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Talent Management: A Case-study Investigation in Hospitality Operations

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Talent Management: A Case-study Investigation in Hospitality Operations

Corresponding author:

Dr. Ashraf Tag-Eldeen

Associate Professor
Faculty of Tourism & Hotels
Alexandria University, Egypt.

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 Talent Management: A Case-study Investigation in Hospitality Operations

Abstract

The objective of this research paper is to investigate the potential of talent

management concept that is implemented by some hospitality organizations. It intends
to examine the approach that is practically in place. The research design used a case-
study methodology to investigate the phenomena in one of the pioneers of hospitality
organizations implementing the relevant strategy and develop an empirical framework
for this strategy as such. Both secondary and primary data were used in the research.
Survey questionnaires were used at both the management's and employees' levels to
reflect the authentic practices in place. The findings of the study revealed the
significance of the concept as a tool for human resource development and the
indispensable role in enhancing the quality of employees' performance and loyalty.
Furthermore, the study also validates talent management approach as a sustainable
framework for organizational development and competitiveness.

Key Words: talent management, human resource development, employees'

performance, employees' loyalty, Jumeirah Hotels & Resorts

Focus of Paper: Practical/Industry

Introduction

The study of Human Resource Development (HRD) indicates that views on what
constitutes HRD vary considerably. Traditionally, various terms were used such as
training, development and education. The most contemporary terms are Human
Resource Development (HRD) and Human Capital Development (HCD). According
to Mondy and Martocchio (2015), human resource development is: “planned and
continuous process of helping employees to become better at their tasks, knowledge
and experiences through training, education and development programs".

More specifically, the three fundamental component areas of human resource

development include; individual development (personal), career development
(professional), and organizational development. The importance of each component
will vary from organization to organization according to the complexity of the
operation, the criticality of human resources to organizational efficiency, and the
organization's commitment to improved human resources. While these three elements
are paramount and complementary, they all have one focus - individual performance
improvement. The organizational ability to take this further is distinctive and
definitely will influence both the organizational mission and strategies in many
domains (Berger & Berger, 2010; Stone & Deadrick, 2015; Stone, Stone-Romero &
Lukaszewski, 2007).

Career development programs have evolved during the last two decades due to
changes in the workforce needs and characteristics (work-life balance, diversity, and
focus on equality), advances in management theory (employee motivation), changes
in managerial styles and the increasing complexity of technology. These
contemporary trends have fostered the growth of career development programs
(Patton & McMahon, 2014).

Human resource is a significant element in service-oriented organizations.

Nowadays, hospitality employees are no longer interested in pursuing just the job
path. Their aspirations are extended to have employment opportunity that will create
an extension of interest, personality and life-long work related activities. As
employees realize that they will have opportunities for development and continual
growth, the consequences will be more commitment to their workplace and definitely
outstanding performance (Frank & Taylor, 2004; Wan, 2007).

Moreover, Stroh and Reilly (1997) asserted that where an employer can provide
the worker with ample opportunities for growth and advancement, a proper attitude of
loyalty and satisfaction can be enhanced as well. Effective organizations create
enabling environment for career development through Human Resource Department
that plans several career development programs. Hameed and Waheed (2011) and
Lips-Wiersma and Hall (2007) argue that when organizations contribute towards
employee development activities, employees work harder, utilize their skills and
efforts fully to achieve the overall goal of the organization. Hospitality organizations
are no exception to the rule.

According to Stone and Deadrick (2015), career development is a mutual and

continual effort directed towards assessing workers potentials, identifying likely
career paths for employees, designing and implementing various forms of training and
experience to prepare them for more advanced jobs. Therefore, it is a planned
program designed to match individual and organizational needs. The personal
dimension allows for necessary changes in individuals to acquire skills and advance
progressively throughout the period of their career.

