People Resourcing and Talent Planning: Africa Omnipotence - Case Study Example

People Resourcing and Talent Planning: Africa Omnipotence

Introduction

Human Resource Management (HRM) is an integral component of an organisation. As a function, HRM is involved in people resourcing and talent planning. Currently, HRM is a strategic, integrated and coherent approach to employment, development and well-being of the workforce in an organisation (Armstrong 2012:4). Its key goals include supporting the organisation in achieving its objectives, ensure the organisation obtains talented personnel and create a positive relationship between management and employees. In the case of Africa Omnipotence, there is a talent gap in the organisation that can significantly limit their expansion strategy. The organisation faces several issues such as confusion of roles and supporting structures and a poor salary structure. There is a need for effective HR strategies and policies in the organisation that will ensure effective management of employees, acquisition of talent and re-alignment of tasks to meet the organisations goals.

HRM involves comprehensive employment and development of people. The HRM function consists of various theories that focus on how people can be used as a tool for ensuring organisation effectiveness. There is also an ethical dimension to HRM as people should be treated following a set of values (Armstrong 2012:2). In HRM, policies are established in key dimensions such as employee resourcing, performance and reward, learning and development. Presently, there is a plethora of research linking HR practices and firm performance. In a study by Collins and Clark (2003), he researchers explore that HR functions contributed to higher performance and sustained competitive advantage as the systems of the practice are often difficult to imitate, unique and causally ambiguous. The resource-based view of HR argues that it is the resources in the organisation, including the human resources that provide an organisation with a unique character while enhancing its competitive advantage.

Key HR Policies

There are several key HR policies that need to be established for Africa Omnipotence to be successful. First, there should be an overall policy that delineates the organisations objectives and how the employees should be handled (Armstrong 2012:458). The firm also needs specific HR policies that cover factors such as discipline, employee development and relations. Policies are important as they address issues that have been identified in a particular firm. Through policies, organisations can establish frameworks that ensure efficient administration of matters, and an effective approach for dealing with HR issues. Critical policy issues that should be addressed include reward and work systems, personnel flow and employee systems. By developing critical HR policies that focus on those four key areas, management can create programmes that run in a unified and systematic manner thereby enhancing the firm’s performance.

Performance Flow

Personnel flow involves the management of people, into, through and out of the organisation. It involves the achievement of organisations goals such as selection, promotion, job security and career development. Africa Omnipotence has been recruiting its employees through word of mouth and agencies. The firm needs an HR policy on recruitment and staffing. The policy should evaluate the external and internal factors of an organisation, with internal factors consisting of procedures, plans and policies of the firm. Recruitment policies should be designed to encourage applications from people from various backgrounds (Cooper et al. 2003:87). The organisation should also adopt a multi-channel approach that utilises various recruitment sources and methods to identify and attract talent.

In the highly competitive environment, the emphasis on quality recruitment process is an issue of concern as management seeks to attract and retain key staff. Presently, organisations compete by employees’ talents and capabilities. Therefore, for the firm to be successful, they need to have effective HR policies and practices that facilitate the acquisition and retention of key talents. Recruiting policies should promote the advent of human capital resources. Also, the policies help to guide the organisation in the consistent implementation of relevant recruiting practices. The policies have a direct and indirect outcome on the firm, for example, indirectly; the recruitment policies provide positive signals to the desired candidates as they perceive a unified message across the firm (Cable 2013:13). Policies further advance to become a path of strategic value to the organisation as they become a tool for supporting human capital resource emergence (Cable 2013:13).

Recruitment practices can involve internal and external sources of recruitment. Having an internal talent management function involves training employees who want to hold key positions in the firm. This includes defining how university programmes; mentoring and job rotations can be focussed on developing employees who can meet the needs of the organisation (Cunningham 2016:128). For example, an employee taking post-secondary courses could be encouraged to enhance his skills on key topics that are important to an organisation. The internal recruitment model facilitates the promotion and development of people from within and challenges managers to identify how an employee might eventually fit into the organisation. It is an ideal strategy for facilitating employee loyalty and commitment as employees are trained and provided with experiences to develop their careers (Cunningham 2016:128).

