrinsic rewrds cn predict nd ffect Tble 5: Regression test for the impct of mngement support on retention of humn resources estimte Predictors: (Constnt), poshtibni.modir Tble 6: Regression test for the impct of performnce mngement on retention of humn resources estimte Predictors: (Constnt), modirit.mlkrd Tble 7: Regression test for the impct of intrinsic rewrds on retention of humn resources estimte Predictors: (Constnt), pdsh.drooni Tble 8: Regression test for the impct of helth fctors on retention of humn resources estimte Predictors: (Constnt), vmel.behdshti retention of humn resources s much s 56%. f. Helth fctors hve positive impct on the retention of humn resources in Zhedn Municiplity. According to Tble 8, correltion coefficient is R = 0.67 with significnce level of Sig. = Therefore, hypothesis is confirmed. The coefficient of determintion is equl to 0.45 indicting tht helth fctors cn predict nd ffect retention of humn resources s much s 45%. 8. CONCLUSIONS AND RECOMMENDATIONS The study concluded tht tlent mngement effects on the retention of humn resources. According to reserch conceptul model, tlent mngement hs six vribles including corporte socil responsibility, employee pride, mngement support, performnce mngement, intrinsic rewrds, nd helth fctors. Bsed on reserch hypothesis testing, ll these vribles hve positive impct on the retention of humn resources in Zhedn Municiplity. It mens tht increse/decrese in these vribles my led to increse/decrese in the retention of humn resources. Due to reserch popultion, performnce mngement, intrinsic rewrds, nd employees pride hve the gretest positive impct on the retention of humn resources in Zhedn Municiplity. Results suggest tht mngers should py more ttention to the retention of tlented employees, becuse the success or filure of orgniztion depends on them. The reserch emphsizes the point tht sitution cn be improved by using tlent mngement, identifying key positions, nd ppointing people in these positions. But wht ultimtely mkes tlent mngement to hve pproprite results is strong continuous support from mngement; otherwise, success will not be chieved. Bsed on reserch findings, following suggestions cn be considered by Zhedn Municiplity: Estblishing optiml, cler, nd chllenging performnce mngement system for employees. To do this, performnce trgets cn be defined for ech group, post, nd even individul. Therefore, there should be fir nd strong reltionship between performnce nd rewrds. Applying job enrichment strtegies nd creting utonomous tems tht cuse job stisfction nd creer development in employees. By dmitting socil responsibilities nd doing duties towrds society nd ll stkeholders, Zhedn Municiplity cn tke big step to mke stisfction, motivtion, nd sense of pride in its employees s well s society. In order to do so, they should inform their ctivities to employees nd even people. REFERENCES Azimvnd, Z. (2011), Investigting success fctors in tlent mngement nd brriers for implementing it in SAIPA Group, Tehrn University. Brnhm, L. (2010), The Resons for Employee Turnover. Trnslted by Rshidi H.R nd Ghrei Pour R. Tehrn: Spko Press. Bkhtiry, A. (2010), Plnning to become n employer of choice. Journl of Orgniztion Excellence, 24(3): Briscoe, D.R., Schuler, R.S. (2004), Interntionl Humn Resource Mngement: Policy nd Prctice for the Globl Enterprise. London: Routledge. Interntionl Review of Mngement nd Mrketing Vol 7 Issue
5 Kohestny, et l.: Investigting the Impct of Tlent Mngement on the Retention of Humn Resources: A Study in Zhedn Municiplity Collings, D., Cligiuri, P. (2010), Introduction globl tlent mngement. Journl of world Business, 455(2), Deci, E.L. (1975), Intrinsic Motivtion. New York: McGrw-Hill. Duttgupt, R. (2005), Identifying nd Mnging Your Assets: Tlent Mngement. London: Price Wter House Coopers. Ghzizdeh, M., Amni, J. (2001), Investigting Affecting Fctors on the Retention of Humn Resources, First Ntionl Conference of Industril Mngement, Shhed University. Jsper Assocites. (2009), HR role in tlent mngement nd driving business result. Employment Reltion Tody, 32(1), Ki Hundi, Jmes Sundy (2011),Tlent mngement: Effect on orgniztionl performnce. Journl of Mngement Reserch, 4(2), Lubns, J. (2009), The sprk plug: A leders ctlyst for chnge. Librry Ledership nd Mngement, Chicgo, 23(2), Mli, T.M. (2011), Investigting Success Fctors in Tlent Mngement nd Brriers for Implementing it in SAIPA Group. Tehrn: Tehrn University. Michels, E., Hnd, J.H.F., Axelrod, B. (2001), The Wr for Tlent. Boston: Hrvrd Business School Publishing. Philips, D.R., Roper, K.O. (2009), A frmework for tlent mngement in rel estte. Journl of Corporte Rel Estte, 11, Schweyer, A. (2004), Tlent Mngement Systems: Best Prctices in Technology Solutions for Recruitment, Retention nd Workforce Plnning. New Jersey: John Wiley & Sons. Sweem, S.L. (2009), Lerning Employee Enggement Through Tlent Mngement Strtegy: Optimizing Humn Cpitl Through Humn Resources nd Orgniztion Development Strtegy in Field Study, Disserttion. Avilble from: Thoms, K.W. (1943), Technicl brief the work Enggement Profile. Mountin View, CA:CPP. Tymon, W.G.Jr., Stumpf, S.A., Doh, J.P. (2009), Exploring tlent mngement in Indi: The neglected role of intrinsic rewrds. Journl of World Business, 45(2), Interntionl Review of Mngement nd Mrketing Vol 7 Issue
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