There are several career development methods that can improve employee
performance in an organization (Bruvold & Chay, 2003). Hospitality organizations
have used method such as career counseling, career mentoring, workshops, along with
techniques such as self-assessment testing and job rotations to enhance their
employees‟ opportunity for growth and development. A more recent term that has
become common in human resource setting is talent management. More significantly,
it is also used as an element for assessing organizational development along with
other human resources criteria. However, according to Al Ariss, Cascico and Paauwe
(2014); Collings and Mellahi (2009) and Tansley (2011), the topic of talent
management remains underdeveloped. A key limitation is the fact that talent
management lacks a consistent definition and clear conceptual boundaries.
Literature Review

Patton and Mcllveen (2009) argue that career development is the process by which
individuals collect information about values, interests, and skill strengths and
weaknesses (career exploration), identify a career goal, and engage in career strategies
that increase the probability that career goals will be achieved. The career
management process according to John (2000), involves career exploration,
development of career goals, and the use of career strategies to achieve career goals.

Career development according to Watson (2008) has increasingly become a vital

guide for skill acquisition, and operational capabilities. Considering the dynamic
nature of hospitality environment that such capacity especially through training has
therefore emerged as a necessary requirement in preparing a long-term strategic plan
of the organization human resources. On the same vein, Berger and Berger (2010);
Heinen and O'Neill (2004) and Scott and Revis (2008) perceived career development
as a sustained strategy for enhancing employee job performance in order to achieve a
competitive advantage in the changing business environment. Thus, organizations
strive to optimize their workforce through comprehensive career development
programs in order to take abreast of its environment. In this respect, hospitality
organizations are increasingly demanding superior skills, increased productivity and
work-related knowledge from their workers.

Authors like Lent (2005) addressed the conceptual issues of career development
program. The components of this approach comprise career counseling, career
mentoring and career assessment. The desired outcome of such a program is to match
the employee needs with those of the organization.

Career Counseling is the first logical step in career development process.

According to John (2000); Nathan and Hill (2006) and Sharf (2014), this step assists
an organization in identifying employees with high performance potential and maps
out realistic career opportunities. This stage evolves self-understanding; broadening
one's horizons, work selection , challenge, satisfaction, and other interpersonal
matters, work site behavior, communication, and other interpersonal phenomena, and
lifestyle issues, such as balancing work and family requirements.
 Kidd (2006) asserted the aim of career counseling to employees as understanding
self, making personal decision, setting achievable goals which enhances growth and
planning in the present to bring about desired future, coping with difficult solutions,
controlling self-defeating emotions, acquiring effective transaction skills and
acquiring positive self-regard and sense of optimism about one‟s own ability to
satisfying one‟s basic needs.

Therefore, the purpose of career counseling is to assist employees in exploiting

their strengths and potential and avoiding mismatches between individual aspirations,
capabilities and organizational opportunities. In a more pragmatic perspective; that is
to reduce the waste of preparing an employee for a position for which they are not
suited, but might otherwise accept, in order to conform to the wishes of the
organization (Armstrong, 2006).

The second stage in career development process is career monitoring. According to

Kong, Cheung and Song (2012); that is a professional relationship in which an
experienced employee (mentor) supports another less experienced (mentee) in
developing specific skills and knowledge that will enhance the less experienced
persons' professional and personal growth. In fact career monitoring is a two-sided
phase, where the organization identifies a mentor and a mentee. The first step is to
define a mentor as a corporate manager who supervises, coaches, and guides selected
lower-level employees by introducing them to the right people and generally being
their organizational sponsor. The second step is to provide guidance and advice which
will help to develop the careers to the people allocated to them to be more efficient in
improving the quality of work.

In fact, networking and having mentors is essential for succession planning

because it builds and develops managers by widening their knowledge and better
understanding of the overall operations and to prepare for task ahead. Mentoring is
used to complement learning on the job which of course is the best way of obtaining
particular knowledge and skills (Ayres, 2006).

The final stage in career development process is skill assessment. This is an

important step to ensure the effectiveness of the overall process. When organization
engages an employee to perform certain job/task to perform adequately well, there is
the need to train the employee to acquire the necessary knowledge, skills and
competencies to be able to perform the job effectively and efficiently. Therefore, skill
assessment is an evaluative and feedback point (Baum, 2006).