External resourcing is another approach utilised by organisations to obtain talent. External strategies entail looking for fresh recruits to fill in the positions of the firm. A strategic approach to recruitment requires that organisations keep an account of trends in the labour market. In external resourcing, organisations can utilise various approaches such as advertising, union recruitment or targeting education institutions. Africa Omnipotence seeks to target top graduates to meet its immediate recruitment expansion. Therefore, the firm can target educational institutions by developing recruitment programmes that attract the students to training courses. The firm can also partner with universities so that they can effectively communicate with students concerning vacant positions.

The Recruitment Process

The recruitment process entails steps that a company undertakes to ensure that the right candidates end up in the right company for the right job. The first step the company should take is strategic planning (Aswegen et al. 2009:85). This involves the establishment of overall goals and objectives that the firm aims to achieve. The second step involves human resource planning, in which the management determines whether there is a surplus of employees or shortage. If a firm identifies that there is a shortage, then the firm can utilise recruitment methods such as outsourcing and contingency workers (Aswegen et al. 2009:85). Policies and procedures should be established to guide the recruitment process. After the policies are set up, the firm should decide whether to use internal or external recruitment sources. In most cases, companies opt for a mixed approach to recruitment that is both internal and external sources. Lastly, the recruitment method involves the way in which management will attract employees to the organisation.

In the recruitment process, the aim of strategic resourcing is to match the HR resources to the strategic and operational requirement of the organisation. The approach ensures full utilisation of organisation’s resources and focuses on selecting and promoting people who ‘fit’ the strategic objectives and culture of the firm (Armstrong 2012:204). The approach is based on the resource-based view that argues that firms can achieve competitive advantage by recruiting, retaining and developing a more capable workforce than its competitors. The HR approach for strategic resourcing involves matching the candidate and the organisation beyond the traditional approach that is skills and capabilities about a particular job description. Therefore, management places more emphasis on finding people whose attitudes and behaviour are likely to support the business in achieving its objectives.

Strategic Resourcing approaches that HR can utilise include reallocation of tasks between employees. This strategy enables the firm’s existing staff to experience different approaches to work (Price 2007:306). This may be part of the transition programme in the organisation such as re-organisation. The emphasis is on working practices, acquiring multi-skilled workers and effective assessment and development programmes (Price 2007:306). There is also re-allocation of people from the internal employment market. This approach involves promotion and transfer between departments and is characteristic in Japanese and German organisations. Recruit is another approach that can be used by HR. Employers can select as to whether they will recruit selectively or anybody (Price 2007:306). Regarding systems theory, recruiting can be presented as input, throughput and output. Companies that focus on their internal supply tend to view people as assets that carry a long-term value. Based on environmental conditions and organisation culture, firms can decide between ‘growing’ that is internal recruitment or ‘buying’ which involves external resourcing (Price 2007:306).

Miles & Snow (1978) devised a framework concerning the strategies that a firm is likely to make in a stable or unstable environment. According to the researchers, firms with small niche markets and narrow product ranges require employees who are loyal and exhibit strong commitment. Therefore, the firm is likely to engage in internal resourcing which involves intensive training and career development along largely functional routes (Price 2007:307). Organisations that are dubbed ‘prospectors,’ are innovative and tend to move in and out of the market to capitalise on opportunities and avoid competition. Owing to the instability of the market, prospectors would rather ‘buy’ rather than ‘grow’ personnel. Therefore, the organisations are likely to adopt ‘right person’ recruitment models to obtain talent from external sources (Price 2007:307). Analysers are firms that are more cautious and therefore tend to take a mixed approach to recruitment. Lastly, reactors are firms that firms that are desperately trying to survive in the market. Such firms are often incoherent and unable to ‘make’ employees. Resultantly, such firms engage in ‘buying’ and selling in an attempt to instigate turnaround changes.