As regards the impact of talent management on employees' retention, developing

talents and recruitment, authors like Bethke-Langenegger, Mahler and Staffelbach
(2011); and Oladapo (2014) – based on empirical investigation – and Hughes and Rog
(2008) - in a conceptual paper - confirmed that business organizations while
struggling to find talented employees have recognized the strategic value of an
effective talent management program affecting retention rate. Further investigations
by Bethke-Langenegger et al. (2011) and Tarique and Schuler (2010) extended to
include the impact on organizational performance. The results established a
significant positive impact on human resource outcomes such as job satisfaction,
motivation and commitment. Moreover, talent management practices had a significant
impact on organizational outcomes such as company attractiveness, the achievement
of business goals, customer satisfaction and, above all, corporate profit and sustaining
a competitive advantage.

Problem Statement

Most hospitality organizations are struggling with employees‟ performance, attitudes

towards work, which may be attributed to the management inability to design an
institutional framework that would allow for career development programs necessary
for continuous skill acquisition. Career development programs are of paramount
importance to improve operational capabilities and organizational performance.

Employees normally lack proper guidance for achieving career goals and
understand the organization's expectations which will enable them to perform their
work effectively (John, 2000). To overcome this problem, hospitality organizations
have considered innovative career development plans, namely talent management
program.

The research question for this research suggests how the implementation of talent
management programs impact on employees' performance, employees' loyalty,
retention and the competitiveness status of the hospitality organization.
H1 - There is a positive relationship between pursuing talent management program
and the quality of employees' performance.

H2 - There is a positive relationship between pursuing talent management program

and employees' loyalty.

H3 - There is a positive relationship between pursuing talent management program

and enhancing the competitiveness status of the hospitality organization.

Methodology

Within the hospitality industry context, Chacko and Nebel (1990) advocate that
qualitative research is a more appropriate methodology for hospitality researchers to
use, particularly when the subject of the study is concerned with leadership,
managerial and behavioural issues and processes. The nature of the investigation plays
a major role in deciding the methodology type (Creswell, 1994; and Silverman, 2000).
Within the framework of this research, the aims and objectives are related to
approaches and processes in implementing talent management programmes in a hotel
company. It is about investigating and exploring the tools and operational procedure
currently in use by the participating case-study. Consequently, the features of this
research correspond with the doctrine of qualitative methods and the inductive
approach. Additionally, the research focuses on the context that may have an effect on
the understanding of the phenomenon being studied.

Van Maanen and Kolb (1985) and Yin (2003) advocated that the specific cases to
be studied may be selected by several different rationales, one of which is the general
relevance to the research area in which the researcher is interested. Another is to
select exemplary cases. The use of this latter rationale means that all of the cases will
reflect strong, positive examples of the phenomenon of interest. Yin (2003) further
claimed that, methodologically, the case can be deliberately designed to present
answers to a series of questions precisely because this particular organisation has
historical significance/experience or showing a high level of concern as a leading
organisation.
 The selection of the case-study aimed to reflect the understanding, approaches and
pattern(s) of implementing talent management programmes. The rationale for this
strategy was the researcher‟s aspiration to investigate thoroughly their systems and
processes in order to learn from their experiences and to draw upon their success.

In fact, both the case study approach and the purposive sampling approach are
similar in their methodological rationale. For instance, the case study approach
illustrates the selection of particular case(s) based on specific criteria mainly related to
the research question (s) and the availability of information. It is also underpinned by
some „real life‟ issues, e.g. securing access and availability of subjects involved
(Robson, 1993).

Similarly, the purposive sampling approach has the same methodological rationale
by selecting particular elements of the population while looking at the wider context
where the phenomenon being investigated is apparent. It also provides alternative
access options if selected element(s) deny access.

The research design adopted for this research is a case-study approach. The
objective is investigate thoroughly and in depth one of the pioneers in the area of
talent management. The hotel company has considered the concept as one of its
strategic objectives in line with its organizational development. The primary data was
gathered from both management and employees. Two structured questionnaires were
administered; a management questionnaire and a staff questionnaire. The management
survey was addressed to the Vice President of the chain for talent management and
leadership development and two middle managers. The staff questionnaire was
communicated to five staff participants undergoing the talent management program.
The secondary data was gathered from sources including various published sources.
These published sources are academic books, journals and the organization training
and development policy documents were also reviewed. This case-study investigation
took place during January 2018 at Jumeirah Hotels & Resorts Chain. The company
approved acknowledging the identity of the company for publication.

The list of questions of the survey was developed by the researcher based on the
review of related literature. Additionally, the questions were also piloted by two
human resource managers to ensure clarity and consistency and provide suggestions
to improve wording, sequence and structure of the questions and organization of the
survey. The feedback was considered and the survey was adjusted accordingly.

The management questionnaire addressed issues like the process of implementing

talent management program, how the program is integrated and its impact on the
organization. Additionally, other aspects were raised like assessment and
measurement, cost-benefit relationship and challenges encountering the
implementation of talent management program.

The staff questionnaire dealt with staff perspective as regards the implementation
of talent management program. It included collecting demographic data, the
introduction and advantages of the program. Moreover, other questions addressed the
challenges/problems and assessment tools of implementation.

Analysis and Results

Diesing (1971) and Strauss and Corbin (1990) discuss the essence of qualitative data
analysis, emphasising the fact that qualitative data analysis is about interpretations,
flexible procedures, creativity and generation of themes.

The researcher used the qualitative content analysis technique, themes and
categories emerged from the data, then emphasizing the significance of understanding
the meaning of the context (Bryman, 2015).

Data for this study were presented and analyzed with respect to previously outlined
objectives. The three abovementioned hypothesis were addressed by the survey
questions and further examined and assessed.

At the outset, it should be acknowledged that due to the small number of staff
participants (junior management level), the demographic data is not indicative or
revealing. However, the sample included males and females, various age ranges,
diverse educational levels and even different length of number of working years with
current chain/operation.

The results confirmed that the hotel chain introduced the talent management
program since two years and half. The management participants have confirmed that
the company has a systematic process for introducing the talent management program
to the employees. This approach is well-established within the company's culture by
using technological medium via the Intranet (Talent Management Platform). Both
management and staff replies were consistent.

"Our talent management program is introduced during the 'Welcome Program'

for our new staff, via emails, notice boards and banners, etc."

Director of Human Resources

"Upon joining the company, I was made aware of our talent management
system through training; this covered the overall process, system training and
assessment competency."

Staff Member (4)

"We have an online talent management system that supports the performance-
driven culture, which is part of our strategic objectives."

Vice President of Talent Management

The program of talent management evaluates itself systematically. It starts with

setting the Individual Learning Plan by establishing the objectives, rating and
reviewing of performance and evaluating the potential of the individual. Further,
actions are taken to retain high-performance individuals. This evaluation system is
scheduled by calendar month time plan.

As for the key stages that are practically considered for implementing talent
management program, the management participants identified four steps for such a
purpose. It starts with setting objectives to improve the organization capabilities, then
raising the awareness of the required behavior, ensuring fair and objective rating
which relates to both the individual and the company. Then the selection process takes
place; setting personalized programs and identifying learning and development
opportunities and finally feedback management. Measurement of outcome is
essential. Some of the tools in use are guest loyalty scores, employees' engagement
scores and assessing build-versus-buy if recruitment takes place. Figure 1 summarizes
the key stages of talent management that is currently taking place at Jumeirah Hotels
and Resorts chain as perceived and interpreted by the researcher.
 Figure (1) Key Stages of Talent Management Program

Creating Awareness Selection Process Feedback Management

Introduction
(Orientation Program)

- Intranet
- Notice Boards
- Banners
Competencies Performance Feedback &
Behavioral Measurement
- Managerial Descriptors
- Staff - Employees' Engagement
Identifying Objectives
- Guest Loyalty Scores
Personalized Program
- Build-versus-Buy
Recruitment

Professional / Organizational/ Talent Builders Learning & Development

Individual Management Training Program Opportunities
 "Our first step is to identify end-in-mind objectives and to build a performance-
driven culture and retain and improve the organization capabilities."