Matching people and jobs is not an easy task and can significantly affect performance. One of the ways organisations can avoid a mismatch includes the ‘right person’ approach in which management selects the best person for the job (Price 2007:332). Also, the firm can adopt the culture-fit model that involves changing the job characteristics to fit the abilities of the recruited employees. Third, the firm can take a flexible person approach that entails effective training of employees (Price 2007:332). An organisation can utilise either one or a combination of these three approaches.

Elements of Talent Management

Talent management identifies that people with the best talent win and therefore the best way to transform an organisation is to identify and develop those individuals with talent (Armstrong 2012:201). Therefore, the talent management perspective is manifested in the talent management process that seeks to ‘identify’ and ‘nurture’ high potential employees who will aid the organisation in achieving its objectives. Talent management should be a critical force in ensuring excellence and should consist of policy, strategy and system. Talent management is closely aligned to HR planning and is one of the ways that flexibility can be incorporated into the HR process (Wilkinson & Johnstone 2016:200). By developing ‘pools of talent,’ organisations can increase its ability to resource itself effectively when faced with different scenarios.

Organisations can establish talent policies that will guide them in the management of talent. Where organisations have a pragmatic HR approach, there may be a rational set of talent policies that are either extensive or limited and can either be universally applied or narrowed down to specific roles or individuals. The decision concerning the policies to be applied can be pragmatic and constantly transitioning depending on the environment circumstances. Talent policies centre on various areas such as identification of potential, fast-track development, successful planning, career interviews, assessment of potential and identifying individuals for promotion (Tyson 2012:201). Talent management does not just co-exist with other organisational programmes and frameworks but also supports and coordinates them. It must be driven by strategies and aid in achieving results.

Talent Management Framework (Silzer& Dowell)

The figure above depicts the relationship between talent management, business strategy and results. The business results influence talent and business strategies. This is because the business results are an outcome for measuring whether the organisation’s efforts are effective. Ideally, organisations can use five main processes to ensure talent is available to achieve he organisation’s strategies. These approaches include attracting and selecting talent to the organisation, assessment of skills and competencies, review and plan talent, develop and deploy talent as well as engage and retain talent (Silzer& Dowell 2009:21). These processes are connected and integrated thus allowing a smooth flow of the process throughout the organisation, starting from the recruitment process. A systematic approach to talent management involves the acquisition, attracting, retention and development of talent. Presently, organisations can utilise the systematic approach to support the hiring, promotion and development of employees at all levels of the firm. A competency-based approach focuses on identifying knowledge, skills and behaviours essential for employees in each sector in the organisation. The framework addresses the organisation’s current business needs and also their future goals and opportunities (Lindenberg 2015:62).

High Employee Turnover

Talent management and recruitment process require an effective workforce plan that flows from the overall business strategy. In determining personnel requirements, HR may adopt hard or soft planning techniques. In hard planning techniques, only the numerical head count of personnel is considered when making decisions, whereas, in soft techniques, factors such as characteristics, skills and attitude are considered (Wilkinson & Johnstone 2016:200). Large organisations tend to utilise a mixed planning approach to determine their staff requirement. Ideally, when dealing with issues such as high turnover rate, the organisation can utilise both approaches in identifying effective strategies that focus on employee retention. High turnover means high costs to the organisation. Therefore, there is a need for effective employee retention policies that facilitate the adoption of a coherent approach in dealing with the issue of high turnover rates.

Institutional approaches have a high affinity to ‘soft’ HRM in the job market. They recognise the impact of notions such as loyalty and fairness to employee commitment (Price 2007:106). Soft approaches are consistent with stakeholder concepts that recognise the key role of governments and trade unions in the business environment. Soft approaches focus on organisational change and can favourable impact employee turnover. On the other hand, a combined trajectory involves balancing organisational and technological change. There are two types of retention strategies that the firm can use. First, there are the systemic strategies that are based on the general principles of retention management. The second approach is more targeted and specific. The target-specific approach focuses on the unique issues facing an organisation to influence turnover (Mello 2014:595).