Vice President of Talent Management

"The focus should also be on the individual development plan to ensure that
each colleague works on his/her personal improvement using the
'Learning & Development' opportunities that the company offers."

Vice President of Talent Management

The result also implied by both management and staff that talent management
program is clearly embodied in the organization's vision and fully committed to the
welfare and development of its staff. The talent management program is offered to all
levels of staff. The hotel company has also developed its measurement system via
developing Learning & Development catalogue that has different sections to each job
level to guide performance. As for program's participants, they emphasized that
individual development plan; bi-annual performance appraisal and guest feedback
survey are all tools in use to assess the program's outcome.

The criterion for selecting the target/potential participants depends on the rating of
both performance and potential and the mobility of the colleagues to move within the
business units. On one hand, the company also emphasized the transparency in
selecting target participants and further motivates non-participants for better
performance. On the other hand, the company offers alternatives for personal growth
for non-participants. Figure 2 reflects the standard steps for managing talent
management program within the company as perceived by the researcher.

"Business needs and workforce planning dictate the required number of

people to be trained."

Vice President of Talent Management

 Figure (2) Standard Steps for Managing Talent Management Program

Setting the Individual

Learning Plan and Objectives

Actual Performance

Rate the Potential

Potential Alternatives

Actions to Retain High-performance

Colleagues

The impact of introducing talent management program on the organization

outcome included a list of positive results. The schedule includes more loyalty, higher
motivation and engagement of staff and better retention rate of qualified staff. As the
impact extends to employees' performance, it will also affect guest loyalty positively,
stronger brand image and culture as well as improved organization capabilities.

"Our tools for assessing our talent management program include; the
number of transfer and promotion year by year, engagement score related
to how performance affects quality of work and fair career opportunities
score. Finally, retention of high performers and overall rating of
performance year by year are also considered."

Vice President of Talent Management

As from the program's participants perspective, it was stated that pursing the talent
management program was advantageous and really helpful in setting targets and
goals, monitoring and keep track of individuals' performance in addition to getting to
know the team better. The bi-annual appraisal system, keeping track of previous
years' achievements and facilitating contact are key tools in this respect. They all
confirmed that talent management program enhances their career path.
 "Talent management is a system to review own performance and set goals for
professional development. The talent management system platform gives
opportunity to employees to conduct their self-assessment and receive valued
feedback for future growth."

Staff Member (3)

The cost-benefit relationship also adds to the benefits of implementing talent

management program. In this respect, the company was proactive to prove this
association with a solid figure to justify its commitment and expenses as a profit-
oriented company. The fact is reflected by the words of the company's vice president
for talent management stated below.

"We have made a research which proves that buying talent cost 30-35% more
than investing in internal talent. Each % point increase in internal transfer or
promotion save cost to the company."

Vice President of Talent Management

As for the challenges/problems facing the introduction of talent management

program, some issues were raised; inter alia, vague strategic direction, lack of
coherence between the strategic directions and staff personal objectives, unclear
competency model and finally the insufficient communication of the program's
impact.

Discussion and Conclusion

Based on the findings, the study concludes that hospitality organizations can
increasingly improve the quality of employees' job performance if considerable
attention is given to career development practices in their organizations, namely talent
management. As hospitality organizations operate in a dynamic and complex
environment, therefore, the ability of organizations to strategize today and enhance
their most prominent capability and differentiation edge will definitely enhance the
level of employee operational capability, skills, and working competence (Wright,
McMahan & McWilliams, 1994).

Participants' replies have confirmed that there is a significant positive relationship

between the adoption of talent management program and employees' performance,
loyalty and retention rate and the quality of service as well (Hughes & Rog, 2008;
Kehinde, 2012; Oladapo, 2014). The quality of employees' performance can be
sustained through career mentoring especially when this process provides guidance,
advice and continuous skills assessment in order to complement learning on the job.