One major barrier in managing turnover is making effective decisions. Management may opt to narrow decision making to minimise uncertainty or ambiguity. To improve decision making, management can consider multiple objectives and issues. Also, management should evaluate alternative expected outcomes that could arise while considering other multiple alternatives (Mello 2014:595). There are several steps that the firm needs to undertake in strategic, evidence-based approach in employee retention that include conducting a thorough turnover analysis to diagnose the extent to which turnover is an issue. Instead of considering recent turnover data, management should consider turnover costs, rates and functionality. The second step involves interpreting the findings through the lens of the organisation context. A high turnover rate would require a consideration of past, present and future trends (Mello 2014:595). The third step involves collecting data to diagnose and adapt a cause-effect relationship in a particular organisation context. The firm should consider that employees who do not quit may also be unsatisfied with their work. Evidence-based retention strategies occur at the intersection of turnover analysis that is interpreted based on the context and turnover diagnosis. Factors that affect retention include company image, leadership, performance recognition and rewards as well as learning opportunities.

In the organisation, evidence-based employee retention strategies can be utilised to deal with the issue of turnover. The strategy takes into account the retention issue that the firm faces. Second, a risk analysis is conducted to identify potential risk areas and employees reasons for leaving. Third, management identifies areas for action such as dealing with inequitable or unfair payment systems (Armstrong 2007:398). The firm can design jobs to maximise skill variety, autonomy and ensure that they are opportunities for learning and growth. Volunteers have the same need as paid staff regarding job descriptions and working hours amongst other factors. Whereas enthusiasm and empathy are what attracts them, establishing social ties that maintain their interest and involvement retain them.

Voluntary Turnover Model (Mello2014: 590)

Voluntary turnover involves employees who leave work at their own discretion. The model above assumes that employees leave Evidence shows that there are various turnover drivers such as individual and organisational factors. Individuals may evaluate their jobs against alternatives and develop intentions to leave their present job. The turnover drivers affect employee’s attitude in the workplace leading to withdrawal. The withdrawal process entails thoughts of quitting, job search and evaluation of alternatives (Mello 2014:590). Employees look for alternative opportunities in the market. Job embeddedness involves forces that influence employee retention. It entails forces such as ‘fit’ which refers to employee’s perceived compatibility or comfort level. Ideally, when the individuals perceive that they do not fit into the organisation, turnover is likely to occur. Lastly, shocks/scripts involve a particular jarring event that initiates the psychological analysis involved in quitting.

Implementing the HR Policies

The contingency theory argues that policies, strategy and analyses of the HR department should be related to the circumstances of the organisation. Therefore, a strategic approach to implementation is detrimental to the success of the policies. The vision, values and objectives of the organisation should drive strategies and policies of the activities. The implementation plan must adhere to the set policy and the plans determine the practices or the strategy of choice selected by an organisation. Implementation issues include the diversity generated by globalisation, culture-specific requirements and employee retention challenges. Implementation involves execution and employee acceptance (Bamberger 2014:38). Executed strategies may fail to be institutionalised if employees are unaware or unwilling to comply with the new initiatives set up in the strategy.

A framework that can be used for implementation is the ‘Three-dimensional people strategy model.’ The model consists of a horizontal and vertical approach, in which the horizontal dimension links the individual HR policy areas to implementation. The vertical dimension of the model links HR strategy to business goals. In the action component of the model, employees experience the HR practice. Also employees experience the behaviour and values of leaders in the organisation, for example, the body language of line managers (Truss et al. 2012:131). A line manager who portrays a negative attitude towards appraising employees will communicate a negative image towards the process. The implementation should be strategy and process driven. This approach ensures that there are strong links between corporate and HR strategies and between HR and policy areas and the strategy to ensure success of the implementation process. The successful implementation of HR strategies in Africa Omnipotence will result in a positive shift in the workforce thereby enabling the firm to succeed in its expansion process.