This positive relationship is reflected by and confirmed by several media for

instance, by the attention being given to individual members of staff, the style of
dialogue and communication in place between the management and the staff. Further,
the system in place for assessing the program used a variety of tools, inter alia,
training sessions, appraisal system and follow-up. Moreover, the use of e-learning
proved to be effective, efficient and supportive (Frank & Taylor, 2004). Those results
are consistent with the hypotheses H1 and H2 of the research and subsequently
proved their validity.

The results also show that employees' efficiency significantly improved as a result
of implementing such a program by sponsoring high-potential and talented members
of staff. Additionally, the approach of building-versus-buying with reference to
recruiting from within impacts positively on operational efficiency as reflected by the
management research in this respect and confirmed by relevant literature (Barron,
2008; John, 2000). Therefore, hospitality organizations are encouraged to provide an
institutional framework that can allow its employees to acquire practical skill, and
learning experience through career counseling and provide various career
development paths. This result is consistent with the third hypotheses (H3) and
therefore proves its validity.

As it was admitted by both the management and the program's participants that
pursuing Talent Management program affects positively guest feedback and loyalty
(Stroh & Reilly, 1997), this implies that adopting talent management program has a
significant effect on the competitive edge of the company over its competition
(Ashton & Morton, 2005) and suggests a positive relationship for pursuing this
approach. Therefore, this result is accepted and consistent with the third hypotheses
(H3) and hence proves its validity.

From the aforementioned, the study recommends that organizations should

encourage and entrench career counseling activities as a head way of providing a
sustainable framework upon which employees acquire the needed operational skills
that will enhance their job performance in a typical organization. Also, a considerable
attention must be directed towards instituting career mentoring programs that have the
capacity of educating the employees on the job for improved job performance in the
organization. Finally, Management should initiate a periodic skill assessment training
program for its employees. In doing this, the employees stand the chance of acquiring
additional skill that would make them proactive in their operations, and in meeting the
demands of the environment.

Emphasis on talent management results in several positive individual and

organizational outcomes such as higher performance, high quality individual and
organization problem solving, enhancing career plans and employability, sustainable
competitive advantage, higher organizational commitment and enhancing
organizational retention (Edgar & Geare, 2005; Lips-Wiersma & Hall, 2007; Oladapo,
2014; Stroh & Reilly, 1997; Wright et al., 1994).

Moreover, building a culture of lifetime learning promotes a motivated workforce

(Collings & Mellahi, 2009; Stone et al., 2007). So, the best way to keep people going
on that path is via the identification of the talents of the organization's workforce and
developing their promising skills and qualities.

The outcome of the research has also revealed that talent management has a strong
relationship and integration with other conceptual approaches of organizational
development (Thorpe & Gold, 2010). More specifically it has a positive impact on
individual and organizational outcomes. The survival of any organization in a
competitive society depends on its ability to train its human resource to be innovative,
creative and inventive that will invariably enhance performance and increase
organization‟s competitive advantage.

Limitations and Further Research

A major limitation of this research topic is associated with the methodology of

research in use as a case-study research and further a single-case investigation.
However, the scarcity of the cases adopting talent management programs along with
access issues dictated this particular method. While this limitation may influence the
generalizability of the research outcome, the uniqueness of the information and the
in-depth investigation may balance and overcome this deficiency.

Another limitation was also relevant to the number of participants which was
limited. However, the researcher tried to have different views and perspectives at
three different levels; senior management represented by the vice president for talent
management, head departments and employees. This approach enabled the researcher
to scrutinize and complement the various issues of the case, investigate the reliability
of the practices and ensure the credibility of the spoken data.

As for further research, the researcher would suggest to expand the sample/cases
under investigation to include more hotel companies. Another point would be
probably using semi-structured interviews rather than a structured questionnaire to
enable the researcher to probe in depth unanticipated issues along with the
interviewees as they arise. Another proposition would consider investigating the
career path of the program participants after a longer time span to find out the
outcome of the program and its impact on the individuals' level.
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